WEBVTT Kind: captions Language: en there's quite a few things you need to there's quite a few things you need to there's quite a few things you need to know before beginning your journey down know before beginning your journey down know before beginning your journey down the financial independence retire early the financial independence retire early the financial independence retire early path don't get discouraged though path don't get discouraged though path don't get discouraged though because the more you learn about the because the more you learn about the because the more you learn about the different components to the fire different components to the fire different components to the fire movement the more you'll realize that movement the more you'll realize that movement the more you'll realize that these are all things you should know these are all things you should know these are all things you should know whether you want to retire early or whether you want to retire early or whether you want to retire early or retire on time in this video I'm going retire on time in this video I'm going retire on time in this video I'm going to go through a few of the main to go through a few of the main to go through a few of the main components that will determine how components that will determine how components that will determine how quickly you can declare financial quickly you can declare financial quickly you can declare financial independence or early retirement if independence or early retirement if independence or early retirement if you're clueless about what the fire you're clueless about what the fire you're clueless about what the fire movement is all about then I suggest movement is all about then I suggest movement is all about then I suggest watching a video I made that will break watching a video I made that will break watching a video I made that will break it all down for you link is in the it all down for you link is in the it all down for you link is in the description or somewhere around my head description or somewhere around my head description or somewhere around my head as I mentioned in that video most people as I mentioned in that video most people as I mentioned in that video most people will naturally gravitate towards will naturally gravitate towards will naturally gravitate towards financial independence since it doesn't financial independence since it doesn't financial independence since it doesn't appeal to most to just retire early and appeal to most to just retire early and appeal to most to just retire early and not do anything with the rest of their not do anything with the rest of their not do anything with the rest of their lives hey I'm Jared from debt-free lives hey I'm Jared from debt-free lives hey I'm Jared from debt-free blueprint where I show intelligent blueprint where I show intelligent blueprint where I show intelligent people like you how to get out of debt people like you how to get out of debt people like you how to get out of debt and create freedom through your finances and create freedom through your finances and create freedom through your finances using the debt free blueprint smash that using the debt free blueprint smash that using the debt free blueprint smash that thumbs up button leave a comment down thumbs up button leave a comment down thumbs up button leave a comment down below asking me any additional questions below asking me any additional questions below asking me any additional questions you have surrounding this topic and I'll you have surrounding this topic and I'll you have surrounding this topic and I'll get them answered for you if you want get them answered for you if you want get them answered for you if you want more personal finance videos just like more personal finance videos just like more personal finance videos just like this one then hit that subscribe button this one then hit that subscribe button this one then hit that subscribe button and a notification bell so you too and a notification bell so you too and a notification bell so you too YouTube YouTube knows to deliver them to YouTube YouTube knows to deliver them to YouTube YouTube knows to deliver them to you let's get into it right yeah you let's get into it right yeah you let's get into it right yeah first up is your age just like anything first up is your age just like anything first up is your age just like anything the earlier you get started the better the earlier you get started the better the earlier you get started the better unfortunately for most of us we weren't unfortunately for most of us we weren't unfortunately for most of us we weren't made aware of this movement until a time made aware of this movement until a time made aware of this movement until a time when it would seem like it was way too when it would seem like it was way too when it would seem like it was way too late now this isn't to say that someone late now this isn't to say that someone late now this isn't to say that someone who's in their late s or s can't who's in their late s or s can't who's in their late s or s can't pursue fire you definitely can pursue fire you definitely can pursue fire you definitely can but the advantage younger people have is but the advantage younger people have is but the advantage younger people have is time more time to actually focus on time more time to actually focus on time more time to actually focus on pursuing financial independence and more pursuing financial independence and more pursuing financial independence and more time invested in the markets one time invested in the markets one time invested in the markets one advantage people in their s and s advantage people in their s and s advantage people in their s and s could have is that they've already been could have is that they've already been could have is that they've already been investing up until this point if that's investing up until this point if that's investing up until this point if that's the case then changing your current path the case then changing your current path the case then changing your current path to a more financial independence retire to a more financial independence retire to a more financial independence retire early path is going to be a lot smoother early path is going to be a lot smoother early path is going to be a lot smoother on the other hand if you are in your s on the other hand if you are in your s on the other hand if you are in your s and s with next to nothing invested and s with next to nothing invested and s with next to nothing invested then you still have time but you are then you still have time but you are then you still have time but you are essentially going to need a bigger essentially going to need a bigger essentially going to need a bigger shovel you're going to have to really shovel you're going to have to really shovel you're going to have to really maximize some of the other areas we're maximize some of the other areas we're maximize some of the other areas we're going to talk about later in this video going to talk about later in this video going to talk about later in this video keep in mind that financial independence keep in mind that financial independence keep in mind that financial independence is basically having enough in is basically having enough in is basically having enough in investments that are generating you investments that are generating you investments that are generating you money to pay for your expenses money to pay for your expenses money to pay for your expenses forever most people who are considered forever most people who are considered forever most people who are considered financially independent financially independent financially independent are still doing some sort of work for are still doing some sort of work for are still doing some sort of work for money but they don't rely on that money money but they don't rely on that money money but they don't rely on that money to cover their normal expenses to cover their normal expenses to cover their normal expenses technically this means that someone technically this means that someone technically this means that someone starting this process a little later can starting this process a little later can starting this process a little later can save up enough to withdraw thirty save up enough to withdraw thirty save up enough to withdraw thirty thousand dollars per year to cover their thousand dollars per year to cover their thousand dollars per year to cover their basic needs and work a job that they basic needs and work a job that they basic needs and work a job that they really enjoy that only pays twenty really enjoy that only pays twenty really enjoy that only pays twenty thousand dollars per year because it thousand dollars per year because it thousand dollars per year because it hits them right in the fields and if I hits them right in the fields and if I hits them right in the fields and if I know you you love those fields and I know you you love those fields and I know you you love those fields and I think we all like to get hit in the think we all like to get hit in the think we all like to get hit in the fields sometimes next up is your income fields sometimes next up is your income fields sometimes next up is your income the more you make the easier it will be the more you make the easier it will be the more you make the easier it will be for you to max out all of your for you to max out all of your for you to max out all of your retirement accounts and invest in other retirement accounts and invest in other retirement accounts and invest in other areas to hit your fire numbers sooner areas to hit your fire numbers sooner areas to hit your fire numbers sooner now just because you make $, per now just because you make $, per now just because you make $, per year doesn't mean you can automatically year doesn't mean you can automatically year doesn't mean you can automatically save and invest more than a person save and invest more than a person save and invest more than a person making half that we'll talk about that making half that we'll talk about that making half that we'll talk about that later in the video if you want to retire later in the video if you want to retire later in the video if you want to retire in years in years in years then you need to focus on squeezing then you need to focus on squeezing then you need to focus on squeezing everything out of your earning potential everything out of your earning potential everything out of your earning potential for those years think of those for those years think of those for those years think of those years as life or death and take years as life or death and take years as life or death and take advantage of all of them go really advantage of all of them go really advantage of all of them go really really hard that way you can feel really hard that way you can feel really hard that way you can feel comfortable letting up on the gas when comfortable letting up on the gas when comfortable letting up on the gas when you do finally decide to retire or you do finally decide to retire or you do finally decide to retire or declare financial independence you're declare financial independence you're declare financial independence you're sacrificing today so that you can live a sacrificing today so that you can live a sacrificing today so that you can live a more enjoyable life tomorrow delayed more enjoyable life tomorrow delayed more enjoyable life tomorrow delayed pleasure is the key I made a video about pleasure is the key I made a video about pleasure is the key I made a video about increasing our income and making money increasing our income and making money increasing our income and making money online to help you out with this I'll online to help you out with this I'll online to help you out with this I'll throw links in the description for you throw links in the description for you throw links in the description for you to check out after this video there's a to check out after this video there's a to check out after this video there's a lot of debate surrounding the income lot of debate surrounding the income lot of debate surrounding the income topic when it comes to financial topic when it comes to financial topic when it comes to financial independence retire early independence retire early independence retire early some people will trash on the higher some people will trash on the higher some people will trash on the higher earners like individuals in the IT earners like individuals in the IT earners like individuals in the IT industry or engineers because on average industry or engineers because on average industry or engineers because on average they have higher incomes and naysayers they have higher incomes and naysayers they have higher incomes and naysayers might say something like of course they might say something like of course they might say something like of course they can do it it's so much easier for them can do it it's so much easier for them can do it it's so much easier for them because they make more money okay and because they make more money okay and because they make more money okay and those individuals are making sacrifices those individuals are making sacrifices those individuals are making sacrifices to achieve fire just like everyone else to achieve fire just like everyone else to achieve fire just like everyone else I honestly think that having that view I honestly think that having that view I honestly think that having that view is extremely closed-minded of course it is extremely closed-minded of course it is extremely closed-minded of course it helps they make more money but what does helps they make more money but what does helps they make more money but what does that have to do with you and your that have to do with you and your that have to do with you and your situation if you don't make as much situation if you don't make as much situation if you don't make as much money as them and you want to be able to money as them and you want to be able to money as them and you want to be able to so that you can start investing more so that you can start investing more so that you can start investing more then what is stopping you from doing then what is stopping you from doing then what is stopping you from doing that the sky is the limit when it comes that the sky is the limit when it comes that the sky is the limit when it comes to how much each of us can earn we need to how much each of us can earn we need to how much each of us can earn we need to remove those limiting beliefs we have to remove those limiting beliefs we have to remove those limiting beliefs we have about why we can't do this why we can't about why we can't do this why we can't about why we can't do this why we can't do that and why they have it so much do that and why they have it so much do that and why they have it so much easier than the rest of us sure they easier than the rest of us sure they easier than the rest of us sure they might be able to declare financial wind might be able to declare financial wind might be able to declare financial wind penance or early retirement sooner than penance or early retirement sooner than penance or early retirement sooner than you but who cares this buyer journey is you but who cares this buyer journey is you but who cares this buyer journey is about you how you're going to do it and about you how you're going to do it and about you how you're going to do it and most importantly why you're trying to most importantly why you're trying to most importantly why you're trying to achieve this it's not about them another achieve this it's not about them another achieve this it's not about them another extremely important factor when it comes extremely important factor when it comes extremely important factor when it comes to financial independence and early to financial independence and early to financial independence and early retirement is your savings rate you retirement is your savings rate you retirement is your savings rate you could be years old making a hundred could be years old making a hundred could be years old making a hundred and fifty thousand dollars per year but and fifty thousand dollars per year but and fifty thousand dollars per year but if your savings rate is trash then this if your savings rate is trash then this if your savings rate is trash then this whole thing will never work your savings whole thing will never work your savings whole thing will never work your savings rate is how much you're saving in rate is how much you're saving in rate is how much you're saving in regards to how much you were earning if regards to how much you were earning if regards to how much you were earning if your take-home pay is a hundred thousand your take-home pay is a hundred thousand your take-home pay is a hundred thousand dollars per year but your expenses total dollars per year but your expenses total dollars per year but your expenses total thousand dollars per year and you're thousand dollars per year and you're thousand dollars per year and you're actually saving and investing the actually saving and investing the actually saving and investing the difference then your savings rate is difference then your savings rate is difference then your savings rate is seven thousand dollars or seven percent seven thousand dollars or seven percent seven thousand dollars or seven percent if you are working towards financial if you are working towards financial if you are working towards financial independence and only saving seven independence and only saving seven independence and only saving seven percent then you need to get that number percent then you need to get that number percent then you need to get that number up it's just not going to be enough up it's just not going to be enough up it's just not going to be enough let's look at three scenarios and break let's look at three scenarios and break let's look at three scenarios and break down the math if you wanted to leave down the math if you wanted to leave down the math if you wanted to leave your job and live off of your your job and live off of your your job and live off of your investments in years in scenario if investments in years in scenario if investments in years in scenario if you invest dollars per month or you invest dollars per month or you invest dollars per month or dollars per year we'll just assume a dollars per year we'll just assume a dollars per year we'll just assume a percent return on your money then your percent return on your money then your percent return on your money then your investments have the potential to be investments have the potential to be investments have the potential to be worth $, yes that sounds like a worth $, yes that sounds like a worth $, yes that sounds like a lot of money because it is but it's not lot of money because it is but it's not lot of money because it is but it's not enough to declare financial independence enough to declare financial independence enough to declare financial independence in scenario let's assume you decide to in scenario let's assume you decide to in scenario let's assume you decide to make it a point optimize your spending make it a point optimize your spending make it a point optimize your spending and you've got your savings rate up to and you've got your savings rate up to and you've got your savings rate up to percent that would mean you would be percent that would mean you would be percent that would mean you would be investing twenty-one thousand dollars investing twenty-one thousand dollars investing twenty-one thousand dollars per year for years or per month per year for years or per month per year for years or per month your investments could potentially be your investments could potentially be your investments could potentially be worth over five hundred and twenty seven worth over five hundred and twenty seven worth over five hundred and twenty seven thousand dollars in fifteen years once thousand dollars in fifteen years once thousand dollars in fifteen years once again yes that is a lot of money and again yes that is a lot of money and again yes that is a lot of money and some people may be able to survive some people may be able to survive some people may be able to survive living off that amount but I would living off that amount but I would living off that amount but I would personally want more than that if I was personally want more than that if I was personally want more than that if I was declaring financial independence today declaring financial independence today declaring financial independence today in scenario if you decided that in scenario if you decided that in scenario if you decided that declaring financial independence or declaring financial independence or declaring financial independence or early retirement was extremely important early retirement was extremely important early retirement was extremely important to you and you nearly double that to you and you nearly double that to you and you nearly double that percent savings rate to a percent percent savings rate to a percent percent savings rate to a percent savings rate then your money has the savings rate then your money has the savings rate then your money has the potential to be worth over $,, I potential to be worth over $,, I potential to be worth over $,, I can't stress enough how powerful your can't stress enough how powerful your can't stress enough how powerful your savings rate can be if you make it a savings rate can be if you make it a savings rate can be if you make it a point to focus on that in your life you point to focus on that in your life you point to focus on that in your life you decided that you wanted to add another decided that you wanted to add another decided that you wanted to add another five years to that so that you would five years to that so that you would five years to that so that you would retire in years and you invested at retire in years and you invested at retire in years and you invested at the same rate of per month then the same rate of per month then the same rate of per month then your investments have the potential to your investments have the potential to your investments have the potential to be worth over eight hundred and sixty be worth over eight hundred and sixty be worth over eight hundred and sixty thousand dollars just by adding an thousand dollars just by adding an thousand dollars just by adding an additional five years to that timeline additional five years to that timeline additional five years to that timeline optimizing your spending in the biggest optimizing your spending in the biggest optimizing your spending in the biggest areas of your life will help you achieve areas of your life will help you achieve areas of your life will help you achieve a higher savings rate the three biggest a higher savings rate the three biggest a higher savings rate the three biggest expense areas for most people are expense areas for most people are expense areas for most people are housing transportation and food those housing transportation and food those housing transportation and food those are the main three that you should focus are the main three that you should focus are the main three that you should focus on reducing to find some extra money to on reducing to find some extra money to on reducing to find some extra money to put towards your retirement if you truly put towards your retirement if you truly put towards your retirement if you truly want to be working towards fire if you want to be working towards fire if you want to be working towards fire if you do want to eventually reach financial do want to eventually reach financial do want to eventually reach financial independence retire early then I would independence retire early then I would independence retire early then I would go as far as saying that it is a go as far as saying that it is a go as far as saying that it is a requirement to reduce your spending in requirement to reduce your spending in requirement to reduce your spending in all three of those areas the thought of all three of those areas the thought of all three of those areas the thought of actually making this happen might sound actually making this happen might sound actually making this happen might sound outrageous to you and I get it but outrageous to you and I get it but outrageous to you and I get it but pursuing fire is not something that is pursuing fire is not something that is pursuing fire is not something that is only for the privileged it's for the only for the privileged it's for the only for the privileged it's for the average person like you and me being average person like you and me being average person like you and me being able to pursue financial independence able to pursue financial independence able to pursue financial independence retire early is sort of a luxury but retire early is sort of a luxury but retire early is sort of a luxury but it's only luxury because if you are it's only luxury because if you are it's only luxury because if you are focused on pursuing Phi then you've focused on pursuing Phi then you've focused on pursuing Phi then you've already made smart money decisions already made smart money decisions already made smart money decisions leading up to this point or you chose to leading up to this point or you chose to leading up to this point or you chose to correct your past money mistakes to get correct your past money mistakes to get correct your past money mistakes to get on the right track with your money on the right track with your money on the right track with your money kind of like my past huge mistake of kind of like my past huge mistake of kind of like my past huge mistake of racking up eighty-two thousand dollars racking up eighty-two thousand dollars racking up eighty-two thousand dollars in debt and eventually getting it all in debt and eventually getting it all in debt and eventually getting it all paid off your financial independence paid off your financial independence paid off your financial independence early retirement journey is waiting for early retirement journey is waiting for early retirement journey is waiting for you but the first step is to focus on you but the first step is to focus on you but the first step is to focus on getting rid of your bad debt as soon as getting rid of your bad debt as soon as getting rid of your bad debt as soon as possible leave a comment down below possible leave a comment down below possible leave a comment down below asking me any additional questions that asking me any additional questions that asking me any additional questions that you have about the fire movement and you have about the fire movement and you have about the fire movement and I'll make sure to get them answered for I'll make sure to get them answered for I'll make sure to get them answered for you as I make more videos on this topic you as I make more videos on this topic you as I make more videos on this topic I'll create a playlist and put the link I'll create a playlist and put the link I'll create a playlist and put the link in the description of this video so you in the description of this video so you in the description of this video so you can find them a whole heck of a lot can find them a whole heck of a lot can find them a whole heck of a lot easier sign up to get on the money easier sign up to get on the money easier sign up to get on the money management course waiting list the link management course waiting list the link management course waiting list the link is in the description make sure to smash is in the description make sure to smash is in the description make sure to smash that thumbs up button and pick up your that thumbs up button and pick up your that thumbs up button and pick up your free copy of the debt free prep workbook free copy of the debt free prep workbook free copy of the debt free prep workbook hit that subscribe button and the hit that subscribe button and the hit that subscribe button and the notification bell to get more personal notification bell to get more personal notification bell to get more personal finance videos just like this so we can finance videos just like this so we can finance videos just like this so we can start getting you to a point where you start getting you to a point where you start getting you to a point where you are financially free I'll see you in the are financially free I'll see you in the are financially free I'll see you in the next one friends adios WEBVTT Kind: captions Language: en let's talk about misconceptions as it let's talk about misconceptions as it let's talk about misconceptions as it pertains to the fire movement pertains to the fire movement pertains to the fire movement fire standing for financial independence fire standing for financial independence fire standing for financial independence retire early retire early retire early in fact in this video i'm going to cover in fact in this video i'm going to cover in fact in this video i'm going to cover the five most common myths the five most common myths the five most common myths or misconceptions and no my goal with or misconceptions and no my goal with or misconceptions and no my goal with this video is not to recruit you to my this video is not to recruit you to my this video is not to recruit you to my fire cult fire cult fire cult i promise and actually we could call i promise and actually we could call i promise and actually we could call that a bonus that a bonus that a bonus misconception this is not a cult in fact misconception this is not a cult in fact misconception this is not a cult in fact there is no official membership there is no official membership there is no official membership no single website where you apply no no single website where you apply no no single website where you apply no formal leader formal leader formal leader yes there are a ton of facebook groups yes there are a ton of facebook groups yes there are a ton of facebook groups just like there are for just like there are for just like there are for all interests there's a ton of blogs all interests there's a ton of blogs all interests there's a ton of blogs just like there are for sports teams just like there are for sports teams just like there are for sports teams that i follow that i follow that i follow there are tons of celebrities just like there are tons of celebrities just like there are tons of celebrities just like there are in music or in the movie there are in music or in the movie there are in music or in the movie industry that people love and industry that people love and industry that people love and admire and yes there are tons of fire admire and yes there are tons of fire admire and yes there are tons of fire youtubers youtubers youtubers and as of a few months ago i consider and as of a few months ago i consider and as of a few months ago i consider myself one of them myself one of them myself one of them p.s i haven't told anyone or asked for p.s i haven't told anyone or asked for p.s i haven't told anyone or asked for permission to join the movement permission to join the movement permission to join the movement and i haven't had to it's a phenomenal and i haven't had to it's a phenomenal and i haven't had to it's a phenomenal group of people a phenomenal community i group of people a phenomenal community i group of people a phenomenal community i found in a fantastic community found in a fantastic community found in a fantastic community i'm hoping to build here just little me i'm hoping to build here just little me i'm hoping to build here just little me and this and this and this little old channel the money resolution little old channel the money resolution little old channel the money resolution so subscribe if resolving to get good so subscribe if resolving to get good so subscribe if resolving to get good with money with money with money sounds of interest to you or retiring sounds of interest to you or retiring sounds of interest to you or retiring early early early of course and the truth is i've actually of course and the truth is i've actually of course and the truth is i've actually been meeting with people who found and been meeting with people who found and been meeting with people who found and watch my channel watch my channel watch my channel because seven or eight videos ago at the because seven or eight videos ago at the because seven or eight videos ago at the end i announced i wanted to meet with end i announced i wanted to meet with end i announced i wanted to meet with viewers and chat about their life viewers and chat about their life viewers and chat about their life and their financial situation i wanted and their financial situation i wanted and their financial situation i wanted to see if i can help as sort of a coach to see if i can help as sort of a coach to see if i can help as sort of a coach or support person or support person or support person i wanted to be a thought partner and i wanted to be a thought partner and i wanted to be a thought partner and people to my surprise people to my surprise people to my surprise took me up on it people were everywhere took me up on it people were everywhere took me up on it people were everywhere on their journey some were full on their journey some were full on their journey some were full fire on the path to retired fire on the path to retired fire on the path to retired years or more years or more years or more sooner than the average person some were sooner than the average person some were sooner than the average person some were just getting started just getting started just getting started even in their s because no it's never even in their s because no it's never even in their s because no it's never too late to apply the principles too late to apply the principles too late to apply the principles to at least retire on time some were to at least retire on time some were to at least retire on time some were high income earners some were low-income high income earners some were low-income high income earners some were low-income earners earners earners some were married with kids some were some were married with kids some were some were married with kids some were totally on their own and single totally on their own and single totally on their own and single because no not everyone that's fire because no not everyone that's fire because no not everyone that's fire starts super young or makes a lot of starts super young or makes a lot of starts super young or makes a lot of money money money trust me the who of fire is all over the trust me the who of fire is all over the trust me the who of fire is all over the place place place needless to say i'm no longer taking needless to say i'm no longer taking needless to say i'm no longer taking these meetings at least not these meetings at least not these meetings at least not until and that's because i'm super until and that's because i'm super until and that's because i'm super hard at work blogging creating youtube hard at work blogging creating youtube hard at work blogging creating youtube videos relaunching my website and first videos relaunching my website and first videos relaunching my website and first book the money resolution book the money resolution book the money resolution and creating the save money resolution and creating the save money resolution and creating the save money resolution course my first ever course my first ever course my first ever online course by the way learn more online course by the way learn more online course by the way learn more about that at themoneyresolution.com about that at themoneyresolution.com about that at themoneyresolution.com for years i denied being fire even with for years i denied being fire even with for years i denied being fire even with some of my money nerd friends some of my money nerd friends some of my money nerd friends okay like two we joked about how extreme okay like two we joked about how extreme okay like two we joked about how extreme the fire movement is the fire movement is the fire movement is and how we're not sure how we feel about and how we're not sure how we feel about and how we're not sure how we feel about it and personally the reason i refused it and personally the reason i refused it and personally the reason i refused to join to join to join was because of the stigma of fire which was because of the stigma of fire which was because of the stigma of fire which is crazy that i let that get to me is crazy that i let that get to me is crazy that i let that get to me because i'm on a mission to help remove because i'm on a mission to help remove because i'm on a mission to help remove the stigma the stigma the stigma of talking about money openly in the of talking about money openly in the of talking about money openly in the first place so what was the stigma first place so what was the stigma first place so what was the stigma well i'm actually gonna cover five in well i'm actually gonna cover five in well i'm actually gonna cover five in this video this video this video and hopefully disprove them because i and hopefully disprove them because i and hopefully disprove them because i was wrong was wrong was wrong and pundits of the community are wrong and pundits of the community are wrong and pundits of the community are wrong as well as well as well but first when did i finally embrace the but first when did i finally embrace the but first when did i finally embrace the fire principles and join the movement fire principles and join the movement fire principles and join the movement well it's when i realized everything i well it's when i realized everything i well it's when i realized everything i was already doing are the same things was already doing are the same things was already doing are the same things that fire people are doing that fire people are doing that fire people are doing i aim to save half my income i max out i aim to save half my income i max out i aim to save half my income i max out all my available tax advantage all my available tax advantage all my available tax advantage retirement accounts retirement accounts retirement accounts i invest in low cost index funds and i invest in low cost index funds and i invest in low cost index funds and track either the entire stock market or track either the entire stock market or track either the entire stock market or s p with those s p with those s p with those i love learning about money and keeping i love learning about money and keeping i love learning about money and keeping up with financial news financial up with financial news financial up with financial news financial technology technology technology and finance youtubers i love sharing and finance youtubers i love sharing and finance youtubers i love sharing what i learn what i learn what i learn with others okay back to the with others okay back to the with others okay back to the misconceptions what most people think misconceptions what most people think misconceptions what most people think about fire people that i found to be about fire people that i found to be about fire people that i found to be untrue here are the five they're all untrue here are the five they're all untrue here are the five they're all minimalists that own minimalists that own minimalists that own nothing fire people are numbers nerds nothing fire people are numbers nerds nothing fire people are numbers nerds who obsess over budgets who obsess over budgets who obsess over budgets they're cheap af they don't live in the they're cheap af they don't live in the they're cheap af they don't live in the now or enjoy life now or enjoy life now or enjoy life as much as they should in the present as much as they should in the present as much as they should in the present there's one clear path the fire there's one clear path the fire there's one clear path the fire community believes in community believes in community believes in and follows it probably starts with and follows it probably starts with and follows it probably starts with saving or even saving or even saving or even plus of their income or it doesn't plus of their income or it doesn't plus of their income or it doesn't work work work i'll extrapolate on that one a bit i'll extrapolate on that one a bit i'll extrapolate on that one a bit obviously when i get there obviously when i get there obviously when i get there and of course if you know me i probably and of course if you know me i probably and of course if you know me i probably provide a bonus at the end provide a bonus at the end provide a bonus at the end so stick around all right myth number so stick around all right myth number so stick around all right myth number one they're all minimalists that one they're all minimalists that one they're all minimalists that live in extreme frugality the lifestyle live in extreme frugality the lifestyle live in extreme frugality the lifestyle does seem extreme for many i'll admit does seem extreme for many i'll admit does seem extreme for many i'll admit yes many in the fire community do save i yes many in the fire community do save i yes many in the fire community do save i don't know to percent of their don't know to percent of their don't know to percent of their income income income but they don't all identify as but they don't all identify as but they don't all identify as minimalist and or minimalist and or minimalist and or of a savings rate is not extreme for of a savings rate is not extreme for of a savings rate is not extreme for most people i aim to save half and i own most people i aim to save half and i own most people i aim to save half and i own plenty of plenty of plenty of clothes shoes board games tech video clothes shoes board games tech video clothes shoes board games tech video games and games and games and a few really nice household items that a few really nice household items that a few really nice household items that we've invested in we've invested in we've invested in the idea though is that fire seekers aim the idea though is that fire seekers aim the idea though is that fire seekers aim to live on less than the average to live on less than the average to live on less than the average american so that you don't american so that you don't american so that you don't have to work forever or work yourself to have to work forever or work yourself to have to work forever or work yourself to death you don't have to trade your time death you don't have to trade your time death you don't have to trade your time for money for money for money living with less is part of it but not living with less is part of it but not living with less is part of it but not near what you think for many in the fire near what you think for many in the fire near what you think for many in the fire community community community according to a td ameritrade in harris according to a td ameritrade in harris according to a td ameritrade in harris poll survey the majority of financially poll survey the majority of financially poll survey the majority of financially independent survey respondents independent survey respondents independent survey respondents percent said fire isn't worth it if percent said fire isn't worth it if percent said fire isn't worth it if they have to live as though they're they have to live as though they're they have to live as though they're broke broke broke forty percent said that they would limit forty percent said that they would limit forty percent said that they would limit travel or going on vacations in regards travel or going on vacations in regards travel or going on vacations in regards to what they would give up to what they would give up to what they would give up similar to what people who hadn't similar to what people who hadn't similar to what people who hadn't achieved financial independence said achieved financial independence said achieved financial independence said they didn't say things like stuff or they didn't say things like stuff or they didn't say things like stuff or clothes or gadgets yes principles of clothes or gadgets yes principles of clothes or gadgets yes principles of minimalism do parallel minimalism do parallel minimalism do parallel or even overlap a bit with the fire or even overlap a bit with the fire or even overlap a bit with the fire movement principles but it is certainly movement principles but it is certainly movement principles but it is certainly not a requirement not a requirement not a requirement in fact a recent phrase starting to in fact a recent phrase starting to in fact a recent phrase starting to catch popularity is financial catch popularity is financial catch popularity is financial minimalism and i'm not sure how we minimalism and i'm not sure how we minimalism and i'm not sure how we define it yet but for me that means define it yet but for me that means define it yet but for me that means applying the principles of minimalism to applying the principles of minimalism to applying the principles of minimalism to your finances your finances your finances it's keeping things simple in terms of it's keeping things simple in terms of it's keeping things simple in terms of how many credit cards i have how many how many credit cards i have how many how many credit cards i have how many investment accounts i have investment accounts i have investment accounts i have what i invest in which by the way i have what i invest in which by the way i have what i invest in which by the way i have a video on that topic on the channel a video on that topic on the channel a video on that topic on the channel and how i save which is via automation and how i save which is via automation and how i save which is via automation so money never hits my personal account so money never hits my personal account so money never hits my personal account where i might be tempted to spend it where i might be tempted to spend it where i might be tempted to spend it when you keep things simple you keep when you keep things simple you keep when you keep things simple you keep things organized things organized things organized and i find that to be the reason i don't and i find that to be the reason i don't and i find that to be the reason i don't have to keep a budget have to keep a budget have to keep a budget speaking of that's a good transition to speaking of that's a good transition to speaking of that's a good transition to myth number two myth number two myth number two myth number two they're all budgeters myth number two they're all budgeters myth number two they're all budgeters and numbers nerds and numbers nerds and numbers nerds the truth is most americans most people the truth is most americans most people the truth is most americans most people aren't doing nearly enough to save aren't doing nearly enough to save aren't doing nearly enough to save towards retirement they're not on track towards retirement they're not on track towards retirement they're not on track and actually most are far from being on and actually most are far from being on and actually most are far from being on track track track so budgeting is certainly a great place so budgeting is certainly a great place so budgeting is certainly a great place to start if nothing else tracking your to start if nothing else tracking your to start if nothing else tracking your spending and setting up a budget for spending and setting up a budget for spending and setting up a budget for even just a few months can be an even just a few months can be an even just a few months can be an eye-opening experience but i don't do it eye-opening experience but i don't do it eye-opening experience but i don't do it i did it once or twice but it wasn't for i did it once or twice but it wasn't for i did it once or twice but it wasn't for me it felt a bit like me it felt a bit like me it felt a bit like a diet or like rules and it never left a diet or like rules and it never left a diet or like rules and it never left my psyche when i was out and about or my psyche when i was out and about or my psyche when i was out and about or attempted to spend money attempted to spend money attempted to spend money it felt like i'd get yelled at by my it felt like i'd get yelled at by my it felt like i'd get yelled at by my spreadsheet and apparently my spreadsheet and apparently my spreadsheet and apparently my spreadsheets know how to yell spreadsheets know how to yell spreadsheets know how to yell most people quit diets and a lot of most people quit diets and a lot of most people quit diets and a lot of people quit budgets people quit budgets people quit budgets again it wasn't for me many in the fire again it wasn't for me many in the fire again it wasn't for me many in the fire community do community do community do budget some intensely but not all of budget some intensely but not all of budget some intensely but not all of them that is for sure them that is for sure them that is for sure and i'm an example instead i plan at the and i'm an example instead i plan at the and i'm an example instead i plan at the beginning of the year beginning of the year beginning of the year and i automate my way to my goals with and i automate my way to my goals with and i automate my way to my goals with systems goals systems goals systems goals and systems set it and forget it and systems set it and forget it and systems set it and forget it honestly i don't have time to analyze honestly i don't have time to analyze honestly i don't have time to analyze every number every number every number nor do i want to or how every decision nor do i want to or how every decision nor do i want to or how every decision spending or spending or spending or investing is going to impact my target investing is going to impact my target investing is going to impact my target retirement date retirement date retirement date i think i might have an obsessive i think i might have an obsessive i think i might have an obsessive personality but i never personality but i never personality but i never obsess over my numbers and even for obsess over my numbers and even for obsess over my numbers and even for those that do live by their spreadsheets those that do live by their spreadsheets those that do live by their spreadsheets and to be fair there are quite a few and to be fair there are quite a few and to be fair there are quite a few they should be applauded they should be they should be applauded they should be they should be applauded they should be admired because the truth is the average admired because the truth is the average admired because the truth is the average american has american has american has zero budget and this is a big reason why zero budget and this is a big reason why zero budget and this is a big reason why they're falling behind they're falling behind they're falling behind they don't know what they don't know they don't know what they don't know they don't know what they don't know because they don't track then at the end because they don't track then at the end because they don't track then at the end of each month they wonder where of each month they wonder where of each month they wonder where their money went and they wonder why their money went and they wonder why their money went and they wonder why they have nothing to show for their hard they have nothing to show for their hard they have nothing to show for their hard work work work they might have negative money so they might have negative money so they might have negative money so budgets can be good budgets can be good budgets can be good some fire people budget maybe you should some fire people budget maybe you should some fire people budget maybe you should give it a try as well give it a try as well give it a try as well but there are other ways to save and cut but there are other ways to save and cut but there are other ways to save and cut expenses now budgeters in the fire expenses now budgeters in the fire expenses now budgeters in the fire movement or not movement or not movement or not i personally applaud you for those of i personally applaud you for those of i personally applaud you for those of you doing what i do you doing what i do you doing what i do instead which is set up a plan at the instead which is set up a plan at the instead which is set up a plan at the beginning of the year and automate your beginning of the year and automate your beginning of the year and automate your way to your goals way to your goals way to your goals nicely done for you as well for those of nicely done for you as well for those of nicely done for you as well for those of you that don't have a plan you that don't have a plan you that don't have a plan don't have a budget and don't know why don't have a budget and don't know why don't have a budget and don't know why you're broke well you're broke well you're broke well maybe now you know maybe it's time you maybe now you know maybe it's time you maybe now you know maybe it's time you start at least tracking by start at least tracking by start at least tracking by spending category for example myth spending category for example myth spending category for example myth number three they're cheap af number three they're cheap af number three they're cheap af fire people only stream tv by using fire people only stream tv by using fire people only stream tv by using friends logins friends logins friends logins they never pick up the tab or tip above they never pick up the tab or tip above they never pick up the tab or tip above they definitely don't donate to charity they definitely don't donate to charity they definitely don't donate to charity because they hoard all of their money because they hoard all of their money because they hoard all of their money oh and they never buy coffee okay i oh and they never buy coffee okay i oh and they never buy coffee okay i don't buy coffee don't buy coffee don't buy coffee either but that's not all of them i either but that's not all of them i either but that's not all of them i assure you assure you assure you and it's not that they or maybe i should and it's not that they or maybe i should and it's not that they or maybe i should say we at this point are cheap say we at this point are cheap say we at this point are cheap it's that we appreciate delayed it's that we appreciate delayed it's that we appreciate delayed gratification rather than needing to do gratification rather than needing to do gratification rather than needing to do everything now everything now everything now buy everything now spend all your money buy everything now spend all your money buy everything now spend all your money as soon as you get it as soon as you get it as soon as you get it we don't move from one shiny thing to we don't move from one shiny thing to we don't move from one shiny thing to the next like most of society the next like most of society the next like most of society instead what's at the forefront of our instead what's at the forefront of our instead what's at the forefront of our thinking is that we're looking forward thinking is that we're looking forward thinking is that we're looking forward to spending several decades doing what to spending several decades doing what to spending several decades doing what we want we want we want when we want most people in the fire when we want most people in the fire when we want most people in the fire movement give movement give movement give more than others they give automatically more than others they give automatically more than others they give automatically as well as well as well some plan to give of all income some plan to give of all income some plan to give of all income because they know that if you don't give because they know that if you don't give because they know that if you don't give when you have a little when you have a little when you have a little you're not likely to give or give back you're not likely to give or give back you're not likely to give or give back when you have more or in retirement when you have more or in retirement when you have more or in retirement i am not at giving myself but i am i am not at giving myself but i am i am not at giving myself but i am going to prioritize giving in going to prioritize giving in going to prioritize giving in as a commitment to myself let me know if as a commitment to myself let me know if as a commitment to myself let me know if you have by the way a great system for you have by the way a great system for you have by the way a great system for how i can automate how i can automate how i can automate my giving in the comments below i'm not my giving in the comments below i'm not my giving in the comments below i'm not cheap but i do pride myself on not cheap but i do pride myself on not cheap but i do pride myself on not paying full price for paying full price for paying full price for almost anything lots of non-fire people almost anything lots of non-fire people almost anything lots of non-fire people by the way do the same thing by the way do the same thing by the way do the same thing think crazy couponers maybe they're not think crazy couponers maybe they're not think crazy couponers maybe they're not crazy crazy crazy now i do use credit card points where i now i do use credit card points where i now i do use credit card points where i can i look for the best deal by can i look for the best deal by can i look for the best deal by comparison shopping i take advantage of comparison shopping i take advantage of comparison shopping i take advantage of discounts on sales but only when discounts on sales but only when discounts on sales but only when this was a thing that i've been wanting this was a thing that i've been wanting this was a thing that i've been wanting not an impulse buy i find enjoyment and not an impulse buy i find enjoyment and not an impulse buy i find enjoyment and getting a good deal getting a good deal getting a good deal plain and simple but i also find plain and simple but i also find plain and simple but i also find enjoyment in tipping well enjoyment in tipping well enjoyment in tipping well buying quality items at full price that buying quality items at full price that buying quality items at full price that are going to last a long time are going to last a long time are going to last a long time and it makes me happy to buy a friend to and it makes me happy to buy a friend to and it makes me happy to buy a friend to drink without the expectation they're drink without the expectation they're drink without the expectation they're going to do the same thing for me going to do the same thing for me going to do the same thing for me and i find happiness in donating to my and i find happiness in donating to my and i find happiness in donating to my nieces and nephews hobbies like nieces and nephews hobbies like nieces and nephews hobbies like dance and basketball or donating in dance and basketball or donating in dance and basketball or donating in times of crisis times of crisis times of crisis by now i'm sure most of my friends know by now i'm sure most of my friends know by now i'm sure most of my friends know i'm conscious of spending money i'm conscious of spending money i'm conscious of spending money but i've never felt like they think i'm but i've never felt like they think i'm but i've never felt like they think i'm cheap in fact nowadays i actually get a cheap in fact nowadays i actually get a cheap in fact nowadays i actually get a lot of text messages from friends lot of text messages from friends lot of text messages from friends asking where they can score the best asking where they can score the best asking where they can score the best deal on x y or z because they too deal on x y or z because they too deal on x y or z because they too realize not paying full price realize not paying full price realize not paying full price feels really good because a penny saved feels really good because a penny saved feels really good because a penny saved is a penny earned is a penny earned is a penny earned by the way a penny saved and invested by the way a penny saved and invested by the way a penny saved and invested could be a lot of pennies earned could be a lot of pennies earned could be a lot of pennies earned just had to say that myth number four just had to say that myth number four just had to say that myth number four there's one path to fire there's one path to fire there's one path to fire most people think to be considered fire most people think to be considered fire most people think to be considered fire you must save at least percent of you must save at least percent of you must save at least percent of your income your income your income now if that's actually the case i'm not now if that's actually the case i'm not now if that's actually the case i'm not in the club though i'm knocking on the in the club though i'm knocking on the in the club though i'm knocking on the door door door i aim to save half of my pre-tax income i aim to save half of my pre-tax income i aim to save half of my pre-tax income but the reality is but the reality is but the reality is i've actually never accomplished this in i've actually never accomplished this in i've actually never accomplished this in a complete year last year i saved half a complete year last year i saved half a complete year last year i saved half of my post-tax of my post-tax of my post-tax income which is still a proud income which is still a proud income which is still a proud accomplishment and i think i might get accomplishment and i think i might get accomplishment and i think i might get there for the first time in but the there for the first time in but the there for the first time in but the verdict is out because verdict is out because verdict is out because it's going to be close and they just it's going to be close and they just it's going to be close and they just release new game consoles and macbooks release new game consoles and macbooks release new game consoles and macbooks and then there's holidays in the unknown and then there's holidays in the unknown and then there's holidays in the unknown guys i'm human too guys i'm human too guys i'm human too another myth busted fire people aren't another myth busted fire people aren't another myth busted fire people aren't perfect with money perfect with money perfect with money nobody is yeah you're gonna get there nobody is yeah you're gonna get there nobody is yeah you're gonna get there sooner if you save half or more of your sooner if you save half or more of your sooner if you save half or more of your income no doubt but it's not totally income no doubt but it's not totally income no doubt but it's not totally necessary necessary necessary and in fact there are several types of and in fact there are several types of and in fact there are several types of five for different people their five for different people their five for different people their lifestyle lifestyle lifestyle and their goals i actually plan to do a and their goals i actually plan to do a and their goals i actually plan to do a video about the different types in the video about the different types in the video about the different types in the future future future and i actually wrote about the different and i actually wrote about the different and i actually wrote about the different types in my latest book types in my latest book types in my latest book money you can hack it specifically i money you can hack it specifically i money you can hack it specifically i wrote about lean fi wrote about lean fi wrote about lean fi fat fi slow fi and coastfi fat fi slow fi and coastfi fat fi slow fi and coastfi plus there's also barista phi and fi plus there's also barista phi and fi plus there's also barista phi and fi fi okay i made that last one up but fi okay i made that last one up but fi okay i made that last one up but there are consistently new paths there are consistently new paths there are consistently new paths forged as people share their stories and forged as people share their stories and forged as people share their stories and find new strategies find new strategies find new strategies now fat fire means having a lot to spend now fat fire means having a lot to spend now fat fire means having a lot to spend in retirement perhaps in retirement perhaps in retirement perhaps million million or more lean fire as million million or more lean fire as million million or more lean fire as you might guess is you might guess is you might guess is the opposite of that it might be living the opposite of that it might be living the opposite of that it might be living off off off or just a year in retirement or just a year in retirement or just a year in retirement so you may only need or so you may only need or so you may only need or saved and invested to reach saved and invested to reach saved and invested to reach financial independence financial independence financial independence there's definitely no one-size-fits-all there's definitely no one-size-fits-all there's definitely no one-size-fits-all plan and i even argue there's no plan and i even argue there's no plan and i even argue there's no one-size-fits-most plan one-size-fits-most plan one-size-fits-most plan there are best practices but ultimately there are best practices but ultimately there are best practices but ultimately it's up to you to learn and take what it's up to you to learn and take what it's up to you to learn and take what applies to you and your goals and apply applies to you and your goals and apply applies to you and your goals and apply it to your life it to your life it to your life fire does mean being a lifetime learner fire does mean being a lifetime learner fire does mean being a lifetime learner though that adapts though that adapts though that adapts because those that don't keep up in because those that don't keep up in because those that don't keep up in terms of financial literacy will get terms of financial literacy will get terms of financial literacy will get left behind left behind left behind fire seekers resist impulse purchasers fire seekers resist impulse purchasers fire seekers resist impulse purchasers they aim to live well below their means they aim to live well below their means they aim to live well below their means but but but outside of that the journeys are all outside of that the journeys are all outside of that the journeys are all unique as they should be unique as they should be unique as they should be for example you can try to earn more and for example you can try to earn more and for example you can try to earn more and spend less spend less spend less you can pay off debts and invest you can you can pay off debts and invest you can you can pay off debts and invest you can focus on the big three that's housing focus on the big three that's housing focus on the big three that's housing food and transportation food and transportation food and transportation you can invest in rental properties and you can invest in rental properties and you can invest in rental properties and become a landlord you can obsess over become a landlord you can obsess over become a landlord you can obsess over credit card points some even utilize geo credit card points some even utilize geo credit card points some even utilize geo arbitrage where they keep their big city arbitrage where they keep their big city arbitrage where they keep their big city job but work remotely job but work remotely job but work remotely in a low cost of living area which could in a low cost of living area which could in a low cost of living area which could be abroad be abroad be abroad there's no single path but just like in there's no single path but just like in there's no single path but just like in sports or trying to lose weight or sports or trying to lose weight or sports or trying to lose weight or learning how to cook or training for a learning how to cook or training for a learning how to cook or training for a job there are of course job there are of course job there are of course best practices i feel like i'm yelling best practices i feel like i'm yelling best practices i feel like i'm yelling all fired up all fired up all fired up myth number five fire doesn't work myth number five fire doesn't work myth number five fire doesn't work it's unrealistic it won't work for most it's unrealistic it won't work for most it's unrealistic it won't work for most people there's no point in trying people there's no point in trying people there's no point in trying times your expenses is not enough times your expenses is not enough times your expenses is not enough living off four percent of your living off four percent of your living off four percent of your portfolio portfolio portfolio isn't realistic medical expenses are way isn't realistic medical expenses are way isn't realistic medical expenses are way too high in old age too high in old age too high in old age kids colleges need to be paid for kids colleges need to be paid for kids colleges need to be paid for emergencies happen emergencies happen emergencies happen i was channeling my inner susie orman i was channeling my inner susie orman i was channeling my inner susie orman right now i recently listened to a right now i recently listened to a right now i recently listened to a podcast episode on podcast episode on podcast episode on uh afford anything with paula pant where uh afford anything with paula pant where uh afford anything with paula pant where susie laid into the movement it was susie laid into the movement it was susie laid into the movement it was shocking and honestly a bit upsetting shocking and honestly a bit upsetting shocking and honestly a bit upsetting because i think susie's completely because i think susie's completely because i think susie's completely missing the point and missing the point and missing the point and the good that can be found in the the good that can be found in the the good that can be found in the movement the principles are good movement the principles are good movement the principles are good and do work seeking early retirement and do work seeking early retirement and do work seeking early retirement gives people a goal at the very gives people a goal at the very gives people a goal at the very least it teaches people how to get out least it teaches people how to get out least it teaches people how to get out of debt and increase their savings rate of debt and increase their savings rate of debt and increase their savings rate it makes investing simple so they it makes investing simple so they it makes investing simple so they actually do it it gives people hope actually do it it gives people hope actually do it it gives people hope like real hope not winning the lottery like real hope not winning the lottery like real hope not winning the lottery hope hope hope which by the way millions of people which by the way millions of people which by the way millions of people waste their money on fire people waste their money on fire people waste their money on fire people pay less taxes legally by taking pay less taxes legally by taking pay less taxes legally by taking advantage of advantage of advantage of tax advantage retirement accounts to the tax advantage retirement accounts to the tax advantage retirement accounts to the maximum maximum maximum that makes sense they make themselves that makes sense they make themselves that makes sense they make themselves recession proof by building up a strong recession proof by building up a strong recession proof by building up a strong emergency fund emergency fund emergency fund and again it's giving it's paying it and again it's giving it's paying it and again it's giving it's paying it forward it's building community forward it's building community forward it's building community and support fire shows that anyone can and support fire shows that anyone can and support fire shows that anyone can reject the status quo and seek more out reject the status quo and seek more out reject the status quo and seek more out of their life no of their life no of their life no matter who they are it shows we don't matter who they are it shows we don't matter who they are it shows we don't need millions of things to be happy need millions of things to be happy need millions of things to be happy people seeking fire value experiences people seeking fire value experiences people seeking fire value experiences spending time with loved ones spending time with loved ones spending time with loved ones reading and learning traveling living a reading and learning traveling living a reading and learning traveling living a healthy lifestyle where they make their healthy lifestyle where they make their healthy lifestyle where they make their own food own food own food instead of eating fast food and take out instead of eating fast food and take out instead of eating fast food and take out all the time and thousands upon all the time and thousands upon all the time and thousands upon thousands of people have retired early thousands of people have retired early thousands of people have retired early there's proof in this countless of there's proof in this countless of there's proof in this countless of examples of proof actually examples of proof actually examples of proof actually many have retired in their s some in many have retired in their s some in many have retired in their s some in their s and that is still early their s and that is still early their s and that is still early and gives you extra years of your and gives you extra years of your and gives you extra years of your life back a freedom to spend with kids life back a freedom to spend with kids life back a freedom to spend with kids and grandkids for example and grandkids for example and grandkids for example i myself am aiming for to retire i myself am aiming for to retire i myself am aiming for to retire which is roughly years from now i which is roughly years from now i which is roughly years from now i assure you though assure you though assure you though it is not a pipe dream for example i it is not a pipe dream for example i it is not a pipe dream for example i live in seattle a big live in seattle a big live in seattle a big expensive city and actually made a video expensive city and actually made a video expensive city and actually made a video about pursuing fire in a big city like about pursuing fire in a big city like about pursuing fire in a big city like mine because it's totally doable mine because it's totally doable mine because it's totally doable and actually soon i plan to make a video and actually soon i plan to make a video and actually soon i plan to make a video about reaching financial independence about reaching financial independence about reaching financial independence for those of you on a low income for those of you on a low income for those of you on a low income it certainly can be done because it's it certainly can be done because it's it certainly can be done because it's not how much money you make not how much money you make not how much money you make it's how much you save your savings rate it's how much you save your savings rate it's how much you save your savings rate that matters that matters that matters most and here's a quick bonus because i most and here's a quick bonus because i most and here's a quick bonus because i tend to do this in my videos tend to do this in my videos tend to do this in my videos they retire and do nothing of they retire and do nothing of they retire and do nothing of financially independent respondents from financially independent respondents from financially independent respondents from that td ameritrade study i mentioned that td ameritrade study i mentioned that td ameritrade study i mentioned said financial security is more said financial security is more said financial security is more important than retiring early important than retiring early important than retiring early only said that they were motivated by only said that they were motivated by only said that they were motivated by the prospect of leaving a -hour week the prospect of leaving a -hour week the prospect of leaving a -hour week job job job people overwhelmingly said that they people overwhelmingly said that they people overwhelmingly said that they were simply looking for work-life were simply looking for work-life were simply looking for work-life balance balance balance those who have retired early that i know those who have retired early that i know those who have retired early that i know anyway have found work that they love anyway have found work that they love anyway have found work that they love it may not be full-time work but it's it may not be full-time work but it's it may not be full-time work but it's still work and in many cases they go on still work and in many cases they go on still work and in many cases they go on to start their own company to start their own company to start their own company they earn some sort of income that takes they earn some sort of income that takes they earn some sort of income that takes the pressure off reliance solely on the pressure off reliance solely on the pressure off reliance solely on their freedom fund their freedom fund their freedom fund many go on to build passive income many go on to build passive income many go on to build passive income streams so that they can live off that streams so that they can live off that streams so that they can live off that until they can tap into retirement until they can tap into retirement until they can tap into retirement accounts without penalty that's sort of accounts without penalty that's sort of accounts without penalty that's sort of my plan now i imagine i'm going to my plan now i imagine i'm going to my plan now i imagine i'm going to continue to put in countless hours continue to put in countless hours continue to put in countless hours making youtube videos for the channel making youtube videos for the channel making youtube videos for the channel here in retirement here in retirement here in retirement because i love it and that's the point because i love it and that's the point because i love it and that's the point freedom to pursue freedom to pursue freedom to pursue a passion one that still very likely a passion one that still very likely a passion one that still very likely contributes to society contributes to society contributes to society now the truth is it's the re the retire now the truth is it's the re the retire now the truth is it's the re the retire early part of fire early part of fire early part of fire that i think irks a lot of people and that i think irks a lot of people and that i think irks a lot of people and causes the controversy and the myths causes the controversy and the myths causes the controversy and the myths it's a clever acronym but i wish the re it's a clever acronym but i wish the re it's a clever acronym but i wish the re was actually left off because people in was actually left off because people in was actually left off because people in the fire movement are seeking financial the fire movement are seeking financial the fire movement are seeking financial independence independence independence when they no longer have to exchange when they no longer have to exchange when they no longer have to exchange their time for money their time for money their time for money in fact i wish they would have called it in fact i wish they would have called it in fact i wish they would have called it fiore financial independence fiore financial independence fiore financial independence optional retirement or just choose phi optional retirement or just choose phi optional retirement or just choose phi which is the name of a popular podcast i which is the name of a popular podcast i which is the name of a popular podcast i love love love they also have a great book choose five they also have a great book choose five they also have a great book choose five shout out guys shout out guys shout out guys okay final thoughts here i'm just gonna okay final thoughts here i'm just gonna okay final thoughts here i'm just gonna say this the finance media certainly say this the finance media certainly say this the finance media certainly loves to talk about the fire movement loves to talk about the fire movement loves to talk about the fire movement both positively and negatively both positively and negatively both positively and negatively because people in the fire community all because people in the fire community all because people in the fire community all have extremely interesting have extremely interesting have extremely interesting compelling stories the kind of stories compelling stories the kind of stories compelling stories the kind of stories that make you think that make you think that make you think how the heck did they do that or why the how the heck did they do that or why the how the heck did they do that or why the heck are they doing that heck are they doing that heck are they doing that it's clickbait headlines that naturally it's clickbait headlines that naturally it's clickbait headlines that naturally pique our interests unfortunately pique our interests unfortunately pique our interests unfortunately i noticed that they tend to skew more i noticed that they tend to skew more i noticed that they tend to skew more negative than positive negative than positive negative than positive so thus the myths and like i said at the so thus the myths and like i said at the so thus the myths and like i said at the top top top people are all at different stages in people are all at different stages in people are all at different stages in their journey and it looks different for their journey and it looks different for their journey and it looks different for everyone and that's certainly something everyone and that's certainly something everyone and that's certainly something i learned with meeting with people who i learned with meeting with people who i learned with meeting with people who found my channel over zoom for the last found my channel over zoom for the last found my channel over zoom for the last i guess several weeks by the way for the i guess several weeks by the way for the i guess several weeks by the way for the of you that i met with of you that i met with of you that i met with say hello in the comments down below say hello in the comments down below say hello in the comments down below help the old algorithm help the old algorithm help the old algorithm and that's my favorite part of the and that's my favorite part of the and that's my favorite part of the community the community community the community community the community the support it's people that all want the support it's people that all want the support it's people that all want the same thing the same thing the same thing freedom it's people who think different freedom it's people who think different freedom it's people who think different people that deny the status quo people that deny the status quo people that deny the status quo they don't accept that they have to work they don't accept that they have to work they don't accept that they have to work for years punching in nine to five for years punching in nine to five for years punching in nine to five monday through friday at a job they may monday through friday at a job they may monday through friday at a job they may or may not have a passion for or may not have a passion for or may not have a passion for they don't accept hoping to build up they don't accept hoping to build up they don't accept hoping to build up enough vacation hours or sick days so enough vacation hours or sick days so enough vacation hours or sick days so that they can actually take a vacation that they can actually take a vacation that they can actually take a vacation or hoping for a raise or promotion or hoping for a raise or promotion or hoping for a raise or promotion hoping for a bonus hoping for a bonus hoping for a bonus or hoping for a positive performance or hoping for a positive performance or hoping for a positive performance review for your people review for your people review for your people don't get distracted by the joneses or don't get distracted by the joneses or don't get distracted by the joneses or spending impulsively just because spending impulsively just because spending impulsively just because everybody else is doing it they reject everybody else is doing it they reject everybody else is doing it they reject money as a taboo topic to discuss money as a taboo topic to discuss money as a taboo topic to discuss even if that's how it was in their house even if that's how it was in their house even if that's how it was in their house growing up they encouraged conversation growing up they encouraged conversation growing up they encouraged conversation about consumer debt or about consumer debt or about consumer debt or student loans like i did in my last student loans like i did in my last student loans like i did in my last video they refuse to accept the video they refuse to accept the video they refuse to accept the i'll deal with it later or the kick the i'll deal with it later or the kick the i'll deal with it later or the kick the can down the road can down the road can down the road mentality choose fi means symbolically mentality choose fi means symbolically mentality choose fi means symbolically joining a community of people that want joining a community of people that want joining a community of people that want more out of life more out of life more out of life freedom of choice and almost none of freedom of choice and almost none of freedom of choice and almost none of them retire or stop working i assure you them retire or stop working i assure you them retire or stop working i assure you most of them pay it forward share what most of them pay it forward share what most of them pay it forward share what they learn and offer to help others they learn and offer to help others they learn and offer to help others along their journey and all of them all along their journey and all of them all along their journey and all of them all the ones that i've met with or just the ones that i've met with or just the ones that i've met with or just watch their journeys from afar are watch their journeys from afar are watch their journeys from afar are beautiful smart beautiful smart beautiful smart intelligent people people that i admire intelligent people people that i admire intelligent people people that i admire people that people that people that inspire me i'm grateful that i actually inspire me i'm grateful that i actually inspire me i'm grateful that i actually learned about this movement i'm learned about this movement i'm learned about this movement i'm grateful that i finally did decide to grateful that i finally did decide to grateful that i finally did decide to own the values own the values own the values whether i realize it at first or not all whether i realize it at first or not all whether i realize it at first or not all right guys to wrap up thank you as right guys to wrap up thank you as right guys to wrap up thank you as always for tuning in always for tuning in always for tuning in once again my name is frankie this is once again my name is frankie this is once again my name is frankie this is the money resolution where we resolve to the money resolution where we resolve to the money resolution where we resolve to get good with money get good with money get good with money so we can retire on time or even early so we can retire on time or even early so we can retire on time or even early subscribe if you appreciated this subscribe if you appreciated this subscribe if you appreciated this content and my approach to finance content and my approach to finance content and my approach to finance videos on youtube videos on youtube videos on youtube like this video if you liked this video like this video if you liked this video like this video if you liked this video it really does go a long way in helping it really does go a long way in helping it really does go a long way in helping others discover it others discover it others discover it and let me know what spoke to you in and let me know what spoke to you in and let me know what spoke to you in this video what are you still thinking this video what are you still thinking this video what are you still thinking about about about as we wrap up or just tell me i'm dumb as we wrap up or just tell me i'm dumb as we wrap up or just tell me i'm dumb and fire sucks because and fire sucks because and fire sucks because any comment helps the algorithm i assure any comment helps the algorithm i assure any comment helps the algorithm i assure you it won't offend me and i won't pray you it won't offend me and i won't pray you it won't offend me and i won't pray to the fire gods for you to the fire gods for you to the fire gods for you differences in opinion do cultivate differences in opinion do cultivate differences in opinion do cultivate conversation constructive conversation conversation constructive conversation conversation constructive conversation and especially and especially and especially the listening part is key and that goes the listening part is key and that goes the listening part is key and that goes far beyond personal finance by the way far beyond personal finance by the way far beyond personal finance by the way anyway best of luck to you and yours no anyway best of luck to you and yours no anyway best of luck to you and yours no matter where you're at on your finance matter where you're at on your finance matter where you're at on your finance journey journey journey check out my books on amazon check out check out my books on amazon check out check out my books on amazon check out save money resolution save money resolution save money resolution my new online course coming soon at my new online course coming soon at my new online course coming soon at themoneyresolution.com themoneyresolution.com themoneyresolution.com and i'll see you all next week on the and i'll see you all next week on the and i'll see you all next week on the next one next one next one oh happy almost black friday make good oh happy almost black friday make good oh happy almost black friday make good decisions out there decisions out there decisions out there by the way we should call it black eye by the way we should call it black eye by the way we should call it black eye friday remember how insane it used to be friday remember how insane it used to be friday remember how insane it used to be stay home and stay safe this black stay home and stay safe this black stay home and stay safe this black friday guys friday guys friday guys i'm gonna go shop some deals now all i'm gonna go shop some deals now all i'm gonna go shop some deals now all [Music] [Music] [Music] right WEBVTT Kind: captions Language: en welcome back to road to fire we're a welcome back to road to fire we're a welcome back to road to fire we're a family of three family of three family of three documenting our journey to fire documenting our journey to fire documenting our journey to fire financial independence retire early financial independence retire early financial independence retire early let's talk about the five types of fire let's talk about the five types of fire let's talk about the five types of fire or the five ways you can potentially or the five ways you can potentially or the five ways you can potentially retire early retire early retire early i'll share our high level fire number i'll share our high level fire number i'll share our high level fire number and what type we chose as well as and what type we chose as well as and what type we chose as well as outline other ways of retiring early outline other ways of retiring early outline other ways of retiring early so please hang with me so please hang with me so please hang with me now it took us a while to choose our now it took us a while to choose our now it took us a while to choose our fire number we essentially had to fire number we essentially had to fire number we essentially had to envision or outline what and when we envision or outline what and when we envision or outline what and when we wanted our life to look like once we wanted our life to look like once we wanted our life to look like once we reached financial independence reached financial independence reached financial independence did we want to continue to work did we did we want to continue to work did we did we want to continue to work did we want to live in the u.s did we want to want to live in the u.s did we want to want to live in the u.s did we want to expand our family expand our family expand our family there were so many factors that we there were so many factors that we there were so many factors that we discussed to help us plan for our future discussed to help us plan for our future discussed to help us plan for our future and retire early and retire early and retire early so here's the breakout of our fire so here's the breakout of our fire so here's the breakout of our fire number we opted for fat fire working number we opted for fat fire working number we opted for fat fire working towards . million dollars towards . million dollars towards . million dollars i created a video providing more detail i created a video providing more detail i created a video providing more detail on our numbers and i'll link that here on our numbers and i'll link that here on our numbers and i'll link that here but high level here are the key factors but high level here are the key factors but high level here are the key factors we took into account we took into account we took into account we use the conservative withdrawal rate we use the conservative withdrawal rate we use the conservative withdrawal rate of . of . of . versus the which is traditionally used versus the which is traditionally used versus the which is traditionally used we inflated our expenses immensely to we inflated our expenses immensely to we inflated our expenses immensely to cover for lifestyle changes cover for lifestyle changes cover for lifestyle changes we also incorporate our child's we also incorporate our child's we also incorporate our child's education and plan to live abroad for a education and plan to live abroad for a education and plan to live abroad for a large part of every year large part of every year large part of every year and then we factor in when we wanted to and then we factor in when we wanted to and then we factor in when we wanted to retire again this is our plan retire again this is our plan retire again this is our plan and things are bound to change but right and things are bound to change but right and things are bound to change but right now we're tracking to about . percent now we're tracking to about . percent now we're tracking to about . percent to our overall fire goal but fat fire isn't the only option here but fat fire isn't the only option here but fat fire isn't the only option here are five other ways to retire early are five other ways to retire early are five other ways to retire early first there's a traditional way then first there's a traditional way then first there's a traditional way then there is lean fire which is becoming there is lean fire which is becoming there is lean fire which is becoming more common more common more common there's also coasting fire which i just there's also coasting fire which i just there's also coasting fire which i just recently heard about recently heard about recently heard about there's barista fire and then of course there's barista fire and then of course there's barista fire and then of course fat fire which we opt for fat fire which we opt for fat fire which we opt for although we opted for fat fire we'll be although we opted for fat fire we'll be although we opted for fat fire we'll be doing mini retirement or job changes to doing mini retirement or job changes to doing mini retirement or job changes to align with our future passion projects align with our future passion projects align with our future passion projects so we might be doing a mix of the above so we might be doing a mix of the above so we might be doing a mix of the above again there isn't a right or wrong again there isn't a right or wrong again there isn't a right or wrong answer it's what works for your overall answer it's what works for your overall answer it's what works for your overall plan plan plan now everyone defines retirement now everyone defines retirement now everyone defines retirement differently i'm not talking about what differently i'm not talking about what differently i'm not talking about what retirement will look like what i'm retirement will look like what i'm retirement will look like what i'm focusing on here is how to reach focusing on here is how to reach focusing on here is how to reach financial independence financial independence financial independence so the fi part of fire there is a so the fi part of fire there is a so the fi part of fire there is a misconception that those seeking early misconception that those seeking early misconception that those seeking early retirement either hate their jobs or retirement either hate their jobs or retirement either hate their jobs or don't want to work don't want to work don't want to work for us that is not the case we just want for us that is not the case we just want for us that is not the case we just want options or more freedom options or more freedom options or more freedom but let's get into the five types first but let's get into the five types first but let's get into the five types first so the first type is this traditional so the first type is this traditional so the first type is this traditional path the lifestyle objective is to path the lifestyle objective is to path the lifestyle objective is to accumulate accumulate accumulate income generate assets that reach a income generate assets that reach a income generate assets that reach a level where it pays enough money to level where it pays enough money to level where it pays enough money to cover your current cover your current cover your current living expenses this is the goal to living expenses this is the goal to living expenses this is the goal to simply retire before the expected age of simply retire before the expected age of simply retire before the expected age of i believe it's right now so if you're i believe it's right now so if you're i believe it's right now so if you're and you retire then you hit fire for and you retire then you hit fire for and you retire then you hit fire for this route you'll usually need to cut this route you'll usually need to cut this route you'll usually need to cut down your expenses down your expenses down your expenses increase your savings rate and invest increase your savings rate and invest increase your savings rate and invest aggressively to retire earlier than the aggressively to retire earlier than the aggressively to retire earlier than the masses masses masses but here's an example if your annual but here's an example if your annual but here's an example if your annual expenses a year is about forty thousand expenses a year is about forty thousand expenses a year is about forty thousand dollars and you take the safe dollars and you take the safe dollars and you take the safe four percent withdrawal rate then your four percent withdrawal rate then your four percent withdrawal rate then your fire number will be about one million fire number will be about one million fire number will be about one million dollars dollars dollars this is the number needed to be this is the number needed to be this is the number needed to be financially independent keep in mind financially independent keep in mind financially independent keep in mind this is just an example and your inputs this is just an example and your inputs this is just an example and your inputs or your assumptions will more than or your assumptions will more than or your assumptions will more than likely be different likely be different likely be different but this is known as traditional path to but this is known as traditional path to but this is known as traditional path to early retirement early retirement early retirement but well next you have so next you have but well next you have so next you have but well next you have so next you have lean fire lean fire lean fire which is basically the traditional which is basically the traditional which is basically the traditional format but cutting down your expenses a format but cutting down your expenses a format but cutting down your expenses a bit more bit more bit more hence the word lean think of it as you hence the word lean think of it as you hence the word lean think of it as you working out your budget to get it even working out your budget to get it even working out your budget to get it even more tighter kind of like having a more tighter kind of like having a more tighter kind of like having a trainer in the gym trainer in the gym trainer in the gym for lean fire you would re-evaluate your for lean fire you would re-evaluate your for lean fire you would re-evaluate your expenses expenses expenses look at your bare bone needs and then look at your bare bone needs and then look at your bare bone needs and then calculate your overall fire number calculate your overall fire number calculate your overall fire number look at the example here we will still look at the example here we will still look at the example here we will still have the same safe withdrawal rate as have the same safe withdrawal rate as have the same safe withdrawal rate as before before before but your expenses are a bit lower so but your expenses are a bit lower so but your expenses are a bit lower so maybe you cut down on cleaning supplies maybe you cut down on cleaning supplies maybe you cut down on cleaning supplies or you cut down on grocery or eating out or you cut down on grocery or eating out or you cut down on grocery or eating out or any other expenses you may have or any other expenses you may have or any other expenses you may have and instead of spending forty thousand and instead of spending forty thousand and instead of spending forty thousand dollars a year you can opt for thirty dollars a year you can opt for thirty dollars a year you can opt for thirty five thousand five thousand five thousand a year this will give you a fire number a year this will give you a fire number a year this will give you a fire number of about of about of about versus the million in the previous versus the million in the previous versus the million in the previous example example example i find this path to be more aligned with i find this path to be more aligned with i find this path to be more aligned with a more minimalist approach to life so number three is coast fire and i have so number three is coast fire and i have so number three is coast fire and i have to admit i had not heard of this before to admit i had not heard of this before to admit i had not heard of this before until i started seeing this pop up on my until i started seeing this pop up on my until i started seeing this pop up on my instagram page instagram page instagram page essentially coast fire is about having essentially coast fire is about having essentially coast fire is about having enough money invested at an early age enough money invested at an early age enough money invested at an early age that you no longer need to invest that you no longer need to invest that you no longer need to invest because of the power of compounding will because of the power of compounding will because of the power of compounding will then cover your lifestyle then cover your lifestyle then cover your lifestyle essentially you can ride the way of essentially you can ride the way of essentially you can ride the way of compounding and the market return to compounding and the market return to compounding and the market return to retirement retirement retirement the market will essentially do all the the market will essentially do all the the market will essentially do all the heavy lifting for you heavy lifting for you heavy lifting for you now i find this to be really strange now i find this to be really strange now i find this to be really strange should not continue to invest but i can should not continue to invest but i can should not continue to invest but i can see the perks of this type of fire see the perks of this type of fire see the perks of this type of fire check out this example again you have check out this example again you have check out this example again you have forty thousand dollars in expenses and forty thousand dollars in expenses and forty thousand dollars in expenses and you assume a market return of five you assume a market return of five you assume a market return of five percent which is really conservative and percent which is really conservative and percent which is really conservative and the same safe withdrawal rate of four the same safe withdrawal rate of four the same safe withdrawal rate of four percent percent percent and i pulled my current age of and i and i pulled my current age of and i and i pulled my current age of and i plan to just plan to just plan to just retire say at . if my investments hit retire say at . if my investments hit retire say at . if my investments hit about about about then i would not have to contribute then i would not have to contribute then i would not have to contribute any more dollars into my accounts to hit any more dollars into my accounts to hit any more dollars into my accounts to hit my million dollar fire number my million dollar fire number my million dollar fire number compound interest is just amazing compound interest is just amazing compound interest is just amazing overall personally my husband and i need overall personally my husband and i need overall personally my husband and i need to be about to hit our fire to be about to hit our fire to be about to hit our fire number number number or our coast fire number if we want to or our coast fire number if we want to or our coast fire number if we want to retire in our s retire in our s retire in our s if that was the way we want to go not if that was the way we want to go not if that was the way we want to go not our plan but it's good to know just in our plan but it's good to know just in our plan but it's good to know just in case case case now number so number four is barista now number so number four is barista now number so number four is barista fire essentially you'll have your fire essentially you'll have your fire essentially you'll have your investments cover part of your expenses investments cover part of your expenses investments cover part of your expenses and potentially skip the nine to five and potentially skip the nine to five and potentially skip the nine to five grind grind grind and work a part-time job to cover the and work a part-time job to cover the and work a part-time job to cover the remainder of your expenses remainder of your expenses remainder of your expenses i love the idea of switching to a less i love the idea of switching to a less i love the idea of switching to a less demanding job while having the ability demanding job while having the ability demanding job while having the ability to cover all of your expenses to cover all of your expenses to cover all of your expenses so here's another example say your so here's another example say your so here's another example say your annual expenses are once again forty annual expenses are once again forty annual expenses are once again forty thousand dollars a year thousand dollars a year thousand dollars a year you have the same safe withdrawal rate you have the same safe withdrawal rate you have the same safe withdrawal rate but your fire number is only five but your fire number is only five but your fire number is only five hundred dollars helping you cover hundred dollars helping you cover hundred dollars helping you cover half of your overall expenses you then half of your overall expenses you then half of your overall expenses you then get a part-time gig or a site hustle get a part-time gig or a site hustle get a part-time gig or a site hustle that will cover the remaining twenty that will cover the remaining twenty that will cover the remaining twenty thousand dollars hitting your overall thousand dollars hitting your overall thousand dollars hitting your overall annual expense needs annual expense needs annual expense needs the great thing about this is the the great thing about this is the the great thing about this is the flexibility and not needing a flexibility and not needing a flexibility and not needing a traditional corporate job traditional corporate job traditional corporate job but there is still a sense of dependency but there is still a sense of dependency but there is still a sense of dependency on someone else that i'm not a fan of on someone else that i'm not a fan of on someone else that i'm not a fan of as you'll still need a job or income as you'll still need a job or income as you'll still need a job or income outside of your investments to cover outside of your investments to cover outside of your investments to cover your expenses your expenses your expenses i absolutely love the idea of working i absolutely love the idea of working i absolutely love the idea of working part-time or shifting away from part-time or shifting away from part-time or shifting away from corporate grind corporate grind corporate grind but i still want my expenses to be but i still want my expenses to be but i still want my expenses to be covered by my investments so the last number is number five and so the last number is number five and so the last number is number five and that's fat fire and the best way to that's fat fire and the best way to that's fat fire and the best way to explain fat fire is fire but on steroids explain fat fire is fire but on steroids explain fat fire is fire but on steroids fat fire is for people who want to fat fire is for people who want to fat fire is for people who want to retire early but will have a much retire early but will have a much retire early but will have a much larger yearly budget and higher expenses larger yearly budget and higher expenses larger yearly budget and higher expenses instead of living around forty thousand instead of living around forty thousand instead of living around forty thousand dollars a year you are more than likely dollars a year you are more than likely dollars a year you are more than likely to be living closer to ninety thousand to be living closer to ninety thousand to be living closer to ninety thousand dollars and above annually dollars and above annually dollars and above annually now this is usually attributed to high now this is usually attributed to high now this is usually attributed to high earners but it doesn't have to be earners but it doesn't have to be earners but it doesn't have to be it's basically aligning with the type of it's basically aligning with the type of it's basically aligning with the type of lifestyle you want to have later in your lifestyle you want to have later in your lifestyle you want to have later in your life life life we opted for fat fire because we have a we opted for fat fire because we have a we opted for fat fire because we have a son and we just wanted to be overly son and we just wanted to be overly son and we just wanted to be overly conservative on our future plans conservative on our future plans conservative on our future plans do i consider us high earners no but do i consider us high earners no but do i consider us high earners no but this gives us more flexibility on what this gives us more flexibility on what this gives us more flexibility on what retirement might look retirement might look retirement might look so here's an example instead of having so here's an example instead of having so here's an example instead of having your expenses at about forty thousand your expenses at about forty thousand your expenses at about forty thousand dollars it'll more than likely be closer dollars it'll more than likely be closer dollars it'll more than likely be closer to ninety thousand dollars to ninety thousand dollars to ninety thousand dollars meaning you aren't entirely focused on meaning you aren't entirely focused on meaning you aren't entirely focused on cutting all your expenses down to the cutting all your expenses down to the cutting all your expenses down to the bare bones bare bones bare bones so you'll have a fire number around two so you'll have a fire number around two so you'll have a fire number around two point two five million dollars again point two five million dollars again point two five million dollars again these are just the examples with these are just the examples with these are just the examples with assumptions but you get the point assumptions but you get the point assumptions but you get the point overall overall overall choose choose the path that works best choose choose the path that works best choose choose the path that works best for you and it might not fit perfectly for you and it might not fit perfectly for you and it might not fit perfectly into these five buckets into these five buckets into these five buckets the beauty of life is that you can the beauty of life is that you can the beauty of life is that you can design your own plan this is what fire design your own plan this is what fire design your own plan this is what fire opened up to us opened up to us opened up to us the idea of designing our own future and the idea of designing our own future and the idea of designing our own future and what retirement looks like for us what retirement looks like for us what retirement looks like for us now if you made it this far thank you so now if you made it this far thank you so now if you made it this far thank you so much for watching but don't forget to much for watching but don't forget to much for watching but don't forget to comment and subscribe below comment and subscribe below comment and subscribe below until next time WEBVTT Kind: captions Language: en hello everyone and welcome back to my hello everyone and welcome back to my hello everyone and welcome back to my channel today we are going to be going channel today we are going to be going channel today we are going to be going over the january over the january over the january monthly budget i'm super excited monthly budget i'm super excited monthly budget i'm super excited because i just feel like we have because i just feel like we have because i just feel like we have exciting things in store for us we're exciting things in store for us we're exciting things in store for us we're going to be starting on going to be starting on going to be starting on a different journey in our lives and i'm a different journey in our lives and i'm a different journey in our lives and i'm just super excited about it i will say just super excited about it i will say just super excited about it i will say we don't have we don't have we don't have a whole whole lot going on in the month a whole whole lot going on in the month a whole whole lot going on in the month of january of january of january i was hard-pressed to think of goals and i was hard-pressed to think of goals and i was hard-pressed to think of goals and to do's and things like that but to do's and things like that but to do's and things like that but i mean i don't really think that that's i mean i don't really think that that's i mean i don't really think that that's a bad thing to not have a bunch of you a bad thing to not have a bunch of you a bad thing to not have a bunch of you know financial obligations so know financial obligations so know financial obligations so without further ado if you want to see without further ado if you want to see without further ado if you want to see how we're going to be spending our money how we're going to be spending our money how we're going to be spending our money for the month of january then please for the month of january then please for the month of january then please keep watching so starting out with to keep watching so starting out with to keep watching so starting out with to do's we do have to pay our annual do's we do have to pay our annual do's we do have to pay our annual hoa fees we close on this house last hoa fees we close on this house last hoa fees we close on this house last december december december so um they got us real quick they sent a so um they got us real quick they sent a so um they got us real quick they sent a letter in the mail and we had to pay our letter in the mail and we had to pay our letter in the mail and we had to pay our hoa fees hoa fees hoa fees for that january and so same thing holds for that january and so same thing holds for that january and so same thing holds true for this january shout out to them true for this january shout out to them true for this january shout out to them for sending for sending for sending a letter in the mail otherwise they a letter in the mail otherwise they a letter in the mail otherwise they probably wouldn't have gotten their probably wouldn't have gotten their probably wouldn't have gotten their money although i feel like money although i feel like money although i feel like maybe i set it up on autopay but then maybe i set it up on autopay but then maybe i set it up on autopay but then maybe i didn't either way i'll go in maybe i didn't either way i'll go in maybe i didn't either way i'll go in um january and pay our hoa fees next um january and pay our hoa fees next um january and pay our hoa fees next up i have a up i have a up i have a birthday in the month of january not i birthday in the month of january not i birthday in the month of january not i my friend's birthday one of my best my friend's birthday one of my best my friend's birthday one of my best friend's birthdays friend's birthdays friend's birthdays is in the month of january so i am going is in the month of january so i am going is in the month of january so i am going to be giving her a gift to be giving her a gift to be giving her a gift and then also um skipping right down and then also um skipping right down and then also um skipping right down below to travel home i'm actually going below to travel home i'm actually going below to travel home i'm actually going to be traveling to be traveling to be traveling home to visit her for her birthday as home to visit her for her birthday as home to visit her for her birthday as well moving back up i have get final well moving back up i have get final well moving back up i have get final quote for our truck so we quote for our truck so we quote for our truck so we have the truck in the shop right now our have the truck in the shop right now our have the truck in the shop right now our mechanic is really moving heaven and mechanic is really moving heaven and mechanic is really moving heaven and earth earth earth trying to find the part at the cheapest trying to find the part at the cheapest trying to find the part at the cheapest rate so we're kind of just waiting rate so we're kind of just waiting rate so we're kind of just waiting around for him to do that it's really no around for him to do that it's really no around for him to do that it's really no big rush we obviously already have two big rush we obviously already have two big rush we obviously already have two vehicles and we've gone our whole lives vehicles and we've gone our whole lives vehicles and we've gone our whole lives without having a truck so it's really without having a truck so it's really without having a truck so it's really not that big of a deal so we're kind of not that big of a deal so we're kind of not that big of a deal so we're kind of just letting him do his thing just letting him do his thing just letting him do his thing and when he gets back to us he will get and when he gets back to us he will get and when he gets back to us he will get back to us finally i think we are going back to us finally i think we are going back to us finally i think we are going to try out a new cell phone carrier i'm to try out a new cell phone carrier i'm to try out a new cell phone carrier i'm kind of a creature of habit so i don't kind of a creature of habit so i don't kind of a creature of habit so i don't like to be bouncing around like to be bouncing around like to be bouncing around a whole whole lot between like just a whole whole lot between like just a whole whole lot between like just anything anything anything realistically but i feel like we've had realistically but i feel like we've had realistically but i feel like we've had a t prepaid for some years a t prepaid for some years a t prepaid for some years and i just want to make sure we are you and i just want to make sure we are you and i just want to make sure we are you know getting the bang for our buck and know getting the bang for our buck and know getting the bang for our buck and i'm just gonna i'm just gonna i'm just gonna explore some other cell phone carriers explore some other cell phone carriers explore some other cell phone carriers out there and kind of see what's what out there and kind of see what's what out there and kind of see what's what basically is what that means because i basically is what that means because i basically is what that means because i don't want to be don't want to be don't want to be you know stuck just having that auto pay you know stuck just having that auto pay you know stuck just having that auto pay come out every single month without come out every single month without come out every single month without you know exploring other options and you know exploring other options and you know exploring other options and making sure we are making sure we are making sure we are getting the bang for our buck moving on getting the bang for our buck moving on getting the bang for our buck moving on to goals so as you guys know to goals so as you guys know to goals so as you guys know we are in this rut along with i mean i we are in this rut along with i mean i we are in this rut along with i mean i wouldn't really call it a rut but wouldn't really call it a rut but wouldn't really call it a rut but basically the student loan payments keep basically the student loan payments keep basically the student loan payments keep getting extended and as they keep getting extended and as they keep getting extended and as they keep getting extended we keep getting extended we keep getting extended we keep keeping the money all of that money in keeping the money all of that money in keeping the money all of that money in our savings account and our savings account and our savings account and it just basically is just accruing some it just basically is just accruing some it just basically is just accruing some interest and it's occurring some decent interest and it's occurring some decent interest and it's occurring some decent interest interest interest i would like to think you know in i would like to think you know in i would like to think you know in conjunction with the other money that's conjunction with the other money that's conjunction with the other money that's in there as well so in there as well so in there as well so um student loans are supposed to be due um student loans are supposed to be due um student loans are supposed to be due at this very moment like as far as i at this very moment like as far as i at this very moment like as far as i know at this very moment january the know at this very moment january the know at this very moment january the st if they don't get extended anymore st if they don't get extended anymore st if they don't get extended anymore we will pay we will pay we will pay off the loans in january but if they do off the loans in january but if they do off the loans in january but if they do get extended then we're just going to get extended then we're just going to get extended then we're just going to ride that wave ride that wave ride that wave as well because i mean we're coming up as well because i mean we're coming up as well because i mean we're coming up on almost a year so as you can imagine on almost a year so as you can imagine on almost a year so as you can imagine that's some pretty good interest that we that's some pretty good interest that we that's some pretty good interest that we have accrued have accrued have accrued so anyway um may or may not be paying so anyway um may or may not be paying so anyway um may or may not be paying off student loans either way i do have off student loans either way i do have off student loans either way i do have another to do another to do another to do where i want to make sure i'm staying up where i want to make sure i'm staying up where i want to make sure i'm staying up to date obviously i've been doing that to date obviously i've been doing that to date obviously i've been doing that thus far but i definitely want to thus far but i definitely want to thus far but i definitely want to ensure that that's taking place in the ensure that that's taking place in the ensure that that's taking place in the new year because new year because new year because you know i feel like i don't know how you know i feel like i don't know how you know i feel like i don't know how many times the student loan many times the student loan many times the student loan deadline is going to be extended but deadline is going to be extended but deadline is going to be extended but either way either way either way if it continues to be extended we'll if it continues to be extended we'll if it continues to be extended we'll definitely continue to take advantage of definitely continue to take advantage of definitely continue to take advantage of it but we'll have to see it but we'll have to see it but we'll have to see another goal is to complete this new another goal is to complete this new another goal is to complete this new business venture i'll be honest with business venture i'll be honest with business venture i'll be honest with y'all y'all y'all it's pretty like of the way ready to it's pretty like of the way ready to it's pretty like of the way ready to go go go my ambivalence i have my own personal my ambivalence i have my own personal my ambivalence i have my own personal ambivalence about ambivalence about ambivalence about launching and do i think it's going to launching and do i think it's going to launching and do i think it's going to help a bunch of people yes i'm not help a bunch of people yes i'm not help a bunch of people yes i'm not excited about it yes am i fit for the excited about it yes am i fit for the excited about it yes am i fit for the job job job yes like do i really think it's going to yes like do i really think it's going to yes like do i really think it's going to be a hit be a hit be a hit personally i think it's gonna fill my personally i think it's gonna fill my personally i think it's gonna fill my bucket and you know like it's not gonna bucket and you know like it's not gonna bucket and you know like it's not gonna be something that's just a waste be something that's just a waste be something that's just a waste is what i'm trying to say but i do have is what i'm trying to say but i do have is what i'm trying to say but i do have a little ambivalence because i know as a little ambivalence because i know as a little ambivalence because i know as soon as i launch soon as i launch soon as i launch i'm gonna be all in and trying to make i'm gonna be all in and trying to make i'm gonna be all in and trying to make sure i'm doing the best that i can be sure i'm doing the best that i can be sure i'm doing the best that i can be doing and i just want to make sure i'm doing and i just want to make sure i'm doing and i just want to make sure i'm not taking on more not taking on more not taking on more than what i can shoot in a perfect world than what i can shoot in a perfect world than what i can shoot in a perfect world i've already kind of like prefaced this i've already kind of like prefaced this i've already kind of like prefaced this with my supervisor i do think in with my supervisor i do think in with my supervisor i do think in i'm going to drop down to hours at i'm going to drop down to hours at i'm going to drop down to hours at work work work which is still considered full time so which is still considered full time so which is still considered full time so i'm going to see how that goes if that i'm going to see how that goes if that i'm going to see how that goes if that does happen that will give me does happen that will give me does happen that will give me a little bit more push to go ahead and a little bit more push to go ahead and a little bit more push to go ahead and launch and just really launch and just really launch and just really not i mean it'll give me a push to not i mean it'll give me a push to not i mean it'll give me a push to launch this but it's really just gonna launch this but it's really just gonna launch this but it's really just gonna open up open up open up you know just gonna free up eight hours you know just gonna free up eight hours you know just gonna free up eight hours of my time eight plus hours of my time eight plus hours of my time eight plus hours if you factor in a commute for a day not if you factor in a commute for a day not if you factor in a commute for a day not spent at my full-time job or going over spent at my full-time job or going over spent at my full-time job or going over to my full-time job so to my full-time job so to my full-time job so i think that once i make that commitment i think that once i make that commitment i think that once i make that commitment then this will be then this will be then this will be that much easier to launch so anyway that much easier to launch so anyway that much easier to launch so anyway stay tuned for that next up we do want stay tuned for that next up we do want stay tuned for that next up we do want to to to invest three to four thousand dollars in invest three to four thousand dollars in invest three to four thousand dollars in the month of january we'll talk about the month of january we'll talk about the month of january we'll talk about that that that in like two seconds when we get down to in like two seconds when we get down to in like two seconds when we get down to our major money goal for january and our major money goal for january and our major money goal for january and then i would also like to earn an then i would also like to earn an then i would also like to earn an additional one thousand dollars additional one thousand dollars additional one thousand dollars by whatever means necessary i will not by whatever means necessary i will not by whatever means necessary i will not buy whatever means necessary not by any buy whatever means necessary not by any buy whatever means necessary not by any means means means necessary but like that's just something necessary but like that's just something necessary but like that's just something that i want to do in the month of that i want to do in the month of that i want to do in the month of january january january in the month of january it looks like in the month of january it looks like in the month of january it looks like we're going to have seven paydays from we're going to have seven paydays from we're going to have seven paydays from our full-time jobs our full-time jobs our full-time jobs five from my husband he gets paid every five from my husband he gets paid every five from my husband he gets paid every friday and two from friday and two from friday and two from my full-time job our major money goal my full-time job our major money goal my full-time job our major money goal for the month of for the month of for the month of january is to invest a minimum of three january is to invest a minimum of three january is to invest a minimum of three thousand dollars now fun fact thousand dollars now fun fact thousand dollars now fun fact the is going to be withdrawn from the is going to be withdrawn from the is going to be withdrawn from our financial advisor our financial advisor our financial advisor on january the st i actually on january the st i actually on january the st i actually transferred the money today i transferred the money today i transferred the money today i transferred the money from transferred the money from transferred the money from a different bank and the reason why i a different bank and the reason why i a different bank and the reason why i had to transfer today which is had to transfer today which is had to transfer today which is like a week before january is because it like a week before january is because it like a week before january is because it takes a while to transfer takes a while to transfer takes a while to transfer between two different banks if you don't between two different banks if you don't between two different banks if you don't have like certain have like certain have like certain if the banks don't have like certain if the banks don't have like certain if the banks don't have like certain features so anyway that money's supposed features so anyway that money's supposed features so anyway that money's supposed to hit at the end of december to hit at the end of december to hit at the end of december the money's gonna be snatched january the money's gonna be snatched january the money's gonna be snatched january and and and so it will begin our fire movement i do so it will begin our fire movement i do so it will begin our fire movement i do have a video coming soon about our have a video coming soon about our have a video coming soon about our financial goals for financial goals for financial goals for i mean we don't have a lot but i i mean we don't have a lot but i i mean we don't have a lot but i figured i would share those figured i would share those figured i would share those with you guys anyway and just break them with you guys anyway and just break them with you guys anyway and just break them down and just make them down and just make them down and just make them make sense for you guys so anyway um make sense for you guys so anyway um make sense for you guys so anyway um we do want to invest a minimum of we do want to invest a minimum of we do want to invest a minimum of but if we have any wiggle room which but if we have any wiggle room which but if we have any wiggle room which we'll talk about where we might find a we'll talk about where we might find a we'll talk about where we might find a little wiggle room little wiggle room little wiggle room we do want to invest an additional we do want to invest an additional we do want to invest an additional in the month of january regarding our in the month of january regarding our in the month of january regarding our current debt it is my husband's student current debt it is my husband's student current debt it is my husband's student loans at twelve thousand seven hundred loans at twelve thousand seven hundred loans at twelve thousand seven hundred four dollars and forty eight cents four dollars and forty eight cents four dollars and forty eight cents again we have the money for that just again we have the money for that just again we have the money for that just waiting to pull the trigger waiting to pull the trigger waiting to pull the trigger a little nervous about that too i mean a little nervous about that too i mean a little nervous about that too i mean that's a lot of money that we've been that's a lot of money that we've been that's a lot of money that we've been sitting on for a while but sitting on for a while but sitting on for a while but you know whatever so let's go ahead and you know whatever so let's go ahead and you know whatever so let's go ahead and dive into our actual budget dive into our actual budget dive into our actual budget so in the month of january i'm trying so in the month of january i'm trying so in the month of january i'm trying something new mentally something new mentally something new mentally i am i've been you know we've been i am i've been you know we've been i am i've been you know we've been trying this for trying this for trying this for a couple of months in preparation for a couple of months in preparation for a couple of months in preparation for january because we knew that january because we knew that january because we knew that investing was not going to be optional investing was not going to be optional investing was not going to be optional and we knew that we were going to have and we knew that we were going to have and we knew that we were going to have to be tighter with our budget in the to be tighter with our budget in the to be tighter with our budget in the month of january because we month of january because we month of january because we were going to be setting up automatic were going to be setting up automatic were going to be setting up automatic payments for our investing payments for our investing payments for our investing and we weren't going to be playing and we weren't going to be playing and we weren't going to be playing around so i've kind of been doing this around so i've kind of been doing this around so i've kind of been doing this for q like i said it was in preparation for q like i said it was in preparation for q like i said it was in preparation it has been in preparation for so it has been in preparation for so it has been in preparation for so first up we are going to be paying first up we are going to be paying first up we are going to be paying ourselves ourselves ourselves so this is basically gonna so this is basically gonna so this is basically gonna be after all of our payroll deductions be after all of our payroll deductions be after all of our payroll deductions at our full-time jobs at our full-time jobs at our full-time jobs after setting aside money for business after setting aside money for business after setting aside money for business expenses after setting aside money for expenses after setting aside money for expenses after setting aside money for business taxes which is normally i try business taxes which is normally i try business taxes which is normally i try to save about to save about to save about percent um or so percent um or so percent um or so of our business income each month it's of our business income each month it's of our business income each month it's gonna be basically after everything this gonna be basically after everything this gonna be basically after everything this is money that we can rightfully spend is money that we can rightfully spend is money that we can rightfully spend however we want to spend it in the month however we want to spend it in the month however we want to spend it in the month of january this is definitely going to of january this is definitely going to of january this is definitely going to be a be a be a higher income month than normal for sure higher income month than normal for sure higher income month than normal for sure and that's because i'm starting to and that's because i'm starting to and that's because i'm starting to i've been continuing to receive payments i've been continuing to receive payments i've been continuing to receive payments from you know campaigns from you know campaigns from you know campaigns and work that i have been doing um in q and work that i have been doing um in q and work that i have been doing um in q so total income ten thousand dollars so total income ten thousand dollars so total income ten thousand dollars total bills slash expenses total bills slash expenses total bills slash expenses ten thousand dollars we do a zero based ten thousand dollars we do a zero based ten thousand dollars we do a zero based budget that means our income budget that means our income budget that means our income is the same as our bills slash expenses is the same as our bills slash expenses is the same as our bills slash expenses because we account because we account because we account for every single dollar we budget every for every single dollar we budget every for every single dollar we budget every single dollar down to debt payments single dollar down to debt payments single dollar down to debt payments down to savings down to investing we down to savings down to investing we down to savings down to investing we budget every single dollar just so we budget every single dollar just so we budget every single dollar just so we don't leave any dollar don't leave any dollar don't leave any dollar to chance so let's go ahead and talk to chance so let's go ahead and talk to chance so let's go ahead and talk about how we're going to spend the ten about how we're going to spend the ten about how we're going to spend the ten thousand dollars first up we have our thousand dollars first up we have our thousand dollars first up we have our mortgage that is fixed that is going to mortgage that is fixed that is going to mortgage that is fixed that is going to be be be . that has been the same amount . that has been the same amount . that has been the same amount since we moved in here last december since we moved in here last december since we moved in here last december next up we have security that is a fixed next up we have security that is a fixed next up we have security that is a fixed amount as well amount as well amount as well it is . every single month and it is . every single month and it is . every single month and that's just for security for our home that's just for security for our home that's just for security for our home next up we have electricity next up we have electricity next up we have electricity that is . that's not fixed but i do that is . that's not fixed but i do that is . that's not fixed but i do have have have the bill ahead of time like before the the bill ahead of time like before the the bill ahead of time like before the new month new month new month starts so while it won't change in the starts so while it won't change in the starts so while it won't change in the month of january the bill is going to be month of january the bill is going to be month of january the bill is going to be the bill the bill the bill it is technically a variable expense but it is technically a variable expense but it is technically a variable expense but our electricity is going to be . our electricity is going to be . our electricity is going to be . which i'm kind of proud of because i which i'm kind of proud of because i which i'm kind of proud of because i didn't know what was going to be what didn't know what was going to be what didn't know what was going to be what with like our christmas lights and our with like our christmas lights and our with like our christmas lights and our christmas christmas christmas trees and all of that but not too bad trees and all of that but not too bad trees and all of that but not too bad next up we have our phone bill that is next up we have our phone bill that is next up we have our phone bill that is fixed that is for unlimited for me fixed that is for unlimited for me fixed that is for unlimited for me um and that's mainly because i'm always um and that's mainly because i'm always um and that's mainly because i'm always running out of data due to always being running out of data due to always being running out of data due to always being on my phone on my phone on my phone due to working from my phone but my due to working from my phone but my due to working from my phone but my husband rarely uses his phone and i will husband rarely uses his phone and i will husband rarely uses his phone and i will say like at work he like say like at work he like say like at work he like actually works so when he's home he's on actually works so when he's home he's on actually works so when he's home he's on wi-fi wi-fi wi-fi so he pretty much never runs out of data so he pretty much never runs out of data so he pretty much never runs out of data if he did we would bump up his as well if he did we would bump up his as well if he did we would bump up his as well but as of right now we are paying . but as of right now we are paying . but as of right now we are paying . and we pay that every single month and we pay that every single month and we pay that every single month through at t through at t through at t prepaid next up we have cable slash prepaid next up we have cable slash prepaid next up we have cable slash internet that's a fixed amount that is internet that's a fixed amount that is internet that's a fixed amount that is . it doesn't really . it doesn't really . it doesn't really fluctuate or vary at all unless we like fluctuate or vary at all unless we like fluctuate or vary at all unless we like buy a channel or something like that buy a channel or something like that buy a channel or something like that which we never do that would be the only which we never do that would be the only which we never do that would be the only reason why it would fluctuate but since reason why it would fluctuate but since reason why it would fluctuate but since we've been living here and having to use we've been living here and having to use we've been living here and having to use at t and directv our bill at t and directv our bill at t and directv our bill for um like our actual bill each month for um like our actual bill each month for um like our actual bill each month is . is . is . is for the highest speed of internet and is for the highest speed of internet and is for the highest speed of internet and we do have a decent amount of channels we do have a decent amount of channels we do have a decent amount of channels next up we have water slash sewer next up we have water slash sewer next up we have water slash sewer i am budgeting i've realized i am budgeting i've realized i am budgeting i've realized in recent months that our bill has been in recent months that our bill has been in recent months that our bill has been and i think that's the minimum amount and i think that's the minimum amount and i think that's the minimum amount that we have to pay for water slash that we have to pay for water slash that we have to pay for water slash sewer otherwise it would be higher like sewer otherwise it would be higher like sewer otherwise it would be higher like in the summer months we run our in the summer months we run our in the summer months we run our sprinklers to water our grass and sprinklers to water our grass and sprinklers to water our grass and whatnot and sometimes our bill whatnot and sometimes our bill whatnot and sometimes our bill can be upwards of like maybe even can be upwards of like maybe even can be upwards of like maybe even so i think is the lowest so i think is the lowest so i think is the lowest that it could possibly be so with our that it could possibly be so with our that it could possibly be so with our normal washing clothes and dishes normal washing clothes and dishes normal washing clothes and dishes running the dishwasher running the dishwasher running the dishwasher all of that stuff we sit at about all of that stuff we sit at about all of that stuff we sit at about which again which again which again like i said i think is the lowest that like i said i think is the lowest that like i said i think is the lowest that it can be next up we have our reckless it can be next up we have our reckless it can be next up we have our reckless af af af funds aka our allowances funds aka our allowances funds aka our allowances and we are going to be budgeting for and we are going to be budgeting for and we are going to be budgeting for the both of us the both of us the both of us really that's like a piece but really that's like a piece but really that's like a piece but recently i have combined them because it recently i have combined them because it recently i have combined them because it always just seemed like either i was always just seemed like either i was always just seemed like either i was over a little bit or my husband was over over a little bit or my husband was over over a little bit or my husband was over a little bit or i was under a little bit a little bit or i was under a little bit a little bit or i was under a little bit my husband was under a little bit so my husband was under a little bit so my husband was under a little bit so either way our average was like either way our average was like either way our average was like so i just have it for during some so i just have it for during some so i just have it for during some months like our birthday months and months like our birthday months and months like our birthday months and anniversary months or times where um anniversary months or times where um anniversary months or times where um spending may be a little higher i may do spending may be a little higher i may do spending may be a little higher i may do like but we definitely never go over like but we definitely never go over like but we definitely never go over reckless spending next up we have reckless spending next up we have reckless spending next up we have donation slash gifts i am planning to donation slash gifts i am planning to donation slash gifts i am planning to gift my friend normally we do gifts of gift my friend normally we do gifts of gift my friend normally we do gifts of about a hundred dollars or so about a hundred dollars or so about a hundred dollars or so i'm of course i am going to her so maybe i'm of course i am going to her so maybe i'm of course i am going to her so maybe i'll like pay for her food i'll like pay for her food i'll like pay for her food if we go out to like a dinner for her or if we go out to like a dinner for her or if we go out to like a dinner for her or if i take her out to dinner or lunch or if i take her out to dinner or lunch or if i take her out to dinner or lunch or something something something or um and maybe give her some or um and maybe give her some or um and maybe give her some other gift i don't know but i'm doing other gift i don't know but i'm doing other gift i don't know but i'm doing like a hundred dollars for her like a hundred dollars for her like a hundred dollars for her i always do budget a little bit more for i always do budget a little bit more for i always do budget a little bit more for other random giving like donating to other random giving like donating to other random giving like donating to people people people who ask for money you know like on the who ask for money you know like on the who ask for money you know like on the street or oftentimes at work we have street or oftentimes at work we have street or oftentimes at work we have like baby shower funds that we like baby shower funds that we like baby shower funds that we contribute to contribute to contribute to if somebody has a baby shower coming up if somebody has a baby shower coming up if somebody has a baby shower coming up or a wedding or or a wedding or or a wedding or something like that so i always try to something like that so i always try to something like that so i always try to budget for those types of things budget for those types of things budget for those types of things this is a small amount of the giving this is a small amount of the giving this is a small amount of the giving that we do every single month but i like that we do every single month but i like that we do every single month but i like to have a little bit budgeted in for to have a little bit budgeted in for to have a little bit budgeted in for those those those um like that smaller giving if you will um like that smaller giving if you will um like that smaller giving if you will next up we have toiletries we budget next up we have toiletries we budget next up we have toiletries we budget about about about each month for toiletries toilet paper each month for toiletries toilet paper each month for toiletries toilet paper paper towels paper towels paper towels those types of things next up we have those types of things next up we have those types of things next up we have beauty that is going to be beauty that is going to be beauty that is going to be my husband hasn't gotten a haircut since my husband hasn't gotten a haircut since my husband hasn't gotten a haircut since covid so he's been getting his hair covid so he's been getting his hair covid so he's been getting his hair like in little styles braids and things like in little styles braids and things like in little styles braids and things of the sort of course i like to keep my of the sort of course i like to keep my of the sort of course i like to keep my hair done hair done hair done beauty could also mean like nails and beauty could also mean like nails and beauty could also mean like nails and feet and stuff like that as well feet and stuff like that as well feet and stuff like that as well so because my husband is also getting so because my husband is also getting so because my husband is also getting his his his hair done and stuff like that i am hair done and stuff like that i am hair done and stuff like that i am budgeting for budgeting for budgeting for the month of january next up we have the month of january next up we have the month of january next up we have travel i have budgeted travel i have budgeted travel i have budgeted for that that's a little steep whenever for that that's a little steep whenever for that that's a little steep whenever i go home i just crash on somebody's i go home i just crash on somebody's i go home i just crash on somebody's couch and then i just spend money going couch and then i just spend money going couch and then i just spend money going to my hometown favorites to my hometown favorites to my hometown favorites of course i have to pay for toll money of course i have to pay for toll money of course i have to pay for toll money if i'm driving which i always drive home if i'm driving which i always drive home if i'm driving which i always drive home and also i have to pay for gas um so and also i have to pay for gas um so and also i have to pay for gas um so is a little steep but that is because is a little steep but that is because is a little steep but that is because this may be for two trips home so my this may be for two trips home so my this may be for two trips home so my husband's grandma husband's grandma husband's grandma actually recently passed away and so actually recently passed away and so actually recently passed away and so they are currently in the process of they are currently in the process of they are currently in the process of trying to figure out arrangements for trying to figure out arrangements for trying to figure out arrangements for her her her um which looks like it's gonna have to um which looks like it's gonna have to um which looks like it's gonna have to take place after the christmas holiday take place after the christmas holiday take place after the christmas holiday for which case for which case for which case i'm thinking it'll be somewhere around i'm thinking it'll be somewhere around i'm thinking it'll be somewhere around either like the tail end either like the tail end either like the tail end of december or maybe like the beginning of december or maybe like the beginning of december or maybe like the beginning of january for which case let's say it's of january for which case let's say it's of january for which case let's say it's january january january and we come back home january then and we come back home january then and we come back home january then that's money that that's money that that's money that you know will have to be a part of the you know will have to be a part of the you know will have to be a part of the january budget that we'll be spending at january budget that we'll be spending at january budget that we'll be spending at home home home and then of course i'm going home for my and then of course i'm going home for my and then of course i'm going home for my friend's birthday friend's birthday friend's birthday so that'll be two trips home in the so that'll be two trips home in the so that'll be two trips home in the month of january and i think month of january and i think month of january and i think should be good for that next up we have should be good for that next up we have should be good for that next up we have house as mentored before we do have to house as mentored before we do have to house as mentored before we do have to pay our hoa fees so that's going to be pay our hoa fees so that's going to be pay our hoa fees so that's going to be coming out of that line item just simply coming out of that line item just simply coming out of that line item just simply for our hoa fees and then we always for our hoa fees and then we always for our hoa fees and then we always budget a couple hundred dollars budget a couple hundred dollars budget a couple hundred dollars just for things that we need to purchase just for things that we need to purchase just for things that we need to purchase that we didn't have to purchase that we didn't have to purchase that we didn't have to purchase as um renters like step ladders or as um renters like step ladders or as um renters like step ladders or regular ladders or drills or drill bits regular ladders or drills or drill bits regular ladders or drills or drill bits or or or you know those types of things also a you know those types of things also a you know those types of things also a little decor obviously i'm still little decor obviously i'm still little decor obviously i'm still decorating i'm getting closer and closer decorating i'm getting closer and closer decorating i'm getting closer and closer to being finished but i am still in the to being finished but i am still in the to being finished but i am still in the process of decorating so process of decorating so process of decorating so some of that money is for decor as well some of that money is for decor as well some of that money is for decor as well next up we have miscellaneous we budget next up we have miscellaneous we budget next up we have miscellaneous we budget for miscellaneous each and every month for miscellaneous each and every month for miscellaneous each and every month that is because you know it is unlikely that is because you know it is unlikely that is because you know it is unlikely that we'll go a month that we'll go a month that we'll go a month without having to spend money on without having to spend money on without having to spend money on something that something that something that we didn't budget for because you know we didn't budget for because you know we didn't budget for because you know some things you just some things you just some things you just can't really budget for some things just can't really budget for some things just can't really budget for some things just pop up like i don't know a parking pop up like i don't know a parking pop up like i don't know a parking ticket ticket ticket or something like that and you just need or something like that and you just need or something like that and you just need to be able to account for that money to be able to account for that money to be able to account for that money somewhere so that's what the somewhere so that's what the somewhere so that's what the miscellaneous category is for gas for miscellaneous category is for gas for miscellaneous category is for gas for our cars we pretty much do our cars we pretty much do our cars we pretty much do every single month then we have car every single month then we have car every single month then we have car insurance we don't have to pay car insurance we don't have to pay car insurance we don't have to pay car insurance again until june because we insurance again until june because we insurance again until june because we just paid just paid just paid our six-month premium at the beginning our six-month premium at the beginning our six-month premium at the beginning of december so we don't have to pay of december so we don't have to pay of december so we don't have to pay again again again until june and then we'll pay our until june and then we'll pay our until june and then we'll pay our six-month premium again next june next six-month premium again next june next six-month premium again next june next up health insurance i have health up health insurance i have health up health insurance i have health insurance through my job and my insurance through my job and my insurance through my job and my husband's health insurance like if he husband's health insurance like if he husband's health insurance like if he were to get it were to get it were to get it through his job it would be like a crazy through his job it would be like a crazy through his job it would be like a crazy amount and it would be an even amount and it would be an even amount and it would be an even crazier amount to put him on my crazier amount to put him on my crazier amount to put him on my insurance so we just insurance so we just insurance so we just pay for his insurance solo dolo and that pay for his insurance solo dolo and that pay for his insurance solo dolo and that is to is to is to every single month life insurance for every single month life insurance for every single month life insurance for the both of us is the both of us is the both of us is every single month food slash dates is every single month food slash dates is every single month food slash dates is . normally we would go . normally we would go . normally we would go on dates like pre-covet at least on dates like pre-covet at least on dates like pre-covet at least um a couple of times a month and we um a couple of times a month and we um a couple of times a month and we would whatever we would spend on the day would whatever we would spend on the day would whatever we would spend on the day even if we went to like topgolf or even if we went to like topgolf or even if we went to like topgolf or something we would put it in something we would put it in something we would put it in this category because it seems to make this category because it seems to make this category because it seems to make the most sense because all of our dates the most sense because all of our dates the most sense because all of our dates include going out to eat usually so include going out to eat usually so include going out to eat usually so um that's what that's for we go out like um that's what that's for we go out like um that's what that's for we go out like once a month once a month once a month to eat now probably there's really not to eat now probably there's really not to eat now probably there's really not much to do with kovitz so much to do with kovitz so much to do with kovitz so there's that but we also do a weekly there's that but we also do a weekly there's that but we also do a weekly grocery grocery grocery trip which is about of course there trip which is about of course there trip which is about of course there are kind of like five weeks in the month are kind of like five weeks in the month are kind of like five weeks in the month of january so of january so of january so all in all for all the things that we all in all for all the things that we all in all for all the things that we spend money on food related or date spend money on food related or date spend money on food related or date related we are going to be budgeting related we are going to be budgeting related we are going to be budgeting . . . for my student loan it will not be due for my student loan it will not be due for my student loan it will not be due in january for my husband's student loan in january for my husband's student loan in january for my husband's student loan it will not be due in january of course it will not be due in january of course it will not be due in january of course it could be that we're paying off the it could be that we're paying off the it could be that we're paying off the loans in january loans in january loans in january we'll have to wait and see skipping down we'll have to wait and see skipping down we'll have to wait and see skipping down to retirement again an automatic payment to retirement again an automatic payment to retirement again an automatic payment of three thousand dollars is coming out of three thousand dollars is coming out of three thousand dollars is coming out for our retirement for our retirement for our retirement excess retirement contributions i feel excess retirement contributions i feel excess retirement contributions i feel like i should like i should like i should um make that pretty clear because the um make that pretty clear because the um make that pretty clear because the is actually is actually is actually for roth iras both of ours and a for roth iras both of ours and a for roth iras both of ours and a joint brokerage account so what's left joint brokerage account so what's left joint brokerage account so what's left after all of that major stuff is after all of that major stuff is after all of that major stuff is out of the way is two thousand two out of the way is two thousand two out of the way is two thousand two hundred eighty one dollars and forty hundred eighty one dollars and forty hundred eighty one dollars and forty cents cents cents i have thrown all of that in the car i have thrown all of that in the car i have thrown all of that in the car maintenance line item and that is maintenance line item and that is maintenance line item and that is because the truck could be because the truck could be because the truck could be closer to like a thousand dollars to fix closer to like a thousand dollars to fix closer to like a thousand dollars to fix or it could be upwards of two thousand or it could be upwards of two thousand or it could be upwards of two thousand dollars i just figured i'd throw all of dollars i just figured i'd throw all of dollars i just figured i'd throw all of that that that into the car fund of course if we are into the car fund of course if we are into the car fund of course if we are able to able to able to get it fixed for close to two thousand get it fixed for close to two thousand get it fixed for close to two thousand that would mean that we would have about that would mean that we would have about that would mean that we would have about a thousand left over a thousand left over a thousand left over for which case nine times out of ten we for which case nine times out of ten we for which case nine times out of ten we would go ahead and would go ahead and would go ahead and contribute that to retirement and have contribute that to retirement and have contribute that to retirement and have our advisor our advisor our advisor you know grab another thousand dollars you know grab another thousand dollars you know grab another thousand dollars from our account from our account from our account to contribute to our brokerage account to contribute to our brokerage account to contribute to our brokerage account so that is it for our monthly so that is it for our monthly so that is it for our monthly budget again budget again budget again not a whole lot going on but i guess not a whole lot going on but i guess not a whole lot going on but i guess kind of a whole lot going on because it kind of a whole lot going on because it kind of a whole lot going on because it took me a while to get through took me a while to get through took me a while to get through this video and to kind of get through this video and to kind of get through this video and to kind of get through the budget and all of that but for the the budget and all of that but for the the budget and all of that but for the most part it's pretty simple most part it's pretty simple most part it's pretty simple main objective is to be starting our main objective is to be starting our main objective is to be starting our investment journey and investment journey and investment journey and kind of getting the truck fixed pretty kind of getting the truck fixed pretty kind of getting the truck fixed pretty much those are pretty much much those are pretty much much those are pretty much the major things that we'll have to take the major things that we'll have to take the major things that we'll have to take care of in the month of january care of in the month of january care of in the month of january but that is it for our budget for the but that is it for our budget for the but that is it for our budget for the month of january month of january month of january for the year i'm excited to begin for the year i'm excited to begin for the year i'm excited to begin this investment journey again more this investment journey again more this investment journey again more financial videos financial videos financial videos coming soon of course i need to recap q coming soon of course i need to recap q coming soon of course i need to recap q and let you guys know how i did for the and let you guys know how i did for the and let you guys know how i did for the business business business and how much money i was able to make and how much money i was able to make and how much money i was able to make online in q online in q online in q um despite covert or with covet and also um despite covert or with covet and also um despite covert or with covet and also i need to share with you guys our i need to share with you guys our i need to share with you guys our financial goals for whole bunch of financial goals for whole bunch of financial goals for whole bunch of fun stuff so anyway fun stuff so anyway fun stuff so anyway i hope that you guys enjoyed this video i hope that you guys enjoyed this video i hope that you guys enjoyed this video stay tuned for more financial videos stay tuned for more financial videos stay tuned for more financial videos and i will see you guys in my next one and i will see you guys in my next one and i will see you guys in my next one bye guys WEBVTT Kind: captions Language: en as it allows you to retire or to step as it allows you to retire or to step as it allows you to retire or to step away from your full-time career away from your full-time career away from your full-time career before actually reaching your full before actually reaching your full before actually reaching your full financial independence number financial independence number financial independence number think of barista fire as kind of like think of barista fire as kind of like think of barista fire as kind of like dabbling your toes in dabbling your toes in dabbling your toes in full-fledged fire with barista fire you full-fledged fire with barista fire you full-fledged fire with barista fire you are still an employee are still an employee are still an employee even if you're a part-time employee you even if you're a part-time employee you even if you're a part-time employee you are still an employee are still an employee are still an employee and you have to answer to a boss hey and you have to answer to a boss hey and you have to answer to a boss hey guys what's up guys what's up guys what's up i'm erin and welcome back to the channel i'm erin and welcome back to the channel i'm erin and welcome back to the channel now if you've watched any of my other now if you've watched any of my other now if you've watched any of my other videos you might notice that our setting videos you might notice that our setting videos you might notice that our setting looks a little differently here looks a little differently here looks a little differently here well that's because my husband and i well that's because my husband and i well that's because my husband and i have moved we used to live in portland have moved we used to live in portland have moved we used to live in portland oregon we have now moved to st oregon we have now moved to st oregon we have now moved to st louis missouri so the setting is going louis missouri so the setting is going louis missouri so the setting is going to continue looking a little bit to continue looking a little bit to continue looking a little bit different more like this different more like this different more like this but the content will still remain the but the content will still remain the but the content will still remain the same we're always talking about money on same we're always talking about money on same we're always talking about money on this channel this channel this channel now financial independence that is the now financial independence that is the now financial independence that is the ultimate money goal for the vast ultimate money goal for the vast ultimate money goal for the vast majority of people majority of people majority of people it happens when you have enough money it happens when you have enough money it happens when you have enough money saved up that you can cover saved up that you can cover saved up that you can cover all of your life expenses you no longer all of your life expenses you no longer all of your life expenses you no longer have to go to work have to go to work have to go to work to earn an income to pay all your bills to earn an income to pay all your bills to earn an income to pay all your bills it it it generally happens general rule of thumb generally happens general rule of thumb generally happens general rule of thumb is that it happens when you have about is that it happens when you have about is that it happens when you have about times your annual income saved up times your annual income saved up times your annual income saved up now for most people this happens when now for most people this happens when now for most people this happens when they're about they're about they're about years or older that's the traditional years or older that's the traditional years or older that's the traditional american american american but for those who are members of the but for those who are members of the but for those who are members of the fire community fire community fire community financial independents retire early they financial independents retire early they financial independents retire early they strive to hit their own strive to hit their own strive to hit their own personal fi financial independence personal fi financial independence personal fi financial independence number number number much earlier in life how much earlier much earlier in life how much earlier much earlier in life how much earlier well it really depends on how well it really depends on how well it really depends on how aggressively they're willing to save aggressively they're willing to save aggressively they're willing to save there are actually many different types there are actually many different types there are actually many different types of fire out there and today i want to of fire out there and today i want to of fire out there and today i want to talk about barista fire talk about barista fire talk about barista fire now barista fire really isn't full fire now barista fire really isn't full fire now barista fire really isn't full fire or or or full financial independence instead full financial independence instead full financial independence instead barista fire is like being barista fire is like being barista fire is like being semi-retired you're one step below semi-retired you're one step below semi-retired you're one step below financial independence with barista fire financial independence with barista fire financial independence with barista fire make no mistake about it you have a make no mistake about it you have a make no mistake about it you have a significant amount of money significant amount of money significant amount of money saved up but you don't have enough to be saved up but you don't have enough to be saved up but you don't have enough to be considered considered considered fully financially independent instead fully financially independent instead fully financially independent instead you have this gap you have this gap you have this gap the gap between the income that your the gap between the income that your the gap between the income that your investments generate investments generate investments generate and the amount of expenses you have to and the amount of expenses you have to and the amount of expenses you have to cover in a given month cover in a given month cover in a given month so to cover this gap you kind of have to so to cover this gap you kind of have to so to cover this gap you kind of have to take on take on take on some kind of part-time job or find a way some kind of part-time job or find a way some kind of part-time job or find a way to generate to generate to generate extra income so let's say that your extra income so let's say that your extra income so let's say that your investments generate investments generate investments generate three thousand dollars a month but your three thousand dollars a month but your three thousand dollars a month but your expenses are expenses are expenses are four thousand dollars a month you have four thousand dollars a month you have four thousand dollars a month you have to find a way to come up with an to find a way to come up with an to find a way to come up with an additional thousand dollars every single additional thousand dollars every single additional thousand dollars every single month month month in order to cover your expenses fully in order to cover your expenses fully in order to cover your expenses fully barista fire can be really appealing to barista fire can be really appealing to barista fire can be really appealing to some as it allows you to retire or to some as it allows you to retire or to some as it allows you to retire or to step away from your full-time career step away from your full-time career step away from your full-time career before actually reaching your full before actually reaching your full before actually reaching your full financial independence number financial independence number financial independence number and for those who belong to the fire and for those who belong to the fire and for those who belong to the fire community a lot of them work community a lot of them work community a lot of them work very long hours in very high stress jobs very long hours in very high stress jobs very long hours in very high stress jobs so the idea of stepping away from that so the idea of stepping away from that so the idea of stepping away from that career as early as possible career as early as possible career as early as possible can be truly appealing in fact according can be truly appealing in fact according can be truly appealing in fact according to a to a to a gallup poll of the world's gallup poll of the world's gallup poll of the world's billion full-time workers actually billion full-time workers actually billion full-time workers actually dislike their job dislike their job dislike their job now the reason they just like their job now the reason they just like their job now the reason they just like their job could be numerous could be numerous could be numerous it could be their stress levels it could it could be their stress levels it could it could be their stress levels it could be their boss or their colleagues the be their boss or their colleagues the be their boss or their colleagues the commute time commute time commute time the industry they work in work life the industry they work in work life the industry they work in work life balance or balance or balance or lack thereof lack of growth potential lack thereof lack of growth potential lack thereof lack of growth potential really it could be really it could be really it could be any reason for someone to dislike their any reason for someone to dislike their any reason for someone to dislike their job and want to step away from it and job and want to step away from it and job and want to step away from it and into something else now for those who into something else now for those who into something else now for those who truly want to step away from their truly want to step away from their truly want to step away from their career as career as career as early as possible and into some sort of early as possible and into some sort of early as possible and into some sort of semi-retirement semi-retirement semi-retirement barista fire offers up that solution you barista fire offers up that solution you barista fire offers up that solution you do the grind do the grind do the grind you work hard you save aggressively you you work hard you save aggressively you you work hard you save aggressively you keep building up your investments until keep building up your investments until keep building up your investments until they're they're they're almost at your total financial almost at your total financial almost at your total financial independence number but then you step independence number but then you step independence number but then you step away from your career away from your career away from your career and you transition into some more and you transition into some more and you transition into some more enjoyable part-time enjoyable part-time enjoyable part-time low stress work or you take on side gigs low stress work or you take on side gigs low stress work or you take on side gigs that are going to help you bridge that that are going to help you bridge that that are going to help you bridge that gap gap gap the gap the the income you get from your the gap the the income you get from your the gap the the income you get from your investments investments investments and your expenses that you face on a and your expenses that you face on a and your expenses that you face on a monthly basis monthly basis monthly basis so think of barista fire as kind of like so think of barista fire as kind of like so think of barista fire as kind of like dabbling your toes dabbling your toes dabbling your toes in full-fledged fire you're almost at in full-fledged fire you're almost at in full-fledged fire you're almost at financial independence but not quite financial independence but not quite financial independence but not quite now it's worth noting that being willing now it's worth noting that being willing now it's worth noting that being willing to work a part-time job and even to work a part-time job and even to work a part-time job and even generate just a small amount of money generate just a small amount of money generate just a small amount of money can drastically reduce can drastically reduce can drastically reduce the amount of money you need saved up in the amount of money you need saved up in the amount of money you need saved up in a nest egg in order to be able to retire a nest egg in order to be able to retire a nest egg in order to be able to retire remember the general rule of thumb is remember the general rule of thumb is remember the general rule of thumb is that you need that you need that you need times your planned retirement income times your planned retirement income times your planned retirement income in order to be considered financially in order to be considered financially in order to be considered financially independent that means independent that means independent that means for every thousand dollars of annual for every thousand dollars of annual for every thousand dollars of annual income you're willing and able to income you're willing and able to income you're willing and able to generate from a side hustle generate from a side hustle generate from a side hustle or some kind of side gig that's or some kind of side gig that's or some kind of side gig that's less that you would need built up in less that you would need built up in less that you would need built up in your your your nest egg before you could retire now nest egg before you could retire now nest egg before you could retire now let's say that we use our previous let's say that we use our previous let's say that we use our previous example and example and example and you're willing to earn a thousand you're willing to earn a thousand you're willing to earn a thousand dollars a month to bridge the gap dollars a month to bridge the gap dollars a month to bridge the gap between your investment income between your investment income between your investment income and your expenses a thousand dollars a and your expenses a thousand dollars a and your expenses a thousand dollars a month is gonna translate month is gonna translate month is gonna translate to twelve thousand dollars a year that to twelve thousand dollars a year that to twelve thousand dollars a year that additional twelve thousand dollars of additional twelve thousand dollars of additional twelve thousand dollars of earned income would translate over to earned income would translate over to earned income would translate over to having to save three having to save three having to save three hundred thousand dollars less in your hundred thousand dollars less in your hundred thousand dollars less in your retirement nest egg retirement nest egg retirement nest egg and certainly it would take a great deal and certainly it would take a great deal and certainly it would take a great deal of time effort and life energy of time effort and life energy of time effort and life energy to beef up your savings by three hundred to beef up your savings by three hundred to beef up your savings by three hundred thousand dollars thousand dollars thousand dollars whereas it probably doesn't take all whereas it probably doesn't take all whereas it probably doesn't take all that much effort or energy to earn a that much effort or energy to earn a that much effort or energy to earn a thousand dollars a month thousand dollars a month thousand dollars a month when you're in a semi-retired state many when you're in a semi-retired state many when you're in a semi-retired state many may actually get a lot of enjoyment out may actually get a lot of enjoyment out may actually get a lot of enjoyment out of having a part-time job in their of having a part-time job in their of having a part-time job in their semi-retired state as it can help add semi-retired state as it can help add semi-retired state as it can help add meaning to their life or meaning to their life or meaning to their life or help keep them social as they've stepped help keep them social as they've stepped help keep them social as they've stepped away from their away from their away from their once full-time career and many people once full-time career and many people once full-time career and many people can actually find it can actually find it can actually find it quite liberating to step into an quite liberating to step into an quite liberating to step into an enjoyable part-time enjoyable part-time enjoyable part-time low stress position and find that their low stress position and find that their low stress position and find that their life is far happier life is far happier life is far happier than when they were actually at their than when they were actually at their than when they were actually at their high paying very stressful full-time high paying very stressful full-time high paying very stressful full-time career so it really career so it really career so it really comes down to being a personal choice at comes down to being a personal choice at comes down to being a personal choice at this point this point this point barista fire actually got its name from barista fire actually got its name from barista fire actually got its name from starbucks and the benefits that they starbucks and the benefits that they starbucks and the benefits that they offer to their part-time workers so long offer to their part-time workers so long offer to their part-time workers so long as they work as they work as they work hours a week or more which is a hours a week or more which is a hours a week or more which is a part-time position part-time position part-time position now many people who belong to barista now many people who belong to barista now many people who belong to barista fire can actually cover fire can actually cover fire can actually cover all of their day-to-day or their monthly all of their day-to-day or their monthly all of their day-to-day or their monthly expenses but they turn to part-time work expenses but they turn to part-time work expenses but they turn to part-time work in order to get some assistance with in order to get some assistance with in order to get some assistance with health care costs health care costs health care costs medical dental and vision as we all know medical dental and vision as we all know medical dental and vision as we all know medical costs are huge and they're on medical costs are huge and they're on medical costs are huge and they're on the rise the rise the rise every single year they're increasing at every single year they're increasing at every single year they're increasing at a rate of about five percent a year a rate of about five percent a year a rate of about five percent a year that's faster than wage increases and that's faster than wage increases and that's faster than wage increases and faster than inflation faster than inflation faster than inflation make no mistake about it no matter who make no mistake about it no matter who make no mistake about it no matter who you are medical expenses are going to you are medical expenses are going to you are medical expenses are going to take up a significant portion of your take up a significant portion of your take up a significant portion of your budget budget budget in the average annual premium for a in the average annual premium for a in the average annual premium for a family health care plan family health care plan family health care plan is almost and working for a is almost and working for a is almost and working for a company that will cover a significant company that will cover a significant company that will cover a significant portion of these or if you're lucky portion of these or if you're lucky portion of these or if you're lucky all of these health care costs is a huge all of these health care costs is a huge all of these health care costs is a huge deal deal deal i always call it massive sometimes they i always call it massive sometimes they i always call it massive sometimes they say say say huge and it's especially worth noting huge and it's especially worth noting huge and it's especially worth noting that that that the access to health care plans that you the access to health care plans that you the access to health care plans that you get with a company get with a company get with a company are usually far more comprehensive than are usually far more comprehensive than are usually far more comprehensive than you would otherwise be able to get as an you would otherwise be able to get as an you would otherwise be able to get as an individual on the marketplace individual on the marketplace individual on the marketplace also worth noting that you're accessing also worth noting that you're accessing also worth noting that you're accessing them at just a fraction of them at just a fraction of them at just a fraction of the cost so you're getting better the cost so you're getting better the cost so you're getting better coverage at a lower cost than if you coverage at a lower cost than if you coverage at a lower cost than if you were to be shopping for your own health were to be shopping for your own health were to be shopping for your own health care plan for care plan for care plan for health vision and dental in the open health vision and dental in the open health vision and dental in the open marketplace on your own marketplace on your own marketplace on your own so working for a company that gives you so working for a company that gives you so working for a company that gives you this health healthcare option this health healthcare option this health healthcare option is a really big deal and for those in is a really big deal and for those in is a really big deal and for those in retirement retirement retirement healthcare costs are one of the biggest healthcare costs are one of the biggest healthcare costs are one of the biggest costs they face costs they face costs they face so having this part-time job really can so having this part-time job really can so having this part-time job really can eliminate a lot of that stress eliminate a lot of that stress eliminate a lot of that stress now while barista fire does indeed have now while barista fire does indeed have now while barista fire does indeed have its perks it is its perks it is its perks it is by no means perfect and there are a by no means perfect and there are a by no means perfect and there are a couple pitfalls couple pitfalls couple pitfalls worth noting number one you're still an worth noting number one you're still an worth noting number one you're still an employee part of the lore of the fire employee part of the lore of the fire employee part of the lore of the fire movement movement movement is the total independence you gain from is the total independence you gain from is the total independence you gain from not having to answer to a boss or to not having to answer to a boss or to not having to answer to a boss or to report into work report into work report into work with barista fire you are still an with barista fire you are still an with barista fire you are still an employee employee employee even if you're a part-time employee you even if you're a part-time employee you even if you're a part-time employee you are still an employee are still an employee are still an employee and you have to answer to a boss and and you have to answer to a boss and and you have to answer to a boss and it's far it's far it's far likely that that boss is going to have likely that that boss is going to have likely that that boss is going to have more say over your schedule than you do more say over your schedule than you do more say over your schedule than you do i'm gonna need you to go ahead and come i'm gonna need you to go ahead and come i'm gonna need you to go ahead and come in tomorrow in tomorrow in tomorrow so if you could be here around so if you could be here around so if you could be here around nine that would be great okay nine that would be great okay nine that would be great okay you might end up working jobs and shifts you might end up working jobs and shifts you might end up working jobs and shifts you don't like you might have to work you don't like you might have to work you don't like you might have to work weekends and holidays weekends and holidays weekends and holidays oh oh and i almost forgot um oh oh and i almost forgot um oh oh and i almost forgot um i'm also gonna need you to go ahead and i'm also gonna need you to go ahead and i'm also gonna need you to go ahead and come in on sunday come in on sunday come in on sunday too in the end you are still an employee too in the end you are still an employee too in the end you are still an employee and you have to answer to a boss and you have to answer to a boss and you have to answer to a boss however if you do have your own side however if you do have your own side however if you do have your own side hustle and your your own boss of your hustle and your your own boss of your hustle and your your own boss of your own side business you are likely to gain own side business you are likely to gain own side business you are likely to gain far greater control of your schedule and far greater control of your schedule and far greater control of your schedule and maybe this really isn't an issue maybe this really isn't an issue maybe this really isn't an issue number two is that you will likely be number two is that you will likely be number two is that you will likely be earning far earning far earning far less than you are used to let's face it less than you are used to let's face it less than you are used to let's face it part-time jobs and seasonal work just part-time jobs and seasonal work just part-time jobs and seasonal work just don't pay all that well don't pay all that well don't pay all that well in fact the average minimum wage in the in fact the average minimum wage in the in fact the average minimum wage in the u.s is just u.s is just u.s is just an hour and if you're part of the fire an hour and if you're part of the fire an hour and if you're part of the fire community chances are you were earning community chances are you were earning community chances are you were earning significantly more than significantly more than significantly more than an hour because at that rate it's just an hour because at that rate it's just an hour because at that rate it's just hard to save a significant portion of hard to save a significant portion of hard to save a significant portion of your income your income your income and taking a drastic pay cut can be a and taking a drastic pay cut can be a and taking a drastic pay cut can be a hard pill to swallow hard pill to swallow hard pill to swallow you might start to question if trading you might start to question if trading you might start to question if trading an hour of your time an hour of your time an hour of your time is actually worth such a low wage it is actually worth such a low wage it is actually worth such a low wage it comes down to a personal choice at that comes down to a personal choice at that comes down to a personal choice at that point point point now of course if you do have your own now of course if you do have your own now of course if you do have your own side gig that you created or perhaps you side gig that you created or perhaps you side gig that you created or perhaps you do consulting work do consulting work do consulting work you may have significantly higher rates you may have significantly higher rates you may have significantly higher rates and at that point this becomes a moot and at that point this becomes a moot and at that point this becomes a moot point point point and of course maybe you can find some and of course maybe you can find some and of course maybe you can find some high paying side hustles it really high paying side hustles it really high paying side hustles it really depends on your qualifications and your depends on your qualifications and your depends on your qualifications and your location location location so this is kind of a situation dependent so this is kind of a situation dependent so this is kind of a situation dependent case and number three if you want to case and number three if you want to case and number three if you want to reach complete financial independence reach complete financial independence reach complete financial independence you will need to save that means from you will need to save that means from you will need to save that means from your side gigs or part-time work you're your side gigs or part-time work you're your side gigs or part-time work you're going to have to earn going to have to earn going to have to earn more than just enough to bridge that gap more than just enough to bridge that gap more than just enough to bridge that gap between your passive income between your passive income between your passive income and your expenses otherwise you're and your expenses otherwise you're and your expenses otherwise you're forever forever forever going to need to be tied to this going to need to be tied to this going to need to be tied to this part-time job or working side hustles part-time job or working side hustles part-time job or working side hustles and you will never actually be and you will never actually be and you will never actually be financially independent financially independent financially independent and that kind of defeats the purpose of and that kind of defeats the purpose of and that kind of defeats the purpose of it all so it all so it all so what do you guys think of barista fire what do you guys think of barista fire what do you guys think of barista fire is it something you've heard of before is it something you've heard of before is it something you've heard of before is it something you're willing to try do is it something you're willing to try do is it something you're willing to try do you know anyone that's done it you know anyone that's done it you know anyone that's done it does it make sense to go from one really does it make sense to go from one really does it make sense to go from one really high stress high stress high stress job into some low stress job into some low stress job into some low stress part-time work let me know your thoughts part-time work let me know your thoughts part-time work let me know your thoughts down below i'm actually really curious down below i'm actually really curious down below i'm actually really curious i post new videos every monday and i post new videos every monday and i post new videos every monday and thursday thursday thursday please make sure to hit that like button please make sure to hit that like button please make sure to hit that like button on your way out if you have a friend who on your way out if you have a friend who on your way out if you have a friend who would enjoy these videos please send would enjoy these videos please send would enjoy these videos please send them along them along them along if you are new ring that subscribe bell if you are new ring that subscribe bell if you are new ring that subscribe bell i love to have i love to have i love to have new people here and i will see you guys new people here and i will see you guys new people here and i will see you guys very soon bye bye bye you WEBVTT Kind: captions Language: en if you've been wondering which index if you've been wondering which index if you've been wondering which index fund is the best for fund is the best for fund is the best for growth and simplicity then stick around growth and simplicity then stick around growth and simplicity then stick around to the end of the video because i'm to the end of the video because i'm to the end of the video because i'm going to share going to share going to share my opinion on which fund i actually my opinion on which fund i actually my opinion on which fund i actually invest in invest in invest in this fund is talked a lot about in the this fund is talked a lot about in the this fund is talked a lot about in the fire community financial independence fire community financial independence fire community financial independence retire early retire early retire early but i feel like a lot of people don't but i feel like a lot of people don't but i feel like a lot of people don't really understand exactly what they're really understand exactly what they're really understand exactly what they're investing in investing in investing in when they invest in this index fund and when they invest in this index fund and when they invest in this index fund and we should know we should know we should know what we're investing in and why we are what we're investing in and why we are what we're investing in and why we are investing in it i investing in it i investing in it i am tiffany thomas with am tiffany thomas with am tiffany thomas with wealthytiffany.com and i have invested wealthytiffany.com and i have invested wealthytiffany.com and i have invested in in in this certain index fund plus real estate this certain index fund plus real estate this certain index fund plus real estate to help me become to help me become to help me become financially free at age . so before we financially free at age . so before we financially free at age . so before we dive in put in the comments if you can dive in put in the comments if you can dive in put in the comments if you can guess guess guess which index fund you think i'm going to which index fund you think i'm going to which index fund you think i'm going to mention and don't forget to hit the mention and don't forget to hit the mention and don't forget to hit the like button and the subscribe button all like button and the subscribe button all like button and the subscribe button all right my choice for the best index fund right my choice for the best index fund right my choice for the best index fund overall overall overall for growth and simplicity is the for growth and simplicity is the for growth and simplicity is the vanguard total stock market index fund vanguard total stock market index fund vanguard total stock market index fund and i'm going to share the main reasons and i'm going to share the main reasons and i'm going to share the main reasons why i've chosen this fund why i've chosen this fund why i've chosen this fund and why i haven't chosen some of the and why i haven't chosen some of the and why i haven't chosen some of the other funds other funds other funds the first reason is because it's very the first reason is because it's very the first reason is because it's very easy to easy to easy to invest in this fund you can set it and invest in this fund you can set it and invest in this fund you can set it and forget it pretty much forget it pretty much forget it pretty much and if you don't know what an index fund and if you don't know what an index fund and if you don't know what an index fund is it essentially tracks is it essentially tracks is it essentially tracks something else so the vanguard total something else so the vanguard total something else so the vanguard total stock market index fund stock market index fund stock market index fund is tracking the total stock market is tracking the total stock market is tracking the total stock market essentially there are about essentially there are about essentially there are about stocks inside of this one fund so when stocks inside of this one fund so when stocks inside of this one fund so when you purchase you purchase you purchase one share of the total stock market one share of the total stock market one share of the total stock market index fund index fund index fund you're purchasing over stocks you're purchasing over stocks you're purchasing over stocks but the catch is you're not purchasing but the catch is you're not purchasing but the catch is you're not purchasing one share one share one share of each individual stock when you invest of each individual stock when you invest of each individual stock when you invest in the in the in the vanguard total stock market index fund vanguard total stock market index fund vanguard total stock market index fund and i'm going to abbreviate it and i'm going to abbreviate it and i'm going to abbreviate it vt sax because that is the ticker symbol vt sax because that is the ticker symbol vt sax because that is the ticker symbol for for for this index fund so when you're investing this index fund so when you're investing this index fund so when you're investing in vt sax in vt sax in vt sax you are essentially investing in the you are essentially investing in the you are essentially investing in the total stock market total stock market total stock market but you're not investing equally for but you're not investing equally for but you're not investing equally for each each each stock that is in the index fund stock that is in the index fund stock that is in the index fund so let me show you what i'm talking so let me show you what i'm talking so let me show you what i'm talking about i went to about i went to about i went to vanguard's website and pulled up the vanguard's website and pulled up the vanguard's website and pulled up the total stock market index fund total stock market index fund total stock market index fund and if you scroll to the very bottom you and if you scroll to the very bottom you and if you scroll to the very bottom you can see exactly can see exactly can see exactly which stocks are being held within the which stocks are being held within the which stocks are being held within the fund fund fund and you can see that they are weighted and you can see that they are weighted and you can see that they are weighted for for for each sector that they're invested in so each sector that they're invested in so each sector that they're invested in so you can see over here on the left you can see over here on the left you can see over here on the left all of these different sectors and the all of these different sectors and the all of these different sectors and the highest one is the highest one is the highest one is the technology sector is . percent technology sector is . percent technology sector is . percent of this index fund and you can see the of this index fund and you can see the of this index fund and you can see the top holdings inside the index fund so top holdings inside the index fund so top holdings inside the index fund so you have you have you have apple microsoft amazon alphabet which is apple microsoft amazon alphabet which is apple microsoft amazon alphabet which is google google google facebook and so on and it's facebook and so on and it's facebook and so on and it's weighted so you actually are not weighted so you actually are not weighted so you actually are not investing investing investing equally in each stock this means that equally in each stock this means that equally in each stock this means that the s p index fund that you could the s p index fund that you could the s p index fund that you could also invest in also invest in also invest in is very similar to this total stock is very similar to this total stock is very similar to this total stock market fund market fund market fund because of the way it is weighted and i because of the way it is weighted and i because of the way it is weighted and i went ahead and pulled up the went ahead and pulled up the went ahead and pulled up the vanguard index fund so it tracks the vanguard index fund so it tracks the vanguard index fund so it tracks the s p and if you scroll to the bottom s p and if you scroll to the bottom s p and if you scroll to the bottom again again again you can see that this one also has you can see that this one also has you can see that this one also has . percent invested in the . percent invested in the . percent invested in the information technology sector and you information technology sector and you information technology sector and you can see the can see the can see the top holdings apple microsoft amazon top holdings apple microsoft amazon top holdings apple microsoft amazon alphabet which is google alphabet which is google alphabet which is google facebook and then so on so it's going to facebook and then so on so it's going to facebook and then so on so it's going to have a have a have a very similar return as the very similar return as the very similar return as the vanguard total stock market index fund vanguard total stock market index fund vanguard total stock market index fund so so so when investing in a total stock market when investing in a total stock market when investing in a total stock market index fund index fund index fund don't make the mistake of thinking that don't make the mistake of thinking that don't make the mistake of thinking that you have a fully diversified mix of you have a fully diversified mix of you have a fully diversified mix of large cap stocks mid cap stocks and large cap stocks mid cap stocks and large cap stocks mid cap stocks and small cap stocks in one fund small cap stocks in one fund small cap stocks in one fund since these funds are cap weighted which since these funds are cap weighted which since these funds are cap weighted which i just showed you i just showed you i just showed you a large percentage of the holdings are a large percentage of the holdings are a large percentage of the holdings are large cap stocks large cap stocks large cap stocks making the performance similar to an s p making the performance similar to an s p making the performance similar to an s p index fund index fund index fund i know a lot of people like to invest in i know a lot of people like to invest in i know a lot of people like to invest in the s p the s p the s p index fund and that is totally fine index fund and that is totally fine index fund and that is totally fine i just like having that i just like having that i just like having that a little bit more diversification with a little bit more diversification with a little bit more diversification with the the the vanguard total stock market index fund vanguard total stock market index fund vanguard total stock market index fund but i just wanted to but i just wanted to but i just wanted to point out that the s p index fund is point out that the s p index fund is point out that the s p index fund is still still still a good investment and you'll get really a good investment and you'll get really a good investment and you'll get really close returns close returns close returns to the total stock market index fund to the total stock market index fund to the total stock market index fund all right another reason that i love all right another reason that i love all right another reason that i love this fund is because it has a really low this fund is because it has a really low this fund is because it has a really low expense ratio expense ratio expense ratio and i have done a video before about how and i have done a video before about how and i have done a video before about how much much much fees are really costing you so check fees are really costing you so check fees are really costing you so check that video out i will leave a that video out i will leave a that video out i will leave a link above and below in the description link above and below in the description link above and below in the description so you can really understand so you can really understand so you can really understand how much you're really paying in fees how much you're really paying in fees how much you're really paying in fees and why you want to keep them and why you want to keep them and why you want to keep them as low as possible especially our as low as possible especially our as low as possible especially our expense ratios expense ratios expense ratios so with the vanguard total stock market so with the vanguard total stock market so with the vanguard total stock market index fund it only has an index fund it only has an index fund it only has an expense ratio of . expense ratio of . expense ratio of . which is super super low and if you're which is super super low and if you're which is super super low and if you're thinking oh thinking oh thinking oh tiffany i have heard that fidelity has tiffany i have heard that fidelity has tiffany i have heard that fidelity has zero percent expense ratios for some of zero percent expense ratios for some of zero percent expense ratios for some of their index funds their index funds their index funds you are correct but this brings us to you are correct but this brings us to you are correct but this brings us to the next couple of points the next couple of points the next couple of points we also want to keep our investments tax we also want to keep our investments tax we also want to keep our investments tax efficient especially efficient especially efficient especially if we are investing in a brokerage if we are investing in a brokerage if we are investing in a brokerage account where we will have to pay taxes account where we will have to pay taxes account where we will have to pay taxes when when when certain investments are sold vanguard's certain investments are sold vanguard's certain investments are sold vanguard's funds funds funds have been so much more tax efficient have been so much more tax efficient have been so much more tax efficient that they completely that they completely that they completely wipe out the expense ratio savings of wipe out the expense ratio savings of wipe out the expense ratio savings of fidelity fidelity fidelity for their zero percent expense ratios for their zero percent expense ratios for their zero percent expense ratios and here is and here is and here is some quick math to show how much the some quick math to show how much the some quick math to show how much the added taxes added taxes added taxes skew the true expense ratio of skew the true expense ratio of skew the true expense ratio of fidelity's fidelity's fidelity's zero funds the zero funds distributed zero funds the zero funds distributed zero funds the zero funds distributed cents per cents per cents per share of capital gains last year share of capital gains last year share of capital gains last year vanguard distributed zero since the year vanguard distributed zero since the year vanguard distributed zero since the year . so you can see . so you can see . so you can see how tax efficient vanguard really is and how tax efficient vanguard really is and how tax efficient vanguard really is and say you have say you have say you have to invest and the average share to invest and the average share to invest and the average share price was last year price was last year price was last year you'd own . shares you'd own . shares you'd own . shares meaning you'd receive . meaning you'd receive . meaning you'd receive . of capital gains distributions all else of capital gains distributions all else of capital gains distributions all else being equal you'd owe taxes on those being equal you'd owe taxes on those being equal you'd owe taxes on those distributions distributions distributions at your capital gains tax rate which at your capital gains tax rate which at your capital gains tax rate which would be would be would be for the majority of people that's . for the majority of people that's . for the majority of people that's . of capital gains taxes owed of capital gains taxes owed of capital gains taxes owed relative to your investment relative to your investment relative to your investment that's a that's a that's a . percent in other words fidelity's . percent in other words fidelity's . percent in other words fidelity's true expense ratio is about . true expense ratio is about . true expense ratio is about . compared to vanguard's . compared to vanguard's . compared to vanguard's . and if that was at all confusing just and if that was at all confusing just and if that was at all confusing just realize that realize that realize that you need to have tax efficient you need to have tax efficient you need to have tax efficient investments investments investments and when something is sold so when they and when something is sold so when they and when something is sold so when they switch out a certain switch out a certain switch out a certain stock from that index fund then you're stock from that index fund then you're stock from that index fund then you're going to pay going to pay going to pay a capital gains tax on that a capital gains tax on that a capital gains tax on that investment that was sold so you want to investment that was sold so you want to investment that was sold so you want to be paying be paying be paying the least amount in taxes but since it the least amount in taxes but since it the least amount in taxes but since it looks like fidelity has you paying looks like fidelity has you paying looks like fidelity has you paying more in taxes it averages out that more in taxes it averages out that more in taxes it averages out that essentially you're paying a point zero essentially you're paying a point zero essentially you're paying a point zero seven percent seven percent seven percent expense ratio versus vanguards point expense ratio versus vanguards point expense ratio versus vanguards point zero four percent zero four percent zero four percent so in essence it's not really a zero so in essence it's not really a zero so in essence it's not really a zero percent percent percent index fund when you're comparing it to index fund when you're comparing it to index fund when you're comparing it to vanguard's fund with a vanguard's fund with a vanguard's fund with a . percent and zero dollars in that . percent and zero dollars in that . percent and zero dollars in that capital gains capital gains capital gains tax and i understand if you are holding tax and i understand if you are holding tax and i understand if you are holding your investments in your investments in your investments in a retirement account like an ira or a a retirement account like an ira or a a retirement account like an ira or a k k k then you're not going to continue to pay then you're not going to continue to pay then you're not going to continue to pay that capital gains that capital gains that capital gains tax because your taxes are deferred tax because your taxes are deferred tax because your taxes are deferred depending on depending on depending on which retirement account you're invested which retirement account you're invested which retirement account you're invested in or you've already paid taxes in or you've already paid taxes in or you've already paid taxes on that money but for those of us who on that money but for those of us who on that money but for those of us who are investing in are investing in are investing in a simple brokerage account we are going a simple brokerage account we are going a simple brokerage account we are going to pay to pay to pay taxes on any of those cells and another taxes on any of those cells and another taxes on any of those cells and another point that i want to bring up point that i want to bring up point that i want to bring up is that vanguard has been in business is that vanguard has been in business is that vanguard has been in business for a for a for a really long time so they are a very really long time so they are a very really long time so they are a very stable company stable company stable company john vogel founded vanguard in john vogel founded vanguard in john vogel founded vanguard in with a unique ownership structure rather with a unique ownership structure rather with a unique ownership structure rather than being publicly owned or being owned than being publicly owned or being owned than being publicly owned or being owned by a small group of partners by a small group of partners by a small group of partners the company was owned by its mutual the company was owned by its mutual the company was owned by its mutual funds which in turn funds which in turn funds which in turn were owned by the people purchasing were owned by the people purchasing were owned by the people purchasing shares in those mutual funds shares in those mutual funds shares in those mutual funds which is you that ownership structure which is you that ownership structure which is you that ownership structure was purposely was purposely was purposely chosen so that business profits could be chosen so that business profits could be chosen so that business profits could be passed on to regular passed on to regular passed on to regular investors like us in the form of lower investors like us in the form of lower investors like us in the form of lower fees fees fees rather than going to third party rather than going to third party rather than going to third party shareholders so you can see shareholders so you can see shareholders so you can see that vanguard has the structure set up that vanguard has the structure set up that vanguard has the structure set up that they are not incentivized that they are not incentivized that they are not incentivized to raise their fees to raise their to raise their fees to raise their to raise their fees to raise their expense ratios expense ratios expense ratios and since fidelity is not set up like and since fidelity is not set up like and since fidelity is not set up like vanguard they don't have that same vanguard they don't have that same vanguard they don't have that same ownership structure they could increase ownership structure they could increase ownership structure they could increase that expense ratio from zero to whatever that expense ratio from zero to whatever that expense ratio from zero to whatever they wanted to they wanted to they wanted to because that's how fidelity is set up because that's how fidelity is set up because that's how fidelity is set up they want to they want to they want to make more money and they do that by make more money and they do that by make more money and they do that by increasing their fees increasing their increasing their fees increasing their increasing their fees increasing their expense ratios and i'm not saying that expense ratios and i'm not saying that expense ratios and i'm not saying that is going to happen is going to happen is going to happen i'm just saying it could happen so i i'm just saying it could happen so i i'm just saying it could happen so i prefer to prefer to prefer to stick with vanguard because they are stick with vanguard because they are stick with vanguard because they are really focused on their customers on really focused on their customers on really focused on their customers on you the next reason and i feel like this you the next reason and i feel like this you the next reason and i feel like this one is one is one is a really important reason for most a really important reason for most a really important reason for most people and it should be it is people and it should be it is people and it should be it is performance and the vanguard total stock performance and the vanguard total stock performance and the vanguard total stock market index fund has a really great market index fund has a really great market index fund has a really great performance rate so i pulled up the performance rate so i pulled up the performance rate so i pulled up the vanguard total stock market index fund vanguard total stock market index fund vanguard total stock market index fund again again again and we're going to click on price and and we're going to click on price and and we're going to click on price and performance performance performance and then we are going to scroll down and and then we are going to scroll down and and then we are going to scroll down and we can see we can see we can see what the performance has been for the what the performance has been for the what the performance has been for the past past past years so you can see that the years so you can see that the years so you can see that the one-year performance one-year performance one-year performance was . their three-year performance was . their three-year performance was . their three-year performance was . was . was . five-year is six eight percent five-year is six eight percent five-year is six eight percent and then ten-year is thirteen point four and then ten-year is thirteen point four and then ten-year is thirteen point four eight percent eight percent eight percent and you can see since it was started and you can see since it was started and you can see since it was started it's been seven point one eight percent it's been seven point one eight percent it's been seven point one eight percent so these are really good returns for so these are really good returns for so these are really good returns for this index fund this index fund this index fund because it is so simple to invest in you because it is so simple to invest in you because it is so simple to invest in you definitely won't see these returns by definitely won't see these returns by definitely won't see these returns by leaving your money in a leaving your money in a leaving your money in a savings account you get to invest in one savings account you get to invest in one savings account you get to invest in one fund and have fund and have fund and have access to a whole bunch of different access to a whole bunch of different access to a whole bunch of different stocks stocks stocks and you can just continue to invest in and you can just continue to invest in and you can just continue to invest in it over time it over time it over time and you can also automate this vanguard and you can also automate this vanguard and you can also automate this vanguard has it set up so you can do has it set up so you can do has it set up so you can do auto transfers if you wanted to transfer auto transfers if you wanted to transfer auto transfers if you wanted to transfer directly from your checking or your directly from your checking or your directly from your checking or your savings account savings account savings account or even from your paycheck if your or even from your paycheck if your or even from your paycheck if your employer allows it employer allows it employer allows it then you can just do an automatic then you can just do an automatic then you can just do an automatic transfer and have it go directly into transfer and have it go directly into transfer and have it go directly into vtsax which i think is really smart vtsax which i think is really smart vtsax which i think is really smart because if people are transferring their because if people are transferring their because if people are transferring their money to money to money to their retirement account or their their retirement account or their their retirement account or their brokerage account brokerage account brokerage account sometimes they forget to actually put sometimes they forget to actually put sometimes they forget to actually put that money into that money into that money into an investment and it just sits there an investment and it just sits there an investment and it just sits there in their settlement fund account which in their settlement fund account which in their settlement fund account which is earning is earning is earning probably maybe zero percent or barely probably maybe zero percent or barely probably maybe zero percent or barely above zero percent above zero percent above zero percent but with the vanguard total stock market but with the vanguard total stock market but with the vanguard total stock market index fund you can just do an auto index fund you can just do an auto index fund you can just do an auto transfer transfer transfer directly into that fund whether it's in directly into that fund whether it's in directly into that fund whether it's in your retirement account or your your retirement account or your your retirement account or your brokerage account brokerage account brokerage account so it makes it really really simple to so it makes it really really simple to so it makes it really really simple to invest your money invest your money invest your money and you don't have to worry about one and you don't have to worry about one and you don't have to worry about one stock tanking and losing stock tanking and losing stock tanking and losing all of your investments because there's all of your investments because there's all of your investments because there's about stocks about stocks about stocks that you are invested in and of course that you are invested in and of course that you are invested in and of course it is risky because it is it is risky because it is it is risky because it is all in stocks so it's going to go up and all in stocks so it's going to go up and all in stocks so it's going to go up and down over time down over time down over time but as i've talked about before the but as i've talked about before the but as i've talked about before the stock market continues to rise over time stock market continues to rise over time stock market continues to rise over time so it'll go up and down up and down up so it'll go up and down up and down up so it'll go up and down up and down up and down but and down but and down but it'll go further up over time another it'll go further up over time another it'll go further up over time another great reason that i great reason that i great reason that i like this fund is yes you have to have like this fund is yes you have to have like this fund is yes you have to have three thousand dollars to get started three thousand dollars to get started three thousand dollars to get started investing in this fund but there is an investing in this fund but there is an investing in this fund but there is an etf etf etf version and exchange traded fund version version and exchange traded fund version version and exchange traded fund version of this index fund so you can get of this index fund so you can get of this index fund so you can get started started started investing in this fund the etf version investing in this fund the etf version investing in this fund the etf version of it of it of it for about dollars which is just for about dollars which is just for about dollars which is just one share of the vanguard total stock one share of the vanguard total stock one share of the vanguard total stock market etf market etf market etf and if you wanted to once you have three and if you wanted to once you have three and if you wanted to once you have three thousand dollars already invested thousand dollars already invested thousand dollars already invested you could switch that over to vt sax you could switch that over to vt sax you could switch that over to vt sax and then set up your auto transfers the and then set up your auto transfers the and then set up your auto transfers the downside of investing in an etf is downside of investing in an etf is downside of investing in an etf is they do not allow auto transfers but it they do not allow auto transfers but it they do not allow auto transfers but it doesn't mean that you can't doesn't mean that you can't doesn't mean that you can't log into your account and make the log into your account and make the log into your account and make the transfer yourself transfer yourself transfer yourself and just as a side note i was doing a and just as a side note i was doing a and just as a side note i was doing a lot of research to lot of research to lot of research to figure out if this really was the best figure out if this really was the best figure out if this really was the best investment so investment so investment so i looked at quite a few different funds i looked at quite a few different funds i looked at quite a few different funds and i looked at the and i looked at the and i looked at the return over the years and what their return over the years and what their return over the years and what their expense ratio was expense ratio was expense ratio was because some funds seem to have a really because some funds seem to have a really because some funds seem to have a really high return high return high return but they also have that high expense but they also have that high expense but they also have that high expense ratio associated with them ratio associated with them ratio associated with them so you really want to be careful when so you really want to be careful when so you really want to be careful when you are comparing different funds you are comparing different funds you are comparing different funds make sure you are comparing that expense make sure you are comparing that expense make sure you are comparing that expense ratio ratio ratio with the performance of the fund and i with the performance of the fund and i with the performance of the fund and i thought i had found a fund that thought i had found a fund that thought i had found a fund that could be better but it's really hard to could be better but it's really hard to could be better but it's really hard to to determine that because it's just to determine that because it's just to determine that because it's just based on past performance but you don't based on past performance but you don't based on past performance but you don't really know what's going to happen in really know what's going to happen in really know what's going to happen in the future the future the future you think it will be similar but it may you think it will be similar but it may you think it will be similar but it may not be not be not be so i personally like sticking with a so i personally like sticking with a so i personally like sticking with a fund that still gets really good returns fund that still gets really good returns fund that still gets really good returns and and and has a really low expense ratio i feel has a really low expense ratio i feel has a really low expense ratio i feel like that like that like that is a win-win and even if i do miss out is a win-win and even if i do miss out is a win-win and even if i do miss out on a little bit on a little bit on a little bit extra return with a fund that has extra return with a fund that has extra return with a fund that has a higher expense ratio with a higher a higher expense ratio with a higher a higher expense ratio with a higher performance performance performance i'm okay with that because i know over i'm okay with that because i know over i'm okay with that because i know over time time time the total stock market will continue to the total stock market will continue to the total stock market will continue to rise rise rise and by investing in this vanguard total and by investing in this vanguard total and by investing in this vanguard total stock market index fund stock market index fund stock market index fund i know that my investments will continue i know that my investments will continue i know that my investments will continue to rise and i can keep my to rise and i can keep my to rise and i can keep my expenses really low that expense ratio expenses really low that expense ratio expenses really low that expense ratio really low really low really low but i still feel like i'm getting enough but i still feel like i'm getting enough but i still feel like i'm getting enough reward with my risk reward with my risk reward with my risk because i keep that risk low by having a because i keep that risk low by having a because i keep that risk low by having a really low expense ratio really low expense ratio really low expense ratio and can still get the reward that higher and can still get the reward that higher and can still get the reward that higher return return return tell me in the comments below what your tell me in the comments below what your tell me in the comments below what your favorite index fund is favorite index fund is favorite index fund is and if you found this video helpful and if you found this video helpful and if you found this video helpful please hit that like button and please hit that like button and please hit that like button and share it with someone else who would share it with someone else who would share it with someone else who would like to hear this information and don't like to hear this information and don't like to hear this information and don't forget to hit the subscribe button to forget to hit the subscribe button to forget to hit the subscribe button to subscribe to my youtube channel and subscribe to my youtube channel and subscribe to my youtube channel and don't forget to hit the little bell to don't forget to hit the little bell to don't forget to hit the little bell to get notified get notified get notified when i post new videos thanks so much when i post new videos thanks so much when i post new videos thanks so much for watching i'll see you in the next for watching i'll see you in the next for watching i'll see you in the next video WEBVTT Kind: captions Language: en hey guys it's a mom and Christina from a hey guys it's a mom and Christina from a hey guys it's a mom and Christina from a d'origine time to get your side hustle d'origine time to get your side hustle d'origine time to get your side hustle on all right we'd love to do side on all right we'd love to do side on all right we'd love to do side hustles we know that we know that it's hustles we know that we know that it's hustles we know that we know that it's the key to financial independence it's the key to financial independence it's the key to financial independence it's one of the things that we supplement the one of the things that we supplement the one of the things that we supplement the growth of our income so on today's show growth of our income so on today's show growth of our income so on today's show we're gonna go over five Tsai hustles we're gonna go over five Tsai hustles we're gonna go over five Tsai hustles that you can start right now the first that you can start right now the first that you can start right now the first place is called urban sitter comm and place is called urban sitter comm and place is called urban sitter comm and it's a place that matches people that it's a place that matches people that it's a place that matches people that need caregivers for their children and need caregivers for their children and need caregivers for their children and people that want to provide that care people that want to provide that care people that want to provide that care you can sign up as a babysitter or as a you can sign up as a babysitter or as a you can sign up as a babysitter or as a nanny and it basically uses social nanny and it basically uses social nanny and it basically uses social networking connections in order to place networking connections in order to place networking connections in order to place you with the right home and when I say you with the right home and when I say you with the right home and when I say social network connections I mean that social network connections I mean that social network connections I mean that you're gonna see how you're connected you're gonna see how you're connected you're gonna see how you're connected through families and through other through families and through other through families and through other sitters so it's not like your Facebook sitters so it's not like your Facebook sitters so it's not like your Facebook social media connections it's like the social media connections it's like the social media connections it's like the families that you babysat and the families that you babysat and the families that you babysat and the connections that the people that you connections that the people that you connections that the people that you babysat have had with other families so babysat have had with other families so babysat have had with other families so if you're a really good babysitter you if you're a really good babysitter you if you're a really good babysitter you can make up to a thousand dollars a week can make up to a thousand dollars a week can make up to a thousand dollars a week doing this side hustle and it's free to doing this side hustle and it's free to doing this side hustle and it's free to sign up for sitters and nannies and it's sign up for sitters and nannies and it's sign up for sitters and nannies and it's free to use for sitters and nannies also free to use for sitters and nannies also free to use for sitters and nannies also and this is how it works you sign up you and this is how it works you sign up you and this is how it works you sign up you make a free profile you explain your make a free profile you explain your make a free profile you explain your childhood care experience where you want childhood care experience where you want childhood care experience where you want to work your schedule your hourly rate to work your schedule your hourly rate to work your schedule your hourly rate things like that and then you start things like that and then you start things like that and then you start browsing the job board and you apply for browsing the job board and you apply for browsing the job board and you apply for positions and what's great about urban positions and what's great about urban positions and what's great about urban sitter comm is that when you apply for sitter comm is that when you apply for sitter comm is that when you apply for the position and you get accepted you the position and you get accepted you the position and you get accepted you get a hundred percent of the payment the get a hundred percent of the payment the get a hundred percent of the payment the site doesn't take any cut from you site doesn't take any cut from you site doesn't take any cut from you number two is Facebook marketplace now I number two is Facebook marketplace now I number two is Facebook marketplace now I like this concept because it feels safer like this concept because it feels safer like this concept because it feels safer when I sale things I've sold things when I sale things I've sold things when I sale things I've sold things before on Facebook and it's nice to know before on Facebook and it's nice to know before on Facebook and it's nice to know who you're selling things to like you're who you're selling things to like you're who you're selling things to like you're not gonna walk into a dark alley and not gonna walk into a dark alley and not gonna walk into a dark alley and someone's gonna hit you over your head someone's gonna hit you over your head someone's gonna hit you over your head you can communicate with this person you you can communicate with this person you you can communicate with this person you can check their profile if they have can check their profile if they have can check their profile if they have things public so it's a really safe way things public so it's a really safe way things public so it's a really safe way to kind of sell your items and this is to kind of sell your items and this is to kind of sell your items and this is how it works you click on the how it works you click on the how it works you click on the marketplace icon in Facebook and then marketplace icon in Facebook and then marketplace icon in Facebook and then you tap sell something you take photos you tap sell something you take photos you tap sell something you take photos of your item you may of your item you may of your item you may description of it and then you set your description of it and then you set your description of it and then you set your price you also confirm your location but price you also confirm your location but price you also confirm your location but you don't have to worry because Facebook you don't have to worry because Facebook you don't have to worry because Facebook is not going to share your exact address is not going to share your exact address is not going to share your exact address only a rough location of where you're only a rough location of where you're only a rough location of where you're located and then you also select a located and then you also select a located and then you also select a category for the item that you're category for the item that you're category for the item that you're selling so you can list anything on the selling so you can list anything on the selling so you can list anything on the Facebook marketplace you can list TVs Facebook marketplace you can list TVs Facebook marketplace you can list TVs baby clothes cars real estate you can baby clothes cars real estate you can baby clothes cars real estate you can list virtually anything and you know list virtually anything and you know list virtually anything and you know what we use the system when we were what we use the system when we were what we use the system when we were minimalizing and downsizing in fact we minimalizing and downsizing in fact we minimalizing and downsizing in fact we sold I think three televisions on the sold I think three televisions on the sold I think three televisions on the Facebook marketplace what was Facebook marketplace what was Facebook marketplace what was interesting is that one of the buyers interesting is that one of the buyers interesting is that one of the buyers was someone that we knew so it was was someone that we knew so it was was someone that we knew so it was really great now like we said the pro is really great now like we said the pro is really great now like we said the pro is that you get to see who you're selling that you get to see who you're selling that you get to see who you're selling it to before you make the exchange so it it to before you make the exchange so it it to before you make the exchange so it feels a bit safer one of the cons though feels a bit safer one of the cons though feels a bit safer one of the cons though is that Facebook is not involved in the is that Facebook is not involved in the is that Facebook is not involved in the payment or the delivery of the item so payment or the delivery of the item so payment or the delivery of the item so you just have to be careful who you're you just have to be careful who you're you just have to be careful who you're delivering it to making sure you get delivering it to making sure you get delivering it to making sure you get full payment for the item the third side full payment for the item the third side full payment for the item the third side hustle is getting an advertisement hustle is getting an advertisement hustle is getting an advertisement placed on your car now we identified placed on your car now we identified placed on your car now we identified this site called Rapa calm where you this site called Rapa calm where you this site called Rapa calm where you can get an ad place on your car and you can get an ad place on your car and you can get an ad place on your car and you can get paid up to four hundred and can get paid up to four hundred and can get paid up to four hundred and fifty two dollars a month for having the fifty two dollars a month for having the fifty two dollars a month for having the ad on your car let's explain how this ad on your car let's explain how this ad on your car let's explain how this works so first you download the Rapa Phi works so first you download the Rapa Phi works so first you download the Rapa Phi app and then they track your driving app and then they track your driving app and then they track your driving pattern over a -mile period once you pattern over a -mile period once you pattern over a -mile period once you hit miles then you're eligible for hit miles then you're eligible for hit miles then you're eligible for ads which they call campaigns and ads which they call campaigns and ads which they call campaigns and campaigns last one to twelve months campaigns last one to twelve months campaigns last one to twelve months which means that the ad will be placed which means that the ad will be placed which means that the ad will be placed on your car for one to twelve months so on your car for one to twelve months so on your car for one to twelve months so once you've been selected for a campaign once you've been selected for a campaign once you've been selected for a campaign you set up an appointment you take your you set up an appointment you take your you set up an appointment you take your car in and your car is wrapped in the ad car in and your car is wrapped in the ad car in and your car is wrapped in the ad but what's really cool is that while but what's really cool is that while but what's really cool is that while your car is out of commission your car is out of commission your car is out of commission they'll pay for you to use uber and lyft they'll pay for you to use uber and lyft they'll pay for you to use uber and lyft your car is wrapped for one day so your car is wrapped for one day so your car is wrapped for one day so basically your car is out of commission basically your car is out of commission basically your car is out of commission just for a day and then once it's done just for a day and then once it's done just for a day and then once it's done you pick up your car and you drive it you pick up your car and you drive it you pick up your car and you drive it like your normal driving routine and you like your normal driving routine and you like your normal driving routine and you get paid for it so let's talk about the get paid for it so let's talk about the get paid for it so let's talk about the costs of what you exactly you get paid costs of what you exactly you get paid costs of what you exactly you get paid for each ad now you have three different for each ad now you have three different for each ad now you have three different options for ads you can either do a options for ads you can either do a options for ads you can either do a panel a partial or a full ad on your car panel a partial or a full ad on your car panel a partial or a full ad on your car for a panel ad you get paid to $ for a panel ad you get paid to $ for a panel ad you get paid to $ a month for a partial ad you get paid a month for a partial ad you get paid a month for a partial ad you get paid to dollars a month and for a to dollars a month and for a to dollars a month and for a full ad you get paid two hundred and full ad you get paid two hundred and full ad you get paid two hundred and sixty four to four hundred and fifty two sixty four to four hundred and fifty two sixty four to four hundred and fifty two dollars a month four hundred and dollars a month four hundred and dollars a month four hundred and fifty-two dollars a month fifty-two dollars a month fifty-two dollars a month give me the fool I mean what why would give me the fool I mean what why would give me the fool I mean what why would anyone do anything less than the bull to anyone do anything less than the bull to anyone do anything less than the bull to be eligible to have a campaign place on be eligible to have a campaign place on be eligible to have a campaign place on your car you have to be years or your car you have to be years or your car you have to be years or older you have to have a clean driving older you have to have a clean driving older you have to have a clean driving record and a clean criminal record and record and a clean criminal record and record and a clean criminal record and your car has to be or newer so this your car has to be or newer so this your car has to be or newer so this is a side hustle but it's also kind of a is a side hustle but it's also kind of a is a side hustle but it's also kind of a form of passive income if you're already form of passive income if you're already form of passive income if you're already using your car and you're doing these using your car and you're doing these using your car and you're doing these routes anyway on your way to work or routes anyway on your way to work or routes anyway on your way to work or errands around town you might as well errands around town you might as well errands around town you might as well get paid for it the fourth side hustle get paid for it the fourth side hustle get paid for it the fourth side hustle is a site called declutter calm now is a site called declutter calm now is a site called declutter calm now declutter buys all of your tech items declutter buys all of your tech items declutter buys all of your tech items but then it also will buy things like but then it also will buy things like but then it also will buy things like books CDs DVDs cellphones and things books CDs DVDs cellphones and things books CDs DVDs cellphones and things like that the great thing about this like that the great thing about this like that the great thing about this site is that you can put your item site is that you can put your item site is that you can put your item online there and they buy it directly online there and they buy it directly online there and they buy it directly immediately from you they tell you immediately from you they tell you immediately from you they tell you exactly how much they'll pay and then exactly how much they'll pay and then exactly how much they'll pay and then you can either accept it or reject it you can either accept it or reject it you can either accept it or reject it and this is how it works you select the and this is how it works you select the and this is how it works you select the item that you want to sell you put down item that you want to sell you put down item that you want to sell you put down the make the model in the condition of the make the model in the condition of the make the model in the condition of your item or your tech device and then your item or your tech device and then your item or your tech device and then decluttered comm will give you an decluttered comm will give you an decluttered comm will give you an instant price if you're selling a CD DVD instant price if you're selling a CD DVD instant price if you're selling a CD DVD or game or something like that you just or game or something like that you just or game or something like that you just enter the barcode and then they'll give enter the barcode and then they'll give enter the barcode and then they'll give you an instant price on that also you an instant price on that also you an instant price on that also so once you've accepted their price so once you've accepted their price so once you've accepted their price you'll receive a label that you can you'll receive a label that you can you'll receive a label that you can package your item with once you ship it package your item with once you ship it package your item with once you ship it to the decluttr comm they will pay you to the decluttr comm they will pay you to the decluttr comm they will pay you instantly so shipping is free and when instantly so shipping is free and when instantly so shipping is free and when you get paid you get paid directly you get paid you get paid directly you get paid you get paid directly either by check by direct deposit or by either by check by direct deposit or by either by check by direct deposit or by paypal and the fifth side hustle is paypal and the fifth side hustle is paypal and the fifth side hustle is called MTurk now MTurk is affiliated called MTurk now MTurk is affiliated called MTurk now MTurk is affiliated with Amazon and is promoted by Amazon with Amazon and is promoted by Amazon with Amazon and is promoted by Amazon and what it is is that a requester asked and what it is is that a requester asked and what it is is that a requester asked for certain tests and you can sign up to for certain tests and you can sign up to for certain tests and you can sign up to complete these tests and they're complete these tests and they're complete these tests and they're typically referred to as human typically referred to as human typically referred to as human intelligent tasks meaning that humans intelligent tasks meaning that humans intelligent tasks meaning that humans have to do have to do have to do tests they're not common tasks that tests they're not common tasks that tests they're not common tasks that computers can complete the robots cannot computers can complete the robots cannot computers can complete the robots cannot take over basically yeah the types of take over basically yeah the types of take over basically yeah the types of tasks range from a varying degree of tasks range from a varying degree of tasks range from a varying degree of different things that you can do some of different things that you can do some of different things that you can do some of them include finding objects and photos them include finding objects and photos them include finding objects and photos writing reviews on restaurants movies or writing reviews on restaurants movies or writing reviews on restaurants movies or businesses translating text pages into businesses translating text pages into businesses translating text pages into foreign languages getting hours of foreign languages getting hours of foreign languages getting hours of operation for different business centers operation for different business centers operation for different business centers or hotels there's all different things or hotels there's all different things or hotels there's all different things that you can do so how it works is that that you can do so how it works is that that you can do so how it works is that you search through the tasks and you you search through the tasks and you you search through the tasks and you click on the ones of interests once you click on the ones of interests once you click on the ones of interests once you accept the hit follow the instructions accept the hit follow the instructions accept the hit follow the instructions and submit the work after the requester and submit the work after the requester and submit the work after the requester approves the work Amazon pays you those approves the work Amazon pays you those approves the work Amazon pays you those are our five side hassles we hope that are our five side hassles we hope that are our five side hassles we hope that you try one of them out and start making you try one of them out and start making you try one of them out and start making money on the side money on the side money on the side right away if you like this video make right away if you like this video make right away if you like this video make sure you give us a thumbs up subscribe sure you give us a thumbs up subscribe sure you give us a thumbs up subscribe to our Channel and join the journey WEBVTT Kind: captions Language: en when the Social Security Act was passed when the Social Security Act was passed when the Social Security Act was passed in retirement officially began at in retirement officially began at in retirement officially began at age and the life expectancy at the age and the life expectancy at the age and the life expectancy at the time was so from the very outset time was so from the very outset time was so from the very outset retirement wasn't exactly considered a retirement wasn't exactly considered a retirement wasn't exactly considered a universal experience but over the last universal experience but over the last universal experience but over the last century as life expectancies have century as life expectancies have century as life expectancies have climbed the concept of retirement has climbed the concept of retirement has climbed the concept of retirement has become synonymous with the final chapter become synonymous with the final chapter become synonymous with the final chapter in a person's life then the book your in a person's life then the book your in a person's life then the book your money or your life came out in the s money or your life came out in the s money or your life came out in the s and introduced a pratical concept the and introduced a pratical concept the and introduced a pratical concept the author Vicki Robin proposed that by author Vicki Robin proposed that by author Vicki Robin proposed that by living with extreme frugality for a few living with extreme frugality for a few living with extreme frugality for a few years younger people could essentially years younger people could essentially years younger people could essentially become retired long before her old age become retired long before her old age become retired long before her old age she claimed to have achieved financial she claimed to have achieved financial she claimed to have achieved financial independence in her twenties today the independence in her twenties today the independence in her twenties today the phenomenon of financial independence at phenomenon of financial independence at phenomenon of financial independence at a young age goes by the acronym fire a a young age goes by the acronym fire a a young age goes by the acronym fire a stands for financial independence retire stands for financial independence retire stands for financial independence retire early and it's no fringe movement fire early and it's no fringe movement fire early and it's no fringe movement fire has been covered by the New York Times has been covered by the New York Times has been covered by the New York Times Market Watch and Forbes it's got more Market Watch and Forbes it's got more Market Watch and Forbes it's got more and more Millennials wondering could I and more Millennials wondering could I and more Millennials wondering could I quit my day job too quit my day job too quit my day job too [Music] this isn't about dropping out of society this isn't about dropping out of society this isn't about dropping out of society or living in a cave necessarily fire or living in a cave necessarily fire or living in a cave necessarily fire practitioners work extremely hard while practitioners work extremely hard while practitioners work extremely hard while living far below their means for years living far below their means for years living far below their means for years to amass enough savings to leave the to amass enough savings to leave the to amass enough savings to leave the workforce and it doesn't mean you'll workforce and it doesn't mean you'll workforce and it doesn't mean you'll spend your newfound freedom just hanging spend your newfound freedom just hanging spend your newfound freedom just hanging out in bowling alleys like Jeff Lebowski out in bowling alleys like Jeff Lebowski out in bowling alleys like Jeff Lebowski many people who manage to retire early many people who manage to retire early many people who manage to retire early continue to work but only on projects continue to work but only on projects continue to work but only on projects they're passionate about but the they're passionate about but the they're passionate about but the question remains is it possible to question remains is it possible to question remains is it possible to achieve through savings alone Pete a achieve through savings alone Pete a achieve through savings alone Pete a denis aka mister money mustache no denis aka mister money mustache no denis aka mister money mustache no relation might be considered the modern relation might be considered the modern relation might be considered the modern fire movements founding father Aiden II fire movements founding father Aiden II fire movements founding father Aiden II was working as a software engineer while was working as a software engineer while was working as a software engineer while living dramatically below his means living dramatically below his means living dramatically below his means during his s he took his savings and during his s he took his savings and during his s he took his savings and paid off debt and invested it in stock paid off debt and invested it in stock paid off debt and invested it in stock index funds by and in his early s index funds by and in his early s index funds by and in his early s Aiden II and his wife had amassed around Aiden II and his wife had amassed around Aiden II and his wife had amassed around $, in a paid-for home he $, in a paid-for home he $, in a paid-for home he calculated he had enough to leave the calculated he had enough to leave the calculated he had enough to leave the workforce permanently Aiden he suggests workforce permanently Aiden he suggests workforce permanently Aiden he suggests that early retirement is possible that early retirement is possible that early retirement is possible through three fundamental concepts at through three fundamental concepts at through three fundamental concepts at reality investing and the % rule of reality investing and the % rule of reality investing and the % rule of withdrawals let's face it unless you withdrawals let's face it unless you withdrawals let's face it unless you look into a large windfall of cash look into a large windfall of cash look into a large windfall of cash you'll have to save up a serious nest you'll have to save up a serious nest you'll have to save up a serious nest egg to retire and the simplest way to do egg to retire and the simplest way to do egg to retire and the simplest way to do that is to slash your lifestyle that is to slash your lifestyle that is to slash your lifestyle normally financial advisors suggest a normally financial advisors suggest a normally financial advisors suggest a to percent savings rate to retire at to percent savings rate to retire at to percent savings rate to retire at a normal age of or so when a retire a normal age of or so when a retire a normal age of or so when a retire ahead of schedule then ahead of schedule then ahead of schedule then have to level that up most early have to level that up most early have to level that up most early retirees adopt a to percent retirees adopt a to percent retirees adopt a to percent savings rate or more it's not uncommon savings rate or more it's not uncommon savings rate or more it's not uncommon for them to cut restaurants and bars by for them to cut restaurants and bars by for them to cut restaurants and bars by cheap cars bike to work let me do with a cheap cars bike to work let me do with a cheap cars bike to work let me do with a smaller house and avoid luxuries like smaller house and avoid luxuries like smaller house and avoid luxuries like gyms fancy vacations and expensive gyms fancy vacations and expensive gyms fancy vacations and expensive copies simply stashing cash into a bank copies simply stashing cash into a bank copies simply stashing cash into a bank account is a good start but the fire account is a good start but the fire account is a good start but the fire proponents rely on the power of the proponents rely on the power of the proponents rely on the power of the markets to boost their savings rates markets to boost their savings rates markets to boost their savings rates assuming you saved your money into a assuming you saved your money into a assuming you saved your money into a general stock market index fund you general stock market index fund you general stock market index fund you might expect a to percent rate of might expect a to percent rate of might expect a to percent rate of return based on historical averages any return based on historical averages any return based on historical averages any experienced investor will tell you that experienced investor will tell you that experienced investor will tell you that year-to-year return year-to-year return year-to-year return swinging wildly maybe even crash so swinging wildly maybe even crash so swinging wildly maybe even crash so that's where the third rule comes in a that's where the third rule comes in a that's where the third rule comes in a study by Trinity University study by Trinity University study by Trinity University concluded that a % annual withdrawal concluded that a % annual withdrawal concluded that a % annual withdrawal rate of your money in retirement should rate of your money in retirement should rate of your money in retirement should allow you to never outlive your money allow you to never outlive your money allow you to never outlive your money even in a bad economy this means that even in a bad economy this means that even in a bad economy this means that even with the dramatic ups and downs of even with the dramatic ups and downs of even with the dramatic ups and downs of the stock and bond market as long as the stock and bond market as long as the stock and bond market as long as your yearly expenses stay below % of your yearly expenses stay below % of your yearly expenses stay below % of your total savings you should be able to your total savings you should be able to your total savings you should be able to live off them for well theoretically live off them for well theoretically live off them for well theoretically forever forever forever put another way you take your annual put another way you take your annual put another way you take your annual spending needs then multiply it by spending needs then multiply it by spending needs then multiply it by that's the amount you need to become that's the amount you need to become that's the amount you need to become financially independent by now I imagine financially independent by now I imagine financially independent by now I imagine you're wondering what it would take if you're wondering what it would take if you're wondering what it would take if you wanted to retire early I think it's you wanted to retire early I think it's you wanted to retire early I think it's time to run the numbers let's imagine you have a household let's imagine you have a household let's imagine you have a household income of $, but you live way below income of $, but you live way below income of $, but you live way below your means and only need thirty five your means and only need thirty five your means and only need thirty five thousand year to be happy according to thousand year to be happy according to thousand year to be happy according to our rule of four percent you'll need our rule of four percent you'll need our rule of four percent you'll need eight hundred seventy-five thousand eight hundred seventy-five thousand eight hundred seventy-five thousand dollars in the bank in order to be dollars in the bank in order to be dollars in the bank in order to be financially independent through extreme financially independent through extreme financially independent through extreme thrift and aggressive cost-cutting thrift and aggressive cost-cutting thrift and aggressive cost-cutting you're able to save fifty thousand you're able to save fifty thousand you're able to save fifty thousand dollars a year which comes to fifty nine dollars a year which comes to fifty nine dollars a year which comes to fifty nine percent of your annual income at that percent of your annual income at that percent of your annual income at that rate of savings and assuming your stock rate of savings and assuming your stock rate of savings and assuming your stock index funds got an average return of % index funds got an average return of % index funds got an average return of % you'll have hit your goal in twelve you'll have hit your goal in twelve you'll have hit your goal in twelve years a good income frugal living and years a good income frugal living and years a good income frugal living and compound interest are a powerful wealth compound interest are a powerful wealth compound interest are a powerful wealth building combination you might be building combination you might be building combination you might be wondering what if I don't make a ton of wondering what if I don't make a ton of wondering what if I don't make a ton of money is this realistic a common money is this realistic a common money is this realistic a common critique of the early retirement critique of the early retirement critique of the early retirement movement is that a denis and other movement is that a denis and other movement is that a denis and other leaders of the movement had high-paying leaders of the movement had high-paying leaders of the movement had high-paying jobs in medicine or engineering making jobs in medicine or engineering making jobs in medicine or engineering making big bucks can certainly speed up the big bucks can certainly speed up the big bucks can certainly speed up the process but it's not a requirement process but it's not a requirement process but it's not a requirement take Jillian John's read she began take Jillian John's read she began take Jillian John's read she began working towards financial independence working towards financial independence working towards financial independence at age at age at age her husband served in the Armed Forces her husband served in the Armed Forces her husband served in the Armed Forces and she worked in customer service and and she worked in customer service and and she worked in customer service and sales over the next years they made sales over the next years they made sales over the next years they made an average household income of $, an average household income of $, an average household income of $, with no year over six figures and by with no year over six figures and by with no year over six figures and by Jillian had saved enough to be Jillian had saved enough to be Jillian had saved enough to be completely financially independent completely financially independent completely financially independent all while racing adopted and biological all while racing adopted and biological all while racing adopted and biological children and climbing out of thousand children and climbing out of thousand children and climbing out of thousand dollars of debt she uses her freed up dollars of debt she uses her freed up dollars of debt she uses her freed up time to travel the country right and time to travel the country right and time to travel the country right and raise her children today she does some raise her children today she does some raise her children today she does some work as a writer and coach but it's on work as a writer and coach but it's on work as a writer and coach but it's on her terms if you think that early her terms if you think that early her terms if you think that early retirement is all about lounging around retirement is all about lounging around retirement is all about lounging around and avoiding work you've missed the and avoiding work you've missed the and avoiding work you've missed the point instead it's about taking an point instead it's about taking an point instead it's about taking an active step to replace a job you hate active step to replace a job you hate active step to replace a job you hate with work you love and often finances with work you love and often finances with work you love and often finances are the biggest hurdle as a Denis says are the biggest hurdle as a Denis says are the biggest hurdle as a Denis says about the fire phenomenon early about the fire phenomenon early about the fire phenomenon early retirement means quitting any job you retirement means quitting any job you retirement means quitting any job you wouldn't do for free but then continue wouldn't do for free but then continue wouldn't do for free but then continue right ahead and work in something that right ahead and work in something that right ahead and work in something that works for you even when you don't need works for you even when you don't need works for you even when you don't need the money and if you've already got a the money and if you've already got a the money and if you've already got a fulfilling job you love fulfilling job you love fulfilling job you love congratulations you already have the congratulations you already have the congratulations you already have the benefits of early retirement without benefits of early retirement without benefits of early retirement without having to save up for it so whether or having to save up for it so whether or having to save up for it so whether or not you want to sprint toward early not you want to sprint toward early not you want to sprint toward early retirement the mindset of reducing your retirement the mindset of reducing your retirement the mindset of reducing your lifestyle living simpler and building a lifestyle living simpler and building a lifestyle living simpler and building a more rewarding work life is something we more rewarding work life is something we more rewarding work life is something we should all be aiming for and that's our should all be aiming for and that's our should all be aiming for and that's our two cents if you were to retire today two cents if you were to retire today two cents if you were to retire today what would you do with your newfound what would you do with your newfound what would you do with your newfound freedom tell us about it in the comments freedom tell us about it in the comments freedom tell us about it in the comments [Music] WEBVTT Kind: captions Language: en it's brian preston the money guy it's brian preston the money guy it's brian preston the money guy all right well but they say you know all right well but they say you know all right well but they say you know what i really we want to exit at . what i really we want to exit at . what i really we want to exit at . what would make that possible so we said what would make that possible so we said what would make that possible so we said okay well okay well okay well we've already shown that we can't live we've already shown that we can't live we've already shown that we can't live at your pre-retirement living expenses at your pre-retirement living expenses at your pre-retirement living expenses we can't live we can't live we can't live at a year so let's see if we at a year so let's see if we at a year so let's see if we retired at retired at retired at what level could we live at so we had what level could we live at so we had what level could we live at so we had full-time equivalent daniel kind of give full-time equivalent daniel kind of give full-time equivalent daniel kind of give us some ideas on us some ideas on us some ideas on all right let's think about base case all right let's think about base case all right let's think about base case and this we said and this we said and this we said we know that the poverty line in this we know that the poverty line in this we know that the poverty line in this country exists right around country exists right around country exists right around of annual income so if you wanted to be of annual income so if you wanted to be of annual income so if you wanted to be someone in the fire movement that really someone in the fire movement that really someone in the fire movement that really subscribed to like minimalism and you're subscribed to like minimalism and you're subscribed to like minimalism and you're thinking about like really living thinking about like really living thinking about like really living on as little as possible is it possible on as little as possible is it possible on as little as possible is it possible to live to live to live at the poverty line about fifteen at the poverty line about fifteen at the poverty line about fifteen hundred dollars per month hundred dollars per month hundred dollars per month and retiring at age thirty five so and retiring at age thirty five so and retiring at age thirty five so again we're going to retire at and again we're going to retire at and again we're going to retire at and we're going to live off of . we're going to live off of . we're going to live off of . all right well it gets us a little bit all right well it gets us a little bit all right well it gets us a little bit further than further than further than but even doing that only gets us out but even doing that only gets us out but even doing that only gets us out to age before we start running out of to age before we start running out of to age before we start running out of our resources so if all we're going our resources so if all we're going our resources so if all we're going to do is save to do is save to do is save of our income for that years or of our income for that years or of our income for that years or years of work and then try to live years of work and then try to live years of work and then try to live off of as little as possible off of as little as possible off of as little as possible doesn't work yeah and who wants to live doesn't work yeah and who wants to live doesn't work yeah and who wants to live at the poverty level so i think that you at the poverty level so i think that you at the poverty level so i think that you have to have to have to i mean we got to kick this up a little i mean we got to kick this up a little i mean we got to kick this up a little bit further so that somebody bit further so that somebody bit further so that somebody actually can enjoy the stage of life actually can enjoy the stage of life actually can enjoy the stage of life that they're in i completely agree but that they're in i completely agree but that they're in i completely agree but again we we want to answer all of john again we we want to answer all of john again we we want to answer all of john and jane's questions so they say okay and jane's questions so they say okay and jane's questions so they say okay if it doesn't work at could we do if it doesn't work at could we do if it doesn't work at could we do poverty line at poverty line at poverty line at does that work so again we say okay does that work so again we say okay does that work so again we say okay we're going to work till we're going to work till we're going to work till could we live off okay well it could we live off okay well it could we live off okay well it does change it does change it does change it and it does provide some money and it does provide some money and it does provide some money at the end of retirement and again to at the end of retirement and again to at the end of retirement and again to kind of do our due diligence we have to kind of do our due diligence we have to kind of do our due diligence we have to run this through a monte carlo run this through a monte carlo run this through a monte carlo to see where we fall out to see if we to see where we fall out to see if we to see where we fall out to see if we have a probability of success that have a probability of success that have a probability of success that actually works actually works actually works at age and you can see that our at age and you can see that our at age and you can see that our probability success probability success probability success living at the poverty line at takes living at the poverty line at takes living at the poverty line at takes us to but us to but us to but i agree with you it doesn't seem to make i agree with you it doesn't seem to make i agree with you it doesn't seem to make a whole lot of sense to work really hard a whole lot of sense to work really hard a whole lot of sense to work really hard for about years for about years for about years only to live on as little as possible only to live on as little as possible only to live on as little as possible for the next to for the next for the next to for the next for the next to for the next years we know years we know years we know there's there's a basic equation with there's there's a basic equation with there's there's a basic equation with any financial decision you can either any financial decision you can either any financial decision you can either spend less money or you can make more spend less money or you can make more spend less money or you can make more money that's right that's really those money that's right that's really those money that's right that's really those are your two are your two are your two if you're looking at the fork and the if you're looking at the fork and the if you're looking at the fork and the road moments well if you're at the road moments well if you're at the road moments well if you're at the poverty level poverty level poverty level you can't cut anymore that's exactly you can't cut anymore that's exactly you can't cut anymore that's exactly right yep so is there an opportunity right yep so is there an opportunity right yep so is there an opportunity if you don't want to live at poverty if you don't want to live at poverty if you don't want to live at poverty level where you can go make some money level where you can go make some money level where you can go make some money so here's what we said okay so here's what we said okay so here's what we said okay what would be required all right if what would be required all right if what would be required all right if at the poverty level works at the poverty level works at the poverty level works but poverty level seems unrealistic what but poverty level seems unrealistic what but poverty level seems unrealistic what if we doubled that instead if we doubled that instead if we doubled that instead of living off of fifteen hundred dollars of living off of fifteen hundred dollars of living off of fifteen hundred dollars a month we said let's live off of three a month we said let's live off of three a month we said let's live off of three thousand dollars a month now thousand dollars a month now thousand dollars a month now thirty six thousand dollars a year seems thirty six thousand dollars a year seems thirty six thousand dollars a year seems better better better pretty reasonable so if we increase our pretty reasonable so if we increase our pretty reasonable so if we increase our expenses to thirty six thousand dollars expenses to thirty six thousand dollars expenses to thirty six thousand dollars a year a year a year we still get to the end of the plan now we still get to the end of the plan now we still get to the end of the plan now there is a sliver instead of there is a sliver instead of there is a sliver instead of you know remember if we did the full you know remember if we did the full you know remember if we did the full thing we'd leave this earth with almost thing we'd leave this earth with almost thing we'd leave this earth with almost . million dollars . million dollars . million dollars but now we're only gonna leave with but now we're only gonna leave with but now we're only gonna leave with about four hundred thousand but we got about four hundred thousand but we got about four hundred thousand but we got to the end of the plan to the end of the plan to the end of the plan via straight line yeah but when you via straight line yeah but when you via straight line yeah but when you stress that that's gonna be scary that's stress that that's gonna be scary that's stress that that's gonna be scary that's exactly right we have to go back to our exactly right we have to go back to our exactly right we have to go back to our monte carlo simulation to see monte carlo simulation to see monte carlo simulation to see all right what's our probability of all right what's our probability of all right what's our probability of success if we're gonna live off of success if we're gonna live off of success if we're gonna live off of thousand dollars thousand dollars thousand dollars it's i wouldn't feel comfortable so it's i wouldn't feel comfortable so it's i wouldn't feel comfortable so you may be asking okay well guys what you may be asking okay well guys what you may be asking okay well guys what percentage would make you feel percentage would make you feel percentage would make you feel comfortable i kind of like mid s maybe comfortable i kind of like mid s maybe comfortable i kind of like mid s maybe i think mid s is kind of where i think mid s is kind of where i think mid s is kind of where i'm at and i'm back to the thought that i'm at and i'm back to the thought that i'm at and i'm back to the thought that even at three thousand dollars a year even at three thousand dollars a year even at three thousand dollars a year i mean at a month there's got to i mean at a month there's got to i mean at a month there's got to be a better way be a better way be a better way to kind of consider this and so maybe to kind of consider this and so maybe to kind of consider this and so maybe that's is that going back to work that's is that going back to work that's is that going back to work is that you there has to be a better way is that you there has to be a better way is that you there has to be a better way so there's this other part of the fire so there's this other part of the fire so there's this other part of the fire movement that's called barista fire movement that's called barista fire movement that's called barista fire these are the folks that these are the folks that these are the folks that want to stop doing their like normal day want to stop doing their like normal day want to stop doing their like normal day job but they're not unwilling to work job but they're not unwilling to work job but they're not unwilling to work so what we said is okay let's take john so what we said is okay let's take john so what we said is okay let's take john and jane and jane and jane and let's assume that when they retire and let's assume that when they retire and let's assume that when they retire they're willing to go work at starbucks they're willing to go work at starbucks they're willing to go work at starbucks because that's kind of the thing that's because that's kind of the thing that's because that's kind of the thing that's here i get to go be a barista here i get to go be a barista here i get to go be a barista or gig economy or a gig economist or gig economy or a gig economist or gig economy or a gig economist uber driver lyft driver uh so let's uber driver lyft driver uh so let's uber driver lyft driver uh so let's assume that they can make assume that they can make assume that they can make an hour working part-time so they both an hour working part-time so they both an hour working part-time so they both work hours a week work hours a week work hours a week an hour what happens if at an hour what happens if at an hour what happens if at when they retire they can start when they retire they can start when they retire they can start doing some barista side hustles looks doing some barista side hustles looks doing some barista side hustles looks better well now it looks a lot better if better well now it looks a lot better if better well now it looks a lot better if we we we check the monte carlo to see does that check the monte carlo to see does that check the monte carlo to see does that improve our probability of success improve our probability of success improve our probability of success you can see that our probability excess you can see that our probability excess you can see that our probability excess success actually goes from success actually goes from success actually goes from up to yeah so that makes up to yeah so that makes up to yeah so that makes a pretty big difference right but they a pretty big difference right but they a pretty big difference right but they say okay well say okay well say okay well i was willing to work that sounds great i was willing to work that sounds great i was willing to work that sounds great uh but what if i actually uh but what if i actually uh but what if i actually want to have the additional living want to have the additional living want to have the additional living expenses what if i expenses what if i expenses what if i i don't want to live off of a i don't want to live off of a i don't want to live off of a year year year what if i want to still live off of what if i want to still live off of what if i want to still live off of a year would working at starbucks allow a year would working at starbucks allow a year would working at starbucks allow me to do that would having the barista me to do that would having the barista me to do that would having the barista income income income let me do that if i chose to start doing let me do that if i chose to start doing let me do that if i chose to start doing that at that at that at well unfortunately the answer is no the well unfortunately the answer is no the well unfortunately the answer is no the assets do assets do assets do take you out to age take you out to age take you out to age which is much better than some of our which is much better than some of our which is much better than some of our previous iterations previous iterations previous iterations but it still doesn't get you all the way but it still doesn't get you all the way but it still doesn't get you all the way to the end of the plan to the end of the plan to the end of the plan so if your goal is to live off of the so if your goal is to live off of the so if your goal is to live off of the living expenses you had pre-retirement living expenses you had pre-retirement living expenses you had pre-retirement and you're willing to get a side gig and and you're willing to get a side gig and and you're willing to get a side gig and start working at age start working at age start working at age it's still not quite gonna cut it so you it's still not quite gonna cut it so you it's still not quite gonna cut it so you made an interesting observation brian made an interesting observation brian made an interesting observation brian you said when it comes to making you said when it comes to making you said when it comes to making financial decisions you really have financial decisions you really have financial decisions you really have two options you can make more or you can two options you can make more or you can two options you can make more or you can spend less i'd argue there's a third one spend less i'd argue there's a third one spend less i'd argue there's a third one sometimes yeah sometimes if you have big sometimes yeah sometimes if you have big sometimes yeah sometimes if you have big goals goals goals and you've already exercised making more and you've already exercised making more and you've already exercised making more and you've already kind of cut the and you've already kind of cut the and you've already kind of cut the expense as lean as possible expense as lean as possible expense as lean as possible the other option you can have as it the other option you can have as it the other option you can have as it relates to fire is you can be a really relates to fire is you can be a really relates to fire is you can be a really aggressive saver aggressive saver aggressive saver yeah so we talk about hey we want john yeah so we talk about hey we want john yeah so we talk about hey we want john and jane to save and jane to save and jane to save of their gross income well john and of their gross income well john and of their gross income well john and jane may say you know what in order to jane may say you know what in order to jane may say you know what in order to make this fire thing make this fire thing make this fire thing possible rather than only saving possible rather than only saving possible rather than only saving of our income during our working years of our income during our working years of our income during our working years we're willing we're willing we're willing to really beef that up and what i mean to really beef that up and what i mean to really beef that up and what i mean by really beef that up by really beef that up by really beef that up is not only are we just going to do is not only are we just going to do is not only are we just going to do percent to our ks percent to our ks percent to our ks we're going to go ahead and max them out we're going to go ahead and max them out we're going to go ahead and max them out at the full at the full at the full each so that takes our total annual each so that takes our total annual each so that takes our total annual savings to about savings to about savings to about a year or about of our annual income a year or about of our annual income a year or about of our annual income so if i'm willing to work until age so if i'm willing to work until age so if i'm willing to work until age and i'm willing to save and i'm willing to save and i'm willing to save of my income from until of my income from until of my income from until and when i get to i'm willing to go and when i get to i'm willing to go and when i get to i'm willing to go get a part-time job get a part-time job get a part-time job working at starbucks does the plan work working at starbucks does the plan work working at starbucks does the plan work well you can see now we in the plan with well you can see now we in the plan with well you can see now we in the plan with about . million dollars left over about . million dollars left over about . million dollars left over pretty healthy margin if we run it back pretty healthy margin if we run it back pretty healthy margin if we run it back through through through our monte carlo simulation again this is our monte carlo simulation again this is our monte carlo simulation again this is running through running through running through a thousand different iterations a thousand different iterations a thousand different iterations assuming additional savings assuming assuming additional savings assuming assuming additional savings assuming getting a side gig getting a side gig getting a side gig we actually have an percent we actually have an percent we actually have an percent probability success but that has you probability success but that has you probability success but that has you working working working you said think about think about this you said think about think about this you said think about think about this this is essentially like a fat fire type this is essentially like a fat fire type this is essentially like a fat fire type person where they're going to person where they're going to person where they're going to really hyper save while they are working really hyper save while they are working really hyper save while they are working but then when they get to retirement but then when they get to retirement but then when they get to retirement they're not going to fully retire they're not going to fully retire they're not going to fully retire they're going to continue to work they're going to continue to work they're going to continue to work does that does the fat fire or somebody does that does the fat fire or somebody does that does the fat fire or somebody who's willing to who's willing to who's willing to really put the pedal to the metal on really put the pedal to the metal on really put the pedal to the metal on savings savings savings is there a way they can do that at is there a way they can do that at is there a way they can do that at without working so without working okay without working so without working okay without working so without working okay so let's say so let's say so let's say we take off our barista income we we take off our barista income we we take off our barista income we actually do exit actually do exit actually do exit we're still uh going to be living at we're still uh going to be living at we're still uh going to be living at double the poverty line this is the double the poverty line this is the double the poverty line this is the . can we do that or if that's . . can we do that or if that's . . can we do that or if that's . it's close so you maybe need to save a it's close so you maybe need to save a it's close so you maybe need to save a touch more we either need to save a touch more we either need to save a touch more we either need to save a touch more or think about spending a touch more or think about spending a touch more or think about spending a touch less and remember touch less and remember touch less and remember we're still not at that point where we're still not at that point where we're still not at that point where we're actually living off of our we're actually living off of our we're actually living off of our sixty thousand dollars a year goal but sixty thousand dollars a year goal but sixty thousand dollars a year goal but okay but you were saving fifty percent okay but you were saving fifty percent okay but you were saving fifty percent of your income so odds are you're not of your income so odds are you're not of your income so odds are you're not actually needing sixty thousand so maybe actually needing sixty thousand so maybe actually needing sixty thousand so maybe that is a realistic scenario but john that is a realistic scenario but john that is a realistic scenario but john and jane are super ambitious and jane are super ambitious and jane are super ambitious and they say okay we got an idea for you and they say okay we got an idea for you and they say okay we got an idea for you guys we thought this through guys we thought this through guys we thought this through mom and dad have said that we can go mom and dad have said that we can go mom and dad have said that we can go live with them mom and dad live with them mom and dad live with them mom and dad said that we can make our hundred said that we can make our hundred said that we can make our hundred thousand dollars but they're gonna let thousand dollars but they're gonna let thousand dollars but they're gonna let us live with them us live with them us live with them for the first years right for the first years right for the first years right they're not going to charge us any rent they're not going to charge us any rent they're not going to charge us any rent and they're going to cover our groceries and they're going to cover our groceries and they're going to cover our groceries and then uncle sam said you know what and then uncle sam said you know what and then uncle sam said you know what john and jane we really want you to be john and jane we really want you to be john and jane we really want you to be so financially independent we're not so financially independent we're not so financially independent we're not going to charge you any taxes going to charge you any taxes going to charge you any taxes so you're gonna find a way to save a so you're gonna find a way to save a so you're gonna find a way to save a hundred thousand dollars a year hundred thousand dollars a year hundred thousand dollars a year one hundred percent of your income one hundred percent of your income one hundred percent of your income what i think is a better because what i think is a better because what i think is a better because government doesn't let you out of taxes government doesn't let you out of taxes government doesn't let you out of taxes the the better suggestion is you have a the the better suggestion is you have a the the better suggestion is you have a relative that's going because that's relative that's going because that's relative that's going because that's usually when cnbc runs an article usually when cnbc runs an article usually when cnbc runs an article somebody okay of debt in two somebody okay of debt in two somebody okay of debt in two years sure years sure years sure what they fail to tell you is typically what they fail to tell you is typically what they fail to tell you is typically there's some family there's some family there's some family economic support where they're giving economic support where they're giving economic support where they're giving you you you a year in gifts so here's the big a year in gifts so here's the big a year in gifts so here's the big question if they can generate whether it question if they can generate whether it question if they can generate whether it be through gifts or whatever else a be through gifts or whatever else a be through gifts or whatever else a hundred thousand dollars of saving hundred thousand dollars of saving hundred thousand dollars of saving from age to and their goal from age to and their goal from age to and their goal is to live off of per year is to live off of per year is to live off of per year does it work no the answer is no does it work no the answer is no does it work no the answer is no it only gets them out to about years it only gets them out to about years it only gets them out to about years old old old yeah if they said okay well what if i yeah if they said okay well what if i yeah if they said okay well what if i wanted to live off of less what if we wanted to live off of less what if we wanted to live off of less what if we did that could we live did that could we live did that could we live off of dollars a year off of dollars a year off of dollars a year okay maybe that gets you there i think okay maybe that gets you there i think okay maybe that gets you there i think what we're seeing here though and this what we're seeing here though and this what we're seeing here though and this is what we try to explain to john and is what we try to explain to john and is what we try to explain to john and jane hey based on where you guys are jane hey based on where you guys are jane hey based on where you guys are wanting to be parts of the fire movement wanting to be parts of the fire movement wanting to be parts of the fire movement i don't know that the s is going to be i don't know that the s is going to be i don't know that the s is going to be your key WEBVTT Kind: captions Language: en [Music] you can afford anything but not you can afford anything but not you can afford anything but not everything every decision that you make everything every decision that you make everything every decision that you make is a trade-off against something else is a trade-off against something else is a trade-off against something else and that doesn't just apply to your and that doesn't just apply to your and that doesn't just apply to your money it applies to your time your focus money it applies to your time your focus money it applies to your time your focus your energy your attention it applies to your energy your attention it applies to your energy your attention it applies to anything in your life that's a scarce or anything in your life that's a scarce or anything in your life that's a scarce or limited resource any resource that you limited resource any resource that you limited resource any resource that you need to manage how do you manage it well need to manage how do you manage it well need to manage how do you manage it well that is quite literally the that is quite literally the that is quite literally the million-dollar question and that's what million-dollar question and that's what million-dollar question and that's what this podcast is here to explore my name this podcast is here to explore my name this podcast is here to explore my name is Paula pan I'm the host of the afford is Paula pan I'm the host of the afford is Paula pan I'm the host of the afford anything podcast and the founder of anything podcast and the founder of anything podcast and the founder of afford anything calm today Clark Howard afford anything calm today Clark Howard afford anything calm today Clark Howard joins us to talk about why he loves the joins us to talk about why he loves the joins us to talk about why he loves the financial independence retire early financial independence retire early financial independence retire early movement the fire movement Clark Howard movement the fire movement Clark Howard movement the fire movement Clark Howard is also one of the most famous names in is also one of the most famous names in is also one of the most famous names in personal finance he has published personal finance he has published personal finance he has published books many of which are New York Times books many of which are New York Times books many of which are New York Times bestsellers his book living large in bestsellers his book living large in bestsellers his book living large in lean times hit number one on the New lean times hit number one on the New lean times hit number one on the New York Times bestseller list his website York Times bestseller list his website York Times bestseller list his website gets more than million views a year gets more than million views a year gets more than million views a year he's the former co-host of evening he's the former co-host of evening he's the former co-host of evening Express on CNN Headline News now called Express on CNN Headline News now called Express on CNN Headline News now called HLN and he was also the host of a HLN and he was also the host of a HLN and he was also the host of a weekend show on HLN weekend show on HLN weekend show on HLN but of course I'm leaving out the thing but of course I'm leaving out the thing but of course I'm leaving out the thing that he is perhaps most famous for which that he is perhaps most famous for which that he is perhaps most famous for which is that he hosts a syndicated radio show is that he hosts a syndicated radio show is that he hosts a syndicated radio show it's called the Clark Howard show and it it's called the Clark Howard show and it it's called the Clark Howard show and it airs in hundreds of radio markets across airs in hundreds of radio markets across airs in hundreds of radio markets across the nation this is Clark's second time the nation this is Clark's second time the nation this is Clark's second time on this podcast he was a guest in on this podcast he was a guest in on this podcast he was a guest in episode which will link to in the episode which will link to in the episode which will link to in the show notes and in that episode he shared show notes and in that episode he shared show notes and in that episode he shared his fascinating backstory his fascinating backstory his fascinating backstory he began investing in real estate at age he began investing in real estate at age he began investing in real estate at age he started his own company at age he started his own company at age he started his own company at age and he sold his company which was a and he sold his company which was a and he sold his company which was a travel agency and retired at the age of travel agency and retired at the age of travel agency and retired at the age of so Clark reached fire before it was so Clark reached fire before it was so Clark reached fire before it was called fire he reached fire when he was called fire he reached fire when he was called fire he reached fire when he was years old he sold his company he years old he sold his company he years old he sold his company he moved to the beach in Florida and for moved to the beach in Florida and for moved to the beach in Florida and for about four years he did very little he about four years he did very little he about four years he did very little he enjoyed that stereotypical retirement of enjoyed that stereotypical retirement of enjoyed that stereotypical retirement of hanging out on the beach doing not very hanging out on the beach doing not very hanging out on the beach doing not very much he shares that story in episode much he shares that story in episode much he shares that story in episode so go listen to that if you want to hear so go listen to that if you want to hear so go listen to that if you want to hear the details about his backstory but of the details about his backstory but of the details about his backstory but of course after four years of hanging out course after four years of hanging out course after four years of hanging out on the beach he came out of retirement on the beach he came out of retirement on the beach he came out of retirement and he started his second career as a and he started his second career as a and he started his second career as a radio host and best-selling author radio host and best-selling author radio host and best-selling author what's amazing about him is that he what's amazing about him is that he what's amazing about him is that he walks the talk and he has become walks the talk and he has become walks the talk and he has become very successful very wealthy while very successful very wealthy while very successful very wealthy while leading with a service-oriented heart leading with a service-oriented heart leading with a service-oriented heart during Hurricane Katrina he volunteered during Hurricane Katrina he volunteered during Hurricane Katrina he volunteered with a team that did medical evacuations with a team that did medical evacuations with a team that did medical evacuations and after September th he joined the and after September th he joined the and after September th he joined the Georgia State Defense Force which is an Georgia State Defense Force which is an Georgia State Defense Force which is an unpaid unarmed volunteer component of unpaid unarmed volunteer component of unpaid unarmed volunteer component of the State Department of Defense he has the State Department of Defense he has the State Department of Defense he has sponsored the construction of houses sponsored the construction of houses sponsored the construction of houses through Habitat for Humanity and through Habitat for Humanity and through Habitat for Humanity and sponsored a program that gives toys to sponsored a program that gives toys to sponsored a program that gives toys to low-income children he's helped more low-income children he's helped more low-income children he's helped more than , children get toys at than , children get toys at than , children get toys at Christmastime Christmastime Christmastime so he is really a perfect example of so he is really a perfect example of so he is really a perfect example of life after reaching fire and in this life after reaching fire and in this life after reaching fire and in this episode he's going to talk to us about episode he's going to talk to us about episode he's going to talk to us about what he loves about fire and what advice what he loves about fire and what advice what he loves about fire and what advice he would give to people who are he would give to people who are he would give to people who are interested in pursuing it so here is interested in pursuing it so here is interested in pursuing it so here is Clark Howard hey Clark are you doing I'm fantastic hey Clark are you doing I'm fantastic hey Clark are you doing I'm fantastic how are you wonderful it's so great to how are you wonderful it's so great to how are you wonderful it's so great to visit with you yeah thank you so much I visit with you yeah thank you so much I visit with you yeah thank you so much I enjoy the first time that you were on enjoy the first time that you were on enjoy the first time that you were on the show which was about two years ago the show which was about two years ago the show which was about two years ago and so I'm really glad that you're back and so I'm really glad that you're back and so I'm really glad that you're back well I was we were in San Diego I love well I was we were in San Diego I love well I was we were in San Diego I love that town and it's supposed to be sunny that town and it's supposed to be sunny that town and it's supposed to be sunny there all the time and it rained the there all the time and it rained the there all the time and it rained the whole week we were there net I want my whole week we were there net I want my whole week we were there net I want my refund not right but I did get to go to refund not right but I did get to go to refund not right but I did get to go to in-n-out burger three times Wow we were in-n-out burger three times Wow we were in-n-out burger three times Wow we were in San Diego I hope you're not a in San Diego I hope you're not a in San Diego I hope you're not a vegetarian remember I saw you in an out vegetarian remember I saw you in an out vegetarian remember I saw you in an out burger burger burger Irie Times yeah cuz you were in an uber Irie Times yeah cuz you were in an uber Irie Times yeah cuz you were in an uber or lyft and I was doing uber pool and or lyft and I was doing uber pool and or lyft and I was doing uber pool and yeah I remember Clark I suppose I should yeah I remember Clark I suppose I should yeah I remember Clark I suppose I should start this by asking you the question start this by asking you the question start this by asking you the question that I have inadvertently become that I have inadvertently become that I have inadvertently become well-known for asking which is have you well-known for asking which is have you well-known for asking which is have you heard of the fire movement independence heard of the fire movement independence heard of the fire movement independence retire early I love it I think it's a retire early I love it I think it's a retire early I love it I think it's a great thing to motivate people and it great thing to motivate people and it great thing to motivate people and it speaks to so many people in a way that speaks to so many people in a way that speaks to so many people in a way that that really never has through a large that really never has through a large that really never has through a large group let's talk about that for a while group let's talk about that for a while group let's talk about that for a while because I loved what you said on your because I loved what you said on your because I loved what you said on your show after some of the drama of the past show after some of the drama of the past show after some of the drama of the past few weeks where you said it was hard for few weeks where you said it was hard for few weeks where you said it was hard for you to understand how anyone could you to understand how anyone could you to understand how anyone could object to the notion of saving a large object to the notion of saving a large object to the notion of saving a large percentage of your income if you're able percentage of your income if you're able percentage of your income if you're able to do so yeah blew my mind because if to do so yeah blew my mind because if to do so yeah blew my mind because if you look at other cultures particularly you look at other cultures particularly you look at other cultures particularly in Asia very common that people save a in Asia very common that people save a in Asia very common that people save a third of what they make if the scent of third of what they make if the scent of third of what they make if the scent of what they make there's not government what they make there's not government what they make there's not government support for people who hit hard times support for people who hit hard times support for people who hit hard times and a lot of Asia and so it's just built and a lot of Asia and so it's just built and a lot of Asia and so it's just built into the culture that you know for every into the culture that you know for every into the culture that you know for every equivalent of dollar you earn that you equivalent of dollar you earn that you equivalent of dollar you earn that you need to save cents cents cents need to save cents cents cents need to save cents cents cents and people just live that way we're and people just live that way we're and people just live that way we're different you know the average American different you know the average American different you know the average American saves like cents of each dollar they saves like cents of each dollar they saves like cents of each dollar they make and that frustrates me no and I make and that frustrates me no and I make and that frustrates me no and I want us to take more personal want us to take more personal want us to take more personal responsibility for our own banana responsibility for our own banana responsibility for our own banana or well-being why do you think that the or well-being why do you think that the or well-being why do you think that the fire movement has motivated people to do fire movement has motivated people to do fire movement has motivated people to do that given how I mean you've been trying that given how I mean you've been trying that given how I mean you've been trying to encourage people to save for decades to encourage people to save for decades to encourage people to save for decades it's always been an uphill battle what it's always been an uphill battle what it's always been an uphill battle what is it about the fire movement that is it about the fire movement that is it about the fire movement that resonates with people and that motivates resonates with people and that motivates resonates with people and that motivates that savings well I think it has to do that savings well I think it has to do that savings well I think it has to do with what happened last decade the with what happened last decade the with what happened last decade the banking scandals that led to the Great banking scandals that led to the Great banking scandals that led to the Great Recession that led to so much hardship Recession that led to so much hardship Recession that led to so much hardship for so many people people losing their for so many people people losing their for so many people people losing their homes I mean their cars repossessed homes I mean their cars repossessed homes I mean their cars repossessed extended periods of unemployment I think extended periods of unemployment I think extended periods of unemployment I think a lot of people particularly those that a lot of people particularly those that a lot of people particularly those that were teenagers seeing this happened to were teenagers seeing this happened to were teenagers seeing this happened to their parents things like that affect their parents things like that affect their parents things like that affect you for the rest of your life I think a you for the rest of your life I think a you for the rest of your life I think a lot of people learn from the Great lot of people learn from the Great lot of people learn from the Great Recession that a reset was an order a Recession that a reset was an order a Recession that a reset was an order a lot of people who don't want to be lot of people who don't want to be lot of people who don't want to be vulnerable that their one paycheck away vulnerable that their one paycheck away vulnerable that their one paycheck away from extreme poverty and so it's not from extreme poverty and so it's not from extreme poverty and so it's not it's certainly not every American is it's certainly not every American is it's certainly not every American is making this pivot but it's exciting to making this pivot but it's exciting to making this pivot but it's exciting to me to see people out of what was a me to see people out of what was a me to see people out of what was a terrible time in American history and so terrible time in American history and so terrible time in American history and so much hardship on so many people that much hardship on so many people that much hardship on so many people that there are those that came out of that there are those that came out of that there are those that came out of that saying you know what I'm gonna live a saying you know what I'm gonna live a saying you know what I'm gonna live a different life I'm not going to live an different life I'm not going to live an different life I'm not going to live an instant your life I'm gonna be in charge instant your life I'm gonna be in charge instant your life I'm gonna be in charge of my life and I'm not gonna have to of my life and I'm not gonna have to of my life and I'm not gonna have to spend my whole adult life working for spend my whole adult life working for spend my whole adult life working for the man that's an expression I've heard the man that's an expression I've heard the man that's an expression I've heard of that recently I recently became of that recently I recently became of that recently I recently became acquainted with that idea that it's the acquainted with that idea that it's the acquainted with that idea that it's the combination of the Great Recession combination of the Great Recession combination of the Great Recession followed by the ensuing bull market that followed by the ensuing bull market that followed by the ensuing bull market that has enabled the fire movement now in has enabled the fire movement now in has enabled the fire movement now in your answer you mentioned the Great your answer you mentioned the Great your answer you mentioned the Great Recession do you think that the bull run Recession do you think that the bull run Recession do you think that the bull run that we've had for the last nine years that we've had for the last nine years that we've had for the last nine years has has also fueled this only in part has has also fueled this only in part has has also fueled this only in part because if you think about what I said because if you think about what I said because if you think about what I said with most Americans save only three with most Americans save only three with most Americans save only three cents of each dollar they make it cents of each dollar they make it cents of each dollar they make it doesn't matter how much the market goes doesn't matter how much the market goes doesn't matter how much the market goes up if you're putting no money aside to up if you're putting no money aside to up if you're putting no money aside to grow it's also true that people maybe grow it's also true that people maybe grow it's also true that people maybe being a wood being a wood being a wood unrealistic based on the fact that the unrealistic based on the fact that the unrealistic based on the fact that the stock market is quadrupled since stock market is quadrupled since stock market is quadrupled since that they think oh I'm just gonna put that they think oh I'm just gonna put that they think oh I'm just gonna put this money aside I'm gonna extrapolate this money aside I'm gonna extrapolate this money aside I'm gonna extrapolate that I'm gonna have these same kind of that I'm gonna have these same kind of that I'm gonna have these same kind of earnings for years to come earnings for years to come earnings for years to come the EZ earnings in the market are over the EZ earnings in the market are over the EZ earnings in the market are over for now and so it goes back to the core for now and so it goes back to the core for now and so it goes back to the core that it's living on less than what you that it's living on less than what you that it's living on less than what you make is what creates financial make is what creates financial make is what creates financial independence that investing is part of independence that investing is part of independence that investing is part of the picture but it's not what creates the picture but it's not what creates the picture but it's not what creates the wealth alone it's that you set out the wealth alone it's that you set out the wealth alone it's that you set out to live on every other paycheck or that to live on every other paycheck or that to live on every other paycheck or that you're going to say % of what you make you're going to say % of what you make you're going to say % of what you make or % or whatever number it's got to be or % or whatever number it's got to be or % or whatever number it's got to be a pretty big number if you want to a pretty big number if you want to a pretty big number if you want to create financial independence at an create financial independence at an create financial independence at an early age but the magic of living early age but the magic of living early age but the magic of living systematically on less than what you systematically on less than what you systematically on less than what you make is at the core of what creates fast make is at the core of what creates fast make is at the core of what creates fast because it means even when you're not because it means even when you're not because it means even when you're not working anymore accumulating that well working anymore accumulating that well working anymore accumulating that well you need much less money to live on you need much less money to live on you need much less money to live on because you're living a more because you're living a more because you're living a more conservative lifestyle a lower voltage conservative lifestyle a lower voltage conservative lifestyle a lower voltage lower-cost lower-cost lower-cost lifestyle is there risk quote-unquote lifestyle is there risk quote-unquote lifestyle is there risk quote-unquote risk associated with that the risk of risk associated with that the risk of risk associated with that the risk of living more frugally than you otherwise living more frugally than you otherwise living more frugally than you otherwise would have to that's one of the would have to that's one of the would have to that's one of the criticisms that I hear of the fire criticisms that I hear of the fire criticisms that I hear of the fire movement is are you going to reach your movement is are you going to reach your movement is are you going to reach your s and regret all the spending that you s and regret all the spending that you s and regret all the spending that you didn't do I don't know anybody who's didn't do I don't know anybody who's didn't do I don't know anybody who's made happy by the possessions they have made happy by the possessions they have made happy by the possessions they have but if you miss a lot of experiences but if you miss a lot of experiences but if you miss a lot of experiences that you would enjoy maybe you've been that you would enjoy maybe you've been that you would enjoy maybe you've been too cheap with yourself because really too cheap with yourself because really too cheap with yourself because really experiences over our lifetime or what we experiences over our lifetime or what we experiences over our lifetime or what we treasure what we hold on to you look at treasure what we hold on to you look at treasure what we hold on to you look at when people post their artificial when people post their artificial when people post their artificial version of their lives on Instagram or version of their lives on Instagram or version of their lives on Instagram or other social media it's always other social media it's always other social media it's always experiences they're doing nobody's experiences they're doing nobody's experiences they're doing nobody's taking a picture of the new TV they taking a picture of the new TV they taking a picture of the new TV they bought and say look what I got know what bought and say look what I got know what bought and say look what I got know what they're doing is look at this cool place they're doing is look at this cool place they're doing is look at this cool place I'm at I leave this trip I'm on whatever I'm at I leave this trip I'm on whatever I'm at I leave this trip I'm on whatever it is experiences and time with people it is experiences and time with people it is experiences and time with people that creates the joy in our lives and I that creates the joy in our lives and I that creates the joy in our lives and I want you to live like sometimes I'll want you to live like sometimes I'll want you to live like sometimes I'll talk to somebody who's being so extreme talk to somebody who's being so extreme talk to somebody who's being so extreme with their frugality I'll stop them and with their frugality I'll stop them and with their frugality I'll stop them and I'll say are you allowing anything in I'll say are you allowing anything in I'll say are you allowing anything in your budget for you to have joy in your your budget for you to have joy in your your budget for you to have joy in your life and I'm usually met with dead life and I'm usually met with dead life and I'm usually met with dead silence because that's something that is silence because that's something that is silence because that's something that is a way it's not normally thought about by a way it's not normally thought about by a way it's not normally thought about by people presented to them that if people presented to them that if people presented to them that if everything is about sacrifice with no everything is about sacrifice with no everything is about sacrifice with no specific goal in mind they gives you joy specific goal in mind they gives you joy specific goal in mind they gives you joy along the way and joy and that the goal along the way and joy and that the goal along the way and joy and that the goal was to create the financial independence was to create the financial independence was to create the financial independence so you can make the choices in your life so you can make the choices in your life so you can make the choices in your life you want to make it has to be about more you want to make it has to be about more you want to make it has to be about more than just well I'm sacrificing why are than just well I'm sacrificing why are than just well I'm sacrificing why are you sacrificing well because I'm you sacrificing well because I'm you sacrificing well because I'm sacrificing there's got to be a real sacrificing there's got to be a real sacrificing there's got to be a real purpose in mind that makes it worth purpose in mind that makes it worth purpose in mind that makes it worth doing doing doing hmm during the now-infamous Suze Orman hmm during the now-infamous Suze Orman hmm during the now-infamous Suze Orman interview she lives in New York you know interview she lives in New York you know interview she lives in New York you know her expectations are different about how her expectations are different about how her expectations are different about how many zeroes you have to have you know many zeroes you have to have you know many zeroes you have to have you know that was painful when I read her quotes that was painful when I read her quotes that was painful when I read her quotes to you I gotta tell you and I've known to you I gotta tell you and I've known to you I gotta tell you and I've known Susie for a long time and it was like Susie for a long time and it was like Susie for a long time and it was like fingers on a chalkboard when I was fingers on a chalkboard when I was fingers on a chalkboard when I was reading those it was it was shocking to reading those it was it was shocking to reading those it was it was shocking to hear whatever the comments that she made hear whatever the comments that she made hear whatever the comments that she made she kept citing her age she was she's she kept citing her age she was she's she kept citing her age she was she's years of age and she kept citing that as years of age and she kept citing that as years of age and she kept citing that as a form of credibility stating that she a form of credibility stating that she a form of credibility stating that she understands things that somebody like me understands things that somebody like me understands things that somebody like me in my s doesn't about the nature of in my s doesn't about the nature of in my s doesn't about the nature of spending especially as you get older spending especially as you get older spending especially as you get older Clark how old are you I'm okay so Clark how old are you I'm okay so Clark how old are you I'm okay so please enlighten us if you will how do please enlighten us if you will how do please enlighten us if you will how do we especially those of us who are we especially those of us who are we especially those of us who are interested in financial independence or interested in financial independence or interested in financial independence or extreme early retirement how should we extreme early retirement how should we extreme early retirement how should we be thinking about our s okay be thinking about our s okay be thinking about our s okay so you know I retired the first time so you know I retired the first time so you know I retired the first time when I was when I was when I was mmm-hmm and I had been very fortunate to mmm-hmm and I had been very fortunate to mmm-hmm and I had been very fortunate to do that and in my arrow we called the do that and in my arrow we called the do that and in my arrow we called the equivalent of what the fire movement is equivalent of what the fire movement is equivalent of what the fire movement is called it being a maxi oh I have a fan a called it being a maxi oh I have a fan a called it being a maxi oh I have a fan a Mad Max ma ex neighbor and that since I Mad Max ma ex neighbor and that since I Mad Max ma ex neighbor and that since I was a Mac saver from when I was I was a Mac saver from when I was I was a Mac saver from when I was I lived on every other paycheck and I was lived on every other paycheck and I was lived on every other paycheck and I was in a position to be able to retire at in a position to be able to retire at in a position to be able to retire at I moved to the beat is I'm a water baby I moved to the beat is I'm a water baby I moved to the beat is I'm a water baby I just had to be at the beach and I I just had to be at the beach and I I just had to be at the beach and I loved that but it was it was my choice loved that but it was it was my choice loved that but it was it was my choice to go back to work mm-hm and I worked to go back to work mm-hm and I worked to go back to work mm-hm and I worked because I want to that's the beauty of because I want to that's the beauty of because I want to that's the beauty of the fire movement Suzie was really the fire movement Suzie was really the fire movement Suzie was really focusing on so you're gonna save all focusing on so you're gonna save all focusing on so you're gonna save all this money and then you think you're this money and then you think you're this money and then you think you're gonna bag life at and you're just gonna bag life at and you're just gonna bag life at and you're just gonna do whatever the rest of your life gonna do whatever the rest of your life gonna do whatever the rest of your life the kind of person who's motivated to the kind of person who's motivated to the kind of person who's motivated to save save say to create financial save save say to create financial save save say to create financial independence it's about having the independence it's about having the independence it's about having the freedom to make the choices you want to freedom to make the choices you want to freedom to make the choices you want to make in life it's not necessarily make in life it's not necessarily make in life it's not necessarily although for a small number of people it although for a small number of people it although for a small number of people it may be that they're gonna bag work at may be that they're gonna bag work at may be that they're gonna bag work at or and never work again that's or and never work again that's or and never work again that's usually not somebody who's industrious usually not somebody who's industrious usually not somebody who's industrious enough that they saved enough that they enough that they saved enough that they enough that they saved enough that they were able to create the end dependents were able to create the end dependents were able to create the end dependents financially that's really what it's financially that's really what it's financially that's really what it's about and retire has all different about and retire has all different about and retire has all different definition so it may be that maybe you definition so it may be that maybe you definition so it may be that maybe you were working in a corporate America job were working in a corporate America job were working in a corporate America job and you were saving money like crazy and and you were saving money like crazy and and you were saving money like crazy and what you really want to do and what you what you really want to do and what you what you really want to do and what you really love is Pilate and you'd like to really love is Pilate and you'd like to really love is Pilate and you'd like to be a Pilates and strong and you never be a Pilates and strong and you never be a Pilates and strong and you never could have made the money being a could have made the money being a could have made the money being a Pilates instructor you could in Pilates instructor you could in Pilates instructor you could in corporate America but because you save corporate America but because you save corporate America but because you save so much in creative financial so much in creative financial so much in creative financial independence you bagged the corporate independence you bagged the corporate independence you bagged the corporate job and you go ficha Pilate or whatever job and you go ficha Pilate or whatever job and you go ficha Pilate or whatever it is and so the money is not the it is and so the money is not the it is and so the money is not the central goal the money is creating the central goal the money is creating the central goal the money is creating the independence to do what you love as an independence to do what you love as an independence to do what you love as an EV okay EV okay EV okay and potentially as a bouquet do you and potentially as a bouquet do you and potentially as a bouquet do you think it would be accurate if in the think it would be accurate if in the think it would be accurate if in the fire context retirement was sort of an fire context retirement was sort of an fire context retirement was sort of an another word for a well-funded career another word for a well-funded career another word for a well-funded career change or does it go beyond that I think change or does it go beyond that I think change or does it go beyond that I think it's fine to call it fire because there it's fine to call it fire because there it's fine to call it fire because there are people who I mean I I consider are people who I mean I I consider are people who I mean I I consider myself to have been retired one even myself to have been retired one even myself to have been retired one even though I work I I retired and I goofed though I work I I retired and I goofed though I work I I retired and I goofed off and I didn't really work in any off and I didn't really work in any off and I didn't really work in any significant way for four years after I significant way for four years after I significant way for four years after I retired and I went back to work because retired and I went back to work because retired and I went back to work because it was fun to work and when it's not fun it was fun to work and when it's not fun it was fun to work and when it's not fun anymore I won't work anymore I won't work anymore I won't work and so after not really working for four and so after not really working for four and so after not really working for four years I only worked because I wanted and years I only worked because I wanted and years I only worked because I wanted and to this moment years old I work a lot to this moment years old I work a lot to this moment years old I work a lot but I only do work that brings me joy but I only do work that brings me joy but I only do work that brings me joy and any money from it is just almost and any money from it is just almost and any money from it is just almost irrelevant because I created the irrelevant because I created the irrelevant because I created the financial independent when I was so financial independent when I was so financial independent when I was so young that I really never had to work so young that I really never had to work so young that I really never had to work so when you talk about fire and you're when you talk about fire and you're when you talk about fire and you're looking at it from the suze orman prism looking at it from the suze orman prism looking at it from the suze orman prism that yeah this financial independence that yeah this financial independence that yeah this financial independence part okay but the whole thing I retire part okay but the whole thing I retire part okay but the whole thing I retire early that's bogus it's not both because early that's bogus it's not both because early that's bogus it's not both because maybe in the way Suzy was looking at it maybe in the way Suzy was looking at it maybe in the way Suzy was looking at it it made sense to her but to me retire it made sense to her but to me retire it made sense to her but to me retire early means that you created freedom for early means that you created freedom for early means that you created freedom for yourself and you created the ability to yourself and you created the ability to yourself and you created the ability to do what you wish with your life and do what you wish with your life and do what you wish with your life and whatever that will be one of the issues whatever that will be one of the issues whatever that will be one of the issues is help and it's studios e for me is help and it's studios e for me is help and it's studios e for me that's an issue how do you handle health that's an issue how do you handle health that's an issue how do you handle health if you retire really early and that's if you retire really early and that's if you retire really early and that's something that in our American system we something that in our American system we something that in our American system we don't have well thought out how people don't have well thought out how people don't have well thought out how people provide for their health how they do provide for their health how they do provide for their health how they do insurance and all that so that is a insurance and all that so that is a insurance and all that so that is a question mark how you do it I have question mark how you do it I have question mark how you do it I have cancer I was diagnosed almost years cancer I was diagnosed almost years cancer I was diagnosed almost years ago ago ago I'm in many ways historically I would be I'm in many ways historically I would be I'm in many ways historically I would be uninsurable so that is a factor that I uninsurable so that is a factor that I uninsurable so that is a factor that I have to deal with but it doesn't negate have to deal with but it doesn't negate have to deal with but it doesn't negate the fact that I created independence in the fact that I created independence in the fact that I created independence in my life and I work doing what I love and my life and I work doing what I love and my life and I work doing what I love and if I don't want to work I won't work if I don't want to work I won't work if I don't want to work I won't work either tell me about how you how you either tell me about how you how you either tell me about how you how you handle that and how you recommend people handle that and how you recommend people handle that and how you recommend people handle that you you had cancer if that handle that you you had cancer if that handle that you you had cancer if that was ten years ago that was before Obama was ten years ago that was before Obama was ten years ago that was before Obama insurance had yeah the pre-existing insurance had yeah the pre-existing insurance had yeah the pre-existing condition so I was and with my radio condition so I was and with my radio condition so I was and with my radio show I've always been able to get show I've always been able to get show I've always been able to get benefits through one of the big radio benefits through one of the big radio benefits through one of the big radio companies so I ended up with something companies so I ended up with something companies so I ended up with something that with cancer I was not having to that with cancer I was not having to that with cancer I was not having to worry about how it was going to be worry about how it was going to be worry about how it was going to be insured and looking forward you know we insured and looking forward you know we insured and looking forward you know we may have an issue with pre-existing may have an issue with pre-existing may have an issue with pre-existing conditions people being covered for conditions people being covered for conditions people being covered for those there are so many uncertainties in those there are so many uncertainties in those there are so many uncertainties in life you can't account for every life you can't account for every life you can't account for every possibility and don't allow worry about possibility and don't allow worry about possibility and don't allow worry about how you're gonna get out of bridge or how you're gonna get out of bridge or how you're gonna get out of bridge or something like that to keep you from the something like that to keep you from the something like that to keep you from the goal in the target the target is to goal in the target the target is to goal in the target the target is to create breathing space in your life to create breathing space in your life to create breathing space in your life to create financial independence and to do create financial independence and to do create financial independence and to do that if you really come into the whole that if you really come into the whole that if you really come into the whole idea of the fire movement based on the idea of the fire movement based on the idea of the fire movement based on the run-up in stock I want you to really run-up in stock I want you to really run-up in stock I want you to really step back from that and know that you've step back from that and know that you've step back from that and know that you've got to do the hard work it's got to be got to do the hard work it's got to be got to do the hard work it's got to be about you saving a huge amount of what about you saving a huge amount of what about you saving a huge amount of what you make and you cannot help on stock you make and you cannot help on stock you make and you cannot help on stock market gains being what's going to fund market gains being what's going to fund market gains being what's going to fund that financial independence or the that financial independence or the that financial independence or the ability to retire early ability to retire early ability to retire early it's got to be habits built on you it's got to be habits built on you it's got to be habits built on you living a more frugal life and living on living a more frugal life and living on living a more frugal life and living on substantially less than what you make substantially less than what you make substantially less than what you make and the power you get out of that is you and the power you get out of that is you and the power you get out of that is you when you create the freedom in your life when you create the freedom in your life when you create the freedom in your life to save enormous sums of money to save enormous sums of money to save enormous sums of money it creates freedom from fear let's say it creates freedom from fear let's say it creates freedom from fear let's say you're working in a place where people you're working in a place where people you're working in a place where people are facing layoffs are facing layoffs are facing layoffs there are rumors of layoffs even a there are rumors of layoffs even a there are rumors of layoffs even a strong economy people get laid off all strong economy people get laid off all strong economy people get laid off all the time if you have been saving a huge the time if you have been saving a huge the time if you have been saving a huge amount of money you're not afraid about amount of money you're not afraid about amount of money you're not afraid about where you're gonna make that rep pain where you're gonna make that rep pain where you're gonna make that rep pain that brother pay that mortgage or make a that brother pay that mortgage or make a that brother pay that mortgage or make a car payment or whatever because you have car payment or whatever because you have car payment or whatever because you have been living your life where you're been living your life where you're been living your life where you're living in a way that you're not creating living in a way that you're not creating living in a way that you're not creating financial insecurity so do you see fire financial insecurity so do you see fire financial insecurity so do you see fire as the next progression as you move from as the next progression as you move from as the next progression as you move from financial insecurity to stability and financial insecurity to stability and financial insecurity to stability and then to freedom yeah whatever you call then to freedom yeah whatever you call then to freedom yeah whatever you call it I love the point phrase fire because it I love the point phrase fire because it I love the point phrase fire because it's so easy for people to grasp that it's so easy for people to grasp that it's so easy for people to grasp that the the idea the goal is not easy to the the idea the goal is not easy to the the idea the goal is not easy to achieve it's like for people that are achieve it's like for people that are achieve it's like for people that are overweight and aren't exercising you overweight and aren't exercising you overweight and aren't exercising you know that taking on that dual thing of know that taking on that dual thing of know that taking on that dual thing of starting an exercise program watching starting an exercise program watching starting an exercise program watching what you eat losing weight getting to what you eat losing weight getting to what you eat losing weight getting to where you got healthy blood pressure and where you got healthy blood pressure and where you got healthy blood pressure and all that those things aren't easy and all that those things aren't easy and all that those things aren't easy and this isn't either but the result are so this isn't either but the result are so this isn't either but the result are so valuable and that's why I encourage you valuable and that's why I encourage you valuable and that's why I encourage you even if you start to try to live a more even if you start to try to live a more even if you start to try to live a more frugal life and you fail what you try frugal life and you fail what you try frugal life and you fail what you try again you fail twice you stay at it but again you fail twice you stay at it but again you fail twice you stay at it but there's lowering the anxiety and there's lowering the anxiety and there's lowering the anxiety and financial pressure in your life I can't financial pressure in your life I can't financial pressure in your life I can't even put a price on it or a value on it even put a price on it or a value on it even put a price on it or a value on it it's so great for your mental well-being it's so great for your mental well-being it's so great for your mental well-being and even your physical well-being and even your physical well-being and even your physical well-being there's so many people report enormous there's so many people report enormous there's so many people report enormous layers of anxiety when they ope that you layers of anxiety when they ope that you layers of anxiety when they ope that you eliminate when you don't owe anybody any eliminate when you don't owe anybody any eliminate when you don't owe anybody any money absolutely yeah and you know I money absolutely yeah and you know I money absolutely yeah and you know I despise debt I don't carry any debt of despise debt I don't carry any debt of despise debt I don't carry any debt of any kind and it has served me so well any kind and it has served me so well any kind and it has served me so well all through the decade absolutely I love all through the decade absolutely I love all through the decade absolutely I love your story the first time that you came your story the first time that you came your story the first time that you came on the show we we talked quite a bit on the show we we talked quite a bit on the show we we talked quite a bit about your personal story how you about your personal story how you about your personal story how you started a travel agency when you were started a travel agency when you were started a travel agency when you were and sold it by the time you were and and sold it by the time you were and and sold it by the time you were and that was what allowed you to retire that was what allowed you to retire that was what allowed you to retire early early early would you would you recommend that that would you would you recommend that that would you would you recommend that that somebody who wanted to reach financial somebody who wanted to reach financial somebody who wanted to reach financial independence or become fire would you independence or become fire would you independence or become fire would you recommend that they also take an recommend that they also take an recommend that they also take an entrepreneurial route the way that you entrepreneurial route the way that you entrepreneurial route the way that you did most of us are not wired to be did most of us are not wired to be did most of us are not wired to be entrepreneurs but if you are an entrepreneurs but if you are an entrepreneurs but if you are an entrepreneurial personality you have to entrepreneurial personality you have to entrepreneurial personality you have to take a lot of risk but you also have to take a lot of risk but you also have to take a lot of risk but you also have to love running your own business and I do love running your own business and I do love running your own business and I do love that just for to Who I am and there love that just for to Who I am and there love that just for to Who I am and there is no one path to creating that is no one path to creating that is no one path to creating that breathing space in your life that will breathing space in your life that will breathing space in your life that will ultimately lead the financial ultimately lead the financial ultimately lead the financial independent I just got lucky because I independent I just got lucky because I independent I just got lucky because I was hitting all the check mark without was hitting all the check mark without was hitting all the check mark without even realizing it and hit a point by a even realizing it and hit a point by a even realizing it and hit a point by a where I was uneasy Street forever I mean where I was uneasy Street forever I mean where I was uneasy Street forever I mean how great is that how great is that how great is that and so everything worked for me but for and so everything worked for me but for and so everything worked for me but for each individual they'll have to find each individual they'll have to find each individual they'll have to find their own path but the core is their own path but the core is their own path but the core is regardless of how you want to get it regardless of how you want to get it regardless of how you want to get it done no matter what done no matter what done no matter what Frick's you hear no matter what methods Frick's you hear no matter what methods Frick's you hear no matter what methods other people used before is always other people used before is always other people used before is always always you have to live on less than always you have to live on less than always you have to live on less than what you may I mean I I have a relative what you may I mean I I have a relative what you may I mean I I have a relative I'm going to say which one but I am I'm going to say which one but I am I'm going to say which one but I am relative relative relative there's always looking for the quick there's always looking for the quick there's always looking for the quick school the kind of person who always school the kind of person who always school the kind of person who always thinks that some new fad some new thing thinks that some new fad some new thing thinks that some new fad some new thing is what's going to lead to incredible is what's going to lead to incredible is what's going to lead to incredible wealth the reality is there's not going wealth the reality is there's not going wealth the reality is there's not going to be the quick store it's not going to to be the quick store it's not going to to be the quick store it's not going to go being about going to buy a lottery go being about going to buy a lottery go being about going to buy a lottery ticket to win a huge pot of money it's ticket to win a huge pot of money it's ticket to win a huge pot of money it's all about what's in our heads what's in all about what's in our heads what's in all about what's in our heads what's in our heart and our relationship with our heart and our relationship with our heart and our relationship with money I know talking about relationship money I know talking about relationship money I know talking about relationship of money is kind of touchy-feely but of money is kind of touchy-feely but of money is kind of touchy-feely but there is a relationship with money and I there is a relationship with money and I there is a relationship with money and I have a son who's I'm sorry who's have a son who's I'm sorry who's have a son who's I'm sorry who's oh he would kill me I just gave his oh he would kill me I just gave his oh he would kill me I just gave his wrong wrong wrong thirteen-year-old son is one of those thirteen-year-old son is one of those thirteen-year-old son is one of those people who spent every dollar that's people who spent every dollar that's people who spent every dollar that's ever going to exist in his life before ever going to exist in his life before ever going to exist in his life before he's made he's just a spender and I he's made he's just a spender and I he's made he's just a spender and I don't know if there will be something at don't know if there will be something at don't know if there will be something at some point that will trigger a change in some point that will trigger a change in some point that will trigger a change in that personality but it's up to him you that personality but it's up to him you that personality but it's up to him you know he knows my deal he knows how I am know he knows my deal he knows how I am know he knows my deal he knows how I am about money he's very different and it about money he's very different and it about money he's very different and it will be up to him at some point to will be up to him at some point to will be up to him at some point to realize if he will fit it's up to him to realize if he will fit it's up to him to realize if he will fit it's up to him to not have so much one itis and learn that not have so much one itis and learn that not have so much one itis and learn that the eye should be on the prize and the the eye should be on the prize and the the eye should be on the prize and the prize is financial independence not what prize is financial independence not what prize is financial independence not what you think is up if he was sitting here you think is up if he was sitting here you think is up if he was sitting here with me he's really self-aware he'd say with me he's really self-aware he'd say with me he's really self-aware he'd say yeah I just don't know how to stop yeah I just don't know how to stop yeah I just don't know how to stop myself I just want this not what the myself I just want this not what the myself I just want this not what the other every time he makes money he other every time he makes money he other every time he makes money he spends it so then what would you tell spends it so then what would you tell spends it so then what would you tell him or anybody listening who's in their him or anybody listening who's in their him or anybody listening who's in their s or s or s who's like him who who s or s or s who's like him who who s or s or s who's like him who who maybe wants to wants to want less wants maybe wants to wants to want less wants maybe wants to wants to want less wants to be less of a spender how do you to be less of a spender how do you to be less of a spender how do you mentally make that transition it's the mentally make that transition it's the mentally make that transition it's the reason why I said losing weight or reason why I said losing weight or reason why I said losing weight or eating better are two things that almost eating better are two things that almost eating better are two things that almost all of us know we should do but we just all of us know we should do but we just all of us know we should do but we just can't seem to bring ourselves to do can't seem to bring ourselves to do can't seem to bring ourselves to do people know that they would like to not people know that they would like to not people know that they would like to not feel financial pressure but you have to feel financial pressure but you have to feel financial pressure but you have to want that financial independence enough want that financial independence enough want that financial independence enough that you're willing to start making that you're willing to start making that you're willing to start making changes in your life and I think it changes in your life and I think it changes in your life and I think it starts with someone who's a real spender starts with someone who's a real spender starts with someone who's a real spender and they're far from what we're talking and they're far from what we're talking and they're far from what we're talking about about about it starts with putting money aside it starts with putting money aside it starts with putting money aside automatically every pay period if you automatically every pay period if you automatically every pay period if you work at a company that has some kind of work at a company that has some kind of work at a company that has some kind of retirement plan and if they don't that retirement plan and if they don't that retirement plan and if they don't that you automatically are putting money you automatically are putting money you automatically are putting money every pay period or at least every month every pay period or at least every month every pay period or at least every month into a Roth IRA that it starts with into a Roth IRA that it starts with into a Roth IRA that it starts with changing your habits building your changing your habits building your changing your habits building your where you learn in step by step how to where you learn in step by step how to where you learn in step by step how to save instead of out of step pretty dull save instead of out of step pretty dull save instead of out of step pretty dull stuff actually to get somebody no it stuff actually to get somebody no it stuff actually to get somebody no it really it is dull if somebody is a really it is dull if somebody is a really it is dull if somebody is a spender holic you start with little baby spender holic you start with little baby spender holic you start with little baby step to get them to East by piece pull step to get them to East by piece pull step to get them to East by piece pull back from being a spender halt the back from being a spender halt the back from being a spender halt the health analogy is very fitting because health analogy is very fitting because health analogy is very fitting because it often happens one meal at a time one it often happens one meal at a time one it often happens one meal at a time one snack at a time exactly and you didn't snack at a time exactly and you didn't snack at a time exactly and you didn't know me then and you probably don't know know me then and you probably don't know know me then and you probably don't know this but I used to weigh substantially this but I used to weigh substantially this but I used to weigh substantially more than I do now I weighed pounds more than I do now I weighed pounds more than I do now I weighed pounds more than I do now I didn't know that more than I do now I didn't know that more than I do now I didn't know that yeah I'm a hundred and seventy five yeah I'm a hundred and seventy five yeah I'm a hundred and seventy five pounds now I'm five feet eleven more pounds now I'm five feet eleven more pounds now I'm five feet eleven more than ten years ago I was two hundred and than ten years ago I was two hundred and than ten years ago I was two hundred and fifty fifteen pounds two one five and I fifty fifteen pounds two one five and I fifty fifteen pounds two one five and I was six feet I've shrunk an inch over was six feet I've shrunk an inch over was six feet I've shrunk an inch over these for the decade but as shrunken these for the decade but as shrunken these for the decade but as shrunken pounds by forty pound and I did it slow pounds by forty pound and I did it slow pounds by forty pound and I did it slow and steady and I did it by going to tie and steady and I did it by going to tie and steady and I did it by going to tie counting of calories a lot of dietitians counting of calories a lot of dietitians counting of calories a lot of dietitians ate the whole calorie counting thing but ate the whole calorie counting thing but ate the whole calorie counting thing but I thirty counting calories and I weigh I thirty counting calories and I weigh I thirty counting calories and I weigh myself every single day in my life myself every single day in my life myself every single day in my life so even though I've been at a good so even though I've been at a good so even though I've been at a good weight or a more than a decade now I weight or a more than a decade now I weight or a more than a decade now I still weigh every single day today I was still weigh every single day today I was still weigh every single day today I was point four pound don't get the point point four pound don't get the point point four pound don't get the point four and so for those of us who have a four and so for those of us who have a four and so for those of us who have a tendency to go one direction when we tendency to go one direction when we tendency to go one direction when we really like to move our life another really like to move our life another really like to move our life another direction it really requires kind of direction it really requires kind of direction it really requires kind of like setting up rules for itself and like setting up rules for itself and like setting up rules for itself and don't try to do too much of one but take don't try to do too much of one but take don't try to do too much of one but take on one goal after another micro goals I on one goal after another micro goals I on one goal after another micro goals I guess you call them so that ultimately guess you call them so that ultimately guess you call them so that ultimately you get to where you're achieving the you get to where you're achieving the you get to where you're achieving the goal you really want for me it was to be goal you really want for me it was to be goal you really want for me it was to be much more fit as much more fit as much more fit as I love athletic and to be able to engage I love athletic and to be able to engage I love athletic and to be able to engage in those a lot more and to generally be in those a lot more and to generally be in those a lot more and to generally be healthier and like what I looked at in healthier and like what I looked at in healthier and like what I looked at in the mirror for other people let's say it the mirror for other people let's say it the mirror for other people let's say it involves the stuff we're talking about involves the stuff we're talking about involves the stuff we're talking about with money if you were in a place where with money if you were in a place where with money if you were in a place where you're kind of shaming yourself about you're kind of shaming yourself about you're kind of shaming yourself about how you handle money try to take on how you handle money try to take on how you handle money try to take on little teeny changes that are measurable little teeny changes that are measurable little teeny changes that are measurable and move those along because you can't and move those along because you can't and move those along because you can't go from where you're a spender holic to go from where you're a spender holic to go from where you're a spender holic to where suddenly you're financially where suddenly you're financially where suddenly you're financially independent right it requires a lot of independent right it requires a lot of independent right it requires a lot of small steps along the way and changes small steps along the way and changes small steps along the way and changes you have to be flexible particularly if you have to be flexible particularly if you have to be flexible particularly if you want to be part of the fire movement you want to be part of the fire movement you want to be part of the fire movement how you're going to achieve success may how you're going to achieve success may how you're going to achieve success may change over time you know people who change over time you know people who change over time you know people who during the real estate bust last decade during the real estate bust last decade during the real estate bust last decade had the guts start acquiring rental had the guts start acquiring rental had the guts start acquiring rental property a lot of those people who had property a lot of those people who had property a lot of those people who had lived on less than what they make had lived on less than what they make had lived on less than what they make had money available when bank loans weren't money available when bank loans weren't money available when bank loans weren't really available bought properties have really available bought properties have really available bought properties have seen enormous increases in wealth in so seen enormous increases in wealth in so seen enormous increases in wealth in so you build the base with the money you you build the base with the money you you build the base with the money you say that then makes the opportunities say that then makes the opportunities say that then makes the opportunities you can seize on available to you and you can seize on available to you and you can seize on available to you and those opportunities change over time those opportunities change over time those opportunities change over time right that's exactly what I did and that right that's exactly what I did and that right that's exactly what I did and that was what set me up for having a very was what set me up for having a very was what set me up for having a very good life in my s good life in my s good life in my s isn't it great you accomplished so much isn't it great you accomplished so much isn't it great you accomplished so much in your that now created the in your that now created the in your that now created the opportunity for you to teach others and opportunity for you to teach others and opportunity for you to teach others and to live the life you want to and you can to live the life you want to and you can to live the life you want to and you can do that or the rest of your life because do that or the rest of your life because do that or the rest of your life because you built the fundamental right one of you built the fundamental right one of you built the fundamental right one of the points that Suze brought up is that the points that Suze brought up is that the points that Suze brought up is that there are often extreme Black Swan I there are often extreme Black Swan I there are often extreme Black Swan I should say they're often extreme Black should say they're often extreme Black should say they're often extreme Black Swan events by definition that they Swan events by definition that they Swan events by definition that they don't happen often but there could be don't happen often but there could be don't happen often but there could be extreme Black Swan events a permanent extreme Black Swan events a permanent extreme Black Swan events a permanent disability or a loved one who suffers a disability or a loved one who suffers a disability or a loved one who suffers a very prolonged terminal illness very prolonged terminal illness very prolonged terminal illness requires round-the-clock care how does a requires round-the-clock care how does a requires round-the-clock care how does a person really any person whether they're person really any person whether they're person really any person whether they're fire or not fire or not fire or not how does a person prepare for those how does a person prepare for those how does a person prepare for those types of events financially speaking types of events financially speaking types of events financially speaking well you know life always throws well you know life always throws well you know life always throws curveballs and so you said fire or not I curveballs and so you said fire or not I curveballs and so you said fire or not I want to address it both ways because if want to address it both ways because if want to address it both ways because if you're part of the fire movement and you're part of the fire movement and you're part of the fire movement and you're living on less than what you make you're living on less than what you make you're living on less than what you make you've created more space in your life you've created more space in your life you've created more space in your life to be able to deal with an emergency to be able to deal with an emergency to be able to deal with an emergency that would happen let's say in a family that would happen let's say in a family that would happen let's say in a family or with a loved one and you're called or with a loved one and you're called or with a loved one and you're called upon to be the one to pitch in upon to be the one to pitch in upon to be the one to pitch in help or you are the one able to pitch in help or you are the one able to pitch in help or you are the one able to pitch in or help because you've been on this path or help because you've been on this path or help because you've been on this path board spinning but as part of that I board spinning but as part of that I board spinning but as part of that I like for you to make sure you have like for you to make sure you have like for you to make sure you have proper insurance various site and having proper insurance various site and having proper insurance various site and having proper insurance is something that is so proper insurance is something that is so proper insurance is something that is so overlooked and does not generally take a overlooked and does not generally take a overlooked and does not generally take a lot of resources away and that's whether lot of resources away and that's whether lot of resources away and that's whether you're working or you're not some of the you're working or you're not some of the you're working or you're not some of the insurance products are harder for you to insurance products are harder for you to insurance products are harder for you to be able to claim against if you have be able to claim against if you have be able to claim against if you have fully completely retired as an example fully completely retired as an example fully completely retired as an example disability insurance but often it's not disability insurance but often it's not disability insurance but often it's not your own disability it's disability of your own disability it's disability of your own disability it's disability of someone else where you're stepping in to someone else where you're stepping in to someone else where you're stepping in to help in most cases where somebody has to help in most cases where somebody has to help in most cases where somebody has to deal with a tragic circumstance going on deal with a tragic circumstance going on deal with a tragic circumstance going on or an emergency a health emergency or or an emergency a health emergency or or an emergency a health emergency or whatever they're already living on fumé whatever they're already living on fumé whatever they're already living on fumé and it's an event that is a toss traffic and it's an event that is a toss traffic and it's an event that is a toss traffic financially in addition to dealing with financially in addition to dealing with financially in addition to dealing with the human aspect so having built the human aspect so having built the human aspect so having built financial space in your life and going financial space in your life and going financial space in your life and going on a path towards financial independence on a path towards financial independence on a path towards financial independence really does help with the unexpected of really does help with the unexpected of really does help with the unexpected of them what types of insurance do you them what types of insurance do you them what types of insurance do you think a person should take out you think a person should take out you think a person should take out you mentioned long-term disability do you mentioned long-term disability do you mentioned long-term disability do you think also long-term care think also long-term care think also long-term care long-term care is something that I punt long-term care is something that I punt long-term care is something that I punt for someone's life Phil they're in their for someone's life Phil they're in their for someone's life Phil they're in their late s early thing is there's so much late s early thing is there's so much late s early thing is there's so much life between where most of us are age life between where most of us are age life between where most of us are age wise and the point where it becomes wise and the point where it becomes wise and the point where it becomes really a priority to worry about long really a priority to worry about long really a priority to worry about long term here if there are others that end term here if there are others that end term here if there are others that end on you having term life insurance is a on you having term life insurance is a on you having term life insurance is a high priority very few people have it high priority very few people have it high priority very few people have it and if you're in a relationship with a and if you're in a relationship with a and if you're in a relationship with a significant other you're married significant other you're married significant other you're married whatever you gotta have a will so many whatever you gotta have a will so many whatever you gotta have a will so many people die without a will and so many people die without a will and so many people die without a will and so many people now live together without being people now live together without being people now live together without being married to their partner if you don't married to their partner if you don't married to their partner if you don't have a will that person gets squeezed have a will that person gets squeezed have a will that person gets squeezed out and squeezed out hard and so family out and squeezed out hard and so family out and squeezed out hard and so family that someone may not even like gets that someone may not even like gets that someone may not even like gets their stuff instead of the person their stuff instead of the person their stuff instead of the person they've devoted their lives to so there they've devoted their lives to so there they've devoted their lives to so there are simple check mark of things that are simple check mark of things that are simple check mark of things that aren't hard to do don't take a lot of aren't hard to do don't take a lot of aren't hard to do don't take a lot of money don't take a lot of time but let's money don't take a lot of time but let's money don't take a lot of time but let's face it or kind of boring but taking face it or kind of boring but taking face it or kind of boring but taking care of those boring items can be care of those boring items can be care of those boring items can be essential at certain moments of your essential at certain moments of your essential at certain moments of your life one other thing I'll mention and I life one other thing I'll mention and I life one other thing I'll mention and I hate to mention this one too but I got hate to mention this one too but I got hate to mention this one too but I got to is making sure you have a healthcare to is making sure you have a healthcare to is making sure you have a healthcare directive especially if you live your directive especially if you live your directive especially if you live your life with someone you're not married to life with someone you're not married to life with someone you're not married to you want that individual to be your you want that individual to be your you want that individual to be your messenger and be the representative messenger and be the representative messenger and be the representative who's there to carry out your wishes and who's there to carry out your wishes and who's there to carry out your wishes and these forms are generally state specific these forms are generally state specific these forms are generally state specific usually official forms you just google usually official forms you just google usually official forms you just google advanced health care directive with your advanced health care directive with your advanced health care directive with your state name attached and you'll take care state name attached and you'll take care state name attached and you'll take care of that person or have them take care of of that person or have them take care of of that person or have them take care of you in a way they can't otherwise if you you in a way they can't otherwise if you you in a way they can't otherwise if you haven't done that simple paperwork earth haven't done that simple paperwork earth haven't done that simple paperwork earth right absolutely right absolutely right absolutely my parents just pretty dull stuff is my parents just pretty dull stuff is my parents just pretty dull stuff is yeah you know it's uh it's the stuff yeah you know it's uh it's the stuff yeah you know it's uh it's the stuff fair fair fair in hindsight you're glad you've done and in hindsight you're glad you've done and in hindsight you're glad you've done and you started I stepped over you were you started I stepped over you were you started I stepped over you were starting to say something about you all starting to say something about you all starting to say something about you all right oh just that my parents actually right oh just that my parents actually right oh just that my parents actually recently sat me down and showed me their recently sat me down and showed me their recently sat me down and showed me their medical directives and gave me all of medical directives and gave me all of medical directives and gave me all of the instructions for what they would the instructions for what they would the instructions for what they would want me to do in the event that they want me to do in the event that they want me to do in the event that they couldn't make decisions for themselves couldn't make decisions for themselves couldn't make decisions for themselves my mom when she was alive I sat down my mom when she was alive I sat down my mom when she was alive I sat down with her while she did her form and I with her while she did her form and I with her while she did her form and I didn't know what my mom really wanted didn't know what my mom really wanted didn't know what my mom really wanted and every question that had to do about and every question that had to do about and every question that had to do about keeping her alive she was like no no no keeping her alive she was like no no no keeping her alive she was like no no no no and that was great because I knew no and that was great because I knew no and that was great because I knew what he wanted I didn't have to be a what he wanted I didn't have to be a what he wanted I didn't have to be a mind reader mind reader mind reader right and then you don't have to right and then you don't have to right and then you don't have to second-guess that right I'll tell you second-guess that right I'll tell you second-guess that right I'll tell you something very personal something very personal something very personal my mom had a massive heart attack when I my mom had a massive heart attack when I my mom had a massive heart attack when I was out of the country I was her was out of the country I was her was out of the country I was her representative on her forms and none of representative on her forms and none of representative on her forms and none of my siblings would pull the plug on my my siblings would pull the plug on my my siblings would pull the plug on my mom who had an irreversible I mean she mom who had an irreversible I mean she mom who had an irreversible I mean she was done she was brain dead so we was done she was brain dead so we was done she was brain dead so we arranged a phone call and I did this arranged a phone call and I did this arranged a phone call and I did this satellite call with the doctor and he satellite call with the doctor and he satellite call with the doctor and he said what do you want to do and I said I said what do you want to do and I said I said what do you want to do and I said I want to execute my mom's wishes which is want to execute my mom's wishes which is want to execute my mom's wishes which is to discontinue all care and he kind of to discontinue all care and he kind of to discontinue all care and he kind of nervously laughed and he said that's nervously laughed and he said that's nervously laughed and he said that's what your two brothers and your sisters what your two brothers and your sisters what your two brothers and your sisters said you'd say said you'd say said you'd say so that's what we'll did because she had so that's what we'll did because she had so that's what we'll did because she had that healthcare directive it was clear that healthcare directive it was clear that healthcare directive it was clear what I was supposed to do and I carried what I was supposed to do and I carried what I was supposed to do and I carried out her wishes out her wishes out her wishes exactly is she Wow did that inspire your exactly is she Wow did that inspire your exactly is she Wow did that inspire your your siblings to set up healthcare your siblings to set up healthcare your siblings to set up healthcare directives of their own I have no idea directives of their own I have no idea directives of their own I have no idea about that about that about that since that day especially since two of since that day especially since two of since that day especially since two of them wanted to keep doing all kinds of them wanted to keep doing all kinds of them wanted to keep doing all kinds of interventions it was best that we not interventions it was best that we not interventions it was best that we not address that topic anymore they were a address that topic anymore they were a address that topic anymore they were a little or at me doing what but at least little or at me doing what but at least little or at me doing what but at least it was written so that you could point it was written so that you could point it was written so that you could point to what was written down and say hey to what was written down and say hey to what was written down and say hey this is this is what she said they had this is this is what she said they had this is this is what she said they had it still so I would say it since I was it still so I would say it since I was it still so I would say it since I was her appointed messenger so I would say her appointed messenger so I would say her appointed messenger so I would say it they weren't going to do any it they weren't going to do any it they weren't going to do any that's why doing these things because that's why doing these things because that's why doing these things because the dynamics of family never cease the the dynamics of family never cease the the dynamics of family never cease the surprise that when we get into a surprise that when we get into a surprise that when we get into a situation ever know in a good situation situation ever know in a good situation situation ever know in a good situation or a bad situation think about when or a bad situation think about when or a bad situation think about when we're with people at Thanksgiving or we're with people at Thanksgiving or we're with people at Thanksgiving or Christmas they behave an unusual way you Christmas they behave an unusual way you Christmas they behave an unusual way you know you never an underestimate how know you never an underestimate how know you never an underestimate how weird people are gonna behave in a good weird people are gonna behave in a good weird people are gonna behave in a good circumstance or a crisis and that's why circumstance or a crisis and that's why circumstance or a crisis and that's why making these decisions for yourself so making these decisions for yourself so making these decisions for yourself so are there any other issues the Suzie are there any other issues the Suzie are there any other issues the Suzie interview brought to light that perhaps interview brought to light that perhaps interview brought to light that perhaps the fire community may not have spent the fire community may not have spent the fire community may not have spent enough time thinking about issues like enough time thinking about issues like enough time thinking about issues like long-term care at long-term disability long-term care at long-term disability long-term care at long-term disability wills trusts advanced health care wills trusts advanced health care wills trusts advanced health care directives are there any other issues directives are there any other issues directives are there any other issues that people commonly overlooked when that people commonly overlooked when that people commonly overlooked when they're thinking about managing their they're thinking about managing their they're thinking about managing their money in their life okay there's gonna money in their life okay there's gonna money in their life okay there's gonna sound so weird people who are trying to sound so weird people who are trying to sound so weird people who are trying to adopt a lifestyle where they can move adopt a lifestyle where they can move adopt a lifestyle where they can move towards fire I don't want them to get towards fire I don't want them to get towards fire I don't want them to get shut down by any of these details we shut down by any of these details we shut down by any of these details we just thought don't worry so much about just thought don't worry so much about just thought don't worry so much about the what if of course the things we just the what if of course the things we just the what if of course the things we just talked about are things somebody should talked about are things somebody should talked about are things somebody should do but it's not the heart and soul of do but it's not the heart and soul of do but it's not the heart and soul of what the fire movement is about it's what the fire movement is about it's what the fire movement is about it's about creating by your choices the about creating by your choices the about creating by your choices the ability for you to be financially ability for you to be financially ability for you to be financially independent and so that's where I want independent and so that's where I want independent and so that's where I want your energy your brain power and your your energy your brain power and your your energy your brain power and your effort to go is towards the idea of effort to go is towards the idea of effort to go is towards the idea of living on standing less than what you living on standing less than what you living on standing less than what you make so that you create the opportunity make so that you create the opportunity make so that you create the opportunity to then have to worry about all the to then have to worry about all the to then have to worry about all the paperwork kind of things we were talking paperwork kind of things we were talking paperwork kind of things we were talking exactly and that paperwork is a lot exactly and that paperwork is a lot exactly and that paperwork is a lot easier to deal with when you don't have easier to deal with when you don't have easier to deal with when you don't have to iron a shirt and then commute to work to iron a shirt and then commute to work to iron a shirt and then commute to work % correct the goal is to create the % correct the goal is to create the % correct the goal is to create the freedom in your life and that's where freedom in your life and that's where freedom in your life and that's where the effort and energy have got and let the effort and energy have got and let the effort and energy have got and let me tell you something when I was in my me tell you something when I was in my me tell you something when I was in my s and right s and right s and right to grad school when I started living on to grad school when I started living on to grad school when I started living on every other paycheck when I was or every other paycheck when I was or every other paycheck when I was or and then I used that money to start my and then I used that money to start my and then I used that money to start my own business when I was and I knew my own business when I was and I knew my own business when I was and I knew my goal was to retire by the time I was goal was to retire by the time I was goal was to retire by the time I was and I missed it and I did it I wasn't and I missed it and I did it I wasn't and I missed it and I did it I wasn't thinking about well I gotta make sure I thinking about well I gotta make sure I thinking about well I gotta make sure I have proper life insurance or I haven't have proper life insurance or I haven't have proper life insurance or I haven't done a will yet I was only focused on done a will yet I was only focused on done a will yet I was only focused on the furnace part and that's where you the furnace part and that's where you the furnace part and that's where you should be focused and that is what is should be focused and that is what is should be focused and that is what is your plan to live on less than what you your plan to live on less than what you your plan to live on less than what you make how are you going to execute that make how are you going to execute that make how are you going to execute that and the rest of the stuff will take care and the rest of the stuff will take care and the rest of the stuff will take care of itself when you get to a stage in of itself when you get to a stage in of itself when you get to a stage in your life that you've created that your life that you've created that your life that you've created that financial independence and how did you financial independence and how did you financial independence and how did you do it what were some of the key steps do it what were some of the key steps do it what were some of the key steps that you took that allowed you to live that you took that allowed you to live that you took that allowed you to live on substantially less than what you made on substantially less than what you made on substantially less than what you made when you're a college student you live when you're a college student you live when you're a college student you live on very little and so when I finished on very little and so when I finished on very little and so when I finished college and I was earning than a decent college and I was earning than a decent college and I was earning than a decent check out of grad school it didn't check out of grad school it didn't check out of grad school it didn't require a lot for me to live on every require a lot for me to live on every require a lot for me to live on every other paycheck because I'd been living other paycheck because I'd been living other paycheck because I'd been living on varying little I mean part of the on varying little I mean part of the on varying little I mean part of the time I was in college my dad was time I was in college my dad was time I was in college my dad was unemployed we didn't have microwaves but unemployed we didn't have microwaves but unemployed we didn't have microwaves but I lived on a lot of canned food and I I lived on a lot of canned food and I I lived on a lot of canned food and I lived an extremely frugal life so I was lived an extremely frugal life so I was lived an extremely frugal life so I was already of that mindset already of that mindset already of that mindset I was already comfortable with that and I was already comfortable with that and I was already comfortable with that and so I didn't ramp up my lifestyle when I so I didn't ramp up my lifestyle when I so I didn't ramp up my lifestyle when I finished school and was working and my finished school and was working and my finished school and was working and my first career type job that's really first career type job that's really first career type job that's really where the inflection point is when you where the inflection point is when you where the inflection point is when you start working it's pretty easy to amp up start working it's pretty easy to amp up start working it's pretty easy to amp up your lifestyle to whatever your paycheck your lifestyle to whatever your paycheck your lifestyle to whatever your paycheck if you catch somebody early enough with if you catch somebody early enough with if you catch somebody early enough with the idea of living a financially the idea of living a financially the idea of living a financially independent life doing it before you amp independent life doing it before you amp independent life doing it before you amp up lifestyle is when it's ultra easy to up lifestyle is when it's ultra easy to up lifestyle is when it's ultra easy to do what I did under what circumstances do what I did under what circumstances do what I did under what circumstances or under what decision making matrix or under what decision making matrix or under what decision making matrix does some degree of lifestyle does some degree of lifestyle does some degree of lifestyle inflation become justified because inflation become justified because inflation become justified because certainly you don't still live like a certainly you don't still live like a certainly you don't still live like a college student so how did you decide to college student so how did you decide to college student so how did you decide to make those incremental increases to your make those incremental increases to your make those incremental increases to your lifestyle this is gonna start to make me lifestyle this is gonna start to make me lifestyle this is gonna start to make me sound a little irrelevant but I will lay sound a little irrelevant but I will lay sound a little irrelevant but I will lay it out for you I have managed to build it out for you I have managed to build it out for you I have managed to build up enough money over the decades that we up enough money over the decades that we up enough money over the decades that we live a very luxurious lifestyle today we live a very luxurious lifestyle today we live a very luxurious lifestyle today we live in a very high-end home that we own live in a very high-end home that we own live in a very high-end home that we own for cash we have a vacation home on the for cash we have a vacation home on the for cash we have a vacation home on the ocean we own for cash we travel as we ocean we own for cash we travel as we ocean we own for cash we travel as we wish what I was able to do is as I built wish what I was able to do is as I built wish what I was able to do is as I built up well it meant that as long as it up well it meant that as long as it up well it meant that as long as it didn't involve going into debt didn't involve going into debt didn't involve going into debt we had the freedom to live with more and we had the freedom to live with more and we had the freedom to live with more and more luxury if you will but I'm still in more luxury if you will but I'm still in more luxury if you will but I'm still in so many ways the same person I was then so many ways the same person I was then so many ways the same person I was then I don't like to pay parking when I'm I don't like to pay parking when I'm I don't like to pay parking when I'm traveling somewhere and I don't have a traveling somewhere and I don't have a traveling somewhere and I don't have a rental car I travel uber Express pool or rental car I travel uber Express pool or rental car I travel uber Express pool or lyft line where I'm sharing rides with lyft line where I'm sharing rides with lyft line where I'm sharing rides with other people because I don't want to other people because I don't want to other people because I don't want to spend the money I was in New York spend the money I was in New York spend the money I was in New York working last week and I was on expense working last week and I was on expense working last week and I was on expense account doing television in New York I account doing television in New York I account doing television in New York I wrote the subway when I could have wrote the subway when I could have wrote the subway when I could have ridden in a you know a black car or ridden in a you know a black car or ridden in a you know a black car or whatever cuz wasting money just doesn't whatever cuz wasting money just doesn't whatever cuz wasting money just doesn't make sense to me I get excited when I go make sense to me I get excited when I go make sense to me I get excited when I go to Dollar Tree I use coupon so a lot of to Dollar Tree I use coupon so a lot of to Dollar Tree I use coupon so a lot of me is wire just as it always has been me is wire just as it always has been me is wire just as it always has been but remember I said the very beginning but remember I said the very beginning but remember I said the very beginning you have to have a goal what are you you have to have a goal what are you you have to have a goal what are you trying to achieve and when I retired I trying to achieve and when I retired I trying to achieve and when I retired I moved immediately to the beach because moved immediately to the beach because moved immediately to the beach because that was what I wanted and I've lived at that was what I wanted and I've lived at that was what I wanted and I've lived at the beach full-time or part-time for the the beach full-time or part-time for the the beach full-time or part-time for the last years because that was what for last years because that was what for last years because that was what for me was the goal I wanted so it's not me was the goal I wanted so it's not me was the goal I wanted so it's not about living a life of frugality forever about living a life of frugality forever about living a life of frugality forever it's about living a life that affords it's about living a life that affords it's about living a life that affords you the choices you want through your you the choices you want through your you the choices you want through your entire life entire life entire life that's perfect Clark is there anything that's perfect Clark is there anything that's perfect Clark is there anything that I haven't asked that you would like that I haven't asked that you would like that I haven't asked that you would like to emphasize any final messages that you to emphasize any final messages that you to emphasize any final messages that you want to share with the audience no but want to share with the audience no but want to share with the audience no but isn't it funny that I ended at the same isn't it funny that I ended at the same isn't it funny that I ended at the same class and B thing that suze orman was class and B thing that suze orman was class and B thing that suze orman was that three and we've achieved that where that three and we've achieved that where that three and we've achieved that where we live that independent lifestyle so I we live that independent lifestyle so I we live that independent lifestyle so I hope it made me not less relatable hope it made me not less relatable hope it made me not less relatable there's a big difference between buying there's a big difference between buying there's a big difference between buying a couple homes in cash while because a couple homes in cash while because a couple homes in cash while because you've thought very critically about you've thought very critically about you've thought very critically about what are your highest priorities and what are your highest priorities and what are your highest priorities and values and what would really allow you values and what would really allow you values and what would really allow you to enjoy your life what you've done is to enjoy your life what you've done is to enjoy your life what you've done is you've identified what's important to you've identified what's important to you've identified what's important to you you spend your money there and then you you spend your money there and then you you spend your money there and then you also identify what's not important you also identify what's not important you also identify what's not important to you and you don't spend money there to you and you don't spend money there to you and you don't spend money there so even on an expense account you'll so even on an expense account you'll so even on an expense account you'll ride the subway as we covered at the ride the subway as we covered at the ride the subway as we covered at the beginning of this interview when we were beginning of this interview when we were beginning of this interview when we were in San Diego you went to in-n-out burger in San Diego you went to in-n-out burger in San Diego you went to in-n-out burger three times where you easily had the three times where you easily had the three times where you easily had the money to go to some fancy Southern money to go to some fancy Southern money to go to some fancy Southern California restaurant but you prefer California restaurant but you prefer California restaurant but you prefer in-and-out burger why wouldn't you eat in-and-out burger why wouldn't you eat in-and-out burger why wouldn't you eat there exactly and where we're flying to there exactly and where we're flying to there exactly and where we're flying to California tomorrow at : our California tomorrow at : our California tomorrow at : our -minute flight and we're going on -minute flight and we're going on -minute flight and we're going on Southwest as there was the cheapest and Southwest as there was the cheapest and Southwest as there was the cheapest and a lineup in the a B and C group like a lineup in the a B and C group like a lineup in the a B and C group like anybody else and that to me is this anybody else and that to me is this anybody else and that to me is this smart way to spend money because I'll smart way to spend money because I'll smart way to spend money because I'll buy something that has long-term value buy something that has long-term value buy something that has long-term value and I I will spend more money for it and and I I will spend more money for it and and I I will spend more money for it and I'll invest but I won't spend on normal I'll invest but I won't spend on normal I'll invest but I won't spend on normal lifestyle normal thing and people will lifestyle normal thing and people will lifestyle normal thing and people will come up all the time so funny I would come up all the time so funny I would come up all the time so funny I would tell you probably two out of every three tell you probably two out of every three tell you probably two out of every three flights I go on somebody comes up to me flights I go on somebody comes up to me flights I go on somebody comes up to me and says I can't believe you're sitting and says I can't believe you're sitting and says I can't believe you're sitting here in Coke and I and I always give here in Coke and I and I always give here in Coke and I and I always give pretty much the same response I can't pretty much the same response I can't pretty much the same response I can't believe you don't know me well I have to believe you don't know me well I have to believe you don't know me well I have to know that I would be sitting in coach know that I would be sitting in coach know that I would be sitting in coach [Laughter] [Laughter] [Laughter] lutely absolutely you know I remember lutely absolutely you know I remember lutely absolutely you know I remember Clark when we met in San Diego one vivid Clark when we met in San Diego one vivid Clark when we met in San Diego one vivid memory that I have of you was you had memory that I have of you was you had memory that I have of you was you had your your merchandise like hats or your your your merchandise like hats or your your your merchandise like hats or your various other items with the Clark various other items with the Clark various other items with the Clark Howard logo on it and I remember at the Howard logo on it and I remember at the Howard logo on it and I remember at the end of the conference you gathered up end of the conference you gathered up end of the conference you gathered up the stuff that hadn't been taken and you the stuff that hadn't been taken and you the stuff that hadn't been taken and you personally did this you personally personally did this you personally personally did this you personally gathered the stuff that hadn't been gathered the stuff that hadn't been gathered the stuff that hadn't been taken and repacked it so that it taken and repacked it so that it taken and repacked it so that it wouldn't get thrown away it wouldn't go wouldn't get thrown away it wouldn't go wouldn't get thrown away it wouldn't go to waste to waste to waste so true and we handed out those hats so true and we handed out those hats so true and we handed out those hats that we had not given out at the that we had not given out at the that we had not given out at the conference we handed them out at so many conference we handed them out at so many conference we handed them out at so many different event that way we were able to different event that way we were able to different event that way we were able to spread the word so many other ways spread the word so many other ways spread the word so many other ways instead of looking at it as disposable instead of looking at it as disposable instead of looking at it as disposable money my money is never disposed hated money my money is never disposed hated money my money is never disposed hated right and it was such a perfect example right and it was such a perfect example right and it was such a perfect example of the way that you walk the talk I mean of the way that you walk the talk I mean of the way that you walk the talk I mean the monetary value of those hats that the monetary value of those hats that the monetary value of those hats that you gathered up I imagine couldn't have you gathered up I imagine couldn't have you gathered up I imagine couldn't have been more than $ maybe at the most been more than $ maybe at the most been more than $ maybe at the most but okay well even if it was or but okay well even if it was or but okay well even if it was or depending on the you know the number of depending on the you know the number of depending on the you know the number of hats that were remaining you weren't hats that were remaining you weren't hats that were remaining you weren't gonna just let that go to waste gonna just let that go to waste gonna just let that go to waste oh and by the way if they had been only oh and by the way if they had been only oh and by the way if they had been only or $ worth the Hat I still would or $ worth the Hat I still would or $ worth the Hat I still would have collected them and brought them have collected them and brought them have collected them and brought them back exactly a lot of people it's not I back exactly a lot of people it's not I back exactly a lot of people it's not I mean it's Who I am to my oh yeah I mean it's Who I am to my oh yeah I mean it's Who I am to my oh yeah I certainly got that from talking to you certainly got that from talking to you certainly got that from talking to you you also mentioned you also mentioned you also mentioned oh you mentioned something about you'd oh you mentioned something about you'd oh you mentioned something about you'd made arrangements for your own was it made arrangements for your own was it made arrangements for your own was it that you made arrangements for your own that you made arrangements for your own that you made arrangements for your own cremation or your end-of-life something cremation or your end-of-life something cremation or your end-of-life something about funeral expenses so that your about funeral expenses so that your about funeral expenses so that your family wouldn't have to pay for funeral family wouldn't have to pay for funeral family wouldn't have to pay for funeral expenses yeah donating my body science expenses yeah donating my body science expenses yeah donating my body science so that there's no you know yes yes I so that there's no you know yes yes I so that there's no you know yes yes I remember that you made arrangements to remember that you made arrangements to remember that you made arrangements to donate your body to science so that your donate your body to science so that your donate your body to science so that your family wouldn't have to pay for funeral family wouldn't have to pay for funeral family wouldn't have to pay for funeral cost and hopefully all my vital organs cost and hopefully all my vital organs cost and hopefully all my vital organs will be good enough at least my eyes will be good enough at least my eyes will be good enough at least my eyes transplant into people so that other transplant into people so that other transplant into people so that other people will have people will have people will have hopefully the gift of life or the gift hopefully the gift of life or the gift hopefully the gift of life or the gift right absolutely it's a win-win right right absolutely it's a win-win right right absolutely it's a win-win right well thank you so much Clark that's one well thank you so much Clark that's one well thank you so much Clark that's one of the things I love about you is is how of the things I love about you is is how of the things I love about you is is how authentic you are and how you live authentic you are and how you live authentic you are and how you live frugality but not frugality in a vacuum frugality but not frugality in a vacuum frugality but not frugality in a vacuum frugality in the context of your frugality in the context of your frugality in the context of your personal priorities exactly I got to personal priorities exactly I got to personal priorities exactly I got to tell you you made a great impression on tell you you made a great impression on tell you you made a great impression on me and I'm glad I made it great on you me and I'm glad I made it great on you me and I'm glad I made it great on you and we're both of like mind and being and we're both of like mind and being and we're both of like mind and being genuine is a currency that is so genuine is a currency that is so genuine is a currency that is so valuable and you're so lucky that that's valuable and you're so lucky that that's valuable and you're so lucky that that's who you are and that you have and you who you are and that you have and you who you are and that you have and you got that brilliant mind of you so all got that brilliant mind of you so all got that brilliant mind of you so all that's going to serve you so well over that's going to serve you so well over that's going to serve you so well over time thank you so much I really time thank you so much I really time thank you so much I really appreciate that what are some of the key appreciate that what are some of the key appreciate that what are some of the key takeaways that we got from this takeaways that we got from this takeaways that we got from this interview here are four number one we interview here are four number one we interview here are four number one we are social creatures our attitude and are social creatures our attitude and are social creatures our attitude and behaviors toward savings is very behaviors toward savings is very behaviors toward savings is very culturally influenced the level of culturally influenced the level of culturally influenced the level of savings that we consider to be normal is savings that we consider to be normal is savings that we consider to be normal is highly influenced by the culture around highly influenced by the culture around highly influenced by the culture around us if you look at other cultures us if you look at other cultures us if you look at other cultures particularly in Asia very common that particularly in Asia very common that particularly in Asia very common that people save a third of what they make if people save a third of what they make if people save a third of what they make if the scent of what they make there's not the scent of what they make there's not the scent of what they make there's not government support for people who hit government support for people who hit government support for people who hit hard times and a lot of Asia and so it's hard times and a lot of Asia and so it's hard times and a lot of Asia and so it's just built into the culture that you just built into the culture that you just built into the culture that you know for every equivalent of dollar you know for every equivalent of dollar you know for every equivalent of dollar you earn that you need to save cents earn that you need to save cents earn that you need to save cents cents cents and people just live that cents cents and people just live that cents cents and people just live that way so how do we apply this knowledge to way so how do we apply this knowledge to way so how do we apply this knowledge to our lives given that the majority of our lives given that the majority of our lives given that the majority of people who listen to this podcast live people who listen to this podcast live people who listen to this podcast live in the United States which does not have in the United States which does not have in the United States which does not have norms that are heavily around saving it norms that are heavily around saving it norms that are heavily around saving it does not have a culture of saving or a does not have a culture of saving or a does not have a culture of saving or a culture of debt aversion how do we apply culture of debt aversion how do we apply culture of debt aversion how do we apply this knowledge well you might have heard this knowledge well you might have heard this knowledge well you might have heard the quote by Jim Rohn that you become the quote by Jim Rohn that you become the quote by Jim Rohn that you become the average of the five people that you the average of the five people that you the average of the five people that you spend the most time around you can spend the most time around you can spend the most time around you can influence the cultural forces that apply influence the cultural forces that apply influence the cultural forces that apply to your own personal life so if you want to your own personal life so if you want to your own personal life so if you want to save more money if you want to avoid to save more money if you want to avoid to save more money if you want to avoid debt debt debt if you want to invest more or become if you want to invest more or become if you want to invest more or become entrepreneurial surround yourself with entrepreneurial surround yourself with entrepreneurial surround yourself with people who encourage that mindset that's people who encourage that mindset that's people who encourage that mindset that's why it's so important that fire become a why it's so important that fire become a why it's so important that fire become a thriving subculture and that's why it's thriving subculture and that's why it's thriving subculture and that's why it's so important that we as a community so important that we as a community so important that we as a community interact with each other both online and interact with each other both online and interact with each other both online and in the real world this is where we have in the real world this is where we have in the real world this is where we have an opportunity to create a culture or a an opportunity to create a culture or a an opportunity to create a culture or a subculture around reaching financial subculture around reaching financial subculture around reaching financial independence so that is key takeaway independence so that is key takeaway independence so that is key takeaway number one key takeaway number two a number one key takeaway number two a number one key takeaway number two a bull market is irrelevant if you're not bull market is irrelevant if you're not bull market is irrelevant if you're not saving and investing most Americans save saving and investing most Americans save saving and investing most Americans save only cents of each dollar they make it only cents of each dollar they make it only cents of each dollar they make it doesn't matter how much the market goes doesn't matter how much the market goes doesn't matter how much the market goes up if you're putting no money aside to up if you're putting no money aside to up if you're putting no money aside to grow there are many people who will grow there are many people who will grow there are many people who will downplay their own success by saying downplay their own success by saying downplay their own success by saying well you know I mean I got lucky because well you know I mean I got lucky because well you know I mean I got lucky because the markets were good that's true but the markets were good that's true but the markets were good that's true but that's not the only truth that's kind of that's not the only truth that's kind of that's not the only truth that's kind of like playing soccer and scoring the goal like playing soccer and scoring the goal like playing soccer and scoring the goal that wins the game and saying well you that wins the game and saying well you that wins the game and saying well you know I got lucky because at the moment know I got lucky because at the moment know I got lucky because at the moment that my teammate passed me the ball that my teammate passed me the ball that my teammate passed me the ball I happen to be in exactly the right I happen to be in exactly the right I happen to be in exactly the right position and everybody on the field position and everybody on the field position and everybody on the field wasn't exactly the the optimal position wasn't exactly the the optimal position wasn't exactly the the optimal position where I could kick that ball into the where I could kick that ball into the where I could kick that ball into the net yeah that's true net yeah that's true net yeah that's true but you were in the right position but you were in the right position but you were in the right position because you trained and you practiced because you trained and you practiced because you trained and you practiced and at a minimum you woke up that and at a minimum you woke up that and at a minimum you woke up that morning and put on a jersey and some morning and put on a jersey and some morning and put on a jersey and some shoes and got out there onto the field shoes and got out there onto the field shoes and got out there onto the field so yet that game-winning goal might have so yet that game-winning goal might have so yet that game-winning goal might have been luck to an extent but that luck was been luck to an extent but that luck was been luck to an extent but that luck was predicated on the fact that you were in predicated on the fact that you were in predicated on the fact that you were in the game to begin with and so key the game to begin with and so key the game to begin with and so key takeaway number two is get in the game takeaway number two is get in the game takeaway number two is get in the game we have no idea what the markets are we have no idea what the markets are we have no idea what the markets are gonna do in the future but guess what a gonna do in the future but guess what a gonna do in the future but guess what a bull run is not gonna help you if you're bull run is not gonna help you if you're bull run is not gonna help you if you're not in the markets to begin with and not in the markets to begin with and not in the markets to begin with and this applies both to index funds and this applies both to index funds and this applies both to index funds and real estate this applies to any type of real estate this applies to any type of real estate this applies to any type of investment this also applies to starting investment this also applies to starting investment this also applies to starting your own business and investing money your own business and investing money your own business and investing money back into your own business all of those back into your own business all of those back into your own business all of those are examples of being in the game so are examples of being in the game so are examples of being in the game so that's key takeaway number two you can't that's key takeaway number two you can't that's key takeaway number two you can't win if you don't play key takeaway win if you don't play key takeaway win if you don't play key takeaway number three retire both early and often number three retire both early and often number three retire both early and often and what I mean by that is don't get so and what I mean by that is don't get so and what I mean by that is don't get so caught up caught up caught up in the goal of early retirement or in the goal of early retirement or in the goal of early retirement or financial independence that you miss the financial independence that you miss the financial independence that you miss the fun and enjoyment and meaning that fun and enjoyment and meaning that fun and enjoyment and meaning that occurs throughout the journey even if occurs throughout the journey even if occurs throughout the journey even if you're not fi yet travel now or take you're not fi yet travel now or take you're not fi yet travel now or take that wine-tasting class or fly across that wine-tasting class or fly across that wine-tasting class or fly across the country to spend Thanksgiving with the country to spend Thanksgiving with the country to spend Thanksgiving with people that you love and people that are people that you love and people that are people that you love and people that are awesome don't defer your happiness and awesome don't defer your happiness and awesome don't defer your happiness and defer your experiences until a later defer your experiences until a later defer your experiences until a later date I don't know anybody who's made date I don't know anybody who's made date I don't know anybody who's made happy by the possessions they have but happy by the possessions they have but happy by the possessions they have but if you miss a lot of experiences that if you miss a lot of experiences that if you miss a lot of experiences that you would enjoy maybe you've been too you would enjoy maybe you've been too you would enjoy maybe you've been too cheap with yourself because really cheap with yourself because really cheap with yourself because really experiences over our lifetime or what we experiences over our lifetime or what we experiences over our lifetime or what we treasure what we hold on to you look at treasure what we hold on to you look at treasure what we hold on to you look at when people pose their artificial when people pose their artificial when people pose their artificial version of their lives on Instagram or version of their lives on Instagram or version of their lives on Instagram or other social media it's always other social media it's always other social media it's always experiences they're doing nobody's experiences they're doing nobody's experiences they're doing nobody's taking a picture of the new TV they taking a picture of the new TV they taking a picture of the new TV they bought and say look what I got know what bought and say look what I got know what bought and say look what I got know what they're doing is look at this cool place they're doing is look at this cool place they're doing is look at this cool place I'm at leave this trip I'm on whatever I'm at leave this trip I'm on whatever I'm at leave this trip I'm on whatever it is experiences and time with people it is experiences and time with people it is experiences and time with people that create joy in our lives you know that create joy in our lives you know that create joy in our lives you know someone once emailed me and told me that someone once emailed me and told me that someone once emailed me and told me that they want to backpack through South they want to backpack through South they want to backpack through South America they want to take some time off America they want to take some time off America they want to take some time off and go travel around see Patagonia and go travel around see Patagonia and go travel around see Patagonia experience all these cool things but experience all these cool things but experience all these cool things but they keep getting caught up on the fact they keep getting caught up on the fact they keep getting caught up on the fact that if they took that same amount of that if they took that same amount of that if they took that same amount of money and invested it then compounded money and invested it then compounded money and invested it then compounded over the next years it would come to over the next years it would come to over the next years it would come to a heck of a lot more and so this idea a heck of a lot more and so this idea a heck of a lot more and so this idea that they're missing out on compounding that they're missing out on compounding that they're missing out on compounding gains is holding them back from gains is holding them back from gains is holding them back from backpacking around South America and so backpacking around South America and so backpacking around South America and so they emailed me asking for my my take on they emailed me asking for my my take on they emailed me asking for my my take on that my advice and I told them as that my advice and I told them as that my advice and I told them as politely as I could dude you're missing politely as I could dude you're missing politely as I could dude you're missing the point the point the point all the compounded gains in the world all the compounded gains in the world all the compounded gains in the world are not going to do anything for you if are not going to do anything for you if are not going to do anything for you if you're a hundred and ten years old and you're a hundred and ten years old and you're a hundred and ten years old and physically unable to have the same types physically unable to have the same types physically unable to have the same types of experiences that you could have in of experiences that you could have in of experiences that you could have in your s or s or s so sure if the your s or s or s so sure if the your s or s or s so sure if the question question question is should I buy this crazy flat-screen is should I buy this crazy flat-screen is should I buy this crazy flat-screen TV or should I invest in the market I TV or should I invest in the market I TV or should I invest in the market I think you can guess what I'm gonna tell think you can guess what I'm gonna tell think you can guess what I'm gonna tell you the answer should be by the way do you the answer should be by the way do you the answer should be by the way do you like how in the example I say you like how in the example I say you like how in the example I say flat-screen because I actually have no flat-screen because I actually have no flat-screen because I actually have no idea what the latest technology in TVs idea what the latest technology in TVs idea what the latest technology in TVs are and so I'm clearly living like are and so I'm clearly living like are and so I'm clearly living like years in the past where flat-screen is years in the past where flat-screen is years in the past where flat-screen is the big thing so if the question is the big thing so if the question is the big thing so if the question is should I buy some fancy newfangled should I buy some fancy newfangled should I buy some fancy newfangled television or put money into the market television or put money into the market television or put money into the market or save that money for a down payment on or save that money for a down payment on or save that money for a down payment on a rental property I think it's clear a rental property I think it's clear a rental property I think it's clear what that answer is gonna be but but if what that answer is gonna be but but if what that answer is gonna be but but if the question is my three best friends the question is my three best friends the question is my three best friends from college just invited me to spend a from college just invited me to spend a from college just invited me to spend a week with them in Italy and I have the week with them in Italy and I have the week with them in Italy and I have the cash to do this I wouldn't be going into cash to do this I wouldn't be going into cash to do this I wouldn't be going into any debt for it and I'm adequately any debt for it and I'm adequately any debt for it and I'm adequately saving for retirement I'm financially saving for retirement I'm financially saving for retirement I'm financially stable should I do it or should I get stable should I do it or should I get stable should I do it or should I get the additional compound interest I mean the additional compound interest I mean the additional compound interest I mean it'll have that experience go to Italy it'll have that experience go to Italy it'll have that experience go to Italy be with your friends create those be with your friends create those be with your friends create those memories because at the end of the day memories because at the end of the day memories because at the end of the day that's all you ever are going to have so that's all you ever are going to have so that's all you ever are going to have so that's key takeaway number three and that's key takeaway number three and that's key takeaway number three and finally key takeaway number four don't finally key takeaway number four don't finally key takeaway number four don't get so afraid of Black Swan events that get so afraid of Black Swan events that get so afraid of Black Swan events that you end up reverting to the status quo you end up reverting to the status quo you end up reverting to the status quo people who are trying to adopt a people who are trying to adopt a people who are trying to adopt a lifestyle where they can move towards lifestyle where they can move towards lifestyle where they can move towards fire I don't want them to get shut down fire I don't want them to get shut down fire I don't want them to get shut down by any of these details we just talk by any of these details we just talk by any of these details we just talk don't worry so much about the what if of don't worry so much about the what if of don't worry so much about the what if of course the things we just talked about course the things we just talked about course the things we just talked about are things that somebody should do but are things that somebody should do but are things that somebody should do but it's not the heart and soul of what the it's not the heart and soul of what the it's not the heart and soul of what the fire movement is about it's about fire movement is about it's about fire movement is about it's about creating by your choices the ability for creating by your choices the ability for creating by your choices the ability for you to be financially independent and so you to be financially independent and so you to be financially independent and so that's where I want your energy your that's where I want your energy your that's where I want your energy your brainpower and your effort to go is brainpower and your effort to go is brainpower and your effort to go is towards the idea of living on standing towards the idea of living on standing towards the idea of living on standing less than what you make so that you less than what you make so that you less than what you make so that you create the opportunity to then have to create the opportunity to then have to create the opportunity to then have to worry about all the paperwork kind of worry about all the paperwork kind of worry about all the paperwork kind of things things things catastrophes happen absolutely but the catastrophes happen absolutely but the catastrophes happen absolutely but the normalized American pattern of going normalized American pattern of going normalized American pattern of going into consumer debt saving % of your into consumer debt saving % of your into consumer debt saving % of your income and woefully under preparing for income and woefully under preparing for income and woefully under preparing for even a traditional retirement that's not even a traditional retirement that's not even a traditional retirement that's not the solution to the possibility of a the solution to the possibility of a the solution to the possibility of a future calamity being in a very future calamity being in a very future calamity being in a very financially secure place in your life financially secure place in your life financially secure place in your life while simultaneously not indefinitely while simultaneously not indefinitely while simultaneously not indefinitely deferring your happiness new experiences deferring your happiness new experiences deferring your happiness new experiences towards the future that balance of towards the future that balance of towards the future that balance of retiring both early and often that is retiring both early and often that is retiring both early and often that is the way to prepare for any eventualities the way to prepare for any eventualities the way to prepare for any eventualities so those are four takeaways that we got so those are four takeaways that we got so those are four takeaways that we got from today's conversation with Clark from today's conversation with Clark from today's conversation with Clark Howard if you'd like a written summary Howard if you'd like a written summary Howard if you'd like a written summary of these four takeaways go to afford of these four takeaways go to afford of these four takeaways go to afford anything comm slash episode / that's anything comm slash episode / that's anything comm slash episode / that's afford anything comm slash episode afford anything comm slash episode afford anything comm slash episode that's where you can get the show notes that's where you can get the show notes that's where you can get the show notes and when you're there leave your email and when you're there leave your email and when you're there leave your email address and we'll send you once a week address and we'll send you once a week address and we'll send you once a week the show notes for all of our upcoming the show notes for all of our upcoming the show notes for all of our upcoming episodes by the way also who won the episodes by the way also who won the episodes by the way also who won the now-infamous Suze Orman episode came out now-infamous Suze Orman episode came out now-infamous Suze Orman episode came out Clark immediately issued a response to Clark immediately issued a response to Clark immediately issued a response to it on his own syndicated radio show on it on his own syndicated radio show on it on his own syndicated radio show on the Clark Howard show he came out in the Clark Howard show he came out in the Clark Howard show he came out in support of the fire movement and he support of the fire movement and he support of the fire movement and he talked about it on his show so in our talked about it on his show so in our talked about it on his show so in our show notes at affording calm / episode show notes at affording calm / episode show notes at affording calm / episode we've included a link to that we've included a link to that we've included a link to that episode as well as the time stamp so you episode as well as the time stamp so you episode as well as the time stamp so you can listen to what Clark said on the can listen to what Clark said on the can listen to what Clark said on the Clark Howard show about the fire Clark Howard show about the fire Clark Howard show about the fire movement and don't forget if you want to movement and don't forget if you want to movement and don't forget if you want to hear his personal story his backstory hear his personal story his backstory hear his personal story his backstory which is fascinating head to episode which is fascinating head to episode which is fascinating head to episode we'll also link to that in the show we'll also link to that in the show we'll also link to that in the show notes as well a few notes first of all notes as well a few notes first of all notes as well a few notes first of all huge thank you to everybody who has left huge thank you to everybody who has left huge thank you to everybody who has left a review of this podcast on iTunes or a review of this podcast on iTunes or a review of this podcast on iTunes or stitcher or whatever app that it is that stitcher or whatever app that it is that stitcher or whatever app that it is that you use to listen to podcasts thank you you use to listen to podcasts thank you you use to listen to podcasts thank you so much so much so much we now have ratings on iTunes on the we now have ratings on iTunes on the we now have ratings on iTunes on the Apple podcasts thank you that is Apple podcasts thank you that is Apple podcasts thank you that is incredible please help us if you haven't incredible please help us if you haven't incredible please help us if you haven't left a review yet please help us get to left a review yet please help us get to left a review yet please help us get to , we have we're so close I would , we have we're so close I would , we have we're so close I would love to hit that figure mark as love to hit that figure mark as love to hit that figure mark as hopefully by as early as next week so hopefully by as early as next week so hopefully by as early as next week so please if you go to please if you go to please if you go to for anything calm / iTunes that will for anything calm / iTunes that will for anything calm / iTunes that will redirect you to the page on the Apple redirect you to the page on the Apple redirect you to the page on the Apple podcast website where you can leave a podcast website where you can leave a podcast website where you can leave a review or a rating number - if you review or a rating number - if you review or a rating number - if you missed the announcement in last week's missed the announcement in last week's missed the announcement in last week's episode I am thrilled to announce that episode I am thrilled to announce that episode I am thrilled to announce that we the afford anything community reached we the afford anything community reached we the afford anything community reached our goal of sponsoring a water project our goal of sponsoring a water project our goal of sponsoring a water project such as digging a well somewhere in the such as digging a well somewhere in the such as digging a well somewhere in the world as of the time of this recording world as of the time of this recording world as of the time of this recording we have raised twelve thousand eight we have raised twelve thousand eight we have raised twelve thousand eight hundred and eighty two dollars as a hundred and eighty two dollars as a hundred and eighty two dollars as a donation to charity water and that money donation to charity water and that money donation to charity water and that money is enough we needed to break the twelve is enough we needed to break the twelve is enough we needed to break the twelve thousand dollar mark and we've done it thousand dollar mark and we've done it thousand dollar mark and we've done it so that is enough money that we afford so that is enough money that we afford so that is enough money that we afford anything we'll be sponsoring a water anything we'll be sponsoring a water anything we'll be sponsoring a water project that's enough money to build a project that's enough money to build a project that's enough money to build a well so that people in that community well so that people in that community well so that people in that community won't have to deal with the diseases won't have to deal with the diseases won't have to deal with the diseases that come from drinking dirty water like that come from drinking dirty water like that come from drinking dirty water like cholera and dysentery and diarrheal cholera and dysentery and diarrheal cholera and dysentery and diarrheal diseases so that's an incredible legacy diseases so that's an incredible legacy diseases so that's an incredible legacy that this podcast is leaving so thank that this podcast is leaving so thank that this podcast is leaving so thank you so much to everybody who has donated you so much to everybody who has donated you so much to everybody who has donated if you want to support the campaign had if you want to support the campaign had if you want to support the campaign had to afford anything calm slash water to afford anything calm slash water to afford anything calm slash water where you can leave a donation or go to where you can leave a donation or go to where you can leave a donation or go to afford anything calm / store that's afford anything calm / store that's afford anything calm / store that's where you can buy a shirt and % of where you can buy a shirt and % of where you can buy a shirt and % of the profits from the sale of those the profits from the sale of those the profits from the sale of those shirts will be given directly to charity shirts will be given directly to charity shirts will be given directly to charity water coming up on future episodes of water coming up on future episodes of water coming up on future episodes of the afford anything podcast the afford anything podcast the afford anything podcast well first I'm afraid I have a little well first I'm afraid I have a little well first I'm afraid I have a little bit of bad news now if you remember in a bit of bad news now if you remember in a bit of bad news now if you remember in a previous episode I mentioned that I was previous episode I mentioned that I was previous episode I mentioned that I was going to be interviewing my good friend going to be interviewing my good friend going to be interviewing my good friend Patra she and I met while we were Patra she and I met while we were Patra she and I met while we were traveling we met back in in traveling we met back in in traveling we met back in in Indonesia and as I mentioned on a Indonesia and as I mentioned on a Indonesia and as I mentioned on a previous episode she supported herself previous episode she supported herself previous episode she supported herself from her investment portfolio while from her investment portfolio while from her investment portfolio while travelling the world for a dozen years travelling the world for a dozen years travelling the world for a dozen years so I was really excited to be able to so I was really excited to be able to so I was really excited to be able to share that story with you beyond that if share that story with you beyond that if share that story with you beyond that if you kind of take a step upwards and zoom you kind of take a step upwards and zoom you kind of take a step upwards and zoom out a little bit one of the things I was out a little bit one of the things I was out a little bit one of the things I was really trying to do with that is I'm really trying to do with that is I'm really trying to do with that is I'm trying to highlight stories of people trying to highlight stories of people trying to highlight stories of people who are not bloggers and not podcasters who are not bloggers and not podcasters who are not bloggers and not podcasters people who are not publicly known people who are not publicly known people who are not publicly known because one of the criticisms that I because one of the criticisms that I because one of the criticisms that I sometimes hear about the fire movement sometimes hear about the fire movement sometimes hear about the fire movement is the question like well what does is the question like well what does is the question like well what does everybody just reach fire and then start everybody just reach fire and then start everybody just reach fire and then start a blog no but sampling bias might make a blog no but sampling bias might make a blog no but sampling bias might make you think that because by definition you think that because by definition you think that because by definition the people who are public about it are the people who are public about it are the people who are public about it are the people whose stories we hear and so the people whose stories we hear and so the people whose stories we hear and so one of my goals with this podcast is to one of my goals with this podcast is to one of my goals with this podcast is to bring to light the stories of people who bring to light the stories of people who bring to light the stories of people who are not public about it one of the ways are not public about it one of the ways are not public about it one of the ways that we did that was in episode I that we did that was in episode I that we did that was in episode I interviewed my good friend Kim interviewed my good friend Kim interviewed my good friend Kim now Kim has not reached fire yet but she now Kim has not reached fire yet but she now Kim has not reached fire yet but she is saving more than fifty percent of her is saving more than fifty percent of her is saving more than fifty percent of her income as a firefighter so she earns a income as a firefighter so she earns a income as a firefighter so she earns a firefighter salary she's a firefighter firefighter salary she's a firefighter firefighter salary she's a firefighter for the city of austin texas and she for the city of austin texas and she for the city of austin texas and she saves more than half her income she's saves more than half her income she's saves more than half her income she's well on the path to fire we featured her well on the path to fire we featured her well on the path to fire we featured her story in episode and I was going to story in episode and I was going to story in episode and I was going to feature patches as well but she has feature patches as well but she has feature patches as well but she has recently decided that she actually does recently decided that she actually does recently decided that she actually does not want to come out publicly with all not want to come out publicly with all not want to come out publicly with all of the details so we unfortunately I of the details so we unfortunately I of the details so we unfortunately I know I promised you that would be coming know I promised you that would be coming know I promised you that would be coming up on a future episode but unfortunately up on a future episode but unfortunately up on a future episode but unfortunately we will not be airing that and that it we will not be airing that and that it we will not be airing that and that it kind of brings to light one of the kind of brings to light one of the kind of brings to light one of the inherent problems with trying to share inherent problems with trying to share inherent problems with trying to share the stories of people who are not public the stories of people who are not public the stories of people who are not public about their finances in their life is about their finances in their life is about their finances in their life is that people who are not public about it that people who are not public about it that people who are not public about it are often people who do not want to be are often people who do not want to be are often people who do not want to be public about it there are people who public about it there are people who public about it there are people who value their privacy and you know even value their privacy and you know even value their privacy and you know even with my friend Kim in episode yo with my friend Kim in episode yo with my friend Kim in episode yo notice we didn't give Kim's last name so notice we didn't give Kim's last name so notice we didn't give Kim's last name so there are many many people who have there are many many people who have there are many many people who have reached fire who are doing super cool reached fire who are doing super cool reached fire who are doing super cool things they're volunteering full time things they're volunteering full time things they're volunteering full time they're rock climbing they're surfing they're rock climbing they're surfing they're rock climbing they're surfing they're leading these fascinating lives they're leading these fascinating lives they're leading these fascinating lives but we don't hear about them because but we don't hear about them because but we don't hear about them because they're leading private lives they're they're leading private lives they're they're leading private lives they're not blogging they're not podcasting so not blogging they're not podcasting so not blogging they're not podcasting so as much as possible I'm gonna continue as much as possible I'm gonna continue as much as possible I'm gonna continue trying to bring these stories out while trying to bring these stories out while trying to bring these stories out while also recognizing that sometimes people also recognizing that sometimes people also recognizing that sometimes people will record an interview and then will record an interview and then will record an interview and then they'll get cold feet and say you know I they'll get cold feet and say you know I they'll get cold feet and say you know I I don't think I want , people I don't think I want , people I don't think I want , people downloading an episode that has all of downloading an episode that has all of downloading an episode that has all of the details of my life and my money the details of my life and my money the details of my life and my money which I can understand so anyway now which I can understand so anyway now which I can understand so anyway now that we've talked about what's not that we've talked about what's not that we've talked about what's not coming up on the afford anything podcast coming up on the afford anything podcast coming up on the afford anything podcast what is gonna be coming up well this what is gonna be coming up well this what is gonna be coming up well this upcoming Friday is the first Friday of upcoming Friday is the first Friday of upcoming Friday is the first Friday of the month it's the first Friday in the month it's the first Friday in the month it's the first Friday in November so my friend Joe Saul see hi November so my friend Joe Saul see hi November so my friend Joe Saul see hi and I former financial planner Joe Saul and I former financial planner Joe Saul and I former financial planner Joe Saul si hai will be answering questions that si hai will be answering questions that si hai will be answering questions that come from you the audience come from you the audience come from you the audience and then after that on Monday I've got and then after that on Monday I've got and then after that on Monday I've got an interview with Jonathan and Brad from an interview with Jonathan and Brad from an interview with Jonathan and Brad from the choose Fi podcast about the paradox the choose Fi podcast about the paradox the choose Fi podcast about the paradox of fi so all of that is coming up on the of fi so all of that is coming up on the of fi so all of that is coming up on the afford anything podcast make sure that afford anything podcast make sure that afford anything podcast make sure that you don't miss any of it by hitting the you don't miss any of it by hitting the you don't miss any of it by hitting the subscribe button in your favorite subscribe button in your favorite subscribe button in your favorite podcast players so whether you're using podcast players so whether you're using podcast players so whether you're using Apple stitcher overcast open up that app Apple stitcher overcast open up that app Apple stitcher overcast open up that app hit the subscribe button that way you hit the subscribe button that way you hit the subscribe button that way you won't miss any of our awesome upcoming won't miss any of our awesome upcoming won't miss any of our awesome upcoming shows thank you so much for being part shows thank you so much for being part shows thank you so much for being part of this community if my name is Paulo of this community if my name is Paulo of this community if my name is Paulo pan I'm the host of the afford anything pan I'm the host of the afford anything pan I'm the host of the afford anything podcast I'll catch you in the next podcast I'll catch you in the next podcast I'll catch you in the next episode WEBVTT Kind: captions Language: en that they can eventually stop saving that they can eventually stop saving that they can eventually stop saving altogether for retirement now this altogether for retirement now this altogether for retirement now this approach can be appealing for many who approach can be appealing for many who approach can be appealing for many who are interested in financial independence are interested in financial independence are interested in financial independence because it doesn't require that lifetime because it doesn't require that lifetime because it doesn't require that lifetime of frugality there's no one right way to of frugality there's no one right way to of frugality there's no one right way to go about it hey guys what's up go about it hey guys what's up go about it hey guys what's up i'm aaron and welcome back to aaron i'm aaron and welcome back to aaron i'm aaron and welcome back to aaron talks money when i first started getting talks money when i first started getting talks money when i first started getting into finance i was very young and my into finance i was very young and my into finance i was very young and my goal was simply to save him enough money goal was simply to save him enough money goal was simply to save him enough money and that i could do whatever I wanted at and that i could do whatever I wanted at and that i could do whatever I wanted at this point i was probably about fifteen this point i was probably about fifteen this point i was probably about fifteen years old and i was watching my mom be years old and i was watching my mom be years old and i was watching my mom be tied to a job that she didn't tied to a job that she didn't tied to a job that she didn't particularly like but she needed the particularly like but she needed the particularly like but she needed the paycheck to support her family now i paycheck to support her family now i paycheck to support her family now i love my mom dearly but i never wanted to love my mom dearly but i never wanted to love my mom dearly but i never wanted to be in that position i wanted to be able be in that position i wanted to be able be in that position i wanted to be able to make my own choices in life i didn't to make my own choices in life i didn't to make my own choices in life i didn't want a job and a paycheck to dictate it want a job and a paycheck to dictate it want a job and a paycheck to dictate it so i saved and I saved and I saved and I so i saved and I saved and I saved and I so i saved and I saved and I saved and I started reading about money and I started reading about money and I started reading about money and I eventually went to school for it it eventually went to school for it it eventually went to school for it it wasn't until sometime later that I wasn't until sometime later that I wasn't until sometime later that I learned about the concept of financial learned about the concept of financial learned about the concept of financial independence I mean financial independence I mean financial independence I mean financial independence is what I was after independence is what I was after independence is what I was after I just didn't know it had a name since I just didn't know it had a name since I just didn't know it had a name since then I have learned that there are an then I have learned that there are an then I have learned that there are an astounding number of different ways to astounding number of different ways to astounding number of different ways to reach financial independence that it's reach financial independence that it's reach financial independence that it's truly mind-boggling that most of these truly mind-boggling that most of these truly mind-boggling that most of these types of financial independence fall types of financial independence fall types of financial independence fall under the fire acronym financial under the fire acronym financial under the fire acronym financial independence retire early but there is independence retire early but there is independence retire early but there is lean fire fat fire slow fire coast fire lean fire fat fire slow fire coast fire lean fire fat fire slow fire coast fire barista fire flamingo fire probably some barista fire flamingo fire probably some barista fire flamingo fire probably some others that I've obviously forgotten but others that I've obviously forgotten but others that I've obviously forgotten but they exist in who knew that there are so they exist in who knew that there are so they exist in who knew that there are so many different types now each of these many different types now each of these many different types now each of these different types of financial different types of financial different types of financial independence have the ultimate same end independence have the ultimate same end independence have the ultimate same end goal it's that you have enough money goal it's that you have enough money goal it's that you have enough money that you no longer are reliant on a job that you no longer are reliant on a job that you no longer are reliant on a job or a paycheck that your money can or a paycheck that your money can or a paycheck that your money can sustain you however they all have sustain you however they all have sustain you however they all have different routes to get there and that's different routes to get there and that's different routes to get there and that's where the distinctions come in so I want where the distinctions come in so I want where the distinctions come in so I want to cover each of these but because to cover each of these but because to cover each of these but because nobody wants to watch a minute video nobody wants to watch a minute video nobody wants to watch a minute video I'm gonna make a I'm gonna make a I'm gonna make a miniseries and in each one I'm going to miniseries and in each one I'm going to miniseries and in each one I'm going to cover each different types of financial cover each different types of financial cover each different types of financial independence that way each one can have independence that way each one can have independence that way each one can have its own dedicated video today you're its own dedicated video today you're its own dedicated video today you're going to be talking about something going to be talking about something going to be talking about something called coast fire which I find called coast fire which I find called coast fire which I find incredibly interesting but before we incredibly interesting but before we incredibly interesting but before we dive right into it if you can take just dive right into it if you can take just dive right into it if you can take just one moment to hit that like button as it one moment to hit that like button as it one moment to hit that like button as it really does help out new channels like really does help out new channels like really does help out new channels like this now as I said I want to start off this now as I said I want to start off this now as I said I want to start off with Coast Fire as it is the most unique with Coast Fire as it is the most unique with Coast Fire as it is the most unique approach to saving money in my opinion approach to saving money in my opinion approach to saving money in my opinion at least now Coast fire is essentially at least now Coast fire is essentially at least now Coast fire is essentially where you save up enough money at a very where you save up enough money at a very where you save up enough money at a very young age that you're actually able to young age that you're actually able to young age that you're actually able to stop making any contributions to your stop making any contributions to your stop making any contributions to your savings and investments but you still savings and investments but you still savings and investments but you still reach financial independence sometime reach financial independence sometime reach financial independence sometime down the road even though use have down the road even though use have down the road even though use have stopped contributing to your investments stopped contributing to your investments stopped contributing to your investments the money continues to grow via compound the money continues to grow via compound the money continues to grow via compound interest it's like you essentially reach interest it's like you essentially reach interest it's like you essentially reach this tipping point where you've built up this tipping point where you've built up this tipping point where you've built up enough of a nest egg that you can sort enough of a nest egg that you can sort enough of a nest egg that you can sort of have a hands-off approach and you of have a hands-off approach and you of have a hands-off approach and you just allow time to work its magic on just allow time to work its magic on just allow time to work its magic on your money now how it works is that you your money now how it works is that you your money now how it works is that you figure out how much of an annual income figure out how much of an annual income figure out how much of an annual income you would want to live off in retirement you would want to live off in retirement you would want to live off in retirement and then you work backwards from there and then you work backwards from there and then you work backwards from there so let's say that you want to income a so let's say that you want to income a so let's say that you want to income a $, in retirement for example you $, in retirement for example you $, in retirement for example you would need a nest egg of . million would need a nest egg of . million would need a nest egg of . million dollars in order to be financially dollars in order to be financially dollars in order to be financially independent independent independent now how we got to that number is we take now how we got to that number is we take now how we got to that number is we take thousand thousand thousand multiply it by because the rule is multiply it by because the rule is multiply it by because the rule is you should have times your income in you should have times your income in you should have times your income in order to be independent that will give order to be independent that will give order to be independent that will give you . million we can also turn around you . million we can also turn around you . million we can also turn around and check our math using the rule of % and check our math using the rule of % and check our math using the rule of % the rule of % says that you can the rule of % says that you can the rule of % says that you can withdraw percent of your portfolio withdraw percent of your portfolio withdraw percent of your portfolio safely and not risk running out of money safely and not risk running out of money safely and not risk running out of money in retirement so we take that million in retirement so we take that million in retirement so we take that million two hundred and fifty thousand two hundred and fifty thousand two hundred and fifty thousand multiplied by point zero four and we get multiplied by point zero four and we get multiplied by point zero four and we get $, now if you're at all curious $, now if you're at all curious $, now if you're at all curious about the intricacies or an explanation about the intricacies or an explanation about the intricacies or an explanation on the % rule I have a full dedicated on the % rule I have a full dedicated on the % rule I have a full dedicated video to it and I will link it video to it and I will link it video to it and I will link it down below in the description box next down below in the description box next down below in the description box next you have to figure out how long you want you have to figure out how long you want you have to figure out how long you want to save for and what amount you need to to save for and what amount you need to to save for and what amount you need to save up in order to stop making save up in order to stop making save up in order to stop making contributions so that compound interest contributions so that compound interest contributions so that compound interest can take over and do the rest of the can take over and do the rest of the can take over and do the rest of the work for instance let's say you want to work for instance let's say you want to work for instance let's say you want to be absolutely done saving by the age of be absolutely done saving by the age of be absolutely done saving by the age of you're gonna save aggressively until you're gonna save aggressively until you're gonna save aggressively until but then you totally want to be done but then you totally want to be done but then you totally want to be done so if that's the case assuming you want so if that's the case assuming you want so if that's the case assuming you want to retire at years old with that . to retire at years old with that . to retire at years old with that . million dollars so you can have that million dollars so you can have that million dollars so you can have that annual income of $, how much would annual income of $, how much would annual income of $, how much would you need to save up the answer is a you need to save up the answer is a you need to save up the answer is a hundred and twenty five thousand dollars hundred and twenty five thousand dollars hundred and twenty five thousand dollars now at that point if you let compound now at that point if you let compound now at that point if you let compound interest take over interest take over interest take over assuming an eight percent return for the assuming an eight percent return for the assuming an eight percent return for the next thirty years you would indeed grow next thirty years you would indeed grow next thirty years you would indeed grow your money to million two hundred and your money to million two hundred and your money to million two hundred and fifty thousand dollars now that's pretty fifty thousand dollars now that's pretty fifty thousand dollars now that's pretty incredible that means for the next incredible that means for the next incredible that means for the next years you don't have to save anything at years you don't have to save anything at years you don't have to save anything at all now of course saving up a hundred all now of course saving up a hundred all now of course saving up a hundred and twenty five thousand dollars by the and twenty five thousand dollars by the and twenty five thousand dollars by the time you're is no small feat but for time you're is no small feat but for time you're is no small feat but for many people that early sacrifice could many people that early sacrifice could many people that early sacrifice could be totally worth it if it means you get be totally worth it if it means you get be totally worth it if it means you get to live a little larger later on in life to live a little larger later on in life to live a little larger later on in life or let you no longer have to worry about or let you no longer have to worry about or let you no longer have to worry about saving for retirement you lifted a huge saving for retirement you lifted a huge saving for retirement you lifted a huge burden off your shoulders but let's say burden off your shoulders but let's say burden off your shoulders but let's say instead of being done at thirty years instead of being done at thirty years instead of being done at thirty years old with her savings say you wanna save old with her savings say you wanna save old with her savings say you wanna save until you're but you still want to until you're but you still want to until you're but you still want to reach . million at sixty how much of reach . million at sixty how much of reach . million at sixty how much of a difference is that going to make well a difference is that going to make well a difference is that going to make well if you save until you're you're gonna if you save until you're you're gonna if you save until you're you're gonna have to save two hundred and seventy have to save two hundred and seventy have to save two hundred and seventy thousand dollars that's a significant thousand dollars that's a significant thousand dollars that's a significant sum and it's significantly more than the sum and it's significantly more than the sum and it's significantly more than the amount you needed at thirty because we amount you needed at thirty because we amount you needed at thirty because we lost ten extra years of compounding lost ten extra years of compounding lost ten extra years of compounding interest so yes you have ten more years interest so yes you have ten more years interest so yes you have ten more years of savings but they're going to have to of savings but they're going to have to of savings but they're going to have to be ten years of aggressive savings now be ten years of aggressive savings now be ten years of aggressive savings now if by some financial highlight you are if by some financial highlight you are if by some financial highlight you are able to save two hundred and seventy able to save two hundred and seventy able to save two hundred and seventy thousand dollars by your th birthday thousand dollars by your th birthday thousand dollars by your th birthday well that just means you can reach your well that just means you can reach your well that just means you can reach your goals ten years goals ten years goals ten years sooner and by the time your th sooner and by the time your th sooner and by the time your th birthday rolls around you would have birthday rolls around you would have birthday rolls around you would have that . million dollars and you would that . million dollars and you would that . million dollars and you would be financially independent that's the be financially independent that's the be financially independent that's the thing you learn about financial thing you learn about financial thing you learn about financial independence is that there's no one way independence is that there's no one way independence is that there's no one way to do it some people start their journey to do it some people start their journey to do it some people start their journey early in life some people start it later early in life some people start it later early in life some people start it later in life there's no one right way to go in life there's no one right way to go in life there's no one right way to go about it and the numbers I'm using here about it and the numbers I'm using here about it and the numbers I'm using here are completely arbitrary you don't have are completely arbitrary you don't have are completely arbitrary you don't have to stop saving at the age of or or to stop saving at the age of or or to stop saving at the age of or or retire at and the income doesn't have retire at and the income doesn't have retire at and the income doesn't have to be fifty thousand dollars I'm just to be fifty thousand dollars I'm just to be fifty thousand dollars I'm just using them as an example you should use using them as an example you should use using them as an example you should use the numbers that are meaningful to you the numbers that are meaningful to you the numbers that are meaningful to you so post-fire is a little different when so post-fire is a little different when so post-fire is a little different when compared to the more commonly known compared to the more commonly known compared to the more commonly known methods of fire so most time we picture methods of fire so most time we picture methods of fire so most time we picture those in the fire community financial those in the fire community financial those in the fire community financial independence retire early as wanting to independence retire early as wanting to independence retire early as wanting to save aggressively live frugally and save aggressively live frugally and save aggressively live frugally and leave the workforce incredibly early leave the workforce incredibly early leave the workforce incredibly early sometimes ridiculously early like in sometimes ridiculously early like in sometimes ridiculously early like in their s or s however those that are their s or s however those that are their s or s however those that are participating in the coast fire approach participating in the coast fire approach participating in the coast fire approach well they're actually planning on a more well they're actually planning on a more well they're actually planning on a more normal retirement they're looking at the normal retirement they're looking at the normal retirement they're looking at the age of or or it's just that age of or or it's just that age of or or it's just that they save so aggressively in their early they save so aggressively in their early they save so aggressively in their early working years of their career and they working years of their career and they working years of their career and they put away as much as they possibly can put away as much as they possibly can put away as much as they possibly can that they can eventually stop saving that they can eventually stop saving that they can eventually stop saving altogether for retirement at that point altogether for retirement at that point altogether for retirement at that point they can spend their entire paycheck to they can spend their entire paycheck to they can spend their entire paycheck to live whatever kind of lifestyle they live whatever kind of lifestyle they live whatever kind of lifestyle they want because saving for retirement is no want because saving for retirement is no want because saving for retirement is no longer a concern now this approach can longer a concern now this approach can longer a concern now this approach can be appealing for many who are interested be appealing for many who are interested be appealing for many who are interested in financial independence because it in financial independence because it in financial independence because it doesn't require that lifetime of doesn't require that lifetime of doesn't require that lifetime of frugality imagine you're riding a bike frugality imagine you're riding a bike frugality imagine you're riding a bike and at the start of your ride there is a and at the start of your ride there is a and at the start of your ride there is a huge Hill you're biking up it your legs huge Hill you're biking up it your legs huge Hill you're biking up it your legs burn you're out of breath it's hard work burn you're out of breath it's hard work burn you're out of breath it's hard work but you know if you can just get to the but you know if you can just get to the but you know if you can just get to the top of that hill you can ride the other top of that hill you can ride the other top of that hill you can ride the other side down all the way to your final side down all the way to your final side down all the way to your final destination with very little effort destination with very little effort destination with very little effort that's Coast Fire Coast Fire takes that's Coast Fire Coast Fire takes that's Coast Fire Coast Fire takes advantage of having a significant amount advantage of having a significant amount advantage of having a significant amount some saved-up and a long time horizon some saved-up and a long time horizon some saved-up and a long time horizon after all having a long time horizon in after all having a long time horizon in after all having a long time horizon in the stock market is what allows compound the stock market is what allows compound the stock market is what allows compound interest to do it's magic time in the interest to do it's magic time in the interest to do it's magic time in the market matters that is why Albert market matters that is why Albert market matters that is why Albert Einstein once said the strongest force Einstein once said the strongest force Einstein once said the strongest force in the universe is compound interest now in the universe is compound interest now in the universe is compound interest now the benefits of post-fire the benefits of post-fire the benefits of post-fire are pretty clear and easy to see once are pretty clear and easy to see once are pretty clear and easy to see once you have that lump sum saved up you're you have that lump sum saved up you're you have that lump sum saved up you're essentially financially independent essentially financially independent essentially financially independent after all left to its own devices that after all left to its own devices that after all left to its own devices that money will grow to the lump sum you need money will grow to the lump sum you need money will grow to the lump sum you need you no longer have to put anything you no longer have to put anything you no longer have to put anything towards investments now being that towards investments now being that towards investments now being that you're done saving you could you're done saving you could you're done saving you could significantly increase your standard of significantly increase your standard of significantly increase your standard of living if you so choose after all you living if you so choose after all you living if you so choose after all you get to spend your entire paycheck if you get to spend your entire paycheck if you get to spend your entire paycheck if you want you don't have to save any of it want you don't have to save any of it want you don't have to save any of it that means you could start traveling that means you could start traveling that means you could start traveling buying a nicer house or buying a nicer buying a nicer house or buying a nicer buying a nicer house or buying a nicer car whatever you want or let's say car whatever you want or let's say car whatever you want or let's say you're not particularly happy at your you're not particularly happy at your you're not particularly happy at your job you could leave that job and go to job you could leave that job and go to job you could leave that job and go to another one so long as the next one just another one so long as the next one just another one so long as the next one just covered your expenses the choice is covered your expenses the choice is covered your expenses the choice is truly yours but just as there are very truly yours but just as there are very truly yours but just as there are very obvious benefits to Co spire there are obvious benefits to Co spire there are obvious benefits to Co spire there are also some really big drawbacks or also some really big drawbacks or also some really big drawbacks or obstacles that you do have to consider obstacles that you do have to consider obstacles that you do have to consider number one you're going to have to be number one you're going to have to be number one you're going to have to be making significantly more than your making significantly more than your making significantly more than your spending otherwise the whole thing is spending otherwise the whole thing is spending otherwise the whole thing is pretty much impossible you have to be pretty much impossible you have to be pretty much impossible you have to be making enough that you can put away a making enough that you can put away a making enough that you can put away a large percentage and get that into large percentage and get that into large percentage and get that into investments and get that lump sum built investments and get that lump sum built investments and get that lump sum built up if you're spending all your income up if you're spending all your income up if you're spending all your income it's pretty impossible number two you're it's pretty impossible number two you're it's pretty impossible number two you're going to have to be willing to going to have to be willing to going to have to be willing to drastically live below your means and drastically live below your means and drastically live below your means and you're going to have to somewhat enjoy you're going to have to somewhat enjoy you're going to have to somewhat enjoy it to make this process bearable let's it to make this process bearable let's it to make this process bearable let's say you make $, a year well you say you make $, a year well you say you make $, a year well you have to be willing to live on say half have to be willing to live on say half have to be willing to live on say half of that or even less that's not always of that or even less that's not always of that or even less that's not always the easiest scenario when you're the easiest scenario when you're the easiest scenario when you're surrounded by people who are spending surrounded by people who are spending surrounded by people who are spending freely it's gonna require a lot of freely it's gonna require a lot of freely it's gonna require a lot of sacrifice and a lot of compromise if it sacrifice and a lot of compromise if it sacrifice and a lot of compromise if it makes you absolutely miserable to live makes you absolutely miserable to live makes you absolutely miserable to live the frugal lifestyle that's probably not the frugal lifestyle that's probably not the frugal lifestyle that's probably not the best thing to do to yourself because the best thing to do to yourself because the best thing to do to yourself because you don't want to spend years in apps you don't want to spend years in apps you don't want to spend years in apps misery and number three you are going to misery and number three you are going to misery and number three you are going to need to have very little or no debt or need to have very little or no debt or need to have very little or no debt or at the very least a very high income at the very least a very high income at the very least a very high income ideally you would have both of those ideally you would have both of those ideally you would have both of those you'd have no debt and the high income you'd have no debt and the high income you'd have no debt and the high income is make the process much simpler if you is make the process much simpler if you is make the process much simpler if you have a lot of debt say student loans a have a lot of debt say student loans a have a lot of debt say student loans a car loan and consumer debt it's going to car loan and consumer debt it's going to car loan and consumer debt it's going to be very hard to save a high percentage be very hard to save a high percentage be very hard to save a high percentage of your income because so much of your of your income because so much of your of your income because so much of your income is gonna go towards debt income is gonna go towards debt income is gonna go towards debt repayment especially if you have just an repayment especially if you have just an repayment especially if you have just an average income now it's not altogether average income now it's not altogether average income now it's not altogether impossible say you have a very high impossible say you have a very high impossible say you have a very high income but when you have a high income income but when you have a high income income but when you have a high income everything from the standpoint of saving everything from the standpoint of saving everything from the standpoint of saving and investing becomes much simpler so if and investing becomes much simpler so if and investing becomes much simpler so if you have a high enough income that you you have a high enough income that you you have a high enough income that you can pay off all your debts and still can pay off all your debts and still can pay off all your debts and still save a significant portion it's save a significant portion it's save a significant portion it's absolutely possible absolutely possible absolutely possible but like I said things get a little but like I said things get a little but like I said things get a little easier with a higher income anyhow so easier with a higher income anyhow so easier with a higher income anyhow so you have to be able to put away that big you have to be able to put away that big you have to be able to put away that big percentage so you can save up that lump percentage so you can save up that lump percentage so you can save up that lump sum so you can eventually allow that sum so you can eventually allow that sum so you can eventually allow that money to coast to retirement for you money to coast to retirement for you money to coast to retirement for you behave you know the average -year old behave you know the average -year old behave you know the average -year old in America has a net worth of about in America has a net worth of about in America has a net worth of about $, it's pretty clear to see that $, it's pretty clear to see that $, it's pretty clear to see that coast fire is not a typical strategy coast fire is not a typical strategy coast fire is not a typical strategy however most people also don't belong to however most people also don't belong to however most people also don't belong to the fire community either now saving up the fire community either now saving up the fire community either now saving up a large sum of money at a very early age a large sum of money at a very early age a large sum of money at a very early age is not easy but it is not impossible is not easy but it is not impossible is not easy but it is not impossible either it's easier to save and be frugal either it's easier to save and be frugal either it's easier to save and be frugal when you're younger than when you're when you're younger than when you're when you're younger than when you're older like say when you're as opposed older like say when you're as opposed older like say when you're as opposed to when you're because when you're to when you're because when you're to when you're because when you're you could just continue like living like you could just continue like living like you could just continue like living like a college kid you could have a roommate a college kid you could have a roommate a college kid you could have a roommate you could eat on the cheap and you could you could eat on the cheap and you could you could eat on the cheap and you could continue to drive your clunker from high continue to drive your clunker from high continue to drive your clunker from high school however once you get to and school however once you get to and school however once you get to and you have a family's to support and a you have a family's to support and a you have a family's to support and a mortgage to pay everything gets a little mortgage to pay everything gets a little mortgage to pay everything gets a little bit harder but if you have that ability bit harder but if you have that ability bit harder but if you have that ability to save a very large chunk of your money to save a very large chunk of your money to save a very large chunk of your money at a very young age coast fire very well at a very young age coast fire very well at a very young age coast fire very well could be for you let me know what you could be for you let me know what you could be for you let me know what you guys think what'd you think about post guys think what'd you think about post guys think what'd you think about post fire is ice fire is ice fire is ice I actually think it's one of the most I actually think it's one of the most I actually think it's one of the most unique approaches to financial unique approaches to financial unique approaches to financial independence out there I love the independence out there I love the independence out there I love the freedom it gives you later in life after freedom it gives you later in life after freedom it gives you later in life after just a few years of frugality and just a few years of frugality and just a few years of frugality and sacrifice so let me know your thoughts sacrifice so let me know your thoughts sacrifice so let me know your thoughts down below that's gonna wrap it up for down below that's gonna wrap it up for down below that's gonna wrap it up for me today remember I post new videos me today remember I post new videos me today remember I post new videos every Monday and Thursday be sure to hit every Monday and Thursday be sure to hit every Monday and Thursday be sure to hit that like the button on the way out ring that like the button on the way out ring that like the button on the way out ring that subscribe bell so you get notified that subscribe bell so you get notified that subscribe bell so you get notified every time I post a new video have a every time I post a new video have a every time I post a new video have a good one bye guys a bye WEBVTT Kind: captions Language: en hey guys how's it going welcome back to hey guys how's it going welcome back to hey guys how's it going welcome back to another video if you guys are new here another video if you guys are new here another video if you guys are new here my name is JJ and on this channel I like my name is JJ and on this channel I like my name is JJ and on this channel I like to talk about personal finance investing to talk about personal finance investing to talk about personal finance investing and also documenting my know my wife's and also documenting my know my wife's and also documenting my know my wife's journey to becoming financially journey to becoming financially journey to becoming financially independent so if that's something that independent so if that's something that independent so if that's something that interests you make sure you hit that red interests you make sure you hit that red interests you make sure you hit that red subscribe button down below so today's subscribe button down below so today's subscribe button down below so today's video is actually a collab with Kelly video is actually a collab with Kelly video is actually a collab with Kelly over at Freedom and a budget kelly has over at Freedom and a budget kelly has over at Freedom and a budget kelly has an awesome channel helping people an awesome channel helping people an awesome channel helping people achieve financial freedom within their achieve financial freedom within their achieve financial freedom within their budget and to become intentional with budget and to become intentional with budget and to become intentional with their money so after you watch this their money so after you watch this their money so after you watch this video make sure you go over and check video make sure you go over and check video make sure you go over and check out Kelly's video on the same topic out Kelly's video on the same topic out Kelly's video on the same topic check out her channel I'll have the check out her channel I'll have the check out her channel I'll have the links of her video that she's putting links of her video that she's putting links of her video that she's putting out with this collab and also her out with this collab and also her out with this collab and also her channel down in the description below so channel down in the description below so channel down in the description below so make sure you go over and check her out make sure you go over and check her out make sure you go over and check her out and tell her that JJ sent you from this and tell her that JJ sent you from this and tell her that JJ sent you from this collab so in today's video I'm gonna be collab so in today's video I'm gonna be collab so in today's video I'm gonna be talking about the difference between talking about the difference between talking about the difference between Dave Ramsey and the fire community now I Dave Ramsey and the fire community now I Dave Ramsey and the fire community now I have five topics that I'm gonna be have five topics that I'm gonna be have five topics that I'm gonna be talking about I'm gonna be giving Dave's talking about I'm gonna be giving Dave's talking about I'm gonna be giving Dave's point of view on that topic I'm gonna point of view on that topic I'm gonna point of view on that topic I'm gonna give the fire of communities view on the give the fire of communities view on the give the fire of communities view on the topic and then at the end I'm gonna give topic and then at the end I'm gonna give topic and then at the end I'm gonna give my own view or I guess my opinion or who my own view or I guess my opinion or who my own view or I guess my opinion or who I agree with on that certain topic so I agree with on that certain topic so I agree with on that certain topic so without further ado let's jump right without further ado let's jump right without further ado let's jump right into the first topic and that is credit into the first topic and that is credit into the first topic and that is credit cards so first of all for those of us cards so first of all for those of us cards so first of all for those of us that know Dave Ramsey we know that the that know Dave Ramsey we know that the that know Dave Ramsey we know that the guy hates credit cards credit cards guy hates credit cards credit cards guy hates credit cards credit cards stupid so Dave believes that having a stupid so Dave believes that having a stupid so Dave believes that having a credit card actually makes it that much credit card actually makes it that much credit card actually makes it that much easier for you to spend the money so he easier for you to spend the money so he easier for you to spend the money so he insists on you either using cash such as insists on you either using cash such as insists on you either using cash such as you know using the envelope system where you know using the envelope system where you know using the envelope system where you stuff each envelope for each item in you stuff each envelope for each item in you stuff each envelope for each item in your budget or he also recommends using your budget or he also recommends using your budget or he also recommends using a debit card now Dave thinks that if you a debit card now Dave thinks that if you a debit card now Dave thinks that if you are always using a credit card to buy are always using a credit card to buy are always using a credit card to buy items or to buy stuff or to pay bills items or to buy stuff or to pay bills items or to buy stuff or to pay bills with that you're never actually gonna with that you're never actually gonna with that you're never actually gonna pay the credit card off he thinks of it pay the credit card off he thinks of it pay the credit card off he thinks of it as a more of a psychological thought or as a more of a psychological thought or as a more of a psychological thought or meaning to where you're gonna have that meaning to where you're gonna have that meaning to where you're gonna have that credit card bill you're gonna see that credit card bill you're gonna see that credit card bill you're gonna see that full amount at the end of the month full amount at the end of the month full amount at the end of the month whether it be a thousand bucks or four whether it be a thousand bucks or four whether it be a thousand bucks or four or five thousand dollars and you're not or five thousand dollars and you're not or five thousand dollars and you're not gonna want to pay that off with the cash gonna want to pay that off with the cash gonna want to pay that off with the cash you have in the bank or maybe you simply you have in the bank or maybe you simply you have in the bank or maybe you simply just can't afford to pay it off he just can't afford to pay it off he just can't afford to pay it off he thinks that you should not even put thinks that you should not even put thinks that you should not even put yourself in that predicament because you yourself in that predicament because you yourself in that predicament because you may get one may get one may get one over by just paying off that or paying over by just paying off that or paying over by just paying off that or paying that minimum payment of the hundred that minimum payment of the hundred that minimum payment of the hundred bucks or whatever it may be and then bucks or whatever it may be and then bucks or whatever it may be and then you'll be in credit card debt now with you'll be in credit card debt now with you'll be in credit card debt now with that being said let's jump over to the that being said let's jump over to the that being said let's jump over to the fire community and their thoughts on fire community and their thoughts on fire community and their thoughts on credit cards the fire community thinks credit cards the fire community thinks credit cards the fire community thinks well most of them for that matter thinks well most of them for that matter thinks well most of them for that matter thinks that credit cards are a must so one that credit cards are a must so one that credit cards are a must so one thing I've realized from either thing I've realized from either thing I've realized from either listening to podcast reading blogs of listening to podcast reading blogs of listening to podcast reading blogs of people in the fire community is that people in the fire community is that people in the fire community is that they very very much value travel they they very very much value travel they they very very much value travel they love to travel and one of the best ways love to travel and one of the best ways love to travel and one of the best ways that you can reduce your costs on travel that you can reduce your costs on travel that you can reduce your costs on travel or maybe even travel for free is by or maybe even travel for free is by or maybe even travel for free is by hacking credit cards or turning credit hacking credit cards or turning credit hacking credit cards or turning credit cards or using credit card reward points cards or using credit card reward points cards or using credit card reward points to pay for your travel you can literally to pay for your travel you can literally to pay for your travel you can literally use credit card rewards to pay for use credit card rewards to pay for use credit card rewards to pay for flights to pay for hotels and to use flights to pay for hotels and to use flights to pay for hotels and to use rewards for cash back items whatever you rewards for cash back items whatever you rewards for cash back items whatever you end up using your credit card rewards end up using your credit card rewards end up using your credit card rewards for for the most part most people in the for for the most part most people in the for for the most part most people in the fire community you want to use their fire community you want to use their fire community you want to use their credit cards to pay for their travel now credit cards to pay for their travel now credit cards to pay for their travel now I'm not gonna get into the details of I'm not gonna get into the details of I'm not gonna get into the details of how you actually do that in this video how you actually do that in this video how you actually do that in this video that's for another video for another that's for another video for another that's for another video for another time I'm really just trying to let you time I'm really just trying to let you time I'm really just trying to let you guys know the difference of thoughts and guys know the difference of thoughts and guys know the difference of thoughts and opinions from Dave Ramsey versus the opinions from Dave Ramsey versus the opinions from Dave Ramsey versus the fire community so now for my opinion and fire community so now for my opinion and fire community so now for my opinion and what I think about using credit cards what I think about using credit cards what I think about using credit cards and I honestly on this topic I don't and I honestly on this topic I don't and I honestly on this topic I don't agree with either or I don't agree with agree with either or I don't agree with agree with either or I don't agree with the fire community as you should always the fire community as you should always the fire community as you should always be using credit cards for travel rewards be using credit cards for travel rewards be using credit cards for travel rewards and I also don't agree with Dave Ramsey and I also don't agree with Dave Ramsey and I also don't agree with Dave Ramsey on no one should ever use credit cards on no one should ever use credit cards on no one should ever use credit cards for anything there's a couple of for anything there's a couple of for anything there's a couple of reasonings for this and I you know I reasonings for this and I you know I reasonings for this and I you know I know people from the fire community once know people from the fire community once know people from the fire community once I say this they would agree with me but I say this they would agree with me but I say this they would agree with me but I personally believe that not everyone I personally believe that not everyone I personally believe that not everyone should be using a credit card to be able should be using a credit card to be able should be using a credit card to be able to use a credit card to get those reward to use a credit card to get those reward to use a credit card to get those reward points to pay for your traveling points to pay for your traveling points to pay for your traveling experiences to be able to pay for your experiences to be able to pay for your experiences to be able to pay for your flights you first need to have good flights you first need to have good flights you first need to have good financial habits if you do not have good financial habits if you do not have good financial habits if you do not have good financial habits then you do not need to financial habits then you do not need to financial habits then you do not need to be using a credit card and you know that be using a credit card and you know that be using a credit card and you know that about yourself you know that you cannot about yourself you know that you cannot about yourself you know that you cannot stop yourself from maybe buying that stop yourself from maybe buying that stop yourself from maybe buying that fancy pair of shoes that you see or fancy pair of shoes that you see or fancy pair of shoes that you see or buying that new purse that you cyr out buying that new purse that you cyr out buying that new purse that you cyr out on the mall if you have that credit card on the mall if you have that credit card on the mall if you have that credit card and it's super easy for you just and it's super easy for you just and it's super easy for you just wipe it and buy that item then maybe wipe it and buy that item then maybe wipe it and buy that item then maybe using credit card reward points to fund using credit card reward points to fund using credit card reward points to fund your traveling experiences your funding your traveling experiences your funding your traveling experiences your funding your travel is not the best for you now your travel is not the best for you now your travel is not the best for you now with that being said I do agree with with that being said I do agree with with that being said I do agree with using credit cards to fund your travel using credit cards to fund your travel using credit cards to fund your travel if you are good financially if you have if you are good financially if you have if you are good financially if you have good financial habits my wife and I use good financial habits my wife and I use good financial habits my wife and I use credit cards we put every single bill credit cards we put every single bill credit cards we put every single bill that we can we buy every single purchase that we can we buy every single purchase that we can we buy every single purchase that we have we use our credit cards for that we have we use our credit cards for that we have we use our credit cards for because we want to use our rewards now because we want to use our rewards now because we want to use our rewards now usually whenever we're building up usually whenever we're building up usually whenever we're building up rewards we have some type of travel plan rewards we have some type of travel plan rewards we have some type of travel plan or we're gonna go in mind for example or we're gonna go in mind for example or we're gonna go in mind for example one of the things we did recently was we one of the things we did recently was we one of the things we did recently was we were able to fly from Hawaii back home were able to fly from Hawaii back home were able to fly from Hawaii back home on a one-way trip for free using the on a one-way trip for free using the on a one-way trip for free using the credit card points that we've built up credit card points that we've built up credit card points that we've built up but we knew that we were gonna pay that but we knew that we were gonna pay that but we knew that we were gonna pay that credit card off in full every single credit card off in full every single credit card off in full every single month so the next topic that I want to month so the next topic that I want to month so the next topic that I want to talk about is old-fashioned versus talk about is old-fashioned versus talk about is old-fashioned versus new-age now what I mean by this is is new-age now what I mean by this is is new-age now what I mean by this is is first Dave tends to follow the first Dave tends to follow the first Dave tends to follow the old-fashioned concept of life so what I old-fashioned concept of life so what I old-fashioned concept of life so what I mean by this is is this is the stuff mean by this is is this is the stuff mean by this is is this is the stuff that we were told growing up in school that we were told growing up in school that we were told growing up in school you know you you're supposed to get good you know you you're supposed to get good you know you you're supposed to get good grades you're supposed to graduate go to grades you're supposed to graduate go to grades you're supposed to graduate go to a good college graduate from that a good college graduate from that a good college graduate from that college find a good career stay in that college find a good career stay in that college find a good career stay in that career for years retire when you're career for years retire when you're career for years retire when you're years old and you have lived a years old and you have lived a years old and you have lived a successful happy life now as for the new successful happy life now as for the new successful happy life now as for the new age the fire community likes to take a age the fire community likes to take a age the fire community likes to take a little bit of a different route on this little bit of a different route on this little bit of a different route on this topic slaving away at a nine-to-five topic slaving away at a nine-to-five topic slaving away at a nine-to-five just does not seem like the idea of a just does not seem like the idea of a just does not seem like the idea of a good time and living a great life to the good time and living a great life to the good time and living a great life to the fire community they want to make the fire community they want to make the fire community they want to make the most out of life and to work on projects most out of life and to work on projects most out of life and to work on projects that they actually enjoy working on aka that they actually enjoy working on aka that they actually enjoy working on aka passion projects this has brought up a passion projects this has brought up a passion projects this has brought up a lot in the fire community they say to lot in the fire community they say to lot in the fire community they say to you know work your jday job and then you know work your jday job and then you know work your jday job and then also maybe create a side hustle maybe also maybe create a side hustle maybe also maybe create a side hustle maybe you work on something to bring you some you work on something to bring you some you work on something to bring you some additional income to help speed up the additional income to help speed up the additional income to help speed up the process and your investments to me maybe process and your investments to me maybe process and your investments to me maybe be able to help you find your lifestyle be able to help you find your lifestyle be able to help you find your lifestyle to be able to retire early so the to be able to retire early so the to be able to retire early so the difference here is dave says to you know difference here is dave says to you know difference here is dave says to you know go to school get good grades go to go to school get good grades go to go to school get good grades go to college get a career and work at that college get a career and work at that college get a career and work at that career career career for plus years then retire the for plus years then retire the for plus years then retire the fire community here is saying it's fire community here is saying it's fire community here is saying it's simply just not like that they want to simply just not like that they want to simply just not like that they want to be able to make their own route in life be able to make their own route in life be able to make their own route in life they want to be in charge of what they they want to be in charge of what they they want to be in charge of what they do they want to be in charge of what do they want to be in charge of what do they want to be in charge of what they work on they don't want to be told they work on they don't want to be told they work on they don't want to be told what to do while they're at work they what to do while they're at work they what to do while they're at work they don't be sitting in an office all day so don't be sitting in an office all day so don't be sitting in an office all day so my opinion or my take on this topic you my opinion or my take on this topic you my opinion or my take on this topic you know of old fashion versus new age is I know of old fashion versus new age is I know of old fashion versus new age is I % agree with the fire community on % agree with the fire community on % agree with the fire community on this topic I think that you need to this topic I think that you need to this topic I think that you need to follow your passion you don't need to follow your passion you don't need to follow your passion you don't need to worry about going straight to college worry about going straight to college worry about going straight to college out of high school you don't need to be out of high school you don't need to be out of high school you don't need to be slaving away at a job that you slaving away at a job that you slaving away at a job that you absolutely hate just to fund your absolutely hate just to fund your absolutely hate just to fund your lifestyle lifestyle lifestyle no brynee you do have to get a job you no brynee you do have to get a job you no brynee you do have to get a job you have to earn some type of income but have to earn some type of income but have to earn some type of income but maybe you're able to create a business maybe you're able to create a business maybe you're able to create a business or maybe you're able to create a side or maybe you're able to create a side or maybe you're able to create a side hustle while you're just graduating high hustle while you're just graduating high hustle while you're just graduating high school and you know you don't have many school and you know you don't have many school and you know you don't have many expenses you don't have kids you know expenses you don't have kids you know expenses you don't have kids you know the house to pay for your rent if you're the house to pay for your rent if you're the house to pay for your rent if you're still living with your parents and still living with your parents and still living with your parents and you're able to build up some some sort you're able to build up some some sort you're able to build up some some sort of income and majority of the fire of income and majority of the fire of income and majority of the fire community is building income online community is building income online community is building income online whether that be through a YouTube whether that be through a YouTube whether that be through a YouTube channel a blog a podcast or whatever it channel a blog a podcast or whatever it channel a blog a podcast or whatever it may be they're building up income to may be they're building up income to may be they're building up income to fund their lifestyle to do what they fund their lifestyle to do what they fund their lifestyle to do what they want to do so the third topic is using want to do so the third topic is using want to do so the third topic is using debt to fund investments and this is debt to fund investments and this is debt to fund investments and this is mainly geared towards just real estate mainly geared towards just real estate mainly geared towards just real estate I'm not talking about using debt to buy I'm not talking about using debt to buy I'm not talking about using debt to buy stocks or anything like that Dave is stocks or anything like that Dave is stocks or anything like that Dave is absolutely positively % against using absolutely positively % against using absolutely positively % against using debt to fund any sort of investment for debt to fund any sort of investment for debt to fund any sort of investment for that matter even if it's real estate that matter even if it's real estate that matter even if it's real estate there are calls coming in all the time there are calls coming in all the time there are calls coming in all the time on Dave Ramsey show asking what are your on Dave Ramsey show asking what are your on Dave Ramsey show asking what are your thoughts on using a -year fixed thoughts on using a -year fixed thoughts on using a -year fixed conventional loan to buy a rental conventional loan to buy a rental conventional loan to buy a rental property blah blah blah blah and dave property blah blah blah blah and dave property blah blah blah blah and dave has the same answer for every single has the same answer for every single has the same answer for every single phone call and it's one word and the phone call and it's one word and the phone call and it's one word and the word is no he is totally against using word is no he is totally against using word is no he is totally against using debt to fund and an investment and when debt to fund and an investment and when debt to fund and an investment and when I say investment I'm meaning % of the I say investment I'm meaning % of the I say investment I'm meaning % of the time it's the funding a rental property time it's the funding a rental property time it's the funding a rental property or some sort of real estate investment or some sort of real estate investment or some sort of real estate investment now as for the fire community there are now as for the fire community there are now as for the fire community there are quite a few of individuals that actually quite a few of individuals that actually quite a few of individuals that actually have used debt to purchase rental have used debt to purchase rental have used debt to purchase rental properties or some sort of real estate properties or some sort of real estate properties or some sort of real estate investment they think that's okay if you investment they think that's okay if you investment they think that's okay if you are doing it in the correct manner now are doing it in the correct manner now are doing it in the correct manner now my take are my opinion on this as for my take are my opinion on this as for my take are my opinion on this as for using debt to fund some sort of real using debt to fund some sort of real using debt to fund some sort of real estate investment is I am a hundred estate investment is I am a hundred estate investment is I am a hundred percent of an agreement with the fire percent of an agreement with the fire percent of an agreement with the fire community but there's a couple community but there's a couple community but there's a couple stipulations that I think about whenever stipulations that I think about whenever stipulations that I think about whenever someone goes to use debt to find a real someone goes to use debt to find a real someone goes to use debt to find a real estate investment first off you need to estate investment first off you need to estate investment first off you need to be set up financially you do not need to be set up financially you do not need to be set up financially you do not need to have a bunch of consumer debt you don't have a bunch of consumer debt you don't have a bunch of consumer debt you don't need to have a bunch of student loans to need to have a bunch of student loans to need to have a bunch of student loans to your name I would recommend first paying your name I would recommend first paying your name I would recommend first paying off that debt before even thinking about off that debt before even thinking about off that debt before even thinking about using debt to buy a rental property you using debt to buy a rental property you using debt to buy a rental property you need to be ahead financially have no need to be ahead financially have no need to be ahead financially have no consumer debt and then think about using consumer debt and then think about using consumer debt and then think about using that process to buy a real estate that process to buy a real estate that process to buy a real estate investment another thing to think about investment another thing to think about investment another thing to think about is to never over leveraged yourself is to never over leveraged yourself is to never over leveraged yourself whenever you're buying rental properties whenever you're buying rental properties whenever you're buying rental properties this is super super scary this happened this is super super scary this happened this is super super scary this happened to a lot of people in oh wait oh nine to a lot of people in oh wait oh nine to a lot of people in oh wait oh nine whenever we have the recession a lot of whenever we have the recession a lot of whenever we have the recession a lot of people use a ton of debt to buy rental people use a ton of debt to buy rental people use a ton of debt to buy rental properties when the recession came they properties when the recession came they properties when the recession came they weren't able to pay their mortgages weren't able to pay their mortgages weren't able to pay their mortgages people stopped living there or they people stopped living there or they people stopped living there or they weren't paying the enough for it to make weren't paying the enough for it to make weren't paying the enough for it to make up the mortgage so you know it's stuff up the mortgage so you know it's stuff up the mortgage so you know it's stuff like that that you need to be aware of like that that you need to be aware of like that that you need to be aware of you need to make sure that you're not you need to make sure that you're not you need to make sure that you're not over leveraging yourself when you're over leveraging yourself when you're over leveraging yourself when you're buying these properties maybe you're buying these properties maybe you're buying these properties maybe you're able to get awarded or not awarded but able to get awarded or not awarded but able to get awarded or not awarded but maybe you're able to get funded or be maybe you're able to get funded or be maybe you're able to get funded or be able to pull out the money to borrow able to pull out the money to borrow able to pull out the money to borrow enough to go buy ten rental properties enough to go buy ten rental properties enough to go buy ten rental properties that doesn't mean you should go buy ten that doesn't mean you should go buy ten that doesn't mean you should go buy ten rental properties you need to make sure rental properties you need to make sure rental properties you need to make sure that you would be able to pay the that you would be able to pay the that you would be able to pay the mortgages on those if all of those mortgages on those if all of those mortgages on those if all of those properties were to be vacant at the same properties were to be vacant at the same properties were to be vacant at the same time now some people would not agree time now some people would not agree time now some people would not agree with me on that but that's just misses with me on that but that's just misses with me on that but that's just misses this is my own personal opinion on what this is my own personal opinion on what this is my own personal opinion on what I think of borrowing money to fund a I think of borrowing money to fund a I think of borrowing money to fund a real estate investment so the next topic real estate investment so the next topic real estate investment so the next topic for Dave Ramsey versus the fire for Dave Ramsey versus the fire for Dave Ramsey versus the fire community is actively managed mutual community is actively managed mutual community is actively managed mutual funds versus low-cost index funds now funds versus low-cost index funds now funds versus low-cost index funds now I'm not going to go into super full I'm not going to go into super full I'm not going to go into super full detail on this topic because honestly detail on this topic because honestly detail on this topic because honestly that would be a whole nother video that would be a whole nother video that would be a whole nother video talking about the differences in talking about the differences in talking about the differences in benefits pros and cons between actively benefits pros and cons between actively benefits pros and cons between actively managed mutual funds and low-cost index managed mutual funds and low-cost index managed mutual funds and low-cost index funds I'm pretty much just going to give funds I'm pretty much just going to give funds I'm pretty much just going to give you the view points of each community you the view points of each community you the view points of each community and what they think and what they think and what they think and what they think and what they think and what they think is right so as far as Dave is right so as far as Dave is right so as far as Dave Dave Ramsey always he's a big component Dave Ramsey always he's a big component Dave Ramsey always he's a big component or he is very large in favor of using or he is very large in favor of using or he is very large in favor of using actively managed mutual funds he always actively managed mutual funds he always actively managed mutual funds he always talks about on a show you know you're talks about on a show you know you're talks about on a show you know you're able to obtain a twelve percent interest able to obtain a twelve percent interest able to obtain a twelve percent interest rate just by investing in the right rate just by investing in the right rate just by investing in the right actively managed you know it's mutual actively managed you know it's mutual actively managed you know it's mutual funds they're out there you just have to funds they're out there you just have to funds they're out there you just have to search for them now the fire community search for them now the fire community search for them now the fire community for that matter they think actively for that matter they think actively for that matter they think actively mutual funds are like well I'll just say mutual funds are like well I'll just say mutual funds are like well I'll just say they don't like them that much oh that's they don't like them that much oh that's they don't like them that much oh that's all I can say be nice and they think all I can say be nice and they think all I can say be nice and they think that you should be investing your that you should be investing your that you should be investing your hard-earned money into low-cost index hard-earned money into low-cost index hard-earned money into low-cost index funds and there's a couple reasons for funds and there's a couple reasons for funds and there's a couple reasons for this the main reason being that there is this the main reason being that there is this the main reason being that there is a study done and they the studies found a study done and they the studies found a study done and they the studies found out that percent of the actively out that percent of the actively out that percent of the actively managed mutual funds out there tend to managed mutual funds out there tend to managed mutual funds out there tend to not beat the market over a long haul so not beat the market over a long haul so not beat the market over a long haul so if you save for the next years let's if you save for the next years let's if you save for the next years let's say you put a thousand dollars in an say you put a thousand dollars in an say you put a thousand dollars in an actively managed mutual fund or and then actively managed mutual fund or and then actively managed mutual fund or and then you put a thousand dollars in a low-cost you put a thousand dollars in a low-cost you put a thousand dollars in a low-cost index fund at the end of the twenty to index fund at the end of the twenty to index fund at the end of the twenty to thirty years that low-cost index fund thirty years that low-cost index fund thirty years that low-cost index fund which costs less money to own or to have which costs less money to own or to have which costs less money to own or to have your money invested in that's gonna do your money invested in that's gonna do your money invested in that's gonna do better over a long period of time rather better over a long period of time rather better over a long period of time rather than the actively managed fund because than the actively managed fund because than the actively managed fund because it is it's tracking the market it it is it's tracking the market it it is it's tracking the market it follows the market you're not trying to follows the market you're not trying to follows the market you're not trying to beat the market beat the market beat the market because most of the people who try to because most of the people who try to because most of the people who try to beat the market lose now for me and my beat the market lose now for me and my beat the market lose now for me and my viewpoint on this topic I agree % viewpoint on this topic I agree % viewpoint on this topic I agree % with the fire community I do not own any with the fire community I do not own any with the fire community I do not own any actively mutual funds whatsoever I am actively mutual funds whatsoever I am actively mutual funds whatsoever I am honestly it majority of my portfolio is honestly it majority of my portfolio is honestly it majority of my portfolio is in index funds low-cost index funds in index funds low-cost index funds in index funds low-cost index funds mainly for that reason is actively mainly for that reason is actively mainly for that reason is actively managed mutual funds they're hard to managed mutual funds they're hard to managed mutual funds they're hard to find the ones that will actually beat find the ones that will actually beat find the ones that will actually beat the market on a consistent basis over a the market on a consistent basis over a the market on a consistent basis over a long term or a long time long period so long term or a long time long period so long term or a long time long period so I tend to invest in just following the I tend to invest in just following the I tend to invest in just following the market whatever the markets gonna do market whatever the markets gonna do market whatever the markets gonna do that's what I'm gonna get as a return that's what I'm gonna get as a return that's what I'm gonna get as a return I'm perfectly fine with that and I would I'm perfectly fine with that and I would I'm perfectly fine with that and I would rather have that as a return then rather have that as a return then rather have that as a return then wondering if I'm gonna beat the market wondering if I'm gonna beat the market wondering if I'm gonna beat the market every single year so I agree % at the every single year so I agree % at the every single year so I agree % at the fire community on investing your fire community on investing your fire community on investing your hard-earned money into low-cost index hard-earned money into low-cost index hard-earned money into low-cost index funds now the fifth and funds now the fifth and funds now the fifth and final topic is budgeting now for Dave final topic is budgeting now for Dave final topic is budgeting now for Dave Ramsey Dave thanks budgeting is the way Ramsey Dave thanks budgeting is the way Ramsey Dave thanks budgeting is the way to go Dave even created a budgeting app to go Dave even created a budgeting app to go Dave even created a budgeting app called every dollar to help his viewers called every dollar to help his viewers called every dollar to help his viewers and his listeners help budget their and his listeners help budget their and his listeners help budget their money better dave swears by tracking money better dave swears by tracking money better dave swears by tracking your expenses helps you realize how much your expenses helps you realize how much your expenses helps you realize how much money you have going out every single money you have going out every single money you have going out every single month because you are tracking every month because you are tracking every month because you are tracking every single dollar single dollar single dollar it's the app called every dollar that it's the app called every dollar that it's the app called every dollar that goes out of your pocket every single goes out of your pocket every single goes out of your pocket every single month so you know at the end of the month so you know at the end of the month so you know at the end of the month how much your money you can put to month how much your money you can put to month how much your money you can put to his debt or how much money you can put his debt or how much money you can put his debt or how much money you can put towards investments or savings or towards investments or savings or towards investments or savings or whatever it may be so some people in the whatever it may be so some people in the whatever it may be so some people in the fire community actually don't use fire community actually don't use fire community actually don't use budgets at all they tend to think more budgets at all they tend to think more budgets at all they tend to think more of thinking about each individual of thinking about each individual of thinking about each individual purchase or each individual transaction purchase or each individual transaction purchase or each individual transaction and the wise words of mister money and the wise words of mister money and the wise words of mister money mustache think before you make every mustache think before you make every mustache think before you make every money transaction and optimize that money transaction and optimize that money transaction and optimize that transaction right at the moment what transaction right at the moment what transaction right at the moment what they're saying is is whenever you go to they're saying is is whenever you go to they're saying is is whenever you go to purchase an item or whenever you're purchase an item or whenever you're purchase an item or whenever you're going to buy something think about if going to buy something think about if going to buy something think about if you really need that item think about you really need that item think about you really need that item think about where that item lines up in your budget where that item lines up in your budget where that item lines up in your budget have you overspent for the month do you have you overspent for the month do you have you overspent for the month do you really need that item is it something really need that item is it something really need that item is it something that you want or is it something that that you want or is it something that that you want or is it something that you need to help better your life and if you need to help better your life and if you need to help better your life and if it isn't then don't buy it if it is then it isn't then don't buy it if it is then it isn't then don't buy it if it is then purchase it that's simply that's all it purchase it that's simply that's all it purchase it that's simply that's all it is the fire community thinks that you is the fire community thinks that you is the fire community thinks that you don't need to spend the time every don't need to spend the time every don't need to spend the time every single month filling out a budget single month filling out a budget single month filling out a budget tracking your expenses because you tracking your expenses because you tracking your expenses because you overall if you're in the fire community overall if you're in the fire community overall if you're in the fire community you're pretty good with your money so you're pretty good with your money so you're pretty good with your money so you don't need the budget to tell you you don't need the budget to tell you you don't need the budget to tell you how much you can spend on each topic how much you can spend on each topic how much you can spend on each topic because generally you're not gonna because generally you're not gonna because generally you're not gonna overspend on anything for the month so overspend on anything for the month so overspend on anything for the month so you are really just budgets are useless you are really just budgets are useless you are really just budgets are useless you don't need it that's that's again you don't need it that's that's again you don't need it that's that's again that's not everyone in the fire that's not everyone in the fire that's not everyone in the fire community but that is some view points community but that is some view points community but that is some view points within the community now for me and my within the community now for me and my within the community now for me and my opinion on budgets is I actually kind of opinion on budgets is I actually kind of opinion on budgets is I actually kind of agree like / I used to be a hundred agree like / I used to be a hundred agree like / I used to be a hundred percent on Dave side with the whole percent on Dave side with the whole percent on Dave side with the whole budgeting aspect and and tracking your budgeting aspect and and tracking your budgeting aspect and and tracking your expenses but the more and more I expenses but the more and more I expenses but the more and more I realized and I've had a few months in realized and I've had a few months in realized and I've had a few months in the past where I really haven't budgeted the past where I really haven't budgeted the past where I really haven't budgeted at all we were still able to put our at all we were still able to put our at all we were still able to put our typical amount that we usually do in the typical amount that we usually do in the typical amount that we usually do in the savings to investments and whatever it savings to investments and whatever it savings to investments and whatever it may be so I'm really finding out that may be so I'm really finding out that may be so I'm really finding out that if you just think about each transaction if you just think about each transaction if you just think about each transaction in your head and you know generally how in your head and you know generally how in your head and you know generally how much you've spent that much on eating much you've spent that much on eating much you've spent that much on eating out or you know on gas or whatever it out or you know on gas or whatever it out or you know on gas or whatever it may be that you may not really need to may be that you may not really need to may be that you may not really need to fill out a budget so again I'm on the fill out a budget so again I'm on the fill out a budget so again I'm on the line here I don't agree % with fire line here I don't agree % with fire line here I don't agree % with fire community and I don't agree % with community and I don't agree % with community and I don't agree % with Dave Ramsey you know because there are Dave Ramsey you know because there are Dave Ramsey you know because there are people out there who need to live by the people out there who need to live by the people out there who need to live by the budget and there's people out there who budget and there's people out there who budget and there's people out there who can maybe get away with not following a can maybe get away with not following a can maybe get away with not following a budget and still be able to save a lot budget and still be able to save a lot budget and still be able to save a lot of money every single month so that's it of money every single month so that's it of money every single month so that's it for the video guys those are the five for the video guys those are the five for the video guys those are the five topics that I wanted to talk about the topics that I wanted to talk about the topics that I wanted to talk about the difference point of views for Dave difference point of views for Dave difference point of views for Dave Ramsey versus the fire community I hope Ramsey versus the fire community I hope Ramsey versus the fire community I hope you guys enjoyed the video if you have you guys enjoyed the video if you have you guys enjoyed the video if you have any questions or anything make sure you any questions or anything make sure you any questions or anything make sure you leave them down the comments down below leave them down the comments down below leave them down the comments down below make sure you hit that like button and make sure you hit that like button and make sure you hit that like button and also don't forget to check out Kelly also don't forget to check out Kelly also don't forget to check out Kelly over at freedom in a budget check out over at freedom in a budget check out over at freedom in a budget check out her video and her channel I'll have both her video and her channel I'll have both her video and her channel I'll have both links down in the description and a links down in the description and a links down in the description and a total next video you guys take care total next video you guys take care total next video you guys take care [Music] WEBVTT Kind: captions Language: en did destroy the fire movement no did destroy the fire movement no did destroy the fire movement no seriously is fire even possible it's seriously is fire even possible it's seriously is fire even possible it's brian brian brian preston the money guy yeah brian i'm preston the money guy yeah brian i'm preston the money guy yeah brian i'm really excited about this one because really excited about this one because really excited about this one because we're gonna do something we've never we're gonna do something we've never we're gonna do something we've never actually done on the money guy show actually done on the money guy show actually done on the money guy show before we're going to take you before we're going to take you before we're going to take you the listener you our audience on the the listener you our audience on the the listener you our audience on the journey journey journey kind of of what it would be like to be a kind of of what it would be like to be a kind of of what it would be like to be a financial planning client financial planning client financial planning client trying to determine is fire trying to determine is fire trying to determine is fire is early retirement actually possible is early retirement actually possible is early retirement actually possible and so what you mean to kind of set the and so what you mean to kind of set the and so what you mean to kind of set the stage here is we're going to do a normal stage here is we're going to do a normal stage here is we're going to do a normal show the first part of it but you have a show the first part of it but you have a show the first part of it but you have a case study that's right where we're case study that's right where we're case study that's right where we're actually going to pull actually going to pull actually going to pull our stress test monte carlo analysing our stress test monte carlo analysing our stress test monte carlo analysing absolutely retirement software and absolutely retirement software and absolutely retirement software and actually put it against actually put it against actually put it against some fire scenarios that are pretty some fire scenarios that are pretty some fire scenarios that are pretty common out there in the movement that's common out there in the movement that's common out there in the movement that's exactly right exactly right exactly right so first for those that are not familiar so first for those that are not familiar so first for those that are not familiar fire what does that even stand for fire what does that even stand for fire what does that even stand for financial independence retire financial independence retire financial independence retire early it really means and i think i mean early it really means and i think i mean early it really means and i think i mean this is a pretty noble this is a pretty noble this is a pretty noble desire and goal is the fact that fire is desire and goal is the fact that fire is desire and goal is the fact that fire is actually looking to actually looking to actually looking to the dream is that we all know you want the dream is that we all know you want the dream is that we all know you want to do you want to build money up so you to do you want to build money up so you to do you want to build money up so you can do can do can do what you want when you want and really what you want when you want and really what you want when you want and really kind of how you want kind of how you want kind of how you want that's really what the fire movement is that's really what the fire movement is that's really what the fire movement is so you can leave the workforce early so you can leave the workforce early so you can leave the workforce early that's right you know we they say hey that's right you know we they say hey that's right you know we they say hey the whole paradigm of life is incorrect the whole paradigm of life is incorrect the whole paradigm of life is incorrect normally we normally we normally we work for years and then maybe we get work for years and then maybe we get work for years and then maybe we get to retire for or . we want to flip to retire for or . we want to flip to retire for or . we want to flip that what if we only that what if we only that what if we only worked for years and we got to enjoy worked for years and we got to enjoy worked for years and we got to enjoy retirement for a lot longer retirement for a lot longer retirement for a lot longer and i think that's the general idea and i think that's the general idea and i think that's the general idea around why the fire movement is so around why the fire movement is so around why the fire movement is so motivated motivated motivated to exit the workforce early so we've to exit the workforce early so we've to exit the workforce early so we've done other shows on this done other shows on this done other shows on this but man oh man has been tough for but man oh man has been tough for but man oh man has been tough for everybody it's been a unique one i mean everybody it's been a unique one i mean everybody it's been a unique one i mean it is a year just like you hear the it is a year just like you hear the it is a year just like you hear the saying a virus is going to virus saying a virus is going to virus saying a virus is going to virus is going to . exactly because is going to . exactly because is going to . exactly because it is just one of those years that it's it is just one of those years that it's it is just one of those years that it's it's pretty wild and it feels like it it's pretty wild and it feels like it it's pretty wild and it feels like it escalated very quickly yeah if you look escalated very quickly yeah if you look escalated very quickly yeah if you look at just a chart of the s at just a chart of the s at just a chart of the s p this is from the beginning of p this is from the beginning of p this is from the beginning of all the way through october of all the way through october of all the way through october of you can see it's been a wild ride there you can see it's been a wild ride there you can see it's been a wild ride there were stay-at-home orders in the middle were stay-at-home orders in the middle were stay-at-home orders in the middle of the global pandemic of the global pandemic of the global pandemic there were huge job losses all across there were huge job losses all across there were huge job losses all across the market the market the market had fits and starts it's just been a had fits and starts it's just been a had fits and starts it's just been a really really interesting really really interesting really really interesting year so far so think about this if year so far so think about this if year so far so think about this if you're one of these people that you're one of these people that you're one of these people that jumped out of the workforce when you're jumped out of the workforce when you're jumped out of the workforce when you're years of age years of age years of age a year like this happens and you're like a year like this happens and you're like a year like this happens and you're like holy cow you know your dynamic spending holy cow you know your dynamic spending holy cow you know your dynamic spending plan plan plan really gets a get a workout because you really gets a get a workout because you really gets a get a workout because you know if you come into the year know if you come into the year know if you come into the year thinking you're gonna pull out five thinking you're gonna pull out five thinking you're gonna pull out five percent of your of your percent of your of your percent of your of your your savings and then you hit up march your savings and then you hit up march your savings and then you hit up march yeah where you're at yeah where you're at yeah where you're at asset holdings because we realize a lot asset holdings because we realize a lot asset holdings because we realize a lot of fire people who go in the chat rooms of fire people who go in the chat rooms of fire people who go in the chat rooms do the research do the research do the research you're likely in a pretty aggressive you're likely in a pretty aggressive you're likely in a pretty aggressive portfolio i'm talking about portfolio i'm talking about portfolio i'm talking about or greater of equities so when you or greater of equities so when you or greater of equities so when you hit hit hit a market like march it probably was a market like march it probably was a market like march it probably was reasonable to think you might have lost reasonable to think you might have lost reasonable to think you might have lost over of your assets yeah and if you over of your assets yeah and if you over of your assets yeah and if you are someone who has sort of that dynamic are someone who has sort of that dynamic are someone who has sort of that dynamic spending plan where essentially you spending plan where essentially you spending plan where essentially you calculate your monthly expenditures calculate your monthly expenditures calculate your monthly expenditures based on your portfolio value when we based on your portfolio value when we based on your portfolio value when we see see see these wild undulations what's available these wild undulations what's available these wild undulations what's available to pay for your expenses may be a lot to pay for your expenses may be a lot to pay for your expenses may be a lot less than what your actual expenses were less than what your actual expenses were less than what your actual expenses were so that's so that's so that's problematic no doubt and i think here's problematic no doubt and i think here's problematic no doubt and i think here's here's a big thing to take into account here's a big thing to take into account here's a big thing to take into account we know the typical retirement is we know the typical retirement is we know the typical retirement is years years years sure yep i mean and you hear about i sure yep i mean and you hear about i sure yep i mean and you hear about i mean you don't have to look very far mean you don't have to look very far mean you don't have to look very far to see that the withdrawal rate the safe to see that the withdrawal rate the safe to see that the withdrawal rate the safe withdrawal rate that people talk about withdrawal rate that people talk about withdrawal rate that people talk about considering sequence of return risk and considering sequence of return risk and considering sequence of return risk and other things is four percent other things is four percent other things is four percent and that is based off of years and and that is based off of years and and that is based off of years and here's the thing when you have a -year here's the thing when you have a -year here's the thing when you have a -year retirement retirement retirement you can handle a few bumps and bruises you can handle a few bumps and bruises you can handle a few bumps and bruises and even market volatility absolutely and even market volatility absolutely and even market volatility absolutely but man does it look different when it's but man does it look different when it's but man does it look different when it's a -year a -year a -year plus retirement i think that's so plus retirement i think that's so plus retirement i think that's so interesting on a -year time frame interesting on a -year time frame interesting on a -year time frame bumps and bruises are bumps and bruises are bumps and bruises are just that on a -year time horizon a just that on a -year time horizon a just that on a -year time horizon a bump or a bruise could mean like bump or a bruise could mean like bump or a bruise could mean like having to cut off a limb it can be that having to cut off a limb it can be that having to cut off a limb it can be that severe over that long of a time well severe over that long of a time well severe over that long of a time well it's not even just market gyrations it's not even just market gyrations it's not even just market gyrations because let's face it when you retire because let's face it when you retire because let's face it when you retire when you're plus when you're plus when you're plus you probably have already bought your you probably have already bought your you probably have already bought your final house you probably know what you final house you probably know what you final house you probably know what you want out of life you've had all your want out of life you've had all your want out of life you've had all your children children children you got them out of the nest most likely you got them out of the nest most likely you got them out of the nest most likely a lot of life has already occurred sure a lot of life has already occurred sure a lot of life has already occurred sure when you retire in your s s and even when you retire in your s s and even when you retire in your s s and even s s s there's a lot of life it's not just the there's a lot of life it's not just the there's a lot of life it's not just the volatility of the marketplace it's also volatility of the marketplace it's also volatility of the marketplace it's also the life that you have to that you're the life that you have to that you're the life that you have to that you're building building building for yourself as you're making it through for yourself as you're making it through for yourself as you're making it through the journey there was actually someone the journey there was actually someone the journey there was actually someone out there in the financial world who out there in the financial world who out there in the financial world who we're familiar with uh pretty popular we're familiar with uh pretty popular we're familiar with uh pretty popular out there in the fire movement out there in the fire movement out there in the fire movement and he had an article that came out i and he had an article that came out i and he had an article that came out i think it was in december think it was in december think it was in december of last year is that right and this is of last year is that right and this is of last year is that right and this is what it said it said as a year old what it said it said as a year old what it said it said as a year old millionaire millionaire millionaire i tried to retire early at i tried to retire early at i tried to retire early at but failed here's what went wrong so i but failed here's what went wrong so i but failed here's what went wrong so i think i think this is pretty i love it think i think this is pretty i love it think i think this is pretty i love it when people are self-reflective when people are self-reflective when people are self-reflective and kind of look at this is financial and kind of look at this is financial and kind of look at this is financial samurai a lot of you guys have if you're samurai a lot of you guys have if you're samurai a lot of you guys have if you're in the fire movement you've followed sam in the fire movement you've followed sam in the fire movement you've followed sam for years he writes good content um for years he writes good content um for years he writes good content um and you can see he's now it's so and you can see he's now it's so and you can see he's now it's so interesting because he's out there on interesting because he's out there on interesting because he's out there on the west coast the west coast the west coast and i think when he started out he had a and i think when he started out he had a and i think when he started out he had a portfolio of over three million dollars portfolio of over three million dollars portfolio of over three million dollars in assets and he and in assets and he and in assets and he and originally when he was years of age originally when he was years of age originally when he was years of age this seemed like it was going to be this seemed like it was going to be this seemed like it was going to be enough enough enough but sam has come out and been very but sam has come out and been very but sam has come out and been very transparent transparent transparent that he might have missed a few things that he might have missed a few things that he might have missed a few things when he actually left when he actually left when he actually left at to the point that he's now back in at to the point that he's now back in at to the point that he's now back in the workforce at the workforce at the workforce at what are those big learning experiences what are those big learning experiences what are those big learning experiences he has yeah so obviously you can go read he has yeah so obviously you can go read he has yeah so obviously you can go read the article but we kind of pulled out the article but we kind of pulled out the article but we kind of pulled out here are some of the things he said that here are some of the things he said that here are some of the things he said that really affected his fire plan number one really affected his fire plan number one really affected his fire plan number one he had a child he had a child he had a child i can't in my mind fathom thinking about i can't in my mind fathom thinking about i can't in my mind fathom thinking about being being being in retirement off the workforce in retirement off the workforce in retirement off the workforce completely relying on my portfolio completely relying on my portfolio completely relying on my portfolio before kids even entered in the equation before kids even entered in the equation before kids even entered in the equation because when you have a kid because when you have a kid because when you have a kid things just change financially and things just change financially and things just change financially and otherwise life is very different at otherwise life is very different at otherwise life is very different at least in my perspective least in my perspective least in my perspective post-child than it was pre-child it post-child than it was pre-child it post-child than it was pre-child it reminds me of the reminds me of the reminds me of the the famous mike tyson quote that the famous mike tyson quote that the famous mike tyson quote that everybody has a plan until they get everybody has a plan until they get everybody has a plan until they get punched in the middle punched in the middle punched in the middle that's right it's kind of the same way that's right it's kind of the same way that's right it's kind of the same way everybody has a plan until you have a everybody has a plan until you have a everybody has a plan until you have a kiddo yep kiddo yep kiddo yep and then you realize man these things and then you realize man these things and then you realize man these things cause a lot of chaos so just be prepared cause a lot of chaos so just be prepared cause a lot of chaos so just be prepared children change things the second thing children change things the second thing children change things the second thing that sam noted is that he underestimated that sam noted is that he underestimated that sam noted is that he underestimated how low interest rates would go how low interest rates would go how low interest rates would go yeah this is something that we as yeah this is something that we as yeah this is something that we as financial advisors have to be very very financial advisors have to be very very financial advisors have to be very very careful of because we tell clients right careful of because we tell clients right careful of because we tell clients right now they're thinking hey now they're thinking hey now they're thinking hey should i refinance or what's going to should i refinance or what's going to should i refinance or what's going to happen to my savings account or where happen to my savings account or where happen to my savings account or where should i put my cash and we say look we should i put my cash and we say look we should i put my cash and we say look we know that know that know that historically rates are really really low historically rates are really really low historically rates are really really low right now right now right now but no one has a crystal ball certainly but no one has a crystal ball certainly but no one has a crystal ball certainly sam did not have his sam did not have his sam did not have his crystal ball pre-retirement nor do we crystal ball pre-retirement nor do we crystal ball pre-retirement nor do we have ours now have ours now have ours now so the financial markets can do some so the financial markets can do some so the financial markets can do some things that we things that we things that we might not expect yeah and this is a big might not expect yeah and this is a big might not expect yeah and this is a big thing and i know why sam put this on thing and i know why sam put this on thing and i know why sam put this on there is because for retirees you're there is because for retirees you're there is because for retirees you're counting on yield this is how you're counting on yield this is how you're counting on yield this is how you're supposed to get supposed to get supposed to get safe returns is from you know having safe returns is from you know having safe returns is from you know having bonds and bonds and bonds and and your savings accounts generate some and your savings accounts generate some and your savings accounts generate some yield on the interest that they're yield on the interest that they're yield on the interest that they're paying you you paying you you paying you you don't have to take a lot of risk and you don't have to take a lot of risk and you don't have to take a lot of risk and you can build some income coming in every can build some income coming in every can build some income coming in every year year year the problem also here's the second bad the problem also here's the second bad the problem also here's the second bad side of this side of this side of this is when people cannot get yield out of is when people cannot get yield out of is when people cannot get yield out of their safe investments what do they do their safe investments what do they do their safe investments what do they do they tiptoe they tiptoe they tiptoe further out on the wrist spectrum further out on the wrist spectrum further out on the wrist spectrum absolutely and that absolutely and that absolutely and that you know that's great when you're you know that's great when you're you know that's great when you're getting returned it's very scary when getting returned it's very scary when getting returned it's very scary when you have the volatility of a down market you have the volatility of a down market you have the volatility of a down market i think covid uh brought a lot of that i think covid uh brought a lot of that i think covid uh brought a lot of that to life for folks because to life for folks because to life for folks because yeah i think you said it so beautifully yeah i think you said it so beautifully yeah i think you said it so beautifully they tiptoe no one ever plans oh i'm they tiptoe no one ever plans oh i'm they tiptoe no one ever plans oh i'm going to go further out of the risk going to go further out of the risk going to go further out of the risk spectrum further out spectrum further out spectrum further out but you have three four five years of but you have three four five years of but you have three four five years of really solid market performance and really solid market performance and really solid market performance and you're not rebalancing appropriately you're not rebalancing appropriately you're not rebalancing appropriately you might not even realize how much more you might not even realize how much more you might not even realize how much more aggressive your portfolio is aggressive your portfolio is aggressive your portfolio is than it should be so that's a huge thing than it should be so that's a huge thing than it should be so that's a huge thing you have to be aware of you have to be aware of you have to be aware of the third thing that sam noted was the third thing that sam noted was the third thing that sam noted was rising health insurance premiums rising health insurance premiums rising health insurance premiums he had sort of budgeted hey this is how he had sort of budgeted hey this is how he had sort of budgeted hey this is how much i think health care would cost in much i think health care would cost in much i think health care would cost in retirement retirement retirement and it changed yeah and that's and it changed yeah and that's and it changed yeah and that's definitely i mean this is something definitely i mean this is something definitely i mean this is something we've noticed look i'm going to tell you we've noticed look i'm going to tell you we've noticed look i'm going to tell you this is a true concern for anybody who's this is a true concern for anybody who's this is a true concern for anybody who's retiring early i'm talking about retiring early i'm talking about retiring early i'm talking about somebody's in their s somebody's in their s somebody's in their s even years of age because you do even years of age because you do even years of age because you do not qualify for medicare not qualify for medicare not qualify for medicare until you reach and that's what a lot until you reach and that's what a lot until you reach and that's what a lot of people i mean you can be a great of people i mean you can be a great of people i mean you can be a great saver a great accumulator of wealth saver a great accumulator of wealth saver a great accumulator of wealth but if you don't have your health but if you don't have your health but if you don't have your health insurance it gets a little scary now insurance it gets a little scary now insurance it gets a little scary now look look look we know when um the affordable care act we know when um the affordable care act we know when um the affordable care act was passed it actually seemed like it was passed it actually seemed like it was passed it actually seemed like it was going to be a lifeline was going to be a lifeline was going to be a lifeline for early retirees well the cost is for early retirees well the cost is for early retirees well the cost is expensive expensive expensive the exchanges like i know here in the exchanges like i know here in the exchanges like i know here in tennessee we ran into a lot of problems tennessee we ran into a lot of problems tennessee we ran into a lot of problems where just a lot of the insurance where just a lot of the insurance where just a lot of the insurance providers opted out of even providers opted out of even providers opted out of even offering coverage on the exchange in offering coverage on the exchange in offering coverage on the exchange in tennessee it hasn't been everything we tennessee it hasn't been everything we tennessee it hasn't been everything we had hoped had hoped had hoped but i do i have optimism i'm always a but i do i have optimism i'm always a but i do i have optimism i'm always a glass half full glass half full glass half full i'm hopeful that health insurance i'm hopeful that health insurance i'm hopeful that health insurance becomes something becomes something becomes something that you can get in the future without that you can get in the future without that you can get in the future without necessarily working for an employer necessarily working for an employer necessarily working for an employer now all three of these in my mind were now all three of these in my mind were now all three of these in my mind were sort of quantitative right they were you sort of quantitative right they were you sort of quantitative right they were you know you can there were dollars and know you can there were dollars and know you can there were dollars and cents cents cents this fourth reason sam said he had to this fourth reason sam said he had to this fourth reason sam said he had to unretire unretire unretire the bliss of early retirement didn't the bliss of early retirement didn't the bliss of early retirement didn't last as long as he thought last as long as he thought last as long as he thought it would we all have these visions it would we all have these visions it would we all have these visions especially we're in our s and s i'm especially we're in our s and s i'm especially we're in our s and s i'm thinking man thinking man thinking man i'm just so ready to not have to show up i'm just so ready to not have to show up i'm just so ready to not have to show up to work and not have to work up early to work and not have to work up early to work and not have to work up early and not have to deal with that boss and well a lot of times it's like the dog well a lot of times it's like the dog well a lot of times it's like the dog that chases the car once you that chases the car once you that chases the car once you catch the car you got to figure out all catch the car you got to figure out all catch the car you got to figure out all right what do i do with this now right what do i do with this now right what do i do with this now i think it's interesting now look i'm i think it's interesting now look i'm i think it's interesting now look i'm going to tell you guys i have a bias for going to tell you guys i have a bias for going to tell you guys i have a bias for you you you and you probably saw me looking over my and you probably saw me looking over my and you probably saw me looking over my shoulder we actually have a book over shoulder we actually have a book over shoulder we actually have a book over here called tap dancing to work here called tap dancing to work here called tap dancing to work it's about warren buffett you know and it's about warren buffett you know and it's about warren buffett you know and he he loves what he does for a living he he loves what he does for a living he he loves what he does for a living i am in that same camp as i know that i i am in that same camp as i know that i i am in that same camp as i know that i am doing what i was put on this earth to am doing what i was put on this earth to am doing what i was put on this earth to do sure do sure do sure so i do have a bias in that but i do so i do have a bias in that but i do so i do have a bias in that but i do think that a lot of us think that a lot of us think that a lot of us we've seen this in our happiness studies we've seen this in our happiness studies we've seen this in our happiness studies when we've done shows on what creates when we've done shows on what creates when we've done shows on what creates happiness happiness happiness and where's the intersection between and where's the intersection between and where's the intersection between your financial life and your happy life your financial life and your happy life your financial life and your happy life the purpose of your work meaning that if the purpose of your work meaning that if the purpose of your work meaning that if you are getting fulfillment if you feel you are getting fulfillment if you feel you are getting fulfillment if you feel like in your own small way you're making like in your own small way you're making like in your own small way you're making the world a better place by the world a better place by the world a better place by waking up and going to work it does give waking up and going to work it does give waking up and going to work it does give you that fulfilled purpose-filled life you that fulfilled purpose-filled life you that fulfilled purpose-filled life and it's one of those things that i and it's one of those things that i and it's one of those things that i think people underestimate so be careful think people underestimate so be careful think people underestimate so be careful and make sure even if you are part of and make sure even if you are part of and make sure even if you are part of the fire movement the fire movement the fire movement while you're working make sure it's work while you're working make sure it's work while you're working make sure it's work that you enjoy that you enjoy that you enjoy and don't don't mishear us there are a and don't don't mishear us there are a and don't don't mishear us there are a lot of folks who say i do want to check lot of folks who say i do want to check lot of folks who say i do want to check out of the workforce i want to travel out of the workforce i want to travel out of the workforce i want to travel the world and do all those things and the world and do all those things and the world and do all those things and that's great that's great that's great nothing wrong with that what we would nothing wrong with that what we would nothing wrong with that what we would encourage you to think about we tell encourage you to think about we tell encourage you to think about we tell retirees this all the time is retirees this all the time is retirees this all the time is don't just think about what you are don't just think about what you are don't just think about what you are retiring from retiring from retiring from know exactly what it is you are retiring know exactly what it is you are retiring know exactly what it is you are retiring to whether that be laying on the beach to whether that be laying on the beach to whether that be laying on the beach or volunteering or a second career or volunteering or a second career or volunteering or a second career that is especially true of fire movement that is especially true of fire movement that is especially true of fire movement folks because you have a lot longer to folks because you have a lot longer to folks because you have a lot longer to retire to someone retire to someone retire to someone than a traditional retiree i think than a traditional retiree i think than a traditional retiree i think that's a great point we have some that's a great point we have some that's a great point we have some clients that have clients that have clients that have actually fire participants retired in actually fire participants retired in actually fire participants retired in their s their s their s and the ones that have done it the best and the ones that have done it the best and the ones that have done it the best already kind of have already kind of have already kind of have the backup plan figured out i mean we the backup plan figured out i mean we the backup plan figured out i mean we have if you ever come to an office tour have if you ever come to an office tour have if you ever come to an office tour you're gonna see some crazy pictures i you're gonna see some crazy pictures i you're gonna see some crazy pictures i mean we have um mean we have um mean we have um we have a client who is my age but he we have a client who is my age but he we have a client who is my age but he makes me feel bad about myself when i makes me feel bad about myself when i makes me feel bad about myself when i look at his pictures because he's he's look at his pictures because he's he's look at his pictures because he's he's actually actually actually lifeguarding playing dev david lifeguarding playing dev david lifeguarding playing dev david hasselhoff exactly right hasselhoff exactly right hasselhoff exactly right um is his you know backup very um is his you know backup very um is his you know backup very successful executive career and now he's successful executive career and now he's successful executive career and now he's a lifeguard a lifeguard a lifeguard good for him doing that so we thought good for him doing that so we thought good for him doing that so we thought these were for uh poignant points that these were for uh poignant points that these were for uh poignant points that sam put sam put sam put in his article but we thought you know in his article but we thought you know in his article but we thought you know just from our experience there are some just from our experience there are some just from our experience there are some other honorable mentions worth noting other honorable mentions worth noting other honorable mentions worth noting uh the first one you know sam has said uh the first one you know sam has said uh the first one you know sam has said hey i had a kid and it changed things hey i had a kid and it changed things hey i had a kid and it changed things i'd argue for a lot of retirees it's not i'd argue for a lot of retirees it's not i'd argue for a lot of retirees it's not just the front end of having a kid just the front end of having a kid just the front end of having a kid it's the entire time a kid is living in it's the entire time a kid is living in it's the entire time a kid is living in your house because we have your house because we have your house because we have cars and colleges and after-school cars and colleges and after-school cars and colleges and after-school activities and all the things activities and all the things activities and all the things if you're trying to check out early if you're trying to check out early if you're trying to check out early there is some wild variability there is some wild variability there is some wild variability in what your kids have going on until in what your kids have going on until in what your kids have going on until they're truly out of the nest they're truly out of the nest they're truly out of the nest when i read this i was like sam you when i read this i was like sam you when i read this i was like sam you haven't seen nothing yet because haven't seen nothing yet because haven't seen nothing yet because he was complaining about the two he was complaining about the two he was complaining about the two thousand dollar a month daycare thousand dollar a month daycare thousand dollar a month daycare and preschool type expenses it's like oh and preschool type expenses it's like oh and preschool type expenses it's like oh just wait sam just wait sam just wait sam it gets even more um from there so it gets even more um from there so it gets even more um from there so kiddos are definitely something you got kiddos are definitely something you got kiddos are definitely something you got to take into account to take into account to take into account the next one i thought that was the next one i thought that was the next one i thought that was interesting is housing now this is interesting is housing now this is interesting is housing now this is something uh i think back to year old something uh i think back to year old something uh i think back to year old bohansen bohansen bohansen if year old bohansen was going to if year old bohansen was going to if year old bohansen was going to name early retirement and what that name early retirement and what that name early retirement and what that would look like would look like would look like it would have looked very different than it would have looked very different than it would have looked very different than what in his mid-s bohansen what in his mid-s bohansen what in his mid-s bohansen actually knows it would need because actually knows it would need because actually knows it would need because housing was different what made sense housing was different what made sense housing was different what made sense for me and my wife for me and my wife for me and my wife was like a sleeper sofa and a kitchen was like a sleeper sofa and a kitchen was like a sleeper sofa and a kitchen and a bathroom and a bathroom and a bathroom what makes sense now for our family four what makes sense now for our family four what makes sense now for our family four is very different than that so you have is very different than that so you have is very different than that so you have to recognize to recognize to recognize as life changes so too do your as life changes so too do your as life changes so too do your preferences on what you can accept for preferences on what you can accept for preferences on what you can accept for housing and that sort of thing yeah i housing and that sort of thing yeah i housing and that sort of thing yeah i think it's a it's a think it's a it's a think it's a it's a very notable difference if you're very notable difference if you're very notable difference if you're retiring for plus years retiring for plus years retiring for plus years there's gonna be a lot of life that will there's gonna be a lot of life that will there's gonna be a lot of life that will evolve it's not just the kiddos evolve it's not just the kiddos evolve it's not just the kiddos it's just that you're tasting your it's just that you're tasting your it's just that you're tasting your desires and what actually brings you desires and what actually brings you desires and what actually brings you fulfillment might evolve as well that's fulfillment might evolve as well that's fulfillment might evolve as well that's right and the other honorable mention right and the other honorable mention right and the other honorable mention that i thought was so that i thought was so that i thought was so interesting i wonder if we were to interesting i wonder if we were to interesting i wonder if we were to interview sam interview sam interview sam and say hey sam when you were doing your and say hey sam when you were doing your and say hey sam when you were doing your early retirement planning early retirement planning early retirement planning did you account for the fact that in the did you account for the fact that in the did you account for the fact that in the year there was going to be a global year there was going to be a global year there was going to be a global viral outbreak that was going to have a viral outbreak that was going to have a viral outbreak that was going to have a huge pandemic and the world economy was huge pandemic and the world economy was huge pandemic and the world economy was going to shut down and people weren't going to shut down and people weren't going to shut down and people weren't going to be able to leave their homes going to be able to leave their homes going to be able to leave their homes and people and people and people were going to lose their jobs was that were going to lose their jobs was that were going to lose their jobs was that built into your plan built into your plan built into your plan and i just have a feeling he's going to and i just have a feeling he's going to and i just have a feeling he's going to say no well say no well say no well nobody has i mean here's the thing over nobody has i mean here's the thing over nobody has i mean here's the thing over the next decade the next decade the next decade there will be two three maybe even four there will be two three maybe even four there will be two three maybe even four events events events nobody will foresee exactly i mean you nobody will foresee exactly i mean you nobody will foresee exactly i mean you can make a plan can make a plan can make a plan but plans are never going to be a but plans are never going to be a but plans are never going to be a hundred percent because you just don't hundred percent because you just don't hundred percent because you just don't know all the variables you don't know know all the variables you don't know know all the variables you don't know what inflation is going to be you don't what inflation is going to be you don't what inflation is going to be you don't know what market returns are going to be know what market returns are going to be know what market returns are going to be so you have to just kind of craft a plan so you have to just kind of craft a plan so you have to just kind of craft a plan and this is actually a great setup as we and this is actually a great setup as we and this is actually a great setup as we get into get into get into case studies is you try to take into all case studies is you try to take into all case studies is you try to take into all the data you the data you the data you do know that even accounts for all the do know that even accounts for all the do know that even accounts for all the unforeseen circumstances of the past unforeseen circumstances of the past unforeseen circumstances of the past so we can try to figure out what gives so we can try to figure out what gives so we can try to figure out what gives me the highest probability me the highest probability me the highest probability of making it through no matter what this of making it through no matter what this of making it through no matter what this crazy world throws at me that's right crazy world throws at me that's right crazy world throws at me that's right so that leads to let's kind of talk so that leads to let's kind of talk so that leads to let's kind of talk about about about case studies probability of success case studies probability of success case studies probability of success matters when we're talking about matters when we're talking about matters when we're talking about financial independence when you're financial independence when you're financial independence when you're retiring early retiring early retiring early with fire um and here's i was surprised with fire um and here's i was surprised with fire um and here's i was surprised as we started doing prep on with the as we started doing prep on with the as we started doing prep on with the case studies case studies case studies i have never seen retirement i have never seen retirement i have never seen retirement scenarios that had a zero percent chance scenarios that had a zero percent chance scenarios that had a zero percent chance of success i mean all of my retirement of success i mean all of my retirement of success i mean all of my retirement meetings i've been in meetings i've been in meetings i've been in in my i mean i'm in my third decade of in my i mean i'm in my third decade of in my i mean i'm in my third decade of doing financial planning doing financial planning doing financial planning i've never seen zero potential of i've never seen zero potential of i've never seen zero potential of success yeah so when we started running success yeah so when we started running success yeah so when we started running some of these hey i want to exit at some of these hey i want to exit at some of these hey i want to exit at and i need this level of living expense and i need this level of living expense and i need this level of living expense it wasn't like oh well you need the best it wasn't like oh well you need the best it wasn't like oh well you need the best market ever to make this work it was no market ever to make this work it was no market ever to make this work it was no there is a there is a there is a zero percent chance this money will last zero percent chance this money will last zero percent chance this money will last you so the end of your life you so the end of your life you so the end of your life uh if you're entertaining a scenario uh if you're entertaining a scenario uh if you're entertaining a scenario that even has that even has that even has that sort of opportunity it should cause that sort of opportunity it should cause that sort of opportunity it should cause you to pause and think for a second you to pause and think for a second you to pause and think for a second man what what am i actually looking at man what what am i actually looking at man what what am i actually looking at here yeah so that's why it's important here yeah so that's why it's important here yeah so that's why it's important we do this for all of our clients you we do this for all of our clients you we do this for all of our clients you gotta stress test the plan you gotta gotta stress test the plan you gotta gotta stress test the plan you gotta what do what are you not accounting for what do what are you not accounting for what do what are you not accounting for and how do i get it in there and how do i get it in there and how do i get it in there and then also here's something i want to and then also here's something i want to and then also here's something i want to warn you guys because i i have warn you guys because i i have warn you guys because i i have enough clients and i've looked in enough enough clients and i've looked in enough enough clients and i've looked in enough forums forums forums that i worry a little bit about fire that i worry a little bit about fire that i worry a little bit about fire participants of fire and the fact that participants of fire and the fact that participants of fire and the fact that you get you in your own little echo you get you in your own little echo you get you in your own little echo chamber okay chamber okay chamber okay meaning that you go out there and you go meaning that you go out there and you go meaning that you go out there and you go to this forum you go to this blog to this forum you go to this blog to this forum you go to this blog they get you all hyped up and excited they get you all hyped up and excited they get you all hyped up and excited about the movement that you joined about the movement that you joined about the movement that you joined that it can kind of be nudging you in a that it can kind of be nudging you in a that it can kind of be nudging you in a direction direction direction and creating some blind spots of things and creating some blind spots of things and creating some blind spots of things you might not have even accounted for you might not have even accounted for you might not have even accounted for yeah i think one of the things you said yeah i think one of the things you said yeah i think one of the things you said is as you think about early retirement is as you think about early retirement is as you think about early retirement exiting the workforce a lot of folks exiting the workforce a lot of folks exiting the workforce a lot of folks don't realize don't realize don't realize that depending on your vocation your that depending on your vocation your that depending on your vocation your career that path career that path career that path may just be one way yeah so it's um so may just be one way yeah so it's um so may just be one way yeah so it's um so here's what i also this is the last here's what i also this is the last here's what i also this is the last thing thing thing and this is take this because we're all and this is take this because we're all and this is take this because we're all shaped shaped shaped by the life we grew up in i grew up a by the life we grew up in i grew up a by the life we grew up in i grew up a lot of anybody's been watching a show lot of anybody's been watching a show lot of anybody's been watching a show long enough you know that my father long enough you know that my father long enough you know that my father lost his job in his early s i think he lost his job in his early s i think he lost his job in his early s i think he was years of age he had a was years of age he had a was years of age he had a middle level management job they got out middle level management job they got out middle level management job they got out of that market of that market of that market and basically just did an apple cart and basically just did an apple cart and basically just did an apple cart turnover of all their employees turnover of all their employees turnover of all their employees it is hard as a mid year old to go it is hard as a mid year old to go it is hard as a mid year old to go out there and get back into the out there and get back into the out there and get back into the workforce so to for you to voluntarily workforce so to for you to voluntarily workforce so to for you to voluntarily leave choose that you're going to leave leave choose that you're going to leave leave choose that you're going to leave your job to retire your job to retire your job to retire make sure you measure twice cut once make sure you measure twice cut once make sure you measure twice cut once because here's what i'm worried about because here's what i'm worried about because here's what i'm worried about you're leaving the party if we think you're leaving the party if we think you're leaving the party if we think about the visualization about the visualization about the visualization of your cycle of earning potential over of your cycle of earning potential over of your cycle of earning potential over your life expectancy and the years that your life expectancy and the years that your life expectancy and the years that you're in the workforce you're in the workforce you're in the workforce if if we're thinking about this in terms if if we're thinking about this in terms if if we're thinking about this in terms of an analogy of a good of an analogy of a good of an analogy of a good party you've essentially gotten to the party you've essentially gotten to the party you've essentially gotten to the party it took a few years for party it took a few years for party it took a few years for you know the good songs to keep the good you know the good songs to keep the good you know the good songs to keep the good the cool kids to show up the cool kids to show up the cool kids to show up the dj to start playing your favorite the dj to start playing your favorite the dj to start playing your favorite songs and you know it's songs and you know it's songs and you know it's starting to heat up a little bit right starting to heat up a little bit right starting to heat up a little bit right as it heats up as it heats up as it heats up right as the party is starting to kind right as the party is starting to kind right as the party is starting to kind of gel of gel of gel like well guys i'm out this is great like well guys i'm out this is great like well guys i'm out this is great but i think i've had enough i'm out of but i think i've had enough i'm out of but i think i've had enough i'm out of here and you leave and what i mean by here and you leave and what i mean by here and you leave and what i mean by that is that that is that that is that this is the the years of your working this is the the years of your working this is the the years of your working career that you make career that you make career that you make peak maximum money you build the size of peak maximum money you build the size of peak maximum money you build the size of your shovel your shovel your shovel for building assets you're actually for building assets you're actually for building assets you're actually tapping out so if you retire at tapping out so if you retire at tapping out so if you retire at you haven't even climbed the mount all you haven't even climbed the mount all you haven't even climbed the mount all the way if you're leaving at the way if you're leaving at the way if you're leaving at still not there you know it's because still not there you know it's because still not there you know it's because you a lot of peak earning you a lot of peak earning you a lot of peak earning years are to years of age what i years are to years of age what i years are to years of age what i think is beautiful about this think is beautiful about this think is beautiful about this illustration that daniel put together is illustration that daniel put together is illustration that daniel put together is this shows the this shows the this shows the median income in this country and then median income in this country and then median income in this country and then it shows kind of where the if you're in it shows kind of where the if you're in it shows kind of where the if you're in the lower income brackets if you're in the lower income brackets if you're in the lower income brackets if you're in the the the of income or if you're in the percent of income or if you're in the percent of income or if you're in the percent of income you're in a higher income of income you're in a higher income of income you're in a higher income bracket bracket bracket which ages it kind of peaks i thought it which ages it kind of peaks i thought it which ages it kind of peaks i thought it was interesting was interesting was interesting all of them tend to peak in that to all of them tend to peak in that to all of them tend to peak in that to year range if you're someone who's year range if you're someone who's year range if you're someone who's exiting early exiting early exiting early there is a lot of opportunity cost there is a lot of opportunity cost there is a lot of opportunity cost that's going to be left on the table that's going to be left on the table that's going to be left on the table that's one of the things we'll kind of that's one of the things we'll kind of that's one of the things we'll kind of talk through talk through talk through in our case studies so it is worth in our case studies so it is worth in our case studies so it is worth repeating repeating repeating measure twice cut once because it might measure twice cut once because it might measure twice cut once because it might be harder it might be a be harder it might be a be harder it might be a one-way street so just make sure if you one-way street so just make sure if you one-way street so just make sure if you are leaving the workforce are leaving the workforce are leaving the workforce you don't assume it's going to be so you don't assume it's going to be so you don't assume it's going to be so easy to come right back into it easy to come right back into it easy to come right back into it so what we're going to do is we're so what we're going to do is we're so what we're going to do is we're actually going to do a case study and actually going to do a case study and actually going to do a case study and we're going to look at a couple we're going to look at a couple we're going to look at a couple who's thinking about financial who's thinking about financial who's thinking about financial independence retire early they want to independence retire early they want to independence retire early they want to kind of go kind of go kind of go on this path so we want to walk you on this path so we want to walk you on this path so we want to walk you through the mindset that this couple through the mindset that this couple through the mindset that this couple might have might have might have and then some of the feedback that we as and then some of the feedback that we as and then some of the feedback that we as financial advisors financial advisors financial advisors would provide to them as we work through would provide to them as we work through would provide to them as we work through that so that so that so yeah yeah there we go i'm getting my yeah yeah there we go i'm getting my yeah yeah there we go i'm getting my hype getting lost my hype man position hype getting lost my hype man position hype getting lost my hype man position ready here so the very first thing that ready here so the very first thing that ready here so the very first thing that we need to talk through was sort of the we need to talk through was sort of the we need to talk through was sort of the facts facts facts and assumptions associated with this and assumptions associated with this and assumptions associated with this couple couple couple so what we're going to do is we're going so what we're going to do is we're going so what we're going to do is we're going to assume that we have john and jane to assume that we have john and jane to assume that we have john and jane fire now fire now fire now i should tell you this is actual i should tell you this is actual i should tell you this is actual software that we use software that we use software that we use for our financial planning clients we for our financial planning clients we for our financial planning clients we actually build this up to be actually build this up to be actually build this up to be completely custom to their unique completely custom to their unique completely custom to their unique situation so we had some of our advisory situation so we had some of our advisory situation so we had some of our advisory personnel here personnel here personnel here build a pseudo case for us and now this build a pseudo case for us and now this build a pseudo case for us and now this is john and jane fire is john and jane fire is john and jane fire and this is what we know they're both and this is what we know they're both and this is what we know they're both years of age years of age years of age and under a normal circumstance they and under a normal circumstance they and under a normal circumstance they want to retire at age so that is like want to retire at age so that is like want to retire at age so that is like your traditional retirement your traditional retirement your traditional retirement and we're going to assume a life and we're going to assume a life and we're going to assume a life expectancy for both of them of age expectancy for both of them of age expectancy for both of them of age they're same age they're going to they're same age they're going to they're same age they're going to expire at the same time expire at the same time expire at the same time well we said we know well we said we know well we said we know that if they both make fifty thousand that if they both make fifty thousand that if they both make fifty thousand dollars a year we can estimate that dollars a year we can estimate that dollars a year we can estimate that their present living expenses are about their present living expenses are about their present living expenses are about sixty thousand dollars and we wanted to sixty thousand dollars and we wanted to sixty thousand dollars and we wanted to assume from an income standpoint assume from an income standpoint assume from an income standpoint that their income just kind of grows that their income just kind of grows that their income just kind of grows with inflation and we have inflation with inflation and we have inflation with inflation and we have inflation built into this planet about two and a built into this planet about two and a built into this planet about two and a half percent and we also want to assume half percent and we also want to assume half percent and we also want to assume that their living expenses that their living expenses that their living expenses kind of grow with inflation so what that kind of grow with inflation so what that kind of grow with inflation so what that means is in their working years means is in their working years means is in their working years they're going to spend about a they're going to spend about a they're going to spend about a year in today's dollars and when they year in today's dollars and when they year in today's dollars and when they retire retire retire we'd like to replace about we'd like to replace about we'd like to replace about of today's income so we're gonna have of today's income so we're gonna have of today's income so we're gonna have this flat lifestyle this flat lifestyle this flat lifestyle all through retirement whether they all through retirement whether they all through retirement whether they retire or retire or retire or that's the level they'd like they'd like that's the level they'd like they'd like that's the level they'd like they'd like to live at make sense to live at make sense to live at make sense exactly this is perfect so we know that exactly this is perfect so we know that exactly this is perfect so we know that from an income standpoint they're both from an income standpoint they're both from an income standpoint they're both gonna start at fifty thousand dollars gonna start at fifty thousand dollars gonna start at fifty thousand dollars per year no bonuses no pay raises just per year no bonuses no pay raises just per year no bonuses no pay raises just inflation adjustments through time inflation adjustments through time inflation adjustments through time and if we have so them both paying into and if we have so them both paying into and if we have so them both paying into the social security system the social security system the social security system we know that in today's dollars when we know that in today's dollars when we know that in today's dollars when they both reach full retirement age at they both reach full retirement age at they both reach full retirement age at age age age they'll both have a social security they'll both have a social security they'll both have a social security benefit of about benefit of about benefit of about now that will adjust if they exit the now that will adjust if they exit the now that will adjust if they exit the workforce workforce workforce early they will have paid less into the early they will have paid less into the early they will have paid less into the system so that means that their social system so that means that their social system so that means that their social security benefit will security benefit will security benefit will decrease from a savings standpoint decrease from a savings standpoint decrease from a savings standpoint we know that john and jane are huge we know that john and jane are huge we know that john and jane are huge money guy fans they listen to every show money guy fans they listen to every show money guy fans they listen to every show and they know that we always encourage and they know that we always encourage and they know that we always encourage that they should be saving that they should be saving that they should be saving of their gross income well because of their gross income well because of their gross income well because after deductions and everything else after deductions and everything else after deductions and everything else they fall into a lower tax bracket they fall into a lower tax bracket they fall into a lower tax bracket they're both going to take advantage of they're both going to take advantage of they're both going to take advantage of their roth portions of their k their roth portions of their k their roth portions of their k so they're each going to put of their so they're each going to put of their so they're each going to put of their salaries salaries salaries into the roth portions of their k into the roth portions of their k into the roth portions of their k their employers are going to do a their employers are going to do a their employers are going to do a match into the pre-tax portions of their match into the pre-tax portions of their match into the pre-tax portions of their ks get that free money ks get that free money ks get that free money and then we're gonna assume that both of and then we're gonna assume that both of and then we're gonna assume that both of them max out their roth iras them max out their roth iras them max out their roth iras at six thousand dollars this year index at six thousand dollars this year index at six thousand dollars this year index for inflation for inflation for inflation through their retirement so they're just through their retirement so they're just through their retirement so they're just going to stick to going to stick to going to stick to savings they're basically doing savings they're basically doing savings they're basically doing all the things that they hear us a all the things that they hear us a all the things that they hear us a spouse on the money guy show spouse on the money guy show spouse on the money guy show for how to live a financially for how to live a financially for how to live a financially responsible life makes sense responsible life makes sense responsible life makes sense we're going to assume that they are we're going to assume that they are we're going to assume that they are somewhat conservative investors we're somewhat conservative investors we're somewhat conservative investors we're going to assume that they can make about going to assume that they can make about going to assume that they can make about six and a half percent six and a half percent six and a half percent on average over the life of their on average over the life of their on average over the life of their investing portfolio investing portfolio investing portfolio perhaps that's low but remember whenever perhaps that's low but remember whenever perhaps that's low but remember whenever it comes to financial planning whenever it comes to financial planning whenever it comes to financial planning whenever it comes to like building long-term it comes to like building long-term it comes to like building long-term iterations iterations iterations you always want to err on the you always want to err on the you always want to err on the conservative side because you would conservative side because you would conservative side because you would rather rather rather things turn out better than you thought things turn out better than you thought things turn out better than you thought instead of be aggressive instead of be aggressive instead of be aggressive and have to eat like cat food hamburger and have to eat like cat food hamburger and have to eat like cat food hamburger patties for dinner every night well i patties for dinner every night well i patties for dinner every night well i also think it's worth also think it's worth also think it's worth dropping in we're gonna put a very dropping in we're gonna put a very dropping in we're gonna put a very conservative six percent growth conservative six percent growth conservative six percent growth on the linear growth but when we run the on the linear growth but when we run the on the linear growth but when we run the monte carlo simulations monte carlo simulations monte carlo simulations we're including every type of outcome we're including every type of outcome we're including every type of outcome that possibly could that possibly could that possibly could with a basic it's a little more with a basic it's a little more with a basic it's a little more aggressive what is it like a i aggressive what is it like a i aggressive what is it like a i think it's a think it's a think it's a to type portfolio so don't to type portfolio so don't to type portfolio so don't let the six percent let the six percent let the six percent let you feel you when you see we get to let you feel you when you see we get to let you feel you when you see we get to the stress test this thing's got all the stress test this thing's got all the stress test this thing's got all options built into it options built into it options built into it so if john and jane were sitting down so if john and jane were sitting down so if john and jane were sitting down with us and we want to show them just a with us and we want to show them just a with us and we want to show them just a straight line picture straight line picture straight line picture of their financial life this is kind of of their financial life this is kind of of their financial life this is kind of what it would look like what it would look like what it would look like now they're starting out at zero and now they're starting out at zero and now they're starting out at zero and they will begin they will begin they will begin by the way if you're out there listening by the way if you're out there listening by the way if you're out there listening in i heart radio in i heart radio in i heart radio itunes stitcher spotify itunes stitcher spotify itunes stitcher spotify this would be a great time to just pause this would be a great time to just pause this would be a great time to just pause and go to youtube because and go to youtube because and go to youtube because we're gonna have a lot of visuals on we're gonna have a lot of visuals on we're gonna have a lot of visuals on this show as we walk you through the this show as we walk you through the this show as we walk you through the software software software but we'll do our best to kind of but we'll do our best to kind of but we'll do our best to kind of describe this so you get the idea so as describe this so you get the idea so as describe this so you get the idea so as john and jane are working they're gonna john and jane are working they're gonna john and jane are working they're gonna begin building their portfolio begin building their portfolio begin building their portfolio all the way up until they get to age all the way up until they get to age all the way up until they get to age where they actually will have built a where they actually will have built a where they actually will have built a portfolio portfolio portfolio of just under . million dollars in of just under . million dollars in of just under . million dollars in today's dollars today's dollars today's dollars now remember they're only going to pull now remember they're only going to pull now remember they're only going to pull off about off about off about in living expenses well you can do the in living expenses well you can do the in living expenses well you can do the math and realize that math and realize that math and realize that of living expenses on a . million of living expenses on a . million of living expenses on a . million dollar portfolio dollar portfolio dollar portfolio means that they have a very low means that they have a very low means that they have a very low withdrawal rate so what actually happens withdrawal rate so what actually happens withdrawal rate so what actually happens is is is in retirement their portfolio actually in retirement their portfolio actually in retirement their portfolio actually keeps growing keeps growing keeps growing so they when they leave this earth at so they when they leave this earth at so they when they leave this earth at the end of their plan if we just assume the end of their plan if we just assume the end of their plan if we just assume a a a simple straight line six and a half simple straight line six and a half simple straight line six and a half percent rate of return percent rate of return percent rate of return would leave this earth with about . would leave this earth with about . would leave this earth with about . million dollars left behind million dollars left behind million dollars left behind for john jr and jane for john jr and jane for john jr and jane jr the second i'll dig you out of this hole that you i'll dig you out of this hole that you i'll dig you out of this hole that you put yourself in is the fact that that is put yourself in is the fact that that is put yourself in is the fact that that is in present value so that's in present value so that's in present value so that's . million is the same as what . . million is the same as what . . million is the same as what . million dollars would feel like today million dollars would feel like today million dollars would feel like today we have actually brought this back for we have actually brought this back for we have actually brought this back for inflation so for all my inflation hounds inflation so for all my inflation hounds inflation so for all my inflation hounds out there out there out there who are always picking on us is that who are always picking on us is that who are always picking on us is that don't talk about a million because don't talk about a million because don't talk about a million because years from now a million won't feel the years from now a million won't feel the years from now a million won't feel the same same same we've actually we could show you that we've actually we could show you that we've actually we could show you that this is could be inflated up but we've this is could be inflated up but we've this is could be inflated up but we've actually inflated it back down to actually inflated it back down to actually inflated it back down to present value present value present value now we know that the market doesn't now we know that the market doesn't now we know that the market doesn't deliver us nice even six and a half deliver us nice even six and a half deliver us nice even six and a half percent percent percent percent chunks of return every year so percent chunks of return every year so percent chunks of return every year so we run this through what's called a we run this through what's called a we run this through what's called a monte carlo simulation where we have a monte carlo simulation where we have a monte carlo simulation where we have a thousand different iterations thousand different iterations thousand different iterations of different market environments so it of different market environments so it of different market environments so it might have followed by might have followed by might have followed by followed by followed by . followed by followed by . followed by followed by . and what this system calculates is out and what this system calculates is out and what this system calculates is out of those iterations of those iterations of those iterations what percentage of them got all the way what percentage of them got all the way what percentage of them got all the way to the end of the plan without running to the end of the plan without running to the end of the plan without running out of money out of money out of money well you can see under base case well you can see under base case well you can see under base case scenario if john and jane just do what scenario if john and jane just do what scenario if john and jane just do what the money guys tell them to do the money guys tell them to do the money guys tell them to do and save of their gross income all and save of their gross income all and save of their gross income all the way until retirement the way until retirement the way until retirement they have a probability of success they have a probability of success they have a probability of success of a retirement at age . so of a retirement at age . so of a retirement at age . so here's a moment of celebration before here's a moment of celebration before here's a moment of celebration before you start breaking it you start breaking it you start breaking it is that if you just come to us as a is that if you just come to us as a is that if you just come to us as a year old year old year old you don't even have to make a great you don't even have to make a great you don't even have to make a great income you have to make a income you have to make a income you have to make a a year income um if you get it find a a year income um if you get it find a a year income um if you get it find a spouse that also makes around the same spouse that also makes around the same spouse that also makes around the same amount of money we're talking about amount of money we're talking about amount of money we're talking about as a household and you do exactly as a household and you do exactly as a household and you do exactly what we tell you to do meaning that you what we tell you to do meaning that you what we tell you to do meaning that you defer gratification take a little bit of defer gratification take a little bit of defer gratification take a little bit of today for that great big beautiful today for that great big beautiful today for that great big beautiful tomorrow tomorrow tomorrow - by the time you get to - by the time you get to - by the time you get to maybe even a little before that you maybe even a little before that you maybe even a little before that you pretty much have a pretty much have a pretty much have a chance of success that's a celebration chance of success that's a celebration chance of success that's a celebration moment absolutely now i'm going to let moment absolutely now i'm going to let moment absolutely now i'm going to let you break it with fire you break it with fire you break it with fire but that's still pretty cool for the but that's still pretty cool for the but that's still pretty cool for the typical person who wants to go on the typical person who wants to go on the typical person who wants to go on the journey love what they do and they're journey love what they do and they're journey love what they do and they're working all the way to to . working all the way to to . working all the way to to . so john and jane then say to us guys so john and jane then say to us guys so john and jane then say to us guys this looks awesome thank you thank you this looks awesome thank you thank you this looks awesome thank you thank you thank you thank you thank you thank you thank you thank you uh but you know what we don't care about uh but you know what we don't care about uh but you know what we don't care about leaving this earth with five million leaving this earth with five million leaving this earth with five million dollars left behind for our kids and we dollars left behind for our kids and we dollars left behind for our kids and we really want to be part of this fire really want to be part of this fire really want to be part of this fire movement movement movement so what happens if we retire at age so what happens if we retire at age so what happens if we retire at age keep all of our other assumptions the keep all of our other assumptions the keep all of our other assumptions the same just instead of working and saving same just instead of working and saving same just instead of working and saving until until until we just cut out of the workforce at age we just cut out of the workforce at age we just cut out of the workforce at age . . . that's years earlier it's only that's years earlier it's only that's years earlier it's only years years so years years so years years so not only does it take out not only does it take out not only does it take out tons of income and tons of savings but tons of income and tons of savings but tons of income and tons of savings but it also requires it also requires it also requires them to count in the portfolio for tons them to count in the portfolio for tons them to count in the portfolio for tons of income to bridge that gap and what of income to bridge that gap and what of income to bridge that gap and what you can see you can see you can see is in this very simple illustration they is in this very simple illustration they is in this very simple illustration they run out of money by run out of money by run out of money by not exactly uh fantastic remarkable not exactly uh fantastic remarkable not exactly uh fantastic remarkable retirement so obviously doesn't work retirement so obviously doesn't work retirement so obviously doesn't work if we operate under those same if we operate under those same if we operate under those same assumptions assumptions assumptions so then they say okay well we're so then they say okay well we're so then they say okay well we're reasonable right that we're reasonable reasonable right that we're reasonable reasonable right that we're reasonable what happens if we decide to work until what happens if we decide to work until what happens if we decide to work until age age age so we're going to do everything we're so we're going to do everything we're so we're going to do everything we're going to go to and then we're going going to go to and then we're going going to go to and then we're going to check out to check out to check out does the plan work well it gets a little does the plan work well it gets a little does the plan work well it gets a little bit better bit better bit better this time it takes us actually out to this time it takes us actually out to this time it takes us actually out to age age age but still it's not even in straight line but still it's not even in straight line but still it's not even in straight line math getting us to the end of the plan math getting us to the end of the plan math getting us to the end of the plan so then they say okay well what about so then they say okay well what about so then they say okay well what about if we just want to keep everything the if we just want to keep everything the if we just want to keep everything the same everything's static same everything's static same everything's static can we retire at age well what you can we retire at age well what you can we retire at age well what you can see is that actually changes the can see is that actually changes the can see is that actually changes the circumstance circumstance circumstance now when you look at the straight line now when you look at the straight line now when you look at the straight line illustration illustration illustration you can see that instead of leaving this you can see that instead of leaving this you can see that instead of leaving this earth with about . million dollars in earth with about . million dollars in earth with about . million dollars in today's terms today's terms today's terms they leave the earth of about . they leave the earth of about . they leave the earth of about . million so yeah that million so yeah that million so yeah that -year early retirement did cost them -year early retirement did cost them -year early retirement did cost them about million dollars but perhaps about million dollars but perhaps about million dollars but perhaps that's ok that's ok that's ok again we won't know for sure until we again we won't know for sure until we again we won't know for sure until we actually run this through our monte actually run this through our monte actually run this through our monte carlo simulation carlo simulation carlo simulation so we select the age retirement we so we select the age retirement we so we select the age retirement we let the system let the system let the system recalculate a probability of success and recalculate a probability of success and recalculate a probability of success and you can see that okay it's not but you can see that okay it's not but you can see that okay it's not but even retiring at even retiring at even retiring at they have a probability success they have a probability success they have a probability success assuming they make assuming they make assuming they make no behavioral change throughout the no behavioral change throughout the no behavioral change throughout the course of their retirement so think course of their retirement so think course of their retirement so think about this we have somebody starting at about this we have somebody starting at about this we have somebody starting at instead of working to which is instead of working to which is instead of working to which is years you're telling me years you're telling me years you're telling me years still gives them a years still gives them a years still gives them a chance of probability guys that's chance of probability guys that's chance of probability guys that's incredible think about that incredible think about that incredible think about that you give us years of saving - you give us years of saving - you give us years of saving - like we talk about like we talk about like we talk about chance of success i still would argue chance of success i still would argue chance of success i still would argue leaving the workforce at leaving the workforce at leaving the workforce at is still part of the financial is still part of the financial is still part of the financial independence retire early movement independence retire early movement independence retire early movement that's pretty powerful absolutely so that's pretty powerful absolutely so that's pretty powerful absolutely so okay so we have our base case room so okay so we have our base case room so okay so we have our base case room so now now now for john and jane we've cut off years for john and jane we've cut off years for john and jane we've cut off years we said okay if you just do this you can we said okay if you just do this you can we said okay if you just do this you can make it make it make it until age and then you can retire until age and then you can retire until age and then you can retire all right well but they say you know all right well but they say you know all right well but they say you know what i really we want to exit what i really we want to exit what i really we want to exit at . what would make that possible so at . what would make that possible so at . what would make that possible so we said okay well we said okay well we said okay well we've already shown that we can't live we've already shown that we can't live we've already shown that we can't live at your pre-retirement living expenses at your pre-retirement living expenses at your pre-retirement living expenses we can't live we can't live we can't live at a year so let's see if we at a year so let's see if we at a year so let's see if we retired at what retired at what retired at what level could we live at so we had level could we live at so we had level could we live at so we had full-time equivalent daniel kind of give full-time equivalent daniel kind of give full-time equivalent daniel kind of give us some ideas on us some ideas on us some ideas on all right let's think about base case all right let's think about base case all right let's think about base case and this as we said and this as we said and this as we said we know that the poverty line in this we know that the poverty line in this we know that the poverty line in this country exists right around country exists right around country exists right around of annual income so if you wanted to of annual income so if you wanted to of annual income so if you wanted to be someone in the fire movement that be someone in the fire movement that be someone in the fire movement that really subscribed to like minimalism and really subscribed to like minimalism and really subscribed to like minimalism and you're thinking about like really living you're thinking about like really living you're thinking about like really living on as little as possible is it possible on as little as possible is it possible on as little as possible is it possible to live to live to live at the poverty line about fifteen at the poverty line about fifteen at the poverty line about fifteen hundred dollars per month hundred dollars per month hundred dollars per month and retiring at age . so and retiring at age . so and retiring at age . so again we're going to retire at and again we're going to retire at and again we're going to retire at and we're going to live off of . we're going to live off of . we're going to live off of . all right well it gets us a little bit all right well it gets us a little bit all right well it gets us a little bit further than further than further than but even doing that only gets us out but even doing that only gets us out but even doing that only gets us out to age before we start running out of to age before we start running out of to age before we start running out of our resources our resources our resources so if all we're going to do is save so if all we're going to do is save so if all we're going to do is save of our income for that years or of our income for that years or of our income for that years or years years years of work and then try to live off of as of work and then try to live off of as of work and then try to live off of as little as possible little as possible little as possible doesn't work yeah and who wants to live doesn't work yeah and who wants to live doesn't work yeah and who wants to live at the poverty level so i think that you at the poverty level so i think that you at the poverty level so i think that you have to have to have to i mean we got to kick this up a little i mean we got to kick this up a little i mean we got to kick this up a little bit further so that somebody actually bit further so that somebody actually bit further so that somebody actually can can can enjoy the stage of life that they're in enjoy the stage of life that they're in enjoy the stage of life that they're in i completely agree but again i completely agree but again i completely agree but again we want to answer all of john and jane's we want to answer all of john and jane's we want to answer all of john and jane's question so they say okay question so they say okay question so they say okay if it doesn't work at could we do if it doesn't work at could we do if it doesn't work at could we do poverty line at poverty line at poverty line at does that work so again we say okay does that work so again we say okay does that work so again we say okay we're going to work till we're going to work till we're going to work till could we live off okay well it could we live off okay well it could we live off okay well it does change it and does change it and does change it and it does provide some money it does provide some money it does provide some money at the end of retirement and again to at the end of retirement and again to at the end of retirement and again to kind of do our due diligence we have to kind of do our due diligence we have to kind of do our due diligence we have to run this through a monte carlo run this through a monte carlo run this through a monte carlo to see where we fall out to see if we to see where we fall out to see if we to see where we fall out to see if we have a probability of success that have a probability of success that have a probability of success that actually works actually works actually works at age and you can see that our at age and you can see that our at age and you can see that our probability of success probability of success probability of success living at the poverty line at takes living at the poverty line at takes living at the poverty line at takes us to us to us to but i agree with you it doesn't seem to but i agree with you it doesn't seem to but i agree with you it doesn't seem to make a whole lot of sense to work really make a whole lot of sense to work really make a whole lot of sense to work really hard for about years hard for about years hard for about years only to live on as little as possible only to live on as little as possible only to live on as little as possible for the next to for the next for the next to for the next for the next to for the next years years years we know there's there's a basic equation we know there's there's a basic equation we know there's there's a basic equation with any financial decision you can with any financial decision you can with any financial decision you can either either either spend less money or you can make more spend less money or you can make more spend less money or you can make more money that's right that's really those money that's right that's really those money that's right that's really those are your two are your two are your two if you're looking at the fork and the if you're looking at the fork and the if you're looking at the fork and the road moments well if you're at the road moments well if you're at the road moments well if you're at the poverty level poverty level poverty level you can't cut it anymore that's exactly you can't cut it anymore that's exactly you can't cut it anymore that's exactly right yep so is there an opportunity right yep so is there an opportunity right yep so is there an opportunity if you don't want to live at poverty if you don't want to live at poverty if you don't want to live at poverty level where you can go make some money level where you can go make some money level where you can go make some money so here's what we said okay so here's what we said okay so here's what we said okay what would be required all right if what would be required all right if what would be required all right if at the poverty level at the poverty level at the poverty level works but poverty level seems works but poverty level seems works but poverty level seems unrealistic unrealistic unrealistic what if we doubled that instead of what if we doubled that instead of what if we doubled that instead of living off of fifteen hundred dollars a living off of fifteen hundred dollars a living off of fifteen hundred dollars a month we said month we said month we said let's live off of three thousand dollars let's live off of three thousand dollars let's live off of three thousand dollars a month now a month now a month now a year seems better pretty reasonable so a year seems better pretty reasonable so a year seems better pretty reasonable so if we increase our expenses if we increase our expenses if we increase our expenses to a year we still get to the end to a year we still get to the end to a year we still get to the end of the plan now of the plan now of the plan now there is a sliver instead of you know there is a sliver instead of you know there is a sliver instead of you know remember if we did the full remember if we did the full remember if we did the full thing we'd leave this earth with almost thing we'd leave this earth with almost thing we'd leave this earth with almost . million dollars . million dollars . million dollars but now we're only gonna leave with but now we're only gonna leave with but now we're only gonna leave with about four hundred thousand but we got about four hundred thousand but we got about four hundred thousand but we got to the end of the plan to the end of the plan to the end of the plan via straight line yeah but when you via straight line yeah but when you via straight line yeah but when you stress test that that's gonna be scary stress test that that's gonna be scary stress test that that's gonna be scary that's exactly right we have to go back that's exactly right we have to go back that's exactly right we have to go back to our monte carlo simulation to see to our monte carlo simulation to see to our monte carlo simulation to see all right what's our probability of all right what's our probability of all right what's our probability of success if we're going to live off of success if we're going to live off of success if we're going to live off of thousand dollars thousand dollars thousand dollars it's i wouldn't feel comfortable so it's i wouldn't feel comfortable so it's i wouldn't feel comfortable so you may be asking okay well guys what you may be asking okay well guys what you may be asking okay well guys what percentage would make you feel percentage would make you feel percentage would make you feel comfortable i kind of like i think mid comfortable i kind of like i think mid comfortable i kind of like i think mid s is kind of where i'm at s is kind of where i'm at s is kind of where i'm at and i'm back to the thought that even at and i'm back to the thought that even at and i'm back to the thought that even at a year i mean a month a year i mean a month a year i mean a month there's got to be a better way to kind there's got to be a better way to kind there's got to be a better way to kind of consider this and so maybe that's is of consider this and so maybe that's is of consider this and so maybe that's is that going back to work is that you that going back to work is that you that going back to work is that you there has to be a better way there has to be a better way there has to be a better way so there's this other part of the fire so there's this other part of the fire so there's this other part of the fire movement that's called barista fire movement that's called barista fire movement that's called barista fire these are the folks that these are the folks that these are the folks that want to stop doing their like normal day want to stop doing their like normal day want to stop doing their like normal day job but they're not unwilling to work job but they're not unwilling to work job but they're not unwilling to work so what we said is okay let's take john so what we said is okay let's take john so what we said is okay let's take john and jane and and jane and and jane and let's assume that when they retire let's assume that when they retire let's assume that when they retire they're willing to go work at starbucks they're willing to go work at starbucks they're willing to go work at starbucks because that's kind of the thing that's because that's kind of the thing that's because that's kind of the thing that's here i get to go be a barista here i get to go be a barista here i get to go be a barista or a gig economy or a gig economist or a gig economy or a gig economist or a gig economy or a gig economist uber driver lyft driver uh so let's uber driver lyft driver uh so let's uber driver lyft driver uh so let's assume that they can make ten dollars an assume that they can make ten dollars an assume that they can make ten dollars an hour working part-time so they both work hour working part-time so they both work hour working part-time so they both work hours a week dollars an hour hours a week dollars an hour hours a week dollars an hour what happens if at when they retire what happens if at when they retire what happens if at when they retire they can start uh doing some barista they can start uh doing some barista they can start uh doing some barista side hustles looks better well now it side hustles looks better well now it side hustles looks better well now it looks a lot better if we looks a lot better if we looks a lot better if we check the monte carlo to see does that check the monte carlo to see does that check the monte carlo to see does that improve our probability of success improve our probability of success improve our probability of success you can see that our probability excess you can see that our probability excess you can see that our probability excess success actually goes from success actually goes from success actually goes from up to yeah so that makes up to yeah so that makes up to yeah so that makes a pretty big difference right but they a pretty big difference right but they a pretty big difference right but they say okay well say okay well say okay well i was willing to work that sounds great i was willing to work that sounds great i was willing to work that sounds great uh but what if i actually uh but what if i actually uh but what if i actually want to have the additional living want to have the additional living want to have the additional living expenses what if i expenses what if i expenses what if i i don't want to live off of a i don't want to live off of a i don't want to live off of a year year year what if i want to still live off of what if i want to still live off of what if i want to still live off of a year would working at starbucks allow a year would working at starbucks allow a year would working at starbucks allow me to do that would having the barista me to do that would having the barista me to do that would having the barista income income income let me do that if i chose to start doing let me do that if i chose to start doing let me do that if i chose to start doing that at that at that at well unfortunately the answer is no the well unfortunately the answer is no the well unfortunately the answer is no the assets do assets do assets do take you out to age take you out to age take you out to age which is much better than some of our which is much better than some of our which is much better than some of our previous iterations previous iterations previous iterations but it still doesn't get you all the way but it still doesn't get you all the way but it still doesn't get you all the way to the end of the plan to the end of the plan to the end of the plan so if your goal is to live off of the so if your goal is to live off of the so if your goal is to live off of the living expenses you had pre-retirement living expenses you had pre-retirement living expenses you had pre-retirement and you're willing to get a side gig and and you're willing to get a side gig and and you're willing to get a side gig and start working at age start working at age start working at age it's still not quite gonna cut it so you it's still not quite gonna cut it so you it's still not quite gonna cut it so you made an made an made an interesting observation brian you said interesting observation brian you said interesting observation brian you said when it comes to making financial when it comes to making financial when it comes to making financial decisions you really have decisions you really have decisions you really have two options you can make more or you can two options you can make more or you can two options you can make more or you can spend less spend less spend less i'd argue there's a third one sometimes i'd argue there's a third one sometimes i'd argue there's a third one sometimes yeah sometimes if you have yeah sometimes if you have yeah sometimes if you have big goals and you've already big goals and you've already big goals and you've already exercised making more and you've already exercised making more and you've already exercised making more and you've already kind of cut the expenses as lean as kind of cut the expenses as lean as kind of cut the expenses as lean as possible possible possible the other option you can have as it the other option you can have as it the other option you can have as it relates to fire is you can be a really relates to fire is you can be a really relates to fire is you can be a really aggressive saver yeah aggressive saver yeah aggressive saver yeah so we talk about hey we want john and so we talk about hey we want john and so we talk about hey we want john and jane to save jane to save jane to save of their gross income of their gross income of their gross income well john and jane may say you know what well john and jane may say you know what well john and jane may say you know what in order to make this fire thing in order to make this fire thing in order to make this fire thing possible rather than only saving possible rather than only saving possible rather than only saving of our income during our working years of our income during our working years of our income during our working years we're willing we're willing we're willing to really beef that up and what i mean to really beef that up and what i mean to really beef that up and what i mean by really beef that up by really beef that up by really beef that up is not only are we just going to do is not only are we just going to do is not only are we just going to do percent to our ks percent to our ks percent to our ks we're going to go ahead and max them out we're going to go ahead and max them out we're going to go ahead and max them out at the full at the full at the full each so that takes our total annual each so that takes our total annual each so that takes our total annual savings to about savings to about savings to about a year or about percent a year or about percent a year or about percent of our annual income so if i'm willing of our annual income so if i'm willing of our annual income so if i'm willing to work until age to work until age to work until age and i'm willing to save of my income and i'm willing to save of my income and i'm willing to save of my income from zero until and when i get to from zero until and when i get to from zero until and when i get to i'm willing to go get a part-time job i'm willing to go get a part-time job i'm willing to go get a part-time job working at starbucks working at starbucks working at starbucks does the plan work well you can see does the plan work well you can see does the plan work well you can see now we in the plan with about . now we in the plan with about . now we in the plan with about . million dollars left over million dollars left over million dollars left over pretty healthy margin if we run it back pretty healthy margin if we run it back pretty healthy margin if we run it back through through through our monte carlo simulation again this is our monte carlo simulation again this is our monte carlo simulation again this is running through running through running through a thousand different iterations a thousand different iterations a thousand different iterations assuming additional savings assuming assuming additional savings assuming assuming additional savings assuming getting a side gig getting a side gig getting a side gig we actually have an percent we actually have an percent we actually have an percent probability success but that has you probability success but that has you probability success but that has you working working working is that think about it because think is that think about it because think is that think about it because think about this this is essentially like a about this this is essentially like a about this this is essentially like a fat fat fat fire type person where they're going to fire type person where they're going to fire type person where they're going to really hyper save while they are working really hyper save while they are working really hyper save while they are working but then when they get to retirement but then when they get to retirement but then when they get to retirement they're not going to fully retire they're not going to fully retire they're not going to fully retire they're going to continue to work they're going to continue to work they're going to continue to work does that does the fat fire or somebody does that does the fat fire or somebody does that does the fat fire or somebody who's willing to who's willing to who's willing to really put the pedal to the metal on really put the pedal to the metal on really put the pedal to the metal on savings savings savings is there a way they can do that at is there a way they can do that at is there a way they can do that at without working so without working okay without working so without working okay without working so without working okay so let's say so let's say so let's say we take off our barista income we we take off our barista income we we take off our barista income we actually do exit actually do exit actually do exit we're still uh going to be living at we're still uh going to be living at we're still uh going to be living at double the poverty line this is the double the poverty line this is the double the poverty line this is the . can we do that or if that's . . can we do that or if that's . . can we do that or if that's . it's close so you maybe need to save a it's close so you maybe need to save a it's close so you maybe need to save a touch more we either need to save a touch more we either need to save a touch more we either need to save a touch more or think about spending a touch more or think about spending a touch more or think about spending a touch less and remember touch less and remember touch less and remember we're still not at that point where we're still not at that point where we're still not at that point where we're actually living off of our we're actually living off of our we're actually living off of our a year goal but but you were saving a year goal but but you were saving a year goal but but you were saving of your income so odds are you're not of your income so odds are you're not of your income so odds are you're not actually needing so maybe actually needing so maybe actually needing so maybe that is a realistic scenario but john that is a realistic scenario but john that is a realistic scenario but john and jane are super ambitious and jane are super ambitious and jane are super ambitious and they say okay we got an idea for you and they say okay we got an idea for you and they say okay we got an idea for you guys we thought this through guys we thought this through guys we thought this through mom and dad have said that we can go mom and dad have said that we can go mom and dad have said that we can go live with them mom and dad live with them mom and dad live with them mom and dad said that we can make our hundred said that we can make our hundred said that we can make our hundred thousand dollars but they're gonna let thousand dollars but they're gonna let thousand dollars but they're gonna let us live with them us live with them us live with them for the first years right uh for the first years right uh for the first years right uh they're not gonna charge us any rent and they're not gonna charge us any rent and they're not gonna charge us any rent and they're gonna cover our groceries they're gonna cover our groceries they're gonna cover our groceries uh and then uncle sam said you know what uh and then uncle sam said you know what uh and then uncle sam said you know what john and jane we really want you to be john and jane we really want you to be john and jane we really want you to be so financially independent we're not so financially independent we're not so financially independent we're not going to charge you any taxes going to charge you any taxes going to charge you any taxes so you're going to find a way to save a so you're going to find a way to save a so you're going to find a way to save a hundred hundred hundred thousand dollars a year thousand dollars a year thousand dollars a year of your income well what i think is a of your income well what i think is a of your income well what i think is a better because better because better because government doesn't let you out of taxes government doesn't let you out of taxes government doesn't let you out of taxes the the better suggestion is the the better suggestion is the the better suggestion is you have a relative that's going because you have a relative that's going because you have a relative that's going because that's usually when cnbc runs an article that's usually when cnbc runs an article that's usually when cnbc runs an article somebody okay somebody okay somebody okay of debt in two years sure what of debt in two years sure what of debt in two years sure what they fail to tell you is typically they fail to tell you is typically they fail to tell you is typically there's some there's some there's some family economic support where they're family economic support where they're family economic support where they're giving you giving you giving you a year in gifts so here's the big a year in gifts so here's the big a year in gifts so here's the big question question question if they can generate whether it be if they can generate whether it be if they can generate whether it be through gifts or whatever else through gifts or whatever else through gifts or whatever else a hundred thousand dollars of saving a hundred thousand dollars of saving a hundred thousand dollars of saving from age to from age to from age to and their goal is to live off of and their goal is to live off of and their goal is to live off of per year does it work no per year does it work no per year does it work no the answer is no it only gets them out the answer is no it only gets them out the answer is no it only gets them out to to to about years old yeah if they said about years old yeah if they said about years old yeah if they said okay well what if i wanted to live off okay well what if i wanted to live off okay well what if i wanted to live off of less what if we did that could we of less what if we did that could we of less what if we did that could we live off of live off of live off of a year okay maybe that gets you a year okay maybe that gets you a year okay maybe that gets you there there there i think what we're seeing here though i think what we're seeing here though i think what we're seeing here though and this is what we would try to explain and this is what we would try to explain and this is what we would try to explain to john and jane hey based on where you to john and jane hey based on where you to john and jane hey based on where you guys are guys are guys are wanting to be parts of the fire movement wanting to be parts of the fire movement wanting to be parts of the fire movement i don't know that the s is going to be i don't know that the s is going to be i don't know that the s is going to be your key your key your key i don't know that being able to live the i don't know that being able to live the i don't know that being able to live the way you want way you want way you want when you want how you want is going to when you want how you want is going to when you want how you want is going to be something that's attainable be something that's attainable be something that's attainable before years of age that's very before years of age that's very before years of age that's very similar to what sam similar to what sam similar to what sam financial samurai found out as well financial samurai found out as well financial samurai found out as well doing firing your s is going to be doing firing your s is going to be doing firing your s is going to be tough unless you've really invented tough unless you've really invented tough unless you've really invented something i'm talking about coding something i'm talking about coding something i'm talking about coding or literally made something up you came or literally made something up you came or literally made something up you came up with the up with the up with the the sponge that sold on shark tank and the sponge that sold on shark tank and the sponge that sold on shark tank and it set you up for life it set you up for life it set you up for life yeah i think so as we were kind of going yeah i think so as we were kind of going yeah i think so as we were kind of going through this okay what are some through this okay what are some through this okay what are some some tangible takeaways from this some tangible takeaways from this some tangible takeaways from this illustration what are the things illustration what are the things illustration what are the things that we want our folks to know that we that we want our folks to know that we that we want our folks to know that we want our folks to recognize want our folks to recognize want our folks to recognize is that fire is possible but you have to is that fire is possible but you have to is that fire is possible but you have to be realistic be realistic be realistic about that now what we did here was very about that now what we did here was very about that now what we did here was very very simplified when we actually do this very simplified when we actually do this very simplified when we actually do this with clients with clients with clients we don't just say okay well what are we don't just say okay well what are we don't just say okay well what are your living expenses we ask questions your living expenses we ask questions your living expenses we ask questions like okay well how often are you going like okay well how often are you going like okay well how often are you going to replace your cars how are you going to replace your cars how are you going to replace your cars how are you going to pay for health insurance to pay for health insurance to pay for health insurance what's your travel budget going to look what's your travel budget going to look what's your travel budget going to look like what are the weddings or colleges like what are the weddings or colleges like what are the weddings or colleges or other things you have to fund or other things you have to fund or other things you have to fund this was a very very simple illustration this was a very very simple illustration this was a very very simple illustration but what it showed me is that but what it showed me is that but what it showed me is that unrealistic expectations unrealistic expectations unrealistic expectations lead to not very high lead to not very high lead to not very high probability success outcomes well i probability success outcomes well i probability success outcomes well i think it's it's it's back to my measure think it's it's it's back to my measure think it's it's it's back to my measure twice cut once because twice cut once because twice cut once because think about if you could customize this think about if you could customize this think about if you could customize this where maybe you work years where maybe you work years where maybe you work years and then the other option is is what and then the other option is is what and then the other option is is what happens if happens if happens if you change what happens at age maybe you change what happens at age maybe you change what happens at age maybe yes you're still planning on limited yes you're still planning on limited yes you're still planning on limited mean but your living expenses go down mean but your living expenses go down mean but your living expenses go down significantly at . significantly at . significantly at . that's what i love about doing these that's what i love about doing these that's what i love about doing these type of type of type of stress test analysis especially when you stress test analysis especially when you stress test analysis especially when you can customize it can customize it can customize it because it lets you put in every because it lets you put in every because it lets you put in every scenario and nothing lights up scenario and nothing lights up scenario and nothing lights up a client's eyes bigger when we can build a client's eyes bigger when we can build a client's eyes bigger when we can build something completely custom something completely custom something completely custom and let them walk through what their and let them walk through what their and let them walk through what their life is going to look like i did have a life is going to look like i did have a life is going to look like i did have a few more takeaways few more takeaways few more takeaways okay go ahead fire is more of a to okay go ahead fire is more of a to okay go ahead fire is more of a to dream and i think that dream and i think that dream and i think that like i said i i think that financial like i said i i think that financial like i said i i think that financial samurai sam kind of samurai sam kind of samurai sam kind of alluded to that he realizes that because alluded to that he realizes that because alluded to that he realizes that because you need a lot you need a few more you need a lot you need a few more you need a lot you need a few more things it's kind of like things it's kind of like things it's kind of like putting a post in concrete you know if putting a post in concrete you know if putting a post in concrete you know if you if you you if you you if you if you try to to to put weight or if you try to to to put weight or if you try to to to put weight or pressure on that fence uh that post pressure on that fence uh that post pressure on that fence uh that post before the concrete is set it's it's before the concrete is set it's it's before the concrete is set it's it's going to fail going to fail going to fail and that's the way it so if you do this and that's the way it so if you do this and that's the way it so if you do this think about a year old think about a year old think about a year old they're trying to accelerate they're they're trying to accelerate they're they're trying to accelerate they're trying to do it too early and then they trying to do it too early and then they trying to do it too early and then they find out it's just it's not they didn't find out it's just it's not they didn't find out it's just it's not they didn't give enough time for their life to set give enough time for their life to set give enough time for their life to set the concrete of life and i'm talking the concrete of life and i'm talking the concrete of life and i'm talking about the kids about the kids about the kids i'm talking about the career i'm talking i'm talking about the career i'm talking i'm talking about the career i'm talking about the houses about the houses about the houses i'm talking about just making sure you i'm talking about just making sure you i'm talking about just making sure you know a lot of the variables there's know a lot of the variables there's know a lot of the variables there's still going to be a lot of life that still going to be a lot of life that still going to be a lot of life that you're you're you're is going to be uncertain you're not is going to be uncertain you're not is going to be uncertain you're not going to be able to plan for but at going to be able to plan for but at going to be able to plan for but at least your least your least your life will be set in a lot of the life will be set in a lot of the life will be set in a lot of the different ways the second thing i found different ways the second thing i found different ways the second thing i found out is you better like your day job out is you better like your day job out is you better like your day job um you know it actually will make it um you know it actually will make it um you know it actually will make it easier you know if you know you have to easier you know if you know you have to easier you know if you know you have to work to be work to be work to be or you have to work to or even or you have to work to or even or you have to work to or even because remember a year old who because remember a year old who because remember a year old who retires early retires early retires early you're still part of the fire movement you're still part of the fire movement you're still part of the fire movement you're still leaving early you're still leaving early you're still leaving early but you need to have work that gives you but you need to have work that gives you but you need to have work that gives you purpose so that you don't feel like purpose so that you don't feel like purpose so that you don't feel like you're just stuck you're just stuck you're just stuck just droning on every day in a job you just droning on every day in a job you just droning on every day in a job you don't like i don't like i don't like i don't spend a lot of time in the fire don't spend a lot of time in the fire don't spend a lot of time in the fire forums but i feel like that's one that forums but i feel like that's one that forums but i feel like that's one that gets missed a lot because i'll see these gets missed a lot because i'll see these gets missed a lot because i'll see these young folks who say you know what young folks who say you know what young folks who say you know what i'm gonna go out to the west coast i'm i'm gonna go out to the west coast i'm i'm gonna go out to the west coast i'm gonna go out to northeast and i'm gonna gonna go out to northeast and i'm gonna gonna go out to northeast and i'm gonna work work work hours a week and i'm gonna make hours a week and i'm gonna make hours a week and i'm gonna make but man i'm gonna hate my but man i'm gonna hate my but man i'm gonna hate my life for the first or years life for the first or years life for the first or years you really ought to measure is it worth you really ought to measure is it worth you really ought to measure is it worth it it it or would you rather do something you or would you rather do something you or would you rather do something you enjoy more perhaps enjoy more perhaps enjoy more perhaps make less plan on working longer but make less plan on working longer but make less plan on working longer but have a better quality of life don't you have a better quality of life don't you have a better quality of life don't you feel like you see a lot of folks who do feel like you see a lot of folks who do feel like you see a lot of folks who do that that that well i've often told you know because well i've often told you know because well i've often told you know because the financial industry is very similar the financial industry is very similar the financial industry is very similar in the fact that you can be in the fact that you can be in the fact that you can be a rock star or you can be a builder and a rock star or you can be a builder and a rock star or you can be a builder and what i mean by that what i mean by that what i mean by that is is that a lot of people in our is is that a lot of people in our is is that a lot of people in our industry come in and they you can make a industry come in and they you can make a industry come in and they you can make a gazillion dollars if you're willing to gazillion dollars if you're willing to gazillion dollars if you're willing to go sell go sell go sell and you know and go out there and knock and you know and go out there and knock and you know and go out there and knock on doors and it's not always the best on doors and it's not always the best on doors and it's not always the best way i don't think it's healthy way i don't think it's healthy way i don't think it's healthy whereas we're kind of the slow we're the whereas we're kind of the slow we're the whereas we're kind of the slow we're the bridge builders where we build bridge builders where we build bridge builders where we build relationships over time and i think relationships over time and i think relationships over time and i think that's what you're alluding to is that that's what you're alluding to is that that's what you're alluding to is that yes you can go out there and work in a yes you can go out there and work in a yes you can go out there and work in a high-paying job you can code you can go high-paying job you can code you can go high-paying job you can code you can go do do do other things and work hours a week other things and work hours a week other things and work hours a week but you can only do that so long or take but you can only do that so long or take but you can only do that so long or take that's the west coast if you want to go that's the west coast if you want to go that's the west coast if you want to go east coast east coast east coast you could go work as a trader or an you could go work as a trader or an you could go work as a trader or an analyst or somebody who's still going to analyst or somebody who's still going to analyst or somebody who's still going to work hours a week make work hours a week make work hours a week make great money but you're only going to be great money but you're only going to be great money but you're only going to be able to do that for so long able to do that for so long able to do that for so long whereas maybe like go like we're whereas maybe like go like we're whereas maybe like go like we're financial planners financial planners financial planners you don't make great money to start off you don't make great money to start off you don't make great money to start off but if you can start building that but if you can start building that but if you can start building that bridge bridge bridge before you know it you have the before you know it you have the before you know it you have the potential and this is actually a great potential and this is actually a great potential and this is actually a great segue into my next point segue into my next point segue into my next point the bigger your shovel the better now the bigger your shovel the better now the bigger your shovel the better now that look it's easy to get a big shovel that look it's easy to get a big shovel that look it's easy to get a big shovel meaning a big income going and doing meaning a big income going and doing meaning a big income going and doing some of these some of these some of these glamorous jobs with technology with you glamorous jobs with technology with you glamorous jobs with technology with you know know know biotech trading you know in wall street biotech trading you know in wall street biotech trading you know in wall street but man if you can't stick to it long but man if you can't stick to it long but man if you can't stick to it long enough to build it you know enough to build it you know enough to build it you know where your purpose is or build up the where your purpose is or build up the where your purpose is or build up the nest egg you might find that you're just nest egg you might find that you're just nest egg you might find that you're just miserable and you you put yourself in an miserable and you you put yourself in an miserable and you you put yourself in an unhealthy position unhealthy position unhealthy position where it's just it doesn't work out yeah where it's just it doesn't work out yeah where it's just it doesn't work out yeah a big shovel helps a ton when it comes a big shovel helps a ton when it comes a big shovel helps a ton when it comes to retiring early to retiring early to retiring early but you better be able to hold that but you better be able to hold that but you better be able to hold that shovel up and if it's so big that you shovel up and if it's so big that you shovel up and if it's so big that you can't stand the weight of it meaning the can't stand the weight of it meaning the can't stand the weight of it meaning the stress of whatever that thing is you're stress of whatever that thing is you're stress of whatever that thing is you're doing doing doing you might not be setting yourself up for you might not be setting yourself up for you might not be setting yourself up for a very enjoyable back half of your a very enjoyable back half of your a very enjoyable back half of your journey i didn't ask you to put it up journey i didn't ask you to put it up journey i didn't ask you to put it up and and and we're kind of past the point of pulling we're kind of past the point of pulling we're kind of past the point of pulling it up on the screen but i noticed i it up on the screen but i noticed i it up on the screen but i noticed i couldn't help but notice when you just couldn't help but notice when you just couldn't help but notice when you just showed the straight line showed the straight line showed the straight line of just six percent a year growth you of just six percent a year growth you of just six percent a year growth you know we know that's not the way life know we know that's not the way life know we know that's not the way life works but it was amazing just the the works but it was amazing just the the works but it was amazing just the the the sheer the sheer the sheer power of compounding interest absolutely power of compounding interest absolutely power of compounding interest absolutely is that is that is that that six percent by the time you get that six percent by the time you get that six percent by the time you get into years s into years s into years s you know it's huge what that six you know it's huge what that six you know it's huge what that six percent is per year meaning that percent is per year meaning that percent is per year meaning that if you leave early there's a huge if you leave early there's a huge if you leave early there's a huge opportunity cost opportunity cost opportunity cost so don't underestimate the power of time so don't underestimate the power of time so don't underestimate the power of time because that's the thing i think a lot because that's the thing i think a lot because that's the thing i think a lot of people of people of people it's all back to if you leave the it's all back to if you leave the it's all back to if you leave the workforce at workforce at workforce at you're taking out at least you're taking out at least you're taking out at least if not you know years that your if not you know years that your if not you know years that your money cannot only with money cannot only with money cannot only with what you're earning and saving and what you're earning and saving and what you're earning and saving and putting to work in the markets putting to work in the markets putting to work in the markets is building those army of dollar bills is building those army of dollar bills is building those army of dollar bills but also what you've already saved and but also what you've already saved and but also what you've already saved and invested is building in the background invested is building in the background invested is building in the background don't underestimate the power don't underestimate the power don't underestimate the power of letting your money work for you the of letting your money work for you the of letting your money work for you the reason that times over works and the reason that times over works and the reason that times over works and the reason we give away the koozies reason we give away the koozies reason we give away the koozies is because it's the time that allows is because it's the time that allows is because it's the time that allows that to happen it's the that to happen it's the that to happen it's the years that makes the happen not the years that makes the happen not the years that makes the happen not the dollars and so you have to keep that in dollars and so you have to keep that in dollars and so you have to keep that in mind when it comes to building towards mind when it comes to building towards mind when it comes to building towards financial independence so bo we're kind financial independence so bo we're kind financial independence so bo we're kind of closing out of closing out of closing out i'll be curious to see how far absorbs i'll be curious to see how far absorbs i'll be curious to see how far absorbs this show because this show because this show because this was one of those because i love the this was one of those because i love the this was one of those because i love the coaching the motivation and i love coaching the motivation and i love coaching the motivation and i love getting people excited and yes there was getting people excited and yes there was getting people excited and yes there was a little bit of that here a little bit of that here a little bit of that here but this one got into the week sure i but this one got into the week sure i but this one got into the week sure i mean this is this is kind of an mean this is this is kind of an mean this is this is kind of an experiment on our part is that we wanted experiment on our part is that we wanted experiment on our part is that we wanted to flex the power of some of the to flex the power of some of the to flex the power of some of the planning software planning software planning software but also give you guys who are but also give you guys who are but also give you guys who are considering your if you're part of this considering your if you're part of this considering your if you're part of this movement movement movement give you a taste of the analytics that give you a taste of the analytics that give you a taste of the analytics that go into what we're doing go into what we're doing go into what we're doing also because i really hope that you guys also because i really hope that you guys also because i really hope that you guys can absorb or you appreciate can absorb or you appreciate can absorb or you appreciate we try to give you some some we try to give you some some we try to give you some some illustrations here that you can illustrations here that you can illustrations here that you can internalize this and compare and internalize this and compare and internalize this and compare and contrast to what you're doing in your contrast to what you're doing in your contrast to what you're doing in your own own own you know retiring early journey if you you know retiring early journey if you you know retiring early journey if you saw this you're like man that's really saw this you're like man that's really saw this you're like man that's really interesting i i wish i knew more about interesting i i wish i knew more about interesting i i wish i knew more about that i'd like to think about the that i'd like to think about the that i'd like to think about the planning or planning or planning or i've been on this financial independence i've been on this financial independence i've been on this financial independence retire early journey and i'm retire early journey and i'm retire early journey and i'm i'm getting close and i want someone to i'm getting close and i want someone to i'm getting close and i want someone to help me spot check that i want to help me spot check that i want to help me spot check that i want to make sure that i'm doing all the things make sure that i'm doing all the things make sure that i'm doing all the things i'm supposed to be doing feel free to i'm supposed to be doing feel free to i'm supposed to be doing feel free to reach out to us that's the idea of the reach out to us that's the idea of the reach out to us that's the idea of the abundant cycle we want to abundant cycle we want to abundant cycle we want to load you guys up so that you can grow load you guys up so that you can grow load you guys up so that you can grow and grow and grow when it does become and grow and grow when it does become and grow and grow when it does become time time time for you to take it to the next level for you to take it to the next level for you to take it to the next level you'll remember the team that kind of you'll remember the team that kind of you'll remember the team that kind of helped you plant those seeds so if you helped you plant those seeds so if you helped you plant those seeds so if you haven't had a chance go to haven't had a chance go to haven't had a chance go to aboundwealth.com you can check out aboundwealth.com you can check out aboundwealth.com you can check out all of our advisory personnel here go to all of our advisory personnel here go to all of our advisory personnel here go to moneyguide.com you can see moneyguide.com you can see moneyguide.com you can see all of our free resources available out all of our free resources available out all of our free resources available out there for you guys to help you grow there for you guys to help you grow there for you guys to help you grow we want to make sure that whatever your we want to make sure that whatever your we want to make sure that whatever your financial dreams are we can help you get financial dreams are we can help you get financial dreams are we can help you get there there there guys that's the abundance cycle he just guys that's the abundance cycle he just guys that's the abundance cycle he just described by the way you come learn described by the way you come learn described by the way you come learn apply grow apply grow apply grow start off just absorb all the free start off just absorb all the free start off just absorb all the free advice we give but when you reach a advice we give but when you reach a advice we give but when you reach a level of success and complication level of success and complication level of success and complication we'll be here waiting for you absolutely we'll be here waiting for you absolutely we'll be here waiting for you absolutely the only thing i also would ask the only thing i also would ask the only thing i also would ask you see this ticker we are so close to a you see this ticker we are so close to a you see this ticker we are so close to a hundred thousand please hundred thousand please hundred thousand please go subscribe go tell some friends family go subscribe go tell some friends family go subscribe go tell some friends family we have a goal of a hundred thousand by we have a goal of a hundred thousand by we have a goal of a hundred thousand by year and that's not going to happen year and that's not going to happen year and that's not going to happen automatically we need your help automatically we need your help automatically we need your help so go subscribe on youtube so we can so go subscribe on youtube so we can so go subscribe on youtube so we can reach a hundred thousand continue to reach a hundred thousand continue to reach a hundred thousand continue to grow grow grow this incredible thing that we've been this incredible thing that we've been this incredible thing that we've been blessed to have started in so thank blessed to have started in so thank blessed to have started in so thank you thank you you thank you you thank you appreciate you going on this journey appreciate you going on this journey appreciate you going on this journey with us i'm your host brian preston mr with us i'm your host brian preston mr with us i'm your host brian preston mr bohansen bohansen bohansen money guy team out WEBVTT Kind: captions Language: en let's get down to sort of like more let's get down to sort of like more let's get down to sort of like more practical stuff let's say someone's practical stuff let's say someone's practical stuff let's say someone's listening really have their interest listening really have their interest listening really have their interest piqued one of the first few things they piqued one of the first few things they piqued one of the first few things they should do to put themselves sort of on should do to put themselves sort of on should do to put themselves sort of on the path to a fine lifestyle yeah let's the path to a fine lifestyle yeah let's the path to a fine lifestyle yeah let's let's take a look at the the simple let's take a look at the the simple let's take a look at the the simple equation right what you learn - what you equation right what you learn - what you equation right what you learn - what you spend is equal to the difference of the spend is equal to the difference of the spend is equal to the difference of the gap we want to grow the income we want gap we want to grow the income we want gap we want to grow the income we want to decrease the expenses and we're gonna to decrease the expenses and we're gonna to decrease the expenses and we're gonna figure out how to optimize the figure out how to optimize the figure out how to optimize the difference right those are three difference right those are three difference right those are three different strategies with virtually different strategies with virtually different strategies with virtually unlimited options around them and you unlimited options around them and you unlimited options around them and you need to look at where you are on the need to look at where you are on the need to look at where you are on the spectrum what is your problem is you spectrum what is your problem is you spectrum what is your problem is you have great income you've got a decent have great income you've got a decent have great income you've got a decent baseline but you just don't know what to baseline but you just don't know what to baseline but you just don't know what to do with the difference let's talk about do with the difference let's talk about do with the difference let's talk about that let's say that you are just that let's say that you are just that let's say that you are just paycheck to paycheck on k let's talk paycheck to paycheck on k let's talk paycheck to paycheck on k let's talk about that so we've got to figure out about that so we've got to figure out about that so we've got to figure out what individual we're actually talking what individual we're actually talking what individual we're actually talking to the five community is really really to the five community is really really to the five community is really really good on the spend left side of things good on the spend left side of things good on the spend left side of things and we're really really good at the and we're really really good at the and we're really really good at the optimize the different side of things optimize the different side of things optimize the different side of things and so I think that in this particular and so I think that in this particular and so I think that in this particular conversation that's probably where we conversation that's probably where we conversation that's probably where we can add a lot of value earning more I can add a lot of value earning more I can add a lot of value earning more I think that Ernie Moore is great I think think that Ernie Moore is great I think think that Ernie Moore is great I think all of us look at earning more I think all of us look at earning more I think all of us look at earning more I think that's a great opportunity but it's it's that's a great opportunity but it's it's that's a great opportunity but it's it's a little more nebulous like what am I a little more nebulous like what am I a little more nebulous like what am I gonna do tomorrow let's talk about gonna do tomorrow let's talk about gonna do tomorrow let's talk about career hacking let's talk about career hacking let's talk about career hacking let's talk about alternative careers let's talk about alternative careers let's talk about alternative careers let's talk about moving across the street like there's moving across the street like there's moving across the street like there's just do a start-up do a side hustle just do a start-up do a side hustle just do a start-up do a side hustle there's I think just for the sake of there's I think just for the sake of there's I think just for the sake of this short conversation we should say this short conversation we should say this short conversation we should say that's great let's focus on earning more that's great let's focus on earning more that's great let's focus on earning more but let's just set that to the side and but let's just set that to the side and but let's just set that to the side and let's focus on the other to spend less let's focus on the other to spend less let's focus on the other to spend less and Brad I mean there's a bunch of and Brad I mean there's a bunch of and Brad I mean there's a bunch of really cool levers that you can pull really cool levers that you can pull really cool levers that you can pull almost immediately did to kick that almost immediately did to kick that almost immediately did to kick that savings right into gear yeah I mean for savings right into gear yeah I mean for savings right into gear yeah I mean for me it's it's the big line items in your me it's it's the big line items in your me it's it's the big line items in your budget right again we don't want to live budget right again we don't want to live budget right again we don't want to live this life of deprivation so we can talk this life of deprivation so we can talk this life of deprivation so we can talk about cutting out Starbucks and avocado about cutting out Starbucks and avocado about cutting out Starbucks and avocado toast but to me that's beside the point toast but to me that's beside the point toast but to me that's beside the point it's how do you design that life that it's how do you design that life that it's how do you design that life that things that you buy actually matter so things that you buy actually matter so things that you buy actually matter so for me it's housing makes up probably for me it's housing makes up probably for me it's housing makes up probably about a third of people's budget cars about a third of people's budget cars about a third of people's budget cars somewhere in the vicinity of to somewhere in the vicinity of to somewhere in the vicinity of to percent I think you can look at those percent I think you can look at those percent I think you can look at those immediately obviously that's a big immediately obviously that's a big immediately obviously that's a big decision for many people right moving is decision for many people right moving is decision for many people right moving is not something you take lightly but if it not something you take lightly but if it not something you take lightly but if it matters a thousand plus dollars a month matters a thousand plus dollars a month matters a thousand plus dollars a month maybe it's worth looking into I think maybe it's worth looking into I think maybe it's worth looking into I think some really simple ones are food people some really simple ones are food people some really simple ones are food people just hemorrhage money on food so for me just hemorrhage money on food so for me just hemorrhage money on food so for me it's about being intentional my family it's about being intentional my family it's about being intentional my family we cook basically all of our meals and we cook basically all of our meals and we cook basically all of our meals and our meals cost about two dollars per our meals cost about two dollars per our meals cost about two dollars per person per meal that sure beats going person per meal that sure beats going person per meal that sure beats going out to out to out to the local grocery store and even just the local grocery store and even just the local grocery store and even just getting the prepared food there for $ getting the prepared food there for $ getting the prepared food there for $ a pound right not less going out to a pound right not less going out to a pound right not less going out to dinner for whatever Plus drinks post-tax dinner for whatever Plus drinks post-tax dinner for whatever Plus drinks post-tax and tips so I think you can save many and tips so I think you can save many and tips so I think you can save many many hundreds of dollars per month just many hundreds of dollars per month just many hundreds of dollars per month just some food alone I think to me that is some food alone I think to me that is some food alone I think to me that is the simple kind of low-hanging fruit the simple kind of low-hanging fruit the simple kind of low-hanging fruit just looking at subscriptions I think just looking at subscriptions I think just looking at subscriptions I think looking at your phone bill like my phone looking at your phone bill like my phone looking at your phone bill like my phone bill through republic Wireless cost me bill through republic Wireless cost me bill through republic Wireless cost me under $ a month I have a regular under $ a month I have a regular under $ a month I have a regular smartphone you wouldn't know I'm doing smartphone you wouldn't know I'm doing smartphone you wouldn't know I'm doing anything crazy I'm just a little more anything crazy I'm just a little more anything crazy I'm just a little more intentional so it comes back to that intentional so it comes back to that intentional so it comes back to that intentionality right intentionality right intentionality right I don't download YouTube videos and I don't download YouTube videos and I don't download YouTube videos and podcasts when I'm off Wi-Fi that is podcasts when I'm off Wi-Fi that is podcasts when I'm off Wi-Fi that is literally the only thing I give up literally the only thing I give up literally the only thing I give up otherwise I have a perfectly functional otherwise I have a perfectly functional otherwise I have a perfectly functional normal humans phone I just don't do normal humans phone I just don't do normal humans phone I just don't do those couple things like is that like oh those couple things like is that like oh those couple things like is that like oh poor me cry me a river type deal or is poor me cry me a river type deal or is poor me cry me a river type deal or is that well I'm saving $, per phone that well I'm saving $, per phone that well I'm saving $, per phone line per year it's an obvious choice line per year it's an obvious choice line per year it's an obvious choice once you're once you're presented with once you're once you're presented with once you're once you're presented with it right so again it's those kind of it right so again it's those kind of it right so again it's those kind of things obviously the cutting the cable things obviously the cutting the cable things obviously the cutting the cable you know etc excited we can talk with you know etc excited we can talk with you know etc excited we can talk with this ad nauseam but there are these this ad nauseam but there are these this ad nauseam but there are these items to look I don't want to belabor items to look I don't want to belabor items to look I don't want to belabor this particular side of things but just this particular side of things but just this particular side of things but just to point out how powerful this is your to point out how powerful this is your to point out how powerful this is your we talked about the car earlier in the we talked about the car earlier in the we talked about the car earlier in the conversation if you were to do the math conversation if you were to do the math conversation if you were to do the math on the true cost of car ownership if you on the true cost of car ownership if you on the true cost of car ownership if you were to basically look at the difference were to basically look at the difference were to basically look at the difference between buying that brand-new car and between buying that brand-new car and between buying that brand-new car and financing a new car for life versus just financing a new car for life versus just financing a new car for life versus just having frankly one new car pain and having frankly one new car pain and having frankly one new car pain and often sticking with it for years and often sticking with it for years and often sticking with it for years and years and years until it disintegrates years and years until it disintegrates years and years until it disintegrates into dust in your driveway into dust in your driveway into dust in your driveway the difference is million a million the difference is million a million the difference is million a million dollars I mean it's that that truly dollars I mean it's that that truly dollars I mean it's that that truly incredible if you look at something incredible if you look at something incredible if you look at something that's a powerful idea called like house that's a powerful idea called like house that's a powerful idea called like house hacking it's a big word for basically hacking it's a big word for basically hacking it's a big word for basically just saying you buy a either single just saying you buy a either single just saying you buy a either single family home or a duplex or triplex family home or a duplex or triplex family home or a duplex or triplex you'll stay in one room and you rent out you'll stay in one room and you rent out you'll stay in one room and you rent out the others hopefully with enough to the others hopefully with enough to the others hopefully with enough to cover most or all of your rent so you cover most or all of your rent so you cover most or all of your rent so you live for free imagine just simply living live for free imagine just simply living live for free imagine just simply living for free cutting that line item for your for free cutting that line item for your for free cutting that line item for your budget and then if you want to compound budget and then if you want to compound budget and then if you want to compound that since we know that between your that since we know that between your that since we know that between your home cost and your transportation cost home cost and your transportation cost home cost and your transportation cost that's % of most people's budget if that's % of most people's budget if that's % of most people's budget if you then moved your house act close to you then moved your house act close to you then moved your house act close to your job and you could bike or walk or your job and you could bike or walk or your job and you could bike or walk or commute you know very easily go to work commute you know very easily go to work commute you know very easily go to work suddenly you have cut your expenses by suddenly you have cut your expenses by suddenly you have cut your expenses by % if you then put that into the other % if you then put that into the other % if you then put that into the other side of the equation the life side of the equation the life side of the equation the life optimization optimization optimization we know like for instance if you have a we know like for instance if you have a we know like for instance if you have a % savings rate that means it takes you % savings rate that means it takes you % savings rate that means it takes you years to replace you know that one years to replace you know that one years to replace you know that one year of expenses right if you have a % year of expenses right if you have a % year of expenses right if you have a % savings rate we know that you can get to savings rate we know that you can get to savings rate we know that you can get to a point where working is optional within a point where working is optional within a point where working is optional within to years using the power of to years using the power of to years using the power of compound interest that's how powerful it compound interest that's how powerful it compound interest that's how powerful it is so when you look at your life and you is so when you look at your life and you is so when you look at your life and you look at this as a puzzle and you say I look at this as a puzzle and you say I look at this as a puzzle and you say I can focus on any aspect of this but what can focus on any aspect of this but what can focus on any aspect of this but what do I want to do now you often do do I want to do now you often do do I want to do now you often do everything but my friend you're gonna everything but my friend you're gonna everything but my friend you're gonna have to do something and that's the have to do something and that's the have to do something and that's the really cool part of this let's just get really cool part of this let's just get really cool part of this let's just get a little bit better every single day and a little bit better every single day and a little bit better every single day and we see this I was talking to an we see this I was talking to an we see this I was talking to an individual his name's Chris the other individual his name's Chris the other individual his name's Chris the other day and he says guys I found your show day and he says guys I found your show day and he says guys I found your show last year last fall and I just I was last year last fall and I just I was last year last fall and I just I was just drifting I don't know what I was just drifting I don't know what I was just drifting I don't know what I was doing it's so obvious my net worth is doing it's so obvious my net worth is doing it's so obvious my net worth is tripled and there's no hook to this tripled and there's no hook to this tripled and there's no hook to this there's no upgraded mastermind class there's no upgraded mastermind class there's no upgraded mastermind class where now you're gonna get the real where now you're gonna get the real where now you're gonna get the real secrets it's just stupid simple just do secrets it's just stupid simple just do secrets it's just stupid simple just do it just do something each day to put it just do something each day to put it just do something each day to put yourself in this better situation okay yourself in this better situation okay yourself in this better situation okay so some people who are considering this so some people who are considering this so some people who are considering this sort of lower cost lifestyle might think sort of lower cost lifestyle might think sort of lower cost lifestyle might think up that's fine but then from now on all up that's fine but then from now on all up that's fine but then from now on all my vacations are we're gonna be at the my vacations are we're gonna be at the my vacations are we're gonna be at the tent at the koa koa but it was a long tent at the koa koa but it was a long tent at the koa koa but it was a long time ago I didn't know they were still time ago I didn't know they were still time ago I didn't know they were still out I actually loved camping but the out I actually loved camping but the out I actually loved camping but the point is that's not necessarily true and point is that's not necessarily true and point is that's not necessarily true and Brad you in particular are sort of this Brad you in particular are sort of this Brad you in particular are sort of this like ninja in terms of finding ways to like ninja in terms of finding ways to like ninja in terms of finding ways to literally see the world for free yeah literally see the world for free yeah literally see the world for free yeah it's been quite a journey for me I mean it's been quite a journey for me I mean it's been quite a journey for me I mean no pun intended no pun intended no pun intended my wife and I have earned I think at my wife and I have earned I think at my wife and I have earned I think at last count I was like . million miles last count I was like . million miles last count I was like . million miles and points by just being very and points by just being very and points by just being very intentional about our credit card intentional about our credit card intentional about our credit card spending so again kind of going through spending so again kind of going through spending so again kind of going through the entire file life its living a very the entire file life its living a very the entire file life its living a very optimized financial life and part of optimized financial life and part of optimized financial life and part of that for me personally and of course that for me personally and of course that for me personally and of course every person is different but for us we every person is different but for us we every person is different but for us we put all of our expenses on our credit put all of our expenses on our credit put all of our expenses on our credit cards we pay them off clearly on time cards we pay them off clearly on time cards we pay them off clearly on time and in full every single month that's and in full every single month that's and in full every single month that's the crucial part of this if you're not the crucial part of this if you're not the crucial part of this if you're not one of those people just please stop one of those people just please stop one of those people just please stop yeah we're done so everybody just leaned yeah we're done so everybody just leaned yeah we're done so everybody just leaned in to listen more Cassie in to listen more Cassie in to listen more Cassie nice yeah table stakes but what we do is nice yeah table stakes but what we do is nice yeah table stakes but what we do is we open up very targeted credit cards we open up very targeted credit cards we open up very targeted credit cards and earn these massive signup bonuses so and earn these massive signup bonuses so and earn these massive signup bonuses so in you'll see obviously different in you'll see obviously different in you'll see obviously different advertisements spend $, in the first advertisements spend $, in the first advertisements spend $, in the first three months and earn , American three months and earn , American three months and earn , American Airlines miles or somesuch well if you Airlines miles or somesuch well if you Airlines miles or somesuch well if you can redeem those for any type of can redeem those for any type of can redeem those for any type of reasonable value you're gonna get reasonable value you're gonna get reasonable value you're gonna get probably seven hundred to a thousand probably seven hundred to a thousand probably seven hundred to a thousand dollars in value from that one credit dollars in value from that one credit dollars in value from that one credit card sign up and that's just using your card sign up and that's just using your card sign up and that's just using your normal spending right in that case it normal spending right in that case it normal spending right in that case it was three thousand dollars in normal was three thousand dollars in normal was three thousand dollars in normal spending on this card instead of using spending on this card instead of using spending on this card instead of using the other card that you're getting % the other card that you're getting % the other card that you're getting % back right which would be $ here back right which would be $ here back right which would be $ here you're using this very targeted card and you're using this very targeted card and you're using this very targeted card and getting $, in free travel so now getting $, in free travel so now getting $, in free travel so now we've done that over a period of many we've done that over a period of many we've done that over a period of many years over probably seven years at this years over probably seven years at this years over probably seven years at this point and like I said earn this massive point and like I said earn this massive point and like I said earn this massive amount of points and miles that we've amount of points and miles that we've amount of points and miles that we've turned into real travel so my family of turned into real travel so my family of turned into real travel so my family of four and actually the four grandparents four and actually the four grandparents four and actually the four grandparents came with us to Disney World so instead came with us to Disney World so instead came with us to Disney World so instead of a costing four thousand dollars for of a costing four thousand dollars for of a costing four thousand dollars for approximately for the hotel which we approximately for the hotel which we approximately for the hotel which we stayed on site four round-trip flights stayed on site four round-trip flights stayed on site four round-trip flights and the park tickets we spent about a and the park tickets we spent about a and the park tickets we spent about a hundred and fifty dollars now on one hundred and fifty dollars now on one hundred and fifty dollars now on one trip yeah and talking about real travel trip yeah and talking about real travel trip yeah and talking about real travel going back to my story if you remember going back to my story if you remember going back to my story if you remember kind of that interaction I had with my kind of that interaction I had with my kind of that interaction I had with my employer where I said hey I want to go employer where I said hey I want to go employer where I said hey I want to go take my wife home to go visit her family take my wife home to go visit her family take my wife home to go visit her family this would this travel rewards had a this would this travel rewards had a this would this travel rewards had a profound impact on on my life for this profound impact on on my life for this profound impact on on my life for this very reason travel is expensive and when very reason travel is expensive and when very reason travel is expensive and when you marry someone from another country you marry someone from another country you marry someone from another country you're baking that in the family is you're baking that in the family is you're baking that in the family is important and travel is just going to important and travel is just going to important and travel is just going to happen and I promise we'll come back and happen and I promise we'll come back and happen and I promise we'll come back and visit you guys every couple years or so visit you guys every couple years or so visit you guys every couple years or so and pre Brad I was very happy with my and pre Brad I was very happy with my and pre Brad I was very happy with my .% cash back card where I would get .% cash back card where I would get .% cash back card where I would get you know maybe bucks bucks you know maybe bucks bucks you know maybe bucks bucks bucks to spender right bucks to spender right bucks to spender right bucks in cash rewards but post you bucks in cash rewards but post you bucks in cash rewards but post you know learning about this and how to know learning about this and how to know learning about this and how to implement and benefit from it we my wife implement and benefit from it we my wife implement and benefit from it we my wife and I it would have cost us probably and I it would have cost us probably and I it would have cost us probably close to again three thousand dollars to close to again three thousand dollars to close to again three thousand dollars to go visit her family for two weeks in go visit her family for two weeks in go visit her family for two weeks in Zimbabwe I didn't all of that using Zimbabwe I didn't all of that using Zimbabwe I didn't all of that using points and miles and I want to I want to points and miles and I want to I want to points and miles and I want to I want to emphasize how valuable does this cuz emphasize how valuable does this cuz emphasize how valuable does this cuz it's not just that I got the flight for it's not just that I got the flight for it's not just that I got the flight for free if you think about it in a past free if you think about it in a past free if you think about it in a past life I would have had to pay that same life I would have had to pay that same life I would have had to pay that same $, for those two air tickets and I $, for those two air tickets and I $, for those two air tickets and I would have paid for it with post tax would have paid for it with post tax would have paid for it with post tax dollars right cards and points are dollars right cards and points are dollars right cards and points are non-taxable the way they're structured non-taxable the way they're structured non-taxable the way they're structured basically you're taking spending that basically you're taking spending that basically you're taking spending that you were having to do with post tax you were having to do with post tax you were having to do with post tax dollars and you're benefiting from dollars and you're benefiting from dollars and you're benefiting from whatever marginal tax bracket you find whatever marginal tax bracket you find whatever marginal tax bracket you find yourself in and you're getting all of yourself in and you're getting all of yourself in and you're getting all of that not only are you not having to that not only are you not having to that not only are you not having to spend the money on it but then you're spend the money on it but then you're spend the money on it but then you're getting the travel with tax-free getting the travel with tax-free getting the travel with tax-free benefits I mean that is incredible and benefits I mean that is incredible and benefits I mean that is incredible and this is one of the things that allowed this is one of the things that allowed this is one of the things that allowed me to just take that line item that was me to just take that line item that was me to just take that line item that was travel in my budget and just take it travel in my budget and just take it travel in my budget and just take it completely out so this is about getting completely out so this is about getting completely out so this is about getting more for less what if we can get more more for less what if we can get more more for less what if we can get more housing for less because we you know housing for less because we you know housing for less because we you know because you're using a form of house because you're using a form of house because you're using a form of house acting what if we can get the same acting what if we can get the same acting what if we can get the same college experience for less what if we college experience for less what if we college experience for less what if we can go and get a better job than we can go and get a better job than we can go and get a better job than we could have just following the could have just following the could have just following the traditional college course and what if traditional college course and what if traditional college course and what if we can travel around the world for free we can travel around the world for free we can travel around the world for free it's been well documented that this is it's been well documented that this is it's been well documented that this is possible so obviously we'll give the possible so obviously we'll give the possible so obviously we'll give the caveat of courses that means that you caveat of courses that means that you caveat of courses that means that you pay the bills off of course because if pay the bills off of course because if pay the bills off of course because if you're not paying off you're maintaining you're not paying off you're maintaining you're not paying off you're maintaining the balance and all that stuff some the balance and all that stuff some the balance and all that stuff some people might have concerns about how it people might have concerns about how it people might have concerns about how it affects the credit score but you guys affects the credit score but you guys affects the credit score but you guys have been doing this for years and I'm have been doing this for years and I'm have been doing this for years and I'm gonna bet that you guys have pretty good gonna bet that you guys have pretty good gonna bet that you guys have pretty good credit scores yeah I mean my credit credit scores yeah I mean my credit credit scores yeah I mean my credit score I think started like a and the score I think started like a and the score I think started like a and the last time I checked within a month it last time I checked within a month it last time I checked within a month it was so yeah I mean I have basically was so yeah I mean I have basically was so yeah I mean I have basically I would say everyone who's hearing this I would say everyone who's hearing this I would say everyone who's hearing this you need to look at your own life and you need to look at your own life and you need to look at your own life and figure out what works for you my wife figure out what works for you my wife figure out what works for you my wife and I again we had these wonderful and I again we had these wonderful and I again we had these wonderful credit scores we said okay this sounds credit scores we said okay this sounds credit scores we said okay this sounds good but it's a trust but verify type good but it's a trust but verify type good but it's a trust but verify type situation right we're gonna dip our toes situation right we're gonna dip our toes situation right we're gonna dip our toes and see if this works we have that and see if this works we have that and see if this works we have that margin where even if our credit scores margin where even if our credit scores margin where even if our credit scores plummeted right points nothing bad plummeted right points nothing bad plummeted right points nothing bad would have happened we had home we would have happened we had home we would have happened we had home we weren't gonna buy anything on credit so weren't gonna buy anything on credit so weren't gonna buy anything on credit so this was there was no risk here for us this was there was no risk here for us this was there was no risk here for us at all but I mean I've worked with many at all but I mean I've worked with many at all but I mean I've worked with many many thousands of people who have been many thousands of people who have been many thousands of people who have been using this similar strategy and I've yet using this similar strategy and I've yet using this similar strategy and I've yet to hear one person whose credit score to hear one person whose credit score to hear one person whose credit score plummeted so I think I can speak again plummeted so I think I can speak again plummeted so I think I can speak again anecdotally but with knowing tens of anecdotally but with knowing tens of anecdotally but with knowing tens of thousands of people who have done this thousands of people who have done this thousands of people who have done this that it really doesn't impact you all that it really doesn't impact you all that it really doesn't impact you all that much so but you are gonna see just that much so but you are gonna see just that much so but you are gonna see just in your normal in your normal in your normal of life you're gonna see intra month of life you're gonna see intra month of life you're gonna see intra month swings right right before you pay off swings right right before you pay off swings right right before you pay off your credit card your utilization is your credit card your utilization is your credit card your utilization is gonna be slightly higher than the day gonna be slightly higher than the day gonna be slightly higher than the day after you pay it off right so that after you pay it off right so that after you pay it off right so that regardless of what credit card you're regardless of what credit card you're regardless of what credit card you're using your credit score fluctuates so I using your credit score fluctuates so I using your credit score fluctuates so I think you'll probably see a point think you'll probably see a point think you'll probably see a point plus or minus but if that's within that plus or minus but if that's within that plus or minus but if that's within that margin of safety for you then I see no margin of safety for you then I see no margin of safety for you then I see no down sentence level of frequency do you down sentence level of frequency do you down sentence level of frequency do you find that you guys are opening and find that you guys are opening and find that you guys are opening and closing new credit cards we both I closing new credit cards we both I closing new credit cards we both I believe try to keep it just as simple as believe try to keep it just as simple as believe try to keep it just as simple as possible to go back to Brad's point I possible to go back to Brad's point I possible to go back to Brad's point I think it kind of really helps to think it kind of really helps to think it kind of really helps to understand just what credit card understand just what credit card understand just what credit card companies are actually looked at that's companies are actually looked at that's companies are actually looked at that's been publicly documented and there may been publicly documented and there may been publicly documented and there may be some other factors but they look at be some other factors but they look at be some other factors but they look at utilization so if you have a card with a utilization so if you have a card with a utilization so if you have a card with a you know ten thousand dollar limit and you know ten thousand dollar limit and you know ten thousand dollar limit and you are only using a hundred bucks you are only using a hundred bucks you are only using a hundred bucks you're not really utilizing your card you're not really utilizing your card you're not really utilizing your card that's a positive thing the age of your that's a positive thing the age of your that's a positive thing the age of your credit if you have a card the open ten credit if you have a card the open ten credit if you have a card the open ten years ago and you still have it or you years ago and you still have it or you years ago and you still have it or you have a student loan you've had forever have a student loan you've had forever have a student loan you've had forever that that's a positive and there's a few that that's a positive and there's a few that that's a positive and there's a few other mark derogatory marks so like for other mark derogatory marks so like for other mark derogatory marks so like for instance you don't pay your bills on instance you don't pay your bills on instance you don't pay your bills on time that's gonna be a really really bad time that's gonna be a really really bad time that's gonna be a really really bad name if that's what would hurt you have name if that's what would hurt you have name if that's what would hurt you have anything so like he said table stakes anything so like he said table stakes anything so like he said table stakes for this is Nate paying your bills on for this is Nate paying your bills on for this is Nate paying your bills on time and in full to your other question time and in full to your other question time and in full to your other question I basically will open a car and I will I basically will open a car and I will I basically will open a car and I will then just put all of my normal spending then just put all of my normal spending then just put all of my normal spending on that card until we've reached you on that card until we've reached you on that card until we've reached you know this certain minimum spend and know this certain minimum spend and know this certain minimum spend and gotten the reward and then potentially gotten the reward and then potentially gotten the reward and then potentially maybe my wife will open an r usually if maybe my wife will open an r usually if maybe my wife will open an r usually if it's going to take us a couple months to it's going to take us a couple months to it's going to take us a couple months to get through a minimum spend on a car and get through a minimum spend on a car and get through a minimum spend on a car and so we're there are people I'm sure that so we're there are people I'm sure that so we're there are people I'm sure that are incredibly aggressive with this I'm are incredibly aggressive with this I'm are incredibly aggressive with this I'm not trying to have million points not trying to have million points not trying to have million points this is not but this is a way for me to this is not but this is a way for me to this is not but this is a way for me to replace spending that I was already replace spending that I was already replace spending that I was already making putting it regular stuff on a making putting it regular stuff on a making putting it regular stuff on a card and then using that to give my card and then using that to give my card and then using that to give my family a wonderful trip once or twice a family a wonderful trip once or twice a family a wonderful trip once or twice a year and we're just basically have this year and we're just basically have this year and we're just basically have this extra stash of travel that we can use extra stash of travel that we can use extra stash of travel that we can use when we need it maybe one year we use when we need it maybe one year we use when we need it maybe one year we use more maybe one year we use less but it more maybe one year we use less but it more maybe one year we use less but it offers us freedom and flexibility where offers us freedom and flexibility where offers us freedom and flexibility where in the past maybe I was looking at this in the past maybe I was looking at this in the past maybe I was looking at this from this one-dimensional place I'm from this one-dimensional place I'm from this one-dimensional place I'm sorry honey we can't but go visit your sorry honey we can't but go visit your sorry honey we can't but go visit your family because we're paying down our family because we're paying down our family because we're paying down our student loans once again for our student loans once again for our student loans once again for our listeners who want to learn more you listeners who want to learn more you listeners who want to learn more you guys are at choose five dot-com and then guys are at choose five dot-com and then guys are at choose five dot-com and then your podcast if they just go to iTunes your podcast if they just go to iTunes your podcast if they just go to iTunes and search choose Phi or they go and and search choose Phi or they go and and search choose Phi or they go and choose a fire we publish every Monday choose a fire we publish every Monday choose a fire we publish every Monday and Friday and there is an episode on and Friday and there is an episode on and Friday and there is an episode on our podcast where we really went into our podcast where we really went into our podcast where we really went into depth on kind of what this would look depth on kind of what this would look depth on kind of what this would look like for an individual that wants to get like for an individual that wants to get like for an individual that wants to get started with this it's episode nine of started with this it's episode nine of started with this it's episode nine of our podcast I think it's actually our our podcast I think it's actually our our podcast I think it's actually our most downloaded episode of all time so most downloaded episode of all time so most downloaded episode of all time so it'd be a wonderful place to start if it'd be a wonderful place to start if it'd be a wonderful place to start if you're saying hey that sounds really you're saying hey that sounds really you're saying hey that sounds really cool but I think I need a little bit cool but I think I need a little bit cool but I think I need a little bit more information before I really dive more information before I really dive more information before I really dive into that go check out episode of our into that go check out episode of our into that go check out episode of our podcast you WEBVTT Kind: captions Language: en welcome to my crib caboose edition come welcome to my crib caboose edition come welcome to my crib caboose edition come on in my name is bianca di valerio i'm my name is bianca di valerio i'm my name is bianca di valerio i'm financial independent and i live in a financial independent and i live in a financial independent and i live in a caboose in lake geneva wisconsin caboose in lake geneva wisconsin caboose in lake geneva wisconsin [Music] [Music] [Music] when i was younger i used to come up to when i was younger i used to come up to when i was younger i used to come up to la geneva and about years ago i found la geneva and about years ago i found la geneva and about years ago i found this line of cabooses it used to be a this line of cabooses it used to be a this line of cabooses it used to be a hotel hotel hotel i always wanted one and two years ago i i always wanted one and two years ago i i always wanted one and two years ago i bought one over the last year my finances haven't over the last year my finances haven't over the last year my finances haven't changed that much changed that much changed that much obviously when the market dropped that obviously when the market dropped that obviously when the market dropped that was a little scary was a little scary was a little scary you know i am nudify the numbers concern you know i am nudify the numbers concern you know i am nudify the numbers concern me a little bit but like most people say stay the course but like most people say stay the course but like most people say stay the course and you don't have to worry much and you don't have to worry much and you don't have to worry much obviously the market's gone back up nice the care zach had a stipulation at nice the care zach had a stipulation at nice the care zach had a stipulation at where you could take where you could take where you could take money out of your k without having to money out of your k without having to money out of your k without having to pay the early withdrawal penalty which pay the early withdrawal penalty which pay the early withdrawal penalty which is is is and because my money is mostly in my and because my money is mostly in my and because my money is mostly in my k it was a great opportunity for me k it was a great opportunity for me k it was a great opportunity for me to take to take to take about out in cash and they will about out in cash and they will about out in cash and they will spread the taxes across spread the taxes across spread the taxes across three years did you see that drop because i'm in a did you see that drop because i'm in a did you see that drop because i'm in a low tax bracket now since i'm not low tax bracket now since i'm not low tax bracket now since i'm not working working working it actually will turn out pretty good it actually will turn out pretty good it actually will turn out pretty good that money is that money is that money is sitting in cash right now but that's sitting in cash right now but that's sitting in cash right now but that's because i'm hoping to buy a house soon because i'm hoping to buy a house soon because i'm hoping to buy a house soon [Music] i have to say my spending has changed a i have to say my spending has changed a i have to say my spending has changed a little bit there are little bit there are little bit there are more things i'm wanting i bought patio more things i'm wanting i bought patio more things i'm wanting i bought patio furniture furniture furniture many cushions for some reason i bought a many cushions for some reason i bought a many cushions for some reason i bought a paddle board and we bought the disc for paddle board and we bought the disc for paddle board and we bought the disc for disc you know all these things disc you know all these things disc you know all these things i normally wouldn't buy for one i live i normally wouldn't buy for one i live i normally wouldn't buy for one i live tiny i have nowhere to store this stuff tiny i have nowhere to store this stuff tiny i have nowhere to store this stuff but also because they're extra things but also because they're extra things but also because they're extra things that that that as a minimalist i don't want extra as a minimalist i don't want extra as a minimalist i don't want extra things but things but things but you start to ease up a little bit on the you start to ease up a little bit on the you start to ease up a little bit on the financial part of it when you notice financial part of it when you notice financial part of it when you notice that these purchases you're making now that these purchases you're making now that these purchases you're making now that you've got this nest egg that you've got this nest egg that you've got this nest egg aren't digging in as much as when i was aren't digging in as much as when i was aren't digging in as much as when i was restarting in restarting in restarting in and i didn't have any money my feelings about fire are still pretty my feelings about fire are still pretty my feelings about fire are still pretty much the same i mean i'm so happy i much the same i mean i'm so happy i much the same i mean i'm so happy i stumbled upon stumbled upon stumbled upon the movement i think is what they're the movement i think is what they're the movement i think is what they're calling it but calling it but calling it but because it just gave me the math i because it just gave me the math i because it just gave me the math i needed to kind of set needed to kind of set needed to kind of set my arrow in a direction my arrow in a direction my arrow in a direction it's easy to look at me now and say it's easy to look at me now and say it's easy to look at me now and say well she's so lucky because this is this well she's so lucky because this is this well she's so lucky because this is this it it it it really i don't know how much luck has it really i don't know how much luck has it really i don't know how much luck has to do with it but i know persistence to do with it but i know persistence to do with it but i know persistence does i know resilience does does i know resilience does does i know resilience does i don't have kids i live in a small i don't have kids i live in a small i don't have kids i live in a small house but i also don't have a college house but i also don't have a college house but i also don't have a college degree degree degree i also don't make six figures i also i also don't make six figures i also i also don't make six figures i also don't have a spouse who makes money don't have a spouse who makes money don't have a spouse who makes money you know there's so many different you know there's so many different you know there's so many different elements to everybody's life elements to everybody's life elements to everybody's life but it's been said many times that all but it's been said many times that all but it's been said many times that all the stuff around you the stuff around you the stuff around you used to be money it used to be your time used to be money it used to be your time used to be money it used to be your time that you traded for money to buy this that you traded for money to buy this that you traded for money to buy this crap that now you don't even look at crap that now you don't even look at crap that now you don't even look at i don't need those things you know i'm i don't need those things you know i'm i don't need those things you know i'm very happy here because very happy here because very happy here because i focus on what i really enjoy while i'm i focus on what i really enjoy while i'm i focus on what i really enjoy while i'm here here here and thankfully for me what i enjoy and thankfully for me what i enjoy and thankfully for me what i enjoy doesn't take a lot of money you WEBVTT Kind: captions Language: en hey everyone in this video we're meeting hey everyone in this video we're meeting hey everyone in this video we're meeting Tim a man from Regina Canada who found a Tim a man from Regina Canada who found a Tim a man from Regina Canada who found a way to retire before his th birthday way to retire before his th birthday way to retire before his th birthday he's married with two kids and after he's married with two kids and after he's married with two kids and after eleven years of planning and working eleven years of planning and working eleven years of planning and working towards their goal he retired from towards their goal he retired from towards their goal he retired from engineering two years ago engineering two years ago engineering two years ago and his wife plans to retire from her and his wife plans to retire from her and his wife plans to retire from her childcare career in just a few years childcare career in just a few years childcare career in just a few years early retirement or fire is a financial early retirement or fire is a financial early retirement or fire is a financial strategy that involves drastically strategy that involves drastically strategy that involves drastically reducing your spending saving a large reducing your spending saving a large reducing your spending saving a large percentage of your income and then percentage of your income and then percentage of your income and then investing the savings so that you can investing the savings so that you can investing the savings so that you can afford to retire early this lifestyle is afford to retire early this lifestyle is afford to retire early this lifestyle is a little bit extreme and it isn't a little bit extreme and it isn't a little bit extreme and it isn't accessible to everyone but we think the accessible to everyone but we think the accessible to everyone but we think the basic financial concepts could be basic financial concepts could be basic financial concepts could be helpful for a lot of people so let's go helpful for a lot of people so let's go helpful for a lot of people so let's go meet up with Tim to find out how his meet up with Tim to find out how his meet up with Tim to find out how his family achieved early retirement and family achieved early retirement and family achieved early retirement and what they're teaching their kids about what they're teaching their kids about what they're teaching their kids about money I retired back in and it was money I retired back in and it was money I retired back in and it was six months before my th birthday I six months before my th birthday I six months before my th birthday I came up cause the idea of early came up cause the idea of early came up cause the idea of early retirement around or so and then retirement around or so and then retirement around or so and then realized Mike hey this might be possible realized Mike hey this might be possible realized Mike hey this might be possible and so we started saving some money and and so we started saving some money and and so we started saving some money and then got a little bit better cutting her then got a little bit better cutting her then got a little bit better cutting her costs figuring out what matters to us costs figuring out what matters to us costs figuring out what matters to us and spending appropriately but overall and spending appropriately but overall and spending appropriately but overall it took us about years to actually it took us about years to actually it took us about years to actually save up the money to get towards early save up the money to get towards early save up the money to get towards early retirement when we started to do this we retirement when we started to do this we retirement when we started to do this we were both kind of post University up to were both kind of post University up to were both kind of post University up to do or student debts owed money on the do or student debts owed money on the do or student debts owed money on the carbon block we weren't ridiculously in carbon block we weren't ridiculously in carbon block we weren't ridiculously in debt we were a pretty good financial debt we were a pretty good financial debt we were a pretty good financial situation in broad strokes but the situation in broad strokes but the situation in broad strokes but the reality is we did still have student reality is we did still have student reality is we did still have student loan debt leftover and other issues like loan debt leftover and other issues like loan debt leftover and other issues like that so the reality is yeah first step that so the reality is yeah first step that so the reality is yeah first step was pay off existing debt and then it was pay off existing debt and then it was pay off existing debt and then it just got easier - from there we took a just got easier - from there we took a just got easier - from there we took a look at how our spending was going and look at how our spending was going and look at how our spending was going and then kind of went okay what matters the then kind of went okay what matters the then kind of went okay what matters the most to us and then focused on okay how most to us and then focused on okay how most to us and then focused on okay how do I reduce stuff I don't care about so do I reduce stuff I don't care about so do I reduce stuff I don't care about so you look at for example at your power you look at for example at your power you look at for example at your power bill and go okay my power bill never bill and go okay my power bill never bill and go okay my power bill never brought me any joy in life how do we brought me any joy in life how do we brought me any joy in life how do we reduce that and then oh if I change on reduce that and then oh if I change on reduce that and then oh if I change on my lightbulbs from incandescent to LEDs my lightbulbs from incandescent to LEDs my lightbulbs from incandescent to LEDs oh look I save a lot of money great so oh look I save a lot of money great so oh look I save a lot of money great so we did that and we just snowballed that we did that and we just snowballed that we did that and we just snowballed that effect on other bills like looking at effect on other bills like looking at effect on other bills like looking at our grocery bill going do we need to buy our grocery bill going do we need to buy our grocery bill going do we need to buy brand-name X okay let's try to a generic brand-name X okay let's try to a generic brand-name X okay let's try to a generic version do I care or does it make a version do I care or does it make a version do I care or does it make a difference does it taste the same the difference does it taste the same the difference does it taste the same the other thing we also learned too is other thing we also learned too is other thing we also learned too is make a lot of things from scratch and make a lot of things from scratch and make a lot of things from scratch and some days we've laughed because we're some days we've laughed because we're some days we've laughed because we're like oh look we're saving money but it like oh look we're saving money but it like oh look we're saving money but it tastes better so when people talk about tastes better so when people talk about tastes better so when people talk about cutting back it's not always a negative cutting back it's not always a negative cutting back it's not always a negative it's just finding out what matters to it's just finding out what matters to it's just finding out what matters to you and then finding out the best way you and then finding out the best way you and then finding out the best way for your family to make things work so for your family to make things work so for your family to make things work so we eat out only a couple times a year so we eat out only a couple times a year so we eat out only a couple times a year so typically our anniversary in birthdays typically our anniversary in birthdays typically our anniversary in birthdays and the occasional other special event and the occasional other special event and the occasional other special event but generally speaking we don't eat out but generally speaking we don't eat out but generally speaking we don't eat out a lot it's a choice we've made to make a lot it's a choice we've made to make a lot it's a choice we've made to make it special so when we do do what we it special so when we do do what we it special so when we do do what we really enjoy it and so our spending is really enjoy it and so our spending is really enjoy it and so our spending is very focused on the things that matter very focused on the things that matter very focused on the things that matter to us and we have our default of not to us and we have our default of not to us and we have our default of not spending money on things the other spending money on things the other spending money on things the other little trick that really helps me little trick that really helps me little trick that really helps me through the days is one gaited phrase through the days is one gaited phrase through the days is one gaited phrase for the problem your first solution for the problem your first solution for the problem your first solution should not be I'm gonna go spend money should not be I'm gonna go spend money should not be I'm gonna go spend money to solve it he's gonna go how do I solve to solve it he's gonna go how do I solve to solve it he's gonna go how do I solve this what I have at home what can I make this what I have at home what can I make this what I have at home what can I make do with do I really need this thing here do with do I really need this thing here do with do I really need this thing here for example I used to have a bread maker for example I used to have a bread maker for example I used to have a bread maker it broke and then I decided well I don't it broke and then I decided well I don't it broke and then I decided well I don't use it a whole lot so why am i bothering use it a whole lot so why am i bothering use it a whole lot so why am i bothering with it so I'll just when I make dough I with it so I'll just when I make dough I with it so I'll just when I make dough I make it with my hands it's a little more make it with my hands it's a little more make it with my hands it's a little more work but I don't do that often so it work but I don't do that often so it work but I don't do that often so it works and what other thing we did - that works and what other thing we did - that works and what other thing we did - that was really helpful is we've prayed off was really helpful is we've prayed off was really helpful is we've prayed off our mortgage and the car loans all in our mortgage and the car loans all in our mortgage and the car loans all in advance so we walked in retirement with advance so we walked in retirement with advance so we walked in retirement with lots of assets and utterly lots of assets and utterly lots of assets and utterly zero debt where you live matters housing zero debt where you live matters housing zero debt where you live matters housing costs and Canada vastly different all costs and Canada vastly different all costs and Canada vastly different all over the place Toronto Vancouver are off over the place Toronto Vancouver are off over the place Toronto Vancouver are off the charts in the same costs there's the charts in the same costs there's the charts in the same costs there's lots of the country that are not lots of the country that are not lots of the country that are not Vancouver and Toronto that give you Vancouver and Toronto that give you Vancouver and Toronto that give you other options like Regina the average other options like Regina the average other options like Regina the average housing cost is only thousand or housing cost is only thousand or housing cost is only thousand or something like that so it's a fraction something like that so it's a fraction something like that so it's a fraction of other locations so yes I live in of other locations so yes I live in of other locations so yes I live in Regina there's an upside to that too a lot of our money is invested in very a lot of our money is invested in very a lot of our money is invested in very basic straightforward strategies I want basic straightforward strategies I want basic straightforward strategies I want something that's simple that I don't something that's simple that I don't something that's simple that I don't have to expend a lot of time on so we have to expend a lot of time on so we have to expend a lot of time on so we invested in exchange-traded funds that invested in exchange-traded funds that invested in exchange-traded funds that mirror major indexes as to worries the mirror major indexes as to worries the mirror major indexes as to worries the reality is yeah I still worry I've reality is yeah I still worry I've reality is yeah I still worry I've trained myself not to check the stock trained myself not to check the stock trained myself not to check the stock market because the reality a lot of it market because the reality a lot of it market because the reality a lot of it is background noise it goes up it goes is background noise it goes up it goes is background noise it goes up it goes down it goes up because go ahead I'm down it goes up because go ahead I'm down it goes up because go ahead I'm worried about what does it do over a worried about what does it do over a worried about what does it do over a year not a date as I initially when year not a date as I initially when year not a date as I initially when you're switching to living off the stock you're switching to living off the stock you're switching to living off the stock market those wild gyrations can feel market those wild gyrations can feel market those wild gyrations can feel really horrifying so I think a little really horrifying so I think a little really horrifying so I think a little bit more cushion would have been helpful bit more cushion would have been helpful bit more cushion would have been helpful just psychologically more than anything just psychologically more than anything just psychologically more than anything just sleep at night factor the other just sleep at night factor the other just sleep at night factor the other downside I would say is the weird downside I would say is the weird downside I would say is the weird conversations with people and they're conversations with people and they're conversations with people and they're like you're really tired like you're really tired like you're really tired but you can't be retired you're too but you can't be retired you're too but you can't be retired you're too young so I actually started changing how young so I actually started changing how young so I actually started changing how I represent a bit and said oh I retired I represent a bit and said oh I retired I represent a bit and said oh I retired from an engineering career to pursue a from an engineering career to pursue a from an engineering career to pursue a writing career like oh okay then talk writing career like oh okay then talk writing career like oh okay then talk about a new X book project which is a about a new X book project which is a about a new X book project which is a lot easier and fun I actually started lot easier and fun I actually started lot easier and fun I actually started the blog of my early retirement journey the blog of my early retirement journey the blog of my early retirement journey back in so you can literally see back in so you can literally see back in so you can literally see the entire journey through my doubts my the entire journey through my doubts my the entire journey through my doubts my learning me not understanding how the learning me not understanding how the learning me not understanding how the math worked mixing it several times and math worked mixing it several times and math worked mixing it several times and doubting situations and stuff like that doubting situations and stuff like that doubting situations and stuff like that and then learning more as I go I also and then learning more as I go I also and then learning more as I go I also wrote a book called three at forty five wrote a book called three at forty five wrote a book called three at forty five I thought there was a absence in the I thought there was a absence in the I thought there was a absence in the world of discussion about yes retiring world of discussion about yes retiring world of discussion about yes retiring early is good but if you're not happy early is good but if you're not happy early is good but if you're not happy while being retired what's the point so while being retired what's the point so while being retired what's the point so I wanted to marry this together and talk I wanted to marry this together and talk I wanted to marry this together and talk about being happy and early retired at about being happy and early retired at about being happy and early retired at the same time the first year is actually the same time the first year is actually the same time the first year is actually problematic I'll say to just about problematic I'll say to just about problematic I'll say to just about anyone who's ever done a major lifestyle anyone who's ever done a major lifestyle anyone who's ever done a major lifestyle change it's the same thing and it's change it's the same thing and it's change it's the same thing and it's really confusing you go through a lot of really confusing you go through a lot of really confusing you go through a lot of emotions and it's deprogramming yourself emotions and it's deprogramming yourself emotions and it's deprogramming yourself to realize you don't have to do as much to realize you don't have to do as much to realize you don't have to do as much as you used to do and to do other things as you used to do and to do other things as you used to do and to do other things you enjoy so like one of the things that you enjoy so like one of the things that you enjoy so like one of the things that you used to do early want to help with you used to do early want to help with you used to do early want to help with that was I created to-do lists but that was I created to-do lists but that was I created to-do lists but included fun items on though so it might included fun items on though so it might included fun items on though so it might to-do lists were an owners thing but to-do lists were an owners thing but to-do lists were an owners thing but rather a tool to help me accomplish what rather a tool to help me accomplish what rather a tool to help me accomplish what I want to get done in a week for example I want to get done in a week for example I want to get done in a week for example I've been making my own wine for a I've been making my own wine for a I've been making my own wine for a number of years but then the last couple number of years but then the last couple number of years but then the last couple of years expended more into beer making of years expended more into beer making of years expended more into beer making other hobbies have gotten into is I used other hobbies have gotten into is I used other hobbies have gotten into is I used to play Dungeons and Dragons to play Dungeons and Dragons to play Dungeons and Dragons and so I've reached gathered this hobby and so I've reached gathered this hobby and so I've reached gathered this hobby and even introduced my kids to it which and even introduced my kids to it which and even introduced my kids to it which spawned this whole secondary hobby of spawned this whole secondary hobby of spawned this whole secondary hobby of now making little pieces of terrain out now making little pieces of terrain out now making little pieces of terrain out of foam and paint and stuff and I enjoy of foam and paint and stuff and I enjoy of foam and paint and stuff and I enjoy the artistic process of making pretty the artistic process of making pretty the artistic process of making pretty looking rocks I've been married for looking rocks I've been married for looking rocks I've been married for years and I've got two boys ones the years and I've got two boys ones the years and I've got two boys ones the other ones and so we're very busy other ones and so we're very busy other ones and so we're very busy with them a lot of the things we've with them a lot of the things we've with them a lot of the things we've taught the kids are about money have taught the kids are about money have taught the kids are about money have been about focusing on the problems we been about focusing on the problems we been about focusing on the problems we see adults having issues with like see adults having issues with like see adults having issues with like delayed gratification be able to save up delayed gratification be able to save up delayed gratification be able to save up and then spend the money on things and then spend the money on things and then spend the money on things rather than going to debt we gave them rather than going to debt we gave them rather than going to debt we gave them allowance very early on and then we let allowance very early on and then we let allowance very early on and then we let them spend it on whatever they wanted so them spend it on whatever they wanted so them spend it on whatever they wanted so when a five-year-old has allowance kids when a five-year-old has allowance kids when a five-year-old has allowance kids everybody spends it on I want a hug everybody spends it on I want a hug everybody spends it on I want a hug wheel car every time we go to the store wheel car every time we go to the store wheel car every time we go to the store once a week ok yeah and we had a lot of once a week ok yeah and we had a lot of once a week ok yeah and we had a lot of hot well cars like a lot and eventually hot well cars like a lot and eventually hot well cars like a lot and eventually he's like I want this well that costs $ he's like I want this well that costs $ he's like I want this well that costs $ you have one dollar would you like to you have one dollar would you like to you have one dollar would you like to save up for that well let me explain the save up for that well let me explain the save up for that well let me explain the idea of well if you don't buy the hot idea of well if you don't buy the hot idea of well if you don't buy the hot wheel car now in the third week you can wheel car now in the third week you can wheel car now in the third week you can afford the big thing you want okay and afford the big thing you want okay and afford the big thing you want okay and so you did it and so we trained them so you did it and so we trained them so you did it and so we trained them very young on those very core very young on those very core very young on those very core psychological tricks about spending and psychological tricks about spending and psychological tricks about spending and so now we have two kids that are default so now we have two kids that are default so now we have two kids that are default ly saved money without anybody knowing ly saved money without anybody knowing ly saved money without anybody knowing what they're saving for well one thing what they're saving for well one thing what they're saving for well one thing that a friend told me like way back when that a friend told me like way back when that a friend told me like way back when we were pregnant with our first kid he's we were pregnant with our first kid he's we were pregnant with our first kid he's like kids are constant drain on you what like kids are constant drain on you what like kids are constant drain on you what you spend it on changes as they age so you spend it on changes as they age so you spend it on changes as they age so you start with diapers and then it's you start with diapers and then it's you start with diapers and then it's more clothes and then it's more school more clothes and then it's more school more clothes and then it's more school supplies and then it keeps changing as supplies and then it keeps changing as supplies and then it keeps changing as you go along but the reality is the you go along but the reality is the you go along but the reality is the drains constant get used to it drains constant get used to it drains constant get used to it ironically really great advice for ironically really great advice for ironically really great advice for racing kids because you realize like we racing kids because you realize like we racing kids because you realize like we took out cash every month for the kids took out cash every month for the kids took out cash every month for the kids and put it aside so someone's you'd and put it aside so someone's you'd and put it aside so someone's you'd spend less and others way more but the spend less and others way more but the spend less and others way more but the reality is over the course of the year reality is over the course of the year reality is over the course of the year it averages out to the same amount of it averages out to the same amount of it averages out to the same amount of money so my wife set that up and very money so my wife set that up and very money so my wife set that up and very early on that she managers that cash early on that she managers that cash early on that she managers that cash flow so she knows okay one of the kids flow so she knows okay one of the kids flow so she knows okay one of the kids needs winter boots coming up this year needs winter boots coming up this year needs winter boots coming up this year so she's putting money aside for so she's putting money aside for so she's putting money aside for September and October September and October September and October because we know those big Bill's coming because we know those big Bill's coming because we know those big Bill's coming the other thing we did too is we've the other thing we did too is we've the other thing we did too is we've saved registered education savings plans saved registered education savings plans saved registered education savings plans for them for college and university I for them for college and university I for them for college and university I had that fully filled before leavings had that fully filled before leavings had that fully filled before leavings so that's a really handy thing for us to so that's a really handy thing for us to so that's a really handy thing for us to have done is pre saved all this money have done is pre saved all this money have done is pre saved all this money and put her and put her and put her side so now that it can just keep side so now that it can just keep side so now that it can just keep growing in interest and so when they we growing in interest and so when they we growing in interest and so when they we do want to go to university or something do want to go to university or something do want to go to university or something else we can take the money out and use else we can take the money out and use else we can take the money out and use the front of that what we had decided is the front of that what we had decided is the front of that what we had decided is what I was talking to my wife about what I was talking to my wife about what I was talking to my wife about asking what she wanted to do because asking what she wanted to do because asking what she wanted to do because this is a major part of this whole this is a major part of this whole this is a major part of this whole equation as well do you want to leave equation as well do you want to leave equation as well do you want to leave work same time I do are you happy well work same time I do are you happy well work same time I do are you happy well here you doing and she decided that she here you doing and she decided that she here you doing and she decided that she was very happy at her job want to was very happy at her job want to was very happy at her job want to continue doing it and so what we decided continue doing it and so what we decided continue doing it and so what we decided is okay we're going to depend so partly is okay we're going to depend so partly is okay we're going to depend so partly on your income for a few years so I on your income for a few years so I on your income for a few years so I built them to the plan assuming she was built them to the plan assuming she was built them to the plan assuming she was gonna work for a few more years which gonna work for a few more years which gonna work for a few more years which helps offset some of our spending and it helps offset some of our spending and it helps offset some of our spending and it worked out really great for us because worked out really great for us because worked out really great for us because then it gives us this extra cushion then it gives us this extra cushion then it gives us this extra cushion beyond what we'd saved going okay if beyond what we'd saved going okay if beyond what we'd saved going okay if things go horribly wrong we still have things go horribly wrong we still have things go horribly wrong we still have this extra income coming in which is this extra income coming in which is this extra income coming in which is gonna offset problems what you work out gonna offset problems what you work out gonna offset problems what you work out really well cuz about oh the year into really well cuz about oh the year into really well cuz about oh the year into it the stock market manager did a major it the stock market manager did a major it the stock market manager did a major decline and I had this little did I do decline and I had this little did I do decline and I had this little did I do the right thing because this could work the right thing because this could work the right thing because this could work out and it ironically it worked out out and it ironically it worked out out and it ironically it worked out fabulously in the long run it's just fabulously in the long run it's just fabulously in the long run it's just it's hard when your income is coming it's hard when your income is coming it's hard when your income is coming from your investments to see them drop from your investments to see them drop from your investments to see them drop so suddenly and to tell you're in that so suddenly and to tell you're in that so suddenly and to tell you're in that situation you really don't know how situation you really don't know how situation you really don't know how you're going to react emotionally so I you're going to react emotionally so I you're going to react emotionally so I written out a plan in advance of if the written out a plan in advance of if the written out a plan in advance of if the stock market declines this much you may stock market declines this much you may stock market declines this much you may do the following things otherwise it do the following things otherwise it do the following things otherwise it still sit on your hands we have to stay still sit on your hands we have to stay still sit on your hands we have to stay away from the mouse do not click trade away from the mouse do not click trade away from the mouse do not click trade great idea by the way I highly recommend great idea by the way I highly recommend great idea by the way I highly recommend you write out an investment plan about you write out an investment plan about you write out an investment plan about this will you're calm and rational this will you're calm and rational this will you're calm and rational because when you're emotional and things because when you're emotional and things because when you're emotional and things are going horribly wrong you're like it are going horribly wrong you're like it are going horribly wrong you're like it gives you a what point do I open Plan B gives you a what point do I open Plan B gives you a what point do I open Plan B or a parachute and having written that or a parachute and having written that or a parachute and having written that out it kept you've already thought about out it kept you've already thought about out it kept you've already thought about what okay I can take a loan if I need to what okay I can take a loan if I need to what okay I can take a loan if I need to temporarily I can get at your part-time temporarily I can get at your part-time temporarily I can get at your part-time job I can and you rationally think about job I can and you rationally think about job I can and you rationally think about things so when things do go bad you're things so when things do go bad you're things so when things do go bad you're actually looking at your notes going actually looking at your notes going actually looking at your notes going alright I'm okay I have this option and alright I'm okay I have this option and alright I'm okay I have this option and this option and this option so one of this option and this option so one of this option and this option so one of the options for example a long-term we the options for example a long-term we the options for example a long-term we always plan is we have a housewarming always plan is we have a housewarming always plan is we have a housewarming boyfriends a daycare which ends up being boyfriends a daycare which ends up being boyfriends a daycare which ends up being quite a bit of space we know we'll quite a bit of space we know we'll quite a bit of space we know we'll probably downsize in the long term probably downsize in the long term probably downsize in the long term that's not built on the plan so any that's not built on the plan so any that's not built on the plan so any savings I have for lower taxes or water savings I have for lower taxes or water savings I have for lower taxes or water bill etc and less money spent on the bill etc and less money spent on the bill etc and less money spent on the house and any extra income from that house and any extra income from that house and any extra income from that sale we'd be able to use to offset any sale we'd be able to use to offset any sale we'd be able to use to offset any losses so we have backup plans in case losses so we have backup plans in case losses so we have backup plans in case things go wrong because like gravity is things go wrong because like gravity is things go wrong because like gravity is well life never according to plan well life never according to plan well life never according to plan [Music] [Music] [Music] living in Canada is great for the living in Canada is great for the living in Canada is great for the purposes of our tax dollars pay our purposes of our tax dollars pay our purposes of our tax dollars pay our health care costs in advance the reality health care costs in advance the reality health care costs in advance the reality is I've massively over contributed to is I've massively over contributed to is I've massively over contributed to that system so basic health care costs that system so basic health care costs that system so basic health care costs are all covered in government benefits are all covered in government benefits are all covered in government benefits that doesn't mean everything is covered that doesn't mean everything is covered that doesn't mean everything is covered we still have dental costs we still have we still have dental costs we still have we still have dental costs we still have prescription eyewear cost and those prescription eyewear cost and those prescription eyewear cost and those we've chosen to self-insure so the we've chosen to self-insure so the we've chosen to self-insure so the reality is we're paying for those reality is we're paying for those reality is we're paying for those out-of-pocket as things come up the out-of-pocket as things come up the out-of-pocket as things come up the other thing in Canada we do have some other thing in Canada we do have some other thing in Canada we do have some government and if it's similar to social government and if it's similar to social government and if it's similar to social security in the US there's all the security in the US there's all the security in the US there's all the obscurity in the Canada Pension Plan obscurity in the Canada Pension Plan obscurity in the Canada Pension Plan both of those are baked into my plan both of those are baked into my plan both of those are baked into my plan longer term but the reality is I've longer term but the reality is I've longer term but the reality is I've assumed significantly less in both cases assumed significantly less in both cases assumed significantly less in both cases for example old age security me my wife for example old age security me my wife for example old age security me my wife will should both qualify but to be will should both qualify but to be will should both qualify but to be conservative we assumed only one of us conservative we assumed only one of us conservative we assumed only one of us actually collects on it actually collects on it actually collects on it one of us dies early we still find one of us dies early we still find one of us dies early we still find that's baking of the plant we're good that's baking of the plant we're good that's baking of the plant we're good [Music] [Music] [Music] I was helping out at the local school I was helping out at the local school I was helping out at the local school shelving books once in a while and found shelving books once in a while and found shelving books once in a while and found I kind of liked it and then a job came I kind of liked it and then a job came I kind of liked it and then a job came open at the local library where they're open at the local library where they're open at the local library where they're looking for someone to do the same job looking for someone to do the same job looking for someone to do the same job like well that sounds like fun I could like well that sounds like fun I could like well that sounds like fun I could do that and work with great people who do that and work with great people who do that and work with great people who love books and like oh okay this could love books and like oh okay this could love books and like oh okay this could be really great and then oh by the way be really great and then oh by the way be really great and then oh by the way they're gonna pay you what I get paid they're gonna pay you what I get paid they're gonna pay you what I get paid sweet so I applied got the job and was sweet so I applied got the job and was sweet so I applied got the job and was like oh it's a term job so if I don't like oh it's a term job so if I don't like oh it's a term job so if I don't like it I can always just let the term like it I can always just let the term like it I can always just let the term lapse and don't go back but I found out lapse and don't go back but I found out lapse and don't go back but I found out I'm tall doing it that I really enjoy I'm tall doing it that I really enjoy I'm tall doing it that I really enjoy the work and all in all it's been like the work and all in all it's been like the work and all in all it's been like oh I get paid it's just the icing on the oh I get paid it's just the icing on the oh I get paid it's just the icing on the cake I don't actually need the money I cake I don't actually need the money I cake I don't actually need the money I just use it to help fund extra fication just use it to help fund extra fication just use it to help fund extra fication things so it's most work I think is things so it's most work I think is things so it's most work I think is tolerable as long as it's not full-time tolerable as long as it's not full-time tolerable as long as it's not full-time what I realized in work is like I really what I realized in work is like I really what I realized in work is like I really just like my whole life being work now just like my whole life being work now just like my whole life being work now it's much more balanced I think a lot it's much more balanced I think a lot it's much more balanced I think a lot more people would be a lot happier on more people would be a lot happier on more people would be a lot happier on reduced hours one of the great things reduced hours one of the great things reduced hours one of the great things about retirement is all that extra time about retirement is all that extra time about retirement is all that extra time to spend on things you want and so it's to spend on things you want and so it's to spend on things you want and so it's great because I changed my focusing with great because I changed my focusing with great because I changed my focusing with my children all the times they'd asked my children all the times they'd asked my children all the times they'd asked you to do something and be like oh maybe you to do something and be like oh maybe you to do something and be like oh maybe I got three other things to do now I I got three other things to do now I I got three other things to do now I always default the yes and so it's been always default the yes and so it's been always default the yes and so it's been really nice to spend more time with them if you're interested in early retirement if you're interested in early retirement if you're interested in early retirement we'll put links to Tim's blog his book we'll put links to Tim's blog his book we'll put links to Tim's blog his book and other resources in the description and other resources in the description and other resources in the description below please share this video if you below please share this video if you below please share this video if you liked it thank you so much for watching liked it thank you so much for watching liked it thank you so much for watching and we'll see you next time WEBVTT Kind: captions Language: en hey guys it's a mon and christina from hey guys it's a mon and christina from hey guys it's a mon and christina from average journey if you've been watching average journey if you've been watching average journey if you've been watching our channel you know that we're about our channel you know that we're about our channel you know that we're about three years from financial independence three years from financial independence three years from financial independence and possibly retired early it's kind of and possibly retired early it's kind of and possibly retired early it's kind of our choice if we want to do that or not our choice if we want to do that or not our choice if we want to do that or not but on today's video we're gonna show but on today's video we're gonna show but on today's video we're gonna show you our guide to financial independence you our guide to financial independence you our guide to financial independence the first step is breaking away from the first step is breaking away from the first step is breaking away from consumer culture now we just did a video consumer culture now we just did a video consumer culture now we just did a video on consumer culture and how to break on consumer culture and how to break on consumer culture and how to break away from that but the number one thing away from that but the number one thing away from that but the number one thing in terms of us reaching financial in terms of us reaching financial in terms of us reaching financial independence is not to be consumed by independence is not to be consumed by independence is not to be consumed by consumer culture well it's actually consumer culture well it's actually consumer culture well it's actually breaking from the norm a lot of the breaking from the norm a lot of the breaking from the norm a lot of the things that we do people will look at us things that we do people will look at us things that we do people will look at us a little funny but we know that there a little funny but we know that there a little funny but we know that there are things that we're doing to get us are things that we're doing to get us are things that we're doing to get us closer to financial independence the closer to financial independence the closer to financial independence the second thing is pay yourself first we've second thing is pay yourself first we've second thing is pay yourself first we've always done this since the beginning always done this since the beginning always done this since the beginning since we first got our first check we since we first got our first check we since we first got our first check we always took a little bit of money out always took a little bit of money out always took a little bit of money out and paid ourselves first now when we and paid ourselves first now when we and paid ourselves first now when we first started saving we were only saving first started saving we were only saving first started saving we were only saving about or percent but through the about or percent but through the about or percent but through the years we've been able to increase our years we've been able to increase our years we've been able to increase our savings rate to up to percent and savings rate to up to percent and savings rate to up to percent and really because we've always paid our really because we've always paid our really because we've always paid our self first when we say pay ourselves self first when we say pay ourselves self first when we say pay ourselves first we mean specifically for us we get first we mean specifically for us we get first we mean specifically for us we get money automatically deducted from our money automatically deducted from our money automatically deducted from our paychecks and that money goes towards paychecks and that money goes towards paychecks and that money goes towards our retirement accounts and to our stock our retirement accounts and to our stock our retirement accounts and to our stock portfolios another thing is when we make portfolios another thing is when we make portfolios another thing is when we make additional money from our side hustles additional money from our side hustles additional money from our side hustles we do not spend it we don't see that we do not spend it we don't see that we do not spend it we don't see that money at all it also goes directly into money at all it also goes directly into money at all it also goes directly into our stock portfolios we don't see it as our stock portfolios we don't see it as our stock portfolios we don't see it as additional money to spend but instead additional money to spend but instead additional money to spend but instead additional money to invest yeah to get additional money to invest yeah to get additional money to invest yeah to get us closer to financial independence and us closer to financial independence and us closer to financial independence and whenever we've made additional money whenever we've made additional money whenever we've made additional money that's more money that we can save the that's more money that we can save the that's more money that we can save the third tip is reducing your small third tip is reducing your small third tip is reducing your small expenses oh yeah these small expenses expenses oh yeah these small expenses expenses oh yeah these small expenses really add up really add up really add up so we we're always taking a look at all so we we're always taking a look at all so we we're always taking a look at all the expenses in our budget and looking the expenses in our budget and looking the expenses in our budget and looking for little areas that we can cut now for little areas that we can cut now for little areas that we can cut now these things have really add up for these things have really add up for these things have really add up for example we just changed our health example we just changed our health example we just changed our health insurance provider and by doing that insurance provider and by doing that insurance provider and by doing that we're saving another $ a month when we we're saving another $ a month when we we're saving another $ a month when we say look at your small expenses we say say look at your small expenses we say say look at your small expenses we say things like insurance look at your things like insurance look at your things like insurance look at your insurance look at recurring fees like insurance look at recurring fees like insurance look at recurring fees like your memberships or subscriptions your memberships or subscriptions your memberships or subscriptions anything that you might not necessarily anything that you might not necessarily anything that you might not necessarily use that can be cut or things like use that can be cut or things like use that can be cut or things like insurance that you do use that you can insurance that you do use that you can insurance that you do use that you can cut and look for different ways to save cut and look for different ways to save cut and look for different ways to save in that in that area so those are small in that in that area so those are small in that in that area so those are small expenses the next tip towards getting expenses the next tip towards getting expenses the next tip towards getting towards financial independence is towards financial independence is towards financial independence is looking at your big expenses also in looking at your big expenses also in looking at your big expenses also in finding ways to save on your big finding ways to save on your big finding ways to save on your big expenses so big expenses are housing expenses so big expenses are housing expenses so big expenses are housing transportation and food if you watched transportation and food if you watched transportation and food if you watched our other videos you know that we house our other videos you know that we house our other videos you know that we house hacked we don't buy new cars we always hacked we don't buy new cars we always hacked we don't buy new cars we always stay with the used car and we minimize stay with the used car and we minimize stay with the used car and we minimize our food expenses by just being smart our food expenses by just being smart our food expenses by just being smart about our purchases and another thing about our purchases and another thing about our purchases and another thing like I said travel expenses can be big like I said travel expenses can be big like I said travel expenses can be big for people so one of the things that we for people so one of the things that we for people so one of the things that we also do is we travel hacks so that we're also do is we travel hacks so that we're also do is we travel hacks so that we're not paying for any of our travel not paying for any of our travel not paying for any of our travel vacations yeah but these big wins every vacations yeah but these big wins every vacations yeah but these big wins every time we get one of these again we take time we get one of these again we take time we get one of these again we take that money and we put it right into our that money and we put it right into our that money and we put it right into our investments in our savings so this is a investments in our savings so this is a investments in our savings so this is a perfect segue into our next tip which is perfect segue into our next tip which is perfect segue into our next tip which is take all of your savings and invest your take all of your savings and invest your take all of your savings and invest your money any money any additional money money any money any additional money money any money any additional money that you made or any additional money that you made or any additional money that you made or any additional money that you can cut to save you should use that you can cut to save you should use that you can cut to save you should use that and invest yeah so there's a big that and invest yeah so there's a big that and invest yeah so there's a big difference here we're not we're not difference here we're not we're not difference here we're not we're not talking about just saving in a regular talking about just saving in a regular talking about just saving in a regular savings account we put our money into savings account we put our money into savings account we put our money into investment accounts that invest into the investment accounts that invest into the investment accounts that invest into the total stock market so we do a lot of total stock market so we do a lot of total stock market so we do a lot of videos on how to invest what to invest videos on how to invest what to invest videos on how to invest what to invest in and these are just our in and these are just our in and these are just our recommendations but it's important to recommendations but it's important to recommendations but it's important to know that you cannot achieve financial know that you cannot achieve financial know that you cannot achieve financial independence by simply saving you also independence by simply saving you also independence by simply saving you also have to invest the next thing to do is have to invest the next thing to do is have to invest the next thing to do is earn more now if you have a regular job earn more now if you have a regular job earn more now if you have a regular job you can do things at your job to maybe you can do things at your job to maybe you can do things at your job to maybe earn more like go after a promotion but earn more like go after a promotion but earn more like go after a promotion but we are big on side hustles for one it's we are big on side hustles for one it's we are big on side hustles for one it's really important because it gives you a really important because it gives you a really important because it gives you a second income it's like your back-up second income it's like your back-up second income it's like your back-up plan and we we believe strongly and not plan and we we believe strongly and not plan and we we believe strongly and not just having one source of income so a just having one source of income so a just having one source of income so a side hustle is a must and what's great side hustle is a must and what's great side hustle is a must and what's great about a side hustle is that say you do about a side hustle is that say you do about a side hustle is that say you do retire side hustle is usually something retire side hustle is usually something retire side hustle is usually something that you enjoy doing so when you retire that you enjoy doing so when you retire that you enjoy doing so when you retire it's not like you're going to completely it's not like you're going to completely it's not like you're going to completely stop doing anything you can continue stop doing anything you can continue stop doing anything you can continue doing a side hustle and generating doing a side hustle and generating doing a side hustle and generating income from that our favorite side income from that our favorite side income from that our favorite side hustles are the ones that generate hustles are the ones that generate hustles are the ones that generate passive income so by producing videos or passive income so by producing videos or passive income so by producing videos or maybe teaching a course and putting on maybe teaching a course and putting on maybe teaching a course and putting on udemy or maybe putting a digital udemy or maybe putting a digital udemy or maybe putting a digital download on Etsy and we talked a lot download on Etsy and we talked a lot download on Etsy and we talked a lot about these in our other videos but about these in our other videos but about these in our other videos but creating that other source of income creating that other source of income creating that other source of income beyond your job is something that gets beyond your job is something that gets beyond your job is something that gets you to financial independence quicker you to financial independence quicker you to financial independence quicker the next thing that we do in order to the next thing that we do in order to the next thing that we do in order to reach our goal of financial independence reach our goal of financial independence reach our goal of financial independence is credit card hacking and travel is credit card hacking and travel is credit card hacking and travel hacking now we love to travel but if hacking now we love to travel but if hacking now we love to travel but if you're trying to get towards financial you're trying to get towards financial you're trying to get towards financial independence that could be very cost independence that could be very cost independence that could be very cost prohibitive you might not be able to do prohibitive you might not be able to do prohibitive you might not be able to do that if you do it this standard way that if you do it this standard way that if you do it this standard way which is incurved sometimes thousands of which is incurved sometimes thousands of which is incurved sometimes thousands of dollars just by traveling now we've dollars just by traveling now we've dollars just by traveling now we've figured out a way to travel for free we figured out a way to travel for free we figured out a way to travel for free we do credit card hacking so that we never do credit card hacking so that we never do credit card hacking so that we never pay for our travel costs this saves us a pay for our travel costs this saves us a pay for our travel costs this saves us a significant amount of money and that significant amount of money and that significant amount of money and that savings that we do save we in turn savings that we do save we in turn savings that we do save we in turn invest it the next step towards invest it the next step towards invest it the next step towards financial independence is living financial independence is living financial independence is living debt-free now for us we actually live debt-free now for us we actually live debt-free now for us we actually live debt-free we don't have any debt and we debt-free we don't have any debt and we debt-free we don't have any debt and we use like we said we use our credit cards use like we said we use our credit cards use like we said we use our credit cards in order to travel for free but we pay in order to travel for free but we pay in order to travel for free but we pay off the entire credit card every month off the entire credit card every month off the entire credit card every month now some of you may have more debt than now some of you may have more debt than now some of you may have more debt than others or may have more debt than us but others or may have more debt than us but others or may have more debt than us but the idea is to minimize your debt and the idea is to minimize your debt and the idea is to minimize your debt and try and get a rid of as much debt as try and get a rid of as much debt as try and get a rid of as much debt as possible because then you can reach possible because then you can reach possible because then you can reach financial independence a lot quicker financial independence a lot quicker financial independence a lot quicker yeah see it's it works against you also yeah see it's it works against you also yeah see it's it works against you also so we talked a lot about investing and so we talked a lot about investing and so we talked a lot about investing and when you invest the power of compound when you invest the power of compound when you invest the power of compound interest helps your helps your interest helps your helps your interest helps your helps your investments to grow but if you have a investments to grow but if you have a investments to grow but if you have a lot of debt lot of debt lot of debt compound interest can actually work in compound interest can actually work in compound interest can actually work in the opposite direction so if you have the opposite direction so if you have the opposite direction so if you have debt that has high interest that debt debt that has high interest that debt debt that has high interest that debt will grow faster than your investments will grow faster than your investments will grow faster than your investments so paying off your debt is very so paying off your debt is very so paying off your debt is very important next you want to educate important next you want to educate important next you want to educate yourself on financial independence yourself on financial independence yourself on financial independence now financial independence there are now financial independence there are now financial independence there are actually a lot of life hacks and actually a lot of life hacks and actually a lot of life hacks and strategies that must be done to reach strategies that must be done to reach strategies that must be done to reach financial independence and early financial independence and early financial independence and early retirement now you can retire in the retirement now you can retire in the retirement now you can retire in the traditional manner but if you want to traditional manner but if you want to traditional manner but if you want to retire earlier than most then you really retire earlier than most then you really retire earlier than most then you really have to educate yourselves on some of have to educate yourselves on some of have to educate yourselves on some of the things that early retirees must do the things that early retirees must do the things that early retirees must do so things like health care things like so things like health care things like so things like health care things like the Roth IRA conversion there are many the Roth IRA conversion there are many the Roth IRA conversion there are many things that as an early retiree you must things that as an early retiree you must things that as an early retiree you must do in advance to really get there do in advance to really get there do in advance to really get there yeah I agree one of the things before we yeah I agree one of the things before we yeah I agree one of the things before we started our road to financial started our road to financial started our road to financial independence independence independence I actually didn't understand the concept I actually didn't understand the concept I actually didn't understand the concept of the % withdrawal rate or withdrawing of the % withdrawal rate or withdrawing of the % withdrawal rate or withdrawing from your assets I actually thought that from your assets I actually thought that from your assets I actually thought that you are taking away from your assets you are taking away from your assets you are taking away from your assets each month and that your sum at some each month and that your sum at some each month and that your sum at some point you're going to deplete it so point you're going to deplete it so point you're going to deplete it so there I mean this was a long time ago there I mean this was a long time ago there I mean this was a long time ago but there is a process of really but there is a process of really but there is a process of really educating yourself on how your finances educating yourself on how your finances educating yourself on how your finances are gonna impact you on your way towards are gonna impact you on your way towards are gonna impact you on your way towards financial independence and also when you financial independence and also when you financial independence and also when you retire early now we're going to get a retire early now we're going to get a retire early now we're going to get a lot into some of these strategies in our lot into some of these strategies in our lot into some of these strategies in our upcoming videos we're going to talk upcoming videos we're going to talk upcoming videos we're going to talk about your drawdown strategy once you about your drawdown strategy once you about your drawdown strategy once you reach financial independence but this reach financial independence but this reach financial independence but this video is about the baseline really what video is about the baseline really what video is about the baseline really what you need to do to get started on your you need to do to get started on your you need to do to get started on your journey towards financial independence journey towards financial independence journey towards financial independence but education financial education is but education financial education is but education financial education is crucial and the last thing we do on our crucial and the last thing we do on our crucial and the last thing we do on our goal towards financial independence is goal towards financial independence is goal towards financial independence is understanding that we're going to be understanding that we're going to be understanding that we're going to be living off of our investments in passive living off of our investments in passive living off of our investments in passive income that means generating passive income that means generating passive income that means generating passive income that will take us to our early income that will take us to our early income that will take us to our early retirement that we'll still be able to retirement that we'll still be able to retirement that we'll still be able to use when we're in early retirement and use when we're in early retirement and use when we're in early retirement and it also means creating the proper it also means creating the proper it also means creating the proper investment portfolio so that we can draw investment portfolio so that we can draw investment portfolio so that we can draw from that when we retire it's all part from that when we retire it's all part from that when we retire it's all part of our financial independence goal in of our financial independence goal in of our financial independence goal in understanding what we need in order to understanding what we need in order to understanding what we need in order to reach financial independence and you reach financial independence and you reach financial independence and you can't live off of your investments and can't live off of your investments and can't live off of your investments and passive income if you're gonna fall back passive income if you're gonna fall back passive income if you're gonna fall back into the consumer culture so this goes into the consumer culture so this goes into the consumer culture so this goes back to step number one and our guide to back to step number one and our guide to back to step number one and our guide to financial independence as you go through financial independence as you go through financial independence as you go through this process you will condition yourself this process you will condition yourself this process you will condition yourself to live a financially independent life to live a financially independent life to live a financially independent life you develop the right habits and you you develop the right habits and you you develop the right habits and you develop the right strategies to live develop the right strategies to live develop the right strategies to live financially independent for the rest of financially independent for the rest of financially independent for the rest of your life your life your life like we said we are on the road towards like we said we are on the road towards like we said we are on the road towards financial independence and these are the financial independence and these are the financial independence and these are the steps that we are using in order to steps that we are using in order to steps that we are using in order to reach financial independence if you like reach financial independence if you like reach financial independence if you like this video make sure you give us a this video make sure you give us a this video make sure you give us a thumbs up subscribe to our Channel and thumbs up subscribe to our Channel and thumbs up subscribe to our Channel and join the journey WEBVTT Kind: captions Language: en financial independence retire early is a financial independence retire early is a financial independence retire early is a growing concept that I want to make sure growing concept that I want to make sure growing concept that I want to make sure that you are aware of now don't worry if that you are aware of now don't worry if that you are aware of now don't worry if you're turning your head like what the you're turning your head like what the you're turning your head like what the hell is he talking about because I hell is he talking about because I hell is he talking about because I didn't know much about it at first didn't know much about it at first didn't know much about it at first either if you were in the process of either if you were in the process of either if you were in the process of paying off debt then don't dismiss paying off debt then don't dismiss paying off debt then don't dismiss taking this time to learn about this taking this time to learn about this taking this time to learn about this right now because once you get your right now because once you get your right now because once you get your debts paid off this could be the natural debts paid off this could be the natural debts paid off this could be the natural transition for you in this video I transition for you in this video I transition for you in this video I wanted to gather as much of the basic wanted to gather as much of the basic wanted to gather as much of the basic information as I could about the topic information as I could about the topic information as I could about the topic of fire so that I could save you some of fire so that I could save you some of fire so that I could save you some time looking around everywhere for what time looking around everywhere for what time looking around everywhere for what you actually need to know to understand you actually need to know to understand you actually need to know to understand the basics as you watch this video let the basics as you watch this video let the basics as you watch this video let me know in the comments below if this me know in the comments below if this me know in the comments below if this sounds like something that you may want sounds like something that you may want sounds like something that you may want to eventually pursue then let me know to eventually pursue then let me know to eventually pursue then let me know why or why not I'm very curious why or why not I'm very curious why or why not I'm very curious financial independence retire early is financial independence retire early is financial independence retire early is also referred to as fi re fire so why do also referred to as fi re fire so why do also referred to as fi re fire so why do I think this concept of fire is only I think this concept of fire is only I think this concept of fire is only going to get bigger as time goes on as going to get bigger as time goes on as going to get bigger as time goes on as more and more younger generations more and more younger generations more and more younger generations realize that we were sold this shitty realize that we were sold this shitty realize that we were sold this shitty bill of goods when it comes to going to bill of goods when it comes to going to bill of goods when it comes to going to college to climb that corporate ladder college to climb that corporate ladder college to climb that corporate ladder only to waste our lives away doing only to waste our lives away doing only to waste our lives away doing meaningless in a cubical for to meaningless in a cubical for to meaningless in a cubical for to vacation days a year the idea of fire vacation days a year the idea of fire vacation days a year the idea of fire will become something a lot more people will become something a lot more people will become something a lot more people like you and I will look at as a real like you and I will look at as a real like you and I will look at as a real option going forward financial option going forward financial option going forward financial independence and early retirement have independence and early retirement have independence and early retirement have everything to do with first getting out everything to do with first getting out everything to do with first getting out of debt and yes that means your student of debt and yes that means your student of debt and yes that means your student loans that car payment and possibly the loans that car payment and possibly the loans that car payment and possibly the house that you own that might be a house that you own that might be a house that you own that might be a little bit bigger than you actually need little bit bigger than you actually need little bit bigger than you actually need the reason is because this concept the reason is because this concept the reason is because this concept doesn't work very well if you're doesn't work very well if you're doesn't work very well if you're aggressively trying to save and invest aggressively trying to save and invest aggressively trying to save and invest on one end of the spectrum while you're on one end of the spectrum while you're on one end of the spectrum while you're also hemorrhaging money so the interest also hemorrhaging money so the interest also hemorrhaging money so the interest that you're paying on the other end like that you're paying on the other end like that you're paying on the other end like your but once again for that reason this your but once again for that reason this your but once again for that reason this would be the natural transition for you would be the natural transition for you would be the natural transition for you once you become debt free so pay once you become debt free so pay once you become debt free so pay attention let's start out with the most attention let's start out with the most attention let's start out with the most important part fire is the acronym of important part fire is the acronym of important part fire is the acronym of two concepts the first one the FI is two concepts the first one the FI is two concepts the first one the FI is financial independence the second two financial independence the second two financial independence the second two letters are e is retire early or early letters are e is retire early or early letters are e is retire early or early retirement retirement retirement I like early retirement better I think I like early retirement better I think I like early retirement better I think they probably should have just stuck they probably should have just stuck they probably should have just stuck with f IE r because it looks cooler but with f IE r because it looks cooler but with f IE r because it looks cooler but whatever I don't make the rules one whatever I don't make the rules one whatever I don't make the rules one thing to know don't go googling fire thing to know don't go googling fire thing to know don't go googling fire because unfortunately actual fire is because unfortunately actual fire is because unfortunately actual fire is way more popular research result I'll way more popular research result I'll way more popular research result I'll have to admit that once you get really have to admit that once you get really have to admit that once you get really deep into the fire world some people deep into the fire world some people deep into the fire world some people take it really really personally when it take it really really personally when it take it really really personally when it comes to the difference between comes to the difference between comes to the difference between financial independence and early financial independence and early financial independence and early retirement as long as you understand the retirement as long as you understand the retirement as long as you understand the overarching concept then you'll be fine overarching concept then you'll be fine overarching concept then you'll be fine and you'll understand what it's about and you'll understand what it's about and you'll understand what it's about from what I've gathered some people from what I've gathered some people from what I've gathered some people switch back and forth between being switch back and forth between being switch back and forth between being financially independent and being in financially independent and being in financially independent and being in early retirement you'll see once we dig early retirement you'll see once we dig early retirement you'll see once we dig deeper into the meaning of both of them deeper into the meaning of both of them deeper into the meaning of both of them so hang on for a minute so what is early so hang on for a minute so what is early so hang on for a minute so what is early retirement well basically if you were in retirement well basically if you were in retirement well basically if you were in an early retirement you are considered an early retirement you are considered an early retirement you are considered to not be working or not working for to not be working or not working for to not be working or not working for money it's just like if you were retired money it's just like if you were retired money it's just like if you were retired at years old but at a younger age at years old but at a younger age at years old but at a younger age someone who is an early retirement has someone who is an early retirement has someone who is an early retirement has enough money to live off of every single enough money to live off of every single enough money to live off of every single year and sustain a particular lifestyle year and sustain a particular lifestyle year and sustain a particular lifestyle that they've saved up for and invested that they've saved up for and invested that they've saved up for and invested for now I would consider someone in the for now I would consider someone in the for now I would consider someone in the early retirement who is taking an early retirement who is taking an early retirement who is taking an extended period of time to travel or extended period of time to travel or extended period of time to travel or someone who is enjoying playing someone who is enjoying playing someone who is enjoying playing horseshoes with their friends on a horseshoes with their friends on a horseshoes with their friends on a regular basis if that's even still a regular basis if that's even still a regular basis if that's even still a thing volunteer work is another one or thing volunteer work is another one or thing volunteer work is another one or even someone who is enjoying their time even someone who is enjoying their time even someone who is enjoying their time working on a hobby that they enjoy so working on a hobby that they enjoy so working on a hobby that they enjoy so then what's financial independence to be then what's financial independence to be then what's financial independence to be financially independent might be seen as financially independent might be seen as financially independent might be seen as the ultimate goal think think of it like the ultimate goal think think of it like the ultimate goal think think of it like someone that has a few money that is someone that has a few money that is someone that has a few money that is still working and making money a few still working and making money a few still working and making money a few money doesn't necessarily mean that they money doesn't necessarily mean that they money doesn't necessarily mean that they have to have tens of millions of dollars have to have tens of millions of dollars have to have tens of millions of dollars it has to do with having enough money it has to do with having enough money it has to do with having enough money between investments and savings just to between investments and savings just to between investments and savings just to say sustain the the lifestyle that they say sustain the the lifestyle that they say sustain the the lifestyle that they choose the basics around financial choose the basics around financial choose the basics around financial independence has to do with having the independence has to do with having the independence has to do with having the option to choose whether you want to option to choose whether you want to option to choose whether you want to work for money or not for example you work for money or not for example you work for money or not for example you may have enough money to retire early may have enough money to retire early may have enough money to retire early but you decide to continue to work your but you decide to continue to work your but you decide to continue to work your current job making money because you current job making money because you current job making money because you would just enjoy the work someone else would just enjoy the work someone else would just enjoy the work someone else who is also financially independent is who is also financially independent is who is also financially independent is someone who has enough money to retire someone who has enough money to retire someone who has enough money to retire now but chooses to switch careers to now but chooses to switch careers to now but chooses to switch careers to work a lower pay job because that hits work a lower pay job because that hits work a lower pay job because that hits them right in the fields by working at them right in the fields by working at them right in the fields by working at that job now let's go into switching that job now let's go into switching that job now let's go into switching back and forth from financial back and forth from financial back and forth from financial independence and early retirement the independence and early retirement the independence and early retirement the reason they refer to it as fire is reason they refer to it as fire is reason they refer to it as fire is because some of the people will move because some of the people will move because some of the people will move back and forth between both terms back and forth between both terms back and forth between both terms financial independence and early financial independence and early financial independence and early retirement you may be financially retirement you may be financially retirement you may be financially independent and still work at your independent and still work at your independent and still work at your but then decide that you were kind of but then decide that you were kind of but then decide that you were kind of over it so you want to retire early to over it so you want to retire early to over it so you want to retire early to do some traveling in Southeast Asia and do some traveling in Southeast Asia and do some traveling in Southeast Asia and then while you're traveling emid you may then while you're traveling emid you may then while you're traveling emid you may have discovered something new that have discovered something new that have discovered something new that you're passionate about you're like oh I you're passionate about you're like oh I you're passionate about you're like oh I love this new thing so you want to share love this new thing so you want to share love this new thing so you want to share it with the rest of the world so what do it with the rest of the world so what do it with the rest of the world so what do you do you create some sort of product you do you create some sort of product you do you create some sort of product or service to sell at that point you're or service to sell at that point you're or service to sell at that point you're moving from being retired to financially moving from being retired to financially moving from being retired to financially independent because you are back to independent because you are back to independent because you are back to making money so why would you want to be making money so why would you want to be making money so why would you want to be financially independent or retire early financially independent or retire early financially independent or retire early when the average person thinks about when the average person thinks about when the average person thinks about retirement we think about working into retirement we think about working into retirement we think about working into will we're seventy years old collecting will we're seventy years old collecting will we're seventy years old collecting Social Security having enough money to Social Security having enough money to Social Security having enough money to enjoy the last few years of our lives enjoy the last few years of our lives enjoy the last few years of our lives not working and banking on the fact that not working and banking on the fact that not working and banking on the fact that our bodies and minds are still our bodies and minds are still our bodies and minds are still functioning enough to actually enjoy functioning enough to actually enjoy functioning enough to actually enjoy that time fire is the same idea except that time fire is the same idea except that time fire is the same idea except speeding up the process so that you can speeding up the process so that you can speeding up the process so that you can do more enjoyable things for a longer do more enjoyable things for a longer do more enjoyable things for a longer period of time at a younger age period of time at a younger age period of time at a younger age what have really gathered from this is what have really gathered from this is what have really gathered from this is that being financially independent is that being financially independent is that being financially independent is about doing things that give you more about doing things that give you more about doing things that give you more energy in life as opposed to doing work energy in life as opposed to doing work energy in life as opposed to doing work that sucks all of that energy out of you that sucks all of that energy out of you that sucks all of that energy out of you to really grasp the understanding think to really grasp the understanding think to really grasp the understanding think about those days that you leave work and about those days that you leave work and about those days that you leave work and you were absolutely drained physically you were absolutely drained physically you were absolutely drained physically and mentally so much that all you want and mentally so much that all you want and mentally so much that all you want to do is just lay around and veg out and to do is just lay around and veg out and to do is just lay around and veg out and not do anything else I know you've had not do anything else I know you've had not do anything else I know you've had these days I've had these days in the these days I've had these days in the these days I've had these days in the past too some of us may have a lot more past too some of us may have a lot more past too some of us may have a lot more than others which kind of sucks I might than others which kind of sucks I might than others which kind of sucks I might be one of you were eight nine ten eleven be one of you were eight nine ten eleven be one of you were eight nine ten eleven hours at your full-time job only to be hours at your full-time job only to be hours at your full-time job only to be forced to spend the hours and days that forced to spend the hours and days that forced to spend the hours and days that you are working just to recover from you are working just to recover from you are working just to recover from those hours spent working your full-time those hours spent working your full-time those hours spent working your full-time job doesn't only take away from your job doesn't only take away from your job doesn't only take away from your time while you were there it takes away time while you were there it takes away time while you were there it takes away from your time while you're away as well from your time while you're away as well from your time while you're away as well how messed up is that how messed up is that how messed up is that for example let's do some math now be for example let's do some math now be for example let's do some math now be prepared to pick your jaw up off the prepared to pick your jaw up off the prepared to pick your jaw up off the floor after you see these numbers if you floor after you see these numbers if you floor after you see these numbers if you make $ per hour for eight hours of make $ per hour for eight hours of make $ per hour for eight hours of work then you make $ per day agreed work then you make $ per day agreed work then you make $ per day agreed hashtag math but not if you account for hashtag math but not if you account for hashtag math but not if you account for everything else that goes into you everything else that goes into you everything else that goes into you getting to and from work you getting getting to and from work you getting getting to and from work you getting ready for work and the time that you ready for work and the time that you ready for work and the time that you spend recovering from those draining spend recovering from those draining spend recovering from those draining days of work so that's eight hours of days of work so that's eight hours of days of work so that's eight hours of work one hour for one work one hour for one work one hour for one one hour of travel time one hour to get one hour of travel time one hour to get one hour of travel time one hour to get ready and we'll just call it three hours ready and we'll just call it three hours ready and we'll just call it three hours per day to mentally recovery if you're per day to mentally recovery if you're per day to mentally recovery if you're even able to do that in three hours even able to do that in three hours even able to do that in three hours which most people want don't throw up which most people want don't throw up which most people want don't throw up yet because I'm gonna go over some more yet because I'm gonna go over some more yet because I'm gonna go over some more numbers if we take those hours into numbers if we take those hours into numbers if we take those hours into account and you're actually only making account and you're actually only making account and you're actually only making $ per hour and if you work more than $ per hour and if you work more than $ per hour and if you work more than in those eight hours then you were in those eight hours then you were in those eight hours then you were actually making less than that per hour actually making less than that per hour actually making less than that per hour you would actually be making less than you would actually be making less than you would actually be making less than $ per hour if your particular $ per hour if your particular $ per hour if your particular situation calls for more time to be situation calls for more time to be situation calls for more time to be spent on things that have to do with spent on things that have to do with spent on things that have to do with your job oh yeah and this isn't even your job oh yeah and this isn't even your job oh yeah and this isn't even counting your recovery time on the counting your recovery time on the counting your recovery time on the weekends or any other things that have weekends or any other things that have weekends or any other things that have to do with your particular situation to do with your particular situation to do with your particular situation that I haven't named listen I don't want that I haven't named listen I don't want that I haven't named listen I don't want everything we talked about to discourage everything we talked about to discourage everything we talked about to discourage you please don't walk into your job and you please don't walk into your job and you please don't walk into your job and demand more money right away or just demand more money right away or just demand more money right away or just quit that would be bad for everyone and quit that would be bad for everyone and quit that would be bad for everyone and I do not want to take ownership of that I do not want to take ownership of that I do not want to take ownership of that let this concept of financial let this concept of financial let this concept of financial independence and early retirement sink independence and early retirement sink independence and early retirement sink sink in for a little bit for yourself sink in for a little bit for yourself sink in for a little bit for yourself think about it on your own talk about it think about it on your own talk about it think about it on your own talk about it with your significant other or your wife with your significant other or your wife with your significant other or your wife or husband it doesn't make sense for or husband it doesn't make sense for or husband it doesn't make sense for everyone it really doesn't I know a lot everyone it really doesn't I know a lot everyone it really doesn't I know a lot of people who are who really enjoy that of people who are who really enjoy that of people who are who really enjoy that the work enjoy the work that they do and the work enjoy the work that they do and the work enjoy the work that they do and they have no desire to ever pursue a they have no desire to ever pursue a they have no desire to ever pursue a life of fire and that is okay pursuing life of fire and that is okay pursuing life of fire and that is okay pursuing this future takes a lot of questioning this future takes a lot of questioning this future takes a lot of questioning and second-guessing of your actions in and second-guessing of your actions in and second-guessing of your actions in the present it's not easy to do the the present it's not easy to do the the present it's not easy to do the things to become financially independent things to become financially independent things to become financially independent and retire early if you are not going to and retire early if you are not going to and retire early if you are not going to be all-in I truly believe that anyone on be all-in I truly believe that anyone on be all-in I truly believe that anyone on any income can do it but you first have any income can do it but you first have any income can do it but you first have to start with paying off all of your bad to start with paying off all of your bad to start with paying off all of your bad debts and becoming debt free keep that debts and becoming debt free keep that debts and becoming debt free keep that in mind let me know in the comments down in mind let me know in the comments down in mind let me know in the comments down below if you liked this video and want below if you liked this video and want below if you liked this video and want me to make more videos on this topic me to make more videos on this topic me to make more videos on this topic make sure to smash that thumbs up button make sure to smash that thumbs up button make sure to smash that thumbs up button and pick up your free copy of the and pick up your free copy of the and pick up your free copy of the debt-free prep work but link is down in debt-free prep work but link is down in debt-free prep work but link is down in the description or some work around my the description or some work around my the description or some work around my stupid head I'd love to have you as a stupid head I'd love to have you as a stupid head I'd love to have you as a subscriber as well so we can start subscriber as well so we can start subscriber as well so we can start getting you to the point where you are getting you to the point where you are getting you to the point where you are financially free thank you so much for financially free thank you so much for financially free thank you so much for watching I shall smell you later friends watching I shall smell you later friends watching I shall smell you later friends videos WEBVTT Kind: captions Language: en hey guys zamon and christina from hey guys zamon and christina from hey guys zamon and christina from average journey average journey average journey today we are talking about financial today we are talking about financial today we are talking about financial minimalism minimalism minimalism and if you have never heard of it you and if you have never heard of it you and if you have never heard of it you are in for a treat today are in for a treat today are in for a treat today because financial minimalism was key to because financial minimalism was key to because financial minimalism was key to us us us on our journey towards financial on our journey towards financial on our journey towards financial independence and retiring early independence and retiring early independence and retiring early in fact we would not be millionaires in fact we would not be millionaires in fact we would not be millionaires today if we were not financial today if we were not financial today if we were not financial minimalists minimalists minimalists and so on today's video we want to share and so on today's video we want to share and so on today's video we want to share with you with you with you our tips so that you maybe on your our tips so that you maybe on your our tips so that you maybe on your journey can practice financial journey can practice financial journey can practice financial minimalism minimalism minimalism and hopefully achieve financial and hopefully achieve financial and hopefully achieve financial independence independence independence so before we get started let's first so before we get started let's first so before we get started let's first define financial minimalism and it define financial minimalism and it define financial minimalism and it starts with the basic concept of starts with the basic concept of starts with the basic concept of minimalism so minimalism in and of minimalism so minimalism in and of minimalism so minimalism in and of itself itself itself means to focus on what is essential to means to focus on what is essential to means to focus on what is essential to you in your life you in your life you in your life anything that doesn't fall into that anything that doesn't fall into that anything that doesn't fall into that essential category essential category essential category you just get rid of it and that you just get rid of it and that you just get rid of it and that translates over to your finances too translates over to your finances too translates over to your finances too so financial minimalism is focusing on so financial minimalism is focusing on so financial minimalism is focusing on spending spending spending your money on things that are essential your money on things that are essential your money on things that are essential to you to you to you and not spending your money on anything and not spending your money on anything and not spending your money on anything else but it also has to deal with else but it also has to deal with else but it also has to deal with simplifying and prioritizing your simplifying and prioritizing your simplifying and prioritizing your finances finances finances so financial minimalism is powerful on so financial minimalism is powerful on so financial minimalism is powerful on so many levels so many levels so many levels not only does it simplify your approach not only does it simplify your approach not only does it simplify your approach to managing money to managing money to managing money but it also frees up more money because but it also frees up more money because but it also frees up more money because you are you are you are only spending money on essential things only spending money on essential things only spending money on essential things you you you end up saving more money which in turn end up saving more money which in turn end up saving more money which in turn allows you to allows you to allows you to invest more money this was crucial for invest more money this was crucial for invest more money this was crucial for us on our journey and why we are us on our journey and why we are us on our journey and why we are such fans of financial minimalism such fans of financial minimalism such fans of financial minimalism so we're going to go through our so we're going to go through our so we're going to go through our different tips for how you can achieve different tips for how you can achieve different tips for how you can achieve financial minimalism financial minimalism financial minimalism but before we do if you are new to our but before we do if you are new to our but before we do if you are new to our channel our channel is all about channel our channel is all about channel our channel is all about making money saving money and investing making money saving money and investing making money saving money and investing money on the road to financial money on the road to financial money on the road to financial independence independence independence ahmad and i were on that journey for ahmad and i were on that journey for ahmad and i were on that journey for eight years we reached financial eight years we reached financial eight years we reached financial independence independence independence we quit our federal government jobs and we quit our federal government jobs and we quit our federal government jobs and we retired we retired we retired so if you are interested in financial so if you are interested in financial so if you are interested in financial independence or ways to make save and independence or ways to make save and independence or ways to make save and invest invest invest money make sure you subscribe to our money make sure you subscribe to our money make sure you subscribe to our channel so let's start off with our channel so let's start off with our channel so let's start off with our first tip for pursuing financial first tip for pursuing financial first tip for pursuing financial minimalism and that is to think of debt minimalism and that is to think of debt minimalism and that is to think of debt as if it is clutter as if it is clutter as if it is clutter when you have a lot of things around you when you have a lot of things around you when you have a lot of things around you a lot of clutter a lot of clutter a lot of clutter it prevents you from thinking straight it prevents you from thinking straight it prevents you from thinking straight and so the goal should really be and so the goal should really be and so the goal should really be to minimize the amount of debt that you to minimize the amount of debt that you to minimize the amount of debt that you have so that you can have so that you can have so that you can focus on growing your wealth and focus on growing your wealth and focus on growing your wealth and reaching financial independence reaching financial independence reaching financial independence so i love this analogy of debt is so i love this analogy of debt is so i love this analogy of debt is clutter clutter clutter because if you are in a room and if that because if you are in a room and if that because if you are in a room and if that room is room is room is filled full of clutter you have no filled full of clutter you have no filled full of clutter you have no ability ability ability to maneuver in that room you can't get to maneuver in that room you can't get to maneuver in that room you can't get around around around and that is exactly what happens when and that is exactly what happens when and that is exactly what happens when you have too much debt in your life you have too much debt in your life you have too much debt in your life you are restricted in the things that you are restricted in the things that you are restricted in the things that you can do you can do you can do you can't save more you can't invest you can't save more you can't invest you can't save more you can't invest more your mind is not more your mind is not more your mind is not free to think of ways to make more money free to think of ways to make more money free to think of ways to make more money debt represents a huge obstacle when you debt represents a huge obstacle when you debt represents a huge obstacle when you are are are on your journey towards financial on your journey towards financial on your journey towards financial independence so this leads us to tip independence so this leads us to tip independence so this leads us to tip number two number two number two which is to minimize the amount of money which is to minimize the amount of money which is to minimize the amount of money that you spend on a home that you spend on a home that you spend on a home and now this may sound like a duh and now this may sound like a duh and now this may sound like a duh minimize the amount minimize the amount minimize the amount but the problem is most people overspend but the problem is most people overspend but the problem is most people overspend on a home on a home on a home because they buy a home that is too big because they buy a home that is too big because they buy a home that is too big and and and i'll tell you what people do they want i'll tell you what people do they want i'll tell you what people do they want to buy a home that has an to buy a home that has an to buy a home that has an office that has a man cave that has a office that has a man cave that has a office that has a man cave that has a foyer foyer foyer that is the size of another room that is the size of another room that is the size of another room they want to get these homes that are so they want to get these homes that are so they want to get these homes that are so gigantic gigantic gigantic that they end up spending too much on a that they end up spending too much on a that they end up spending too much on a home home home and in reality they don't utilize most and in reality they don't utilize most and in reality they don't utilize most of the space of the space of the space in that home you see all of that in that home you see all of that in that home you see all of that underutilized space underutilized space underutilized space is money that you are wasting because is money that you are wasting because is money that you are wasting because you could have bought you could have bought you could have bought a smaller home and thereby saved more a smaller home and thereby saved more a smaller home and thereby saved more money money money so financial minimalism focuses on your so financial minimalism focuses on your so financial minimalism focuses on your essential needs essential needs essential needs so if you are going to buy a home make so if you are going to buy a home make so if you are going to buy a home make sure you're buying a home sure you're buying a home sure you're buying a home that meets your essential needs it does that meets your essential needs it does that meets your essential needs it does not need to exceed not need to exceed not need to exceed those needs and if you are in a home those needs and if you are in a home those needs and if you are in a home that you currently live in that you currently live in that you currently live in that exceeds your needs you can think that exceeds your needs you can think that exceeds your needs you can think about downsizing about downsizing about downsizing our next tip is to create a simplified our next tip is to create a simplified our next tip is to create a simplified investment plan and we are talking to investment plan and we are talking to investment plan and we are talking to the people the people the people that are buying individual stocks the that are buying individual stocks the that are buying individual stocks the people that are buying people that are buying people that are buying to individual stocks to make up to individual stocks to make up to individual stocks to make up their investment portfolio their investment portfolio their investment portfolio you see we invest in low-cost index you see we invest in low-cost index you see we invest in low-cost index funds that capture the entire stock funds that capture the entire stock funds that capture the entire stock market the total market the total market the total stock market index fund but we have stock market index fund but we have stock market index fund but we have talked to so many people talked to so many people talked to so many people that own tons and tons of stocks that own tons and tons of stocks that own tons and tons of stocks and we cannot help but think how do they and we cannot help but think how do they and we cannot help but think how do they keep keep keep up with all of these individual stocks up with all of these individual stocks up with all of these individual stocks you see if you're an investor you see if you're an investor you see if you're an investor every company that you invest in you every company that you invest in you every company that you invest in you should be attending their should be attending their should be attending their annual meetings you should be reported annual meetings you should be reported annual meetings you should be reported you should be reading you should be reading you should be reading their annual reports you should be up to their annual reports you should be up to their annual reports you should be up to date on date on date on every single investment that you have every single investment that you have every single investment that you have but someone but someone but someone that owns that many individual stocks that owns that many individual stocks that owns that many individual stocks it is virtually impossible for them to it is virtually impossible for them to it is virtually impossible for them to keep up with it keep up with it keep up with it and so we think that if you are a and so we think that if you are a and so we think that if you are a financial minimalist financial minimalist financial minimalist your investment approach should also your investment approach should also your investment approach should also require require require a minimal amount of effort but get a minimal amount of effort but get a minimal amount of effort but get maximum amount of return maximum amount of return maximum amount of return and so that's why we are proponents of and so that's why we are proponents of and so that's why we are proponents of investing investing investing in index funds because the person that in index funds because the person that in index funds because the person that invests invests invests in an index fund nine times out of ten in an index fund nine times out of ten in an index fund nine times out of ten will beat the person that invests in will beat the person that invests in will beat the person that invests in individual stocks individual stocks individual stocks so if you guys are interested in so if you guys are interested in so if you guys are interested in learning how to implement a more learning how to implement a more learning how to implement a more simplified approach to investing simplified approach to investing simplified approach to investing check out our investing playlist on our check out our investing playlist on our check out our investing playlist on our channel and you can also enroll channel and you can also enroll channel and you can also enroll in our investing course that's available in our investing course that's available in our investing course that's available now our next tip now our next tip now our next tip is to automate your investments now this is to automate your investments now this is to automate your investments now this is key if you are practicing is key if you are practicing is key if you are practicing financial minimalism because we are financial minimalism because we are financial minimalism because we are talking about taking talking about taking talking about taking effort out of your investing once you effort out of your investing once you effort out of your investing once you set up your accounts set up your accounts set up your accounts once you set up how much money you're once you set up how much money you're once you set up how much money you're going to put into those accounts going to put into those accounts going to put into those accounts put it on automation so that you put it on automation so that you put it on automation so that you can focus on other things and allow your can focus on other things and allow your can focus on other things and allow your money to be working money to be working money to be working in the background that is something that in the background that is something that in the background that is something that we did and it took we did and it took we did and it took so much effort out of investing and it so much effort out of investing and it so much effort out of investing and it also took also took also took the emotions out of investing and the the emotions out of investing and the the emotions out of investing and the ability ability ability and the need to want to try to time the and the need to want to try to time the and the need to want to try to time the market market market automation is so powerful on so many automation is so powerful on so many automation is so powerful on so many different levels but it is key when you different levels but it is key when you different levels but it is key when you are practicing are practicing are practicing financial minimalism so the next tip is financial minimalism so the next tip is financial minimalism so the next tip is understanding your wants understanding your wants understanding your wants versus your needs we found this study versus your needs we found this study versus your needs we found this study that focused on the that focused on the that focused on the wasteful spending habits of americans wasteful spending habits of americans wasteful spending habits of americans the study found that the top the study found that the top the study found that the top five ways people wasted money was by five ways people wasted money was by five ways people wasted money was by throwing away leftovers or expired food throwing away leftovers or expired food throwing away leftovers or expired food buying fast food buying overpriced buying fast food buying overpriced buying fast food buying overpriced drinks drinks drinks impulse buying and eating out at impulse buying and eating out at impulse buying and eating out at restaurants with the top three reasons restaurants with the top three reasons restaurants with the top three reasons for for for wasting money being really wanting wasting money being really wanting wasting money being really wanting something something something convenience and wanting to feel good convenience and wanting to feel good convenience and wanting to feel good the study found that americans wasted an the study found that americans wasted an the study found that americans wasted an average of a hundred and thirty nine average of a hundred and thirty nine average of a hundred and thirty nine dollars a month dollars a month dollars a month with the largest wasteful purchase being with the largest wasteful purchase being with the largest wasteful purchase being dollars dollars dollars so i think what's really interesting so i think what's really interesting so i think what's really interesting about this study is that it points out about this study is that it points out about this study is that it points out inconvenience and happiness you spend inconvenience and happiness you spend inconvenience and happiness you spend more because you don't want to be more because you don't want to be more because you don't want to be inconvenienced or you spend more because inconvenienced or you spend more because inconvenienced or you spend more because you think that purchasing you think that purchasing you think that purchasing certain things will make you happy so if certain things will make you happy so if certain things will make you happy so if you can you can you can understand this and you can understand understand this and you can understand understand this and you can understand that possibly by that possibly by that possibly by pre-planning something you can avoid or pre-planning something you can avoid or pre-planning something you can avoid or eliminate that element of inconvenience eliminate that element of inconvenience eliminate that element of inconvenience so you're not wasting money so you're not wasting money so you're not wasting money and then really finding out where you and then really finding out where you and then really finding out where you can reach happiness can reach happiness can reach happiness that eliminates you having to buy that eliminates you having to buy that eliminates you having to buy something to get to that level of something to get to that level of something to get to that level of happiness happiness happiness does that expensive purse really make does that expensive purse really make does that expensive purse really make you feel happy you feel happy you feel happy or does that expensive watch really make or does that expensive watch really make or does that expensive watch really make you feel happy you feel happy you feel happy it's a matter of really doing an intake it's a matter of really doing an intake it's a matter of really doing an intake and finding out and finding out and finding out how to get to happiness and how to avoid how to get to happiness and how to avoid how to get to happiness and how to avoid those inconveniences so that you are not those inconveniences so that you are not those inconveniences so that you are not wasting your money in the process our wasting your money in the process our wasting your money in the process our next tip is to keep the number of next tip is to keep the number of next tip is to keep the number of accounts that you have accounts that you have accounts that you have low you don't want to be stressed out low you don't want to be stressed out low you don't want to be stressed out with maintaining three different with maintaining three different with maintaining three different emergency funds emergency funds emergency funds four different checking accounts five four different checking accounts five four different checking accounts five different savings of funds and different savings of funds and different savings of funds and different brokerage accounts the idea different brokerage accounts the idea different brokerage accounts the idea is you want to be able to is you want to be able to is you want to be able to track everything and you want to have track everything and you want to have track everything and you want to have everything as everything as everything as simple as possible and by keeping a simple as possible and by keeping a simple as possible and by keeping a minimal number of accounts minimal number of accounts minimal number of accounts you're better able to track them but you're better able to track them but you're better able to track them but then you're also able to catch then you're also able to catch then you're also able to catch those additional fees because by having those additional fees because by having those additional fees because by having so many different accounts all at once so many different accounts all at once so many different accounts all at once you may be getting hit with fees that go you may be getting hit with fees that go you may be getting hit with fees that go unnoticed unnoticed unnoticed so try and keep your accounts so try and keep your accounts so try and keep your accounts consolidated and to a minimum consolidated and to a minimum consolidated and to a minimum our next tip is to keep your our next tip is to keep your our next tip is to keep your subscription services subscription services subscription services to a minimum now we talked earlier about to a minimum now we talked earlier about to a minimum now we talked earlier about automating your investments automating your investments automating your investments which is a great thing to do but your which is a great thing to do but your which is a great thing to do but your subscription subscription subscription services those are also set up on an services those are also set up on an services those are also set up on an automatic payment system automatic payment system automatic payment system and you can lose track of those types of and you can lose track of those types of and you can lose track of those types of bills bills bills there are people that have subscriptions there are people that have subscriptions there are people that have subscriptions going for years going for years going for years and don't realize that they have been and don't realize that they have been and don't realize that they have been paying for those subscriptions paying for those subscriptions paying for those subscriptions so we only have two subscription so we only have two subscription so we only have two subscription services services services spotify and netflix and that's what spotify and netflix and that's what spotify and netflix and that's what we've kept it to we've kept it to we've kept it to forever it seems like it and we may even forever it seems like it and we may even forever it seems like it and we may even get rid of one get rid of one get rid of one but by keeping our subscription services but by keeping our subscription services but by keeping our subscription services to the bare minimum we are able to keep to the bare minimum we are able to keep to the bare minimum we are able to keep track of where track of where track of where all of our money is going now our last all of our money is going now our last all of our money is going now our last tip tip tip has to deal with transportation and has to deal with transportation and has to deal with transportation and owning a car owning a car owning a car a car can represent one of the biggest a car can represent one of the biggest a car can represent one of the biggest unknown bills you may have because it's unknown bills you may have because it's unknown bills you may have because it's not just the cost not just the cost not just the cost of the car but there are other financial of the car but there are other financial of the car but there are other financial obligations obligations obligations that go along with owning a car so our that go along with owning a car so our that go along with owning a car so our tips to you tips to you tips to you if you choose to buy a car buy a car if you choose to buy a car buy a car if you choose to buy a car buy a car in cash try not to finance it and in cash try not to finance it and in cash try not to finance it and get a car that meets your essential get a car that meets your essential get a car that meets your essential needs that gets you from point a to z needs that gets you from point a to z needs that gets you from point a to z we drove a dollar used mini minivan we drove a dollar used mini minivan we drove a dollar used mini minivan and it got us from point a to z and of and it got us from point a to z and of and it got us from point a to z and of course we were able to pay course we were able to pay course we were able to pay cash for it but if you do have to buy a cash for it but if you do have to buy a cash for it but if you do have to buy a car car car try to keep those two things in mind our try to keep those two things in mind our try to keep those two things in mind our other other other suggestion which may sound a little suggestion which may sound a little suggestion which may sound a little extreme extreme extreme is if you can go without a car we did is if you can go without a car we did is if you can go without a car we did not own a car for a very long time not own a car for a very long time not own a car for a very long time when we live in lisbon and maybe we'll when we live in lisbon and maybe we'll when we live in lisbon and maybe we'll go back to not owning a car again go back to not owning a car again go back to not owning a car again but if you can go without owning a car but if you can go without owning a car but if you can go without owning a car imagine imagine imagine all of those other financial obligations all of those other financial obligations all of those other financial obligations that completely disappear that completely disappear that completely disappear insurance taxes licenses insurance taxes licenses insurance taxes licenses fuel all of these other things that make fuel all of these other things that make fuel all of these other things that make your financial life more complicated and your financial life more complicated and your financial life more complicated and if you are pursuing if you are pursuing if you are pursuing financial minimalism you should be financial minimalism you should be financial minimalism you should be looking at looking at looking at every purchase that you make as another every purchase that you make as another every purchase that you make as another thing thing thing that is going to make your financial that is going to make your financial that is going to make your financial life a little bit more complicated and a life a little bit more complicated and a life a little bit more complicated and a car is definitely one of those things car is definitely one of those things car is definitely one of those things so our point with this video was to be so our point with this video was to be so our point with this video was to be able to show you able to show you able to show you how financial minimalism works out in how financial minimalism works out in how financial minimalism works out in real life real life real life these are principles that we have been these are principles that we have been these are principles that we have been going with going with going with our entire journey and we'll continue to our entire journey and we'll continue to our entire journey and we'll continue to practice them practice them practice them here in financial independence and so if here in financial independence and so if here in financial independence and so if you like this video please you like this video please you like this video please give it a thumbs up subscribe to our give it a thumbs up subscribe to our give it a thumbs up subscribe to our channel and channel and channel and join the journey you WEBVTT Kind: captions Language: en beyond the claw cast by my torch eyes an beyond the claw cast by my torch eyes an beyond the claw cast by my torch eyes an untouched darkness waiting to consume a untouched darkness waiting to consume a untouched darkness waiting to consume a little light I have enough to spare whoosh forward I silently chant wash hey whoosh forward I silently chant wash hey whoosh forward I silently chant wash hey guys this fire isn't moving the way that guys this fire isn't moving the way that guys this fire isn't moving the way that it should be and it's kind of taking me it should be and it's kind of taking me it should be and it's kind of taking me out of my element can you do something out of my element can you do something out of my element can you do something about it oh hey yeah George sorry that's about it oh hey yeah George sorry that's about it oh hey yeah George sorry that's our bad Adrian don't we have a script our bad Adrian don't we have a script our bad Adrian don't we have a script for this for this for this we sure do Chris and it's free for we sure do Chris and it's free for we sure do Chris and it's free for everyone the motion create script helps everyone the motion create script helps everyone the motion create script helps your stock fire and other VFX elements your stock fire and other VFX elements your stock fire and other VFX elements react realistically to movement oh wow react realistically to movement oh wow react realistically to movement oh wow you seem to know a lot about the script you seem to know a lot about the script you seem to know a lot about the script how does it work again let me show you how does it work again let me show you how does it work again let me show you first download and install the script in first download and install the script in first download and install the script in your After Effects scripts folder and your After Effects scripts folder and your After Effects scripts folder and then launch After Effects go to file then launch After Effects go to file then launch After Effects go to file scripts motion cream oh yeah cool now scripts motion cream oh yeah cool now scripts motion cream oh yeah cool now it's coming back to me if your VFX it's coming back to me if your VFX it's coming back to me if your VFX element is freaky go ahead and pre element is freaky go ahead and pre element is freaky go ahead and pre compose it in that pre comp add a black compose it in that pre comp add a black compose it in that pre comp add a black solid motion crane uses the puppet pin solid motion crane uses the puppet pin solid motion crane uses the puppet pin tool which generates a mesh to help that tool which generates a mesh to help that tool which generates a mesh to help that mesh get more detail we can mask out the mesh get more detail we can mask out the mesh get more detail we can mask out the black solid behind our fire asset make black solid behind our fire asset make black solid behind our fire asset make sure your fire or whatever VFX you're sure your fire or whatever VFX you're sure your fire or whatever VFX you're using stay within that black solid let's jump back into our main comp find let's jump back into our main comp find let's jump back into our main comp find the emotion crate window and click the the emotion crate window and click the the emotion crate window and click the set endpoints button this creates a new set endpoints button this creates a new set endpoints button this creates a new null object with two endpoints in the null object with two endpoints in the null object with two endpoints in the after effects controls window drag the after effects controls window drag the after effects controls window drag the bottom endpoint to the bottom of your bottom endpoint to the bottom of your bottom endpoint to the bottom of your effect and the top endpoint to the top effect and the top endpoint to the top effect and the top endpoint to the top of the effect well yeah now we can of the effect well yeah now we can of the effect well yeah now we can create some Knolls we usually suggest create some Knolls we usually suggest create some Knolls we usually suggest going no lower than three Knolls and no going no lower than three Knolls and no going no lower than three Knolls and no higher than six or seven depending on higher than six or seven depending on higher than six or seven depending on the size of your effect we'll go with the size of your effect we'll go with the size of your effect we'll go with five and hit create Knolls we can see five and hit create Knolls we can see five and hit create Knolls we can see our five nulls have now been generated our five nulls have now been generated our five nulls have now been generated let's just ignore the wide element setup let's just ignore the wide element setup let's just ignore the wide element setup for now we'll swing back to that later for now we'll swing back to that later for now we'll swing back to that later wind wind turbulence and delay can all wind wind turbulence and delay can all wind wind turbulence and delay can all be changed now or later so we'll just be changed now or later so we'll just be changed now or later so we'll just leave it at the default for now with our leave it at the default for now with our leave it at the default for now with our pre-comp selected let's add some puppet pre-comp selected let's add some puppet pre-comp selected let's add some puppet pin points to minimize any potential pin points to minimize any potential pin points to minimize any potential distortion let's put the puppet ends at distortion let's put the puppet ends at distortion let's put the puppet ends at the top left of each one of the nulls the top left of each one of the nulls the top left of each one of the nulls generated except for the end point generated except for the end point generated except for the end point select your null select your null select your null once you've done that hit generate the once you've done that hit generate the once you've done that hit generate the Noles have been hidden the two nulls we Noles have been hidden the two nulls we Noles have been hidden the two nulls we can still see are the controls null in can still see are the controls null in can still see are the controls null in the source null the source know is where the source null the source know is where the source null the source know is where all movement will be generated from all movement will be generated from all movement will be generated from while the controls no lets you adjust while the controls no lets you adjust while the controls no lets you adjust the wind and delay settings you can the wind and delay settings you can the wind and delay settings you can paste tracking data to your source node paste tracking data to your source node paste tracking data to your source node or any keyframe data here we'll add a or any keyframe data here we'll add a or any keyframe data here we'll add a wiggle expression to the source nulls so wiggle expression to the source nulls so wiggle expression to the source nulls so you can see how things are working hey you can see how things are working hey you can see how things are working hey pretty awesome let's check out the pretty awesome let's check out the pretty awesome let's check out the control bill the wind function allows control bill the wind function allows control bill the wind function allows your effect to react as if there's wind your effect to react as if there's wind your effect to react as if there's wind blowing from either direction wind blowing from either direction wind blowing from either direction wind turbulence is similar Oh an inconsistent turbulence is similar Oh an inconsistent turbulence is similar Oh an inconsistent wind and delay is how long the reaction wind and delay is how long the reaction wind and delay is how long the reaction time takes play with these settings to time takes play with these settings to time takes play with these settings to get the look that you want and that's get the look that you want and that's get the look that you want and that's how the motion create script works we're how the motion create script works we're how the motion create script works we're gonna start including it in a lot of our gonna start including it in a lot of our gonna start including it in a lot of our tutorials so make sure to keep an eye tutorials so make sure to keep an eye tutorials so make sure to keep an eye out for that the script was based off an out for that the script was based off an out for that the script was based off an amazing tutorial by Ren Waichman we'll amazing tutorial by Ren Waichman we'll amazing tutorial by Ren Waichman we'll make sure to put a link to that tutorial make sure to put a link to that tutorial make sure to put a link to that tutorial below as well below as well below as well thanks friend alright if you stuck thanks friend alright if you stuck thanks friend alright if you stuck around you're probably wanting to know around you're probably wanting to know around you're probably wanting to know how the wide elements setup works this how the wide elements setup works this how the wide elements setup works this feature is for effects with a wide base feature is for effects with a wide base feature is for effects with a wide base so something like a ground fire element so something like a ground fire element so something like a ground fire element instead of a torch or a candle flame do instead of a torch or a candle flame do instead of a torch or a candle flame do the same process where you generate the the same process where you generate the the same process where you generate the nulls and apply the puppet pinpoints on nulls and apply the puppet pinpoints on nulls and apply the puppet pinpoints on the y-axis the white element setups will the y-axis the white element setups will the y-axis the white element setups will allow us to add points on the x-axis as allow us to add points on the x-axis as allow us to add points on the x-axis as well after you apply the puppet pins hit well after you apply the puppet pins hit well after you apply the puppet pins hit the wide elements setup checkbox we now the wide elements setup checkbox we now the wide elements setup checkbox we now have a wide element set of null objects have a wide element set of null objects have a wide element set of null objects that null contains two points same as that null contains two points same as that null contains two points same as the end point null move the base left to the end point null move the base left to the end point null move the base left to the bottom left of the effect and move the bottom left of the effect and move the bottom left of the effect and move to base right to the bottom right make to base right to the bottom right make to base right to the bottom right make sure you have the effect pre comp sure you have the effect pre comp sure you have the effect pre comp selected and add four new puppet pin selected and add four new puppet pin selected and add four new puppet pin points starting from the left try to add points starting from the left try to add points starting from the left try to add the first point at the furthest possible the first point at the furthest possible the first point at the furthest possible corner on the left side the next point corner on the left side the next point corner on the left side the next point is going to be in between that point and is going to be in between that point and is going to be in between that point and the center point and then the next point the center point and then the next point the center point and then the next point is going to be between the center and is going to be between the center and is going to be between the center and the right corner and then the last is the right corner and then the last is the right corner and then the last is the right corner that way they are all the right corner that way they are all the right corner that way they are all pretty evenly spaced go ahead and hit pretty evenly spaced go ahead and hit pretty evenly spaced go ahead and hit generate you'll see the effect moved to generate you'll see the effect moved to generate you'll see the effect moved to actually new pinpoints there might be actually new pinpoints there might be actually new pinpoints there might be some distortion but combining multiple some distortion but combining multiple some distortion but combining multiple effects and playing with these settings effects and playing with these settings effects and playing with these settings will help with that your control dole will help with that your control dole will help with that your control dole and source don't have these same and source don't have these same and source don't have these same functions as before so don't worry about functions as before so don't worry about functions as before so don't worry about those we love this tool and we are so those we love this tool and we are so those we love this tool and we are so happy to have it as part of our arsenal happy to have it as part of our arsenal happy to have it as part of our arsenal again thanks to rent for coming up with again thanks to rent for coming up with again thanks to rent for coming up with the concept and thanks to Nate for the concept and thanks to Nate for the concept and thanks to Nate for developing an incredible script yep you developing an incredible script yep you developing an incredible script yep you guys Rock all right everybody thanks for guys Rock all right everybody thanks for guys Rock all right everybody thanks for joining us I hope you enjoy the script joining us I hope you enjoy the script joining us I hope you enjoy the script and we'll see y'all next time and we'll see y'all next time and we'll see y'all next time winter creator lady crazy [Music] [Music] [Music] WEBVTT Kind: captions Language: en because in general my plan is really because in general my plan is really because in general my plan is really just to save up a lot just to save up a lot just to save up a lot and to set aside money a lot without and to set aside money a lot without and to set aside money a lot without compromising compromising compromising enjoying my twenties and my thirties hi everyone it's charm again from ready hi everyone it's charm again from ready hi everyone it's charm again from ready to dope philippines a channel about to dope philippines a channel about to dope philippines a channel about personal finance entrepreneurship and personal finance entrepreneurship and personal finance entrepreneurship and adulting how-tos adulting how-tos adulting how-tos last week we talked about the fire last week we talked about the fire last week we talked about the fire movement and how it works movement and how it works movement and how it works this week as promised we're going to be this week as promised we're going to be this week as promised we're going to be talking about the variety or types of talking about the variety or types of talking about the variety or types of fire fire fire fire again means financial independence fire again means financial independence fire again means financial independence retire retire retire early the five types i'm going to be early the five types i'm going to be early the five types i'm going to be talking about today are talking about today are talking about today are guidelines of versions that came from guidelines of versions that came from guidelines of versions that came from people in the fire community people in the fire community people in the fire community because as i mentioned financial because as i mentioned financial because as i mentioned financial independence and retirement can mean independence and retirement can mean independence and retirement can mean different things to different people different things to different people different things to different people you might want to fire because maybe you you might want to fire because maybe you you might want to fire because maybe you hate your job hate your job hate your job or if that's not the case maybe you just or if that's not the case maybe you just or if that's not the case maybe you just want more time want more time want more time to spend for your family or to pursue to spend for your family or to pursue to spend for your family or to pursue your passions or even travel your passions or even travel your passions or even travel the thought here is not to conform to the thought here is not to conform to the thought here is not to conform to one type of fire one type of fire one type of fire but get ideas from different types of but get ideas from different types of but get ideas from different types of fire fire fire and see how you want to retire so again and see how you want to retire so again and see how you want to retire so again it's all about it's all about it's all about looking for what works for you hopefully looking for what works for you hopefully looking for what works for you hopefully these examples of fire will show you these examples of fire will show you these examples of fire will show you that it isn't really as rigid as it that it isn't really as rigid as it that it isn't really as rigid as it seems seems seems and later on i'll also be sharing to you and later on i'll also be sharing to you and later on i'll also be sharing to you guys how i plan to retire early guys how i plan to retire early guys how i plan to retire early just some contacts on the figures i'll just some contacts on the figures i'll just some contacts on the figures i'll be mentioning i haven't really seen any be mentioning i haven't really seen any be mentioning i haven't really seen any examples on the different types of fire examples on the different types of fire examples on the different types of fire applied in the philippines applied in the philippines applied in the philippines so the figures and numbers i'll be so the figures and numbers i'll be so the figures and numbers i'll be giving you guys will be giving you guys will be giving you guys will be loosely based on american examples and a loosely based on american examples and a loosely based on american examples and a quick survey i did on my social media quick survey i did on my social media quick survey i did on my social media although i did find a survey from the although i did find a survey from the although i did find a survey from the psa psa psa saying that to saying that to saying that to monthly income for a family of five monthly income for a family of five monthly income for a family of five is the range of middle class here in the is the range of middle class here in the is the range of middle class here in the philippines philippines philippines that's saying that the lower middle that's saying that the lower middle that's saying that the lower middle class class class individual lives off of pesos a individual lives off of pesos a individual lives off of pesos a month month month so in the examples in the next few so in the examples in the next few so in the examples in the next few minutes i will be arranging it from minutes i will be arranging it from minutes i will be arranging it from to but it's only for a to but it's only for a to but it's only for a single person single person single person i'm not including kids or responsibility i'm not including kids or responsibility i'm not including kids or responsibility to to to family and relatives because there are family and relatives because there are family and relatives because there are just too many factors to that just too many factors to that just too many factors to that so let's stick to thinking that these so let's stick to thinking that these so let's stick to thinking that these examples are for a single individual examples are for a single individual examples are for a single individual and with that said let's start the video okay so the first type of fire is the okay so the first type of fire is the okay so the first type of fire is the part-time fire part-time fire part-time fire or more commonly known in the western or more commonly known in the western or more commonly known in the western areas as the barista fire areas as the barista fire areas as the barista fire this is when you supplement your this is when you supplement your this is when you supplement your retirement retirement retirement with a part-time job and usually that's with a part-time job and usually that's with a part-time job and usually that's also where you get maybe health benefits also where you get maybe health benefits also where you get maybe health benefits and other government contributions and other government contributions and other government contributions it's called barista fire in the u.s it's called barista fire in the u.s it's called barista fire in the u.s because it's linked to being a because it's linked to being a because it's linked to being a part-time starbucks barista because it part-time starbucks barista because it part-time starbucks barista because it provides health insurance provides health insurance provides health insurance and some benefits so here in the and some benefits so here in the and some benefits so here in the philippines someone suggested philippines someone suggested philippines someone suggested that maybe it's call center fire that maybe it's call center fire that maybe it's call center fire because they found that there are call because they found that there are call because they found that there are call centers that provide part-timers centers that provide part-timers centers that provide part-timers with benefits and even health insurance with benefits and even health insurance with benefits and even health insurance so for example you want to retire with so for example you want to retire with so for example you want to retire with pesos a month pesos a month pesos a month so let's say you will be earning so let's say you will be earning so let's say you will be earning pesos from your investments pesos from your investments pesos from your investments as given as an example in our previous as given as an example in our previous as given as an example in our previous video video video that would give you an fi number of six that would give you an fi number of six that would give you an fi number of six million pesos so if you're earning million pesos so if you're earning million pesos so if you're earning twenty thousand a month twenty thousand a month twenty thousand a month from your six million nest egg you still from your six million nest egg you still from your six million nest egg you still lack ten thousand pesos and mostly you lack ten thousand pesos and mostly you lack ten thousand pesos and mostly you can supplement that with a part-time job can supplement that with a part-time job can supplement that with a part-time job so twenty thousand from your investments so twenty thousand from your investments so twenty thousand from your investments and from your part-time job and from your part-time job and from your part-time job would give you the pesos a month would give you the pesos a month would give you the pesos a month you want for your expenses you want for your expenses you want for your expenses so if you guys want to know how to so if you guys want to know how to so if you guys want to know how to compute all of these then make sure to compute all of these then make sure to compute all of these then make sure to watch the previous video watch the previous video watch the previous video so the semi-retirement age goal for this so the semi-retirement age goal for this so the semi-retirement age goal for this is around is around is around to years old this is also perfect for to years old this is also perfect for to years old this is also perfect for people who people who people who knows that they wouldn't really be happy knows that they wouldn't really be happy knows that they wouldn't really be happy not working or not really doing anything not working or not really doing anything not working or not really doing anything during retirement during retirement during retirement and they still want to do something and they still want to do something and they still want to do something productive and something that earns them productive and something that earns them productive and something that earns them even just a little bit of money even just a little bit of money even just a little bit of money as long as they're maybe pursuing their as long as they're maybe pursuing their as long as they're maybe pursuing their passion so number two passion so number two passion so number two is ghost fire and coast fire basically is ghost fire and coast fire basically is ghost fire and coast fire basically means you're coasting your way to means you're coasting your way to means you're coasting your way to retirement retirement retirement this is when you have enough money this is when you have enough money this is when you have enough money invested at an invested at an invested at an early age that will set you up to a early age that will set you up to a early age that will set you up to a comfortable retirement in your s or comfortable retirement in your s or comfortable retirement in your s or s s s since you have more time before since you have more time before since you have more time before retirement you usually have to save just retirement you usually have to save just retirement you usually have to save just a smaller amount a smaller amount a smaller amount because of the magic of compounding because of the magic of compounding because of the magic of compounding interest so when you reach that amount interest so when you reach that amount interest so when you reach that amount that you know that you're set when you that you know that you're set when you that you know that you're set when you retire retire retire that period you can enjoy whatever you that period you can enjoy whatever you that period you can enjoy whatever you earn and you don't have to think about earn and you don't have to think about earn and you don't have to think about saving saving saving so when you reach that amount of money so when you reach that amount of money so when you reach that amount of money invested that you know invested that you know invested that you know you will be okay when you retire you you will be okay when you retire you you will be okay when you retire you don't really have to save or invest don't really have to save or invest don't really have to save or invest anymore anymore anymore during the time you're just waiting for during the time you're just waiting for during the time you're just waiting for retirement so you're coasting through retirement so you're coasting through retirement so you're coasting through retirement retirement retirement so let me give you guys an example if so let me give you guys an example if so let me give you guys an example if you guys are kind of confused you guys are kind of confused you guys are kind of confused so say you want a month when you so say you want a month when you so say you want a month when you retire so your fi number would still be retire so your fi number would still be retire so your fi number would still be million million million instead of needing to save up . instead of needing to save up . instead of needing to save up . million million million as mentioned in the previous video you as mentioned in the previous video you as mentioned in the previous video you would now need to save just would now need to save just would now need to save just by the age of and then after that you by the age of and then after that you by the age of and then after that you can coast can coast can coast from to to retirement from to to retirement from to to retirement so meaning from years old to years so meaning from years old to years so meaning from years old to years old old old you don't really need to keep on saving you don't really need to keep on saving you don't really need to keep on saving and investing because you've already set and investing because you've already set and investing because you've already set aside enough money aside enough money aside enough money that you know by the age of you're that you know by the age of you're that you know by the age of you're set and you're good to retire set and you're good to retire set and you're good to retire so for this it doesn't give you the so for this it doesn't give you the so for this it doesn't give you the literal sense of retiring early because literal sense of retiring early because literal sense of retiring early because you still have to work you still have to work you still have to work because there are people who prefer to because there are people who prefer to because there are people who prefer to still work until they're but they still work until they're but they still work until they're but they don't really have to worry about saving don't really have to worry about saving don't really have to worry about saving and investing anymore and investing anymore and investing anymore all their salary they can spend it all their salary they can spend it all their salary they can spend it whatever and however they want whatever and however they want whatever and however they want so the typical retirement age for this so the typical retirement age for this so the typical retirement age for this is still around or s is still around or s is still around or s but i hope that you guys don't but i hope that you guys don't but i hope that you guys don't understand why it's still considered understand why it's still considered understand why it's still considered retiring early retiring early retiring early so the next is a lean fire and the idea so the next is a lean fire and the idea so the next is a lean fire and the idea of lean fire is to live off of lean fire is to live off of lean fire is to live off less than the average person it has a less than the average person it has a less than the average person it has a strictest savings and minimalist strictest savings and minimalist strictest savings and minimalist lifestyle lifestyle lifestyle and this is where people usually apply and this is where people usually apply and this is where people usually apply the term geo arbitrage the term geo arbitrage the term geo arbitrage so jira arbitrage came from the book so jira arbitrage came from the book so jira arbitrage came from the book four hour work week by tim ferriss four hour work week by tim ferriss four hour work week by tim ferriss and the idea is for most westerners who and the idea is for most westerners who and the idea is for most westerners who are earning you know let's say dollars are earning you know let's say dollars are earning you know let's say dollars they live in a lower cost of living area they live in a lower cost of living area they live in a lower cost of living area like maybe living in a lower cost state like maybe living in a lower cost state like maybe living in a lower cost state or going to live in a country like bali or going to live in a country like bali or going to live in a country like bali or the philippines but in the or the philippines but in the or the philippines but in the philippines you can still apply this philippines you can still apply this philippines you can still apply this if one maybe you are working for clients if one maybe you are working for clients if one maybe you are working for clients abroad abroad abroad like you're freelancing and you're like you're freelancing and you're like you're freelancing and you're earning still in usd earning still in usd earning still in usd and maybe also if you are earning from and maybe also if you are earning from and maybe also if you are earning from companies companies companies in the metro but you are living in the in the metro but you are living in the in the metro but you are living in the provinces or the outskirts of the metro provinces or the outskirts of the metro provinces or the outskirts of the metro so with the lean fire you're not exactly so with the lean fire you're not exactly so with the lean fire you're not exactly living the most living the most living the most comfortable and lavish lifestyle because comfortable and lavish lifestyle because comfortable and lavish lifestyle because again you want to retire again you want to retire again you want to retire off living a frugal lifestyle an example off living a frugal lifestyle an example off living a frugal lifestyle an example would be something similar to what i would be something similar to what i would be something similar to what i gave last video gave last video gave last video um you want pesos a month that um you want pesos a month that um you want pesos a month that means your fi number means your fi number means your fi number is million pesos and the retirement is million pesos and the retirement is million pesos and the retirement age is around age is around age is around to years old the next one is regular to years old the next one is regular to years old the next one is regular fire and it's the most traditional fire and it's the most traditional fire and it's the most traditional concept of fire concept of fire concept of fire it's the basic form of fire as mentioned it's the basic form of fire as mentioned it's the basic form of fire as mentioned and explained in my previous video and explained in my previous video and explained in my previous video so for the regular fire in the so for the regular fire in the so for the regular fire in the philippines it's usually around to philippines it's usually around to philippines it's usually around to pesos a month pesos a month pesos a month so for example you want to fire at so for example you want to fire at so for example you want to fire at pesos per month your fire number pesos per month your fire number pesos per month your fire number would now become million pesos with would now become million pesos with would now become million pesos with the goal of retiring between to the goal of retiring between to the goal of retiring between to years old years old years old and lastly is fat fire if you notice and lastly is fat fire if you notice and lastly is fat fire if you notice lean fire regular fire and fat lean fire regular fire and fat lean fire regular fire and fat fires are a spectrum of the traditional fires are a spectrum of the traditional fires are a spectrum of the traditional fire fire fire people who pursue fat fire are usually people who pursue fat fire are usually people who pursue fat fire are usually high earners high earners high earners but also they want to retire early but also they want to retire early but also they want to retire early without having to sacrifice without having to sacrifice without having to sacrifice their lifestyle they want to retire with their lifestyle they want to retire with their lifestyle they want to retire with a more comfortable a more comfortable a more comfortable even luxurious lifestyle and maybe even even luxurious lifestyle and maybe even even luxurious lifestyle and maybe even live live live in high cost areas like the big cities in high cost areas like the big cities in high cost areas like the big cities so the range for fat fire would be so the range for fat fire would be so the range for fat fire would be around to pesos a month around to pesos a month around to pesos a month so let's take for example pesos so let's take for example pesos so let's take for example pesos per month per month per month your fi number would be million pesos your fi number would be million pesos your fi number would be million pesos and you would expect a retire between and you would expect a retire between and you would expect a retire between to to to so as mentioned again earlier you would so as mentioned again earlier you would so as mentioned again earlier you would really need to have a higher income really need to have a higher income really need to have a higher income okay so to review we have the part-time okay so to review we have the part-time okay so to review we have the part-time fire or the barista fire fire or the barista fire fire or the barista fire coast fire lean fire regular coast fire lean fire regular coast fire lean fire regular fire and fat fire so which of the five fire and fat fire so which of the five fire and fat fire so which of the five do you think i'm trying to pursue do you think i'm trying to pursue do you think i'm trying to pursue emphasis emphasis emphasis on the word trying so comment down below on the word trying so comment down below on the word trying so comment down below before we move on to that part before we move on to that part before we move on to that part but yeah stay if you guys are interested but yeah stay if you guys are interested but yeah stay if you guys are interested on my plans on my plans on my plans to fire by the age of to fire by the age of to fire by the age of this is how i plan to turn . million this is how i plan to turn . million this is how i plan to turn . million pesos pesos pesos of savings to million pesos of nest of savings to million pesos of nest of savings to million pesos of nest egg i can retire early out of egg i can retire early out of egg i can retire early out of okay i will be going for fat fire and okay i will be going for fat fire and okay i will be going for fat fire and maybe supplement it maybe supplement it maybe supplement it with the barista or part-time fire if with the barista or part-time fire if with the barista or part-time fire if you guys haven't seen my what i spend in you guys haven't seen my what i spend in you guys haven't seen my what i spend in a week video check that out a week video check that out a week video check that out but i spent around to pesos a but i spent around to pesos a but i spent around to pesos a month month month as a breadwinner so i set as my as a breadwinner so i set as my as a breadwinner so i set as my ideal monthly income ideal monthly income ideal monthly income from my investments when i retire so from my investments when i retire so from my investments when i retire so that makes my fi number that makes my fi number that makes my fi number times times equals million times times equals million times times equals million pesos and i want to retire by pesos and i want to retire by pesos and i want to retire by so i started my fire journey back when i so i started my fire journey back when i so i started my fire journey back when i was and that was in was and that was in was and that was in and i plan to retire as i said by and i plan to retire as i said by and i plan to retire as i said by so right now if you count at the end of so right now if you count at the end of so right now if you count at the end of i have around years left okay i want i have around years left okay i want i have around years left okay i want to break down how i plan to have to break down how i plan to have to break down how i plan to have pesos as passive income pesos as passive income pesos as passive income when i reach years old i'm going to when i reach years old i'm going to when i reach years old i'm going to be mainly investing it be mainly investing it be mainly investing it into direct stocks and also real estate into direct stocks and also real estate into direct stocks and also real estate but i do have some funds so let's talk but i do have some funds so let's talk but i do have some funds so let's talk about that first about that first about that first i'm not gonna go into detail for each i'm not gonna go into detail for each i'm not gonna go into detail for each fund but basically i have fund but basically i have fund but basically i have four funds right now and those are four funds right now and those are four funds right now and those are because because because of investment linked insurance as well of investment linked insurance as well of investment linked insurance as well as i have a reit fund and as i have a reit fund and as i have a reit fund and through those i will be spending around through those i will be spending around through those i will be spending around million pesos and the return or million pesos and the return or million pesos and the return or the value it will be when i'm will be the value it will be when i'm will be the value it will be when i'm will be around . million around . million around . million so it's not a lot because again i don't so it's not a lot because again i don't so it's not a lot because again i don't really treat them really treat them really treat them as just plainly investments but rather as just plainly investments but rather as just plainly investments but rather they're really treated as insurance i they're really treated as insurance i they're really treated as insurance i might add some funds in the future but might add some funds in the future but might add some funds in the future but for now i don't really have plans for it for now i don't really have plans for it for now i don't really have plans for it yet and i'm investing yet and i'm investing yet and i'm investing mainly in the stock market and real mainly in the stock market and real mainly in the stock market and real estate estate estate so let's talk about my plans for my so let's talk about my plans for my so let's talk about my plans for my stock portfolio and as well as my real stock portfolio and as well as my real stock portfolio and as well as my real estate portfolio estate portfolio estate portfolio so for my stock market portfolio as i so for my stock market portfolio as i so for my stock market portfolio as i mentioned in my goals video mentioned in my goals video mentioned in my goals video i plan to have it at pesos by i plan to have it at pesos by i plan to have it at pesos by the end of the year the end of the year the end of the year and since i am a swing trader which is and since i am a swing trader which is and since i am a swing trader which is kind of in the middle of a day trader kind of in the middle of a day trader kind of in the middle of a day trader um which is a short-term trader and a um which is a short-term trader and a um which is a short-term trader and a long-term trader so i'm kind of in long-term trader so i'm kind of in long-term trader so i'm kind of in between between between i have a target return of annually i have a target return of annually i have a target return of annually and that's kind of on me to do that and that's kind of on me to do that and that's kind of on me to do that that's the target that i set for myself that's the target that i set for myself that's the target that i set for myself so it's not too conservative but it's so it's not too conservative but it's so it's not too conservative but it's also not also not also not so aggressive so and so aggressive so and so aggressive so and i have to put in pesos every i have to put in pesos every i have to put in pesos every month month month for the rest of the time that i will be for the rest of the time that i will be for the rest of the time that i will be investing until i am . investing until i am . investing until i am . of course if i have more funds then it of course if i have more funds then it of course if i have more funds then it would be best to put in would be best to put in would be best to put in earlier than later so again that's earlier than later so again that's earlier than later so again that's around more years around more years around more years and for the total capital that's gonna and for the total capital that's gonna and for the total capital that's gonna be around four million five hundred be around four million five hundred be around four million five hundred eighty thousand pesos eighty thousand pesos eighty thousand pesos but by the time i'm i expect it to but by the time i'm i expect it to but by the time i'm i expect it to grow to grow to grow to million pesos which will million pesos which will million pesos which will yield me based on the four percent rule yield me based on the four percent rule yield me based on the four percent rule forty five thousand pesos a month or forty five thousand pesos a month or forty five thousand pesos a month or five hundred forty thousand pesos a year five hundred forty thousand pesos a year five hundred forty thousand pesos a year okay now for my real estate portfolio or okay now for my real estate portfolio or okay now for my real estate portfolio or investment plans i basically want to investment plans i basically want to investment plans i basically want to invest in at least invest in at least invest in at least two properties first property is a two properties first property is a two properties first property is a condominium condominium condominium which we bought last year and we expect which we bought last year and we expect which we bought last year and we expect to start earning from it maybe around to start earning from it maybe around to start earning from it maybe around or . it's a studio condominium that or . it's a studio condominium that or . it's a studio condominium that we we we bought for million pesos and we expect bought for million pesos and we expect bought for million pesos and we expect to have it rented out at at least to have it rented out at at least to have it rented out at at least pesos or net pesos from it pesos or net pesos from it pesos or net pesos from it every month so that's around percent every month so that's around percent every month so that's around percent annual return annual return annual return it will roi in years that's hopefully it will roi in years that's hopefully it will roi in years that's hopefully around or around or around or and i still have around three to and i still have around three to and i still have around three to four years until retirement four years until retirement four years until retirement so the money that i earned from those so the money that i earned from those so the money that i earned from those years i will save up for my second years i will save up for my second years i will save up for my second property the second property that i hope property the second property that i hope property the second property that i hope to buy to buy to buy or to build is either a duplex or a or to build is either a duplex or a or to build is either a duplex or a single detached single detached single detached that will be around million pesos that will be around million pesos that will be around million pesos and i aim to earn around pesos a and i aim to earn around pesos a and i aim to earn around pesos a month for that month for that month for that which is a . annual return which is a . annual return which is a . annual return so i plan to start this around so so i plan to start this around so so i plan to start this around so just by the time that i will be renting just by the time that i will be renting just by the time that i will be renting out the condo out the condo out the condo so that means we won't be paying out of so that means we won't be paying out of so that means we won't be paying out of pocket costs pocket costs pocket costs for the condos loan anymore so hopefully for the condos loan anymore so hopefully for the condos loan anymore so hopefully we can focus on the second property we can focus on the second property we can focus on the second property so if we start building or if we buy so if we start building or if we buy so if we start building or if we buy this by hopefully we can have it this by hopefully we can have it this by hopefully we can have it rented out rented out rented out by . now it will roi by . now it will roi by . now it will roi in years or a little shy of years in years or a little shy of years in years or a little shy of years so that means that it will roi so that means that it will roi so that means that it will roi in which is two years short i will in which is two years short i will in which is two years short i will be be be then so that's why i mentioned earlier then so that's why i mentioned earlier then so that's why i mentioned earlier that whatever that whatever that whatever income will get from the condo the extra income will get from the condo the extra income will get from the condo the extra income will get from that income will get from that income will get from that is what we will supplement the paying is what we will supplement the paying is what we will supplement the paying down of the loans for the down of the loans for the down of the loans for the house so for the two properties that's a house so for the two properties that's a house so for the two properties that's a total of around million pesos total of around million pesos total of around million pesos but i hope to not really shell out money but i hope to not really shell out money but i hope to not really shell out money for these for these for these because i plan for them to roi before i because i plan for them to roi before i because i plan for them to roi before i retire retire retire so they become self-sufficient so they become self-sufficient so they become self-sufficient properties that after properties that after properties that after they roi they will give me passive they roi they will give me passive they roi they will give me passive income month to month income month to month income month to month so the total value for these when i so the total value for these when i so the total value for these when i retire will hopefully be around retire will hopefully be around retire will hopefully be around or million pesos because real estate or million pesos because real estate or million pesos because real estate appreciates appreciates appreciates and they will yield me pesos a and they will yield me pesos a and they will yield me pesos a month month month again that's pesos for the condo again that's pesos for the condo again that's pesos for the condo and pesos for the duplex slash and pesos for the duplex slash and pesos for the duplex slash single detached home so with the stock single detached home so with the stock single detached home so with the stock market massive income of pesos a market massive income of pesos a market massive income of pesos a month month month and the real estate passive income of and the real estate passive income of and the real estate passive income of passes a month passes a month passes a month i would already reach my goal of having i would already reach my goal of having i would already reach my goal of having pesos a month pesos a month pesos a month but i still might have some business but i still might have some business but i still might have some business income or dividends income or dividends income or dividends or residual income and for those i kind or residual income and for those i kind or residual income and for those i kind of plan to treat them as bonuses of plan to treat them as bonuses of plan to treat them as bonuses i'm not really going to account for them i'm not really going to account for them i'm not really going to account for them because i don't know how stable they can because i don't know how stable they can because i don't know how stable they can be be be but if they're there then good for me i but if they're there then good for me i but if they're there then good for me i will treat it as my bonus fund now as will treat it as my bonus fund now as will treat it as my bonus fund now as you notice you notice you notice i don't reach the million fi number i don't reach the million fi number i don't reach the million fi number mostly because i'm also being mostly because i'm also being mostly because i'm also being conservative of the appreciation of the conservative of the appreciation of the conservative of the appreciation of the real estate real estate real estate but again the fire movement's rules but again the fire movement's rules but again the fire movement's rules especially the four percent rule especially the four percent rule especially the four percent rule are based on performance with the bonds are based on performance with the bonds are based on performance with the bonds or stocks or or stocks or or stocks or both so here in my investment plan both so here in my investment plan both so here in my investment plan i inject some real estate because as i i inject some real estate because as i i inject some real estate because as i mentioned mentioned mentioned in my previous video real estate can in my previous video real estate can in my previous video real estate can earn you more and can yield you more earn you more and can yield you more earn you more and can yield you more returns but also with real estate please returns but also with real estate please returns but also with real estate please note that there is more risk because note that there is more risk because note that there is more risk because all your investment is funneled into one all your investment is funneled into one all your investment is funneled into one property unlike property unlike property unlike stocks where you can really diversify stocks where you can really diversify stocks where you can really diversify your portfolio your portfolio your portfolio so if you notice my retirement plan so if you notice my retirement plan so if you notice my retirement plan doesn't really conform to the doesn't really conform to the doesn't really conform to the rules of fire because fire doesn't rules of fire because fire doesn't rules of fire because fire doesn't really talk about investing in real really talk about investing in real really talk about investing in real estate because there's so many estate because there's so many estate because there's so many things that go into it like location and things that go into it like location and things that go into it like location and the market rates and all of that and the market rates and all of that and the market rates and all of that and these figures are just rough numbers these figures are just rough numbers these figures are just rough numbers there are so many factors that might there are so many factors that might there are so many factors that might affect it like market condition affect it like market condition affect it like market condition and my income my expenses my future and my income my expenses my future and my income my expenses my future family family family so i just use this as a loose guide not so i just use this as a loose guide not so i just use this as a loose guide not really a strict rule really a strict rule really a strict rule because in general my plan is really because in general my plan is really because in general my plan is really just to save up a lot and to set aside just to save up a lot and to set aside just to save up a lot and to set aside money a lot without compromising money a lot without compromising money a lot without compromising enjoying my twenties and my thirties so enjoying my twenties and my thirties so enjoying my twenties and my thirties so some final thoughts that i want to share some final thoughts that i want to share some final thoughts that i want to share to you guys to you guys to you guys i know that these numbers might sound i know that these numbers might sound i know that these numbers might sound impossible and intimidating and they are impossible and intimidating and they are impossible and intimidating and they are also really intimidating to me and also really intimidating to me and also really intimidating to me and that's why i gave myself that's why i gave myself that's why i gave myself years to do this most of the people years to do this most of the people years to do this most of the people who who who adapt the fire movement give themselves adapt the fire movement give themselves adapt the fire movement give themselves years or years years or years years or years but i know i'm not gonna get there in but i know i'm not gonna get there in but i know i'm not gonna get there in that short period of time that short period of time that short period of time so that's why i aimed for which is so that's why i aimed for which is so that's why i aimed for which is pretty conservative i feel like i can pretty conservative i feel like i can pretty conservative i feel like i can get there if i just become more get there if i just become more get there if i just become more disciplined disciplined disciplined and control my spendings and my savings and control my spendings and my savings and control my spendings and my savings properly properly properly so in the meantime i have been expanding so in the meantime i have been expanding so in the meantime i have been expanding my knowledge my knowledge my knowledge and investing and business and and investing and business and and investing and business and leveraging money leveraging money leveraging money and also trying to have as many sources and also trying to have as many sources and also trying to have as many sources of income as i can of income as i can of income as i can i just wanted to share to you guys that i just wanted to share to you guys that i just wanted to share to you guys that planning for retirement planning for retirement planning for retirement is really flexible and it really depends is really flexible and it really depends is really flexible and it really depends on you on you on you and you can find your own mix of diverse and you can find your own mix of diverse and you can find your own mix of diverse investments where you can put your money investments where you can put your money investments where you can put your money to reach your desired monthly passive to reach your desired monthly passive to reach your desired monthly passive income income income okay so i hope that you guys enjoyed okay so i hope that you guys enjoyed okay so i hope that you guys enjoyed that video you guys learned something that video you guys learned something that video you guys learned something and also that you're excited to plan for and also that you're excited to plan for and also that you're excited to plan for retirement even if it's retirement even if it's retirement even if it's far away or even if you don't plan to far away or even if you don't plan to far away or even if you don't plan to retire retire retire early if you like this video then please early if you like this video then please early if you like this video then please don't forget to hit don't forget to hit don't forget to hit like and subscribe to the channel ring like and subscribe to the channel ring like and subscribe to the channel ring the notification bell so you get the notification bell so you get the notification bell so you get notified every time i upload another notified every time i upload another notified every time i upload another video video video and again i know that adulting is and again i know that adulting is and again i know that adulting is already hard but personal finance already hard but personal finance already hard but personal finance doesn't have to be doesn't have to be doesn't have to be this is charm from reddit adult this is charm from reddit adult this is charm from reddit adult philippines and i will see you on my philippines and i will see you on my philippines and i will see you on my next video this week we're going to be talking this week we're going to be talking this week we're going to be talking about the variety WEBVTT Kind: captions Language: en if i asked you today how much would you if i asked you today how much would you if i asked you today how much would you need to retire need to retire need to retire are you going to say million are you going to say million are you going to say million million million million million hi everyone this is charm again from hi everyone this is charm again from hi everyone this is charm again from reddit adult philippines a channel about reddit adult philippines a channel about reddit adult philippines a channel about personal finance entrepreneurship and personal finance entrepreneurship and personal finance entrepreneurship and adulting how-to's adulting how-to's adulting how-to's today we're gonna be talking about the today we're gonna be talking about the today we're gonna be talking about the fire movement fire movement fire movement i didn't realize how unpopular it was in i didn't realize how unpopular it was in i didn't realize how unpopular it was in the philippines until i talked to some the philippines until i talked to some the philippines until i talked to some people people people in the personal finance community and in the personal finance community and in the personal finance community and they didn't even know about it they didn't even know about it they didn't even know about it and that's when i knew that i should and that's when i knew that i should and that's when i knew that i should have made this video sooner have made this video sooner have made this video sooner so i've always talked about retirement so i've always talked about retirement so i've always talked about retirement in this channel and how we should aim to in this channel and how we should aim to in this channel and how we should aim to save for it save for it save for it because it's a period in our lives where because it's a period in our lives where because it's a period in our lives where we might not be able to work anymore we might not be able to work anymore we might not be able to work anymore i personally love the fire movement just i personally love the fire movement just i personally love the fire movement just because it instills in us because it instills in us because it instills in us the discipline to save and invest the discipline to save and invest the discipline to save and invest and to think about retirement some and to think about retirement some and to think about retirement some things that are very foreign to us things that are very foreign to us things that are very foreign to us filipinos and not really practice filipinos and not really practice filipinos and not really practice okay so i'm not saying that this okay so i'm not saying that this okay so i'm not saying that this movement is movement is movement is perfect and it's not gonna be easy but perfect and it's not gonna be easy but perfect and it's not gonna be easy but for you to understand what i'm talking for you to understand what i'm talking for you to understand what i'm talking about about about let me first explain to you what the let me first explain to you what the let me first explain to you what the fire movement is fire movement is fire movement is the fire movement or financial the fire movement or financial the fire movement or financial independence retire early independence retire early independence retire early is a lifestyle movement that came from a is a lifestyle movement that came from a is a lifestyle movement that came from a book called your money or your life in book called your money or your life in book called your money or your life in the s the s the s but it has recently gained popularity but it has recently gained popularity but it has recently gained popularity among millennials in the s among millennials in the s among millennials in the s especially in the online forums from the especially in the online forums from the especially in the online forums from the acronym alone i'm sure you guys already acronym alone i'm sure you guys already acronym alone i'm sure you guys already have an idea what it is have an idea what it is have an idea what it is but basically it aims to give people a but basically it aims to give people a but basically it aims to give people a roadmap roadmap roadmap how to become financially independent at how to become financially independent at how to become financially independent at an early age an early age an early age meaning not in your s but rather meaning not in your s but rather meaning not in your s but rather in your s or s i know i sound crazy in your s or s i know i sound crazy in your s or s i know i sound crazy right now but hear me out let's define right now but hear me out let's define right now but hear me out let's define what it is what it is what it is how it works and later on i'm gonna give how it works and later on i'm gonna give how it works and later on i'm gonna give you some examples you some examples you some examples so let's start so let's start so let's start [Music] okay so first let's define the two parts okay so first let's define the two parts okay so first let's define the two parts of the movement of the movement of the movement financial independence and retirement financial independence and retirement financial independence and retirement first is financial independence first is financial independence first is financial independence financial independence has a different financial independence has a different financial independence has a different meaning to everyone meaning to everyone meaning to everyone the common image in our minds are the common image in our minds are the common image in our minds are usually where you're usually where you're usually where you're in a beach you know lazing around and in a beach you know lazing around and in a beach you know lazing around and you know you know you know sipping a fresh coconut now that isn't sipping a fresh coconut now that isn't sipping a fresh coconut now that isn't necessarily wrong necessarily wrong necessarily wrong but the financial independence here is but the financial independence here is but the financial independence here is that you can that you can that you can live indefinitely or forever off your live indefinitely or forever off your live indefinitely or forever off your investments investments investments and you don't have to work anymore and you don't have to work anymore and you don't have to work anymore i mean you definitely can especially if i mean you definitely can especially if i mean you definitely can especially if it's your passion it's your passion it's your passion and you love what you do but the key and you love what you do but the key and you love what you do but the key word here is you don't word here is you don't word here is you don't have to work you can take back your time have to work you can take back your time have to work you can take back your time that you might want to spend with your that you might want to spend with your that you might want to spend with your family family family or you know lounging around at home okay or you know lounging around at home okay or you know lounging around at home okay so how about retirement so how about retirement so how about retirement when we talk about retirement we usually when we talk about retirement we usually when we talk about retirement we usually think about when you're or think about when you're or think about when you're or or when you're a senior citizen but or when you're a senior citizen but or when you're a senior citizen but retirement retirement retirement is not necessarily an age but a number is not necessarily an age but a number is not necessarily an age but a number i'll explain more of that later but i'll explain more of that later but i'll explain more of that later but basically basically basically you are retired when you are out of the you are retired when you are out of the you are retired when you are out of the workforce workforce workforce either by choice or because of loss either by choice or because of loss either by choice or because of loss okay so how does it work exactly the okay so how does it work exactly the okay so how does it work exactly the fire movement has three major rules fire movement has three major rules fire movement has three major rules let's go through them one by one let's go through them one by one let's go through them one by one first is you need to know your fire first is you need to know your fire first is you need to know your fire number or also called the fi number number or also called the fi number number or also called the fi number which means which means which means financial independence number basically financial independence number basically financial independence number basically it's how much you need as a nest egg to it's how much you need as a nest egg to it's how much you need as a nest egg to be able to retire be able to retire be able to retire and for this you can get this by and for this you can get this by and for this you can get this by multiplying your monthly expenses multiplying your monthly expenses multiplying your monthly expenses by and multiplying that by by and multiplying that by by and multiplying that by you're gonna get your fi number from you're gonna get your fi number from you're gonna get your fi number from there so if you don't already know then there so if you don't already know then there so if you don't already know then you have to figure out how much your you have to figure out how much your you have to figure out how much your monthly expenses are monthly expenses are monthly expenses are so if you want to get to know your so if you want to get to know your so if you want to get to know your monthly expenses through a budgeting app monthly expenses through a budgeting app monthly expenses through a budgeting app i have a video of that over here i'll i have a video of that over here i'll i have a video of that over here i'll link it up in the cards link it up in the cards link it up in the cards but for example you already know and but for example you already know and but for example you already know and let's say it's pesos a month let's say it's pesos a month let's say it's pesos a month twenty thousand times twelve times twenty thousand times twelve times twenty thousand times twelve times twenty five twenty five twenty five equals six million pesos so you need six equals six million pesos so you need six equals six million pesos so you need six million pesos million pesos million pesos invested for you to be able to retire invested for you to be able to retire invested for you to be able to retire but that's just the first step now let's but that's just the first step now let's but that's just the first step now let's talk about how it talk about how it talk about how it actually works how can you live off actually works how can you live off actually works how can you live off million pesos million pesos million pesos because based on our computation you can because based on our computation you can because based on our computation you can only only only live off it for years and here's live off it for years and here's live off it for years and here's where where where investing comes in this is why i investing comes in this is why i investing comes in this is why i advocate for people to start investing advocate for people to start investing advocate for people to start investing especially at an early age especially at an early age especially at an early age because you need to let your money work because you need to let your money work because you need to let your money work alongside you so that in the future alongside you so that in the future alongside you so that in the future your money can work for you while you your money can work for you while you your money can work for you while you retire retire retire so how this works is based on the so how this works is based on the so how this works is based on the trinity study trinity study trinity study by some professors from the trinity by some professors from the trinity by some professors from the trinity university back in the s university back in the s university back in the s i'll put some reading materials on it i'll put some reading materials on it i'll put some reading materials on it down below so you guys can check out the down below so you guys can check out the down below so you guys can check out the entire study entire study entire study but basically they came up with an but basically they came up with an but basically they came up with an optimal withdrawal rate and it's also optimal withdrawal rate and it's also optimal withdrawal rate and it's also called the four percent rule called the four percent rule called the four percent rule and what that means is basically if you and what that means is basically if you and what that means is basically if you withdraw withdraw withdraw four percent from your fi number which four percent from your fi number which four percent from your fi number which is six million is six million is six million that would last you forever or that would last you forever or that would last you forever or indefinitely indefinitely indefinitely and this study is based on if you would and this study is based on if you would and this study is based on if you would invest your money invest your money invest your money in vehicles that are invested in the in vehicles that are invested in the in vehicles that are invested in the stock market stock market stock market so for example you invested your money so for example you invested your money so for example you invested your money in the stock market in the stock market in the stock market or let's say in a fund that's mimicking or let's say in a fund that's mimicking or let's say in a fund that's mimicking the stock index the stock index the stock index so the historical performance of the so the historical performance of the so the historical performance of the stock index in the philippines is . stock index in the philippines is . stock index in the philippines is . every year in the last plus years so every year in the last plus years so every year in the last plus years so around around around is actually typical and a lot of stock is actually typical and a lot of stock is actually typical and a lot of stock indexes around the world indexes around the world indexes around the world so . on average every year so . on average every year so . on average every year adjusted for inflation and leaving some adjusted for inflation and leaving some adjusted for inflation and leaving some behind behind behind you can safely withdraw four percent or you can safely withdraw four percent or you can safely withdraw four percent or from the six million pesos and your from the six million pesos and your from the six million pesos and your investment investment investment based on the study would never run out based on the study would never run out based on the study would never run out you can even you can even you can even leave money for your kids or your leave money for your kids or your leave money for your kids or your beneficiaries beneficiaries beneficiaries so the four percent is based on the so the four percent is based on the so the four percent is based on the average return so of course if there are average return so of course if there are average return so of course if there are recessions recessions recessions or depressions you would need to adjust or depressions you would need to adjust or depressions you would need to adjust your withdrawal rate a little bit your withdrawal rate a little bit your withdrawal rate a little bit but generally we know that the stock but generally we know that the stock but generally we know that the stock market goes up in the long term market goes up in the long term market goes up in the long term so you can go back to four percent after so you can go back to four percent after so you can go back to four percent after that now that now that now number one and number two are all number one and number two are all number one and number two are all necessary for all retirees necessary for all retirees necessary for all retirees whether you're retiring early or not it whether you're retiring early or not it whether you're retiring early or not it doesn't matter you need to get to know doesn't matter you need to get to know doesn't matter you need to get to know these numbers these numbers these numbers so what's the third rule what do you so what's the third rule what do you so what's the third rule what do you have to do have to do have to do to be able to do this early you need to to be able to do this early you need to to be able to do this early you need to have a have a have a to savings rate to be able to retire to savings rate to be able to retire to savings rate to be able to retire in your s in your s in your s or s i'm gonna give you guys a second or s i'm gonna give you guys a second or s i'm gonna give you guys a second to let that sink in to let that sink in to let that sink in i know it sounds impossible so the two i know it sounds impossible so the two i know it sounds impossible so the two things that are very attached to the things that are very attached to the things that are very attached to the fire movement is one fire movement is one fire movement is one fergality you really have to find ways fergality you really have to find ways fergality you really have to find ways to spend less you have to have a frugal to spend less you have to have a frugal to spend less you have to have a frugal lifestyle lifestyle lifestyle and number two you have to have a higher and number two you have to have a higher and number two you have to have a higher income income income meaning you have to earn more so again meaning you have to earn more so again meaning you have to earn more so again it's all about that gap it's all about that gap it's all about that gap of earning more and spending less we of earning more and spending less we of earning more and spending less we have to widen this gap have to widen this gap have to widen this gap mr money mustache has a table wherein he mr money mustache has a table wherein he mr money mustache has a table wherein he shows how many years you can retire shows how many years you can retire shows how many years you can retire based on your current savings rate based on your current savings rate based on your current savings rate and i'm gonna put it here so as you can and i'm gonna put it here so as you can and i'm gonna put it here so as you can see for you to be able to retire see for you to be able to retire see for you to be able to retire in years you have to have a in years you have to have a in years you have to have a savings rate so if you're right now savings rate so if you're right now savings rate so if you're right now you can retire when you are you can retire when you are you can retire when you are when you save and invest of your when you save and invest of your when you save and invest of your income income income so the usual savings rate of so the usual savings rate of so the usual savings rate of from the budgeting rule means from the budgeting rule means from the budgeting rule means that you can retire in years that you can retire in years that you can retire in years that means if you're years old right that means if you're years old right that means if you're years old right now you can retire at now you can retire at now you can retire at but if you're say years old right now but if you're say years old right now but if you're say years old right now and that's your current savings rate and that's your current savings rate and that's your current savings rate then you can retire when you are then you can retire when you are then you can retire when you are . i will also link his original . i will also link his original . i will also link his original article article article or blog down below so you guys can check or blog down below so you guys can check or blog down below so you guys can check it out it out it out if you haven't screenshotted this if you haven't screenshotted this if you haven't screenshotted this already okay now for some examples already okay now for some examples already okay now for some examples let's crunch the numbers so given my let's crunch the numbers so given my let's crunch the numbers so given my example earlier of the twenty thousand example earlier of the twenty thousand example earlier of the twenty thousand pesos pesos pesos expenses monthly let's say he or she expenses monthly let's say he or she expenses monthly let's say he or she is earning thirty thousand pesos a month is earning thirty thousand pesos a month is earning thirty thousand pesos a month so the savings so the savings so the savings is ten thousand pesos or thirty three is ten thousand pesos or thirty three is ten thousand pesos or thirty three point three percent point three percent point three percent not quite to let's see not quite to let's see not quite to let's see if this person can still retire early so if this person can still retire early so if this person can still retire early so let's say this person is let's say this person is let's say this person is years old and they already have years old and they already have years old and they already have pesos of investments pesos of investments pesos of investments okay so first is let's get the fi number okay so first is let's get the fi number okay so first is let's get the fi number twenty thousand twenty thousand twenty thousand times twelve times twenty five is six times twelve times twenty five is six times twelve times twenty five is six million pesos or one hundred twenty million pesos or one hundred twenty million pesos or one hundred twenty thousand dollars okay so for example all thousand dollars okay so for example all thousand dollars okay so for example all six million pesos are invested in six million pesos are invested in six million pesos are invested in funds and directly into the stock market funds and directly into the stock market funds and directly into the stock market if this is a similar situation if this is a similar situation if this is a similar situation million pesos might sound daunting to million pesos might sound daunting to million pesos might sound daunting to you but the thing that you haven't you but the thing that you haven't you but the thing that you haven't considered is compounding interest considered is compounding interest considered is compounding interest i've talked about compounding interest a i've talked about compounding interest a i've talked about compounding interest a lot in this channel lot in this channel lot in this channel it's basically your interest can also it's basically your interest can also it's basically your interest can also earn interest earn interest earn interest and i found this compounding calculator and i found this compounding calculator and i found this compounding calculator and i will also link it down below and i will also link it down below and i will also link it down below but let's take the example let's say his but let's take the example let's say his but let's take the example let's say his name is one name is one name is one of course so juan already has the of course so juan already has the of course so juan already has the pesos as his initial balance of pesos as his initial balance of pesos as his initial balance of investment investment investment let's say the annual interest is at let's say the annual interest is at let's say the annual interest is at seven percent instead of a . seven percent instead of a . seven percent instead of a . let's put let's say a -year period let's put let's say a -year period let's put let's say a -year period and then he's putting pesos every and then he's putting pesos every and then he's putting pesos every month to his investments month to his investments month to his investments of course considering he already has an of course considering he already has an of course considering he already has an emergency fund and insurance emergency fund and insurance emergency fund and insurance so let's just take this an example so let's just take this an example so let's just take this an example and based on the computation he will and based on the computation he will and based on the computation he will have his million pesos have his million pesos have his million pesos by the time that he is years old so by the time that he is years old so by the time that he is years old so that's years that's years that's years still an early retirement okay let's still an early retirement okay let's still an early retirement okay let's take for example again take for example again take for example again another person let's say her name is another person let's say her name is another person let's say her name is anna she has the same expenses of anna she has the same expenses of anna she has the same expenses of pesos and the same savings rate of . pesos and the same savings rate of . pesos and the same savings rate of . which is pesos but unlike juan which is pesos but unlike juan which is pesos but unlike juan she doesn't have two hundred thousand she doesn't have two hundred thousand she doesn't have two hundred thousand pesos invested just yet pesos invested just yet pesos invested just yet instead she has twenty thousand pesos instead she has twenty thousand pesos instead she has twenty thousand pesos that she bought as a down payment in a that she bought as a down payment in a that she bought as a down payment in a real estate real estate real estate and let's say she goes to the real and let's say she goes to the real and let's say she goes to the real estate route of her estate route of her estate route of her investment now for real estate of course investment now for real estate of course investment now for real estate of course it doesn't compound but instead it doesn't compound but instead it doesn't compound but instead your property appreciates so the thing your property appreciates so the thing your property appreciates so the thing here is that most of the time there's here is that most of the time there's here is that most of the time there's more potential to earn more potential to earn more potential to earn in real estate through rental income so in real estate through rental income so in real estate through rental income so your fi number might come down your fi number might come down your fi number might come down let's say your fi number can now come let's say your fi number can now come let's say your fi number can now come down to million down to million down to million pesos million pesos depending on your pesos million pesos depending on your pesos million pesos depending on your area area area but in major cities it can earn you but in major cities it can earn you but in major cities it can earn you pesos or pesos or pesos or a month which is your needed monthly a month which is your needed monthly a month which is your needed monthly expenses expenses expenses so if you compare a stock market so if you compare a stock market so if you compare a stock market portfolio in a real estate portfolio portfolio in a real estate portfolio portfolio in a real estate portfolio they're actually quite similar because they're actually quite similar because they're actually quite similar because despite needing to earn million pesos despite needing to earn million pesos despite needing to earn million pesos with stocks with stocks with stocks and just million pesos in real estate and just million pesos in real estate and just million pesos in real estate real estate real estate real estate doesn't compound like the stock market doesn't compound like the stock market doesn't compound like the stock market does which does which does which if you're aiming for million you only if you're aiming for million you only if you're aiming for million you only really need to save about million really need to save about million really need to save about million pesos of that pesos of that pesos of that and because of the magic of compounding and because of the magic of compounding and because of the magic of compounding interest you would still reach your goal interest you would still reach your goal interest you would still reach your goal i hope that you know you guys understood i hope that you know you guys understood i hope that you know you guys understood that i know you do because you guys are that i know you do because you guys are that i know you do because you guys are smart smart smart but yeah final thoughts time okay i'm but yeah final thoughts time okay i'm but yeah final thoughts time okay i'm not here to preach not here to preach not here to preach to everyone that you should follow the to everyone that you should follow the to everyone that you should follow the fire movement fire movement fire movement and i understand that it's not and i understand that it's not and i understand that it's not sustainable and it's very hard sustainable and it's very hard sustainable and it's very hard especially to us especially to us especially to us filipinos i merely wanted to show you filipinos i merely wanted to show you filipinos i merely wanted to show you guys guys guys that with proper planning you can become that with proper planning you can become that with proper planning you can become financially independent financially independent financially independent and retire comfortably it doesn't have and retire comfortably it doesn't have and retire comfortably it doesn't have to be early to be early to be early but my problem is that retiring seems to but my problem is that retiring seems to but my problem is that retiring seems to be a luxury to filipinos instead of be a luxury to filipinos instead of be a luxury to filipinos instead of right you can see so many older right you can see so many older right you can see so many older generations still working because they generations still working because they generations still working because they have to and not because they just want have to and not because they just want have to and not because they just want to to to if the entire concept seems to be very if the entire concept seems to be very if the entire concept seems to be very intimidating to you intimidating to you intimidating to you and maybe you need to rewatch the video and maybe you need to rewatch the video and maybe you need to rewatch the video the biggest takeaway that i want you the biggest takeaway that i want you the biggest takeaway that i want you guys to get is to start guys to get is to start guys to get is to start planning for your retirement that's it planning for your retirement that's it planning for your retirement that's it i hope that this video brought you one i hope that this video brought you one i hope that this video brought you one step closer to that step closer to that step closer to that and if it did i'm very happy already and and if it did i'm very happy already and and if it did i'm very happy already and next week i might talk about the next week i might talk about the next week i might talk about the different types of fire movement different types of fire movement different types of fire movement yes there are about four or five types yes there are about four or five types yes there are about four or five types and i want to share to you guys my plans and i want to share to you guys my plans and i want to share to you guys my plans for my retirement for my retirement for my retirement i've already talked about that and i've already talked about that and i've already talked about that and mentioned it a couple times in my mentioned it a couple times in my mentioned it a couple times in my channel channel channel that i want to retire by and i want that i want to retire by and i want that i want to retire by and i want to share it to you guys how i plan to do to share it to you guys how i plan to do to share it to you guys how i plan to do so so so so i hope that you guys subscribe and so i hope that you guys subscribe and so i hope that you guys subscribe and ring the notification bell so you get ring the notification bell so you get ring the notification bell so you get notified for that video notified for that video notified for that video if you like this video then don't forget if you like this video then don't forget if you like this video then don't forget to hit like it really helps out the to hit like it really helps out the to hit like it really helps out the channel a lot channel a lot channel a lot and again i know that adulting's already and again i know that adulting's already and again i know that adulting's already hard and hard and hard and retirement seems even harder to think retirement seems even harder to think retirement seems even harder to think about but that's why i make these videos about but that's why i make these videos about but that's why i make these videos for you guys for you guys for you guys this has been charm from reddit adults this has been charm from reddit adults this has been charm from reddit adults philippines and i will see you philippines and i will see you philippines and i will see you on my next video man WEBVTT Kind: captions Language: en the video in the absence of inner sense or the index increase jane donate until then too that they know in three characters the plot y to the jazz house of the year one about this year the tenth in January this year only the spit and year when the cds is the one who has no reason for the absence of the punished in to in lyon in the last century low cost index that measures ans is slow in en raul and we will rock you we can 'aim online campaign that they are reason for the spanish said sister of gb has good reasons child on cane mister tour that after a long and well connected at all are new that everything for what we can in wheel be the pilot is long and appears in water and we got what we have phone house and think I'm Portuguese [Song] anyone saw the independent spanish i am and that come out of the biogas spout lipstick don't own and santos civilians wilson leads to the death of friend lan lan's story and boni cherr's goal gave this problem because the football manager guaranteed it william ward walking the drunk in politics aas was in Portuguese [Song] robbins gabe kling the other makes childhood gang and who knows yes go although x is hot time from august goes well said ana de la or shoot go away marx in gland silva puts serious in the sun then nobody else knows the father sir Japanese newspaper wanted when the current sá fernandes goose looks calm lan the well the well a coffee please do admit it is the cap because I love you declared there will not give said said to live violent from daddy water and ink is like this out of hope what they had nestlé is normal in the following way tenth baby will go to what we are to subsidize this year on johnny jack WEBVTT Kind: captions Language: en [Music] [Music] [Music] practically free foreign early financial [Applause] foreign foreign [Music] foreign foreign stock foreign [Applause] [Music] [Music] foreign foreign foreign [Music] foreign and goodbye WEBVTT Kind: captions Language: en whoo I'm excited for this topic it's whoo I'm excited for this topic it's whoo I'm excited for this topic it's time for another tool to help you reach time for another tool to help you reach time for another tool to help you reach financial independence and financial financial independence and financial financial independence and financial freedom faster I already showed you the freedom faster I already showed you the freedom faster I already showed you the strategy on how to get free cars for strategy on how to get free cars for strategy on how to get free cars for financial independence so now we're financial independence so now we're financial independence so now we're adding to that list of tools that you adding to that list of tools that you adding to that list of tools that you can use hundreds of thousands of dollars can use hundreds of thousands of dollars can use hundreds of thousands of dollars is where you could be leaving on the is where you could be leaving on the is where you could be leaving on the table if you are contributing to an HSA table if you are contributing to an HSA table if you are contributing to an HSA every year even if you are you could every year even if you are you could every year even if you are you could still be leaving more than , still be leaving more than , still be leaving more than , dollars on the table if you aren't using dollars on the table if you aren't using dollars on the table if you aren't using it properly now I don't want this to it properly now I don't want this to it properly now I don't want this to happen to you so let's dive into this happen to you so let's dive into this happen to you so let's dive into this topic to make sure you've got yourself topic to make sure you've got yourself topic to make sure you've got yourself set up to really maximize a health set up to really maximize a health set up to really maximize a health savings account listen up even if you savings account listen up even if you savings account listen up even if you aren't pursuing financial independence aren't pursuing financial independence aren't pursuing financial independence you still need to consider investing in you still need to consider investing in you still need to consider investing in an HSA like it's a retirement account an HSA like it's a retirement account an HSA like it's a retirement account for you because the benefits are for you because the benefits are for you because the benefits are absolutely insane which I'll cover in absolutely insane which I'll cover in absolutely insane which I'll cover in this video so do not miss it even if you this video so do not miss it even if you this video so do not miss it even if you are not contributing to one right now are not contributing to one right now are not contributing to one right now then you'll better understand it once then you'll better understand it once then you'll better understand it once we're finished in this video I'm gonna we're finished in this video I'm gonna we're finished in this video I'm gonna give you a crash course on an HSA also give you a crash course on an HSA also give you a crash course on an HSA also known as a health savings account if you known as a health savings account if you known as a health savings account if you don't understand the details of an HSA don't understand the details of an HSA don't understand the details of an HSA then it can be a little bit intimidating then it can be a little bit intimidating then it can be a little bit intimidating so I want to help you break down those so I want to help you break down those so I want to help you break down those barriers and those walls so you can see barriers and those walls so you can see barriers and those walls so you can see what's so good about an HSA we're gonna what's so good about an HSA we're gonna what's so good about an HSA we're gonna cover things like the what when where cover things like the what when where cover things like the what when where and how I'll show you what you need to and how I'll show you what you need to and how I'll show you what you need to be doing so that you can turn a yearly be doing so that you can turn a yearly be doing so that you can turn a yearly thirty five hundred dollar contribution thirty five hundred dollar contribution thirty five hundred dollar contribution into over three hundred thousand dollars into over three hundred thousand dollars into over three hundred thousand dollars if you're single and over six hundred if you're single and over six hundred if you're single and over six hundred thousand dollars if you have a family thousand dollars if you have a family thousand dollars if you have a family I'll also log into my personal HSA to I'll also log into my personal HSA to I'll also log into my personal HSA to show you the system and process that I show you the system and process that I show you the system and process that I have set up to ensure a % success have set up to ensure a % success have set up to ensure a % success rate if you have any questions or need a rate if you have any questions or need a rate if you have any questions or need a little bit more clarification throughout little bit more clarification throughout little bit more clarification throughout the video then please let me know down the video then please let me know down the video then please let me know down in the comments I'll answer every single in the comments I'll answer every single in the comments I'll answer every single question or do my best to help you find question or do my best to help you find question or do my best to help you find the answer that you're looking for like the answer that you're looking for like the answer that you're looking for like I said I know that nature say can seem I said I know that nature say can seem I said I know that nature say can seem really intimidating at first but the really intimidating at first but the really intimidating at first but the only way that we reduce intimidation is only way that we reduce intimidation is only way that we reduce intimidation is by educating ourselves just a little bit by educating ourselves just a little bit by educating ourselves just a little bit more which I'm gonna help you out with more which I'm gonna help you out with more which I'm gonna help you out with that exact thing in this video hey I'm that exact thing in this video hey I'm that exact thing in this video hey I'm Jared with an A and on this channel we Jared with an A and on this channel we Jared with an A and on this channel we like to talk about all things personal like to talk about all things personal like to talk about all things personal finance and investing an HSA is finance and investing an HSA is finance and investing an HSA is basically a savings or investment basically a savings or investment basically a savings or investment account that you can contribute pre-tax account that you can contribute pre-tax account that you can contribute pre-tax money to every single year now single money to every single year now single money to every single year now single people can contribute up to thirty five people can contribute up to thirty five people can contribute up to thirty five hundred dollars per year and families hundred dollars per year and families hundred dollars per year and families can contribute up to can contribute up to can contribute up to $, per year once money is put into $, per year once money is put into $, per year once money is put into this account the only way to withdraw it this account the only way to withdraw it this account the only way to withdraw it is by spending money on medical expenses is by spending money on medical expenses is by spending money on medical expenses on the surface this sounds dumb and not on the surface this sounds dumb and not on the surface this sounds dumb and not worth your time at all at least that's worth your time at all at least that's worth your time at all at least that's what I used to think let me get this what I used to think let me get this what I used to think let me get this straight your money is basically locked straight your money is basically locked straight your money is basically locked up with the annoying restriction of only up with the annoying restriction of only up with the annoying restriction of only being able to access it through going to being able to access it through going to being able to access it through going to the doctor spending money on medication the doctor spending money on medication the doctor spending money on medication getting injured or other medical related getting injured or other medical related getting injured or other medical related expenses like that yes that's correct expenses like that yes that's correct expenses like that yes that's correct but what if you looked at and used your but what if you looked at and used your but what if you looked at and used your HSA like another form of investment HSA like another form of investment HSA like another form of investment account think k IRA B and so on account think k IRA B and so on account think k IRA B and so on the best part is this would be a the best part is this would be a the best part is this would be a tax-free investment account I'll give tax-free investment account I'll give tax-free investment account I'll give you the strategy to make this happen in you the strategy to make this happen in you the strategy to make this happen in just a minute just a minute just a minute think of an HSA like a way to hedge your think of an HSA like a way to hedge your think of an HSA like a way to hedge your bets when it comes to medical costs when bets when it comes to medical costs when bets when it comes to medical costs when you get older it's a way for you to kind you get older it's a way for you to kind you get older it's a way for you to kind of earmark less of your retirement money of earmark less of your retirement money of earmark less of your retirement money that's in will say a k IRA or B that's in will say a k IRA or B that's in will say a k IRA or B towards medical expenses if you haven't towards medical expenses if you haven't towards medical expenses if you haven't done it yet please Hulk smash that done it yet please Hulk smash that done it yet please Hulk smash that thumbs up button the way you use your thumbs up button the way you use your thumbs up button the way you use your health savings account like an health savings account like an health savings account like an investment is by actually investing the investment is by actually investing the investment is by actually investing the money that you contribute into it it's money that you contribute into it it's money that you contribute into it it's kind of confusing because the name has kind of confusing because the name has kind of confusing because the name has savings account in it but once you savings account in it but once you savings account in it but once you deposit the money into the account deposit the money into the account deposit the money into the account you'll have the option to either invest you'll have the option to either invest you'll have the option to either invest that money or just let it sit there the that money or just let it sit there the that money or just let it sit there the HSA that I have allows me to invest all HSA that I have allows me to invest all HSA that I have allows me to invest all but one thousand dollars of the money in but one thousand dollars of the money in but one thousand dollars of the money in my account to be honest with you I'm not my account to be honest with you I'm not my account to be honest with you I'm not sure if all HSA czar like this but sure if all HSA czar like this but sure if all HSA czar like this but that's just how mine is set up so I got that's just how mine is set up so I got that's just how mine is set up so I got to deal with it I'm assuming they do to deal with it I'm assuming they do to deal with it I'm assuming they do this just to make sure that you have a this just to make sure that you have a this just to make sure that you have a little bit of non invested cash just in little bit of non invested cash just in little bit of non invested cash just in case you needed it in the grand scheme case you needed it in the grand scheme case you needed it in the grand scheme of things $, isn't very much and I of things $, isn't very much and I of things $, isn't very much and I kind of appreciate the fact that they're kind of appreciate the fact that they're kind of appreciate the fact that they're giving me this little restriction I'll giving me this little restriction I'll giving me this little restriction I'll show you my investments in just a few show you my investments in just a few show you my investments in just a few minutes there's actually a triple tax minutes there's actually a triple tax minutes there's actually a triple tax savings with an HSA yes you heard me savings with an HSA yes you heard me savings with an HSA yes you heard me right you save on your taxes three right you save on your taxes three right you save on your taxes three freaking times the first way the money freaking times the first way the money freaking times the first way the money you contribute to an HSA is pre-tax you contribute to an HSA is pre-tax you contribute to an HSA is pre-tax money from your paycheck so you skip out money from your paycheck so you skip out money from your paycheck so you skip out on paying the taxes right there the on paying the taxes right there the on paying the taxes right there the second way the gains from your second way the gains from your second way the gains from your investment growth dividend payouts and investment growth dividend payouts and investment growth dividend payouts and interest accumulated is not taxed at all interest accumulated is not taxed at all interest accumulated is not taxed at all so you skip on paying taxes right there so you skip on paying taxes right there so you skip on paying taxes right there as well and the third way when you as well and the third way when you as well and the third way when you withdraw the money for medical expenses withdraw the money for medical expenses withdraw the money for medical expenses you do not pay any taxes on that you do not pay any taxes on that you do not pay any taxes on that distribution so you don't pay any taxes distribution so you don't pay any taxes distribution so you don't pay any taxes on what you on what you on what you put in and you'll pay any taxes on any put in and you'll pay any taxes on any put in and you'll pay any taxes on any of the games within the account it's of the games within the account it's of the games within the account it's kind of like saying sorry not sorry kind of like saying sorry not sorry kind of like saying sorry not sorry government but I'm not paying taxes on government but I'm not paying taxes on government but I'm not paying taxes on these either the way that you're gonna these either the way that you're gonna these either the way that you're gonna turn this into an additional retirement turn this into an additional retirement turn this into an additional retirement account is by not pulling money out from account is by not pulling money out from account is by not pulling money out from your HSA when you have any medical your HSA when you have any medical your HSA when you have any medical expenses this means that you'll pay for expenses this means that you'll pay for expenses this means that you'll pay for all medical costs out of pocket and save all medical costs out of pocket and save all medical costs out of pocket and save the receipts that you can cash those the receipts that you can cash those the receipts that you can cash those suckers in many years down the road the suckers in many years down the road the suckers in many years down the road the reason you'll do this is because you'll reason you'll do this is because you'll reason you'll do this is because you'll want the money in your HSA to be want the money in your HSA to be want the money in your HSA to be invested for as long as possible so that invested for as long as possible so that invested for as long as possible so that it can grow if you put $ into it it can grow if you put $ into it it can grow if you put $ into it this year and pulled out that $ in this year and pulled out that $ in this year and pulled out that $ in the same year to pay for medical the same year to pay for medical the same year to pay for medical expenses then you'd only have thirty expenses then you'd only have thirty expenses then you'd only have thirty five hundred dollars to spend but and five hundred dollars to spend but and five hundred dollars to spend but and this is a big but if you left the thirty this is a big but if you left the thirty this is a big but if you left the thirty five hundred dollars invested pay for five hundred dollars invested pay for five hundred dollars invested pay for the medical expenses out-of-pocket save the medical expenses out-of-pocket save the medical expenses out-of-pocket save the receipts assumed a seven percent the receipts assumed a seven percent the receipts assumed a seven percent return and withdrew that money in return and withdrew that money in return and withdrew that money in years then that thirty five hundred years then that thirty five hundred years then that thirty five hundred dollars would turn into over thirteen dollars would turn into over thirteen dollars would turn into over thirteen thousand five hundred dollars of thousand five hundred dollars of thousand five hundred dollars of tax-free money and that's just after tax-free money and that's just after tax-free money and that's just after years let's get a little more wild and years let's get a little more wild and years let's get a little more wild and crazy if you waited thirty years then crazy if you waited thirty years then crazy if you waited thirty years then that thirty five hundred dollars would that thirty five hundred dollars would that thirty five hundred dollars would turn into over twenty six thousand five turn into over twenty six thousand five turn into over twenty six thousand five hundred dollars of tax-free money and hundred dollars of tax-free money and hundred dollars of tax-free money and this is just from contributing to an HSA this is just from contributing to an HSA this is just from contributing to an HSA for one year if you were a single person for one year if you were a single person for one year if you were a single person keep in mind this example is for a keep in mind this example is for a keep in mind this example is for a single person if you are a family then single person if you are a family then single person if you are a family then you can contribute up to seven thousand you can contribute up to seven thousand you can contribute up to seven thousand dollars per year and you would have dollars per year and you would have dollars per year and you would have double that amount I've got a bonus tip double that amount I've got a bonus tip double that amount I've got a bonus tip for you so listen up now if you want to for you so listen up now if you want to for you so listen up now if you want to maximize your return even more then maximize your return even more then maximize your return even more then you'll want to do this we're gonna game you'll want to do this we're gonna game you'll want to do this we're gonna game the system a little bit since you're the system a little bit since you're the system a little bit since you're gonna leave the money in your HSA so gonna leave the money in your HSA so gonna leave the money in your HSA so that it can grow you're going to need to that it can grow you're going to need to that it can grow you're going to need to pay for medical expenses out of your pay for medical expenses out of your pay for medical expenses out of your pocket but you're smart and responsible pocket but you're smart and responsible pocket but you're smart and responsible so instead of paying for those out of so instead of paying for those out of so instead of paying for those out of pocket pocket expenses with cash or a pocket pocket expenses with cash or a pocket pocket expenses with cash or a boring debit card you pay for them all boring debit card you pay for them all boring debit card you pay for them all with a good rewards credit card that you with a good rewards credit card that you with a good rewards credit card that you pay off before the end of every month pay off before the end of every month pay off before the end of every month mind-blown think about this not only are mind-blown think about this not only are mind-blown think about this not only are you making money by keeping your HSA you making money by keeping your HSA you making money by keeping your HSA money invested but you are also getting money invested but you are also getting money invested but you are also getting will say % cashback on that purchase if will say % cashback on that purchase if will say % cashback on that purchase if that's the type of rewards card that you that's the type of rewards card that you that's the type of rewards card that you use if you want to know the best cash use if you want to know the best cash use if you want to know the best cash back rewards credit card to get I made a back rewards credit card to get I made a back rewards credit card to get I made a video on that I will throw a link in the video on that I will throw a link in the video on that I will throw a link in the description to that video or I also description to that video or I also description to that video or I also tell you which cash back rewards credit tell you which cash back rewards credit tell you which cash back rewards credit card I personally use to open and card I personally use to open and card I personally use to open and contribute to an HSA you need to be at contribute to an HSA you need to be at contribute to an HSA you need to be at least years old and covered under a least years old and covered under a least years old and covered under a qualified high deductible health plan qualified high deductible health plan qualified high deductible health plan sometimes referred to as an hdhp now sometimes referred to as an hdhp now sometimes referred to as an hdhp now these high deductible health plans are these high deductible health plans are these high deductible health plans are usually always off they're offered so it usually always off they're offered so it usually always off they're offered so it shouldn't be an issue there's two ways shouldn't be an issue there's two ways shouldn't be an issue there's two ways to start investing in an HSA that you to start investing in an HSA that you to start investing in an HSA that you need to know about the first way is need to know about the first way is need to know about the first way is through your current employer as long as through your current employer as long as through your current employer as long as you've chosen a high deductible health you've chosen a high deductible health you've chosen a high deductible health plan then you're good to go plan then you're good to go plan then you're good to go your employer would usually call this your employer would usually call this your employer would usually call this plan out as HSA eligible but if you are plan out as HSA eligible but if you are plan out as HSA eligible but if you are not sure then by all means check with not sure then by all means check with not sure then by all means check with your HR department sometimes employers your HR department sometimes employers your HR department sometimes employers will even offer to contribute some money will even offer to contribute some money will even offer to contribute some money to your HSA as well in the case of the to your HSA as well in the case of the to your HSA as well in the case of the company that I work for they contribute company that I work for they contribute company that I work for they contribute $ per year towards my HSA all I had $ per year towards my HSA all I had $ per year towards my HSA all I had to do was go get a wellness checkup and to do was go get a wellness checkup and to do was go get a wellness checkup and they credited my HSA account it was they credited my HSA account it was they credited my HSA account it was pretty awesome I was like I yeah I'll pretty awesome I was like I yeah I'll pretty awesome I was like I yeah I'll take free money any day of the week take free money any day of the week take free money any day of the week especially when I'm able to invest that especially when I'm able to invest that especially when I'm able to invest that money and let it grow sometimes money and let it grow sometimes money and let it grow sometimes employers don't offer an HSA and if employers don't offer an HSA and if employers don't offer an HSA and if yours doesn't don't worry because you're yours doesn't don't worry because you're yours doesn't don't worry because you're still able to open one as long as you still able to open one as long as you still able to open one as long as you were enrolled in a high deductible were enrolled in a high deductible were enrolled in a high deductible health plan then you can open up an HSA health plan then you can open up an HSA health plan then you can open up an HSA account on your own in this case it account on your own in this case it account on your own in this case it would be self-directed kind of like how would be self-directed kind of like how would be self-directed kind of like how if you want to invest in an IRA and you if you want to invest in an IRA and you if you want to invest in an IRA and you have to do it on your own the two that have to do it on your own the two that have to do it on your own the two that I'm more familiar with that I'd I'm more familiar with that I'd I'm more familiar with that I'd recommend are lively and health equity recommend are lively and health equity recommend are lively and health equity I'll throw links in the description to I'll throw links in the description to I'll throw links in the description to check both of them out if your employer check both of them out if your employer check both of them out if your employer offers an HSA then they'll choose the offers an HSA then they'll choose the offers an HSA then they'll choose the company so all you have to do is create company so all you have to do is create company so all you have to do is create an account the good thing about an HSA an account the good thing about an HSA an account the good thing about an HSA is that you have full control over it is that you have full control over it is that you have full control over it once you start investing in one it is once you start investing in one it is once you start investing in one it is yours you can take it with you even if yours you can take it with you even if yours you can take it with you even if you leave your current job you leave your current job you leave your current job if you switch employers then you can if you switch employers then you can if you switch employers then you can roll it over just like you would with a roll it over just like you would with a roll it over just like you would with a k account with the past employer you k account with the past employer you k account with the past employer you can withdraw your money for non-medical can withdraw your money for non-medical can withdraw your money for non-medical expenses but it comes with a little bit expenses but it comes with a little bit expenses but it comes with a little bit of a price if you use your funds to pay of a price if you use your funds to pay of a price if you use your funds to pay for things other than non qualified for things other than non qualified for things other than non qualified medical expenses then those funds will medical expenses then those funds will medical expenses then those funds will be taxed as ordinary income and the IRS be taxed as ordinary income and the IRS be taxed as ordinary income and the IRS will impose a % penalty so if you will impose a % penalty so if you will impose a % penalty so if you spend $ on non qualified medical spend $ on non qualified medical spend $ on non qualified medical expenses like candy at Walgreens or expenses like candy at Walgreens or expenses like candy at Walgreens or something fun like that then you'll pay something fun like that then you'll pay something fun like that then you'll pay a $ penalty this $ will also be a $ penalty this $ will also be a $ penalty this $ will also be shown as income earned for the year as shown as income earned for the year as shown as income earned for the year as well which you'll of course pay taxes on well which you'll of course pay taxes on well which you'll of course pay taxes on this is not cool this is not cool this is not cool don't do this because it defeats the don't do this because it defeats the don't do this because it defeats the whole purpose of an HSA and also don't whole purpose of an HSA and also don't whole purpose of an HSA and also don't try to get one over on the IRS by trying try to get one over on the IRS by trying try to get one over on the IRS by trying to use the money for non qualified to use the money for non qualified to use the money for non qualified medical expenses sure they may not catch medical expenses sure they may not catch medical expenses sure they may not catch you if they don't audit you but the IRS you if they don't audit you but the IRS you if they don't audit you but the IRS they really aren't the kind of people they really aren't the kind of people they really aren't the kind of people that you want to be messing with these that you want to be messing with these that you want to be messing with these people will eat your lunch take the rest people will eat your lunch take the rest people will eat your lunch take the rest of your lunch money then come back for of your lunch money then come back for of your lunch money then come back for more more more this is really important you need to this is really important you need to this is really important you need to keep track of your medical receipts over keep track of your medical receipts over keep track of your medical receipts over the years so you're able to actually the years so you're able to actually the years so you're able to actually take money out later down the line if take money out later down the line if take money out later down the line if you're not going to need to cash these you're not going to need to cash these you're not going to need to cash these receipts in for another twenty or thirty receipts in for another twenty or thirty receipts in for another twenty or thirty years then the odds of those receipts years then the odds of those receipts years then the odds of those receipts getting lost is extremely high you're getting lost is extremely high you're getting lost is extremely high you're gonna move you're hopefully going to go gonna move you're hopefully going to go gonna move you're hopefully going to go on a cleaning binge and probably on a cleaning binge and probably on a cleaning binge and probably accidentally throw those receipts out or accidentally throw those receipts out or accidentally throw those receipts out or life is just gonna happen and then life is just gonna happen and then life is just gonna happen and then randomly disappear just like your socks randomly disappear just like your socks randomly disappear just like your socks always do side question does anyone else always do side question does anyone else always do side question does anyone else have a sock monster living in their have a sock monster living in their have a sock monster living in their house like I have since I was a small house like I have since I was a small house like I have since I was a small child organization is the key if you're child organization is the key if you're child organization is the key if you're not an organized person then you need to not an organized person then you need to not an organized person then you need to get freaking organized these receipts get freaking organized these receipts get freaking organized these receipts are like Willy Wonka's golden tickets no are like Willy Wonka's golden tickets no are like Willy Wonka's golden tickets no ticket no chocolate they're as valuable ticket no chocolate they're as valuable ticket no chocolate they're as valuable as money since you can't take money out as money since you can't take money out as money since you can't take money out of your HSA without them here's my of your HSA without them here's my of your HSA without them here's my personal system to ensure that I never personal system to ensure that I never personal system to ensure that I never lose the receipt immediately after lose the receipt immediately after lose the receipt immediately after paying a medical bill or arriving home paying a medical bill or arriving home paying a medical bill or arriving home from the doctor's office I take a from the doctor's office I take a from the doctor's office I take a picture of that receipt then I upload it picture of that receipt then I upload it picture of that receipt then I upload it to a file storage system somewhere out to a file storage system somewhere out to a file storage system somewhere out there on the cloud now you can use there on the cloud now you can use there on the cloud now you can use something like Google Drive Dropbox or something like Google Drive Dropbox or something like Google Drive Dropbox or Evernote I personally use Google Drive Evernote I personally use Google Drive Evernote I personally use Google Drive and I have a specific folder set up for and I have a specific folder set up for and I have a specific folder set up for this type of thing I have one folder for this type of thing I have one folder for this type of thing I have one folder for receipts I haven't cashed in yet and receipts I haven't cashed in yet and receipts I haven't cashed in yet and another one for when I eventually do another one for when I eventually do another one for when I eventually do that way I'll be able to keep track of that way I'll be able to keep track of that way I'll be able to keep track of everything I'm a weirdo who likes to everything I'm a weirdo who likes to everything I'm a weirdo who likes to stay super organized and I'm gonna stay super organized and I'm gonna stay super organized and I'm gonna overachiever so you don't have to go overachiever so you don't have to go overachiever so you don't have to go this far but I also track my medical this far but I also track my medical this far but I also track my medical expenses in a Google spreadsheet where I expenses in a Google spreadsheet where I expenses in a Google spreadsheet where I track a lot of my other life things as track a lot of my other life things as track a lot of my other life things as well now you can't just submit receipts well now you can't just submit receipts well now you can't just submit receipts for everything so let's talk about the for everything so let's talk about the for everything so let's talk about the medical expenses that are eligible for medical expenses that are eligible for medical expenses that are eligible for reimbursement reimbursement reimbursement we've got acupuncture bandages body we've got acupuncture bandages body we've got acupuncture bandages body scans chiropractor contact solution scans chiropractor contact solution scans chiropractor contact solution glasses doctor's appointments surgery glasses doctor's appointments surgery glasses doctor's appointments surgery therapy wigs x-rays Guide Dogs if you therapy wigs x-rays Guide Dogs if you therapy wigs x-rays Guide Dogs if you get a guide dog you can turn the receipt get a guide dog you can turn the receipt get a guide dog you can turn the receipt into your HSA and get that stuff paid into your HSA and get that stuff paid into your HSA and get that stuff paid for tax free those are just a few the for tax free those are just a few the for tax free those are just a few the list is pretty long and the IRS will list is pretty long and the IRS will list is pretty long and the IRS will update it every year update it every year update it every year I would assume that the vast majority of I would assume that the vast majority of I would assume that the vast majority of things on this list will not change to things on this list will not change to things on this list will not change to give you a detailed book and everything give you a detailed book and everything give you a detailed book and everything on the list I'll throw a link down the on the list I'll throw a link down the on the list I'll throw a link down the description so you can go over it a description so you can go over it a description so you can go over it a little bit more for yourself since little bit more for yourself since little bit more for yourself since you'll be using or HSA as a retirement you'll be using or HSA as a retirement you'll be using or HSA as a retirement investment vehicle we need to have the investment vehicle we need to have the investment vehicle we need to have the very important fees talk no matter which very important fees talk no matter which very important fees talk no matter which company you use for your HSA you should company you use for your HSA you should company you use for your HSA you should be aware of if they charge you any fees be aware of if they charge you any fees be aware of if they charge you any fees most won't but some will charge as for most won't but some will charge as for most won't but some will charge as for the fees when it comes to the the fees when it comes to the the fees when it comes to the investments that you choose I personally investments that you choose I personally investments that you choose I personally go with a low cost index fund preferably go with a low cost index fund preferably go with a low cost index fund preferably something from Vanguard if they're something from Vanguard if they're something from Vanguard if they're available now it's time to get into some available now it's time to get into some available now it's time to get into some behind the scenes how the budges pact behind the scenes how the budges pact behind the scenes how the budges pact how the sausage is made and show you my how the sausage is made and show you my how the sausage is made and show you my HSA so here's my HSA my current employer HSA so here's my HSA my current employer HSA so here's my HSA my current employer uses health equity as the provider I uses health equity as the provider I uses health equity as the provider I like them they're perfectly fine I have like them they're perfectly fine I have like them they're perfectly fine I have no issue with them at this point in time no issue with them at this point in time no issue with them at this point in time now leading up to this year I wasn't now leading up to this year I wasn't now leading up to this year I wasn't contributing to an HSA for a couple of contributing to an HSA for a couple of contributing to an HSA for a couple of different reasons one of them was I was different reasons one of them was I was different reasons one of them was I was on some medication that I wanted to get on some medication that I wanted to get on some medication that I wanted to get off before I started contributing to an off before I started contributing to an off before I started contributing to an HSA and the other one was I didn't HSA and the other one was I didn't HSA and the other one was I didn't understand an HSA and how important it understand an HSA and how important it understand an HSA and how important it was and how much it can help your was and how much it can help your was and how much it can help your retirement help supplement your retirement help supplement your retirement help supplement your retirement and grow even more wealth for retirement and grow even more wealth for retirement and grow even more wealth for your future self so that's why my your future self so that's why my your future self so that's why my account balance isn't too high because account balance isn't too high because account balance isn't too high because this is the first year if you notice this is the first year if you notice this is the first year if you notice here I have the breakdown of my account here I have the breakdown of my account here I have the breakdown of my account balance so I've got fourteen hundred balance so I've got fourteen hundred balance so I've got fourteen hundred dollars invested and available to spend dollars invested and available to spend dollars invested and available to spend or do something with I've got $, now or do something with I've got $, now or do something with I've got $, now like I said at the very beginning of the like I said at the very beginning of the like I said at the very beginning of the video I have to leave a thousand dollars video I have to leave a thousand dollars video I have to leave a thousand dollars available to spend I can never invest a available to spend I can never invest a available to spend I can never invest a thousand dollars that's a minimum that I thousand dollars that's a minimum that I thousand dollars that's a minimum that I have to keep my account but I still have have to keep my account but I still have have to keep my account but I still have three hundred and thirty seven dollars three hundred and thirty seven dollars three hundred and thirty seven dollars to invest but I'm gonna get to that in a to invest but I'm gonna get to that in a to invest but I'm gonna get to that in a minute and what I'm doing with that minute and what I'm doing with that minute and what I'm doing with that because it's very important now let me because it's very important now let me because it's very important now let me show you how I have my investments show you how I have my investments show you how I have my investments broken down here are the two investments broken down here are the two investments broken down here are the two investments I've got a bond and I've got a Vanguard I've got a bond and I've got a Vanguard I've got a bond and I've got a Vanguard growth index right here and I've got it growth index right here and I've got it growth index right here and I've got it it's a ninety five percent in the growth it's a ninety five percent in the growth it's a ninety five percent in the growth index and five percent in a bond these index and five percent in a bond these index and five percent in a bond these are the investment options that I have are the investment options that I have are the investment options that I have available to me available to me available to me luckily health equity has all low cost luckily health equity has all low cost luckily health equity has all low cost Vanguard index funds which makes my Vanguard index funds which makes my Vanguard index funds which makes my heart really happy and they're all heart really happy and they're all heart really happy and they're all passively managed which leave which passively managed which leave which passively managed which leave which makes the cost very low that's why it's makes the cost very low that's why it's makes the cost very low that's why it's a low cost type index fund they also a low cost type index fund they also a low cost type index fund they also have retire have retire have retire fun's in here as well going back to what fun's in here as well going back to what fun's in here as well going back to what I mentioned at the very beginning of the I mentioned at the very beginning of the I mentioned at the very beginning of the video as you can see I still have three video as you can see I still have three video as you can see I still have three hundred and thirty seven dollars hundred and thirty seven dollars hundred and thirty seven dollars available to invest now I just had that available to invest now I just had that available to invest now I just had that money deposited into my HSA account and money deposited into my HSA account and money deposited into my HSA account and I don't have to do anything right now I don't have to do anything right now I don't have to do anything right now because I have turned on automatic because I have turned on automatic because I have turned on automatic investments so this money will be investments so this money will be investments so this money will be invested first thing Monday morning if invested first thing Monday morning if invested first thing Monday morning if you have an HSA I highly recommend you have an HSA I highly recommend you have an HSA I highly recommend turning on auto invest because you don't turning on auto invest because you don't turning on auto invest because you don't want to have to log into your account want to have to log into your account want to have to log into your account and be clicking to invest every time you and be clicking to invest every time you and be clicking to invest every time you get money deposited into your account get money deposited into your account get money deposited into your account because time in the market is more because time in the market is more because time in the market is more important than timing the market you important than timing the market you important than timing the market you want to leave that out of your hands out want to leave that out of your hands out want to leave that out of your hands out of your brain and not even worry about of your brain and not even worry about of your brain and not even worry about having to click invest because it's having to click invest because it's having to click invest because it's automatically gonna be doing it for you automatically gonna be doing it for you automatically gonna be doing it for you and just to show you my investment fee and just to show you my investment fee and just to show you my investment fee if you will they have a monthly if you will they have a monthly if you will they have a monthly administration fee of point zero three administration fee of point zero three administration fee of point zero three three percent I can't get around this three percent I can't get around this three percent I can't get around this it's just the way that it is with health it's just the way that it is with health it's just the way that it is with health equity you so I kind of have to deal equity you so I kind of have to deal equity you so I kind of have to deal with it but luckily it's pretty low so with it but luckily it's pretty low so with it but luckily it's pretty low so it's not that big of a problem if it was it's not that big of a problem if it was it's not that big of a problem if it was higher than that I'd probably go to my higher than that I'd probably go to my higher than that I'd probably go to my HR department and be like hey look at HR department and be like hey look at HR department and be like hey look at this this is really expensive can we this this is really expensive can we this this is really expensive can we switch companies where can you talk to switch companies where can you talk to switch companies where can you talk to the company to get that feel o'er just the company to get that feel o'er just the company to get that feel o'er just to reiterate the monetary benefits again to reiterate the monetary benefits again to reiterate the monetary benefits again if you were single and max out your HSA if you were single and max out your HSA if you were single and max out your HSA for twenty years then at a seven percent for twenty years then at a seven percent for twenty years then at a seven percent return you'll have over a hundred and return you'll have over a hundred and return you'll have over a hundred and forty three thousand dollars after forty three thousand dollars after forty three thousand dollars after thirty years you'd have over three thirty years you'd have over three thirty years you'd have over three hundred and thirty thousand dollars if hundred and thirty thousand dollars if hundred and thirty thousand dollars if you were married and you max out seven you were married and you max out seven you were married and you max out seven thousand dollars per year for twenty thousand dollars per year for twenty thousand dollars per year for twenty years then at a seven percent return years then at a seven percent return years then at a seven percent return you'll have over two hundred and you'll have over two hundred and you'll have over two hundred and eighty-six thousand dollars and after eighty-six thousand dollars and after eighty-six thousand dollars and after thirty years you'll have over six thirty years you'll have over six thirty years you'll have over six hundred and sixty thousand dollars even hundred and sixty thousand dollars even hundred and sixty thousand dollars even though you might be healthy now we're though you might be healthy now we're though you might be healthy now we're all gonna age and see a spike in our all gonna age and see a spike in our all gonna age and see a spike in our medical expenses as the years go on medical expenses as the years go on medical expenses as the years go on that's why it's important to take that's why it's important to take that's why it's important to take advantage of this HSA right now it's advantage of this HSA right now it's advantage of this HSA right now it's gonna save you a ton of money in the gonna save you a ton of money in the gonna save you a ton of money in the future if you just make sure to invest future if you just make sure to invest future if you just make sure to invest the money in your account let me know in the money in your account let me know in the money in your account let me know in the comments below what you think of an the comments below what you think of an the comments below what you think of an HSA or if you have any more questions HSA or if you have any more questions HSA or if you have any more questions check out the links in the description check out the links in the description check out the links in the description to different playlists to help you all to different playlists to help you all to different playlists to help you all solve your personal finance and solve your personal finance and solve your personal finance and investing needs I'll see in the next one investing needs I'll see in the next one investing needs I'll see in the next one friends a Dios quick disclaimer this friends a Dios quick disclaimer this friends a Dios quick disclaimer this video is for informational video is for informational video is for informational purposes only I am NOT a financial purposes only I am NOT a financial purposes only I am NOT a financial professional please do your own research professional please do your own research professional please do your own research research before investing your money WEBVTT Kind: captions Language: en i actually did it i became a millionaire i actually did it i became a millionaire i actually did it i became a millionaire about a month after turning . about a month after turning . about a month after turning . this is the screenshot from my personal this is the screenshot from my personal this is the screenshot from my personal capital account where i track my net capital account where i track my net capital account where i track my net worth i am super excited to worth i am super excited to worth i am super excited to share this milestone with you today on share this milestone with you today on share this milestone with you today on how i was able to how i was able to how i was able to become a millionaire without receiving become a millionaire without receiving become a millionaire without receiving any sort of any sort of any sort of inheritance or being famous inheritance or being famous inheritance or being famous or winning the lottery although i or winning the lottery although i or winning the lottery although i wouldn't be opposed to that wouldn't be opposed to that wouldn't be opposed to that it's just my journey a single girl who it's just my journey a single girl who it's just my journey a single girl who has built her wealth one step at a time has built her wealth one step at a time has built her wealth one step at a time i am tiffany thomas with i am tiffany thomas with i am tiffany thomas with wealthytiffany.com and i have achieved wealthytiffany.com and i have achieved wealthytiffany.com and i have achieved quite a few milestones along my journey quite a few milestones along my journey quite a few milestones along my journey including quitting my corporate job at including quitting my corporate job at including quitting my corporate job at age age age becoming financially free at age becoming financially free at age becoming financially free at age purchasing four properties and now purchasing four properties and now purchasing four properties and now becoming a millionaire at age . becoming a millionaire at age . becoming a millionaire at age . hit that like button and the subscribe hit that like button and the subscribe hit that like button and the subscribe button and we're gonna dive right in button and we're gonna dive right in button and we're gonna dive right in today i am sharing with you my financial today i am sharing with you my financial today i am sharing with you my financial situation situation situation over the years and unfortunately i do over the years and unfortunately i do over the years and unfortunately i do not not not have the information from way back when have the information from way back when have the information from way back when because i didn't know i would be sharing because i didn't know i would be sharing because i didn't know i would be sharing this video this video this video but i made my best guesses let's begin but i made my best guesses let's begin but i made my best guesses let's begin when i had just graduated college this when i had just graduated college this when i had just graduated college this was in and i was was in and i was was in and i was years old i was able to live at home years old i was able to live at home years old i was able to live at home while i attended college so my expenses while i attended college so my expenses while i attended college so my expenses were kept very low were kept very low were kept very low my parents were nice enough to let me my parents were nice enough to let me my parents were nice enough to let me drive an old car that they had purchased drive an old car that they had purchased drive an old car that they had purchased but i did not own that car i did not but i did not own that car i did not but i did not own that car i did not take out any student loans while take out any student loans while take out any student loans while attending college i worked part-time so attending college i worked part-time so attending college i worked part-time so that i could that i could that i could pay for college while i attended college pay for college while i attended college pay for college while i attended college i was making around i was making around i was making around six dollars to eight dollars or so six dollars to eight dollars or so six dollars to eight dollars or so depending on the job depending on the job depending on the job i chose a university that wasn't super i chose a university that wasn't super i chose a university that wasn't super expensive expensive expensive but still had a really good business but still had a really good business but still had a really good business program i graduated with my bachelor's program i graduated with my bachelor's program i graduated with my bachelor's in in in marketing i did not have any debt when i marketing i did not have any debt when i marketing i did not have any debt when i graduated from college graduated from college graduated from college i believed in putting things on a credit i believed in putting things on a credit i believed in putting things on a credit card that i could pay for card that i could pay for card that i could pay for in full before interest started accruing in full before interest started accruing in full before interest started accruing i am definitely more of a saver than a i am definitely more of a saver than a i am definitely more of a saver than a spender spender spender i also kept a budget but it was more of i also kept a budget but it was more of i also kept a budget but it was more of a guideline so i could see a guideline so i could see a guideline so i could see exactly how much was coming in and how exactly how much was coming in and how exactly how much was coming in and how much was going out much was going out much was going out and where i needed to adjust over time i and where i needed to adjust over time i and where i needed to adjust over time i set up a set up a set up a cd a certificate of deposit at my credit cd a certificate of deposit at my credit cd a certificate of deposit at my credit union union union so i had some money in there and my net so i had some money in there and my net so i had some money in there and my net worth was worth was worth was at least eight thousand dollars i don't at least eight thousand dollars i don't at least eight thousand dollars i don't have the exact number because have the exact number because have the exact number because i had different savings accounts at i had different savings accounts at i had different savings accounts at different credit unions different credit unions different credit unions and i didn't have access to all of those and i didn't have access to all of those and i didn't have access to all of those statements but we are just sticking with statements but we are just sticking with statements but we are just sticking with at least eight thousand dollars for now at least eight thousand dollars for now at least eight thousand dollars for now let's move to the year . i had some let's move to the year . i had some let's move to the year . i had some different temp different temp different temp jobs for about six months and then i was jobs for about six months and then i was jobs for about six months and then i was fortunate enough to get fortunate enough to get fortunate enough to get two different job offers i ended up two different job offers i ended up two different job offers i ended up taking the job offer that was further taking the job offer that was further taking the job offer that was further away away away but also paid a little bit more it but also paid a little bit more it but also paid a little bit more it started at started at started at per hour about a month after starting per hour about a month after starting per hour about a month after starting that job since i was in my that job since i was in my that job since i was in my career i thought it was time to buy a career i thought it was time to buy a career i thought it was time to buy a car car car on my own i decided to buy my dream on my own i decided to buy my dream on my own i decided to buy my dream vehicle which was a vehicle which was a vehicle which was a toyota tacoma i bought that for about toyota tacoma i bought that for about toyota tacoma i bought that for about eighteen thousand dollars eighteen thousand dollars eighteen thousand dollars i was still living at home so my i was still living at home so my i was still living at home so my expenses were still really low expenses were still really low expenses were still really low a few months after i started the job a few months after i started the job a few months after i started the job they allowed me to contribute to a k they allowed me to contribute to a k they allowed me to contribute to a k which they were giving a six percent which they were giving a six percent which they were giving a six percent match on so i contributed up to the match on so i contributed up to the match on so i contributed up to the match match match and continued to contribute to that over and continued to contribute to that over and continued to contribute to that over the years the years the years even though i didn't have a clue on what even though i didn't have a clue on what even though i didn't have a clue on what i was doing when i was choosing the i was doing when i was choosing the i was doing when i was choosing the funds to put inside of my k but i did funds to put inside of my k but i did funds to put inside of my k but i did it anyway it anyway it anyway my net worth at the end of was at my net worth at the end of was at my net worth at the end of was at least least least grand i don't have the exact numbers grand i don't have the exact numbers grand i don't have the exact numbers on that but on that but on that but we'll just stick with at least grand we'll just stick with at least grand we'll just stick with at least grand in in in at age and if you're wondering why at age and if you're wondering why at age and if you're wondering why i'm still in i'm still in i'm still in it's because my birthday is in july it's because my birthday is in july it's because my birthday is in july which is the best time to have a which is the best time to have a which is the best time to have a birthday birthday birthday if you have a summer birthday comment if you have a summer birthday comment if you have a summer birthday comment below and tell me because below and tell me because below and tell me because seriously it's the best time to have a seriously it's the best time to have a seriously it's the best time to have a birthday all right back to my story birthday all right back to my story birthday all right back to my story in the beginning of i decided it in the beginning of i decided it in the beginning of i decided it was time for me to move out of my was time for me to move out of my was time for me to move out of my parents house parents house parents house so that i could be closer to work i so that i could be closer to work i so that i could be closer to work i really hated commuting about minutes really hated commuting about minutes really hated commuting about minutes to work every day to work every day to work every day so now i could save on gas but i did so now i could save on gas but i did so now i could save on gas but i did have to pay rent have to pay rent have to pay rent i got a roommate to split the rent with i got a roommate to split the rent with i got a roommate to split the rent with it was a two-bedroom two-bathroom condo it was a two-bedroom two-bathroom condo it was a two-bedroom two-bathroom condo and my roommate was a friend from and my roommate was a friend from and my roommate was a friend from college college college also i was bringing my lunch to work also i was bringing my lunch to work also i was bringing my lunch to work about of the time about of the time about of the time and i created a video about how i was and i created a video about how i was and i created a video about how i was able to do this so i will leave a link able to do this so i will leave a link able to do this so i will leave a link above and below in the description you above and below in the description you above and below in the description you can check that out can check that out can check that out also i didn't go out to eat that much i also i didn't go out to eat that much i also i didn't go out to eat that much i was pretty frugal was pretty frugal was pretty frugal as a matter of fact when i moved out of as a matter of fact when i moved out of as a matter of fact when i moved out of my parents house i asked my mom if i my parents house i asked my mom if i my parents house i asked my mom if i could take could take could take all of the items in the bathroom they all of the items in the bathroom they all of the items in the bathroom they had three bathrooms and it was just the had three bathrooms and it was just the had three bathrooms and it was just the two of them living there two of them living there two of them living there so i didn't think they really needed so i didn't think they really needed so i didn't think they really needed everything that was in the bathroom i everything that was in the bathroom i everything that was in the bathroom i was using was using was using and my mom said yes of course you can and my mom said yes of course you can and my mom said yes of course you can and i ended up taking the and i ended up taking the and i ended up taking the toilet bowl cleaner uh my mom was a toilet bowl cleaner uh my mom was a toilet bowl cleaner uh my mom was a little surprised when she found out i little surprised when she found out i little surprised when she found out i took that took that took that that's how frugal i was being i still that's how frugal i was being i still that's how frugal i was being i still was driving my toyota tacoma was driving my toyota tacoma was driving my toyota tacoma which was the only debt that i had there which was the only debt that i had there which was the only debt that i had there are two things i did are two things i did are two things i did when i got paid one of them was to pay when i got paid one of them was to pay when i got paid one of them was to pay my tithing my tithing my tithing the other one was to pay myself i ended the other one was to pay myself i ended the other one was to pay myself i ended up up up setting up an auto transfer from my setting up an auto transfer from my setting up an auto transfer from my paycheck paycheck paycheck directly into my savings account so that directly into my savings account so that directly into my savings account so that was completely automated was completely automated was completely automated i feel like these two things made such a i feel like these two things made such a i feel like these two things made such a big big big difference in improving my money difference in improving my money difference in improving my money situation over time situation over time situation over time unfortunately i have no clue on what to unfortunately i have no clue on what to unfortunately i have no clue on what to guess what my net worth was at the end guess what my net worth was at the end guess what my net worth was at the end of this year of this year of this year but we will get back to calculating that but we will get back to calculating that but we will get back to calculating that in the next few years in the next few years in the next few years in i was able to pay off my toyota in i was able to pay off my toyota in i was able to pay off my toyota tacoma so i no longer had that debt tacoma so i no longer had that debt tacoma so i no longer had that debt i made it a priority to pay it off in i made it a priority to pay it off in i made it a priority to pay it off in two years two years two years and i made extra payments along the way and i made extra payments along the way and i made extra payments along the way i set that goal i set that goal i set that goal and made it my focus so it actually and made it my focus so it actually and made it my focus so it actually happened happened happened let's jump to at age . let's jump to at age . let's jump to at age . this is when i bought my first property this is when i bought my first property this is when i bought my first property for about a hundred and thirty thousand for about a hundred and thirty thousand for about a hundred and thirty thousand dollars dollars dollars and if you want more detail on exactly and if you want more detail on exactly and if you want more detail on exactly how much i paid for how much i paid for how much i paid for all of my properties and what they are all of my properties and what they are all of my properties and what they are worth now i have a video with all of worth now i have a video with all of worth now i have a video with all of those details those details those details so i will leave a link above and below so i will leave a link above and below so i will leave a link above and below in the description and you can check in the description and you can check in the description and you can check that one out that one out that one out and yes i still had roommates that were and yes i still had roommates that were and yes i still had roommates that were helping to pay my mortgage helping to pay my mortgage helping to pay my mortgage and yes i was still driving my tacoma and yes i was still driving my tacoma and yes i was still driving my tacoma which was now paid off which was now paid off which was now paid off and yes i was still bringing my lunch to and yes i was still bringing my lunch to and yes i was still bringing my lunch to work about work about work about of the time but also i was having fun i of the time but also i was having fun i of the time but also i was having fun i was out doing things that i love to do was out doing things that i love to do was out doing things that i love to do and one of those is to travel i have and one of those is to travel i have and one of those is to travel i have traveled to traveled to traveled to numerous places over the years and i've numerous places over the years and i've numerous places over the years and i've been able to do that because been able to do that because been able to do that because i made it a priority for myself and i i made it a priority for myself and i i made it a priority for myself and i cut back on spending in other areas that cut back on spending in other areas that cut back on spending in other areas that were not important to me were not important to me were not important to me so that i could easily spend on travel so that i could easily spend on travel so that i could easily spend on travel i never put anything on a credit card i never put anything on a credit card i never put anything on a credit card that i could not pay off in full that i could not pay off in full that i could not pay off in full within that time frame before it started within that time frame before it started within that time frame before it started accruing interest accruing interest accruing interest so i wasn't just sitting at home being so i wasn't just sitting at home being so i wasn't just sitting at home being boring counting all of my money boring counting all of my money boring counting all of my money toward the beginning of when i was toward the beginning of when i was toward the beginning of when i was still years old still years old still years old and it was right after the crash and it was right after the crash and it was right after the crash guess what happened i lost my job my guess what happened i lost my job my guess what happened i lost my job my company ended up closing their company ended up closing their company ended up closing their salt lake city office and i no longer salt lake city office and i no longer salt lake city office and i no longer had a job had a job had a job luckily they did give me a pretty good luckily they did give me a pretty good luckily they did give me a pretty good severance package because i had been severance package because i had been severance package because i had been there for so long there for so long there for so long and i had money in my savings account and i had money in my savings account and i had money in my savings account and i was still keeping my expenses and i was still keeping my expenses and i was still keeping my expenses really low really low really low i still had my roommates still bringing i still had my roommates still bringing i still had my roommates still bringing my lunch to work and still driving my my lunch to work and still driving my my lunch to work and still driving my tacoma tacoma tacoma so what's the first thing i did after so what's the first thing i did after so what's the first thing i did after getting laid off getting laid off getting laid off i went on vacation my friend had i went on vacation my friend had i went on vacation my friend had hookups for disney world she gave us hookups for disney world she gave us hookups for disney world she gave us free tickets free tickets free tickets free hotel free food basically all i had free hotel free food basically all i had free hotel free food basically all i had to do was buy the plane ticket to get to do was buy the plane ticket to get to do was buy the plane ticket to get there and the plane ticket to get back there and the plane ticket to get back there and the plane ticket to get back i felt comfortable taking the vacation i felt comfortable taking the vacation i felt comfortable taking the vacation although i did hesitate in the beginning although i did hesitate in the beginning although i did hesitate in the beginning but after i thought about it i was but after i thought about it i was but after i thought about it i was prepared i had enough in savings i had a prepared i had enough in savings i had a prepared i had enough in savings i had a severance my expenses were low severance my expenses were low severance my expenses were low so i was good to go and i'm glad i did so i was good to go and i'm glad i did so i was good to go and i'm glad i did because it was a really really fun trip because it was a really really fun trip because it was a really really fun trip now i needed to find a new job i really now i needed to find a new job i really now i needed to find a new job i really wanted something in marketing even wanted something in marketing even wanted something in marketing even though i wasn't doing that though i wasn't doing that though i wasn't doing that currently but i did have my degree in currently but i did have my degree in currently but i did have my degree in marketing so marketing so marketing so that's what i looked for i was out of that's what i looked for i was out of that's what i looked for i was out of work for about work for about work for about two months and then i did find a job in two months and then i did find a job in two months and then i did find a job in marketing marketing marketing the downside was that it was a huge pay the downside was that it was a huge pay the downside was that it was a huge pay cut cut cut i went from making just over an hour i went from making just over an hour i went from making just over an hour to making an hour which did to making an hour which did to making an hour which did hurt it hurt my pride especially but hurt it hurt my pride especially but hurt it hurt my pride especially but honestly with the honestly with the honestly with the downturn in the economy there were not a downturn in the economy there were not a downturn in the economy there were not a lot of marketing jobs lot of marketing jobs lot of marketing jobs that's what businesses usually cut back that's what businesses usually cut back that's what businesses usually cut back on when there's on when there's on when there's an economy downturn and i knew i didn't an economy downturn and i knew i didn't an economy downturn and i knew i didn't have that much experience i had a little have that much experience i had a little have that much experience i had a little in college in college in college but it's really what i wanted to get but it's really what i wanted to get but it's really what i wanted to get into so i swallowed my pride and into so i swallowed my pride and into so i swallowed my pride and took the job luckily all of my expenses took the job luckily all of my expenses took the job luckily all of my expenses were still were still were still really low still had that tacoma still really low still had that tacoma still really low still had that tacoma still had my roommates had my roommates had my roommates still bringing my lunch to work well i still bringing my lunch to work well i still bringing my lunch to work well i would be bringing my lunch to work when would be bringing my lunch to work when would be bringing my lunch to work when i started i started i started my new job and this is right around the my new job and this is right around the my new job and this is right around the time when i started using my time when i started using my time when i started using my credit card for all of my purchases i credit card for all of my purchases i credit card for all of my purchases i had a friend mentioned to me that had a friend mentioned to me that had a friend mentioned to me that he only uses his credit card because he he only uses his credit card because he he only uses his credit card because he wants to get all of the wants to get all of the wants to get all of the credit card reward points possible and i credit card reward points possible and i credit card reward points possible and i thought why am i not doing that thought why am i not doing that thought why am i not doing that so i switched over to putting all of my so i switched over to putting all of my so i switched over to putting all of my purchases that i possibly could purchases that i possibly could purchases that i possibly could on my credit card and i don't recommend on my credit card and i don't recommend on my credit card and i don't recommend this for people that this for people that this for people that cannot handle the temptation of spending cannot handle the temptation of spending cannot handle the temptation of spending more than they normally would or not more than they normally would or not more than they normally would or not being able to pay off their credit card being able to pay off their credit card being able to pay off their credit card in full in full in full every month but it was something that every month but it was something that every month but it was something that worked for me worked for me worked for me so i ended up getting a lot more reward so i ended up getting a lot more reward so i ended up getting a lot more reward points after doing this points after doing this points after doing this in at age i decided to get my in at age i decided to get my in at age i decided to get my masters masters masters in business and guess what i did i in business and guess what i did i in business and guess what i did i looked for a university that was looked for a university that was looked for a university that was relatively inexpensive but yet relatively inexpensive but yet relatively inexpensive but yet accredited i also found one accredited i also found one accredited i also found one that was set up so you could pay a flat that was set up so you could pay a flat that was set up so you could pay a flat amount for six months and take as many amount for six months and take as many amount for six months and take as many classes as you wanted to classes as you wanted to classes as you wanted to so i ended up getting my degree in one so i ended up getting my degree in one so i ended up getting my degree in one year instead of the two years it year instead of the two years it year instead of the two years it normally takes normally takes normally takes and i still worked full time while i and i still worked full time while i and i still worked full time while i went to college so i could pay went to college so i could pay went to college so i could pay for my mba another thing that i did was for my mba another thing that i did was for my mba another thing that i did was ask my company if they would help pay ask my company if they would help pay ask my company if they would help pay for me to get my mba for me to get my mba for me to get my mba there was no policy for this at the there was no policy for this at the there was no policy for this at the company at the time company at the time company at the time and they ended up paying for part of it and they ended up paying for part of it and they ended up paying for part of it which was which was which was super great so i am glad that i at least super great so i am glad that i at least super great so i am glad that i at least asked about that asked about that asked about that in when i was years old i really in when i was years old i really in when i was years old i really started to think that i needed to make started to think that i needed to make started to think that i needed to make more of my money work for me more of my money work for me more of my money work for me i ended up rolling my old k and i ended up rolling my old k and i ended up rolling my old k and pension from the company i worked at pension from the company i worked at pension from the company i worked at previously previously previously into an ira i also met with a into an ira i also met with a into an ira i also met with a financial planner who was our k rep financial planner who was our k rep financial planner who was our k rep for the company that i worked at for the company that i worked at for the company that i worked at he recommended setting up a whole life he recommended setting up a whole life he recommended setting up a whole life insurance policy insurance policy insurance policy so i did that and ended up canceling so i did that and ended up canceling so i did that and ended up canceling that later i knew it wasn't right after that later i knew it wasn't right after that later i knew it wasn't right after i did more research about it i did more research about it i did more research about it and i lost thousands of dollars on that and i lost thousands of dollars on that and i lost thousands of dollars on that but i but i but i cut my losses and learned my lesson i no cut my losses and learned my lesson i no cut my losses and learned my lesson i no longer invest in things that i don't longer invest in things that i don't longer invest in things that i don't fully understand fully understand fully understand and i know why i am investing in the and i know why i am investing in the and i know why i am investing in the things that i'm investing in things that i'm investing in things that i'm investing in my tacoma was getting a little bit older my tacoma was getting a little bit older my tacoma was getting a little bit older and i kept having to take it to the car and i kept having to take it to the car and i kept having to take it to the car place which i place which i place which i don't like going to the car place so i don't like going to the car place so i don't like going to the car place so i ended up ended up ended up trading that in and purchasing a brand trading that in and purchasing a brand trading that in and purchasing a brand new toyota rav new toyota rav new toyota rav for about twenty five thousand dollars i for about twenty five thousand dollars i for about twenty five thousand dollars i got a zero percent got a zero percent got a zero percent interest loan and also i know not to buy interest loan and also i know not to buy interest loan and also i know not to buy a brand new car a brand new car a brand new car lesson learned i met with that financial lesson learned i met with that financial lesson learned i met with that financial planner before i purchased my car so planner before i purchased my car so planner before i purchased my car so at that time my net worth was at that time my net worth was at that time my net worth was in at age i set up a brokerage in at age i set up a brokerage in at age i set up a brokerage account and bought my very first stock account and bought my very first stock account and bought my very first stock if you're curious about the details on if you're curious about the details on if you're curious about the details on that i have a video i created for that that i have a video i created for that that i have a video i created for that i'll leave a link above i'll leave a link above i'll leave a link above and below and i open and funded a roth and below and i open and funded a roth and below and i open and funded a roth ira ira ira i invested mostly in a total stock i invested mostly in a total stock i invested mostly in a total stock market fund although i had a few stocks market fund although i had a few stocks market fund although i had a few stocks in there too in there too in there too i started to roll my money from that i started to roll my money from that i started to roll my money from that traditional ira that i had traditional ira that i had traditional ira that i had into my roth ira and if you want more into my roth ira and if you want more into my roth ira and if you want more details about that details about that details about that i have a video i created for you i'll i have a video i created for you i'll i have a video i created for you i'll leave a link above and below in the leave a link above and below in the leave a link above and below in the description description description also the company i was working for had also the company i was working for had also the company i was working for had an option for a roth k so when they an option for a roth k so when they an option for a roth k so when they opened that opened that opened that i started contributing the match that i started contributing the match that i started contributing the match that they were giving they were giving they were giving to that roth k in at age i to that roth k in at age i to that roth k in at age i bought my second property bought my second property bought my second property for for for this was strictly a rental property but this was strictly a rental property but this was strictly a rental property but it helped to it helped to it helped to increase my net worth and i also started increase my net worth and i also started increase my net worth and i also started my blog this year which later turned my blog this year which later turned my blog this year which later turned into into into my business in at age i my business in at age i my business in at age i purchased my purchased my purchased my third property for hundred and eleven third property for hundred and eleven third property for hundred and eleven thousand dollars thousand dollars thousand dollars i still had my roommates i was still i still had my roommates i was still i still had my roommates i was still bringing my lunch to work bringing my lunch to work bringing my lunch to work and i still had my toyota rav i also and i still had my toyota rav i also and i still had my toyota rav i also started tracking my net worth better started tracking my net worth better started tracking my net worth better i had a mint.com account for a while but i had a mint.com account for a while but i had a mint.com account for a while but i didn't actually i didn't actually i didn't actually plug in all of the accounts that i had plug in all of the accounts that i had plug in all of the accounts that i had so it didn't so it didn't so it didn't recognize that i had a mortgage or a recognize that i had a mortgage or a recognize that i had a mortgage or a house house house but i started utilizing it better so it but i started utilizing it better so it but i started utilizing it better so it would give me a more accurate picture of would give me a more accurate picture of would give me a more accurate picture of my net worth my net worth my net worth i also now use personal capital which i also now use personal capital which i also now use personal capital which you saw that screenshot at the beginning you saw that screenshot at the beginning you saw that screenshot at the beginning but this is really helpful because it but this is really helpful because it but this is really helpful because it automatically tracks your net worth over automatically tracks your net worth over automatically tracks your net worth over time time time you can link all of your accounts to it you can link all of your accounts to it you can link all of your accounts to it your credit card accounts your mortgage your credit card accounts your mortgage your credit card accounts your mortgage accounts accounts accounts your checking and savings everything so your checking and savings everything so your checking and savings everything so you can see you can see you can see all in one place your overall money all in one place your overall money all in one place your overall money picture picture picture if you're interested in setting up an if you're interested in setting up an if you're interested in setting up an account to make it easier to track account to make it easier to track account to make it easier to track all of your money in just one place i'll all of your money in just one place i'll all of your money in just one place i'll leave a referral link below in the leave a referral link below in the leave a referral link below in the description for personal capital description for personal capital description for personal capital at the end of the year my net worth was at the end of the year my net worth was at the end of the year my net worth was in at age i quit my in at age i quit my in at age i quit my corporate job corporate job corporate job i was no longer happy there and it may i was no longer happy there and it may i was no longer happy there and it may have been a little early to quit that have been a little early to quit that have been a little early to quit that job job job but i did have a few things in place i but i did have a few things in place i but i did have a few things in place i was starting my business so i had that was starting my business so i had that was starting my business so i had that going going going i also had my rental property so i had i also had my rental property so i had i also had my rental property so i had rental income rental income rental income and i had my roommates i also had my and i had my roommates i also had my and i had my roommates i also had my brokerage account brokerage account brokerage account that i could pull money out if i needed that i could pull money out if i needed that i could pull money out if i needed to i had my roth ira that i could pull to i had my roth ira that i could pull to i had my roth ira that i could pull money out without a penalty if i needed money out without a penalty if i needed money out without a penalty if i needed to to to and i had money in savings so i felt and i had money in savings so i felt and i had money in savings so i felt comfortable quitting my job at that time comfortable quitting my job at that time comfortable quitting my job at that time and thought and thought and thought okay if things don't work out i can okay if things don't work out i can okay if things don't work out i can always get another job always get another job always get another job also i had heard about the fire also i had heard about the fire also i had heard about the fire community financial independence retire community financial independence retire community financial independence retire early and people were retiring early early and people were retiring early early and people were retiring early like in their s s like in their s s like in their s s s and i thought what this was crazy so s and i thought what this was crazy so s and i thought what this was crazy so i wanted to focus on that i paid off my i wanted to focus on that i paid off my i wanted to focus on that i paid off my car in i ended up rolling car in i ended up rolling car in i ended up rolling my old k from my job into my old k from my job into my old k from my job into what was my roth k so i rolled that what was my roth k so i rolled that what was my roth k so i rolled that into my roth ira into my roth ira into my roth ira so now i have a traditional ira and a so now i have a traditional ira and a so now i have a traditional ira and a roth ira at vanguard roth ira at vanguard roth ira at vanguard one of the reasons i chose to roll over one of the reasons i chose to roll over one of the reasons i chose to roll over that roth k that roth k that roth k is because they didn't have the best is because they didn't have the best is because they didn't have the best funds or the best expense ratios funds or the best expense ratios funds or the best expense ratios associated with those funds that i could associated with those funds that i could associated with those funds that i could invest in vanguard has a lot better invest in vanguard has a lot better invest in vanguard has a lot better funds and a lot lower expense ratios funds and a lot lower expense ratios funds and a lot lower expense ratios so i wanted more of my money working for so i wanted more of my money working for so i wanted more of my money working for me me me at the end of my net worth was at the end of my net worth was at the end of my net worth was in at ages in at ages in at ages and i set up a health savings and i set up a health savings and i set up a health savings account account account in hsa because i had to get my own in hsa because i had to get my own in hsa because i had to get my own health insurance now health insurance now health insurance now and if you're interested in doing that i and if you're interested in doing that i and if you're interested in doing that i will leave a link to a video that i will leave a link to a video that i will leave a link to a video that i created about how to do that created about how to do that created about how to do that above and below in the description also above and below in the description also above and below in the description also my car was completely totaled that year my car was completely totaled that year my car was completely totaled that year and i ended up purchasing a new car i and i ended up purchasing a new car i and i ended up purchasing a new car i have a video about that have a video about that have a video about that it was actually my worst financial it was actually my worst financial it was actually my worst financial mistake so i'll leave a link above mistake so i'll leave a link above mistake so i'll leave a link above and below in the description but a and below in the description but a and below in the description but a positive note from positive note from positive note from having my car totaled and receiving a having my car totaled and receiving a having my car totaled and receiving a check for that car check for that car check for that car i was able to finish my basement which i was able to finish my basement which i was able to finish my basement which means i could get means i could get means i could get another roommate and pretty much have another roommate and pretty much have another roommate and pretty much have the basement pay for itself the basement pay for itself the basement pay for itself i also bought my fourth property for i also bought my fourth property for i also bought my fourth property for this is when i became lean financially this is when i became lean financially this is when i became lean financially free free free which means my basic expenses are which means my basic expenses are which means my basic expenses are covered with the covered with the covered with the passive income that i am receiving and passive income that i am receiving and passive income that i am receiving and as a side note yes i do manage my own as a side note yes i do manage my own as a side note yes i do manage my own property so it's not completely passive property so it's not completely passive property so it's not completely passive but if i wanted to i could get a but if i wanted to i could get a but if i wanted to i could get a property manager and be just fine property manager and be just fine property manager and be just fine my net worth was seven hundred and my net worth was seven hundred and my net worth was seven hundred and seventy seven thousand seventy seven thousand seventy seven thousand and seven hundred and ten dollars and seven hundred and ten dollars and seven hundred and ten dollars there's lots of sevens in there there's lots of sevens in there there's lots of sevens in there in at age i paid off one of my in at age i paid off one of my in at age i paid off one of my properties properties properties which put me at financial freedom if you which put me at financial freedom if you which put me at financial freedom if you want the details on how i was able to want the details on how i was able to want the details on how i was able to pay off that property early pay off that property early pay off that property early and half the time i'll leave a link and half the time i'll leave a link and half the time i'll leave a link above and below in the description above and below in the description above and below in the description and still in now at age i and still in now at age i and still in now at age i became a millionaire my net worth being became a millionaire my net worth being became a millionaire my net worth being one million one million one million eleven thousand and three hundred and eleven thousand and three hundred and eleven thousand and three hundred and twenty five dollars when i took that twenty five dollars when i took that twenty five dollars when i took that screenshot screenshot screenshot i just wanna share a few key takeaways i just wanna share a few key takeaways i just wanna share a few key takeaways with you with you with you i stuck with my investing strategies i stuck with my investing strategies i stuck with my investing strategies over time i didn't over time i didn't over time i didn't change my tactics or change my processes change my tactics or change my processes change my tactics or change my processes i i i stuck with buy and hold properties and i stuck with buy and hold properties and i stuck with buy and hold properties and i stuck with buying stuck with buying stuck with buying good stocks and holding them for the good stocks and holding them for the good stocks and holding them for the long term i don't know how to do fix and long term i don't know how to do fix and long term i don't know how to do fix and flips i don't have connections for that flips i don't have connections for that flips i don't have connections for that and i didn't want to and i didn't want to and i didn't want to switch my strategy over and learn all of switch my strategy over and learn all of switch my strategy over and learn all of that information that information that information because what i was doing was working for because what i was doing was working for because what i was doing was working for me and i like doing it me and i like doing it me and i like doing it so i kept with it that's not to say you so i kept with it that's not to say you so i kept with it that's not to say you can't change your strategies over time can't change your strategies over time can't change your strategies over time but if you know something works for you but if you know something works for you but if you know something works for you then continue to do it then continue to do it then continue to do it and if you feel like you should change and if you feel like you should change and if you feel like you should change make sure you know why you're changing make sure you know why you're changing make sure you know why you're changing and be comfortable with that change also and be comfortable with that change also and be comfortable with that change also i always knew how much money was coming i always knew how much money was coming i always knew how much money was coming in in in and how much money was going out and i and how much money was going out and i and how much money was going out and i made adjustments along the way made adjustments along the way made adjustments along the way this made it really easy to spend less this made it really easy to spend less this made it really easy to spend less than i was making than i was making than i was making which made it a lot easier to handle which made it a lot easier to handle which made it a lot easier to handle things when i had to take that huge pay things when i had to take that huge pay things when i had to take that huge pay cut cut cut my expenses were already really low so i my expenses were already really low so i my expenses were already really low so i ended up making that work just fine and ended up making that work just fine and ended up making that work just fine and i did get a really good i did get a really good i did get a really good pay increase later i ended that job pay increase later i ended that job pay increase later i ended that job making about per year making about per year making about per year also investing early and as often as also investing early and as often as also investing early and as often as possible is going to give you such high possible is going to give you such high possible is going to give you such high returns over time because of that returns over time because of that returns over time because of that compound compound compound interest i wish i would have invested interest i wish i would have invested interest i wish i would have invested more more more earlier and more often but you can learn earlier and more often but you can learn earlier and more often but you can learn from my mistakes from my mistakes from my mistakes i was really particular about creating i was really particular about creating i was really particular about creating financial goals and staying focused on financial goals and staying focused on financial goals and staying focused on them them them it helped to decrease spending in other it helped to decrease spending in other it helped to decrease spending in other areas that were not important to me areas that were not important to me areas that were not important to me and increase in areas that were and increase in areas that were and increase in areas that were important to me important to me important to me like buying another property and another like buying another property and another like buying another property and another property property property as you can see from december of as you can see from december of as you can see from december of to about the middle of twenty twenty i to about the middle of twenty twenty i to about the middle of twenty twenty i was able to create over was able to create over was able to create over five hundred thousand dollars that's five hundred thousand dollars that's five hundred thousand dollars that's just over three just over three just over three short years so really focus in on your short years so really focus in on your short years so really focus in on your goals goals goals and investments i also realized that i and investments i also realized that i and investments i also realized that i am lucky to have the stock market am lucky to have the stock market am lucky to have the stock market increase so much and the real estate increase so much and the real estate increase so much and the real estate market increase so much market increase so much market increase so much but i also saw the crash and how but i also saw the crash and how but i also saw the crash and how that affected me that affected me that affected me but i keep that long-term perspective but i keep that long-term perspective but i keep that long-term perspective and if you can do that and if you can do that and if you can do that then you can invest when things aren't then you can invest when things aren't then you can invest when things aren't so good and when things are so good and when things are so good and when things are really good and just continue to know really good and just continue to know really good and just continue to know that that that the stock market and the real estate the stock market and the real estate the stock market and the real estate market will continue to rise over time market will continue to rise over time market will continue to rise over time even when it does take a really big dip even when it does take a really big dip even when it does take a really big dip or a really big crash or a really big crash or a really big crash so be patient and stay the course so be patient and stay the course so be patient and stay the course another thing i did was another thing i did was another thing i did was keep my expenses really low especially keep my expenses really low especially keep my expenses really low especially those expenses that are usually the those expenses that are usually the those expenses that are usually the largest for people the largest for people the largest for people the housing cost the transportation cost and housing cost the transportation cost and housing cost the transportation cost and food cost i kept those big expenses food cost i kept those big expenses food cost i kept those big expenses as low as possible which really helped as low as possible which really helped as low as possible which really helped me to grow my savings and have me to grow my savings and have me to grow my savings and have more money to invest which turned into more money to invest which turned into more money to invest which turned into more money more money more money and more money over time one thing i and more money over time one thing i and more money over time one thing i didn't really touch on didn't really touch on didn't really touch on is that i found mentors along the way so is that i found mentors along the way so is that i found mentors along the way so i had a friend that was investing in i had a friend that was investing in i had a friend that was investing in real estate and i asked for his advice i real estate and i asked for his advice i real estate and i asked for his advice i had a had a had a boss who was also successful in real boss who was also successful in real boss who was also successful in real estate so i asked for his advice estate so i asked for his advice estate so i asked for his advice and i had online mentors as well so you and i had online mentors as well so you and i had online mentors as well so you don't have to don't have to don't have to go about this journey alone you can get go about this journey alone you can get go about this journey alone you can get information from others information from others information from others that have created the things that you that have created the things that you that have created the things that you want to create want to create want to create and just one final note i realized that and just one final note i realized that and just one final note i realized that the stock market could crash at any time the stock market could crash at any time the stock market could crash at any time the real estate market could crash at the real estate market could crash at the real estate market could crash at any time and i would lose my net worth any time and i would lose my net worth any time and i would lose my net worth that i have right now that i have right now that i have right now but like i mentioned before i keep that but like i mentioned before i keep that but like i mentioned before i keep that long-term mindset so long-term mindset so long-term mindset so i'm not worried about that and i know it i'm not worried about that and i know it i'm not worried about that and i know it will go up over time will go up over time will go up over time so you guys if you are going to become a so you guys if you are going to become a so you guys if you are going to become a millionaire i want to know in the millionaire i want to know in the millionaire i want to know in the comments comments comments if you are and at what age you want to if you are and at what age you want to if you are and at what age you want to become a millionaire or maybe you become a millionaire or maybe you become a millionaire or maybe you already have so already have so already have so share that in the comments as well share that in the comments as well share that in the comments as well hopefully you found this information hopefully you found this information hopefully you found this information helpful and if you did please hit that helpful and if you did please hit that helpful and if you did please hit that like button and share it with someone like button and share it with someone like button and share it with someone else who would like to hear this else who would like to hear this else who would like to hear this information and don't forget to hit the information and don't forget to hit the information and don't forget to hit the subscribe button to subscribe to my subscribe button to subscribe to my subscribe button to subscribe to my youtube channel and don't forget to hit youtube channel and don't forget to hit youtube channel and don't forget to hit the little bell to get notified on when the little bell to get notified on when the little bell to get notified on when i post i post i post new videos thanks so much for watching new videos thanks so much for watching new videos thanks so much for watching i'll see you in the next video WEBVTT Kind: captions Language: en how to retire early like really really how to retire early like really really how to retire early like really really early now I was able to retire when I early now I was able to retire when I early now I was able to retire when I was now before you roll your eyes and was now before you roll your eyes and was now before you roll your eyes and stop this video and switch over to your stop this video and switch over to your stop this video and switch over to your favorite ukulele version of holler back favorite ukulele version of holler back favorite ukulele version of holler back girl girl girl listen up I'm gonna show you exactly how listen up I'm gonna show you exactly how listen up I'm gonna show you exactly how I did it through the power of real I did it through the power of real I did it through the power of real estate and how you could do the same estate and how you could do the same estate and how you could do the same stick with me okay let's define early stick with me okay let's define early stick with me okay let's define early retirement but before I do can you do me retirement but before I do can you do me retirement but before I do can you do me a favor and if this video provides any a favor and if this video provides any a favor and if this video provides any value to you today can you click that value to you today can you click that value to you today can you click that little thumbs up button it really helps little thumbs up button it really helps little thumbs up button it really helps us reach more people with videos like us reach more people with videos like us reach more people with videos like this all right so let's get clear on this all right so let's get clear on this all right so let's get clear on what I mean by early retirement so it's what I mean by early retirement so it's what I mean by early retirement so it's also known as financial freedom or also known as financial freedom or also known as financial freedom or financial independence early retirement financial independence early retirement financial independence early retirement means you no longer have to work a day means you no longer have to work a day means you no longer have to work a day job anymore in order to pay your bills job anymore in order to pay your bills job anymore in order to pay your bills but I want to get a little deeper you but I want to get a little deeper you but I want to get a little deeper you see there are really like two types of see there are really like two types of see there are really like two types of financial independence level one means financial independence level one means financial independence level one means you can pay all of your bills with you can pay all of your bills with you can pay all of your bills with passive or mostly passive income like passive or mostly passive income like passive or mostly passive income like dividends from stocks or cash flow from dividends from stocks or cash flow from dividends from stocks or cash flow from rental properties or regular profit from rental properties or regular profit from rental properties or regular profit from a business that you don't need to work a business that you don't need to work a business that you don't need to work at full-time so for me I achieve that at full-time so for me I achieve that at full-time so for me I achieve that level one financial freedom at years level one financial freedom at years level one financial freedom at years old but it wasn't level to level to old but it wasn't level to level to old but it wasn't level to level to means you can pay all your bills but you means you can pay all your bills but you means you can pay all your bills but you can also do super extravagant things can also do super extravagant things can also do super extravagant things that anything your heart desires you can that anything your heart desires you can that anything your heart desires you can buy Tesla you can sail the coast of buy Tesla you can sail the coast of buy Tesla you can sail the coast of Africa you can you know buy a polar bear Africa you can you know buy a polar bear Africa you can you know buy a polar bear but for the purpose of this video I'm but for the purpose of this video I'm but for the purpose of this video I'm gonna focus on level one but I'll leave gonna focus on level one but I'll leave gonna focus on level one but I'll leave you with the secret to achieving level you with the secret to achieving level you with the secret to achieving level two at the end of the video alright so two at the end of the video alright so two at the end of the video alright so how did I achieve that goal of financial how did I achieve that goal of financial how did I achieve that goal of financial independence at the age of for me it independence at the age of for me it independence at the age of for me it was simple at I started buying cheap was simple at I started buying cheap was simple at I started buying cheap rental properties not hundreds of rental properties not hundreds of rental properties not hundreds of properties but a duplex here a properties but a duplex here a properties but a duplex here a single-family house there and usually single-family house there and usually single-family house there and usually I'd fix it up a little bit and rent it I'd fix it up a little bit and rent it I'd fix it up a little bit and rent it out I'd make a few hundred bucks in out I'd make a few hundred bucks in out I'd make a few hundred bucks in profit after all the bills have been profit after all the bills have been profit after all the bills have been paid and it wasn't a ton of money at paid and it wasn't a ton of money at paid and it wasn't a ton of money at first but the cool thing about rentals first but the cool thing about rentals first but the cool thing about rentals is that they grow over time every rental is that they grow over time every rental is that they grow over time every rental unit I bought was like a little tiny oil unit I bought was like a little tiny oil unit I bought was like a little tiny oil well pumping out oil from the ground well pumping out oil from the ground well pumping out oil from the ground hundred bucks from this one three hundred bucks from this one three hundred bucks from this one three hundred ollars from this one two hundred hundred ollars from this one two hundred hundred ollars from this one two hundred dollars from this one you see every dollars from this one you see every dollars from this one you see every rental property I owned rented for a rental property I owned rented for a rental property I owned rented for a certain amount each month and then there certain amount each month and then there certain amount each month and then there are also expenses but when the income is are also expenses but when the income is are also expenses but when the income is greater than the expenses that's called greater than the expenses that's called greater than the expenses that's called cash flow for example this property cash flow for example this property cash flow for example this property currently it is four units and each unit currently it is four units and each unit currently it is four units and each unit rents for around seven hundred bucks rents for around seven hundred bucks rents for around seven hundred bucks that's $, total now I got to pay the that's $, total now I got to pay the that's $, total now I got to pay the mortgage payment the taxes the insurance mortgage payment the taxes the insurance mortgage payment the taxes the insurance the lawn care we got to fix stuff when the lawn care we got to fix stuff when the lawn care we got to fix stuff when it breaks and I don't want to deal with it breaks and I don't want to deal with it breaks and I don't want to deal with tenant phone calls so I hired a property tenant phone calls so I hired a property tenant phone calls so I hired a property manager to deal with all that now all in manager to deal with all that now all in manager to deal with all that now all in all these expenses are like eighteen all these expenses are like eighteen all these expenses are like eighteen hundred bucks a month on average that hundred bucks a month on average that hundred bucks a month on average that means I'm keeping about $, extra means I'm keeping about $, extra means I'm keeping about $, extra every month in my pocket I can spend on every month in my pocket I can spend on every month in my pocket I can spend on whatever I want so when you buy awesome whatever I want so when you buy awesome whatever I want so when you buy awesome homerun deals like this it doesn't take homerun deals like this it doesn't take homerun deals like this it doesn't take long to make more from rentals than from long to make more from rentals than from long to make more from rentals than from your job now back to my story before I your job now back to my story before I your job now back to my story before I knew it I was making about $, per knew it I was making about $, per knew it I was making about $, per month from cash flow and that was level month from cash flow and that was level month from cash flow and that was level one financial freedom for me and this one financial freedom for me and this one financial freedom for me and this leads me to point number two if you want leads me to point number two if you want leads me to point number two if you want to retire early you got to keep your to retire early you got to keep your to retire early you got to keep your expenses low look if you need $, to expenses low look if you need $, to expenses low look if you need $, to pay all your bills or you need $, pay all your bills or you need $, pay all your bills or you need $, to pay your bills which is easier right to pay your bills which is easier right to pay your bills which is easier right thirty thousand bucks but here's what thirty thousand bucks but here's what thirty thousand bucks but here's what most people do they get a job they get a most people do they get a job they get a most people do they get a job they get a paycheck they spend their entire paycheck they spend their entire paycheck they spend their entire paycheck every time they get it then paycheck every time they get it then paycheck every time they get it then eventually they get raises at that job eventually they get raises at that job eventually they get raises at that job or a new job that pays more and guess or a new job that pays more and guess or a new job that pays more and guess what they spend that too so in college what they spend that too so in college what they spend that too so in college they could live on bucks a month and they could live on bucks a month and they could live on bucks a month and favors from friends but as a year old favors from friends but as a year old favors from friends but as a year old some people can't live on or grand some people can't live on or grand some people can't live on or grand a month now am I saying you need to live a month now am I saying you need to live a month now am I saying you need to live like a college kid to retire early like a college kid to retire early like a college kid to retire early no but honestly it wouldn't hurt it's no but honestly it wouldn't hurt it's no but honestly it wouldn't hurt it's the principle I'm trying to make clear the principle I'm trying to make clear the principle I'm trying to make clear to you if you want to retire early you to you if you want to retire early you to you if you want to retire early you got to find ways to keep your expenses got to find ways to keep your expenses got to find ways to keep your expenses low don't fall victim to what we call low don't fall victim to what we call low don't fall victim to what we call the income creep now that's where you the income creep now that's where you the income creep now that's where you keep spending more and more money the keep spending more and more money the keep spending more and more money the more and more money you make more and more money you make more and more money you make that's a game that's impossible to win that's a game that's impossible to win that's a game that's impossible to win so when I was all of my bills came to so when I was all of my bills came to so when I was all of my bills came to out three thousand a month and I had out three thousand a month and I had out three thousand a month and I had bought enough cash flowing rental bought enough cash flowing rental bought enough cash flowing rental properties to pay me about $, a properties to pay me about $, a properties to pay me about $, a month now if grand isn't gonna cut it month now if grand isn't gonna cut it month now if grand isn't gonna cut it for you then shot this video and go back for you then shot this video and go back for you then shot this video and go back to watching the same TV show you've been to watching the same TV show you've been to watching the same TV show you've been watching forever and the same crap job watching forever and the same crap job watching forever and the same crap job because it's impossible I'm just kidding because it's impossible I'm just kidding because it's impossible I'm just kidding of course you can still cut out all the of course you can still cut out all the of course you can still cut out all the unnecessary stuff from your life do what unnecessary stuff from your life do what unnecessary stuff from your life do what needs to be done if early retirement is needs to be done if early retirement is needs to be done if early retirement is really that important to you sell the really that important to you sell the really that important to you sell the expensive car and get rid of the car expensive car and get rid of the car expensive car and get rid of the car payment stop eating out entirely and use payment stop eating out entirely and use payment stop eating out entirely and use the extra income to pay off credit card the extra income to pay off credit card the extra income to pay off credit card debt or consider how is hacking where debt or consider how is hacking where debt or consider how is hacking where you buy like a duplex or a triplex live you buy like a duplex or a triplex live you buy like a duplex or a triplex live in one of the unit's use your rent from in one of the unit's use your rent from in one of the unit's use your rent from the other units to pay your bills the other units to pay your bills the other units to pay your bills now maybe isn't the exact number now maybe isn't the exact number now maybe isn't the exact number for you but it shouldn't be , or for you but it shouldn't be , or for you but it shouldn't be , or , for level one financial freedom , for level one financial freedom , for level one financial freedom either if so you are a victim of the either if so you are a victim of the either if so you are a victim of the creep now creep now creep now I retired at quit the job I hated sat I retired at quit the job I hated sat I retired at quit the job I hated sat on the couch for a few months bored out on the couch for a few months bored out on the couch for a few months bored out of my mind and realized that retirement of my mind and realized that retirement of my mind and realized that retirement wasn't about playing shuffleboard with wasn't about playing shuffleboard with wasn't about playing shuffleboard with Grandma it was about freeing up your Grandma it was about freeing up your Grandma it was about freeing up your to hours to spend working on stuff to hours to spend working on stuff to hours to spend working on stuff that matters to you look no one achieved that matters to you look no one achieved that matters to you look no one achieved early retirement and then stayed doing early retirement and then stayed doing early retirement and then stayed doing nothing and I wasn't satisfied with nothing and I wasn't satisfied with nothing and I wasn't satisfied with , a month either that was just a , a month either that was just a , a month either that was just a start that was the foundation that was start that was the foundation that was start that was the foundation that was level one and you can do that early I level one and you can do that early I level one and you can do that early I recommend looking into real estate recommend looking into real estate recommend looking into real estate because I mean I believe it's the single because I mean I believe it's the single because I mean I believe it's the single greatest wealth building tool on the greatest wealth building tool on the greatest wealth building tool on the planet but only if you do it right now planet but only if you do it right now planet but only if you do it right now there are a lot of ways to invest in there are a lot of ways to invest in there are a lot of ways to invest in real estate that'll actually just make real estate that'll actually just make real estate that'll actually just make you more broker more broke less rich you more broker more broke less rich you more broker more broke less rich than when you started just like any hard than when you started just like any hard than when you started just like any hard thing you got to learn so get some books thing you got to learn so get some books thing you got to learn so get some books listen to some podcasts attend some listen to some podcasts attend some listen to some podcasts attend some webinars I mean I host a webinar every webinars I mean I host a webinar every webinars I mean I host a webinar every week over on bigger pockets but your week over on bigger pockets but your week over on bigger pockets but your pockets that complex webinar but listen pockets that complex webinar but listen pockets that complex webinar but listen you can do it through real estate if you you can do it through real estate if you you can do it through real estate if you really want to and I bet you could do it really want to and I bet you could do it really want to and I bet you could do it in less time than you think in fact if in less time than you think in fact if in less time than you think in fact if you want to see a really cool strategy you want to see a really cool strategy you want to see a really cool strategy for achieving level financial freedom for achieving level financial freedom for achieving level financial freedom in just a few short years go search in just a few short years go search in just a few short years go search YouTube for the stack BiggerPockets I'll YouTube for the stack BiggerPockets I'll YouTube for the stack BiggerPockets I'll walk you through a concept that I call walk you through a concept that I call walk you through a concept that I call the stack and it'll show you the power the stack and it'll show you the power the stack and it'll show you the power of exponential growth in real estate now of exponential growth in real estate now of exponential growth in real estate now maybe real estate isn't the right maybe real estate isn't the right maybe real estate isn't the right approach that's fine approach that's fine approach that's fine there's businesses and there's stocks there's businesses and there's stocks there's businesses and there's stocks and there's other investments but they and there's other investments but they and there's other investments but they only work if you work so before we end only work if you work so before we end only work if you work so before we end this video on early retirement let's this video on early retirement let's this video on early retirement let's talk about the secret to financial talk about the secret to financial talk about the secret to financial freedom level and here it is once freedom level and here it is once freedom level and here it is once you've achieved level financial you've achieved level financial you've achieved level financial freedom your days are freed up to reach freedom your days are freed up to reach freedom your days are freed up to reach level here's a tangible example once I level here's a tangible example once I level here's a tangible example once I retired at I didn't stay seated on retired at I didn't stay seated on retired at I didn't stay seated on the couch the couch the couch I didn't play shuffleboard I started I didn't play shuffleboard I started I didn't play shuffleboard I started spending more time doing things I loved spending more time doing things I loved spending more time doing things I loved like real estate and some other projects like real estate and some other projects like real estate and some other projects like writing books and hosting the like writing books and hosting the like writing books and hosting the BiggerPockets podcast which has now BiggerPockets podcast which has now BiggerPockets podcast which has now become like the largest real estate become like the largest real estate become like the largest real estate podcast on the planet so now I get to podcast on the planet so now I get to podcast on the planet so now I get to work on work that is meaningful exciting work on work that is meaningful exciting work on work that is meaningful exciting helpful to others and profitable helpful to others and profitable helpful to others and profitable I mean I'm building a mobile home park I mean I'm building a mobile home park I mean I'm building a mobile home park Empire right now because I love mobile Empire right now because I love mobile Empire right now because I love mobile home parks why do I get to work on that home parks why do I get to work on that home parks why do I get to work on that because I have level financial freedom because I have level financial freedom because I have level financial freedom and that's helping me achieve level and that's helping me achieve level and that's helping me achieve level financial freedom in other words now I financial freedom in other words now I financial freedom in other words now I can kind of do what I want travel around can kind of do what I want travel around can kind of do what I want travel around the world led by my curiosities sleeping the world led by my curiosities sleeping the world led by my curiosities sleeping on a Thursday morning and in the head to on a Thursday morning and in the head to on a Thursday morning and in the head to the gym and sometimes work -hour days the gym and sometimes work -hour days the gym and sometimes work -hour days making videos podcasting buying real making videos podcasting buying real making videos podcasting buying real estate and doing other estate and doing other estate and doing other that I'm passionate about I don't say that I'm passionate about I don't say that I'm passionate about I don't say this to break I say this to show you a this to break I say this to show you a this to break I say this to show you a simple truth that is as true for you as simple truth that is as true for you as simple truth that is as true for you as it was for me and the late great Jim it was for me and the late great Jim it was for me and the late great Jim Rohn said it best if you really want to Rohn said it best if you really want to Rohn said it best if you really want to do something you'll find a way if not do something you'll find a way if not do something you'll find a way if not you'll find an excuse so for more on you'll find an excuse so for more on you'll find an excuse so for more on using real estate investing to achieve using real estate investing to achieve using real estate investing to achieve your early retirement through real your early retirement through real your early retirement through real estate investing don't forget to estate investing don't forget to estate investing don't forget to subscribe to our channel here and hey subscribe to our channel here and hey subscribe to our channel here and hey check out some of the other real estate check out some of the other real estate check out some of the other real estate books that we published over at books that we published over at books that we published over at BiggerPockets Thomas store and hey if BiggerPockets Thomas store and hey if BiggerPockets Thomas store and hey if you're one of those people watching this you're one of those people watching this you're one of those people watching this right now going that sounds great but I right now going that sounds great but I right now going that sounds great but I don't have any money we got a book on don't have any money we got a book on don't have any money we got a book on that as well the book on invest in real that as well the book on invest in real that as well the book on invest in real estate with no and low money down and if estate with no and low money down and if estate with no and low money down and if you don't want to buy the books fine I you don't want to buy the books fine I you don't want to buy the books fine I don't care go to a library and sit there don't care go to a library and sit there don't care go to a library and sit there for six hours or go to Barnes & Noble for six hours or go to Barnes & Noble for six hours or go to Barnes & Noble and read it while you're drinking your and read it while you're drinking your and read it while you're drinking your tea do what you got to do to gain the tea do what you got to do to gain the tea do what you got to do to gain the knowledge needed to make your early knowledge needed to make your early knowledge needed to make your early retirement a reality for BiggerPockets retirement a reality for BiggerPockets retirement a reality for BiggerPockets calm my name is Brandon Turner signing calm my name is Brandon Turner signing calm my name is Brandon Turner signing [Music] WEBVTT Kind: captions Language: en hi I'm Mike Rose heart and I'm Candace hi I'm Mike Rose heart and I'm Candace hi I'm Mike Rose heart and I'm Candace youngest early retiree I'd only twenty youngest early retiree I'd only twenty youngest early retiree I'd only twenty five years old I have an awesome young five years old I have an awesome young five years old I have an awesome young family and I'm obsessed with all things family and I'm obsessed with all things family and I'm obsessed with all things personal finance real estate and personal finance real estate and personal finance real estate and investing I started on this journey to investing I started on this journey to investing I started on this journey to freedom over eight years ago at the age freedom over eight years ago at the age freedom over eight years ago at the age of in my first year of university of in my first year of university of in my first year of university without a penny to my name by the age of without a penny to my name by the age of without a penny to my name by the age of I unlocked financial independence and I unlocked financial independence and I unlocked financial independence and retired early after grinding in the retired early after grinding in the retired early after grinding in the trenches as an analyst in the corporate trenches as an analyst in the corporate trenches as an analyst in the corporate world and this is my story I started world and this is my story I started world and this is my story I started from humble beginnings in fact I was from humble beginnings in fact I was from humble beginnings in fact I was born in London Ontario Canada born in London Ontario Canada born in London Ontario Canada in and my parents they split up in and my parents they split up in and my parents they split up when I was about a year old and my mom when I was about a year old and my mom when I was about a year old and my mom we moved away from London and we moved we moved away from London and we moved we moved away from London and we moved to a town called Sarnia Ontario Canada to a town called Sarnia Ontario Canada to a town called Sarnia Ontario Canada and from there I had a really difficult and from there I had a really difficult and from there I had a really difficult childhood my mom being a single mom had childhood my mom being a single mom had childhood my mom being a single mom had a lot of difficulties in working for a lot of difficulties in working for a lot of difficulties in working for minimum wage and trying to put food on minimum wage and trying to put food on minimum wage and trying to put food on the table I remember us moving a lot as the table I remember us moving a lot as the table I remember us moving a lot as a kid and once my brother was born her a kid and once my brother was born her a kid and once my brother was born her trying to support two children it was trying to support two children it was trying to support two children it was just so difficult as a kid I remember just so difficult as a kid I remember just so difficult as a kid I remember feeling like there was never money there feeling like there was never money there feeling like there was never money there when we needed it and it was always when we needed it and it was always when we needed it and it was always happiness was tied to payday and so happiness was tied to payday and so happiness was tied to payday and so growing up there was a cycle of when we growing up there was a cycle of when we growing up there was a cycle of when we have money things are good we can have have money things are good we can have have money things are good we can have food we can have fun we can go places food we can have fun we can go places food we can have fun we can go places and do things but when there's no money and do things but when there's no money and do things but when there's no money and we can't pay the bills things are and we can't pay the bills things are and we can't pay the bills things are very stressful and so this led to a bit very stressful and so this led to a bit very stressful and so this led to a bit of insecurity combined with the fact of insecurity combined with the fact of insecurity combined with the fact that we moved a lot and so as a kid I that we moved a lot and so as a kid I that we moved a lot and so as a kid I moved you know we've been moving around moved you know we've been moving around moved you know we've been moving around I went to several different schools I I went to several different schools I I went to several different schools I could probably move times in in my could probably move times in in my could probably move times in in my childhood and bouncing around from childhood and bouncing around from childhood and bouncing around from school to school it's difficult to school to school it's difficult to school to school it's difficult to establish good friendships when you establish good friendships when you establish good friendships when you can't bring your friends home with you can't bring your friends home with you can't bring your friends home with you because of the place you live when you because of the place you live when you because of the place you live when you go to school with dirty clothes and go to school with dirty clothes and go to school with dirty clothes and without a great lunch and the teachers without a great lunch and the teachers without a great lunch and the teachers ask questions it's very difficult to fit ask questions it's very difficult to fit ask questions it's very difficult to fit in let's fast forward now as a kid I'm in let's fast forward now as a kid I'm in let's fast forward now as a kid I'm growing up I'm learning about things growing up I'm learning about things growing up I'm learning about things like the importance of money and how not like the importance of money and how not like the importance of money and how not having any sucks but by high school having any sucks but by high school having any sucks but by high school right I'm years old right I'm years old right I'm years old I met some great friends and a lot of I met some great friends and a lot of I met some great friends and a lot of those friends came from you know average those friends came from you know average those friends came from you know average middle-class and well-to-do families and middle-class and well-to-do families and middle-class and well-to-do families and I learned that those people didn't have I learned that those people didn't have I learned that those people didn't have to worry about the same sorts of things to worry about the same sorts of things to worry about the same sorts of things that I had to worry about and that I had to worry about and that I had to worry about and at that time I discovered the secret to at that time I discovered the secret to at that time I discovered the secret to success was financially based and so I success was financially based and so I success was financially based and so I was very much motivated by wanting to was very much motivated by wanting to was very much motivated by wanting to elevate an escape for my situation so at elevate an escape for my situation so at elevate an escape for my situation so at I got really big into gaming got my I got really big into gaming got my I got really big into gaming got my saved up we're cutting lawns for saved up we're cutting lawns for saved up we're cutting lawns for neighbors trying out some neighbors trying out some neighbors trying out some entrepreneurial ventures to make a entrepreneurial ventures to make a entrepreneurial ventures to make a little bit of money and I bought my little bit of money and I bought my little bit of money and I bought my first computer and I got internet for first computer and I got internet for first computer and I got internet for the first time at years of age and I the first time at years of age and I the first time at years of age and I I went on the internet and I discovered I went on the internet and I discovered I went on the internet and I discovered games like World of Warcraft Age of games like World of Warcraft Age of games like World of Warcraft Age of Mythology Age of Empires Diablo Star Mythology Age of Empires Diablo Star Mythology Age of Empires Diablo Star Wars Galaxies online all of these Wars Galaxies online all of these Wars Galaxies online all of these amazing games and I play these games amazing games and I play these games amazing games and I play these games hours a day and I got really good hours a day and I got really good hours a day and I got really good because I spent so much time and because I spent so much time and because I spent so much time and invested so heavily in this escape you invested so heavily in this escape you invested so heavily in this escape you know I'd look around in our houses it know I'd look around in our houses it know I'd look around in our houses it was very poor unmaintained and it was was very poor unmaintained and it was was very poor unmaintained and it was messy and so but when I was in the game messy and so but when I was in the game messy and so but when I was in the game I was in the same level playing field as I was in the same level playing field as I was in the same level playing field as everyone else and so MMORPG is an online everyone else and so MMORPG is an online everyone else and so MMORPG is an online gaming allowed me to escape the reality gaming allowed me to escape the reality gaming allowed me to escape the reality and that was the start I think for me and that was the start I think for me and that was the start I think for me and realizing how the economy of the and realizing how the economy of the and realizing how the economy of the world worked because in those games like world worked because in those games like world worked because in those games like MMORPGs like World of Warcraft there is MMORPGs like World of Warcraft there is MMORPGs like World of Warcraft there is actually an economy that's existing in actually an economy that's existing in actually an economy that's existing in that game I learned to master that that game I learned to master that that game I learned to master that economy and understood basic concepts economy and understood basic concepts economy and understood basic concepts like supply and demand and all of this like supply and demand and all of this like supply and demand and all of this started from from gaming believe or not started from from gaming believe or not started from from gaming believe or not I know a lot of people talk about the I know a lot of people talk about the I know a lot of people talk about the negatives of gaming there ton of negatives of gaming there ton of negatives of gaming there ton of positives associated with gaming and positives associated with gaming and positives associated with gaming and fast-forward maybe now I'm what fast-forward maybe now I'm what fast-forward maybe now I'm what turning I met my girlfriend now wife turning I met my girlfriend now wife turning I met my girlfriend now wife now almost actually years ago in now almost actually years ago in now almost actually years ago in about a month and we started dating and about a month and we started dating and about a month and we started dating and things got very serious very quickly I things got very serious very quickly I things got very serious very quickly I was over at her place a lot of the time was over at her place a lot of the time was over at her place a lot of the time with my first job at Tim Hortons I was with my first job at Tim Hortons I was with my first job at Tim Hortons I was making minimum wage but I worked making minimum wage but I worked making minimum wage but I worked hours a week while in high school hours a week while in high school hours a week while in high school full-time and this cash allowed me to full-time and this cash allowed me to full-time and this cash allowed me to realize that I could save and I could realize that I could save and I could realize that I could save and I could begin investing even in small things begin investing even in small things begin investing even in small things like an RESP in Canada I opened my own like an RESP in Canada I opened my own like an RESP in Canada I opened my own register education savings plan and the register education savings plan and the register education savings plan and the government matched percent of every government matched percent of every government matched percent of every dollar I contributed which was huge a dollar I contributed which was huge a dollar I contributed which was huge a lot of people have their parents open lot of people have their parents open lot of people have their parents open these for them but open my own and these for them but open my own and these for them but open my own and realize I could save and contribute to realize I could save and contribute to realize I could save and contribute to my own RESP and at that time I realized my own RESP and at that time I realized my own RESP and at that time I realized the University and college while I the University and college while I the University and college while I figured University in college would be figured University in college would be figured University in college would be my escape it would allow me to get away my escape it would allow me to get away my escape it would allow me to get away at and elevate and work in the at and elevate and work in the at and elevate and work in the corporate world and grind out to become corporate world and grind out to become corporate world and grind out to become a CEO or some sort of rich executive and a CEO or some sort of rich executive and a CEO or some sort of rich executive and I thought that was the secret a lot of I thought that was the secret a lot of I thought that was the secret a lot of money meant a lot of happiness money meant a lot of happiness money meant a lot of happiness and then I turned it up my grades went and then I turned it up my grades went and then I turned it up my grades went from like in high school to % from like in high school to % from like in high school to % I went from near-perfect on every exam I I went from near-perfect on every exam I I went from near-perfect on every exam I studied very hard I joined a lot of studied very hard I joined a lot of studied very hard I joined a lot of clubs and I made it my sole mission to clubs and I made it my sole mission to clubs and I made it my sole mission to get into the Richard Ivey School of get into the Richard Ivey School of get into the Richard Ivey School of Business and I did that I successfully Business and I did that I successfully Business and I did that I successfully got into Western University and the got into Western University and the got into Western University and the Richard Ivey School of Business with Richard Ivey School of Business with Richard Ivey School of Business with early aeo acceptance and at I moved early aeo acceptance and at I moved early aeo acceptance and at I moved to London Ontario and and it was then in to London Ontario and and it was then in to London Ontario and and it was then in the dorm rooms in my first year that I the dorm rooms in my first year that I the dorm rooms in my first year that I discovered this topic called discovered this topic called discovered this topic called for the retirement and financial for the retirement and financial for the retirement and financial independence and it became my sole independence and it became my sole independence and it became my sole mission that I was gonna become the mission that I was gonna become the mission that I was gonna become the earliest retiree I was gonna fast earliest retiree I was gonna fast earliest retiree I was gonna fast forward work as hard as I had to to forward work as hard as I had to to forward work as hard as I had to to unlock financial independence and retire unlock financial independence and retire unlock financial independence and retire early at a desk similar to this one early at a desk similar to this one early at a desk similar to this one about eight years ago I discovered about eight years ago I discovered about eight years ago I discovered financial independence retiring early it financial independence retiring early it financial independence retiring early it was on the blog early retirement extreme was on the blog early retirement extreme was on the blog early retirement extreme written by Jacob blunt Fisker shortly written by Jacob blunt Fisker shortly written by Jacob blunt Fisker shortly after that I discovered mister money after that I discovered mister money after that I discovered mister money mustache Pete add need has fantastic mustache Pete add need has fantastic mustache Pete add need has fantastic content as well and the two of those content as well and the two of those content as well and the two of those guys became my mentors I absorbed guys became my mentors I absorbed guys became my mentors I absorbed everything I could get my hands on everything I could get my hands on everything I could get my hands on related to financial independence related to financial independence related to financial independence retiring early I found this new movement retiring early I found this new movement retiring early I found this new movement this back then they didn't call it the this back then they didn't call it the this back then they didn't call it the fire movement but basically the fire fire movement but basically the fire fire movement but basically the fire movement and I wanted to be a part of it movement and I wanted to be a part of it movement and I wanted to be a part of it I wanted to be retired I want to travel I wanted to be retired I want to travel I wanted to be retired I want to travel the world and do all the things that I the world and do all the things that I the world and do all the things that I want to do with my life I didn't want to want to do with my life I didn't want to want to do with my life I didn't want to have to work in a job that didn't enjoy have to work in a job that didn't enjoy have to work in a job that didn't enjoy and I hadn't found a job yet that I and I hadn't found a job yet that I and I hadn't found a job yet that I thought would be enjoyable and in fact thought would be enjoyable and in fact thought would be enjoyable and in fact going to work every day from : to going to work every day from : to going to work every day from : to : felt like quite a chore but this : felt like quite a chore but this : felt like quite a chore but this time I'm still focused at years old time I'm still focused at years old time I'm still focused at years old and doing the best I can in school and doing the best I can in school and doing the best I can in school applying for a lot of scholarships and applying for a lot of scholarships and applying for a lot of scholarships and bursaries and I got a lot of great bursaries and I got a lot of great bursaries and I got a lot of great scholarships and bursaries because I scholarships and bursaries because I scholarships and bursaries because I studied and got really good grades and I studied and got really good grades and I studied and got really good grades and I worked really hard on the the essays for worked really hard on the the essays for worked really hard on the the essays for the applications in fact a few people the applications in fact a few people the applications in fact a few people took a chance on supporting me through took a chance on supporting me through took a chance on supporting me through school and so that was one of the big school and so that was one of the big school and so that was one of the big things as well as always having a things as well as always having a things as well as always having a part-time job I worked continuously part-time job I worked continuously part-time job I worked continuously there was never of time where I didn't there was never of time where I didn't there was never of time where I didn't have at least a side hustle and a have at least a side hustle and a have at least a side hustle and a part-time job if I finished a course I part-time job if I finished a course I part-time job if I finished a course I would then go ahead and tutor for that would then go ahead and tutor for that would then go ahead and tutor for that course at course at course at on the side if I figured out how to do on the side if I figured out how to do on the side if I figured out how to do you know how to buy textbooks on Kijiji you know how to buy textbooks on Kijiji you know how to buy textbooks on Kijiji I'd resell them for more money or I pick I'd resell them for more money or I pick I'd resell them for more money or I pick up a side house so like in the summers I up a side house so like in the summers I up a side house so like in the summers I would I would I started a couple of would I would I started a couple of would I would I started a couple of businesses some of them failed some of businesses some of them failed some of businesses some of them failed some of them were successful plus I worked them were successful plus I worked them were successful plus I worked full-time so coming out of my first year full-time so coming out of my first year full-time so coming out of my first year University very very motivated to get University very very motivated to get University very very motivated to get into Ivy in my third and fourth years into Ivy in my third and fourth years into Ivy in my third and fourth years and get a really good job because I and get a really good job because I and get a really good job because I understood that the secret to retiring understood that the secret to retiring understood that the secret to retiring early was really simple all I had to do early was really simple all I had to do early was really simple all I had to do was earn an average salary the higher was earn an average salary the higher was earn an average salary the higher the better obviously but there was the better obviously but there was the better obviously but there was certain the minimum threshold let's call certain the minimum threshold let's call certain the minimum threshold let's call it $, a year in income so if I it $, a year in income so if I it $, a year in income so if I could get above that and ideally as high could get above that and ideally as high could get above that and ideally as high as possible and then live extremely as possible and then live extremely as possible and then live extremely frugal II which by the way I was really frugal II which by the way I was really frugal II which by the way I was really used to so I was just good at finding used to so I was just good at finding used to so I was just good at finding deals and that's been sort of something deals and that's been sort of something deals and that's been sort of something I've honed and got better at as time I've honed and got better at as time I've honed and got better at as time went on especially when I got into real went on especially when I got into real went on especially when I got into real estate but the the key thing was estate but the the key thing was estate but the the key thing was focusing on how do I make this gap as focusing on how do I make this gap as focusing on how do I make this gap as big as I possibly can and taught myself big as I possibly can and taught myself big as I possibly can and taught myself how to trade when I turned and I was how to trade when I turned and I was how to trade when I turned and I was trading but honestly the returns I was trading but honestly the returns I was trading but honestly the returns I was getting you know if you have a couple getting you know if you have a couple getting you know if you have a couple thousand dollars invested and you're thousand dollars invested and you're thousand dollars invested and you're getting ten or twenty or thirty percent getting ten or twenty or thirty percent getting ten or twenty or thirty percent growth there isn't much impact to your growth there isn't much impact to your growth there isn't much impact to your overall net worth and so I figured out overall net worth and so I figured out overall net worth and so I figured out that you know if I could work for summer that you know if I could work for summer that you know if I could work for summer and save ten thousand dollars that was and save ten thousand dollars that was and save ten thousand dollars that was way more impactful than trying to take a way more impactful than trying to take a way more impactful than trying to take a thousand dollars and double it you know thousand dollars and double it you know thousand dollars and double it you know all I would make was a thousand dollars all I would make was a thousand dollars all I would make was a thousand dollars and it'd be the same amount of energy and it'd be the same amount of energy and it'd be the same amount of energy and effort so the key piece was earning and effort so the key piece was earning and effort so the key piece was earning as much as I possibly could I was as much as I possibly could I was as much as I possibly could I was focused on joining clubs that I could focused on joining clubs that I could focused on joining clubs that I could have an impact on and build the resume have an impact on and build the resume have an impact on and build the resume so I that was my sole focus as well as so I that was my sole focus as well as so I that was my sole focus as well as working part-time and then full-time in working part-time and then full-time in working part-time and then full-time in the summers so I built that resume so I the summers so I built that resume so I the summers so I built that resume so I could get the good full-time jobs I could get the good full-time jobs I could get the good full-time jobs I worked over from Tim Hortons I worked worked over from Tim Hortons I worked worked over from Tim Hortons I worked for the Western University work-study for the Western University work-study for the Western University work-study program I did some tutoring on the side program I did some tutoring on the side program I did some tutoring on the side my first summer I worked for Canada my first summer I worked for Canada my first summer I worked for Canada Border Services Agency as a commercial Border Services Agency as a commercial Border Services Agency as a commercial analyst and that was that was key analyst and that was that was key analyst and that was that was key because it paid fairly well it paid you because it paid fairly well it paid you because it paid fairly well it paid you know fifteen sixteen dollars an hour know fifteen sixteen dollars an hour know fifteen sixteen dollars an hour which was fantastic compared to what which was fantastic compared to what which was fantastic compared to what minimum wage was at the time around nine minimum wage was at the time around nine minimum wage was at the time around nine or ten dollars so that was a great job or ten dollars so that was a great job or ten dollars so that was a great job got hours a week worked in the got hours a week worked in the got hours a week worked in the corporate environment and got a feel for corporate environment and got a feel for corporate environment and got a feel for what it felt like to work for government what it felt like to work for government what it felt like to work for government and I realized that working in and I realized that working in and I realized that working in government wasn't for me but comes government wasn't for me but comes government wasn't for me but comes second year start my own hood event second year start my own hood event second year start my own hood event cleaning business which was somewhat cleaning business which was somewhat cleaning business which was somewhat successful and ended up being sold for successful and ended up being sold for successful and ended up being sold for four four four break even but I also worked as a teller break even but I also worked as a teller break even but I also worked as a teller at a member services credit union and so at a member services credit union and so at a member services credit union and so we're getting the credit union taught me we're getting the credit union taught me we're getting the credit union taught me how to you know interact with with how to you know interact with with how to you know interact with with different people and talk about personal different people and talk about personal different people and talk about personal finance and I already had a huge passion finance and I already had a huge passion finance and I already had a huge passion and interest for this so great summer and interest for this so great summer and interest for this so great summer jobs throat throat school just coming jobs throat throat school just coming jobs throat throat school just coming out of I would have been second year so out of I would have been second year so out of I would have been second year so I'm now I bought my first rental I'm now I bought my first rental I'm now I bought my first rental property and we had saved aggressively property and we had saved aggressively property and we had saved aggressively for this scholarships working income my for this scholarships working income my for this scholarships working income my girlfriend at the time now wife she had girlfriend at the time now wife she had girlfriend at the time now wife she had also saved some money up she's working also saved some money up she's working also saved some money up she's working as a residence adviser and saving that as a residence adviser and saving that as a residence adviser and saving that money out and we had kind of between the money out and we had kind of between the money out and we had kind of between the two of us each day to about $, and two of us each day to about $, and two of us each day to about $, and it was between the next school year so I it was between the next school year so I it was between the next school year so I had that tuition saved up I was going to had that tuition saved up I was going to had that tuition saved up I was going to be using for that that year and I got a be using for that that year and I got a be using for that that year and I got a line of credit student line of credit so line of credit student line of credit so line of credit student line of credit so I could use the the money I had for the I could use the the money I had for the I could use the the money I had for the down payment on the property the % down payment on the property the % down payment on the property the % down payment and then I could float the down payment and then I could float the down payment and then I could float the the year's tuition on credit and pay it the year's tuition on credit and pay it the year's tuition on credit and pay it off throughout the throughout the year off throughout the throughout the year off throughout the throughout the year in the following summer I've lived in in the following summer I've lived in in the following summer I've lived in the an apartment for dollars a month the an apartment for dollars a month the an apartment for dollars a month all including internet utilities all including internet utilities all including internet utilities everything and so that was one of the everything and so that was one of the everything and so that was one of the key success factors that I was always so key success factors that I was always so key success factors that I was always so frugal and focused on keeping my living frugal and focused on keeping my living frugal and focused on keeping my living expenses very low most kids were expenses very low most kids were expenses very low most kids were spending you know twelve to fifteen spending you know twelve to fifteen spending you know twelve to fifteen thousand dollars a year on living thousand dollars a year on living thousand dollars a year on living expenses and I was spending four expenses and I was spending four expenses and I was spending four thousand dollars a year on living thousand dollars a year on living thousand dollars a year on living expenses just being very frugal and expenses just being very frugal and expenses just being very frugal and optimizing to save everything and invest optimizing to save everything and invest optimizing to save everything and invest as much as I possibly could and that as much as I possibly could and that as much as I possibly could and that gave me a huge edge coming in to gain my gave me a huge edge coming in to gain my gave me a huge edge coming in to gain my first property I learned how to house first property I learned how to house first property I learned how to house act so I renovated the house and rent it act so I renovated the house and rent it act so I renovated the house and rent it out unused portions of the house I put a out unused portions of the house I put a out unused portions of the house I put a basement apartment in the lower basement apartment in the lower basement apartment in the lower converted from a two-bed one-bath house converted from a two-bed one-bath house converted from a two-bed one-bath house to a four-bed three-bath with a nanny to a four-bed three-bath with a nanny to a four-bed three-bath with a nanny suite apartment so that allowed me to suite apartment so that allowed me to suite apartment so that allowed me to pay the whole mortgage property taxes pay the whole mortgage property taxes pay the whole mortgage property taxes and utilities and I lived for free so my and utilities and I lived for free so my and utilities and I lived for free so my third and fourth year I had no living third and fourth year I had no living third and fourth year I had no living costs at all and that was that was very costs at all and that was that was very costs at all and that was that was very key in order to graduating school key in order to graduating school key in order to graduating school debt-free we did actually get married at debt-free we did actually get married at debt-free we did actually get married at so that was sort of an exciting so that was sort of an exciting so that was sort of an exciting thing graduated school and we got thing graduated school and we got thing graduated school and we got married and so I graduated at years married and so I graduated at years married and so I graduated at years of age and I already had a positive net of age and I already had a positive net of age and I already had a positive net worths inside renovated the first worths inside renovated the first worths inside renovated the first property that I bought at I had property that I bought at I had property that I bought at I had created a ton of equity in the property created a ton of equity in the property created a ton of equity in the property so I've made thirty thousand dollars in so I've made thirty thousand dollars in so I've made thirty thousand dollars in equity plus over my entire four years in equity plus over my entire four years in equity plus over my entire four years in school and your two years before that school and your two years before that school and your two years before that working I probably earned into the six working I probably earned into the six working I probably earned into the six figures in part-time minimum-wage jobs figures in part-time minimum-wage jobs figures in part-time minimum-wage jobs as well as good as well as good as well as good summer jobs I was very much determined summer jobs I was very much determined summer jobs I was very much determined and focused on my goal of you know and focused on my goal of you know and focused on my goal of you know reaching freedom I wanted financial reaching freedom I wanted financial reaching freedom I wanted financial independence more than I wanted water independence more than I wanted water independence more than I wanted water more they wanted beer more than I wanted more they wanted beer more than I wanted more they wanted beer more than I wanted anything more they wanted sleep and anything more they wanted sleep and anything more they wanted sleep and that's why I was able to do it because I that's why I was able to do it because I that's why I was able to do it because I was so determined that's the key success was so determined that's the key success was so determined that's the key success factor is hard work when most people are factor is hard work when most people are factor is hard work when most people are sleeping and relaxing you have to work sleeping and relaxing you have to work sleeping and relaxing you have to work in that % harder that % harder and in that % harder that % harder and in that % harder that % harder and whatever you do in your life that is the whatever you do in your life that is the whatever you do in your life that is the key determinant for probability of key determinant for probability of key determinant for probability of success that's how you mitigate risk in success that's how you mitigate risk in success that's how you mitigate risk in investing in real estate and investing investing in real estate and investing investing in real estate and investing in general is putting in the hard work in general is putting in the hard work in general is putting in the hard work and the time and that isn't the most and the time and that isn't the most and the time and that isn't the most sexy thing this to sell you but it's sexy thing this to sell you but it's sexy thing this to sell you but it's replicatable brought years of age replicatable brought years of age replicatable brought years of age I've graduated school I took a job as an I've graduated school I took a job as an I've graduated school I took a job as an analyst I was making $, a year in analyst I was making $, a year in analyst I was making $, a year in salary now my girlfriend at the time she salary now my girlfriend at the time she salary now my girlfriend at the time she graduated year early she went to college graduated year early she went to college graduated year early she went to college which in Canada is only a three-year which in Canada is only a three-year which in Canada is only a three-year program and so she graduated a year program and so she graduated a year program and so she graduated a year earlier she'd been working and saving earlier she'd been working and saving earlier she'd been working and saving aggressively we were living on almost aggressively we were living on almost aggressively we were living on almost nothing since our house hack scenario nothing since our house hack scenario nothing since our house hack scenario our or thousand dollars that we our or thousand dollars that we our or thousand dollars that we put into the downpayment of this house put into the downpayment of this house put into the downpayment of this house to buy it this $, property allowed to buy it this $, property allowed to buy it this $, property allowed us to basically live for almost nothing us to basically live for almost nothing us to basically live for almost nothing so we were saving around I think at that so we were saving around I think at that so we were saving around I think at that time maybe about to % of her salary time maybe about to % of her salary time maybe about to % of her salary and out of taxes and a hundred percent and out of taxes and a hundred percent and out of taxes and a hundred percent of every single paycheck I got went of every single paycheck I got went of every single paycheck I got went right into savings and so we're building right into savings and so we're building right into savings and so we're building up this massive savings within a year we up this massive savings within a year we up this massive savings within a year we had saved you know with her salary of had saved you know with her salary of had saved you know with her salary of , and mine at we had saved you , and mine at we had saved you , and mine at we had saved you know about $, since we had a bunch know about $, since we had a bunch know about $, since we had a bunch of tax education credits when you take of tax education credits when you take of tax education credits when you take university you can write off that university you can write off that university you can write off that education credit against your income tax education credit against your income tax education credit against your income tax you can contribute to your RSP and you can contribute to your RSP and you can contribute to your RSP and reduce your tax burden reduce your tax burden reduce your tax burden there are ways if you in renovating a there are ways if you in renovating a there are ways if you in renovating a property you can use those those losses property you can use those those losses property you can use those those losses on maintenance and repairs to offset on maintenance and repairs to offset on maintenance and repairs to offset your your day job income so I used that your your day job income so I used that your your day job income so I used that to offset tax so I almost had no tax to offset tax so I almost had no tax to offset tax so I almost had no tax burden in the first two years and so we burden in the first two years and so we burden in the first two years and so we saved aggressively and I'm talking saved aggressively and I'm talking saved aggressively and I'm talking percent savings rate and that was the percent savings rate and that was the percent savings rate and that was the key thing and then invested that we key thing and then invested that we key thing and then invested that we bought our next rental property I think bought our next rental property I think bought our next rental property I think maybe a year and a half into working maybe a year and a half into working maybe a year and a half into working full-time I'd save up enough to buy one full-time I'd save up enough to buy one full-time I'd save up enough to buy one or two more rental properties and I or two more rental properties and I or two more rental properties and I bought a second rental property I bought a second rental property I bought a second rental property I learned how you know to fix it up put in learned how you know to fix it up put in learned how you know to fix it up put in a lot of hard work it was sort of real a lot of hard work it was sort of real a lot of hard work it was sort of real estate was like my side hustle so I estate was like my side hustle so I estate was like my side hustle so I could take you know I could work my nine could take you know I could work my nine could take you know I could work my nine to five day job grind in the corporate to five day job grind in the corporate to five day job grind in the corporate world at a job I didn't enjoy and I world at a job I didn't enjoy and I world at a job I didn't enjoy and I realized you know as soon as I started realized you know as soon as I started realized you know as soon as I started that job I think in this that job I think in this that job I think in this second week I came home and said Wow second week I came home and said Wow second week I came home and said Wow there isn't a job out there that I'm there isn't a job out there that I'm there isn't a job out there that I'm going to enjoy working for someone else going to enjoy working for someone else going to enjoy working for someone else I need to be an entrepreneur or I need I need to be an entrepreneur or I need I need to be an entrepreneur or I need to be financially independent we had a to be financially independent we had a to be financially independent we had a good lifestyle in the sense that you good lifestyle in the sense that you good lifestyle in the sense that you know I'm a gamer and so I still did a know I'm a gamer and so I still did a know I'm a gamer and so I still did a bit of gaming on ahead of time but you bit of gaming on ahead of time but you bit of gaming on ahead of time but you know we would like to watch a lot of know we would like to watch a lot of know we would like to watch a lot of movies and there are a lot of things movies and there are a lot of things movies and there are a lot of things that we did that we had frugal hobbits that we did that we had frugal hobbits that we did that we had frugal hobbits man go for walks go for bike rides a lot man go for walks go for bike rides a lot man go for walks go for bike rides a lot of the things that I did hang out with of the things that I did hang out with of the things that I did hang out with friends were all through GLE activities friends were all through GLE activities friends were all through GLE activities and I surrounded myself with the right and I surrounded myself with the right and I surrounded myself with the right people who also enjoyed those types of people who also enjoyed those types of people who also enjoyed those types of behaviors those types of activities and behaviors those types of activities and behaviors those types of activities and so I was able to continue to live very so I was able to continue to live very so I was able to continue to live very frugally while working and by you know frugally while working and by you know frugally while working and by you know the second rental property I think was the second rental property I think was the second rental property I think was in you know maybe I bought my in you know maybe I bought my in you know maybe I bought my second rental property and so that was second rental property and so that was second rental property and so that was you know almost two years after or a you know almost two years after or a you know almost two years after or a year and a half after working and then I year and a half after working and then I year and a half after working and then I realized I could refinance that property realized I could refinance that property realized I could refinance that property and buy another one well all the while and buy another one well all the while and buy another one well all the while while savings still our day job income while savings still our day job income while savings still our day job income which stated were down payment every which stated were down payment every which stated were down payment every about months and then the rental about months and then the rental about months and then the rental income from each property went back into income from each property went back into income from each property went back into savings and so it got to a point where I savings and so it got to a point where I savings and so it got to a point where I was saving more than a hundred percent was saving more than a hundred percent was saving more than a hundred percent of my day job income because we were of my day job income because we were of my day job income because we were living on some of the rental property living on some of the rental property living on some of the rental property income both my wife and my salary % income both my wife and my salary % income both my wife and my salary % saved and we're working and we're saving saved and we're working and we're saving saved and we're working and we're saving or investing I think we got three rental or investing I think we got three rental or investing I think we got three rental properties then we got a fourth one and properties then we got a fourth one and properties then we got a fourth one and at that point the rental income is at that point the rental income is at that point the rental income is covering all of our living expenses covering all of our living expenses covering all of our living expenses because we're very focused on running because we're very focused on running because we're very focused on running things very efficiently and optimally things very efficiently and optimally things very efficiently and optimally and so % of both of our salaries is and so % of both of our salaries is and so % of both of our salaries is being saved and this is Lions to fill up being saved and this is Lions to fill up being saved and this is Lions to fill up this quite large base of this financial this quite large base of this financial this quite large base of this financial independence buffer but another rental independence buffer but another rental independence buffer but another rental property number five Number six number property number five Number six number property number five Number six number seven at number eight the rental income seven at number eight the rental income seven at number eight the rental income portfolio was producing I think way more portfolio was producing I think way more portfolio was producing I think way more than we needed to live like double what than we needed to live like double what than we needed to live like double what we were needing to live and almost was we were needing to live and almost was we were needing to live and almost was replacing the day job income so it got replacing the day job income so it got replacing the day job income so it got to the point where it even if I if if I to the point where it even if I if if I to the point where it even if I if if I wanted to I could just quit the job and wanted to I could just quit the job and wanted to I could just quit the job and just rely on real estate but we wanted just rely on real estate but we wanted just rely on real estate but we wanted to get to that four percent safe to get to that four percent safe to get to that four percent safe withdrawal rate we wanted to actually be withdrawal rate we wanted to actually be withdrawal rate we wanted to actually be by definition not have to work for the by definition not have to work for the by definition not have to work for the rest of our lives well had the passive rest of our lives well had the passive rest of our lives well had the passive income coming in to support us for the income coming in to support us for the income coming in to support us for the rest of our lives and that was the key rest of our lives and that was the key rest of our lives and that was the key thing is that you know we didn't want to thing is that you know we didn't want to thing is that you know we didn't want to half the work we wanted to do things we half the work we wanted to do things we half the work we wanted to do things we enjoyed and if that those things we enjoyed and if that those things we enjoyed and if that those things we enjoyed like I really enjoy sharing on enjoyed like I really enjoy sharing on enjoyed like I really enjoy sharing on YouTube and sharing on my blog and YouTube and sharing on my blog and YouTube and sharing on my blog and creating content and coaching and creating content and coaching and creating content and coaching and mentoring people I do a lot of that mentoring people I do a lot of that mentoring people I do a lot of that today I spend probably hours a week today I spend probably hours a week today I spend probably hours a week doing that some people might call that a doing that some people might call that a doing that some people might call that a job but I don't get paid really to do it job but I don't get paid really to do it job but I don't get paid really to do it and I do it because I enjoy it because I and I do it because I enjoy it because I and I do it because I enjoy it because I love it and there's no reliance or love it and there's no reliance or love it and there's no reliance or dependence dependence dependence and that's the nice thing that's the and that's the nice thing that's the and that's the nice thing that's the beauty of being fires you can do what beauty of being fires you can do what beauty of being fires you can do what you want with your life and and that was you want with your life and and that was you want with your life and and that was that was the appeal and that's a lot of that was the appeal and that's a lot of that was the appeal and that's a lot of you know the reasons why we did what we you know the reasons why we did what we you know the reasons why we did what we did and by age we've had I think did and by age we've had I think did and by age we've had I think somewhere around eight or nine somewhere around eight or nine somewhere around eight or nine properties properties properties this is so in February I quit this is so in February I quit this is so in February I quit the day job and I jumped into financial the day job and I jumped into financial the day job and I jumped into financial independence at years of age and my independence at years of age and my independence at years of age and my net worth was around times my annual net worth was around times my annual net worth was around times my annual living expenses living expenses living expenses now today I'm probably double or triple now today I'm probably double or triple now today I'm probably double or triple that and I'm definitely like two percent that and I'm definitely like two percent that and I'm definitely like two percent safe withdrawal rate at years of age safe withdrawal rate at years of age safe withdrawal rate at years of age today it's fantastic I really do today it's fantastic I really do today it's fantastic I really do recommend people reach out if you're if recommend people reach out if you're if recommend people reach out if you're if you're enjoying this if you found there you're enjoying this if you found there you're enjoying this if you found there was some value in me sharing this we was some value in me sharing this we was some value in me sharing this we want to hear more of the in-depth want to hear more of the in-depth want to hear more of the in-depth details of how i renovated some of these details of how i renovated some of these details of how i renovated some of these properties or you know how I end up properties or you know how I end up properties or you know how I end up hospitalized because I was working so hospitalized because I was working so hospitalized because I was working so hard hundred hour weeks traveling for hard hundred hour weeks traveling for hard hundred hour weeks traveling for consulting coming back trying to get the consulting coming back trying to get the consulting coming back trying to get the promotion at work because during those promotion at work because during those promotion at work because during those three knows three years I grinded from three knows three years I grinded from three knows three years I grinded from to I started as an analyst to I started as an analyst to I started as an analyst got promoted to senior analyst and then got promoted to senior analyst and then got promoted to senior analyst and then again to manager I work very hard to again to manager I work very hard to again to manager I work very hard to keep up appearances in the corporate keep up appearances in the corporate keep up appearances in the corporate world while still secretly investing in world while still secretly investing in world while still secretly investing in real estate and building my stock real estate and building my stock real estate and building my stock portfolio I have a two and a half year portfolio I have a two and a half year portfolio I have a two and a half year old daughter and a wife we married old daughter and a wife we married old daughter and a wife we married almost years now so high school almost years now so high school almost years now so high school sweethearts I am focused on my family sweethearts I am focused on my family sweethearts I am focused on my family first so first family then comes first so first family then comes first so first family then comes business the third thing I love is business the third thing I love is business the third thing I love is personal financing and giving back I do personal financing and giving back I do personal financing and giving back I do a lot of videos on YouTube and Facebook a lot of videos on YouTube and Facebook a lot of videos on YouTube and Facebook live and Instagram live and I'm sharing live and Instagram live and I'm sharing live and Instagram live and I'm sharing posts all over the place on my blog and posts all over the place on my blog and posts all over the place on my blog and I do a lot of communicating with people I do a lot of communicating with people I do a lot of communicating with people and mentoring with a lot of folks and I and mentoring with a lot of folks and I and mentoring with a lot of folks and I do that because I love it and because do that because I love it and because do that because I love it and because money isn't the most important thing in money isn't the most important thing in money isn't the most important thing in my life right now I have more than I my life right now I have more than I my life right now I have more than I ever need I have years of living ever need I have years of living ever need I have years of living expenses set aside my passive income is expenses set aside my passive income is expenses set aside my passive income is there no matter whether I get up for there no matter whether I get up for there no matter whether I get up for work or I don't so what I do I have to work or I don't so what I do I have to work or I don't so what I do I have to do with passion and I have to love what do with passion and I have to love what do with passion and I have to love what I do and I do love what I do a lot of it I do and I do love what I do a lot of it I do and I do love what I do a lot of it is giving back and I honestly do look is giving back and I honestly do look is giving back and I honestly do look for people who I can surround myself for people who I can surround myself for people who I can surround myself with who have a similar mission who love with who have a similar mission who love with who have a similar mission who love to make money as a scoreboard who want to make money as a scoreboard who want to make money as a scoreboard who want to build companies to have change and to build companies to have change and to build companies to have change and impact on others lives and so that's impact on others lives and so that's impact on others lives and so that's been a big thing for me and a big focus been a big thing for me and a big focus been a big thing for me and a big focus today I've purchased over properties today I've purchased over properties today I've purchased over properties and I'm the CEO of a company called the and I'm the CEO of a company called the and I'm the CEO of a company called the right way man right way man right way man and we focus on managing properties for and we focus on managing properties for and we focus on managing properties for our investors and partnering with our our investors and partnering with our our investors and partnering with our with our investors the thing that makes with our investors the thing that makes with our investors the thing that makes us different is that we actually control us different is that we actually control us different is that we actually control we we buy the property we have the deal we we buy the property we have the deal we we buy the property we have the deal we handed over to the investor we we handed over to the investor we we handed over to the investor we partner with the investor the investor partner with the investor the investor partner with the investor the investor only brings the money in the financing only brings the money in the financing only brings the money in the financing we manage everything from property we manage everything from property we manage everything from property management tenant placement renovations management tenant placement renovations management tenant placement renovations on the property to unlock and increase on the property to unlock and increase on the property to unlock and increase value on the properties and what that's value on the properties and what that's value on the properties and what that's done is allow us to basically make done is allow us to basically make done is allow us to basically make investors a ton of money as well as you investors a ton of money as well as you investors a ton of money as well as you know ourself for building quite a know ourself for building quite a know ourself for building quite a sizable portfolio what are the three sizable portfolio what are the three sizable portfolio what are the three secrets to my success one I was secrets to my success one I was secrets to my success one I was embracing for gala like you wouldn't embracing for gala like you wouldn't embracing for gala like you wouldn't believe believe believe - I embraced hard work so I always - I embraced hard work so I always - I embraced hard work so I always worked hours a week minimum if you worked hours a week minimum if you worked hours a week minimum if you worked hours a week at minimum wage worked hours a week at minimum wage worked hours a week at minimum wage you will still earn enough to reach you will still earn enough to reach you will still earn enough to reach financial independence and I invested financial independence and I invested financial independence and I invested very smartly I was very astute with what very smartly I was very astute with what very smartly I was very astute with what I did with those savings now that I did with those savings now that I did with those savings now that mattered a lot more later in my journey mattered a lot more later in my journey mattered a lot more later in my journey than it did in the beginning of my than it did in the beginning of my than it did in the beginning of my journey in fact the first hundred journey in fact the first hundred journey in fact the first hundred thousand dollars in your net worth is thousand dollars in your net worth is thousand dollars in your net worth is mostly should mostly come from your mostly should mostly come from your mostly should mostly come from your saving in fact the start of your journey saving in fact the start of your journey saving in fact the start of your journey should be focused on frugality and so should be focused on frugality and so should be focused on frugality and so I'm so thankful to be a part of a part I'm so thankful to be a part of a part I'm so thankful to be a part of a part of this a part of your lives and I look of this a part of your lives and I look of this a part of your lives and I look forward to networking please smash that forward to networking please smash that forward to networking please smash that like button hit the subscribe and like button hit the subscribe and like button hit the subscribe and there's a little notification bell right there's a little notification bell right there's a little notification bell right besides subscribe I want you to hit that besides subscribe I want you to hit that besides subscribe I want you to hit that too so you can get notifications when I too so you can get notifications when I too so you can get notifications when I drop new videos and that way we can stay drop new videos and that way we can stay drop new videos and that way we can stay in touch if you want to have a personal in touch if you want to have a personal in touch if you want to have a personal conversation with me start in the conversation with me start in the conversation with me start in the comments with a question I always answer comments with a question I always answer comments with a question I always answer every question on every YouTube video every question on every YouTube video every question on every YouTube video let me know if you want to see a let me know if you want to see a let me know if you want to see a different type of video happy to share different type of video happy to share different type of video happy to share there any type of content that you find there any type of content that you find there any type of content that you find valuable related to personal finance valuable related to personal finance valuable related to personal finance real estate investing the lifestyle real estate investing the lifestyle real estate investing the lifestyle whatever you want to reach out to me on whatever you want to reach out to me on whatever you want to reach out to me on Instagram directly it's at micros Hart Instagram directly it's at micros Hart Instagram directly it's at micros Hart if you want to find me on Facebook again if you want to find me on Facebook again if you want to find me on Facebook again micro start that is it guys spend less micro start that is it guys spend less micro start that is it guys spend less earn more and maximize returns to unlock earn more and maximize returns to unlock earn more and maximize returns to unlock a wealth you you you WEBVTT Kind: captions Language: en every now and again I like to sit down every now and again I like to sit down every now and again I like to sit down and take a deeper dive into my finances and take a deeper dive into my finances and take a deeper dive into my finances when I was running the numbers recently when I was running the numbers recently when I was running the numbers recently I realized that my savings rate had I realized that my savings rate had I realized that my savings rate had jumped by percent okay so I don't jumped by percent okay so I don't jumped by percent okay so I don't actually save sixty nine point five actually save sixty nine point five actually save sixty nine point five percent of my income but I do save percent of my income but I do save percent of my income but I do save percent of my income every single month percent of my income every single month percent of my income every single month so in this video I'm gonna walk you so in this video I'm gonna walk you so in this video I'm gonna walk you through how I save percent of my through how I save percent of my through how I save percent of my income every single month the goal is to income every single month the goal is to income every single month the goal is to hopefully give you some ideas to explore hopefully give you some ideas to explore hopefully give you some ideas to explore for yourself so you can greatly increase for yourself so you can greatly increase for yourself so you can greatly increase your savings rate kind of like I have if your savings rate kind of like I have if your savings rate kind of like I have if that sounds interesting to you then that sounds interesting to you then that sounds interesting to you then please Hulk smash that thumbs up button please Hulk smash that thumbs up button please Hulk smash that thumbs up button I would greatly appreciate it and it I would greatly appreciate it and it I would greatly appreciate it and it helps show my mom that I'm not as big of helps show my mom that I'm not as big of helps show my mom that I'm not as big of a loser as she thinks I am I think it's a loser as she thinks I am I think it's a loser as she thinks I am I think it's safe to say that there is a big savings safe to say that there is a big savings safe to say that there is a big savings problem when it comes to Americans not problem when it comes to Americans not problem when it comes to Americans not because we're all idiots but because you because we're all idiots but because you because we're all idiots but because you don't know what you don't know but once don't know what you don't know but once don't know what you don't know but once you know it it's one of those things you know it it's one of those things you know it it's one of those things where you're like oh okay where you're like oh okay where you're like oh okay I get it now it's the same thing with I get it now it's the same thing with I get it now it's the same thing with maxing out your savings rate it's maxing out your savings rate it's maxing out your savings rate it's honestly not rocket science and way way honestly not rocket science and way way honestly not rocket science and way way way more attainable to increase your way more attainable to increase your way more attainable to increase your savings rate than you think savings rate than you think savings rate than you think I would go as far as saying that I would go as far as saying that I would go as far as saying that everyone watching this is able to do % everyone watching this is able to do % everyone watching this is able to do % of the things that I'll show you but of the things that I'll show you but of the things that I'll show you but even if you can only do % of these even if you can only do % of these even if you can only do % of these things that I talked about the net right things that I talked about the net right things that I talked about the net right there will greatly increase your savings there will greatly increase your savings there will greatly increase your savings and investment rate in a way that you and investment rate in a way that you and investment rate in a way that you didn't even think was possible now when didn't even think was possible now when didn't even think was possible now when you hear that I'm saving percent of you hear that I'm saving percent of you hear that I'm saving percent of my income then your natural thought may my income then your natural thought may my income then your natural thought may be be be well you must make a lot of money back well you must make a lot of money back well you must make a lot of money back or you must be so deprived that you're or you must be so deprived that you're or you must be so deprived that you're not enjoying your life um actually I not enjoying your life um actually I not enjoying your life um actually I have pretty much everything that I want have pretty much everything that I want have pretty much everything that I want and need if I want something then of and need if I want something then of and need if I want something then of course I buy it there is ZERO course I buy it there is ZERO course I buy it there is ZERO deprivation or cheapness going on over deprivation or cheapness going on over deprivation or cheapness going on over here in this house if you want to make here in this house if you want to make here in this house if you want to make this happen then you just have to get a this happen then you just have to get a this happen then you just have to get a few things right don't forget to hit few things right don't forget to hit few things right don't forget to hit that subscribe button if you want more that subscribe button if you want more that subscribe button if you want more personal finance videos just like this personal finance videos just like this personal finance videos just like this one there's also all kinds of playlists one there's also all kinds of playlists one there's also all kinds of playlists in the description for you to check out in the description for you to check out in the description for you to check out after you watch this video to help you after you watch this video to help you after you watch this video to help you out with all of your personal finance out with all of your personal finance out with all of your personal finance needs let's get into how I save is needs let's get into how I save is needs let's get into how I save is seventy percent of my income every seventy percent of my income every seventy percent of my income every single month write me out single month write me out single month write me out the first reason my savings rate is so the first reason my savings rate is so the first reason my savings rate is so high is that I don't have kids now high is that I don't have kids now high is that I don't have kids now before you get all angry start typing before you get all angry start typing before you get all angry start typing ignorant things in the comments and ignorant things in the comments and ignorant things in the comments and giving this video a thumbs down I'm just giving this video a thumbs down I'm just giving this video a thumbs down I'm just being honest and I'm owning the fact being honest and I'm owning the fact being honest and I'm owning the fact that this does play a role in my high that this does play a role in my high that this does play a role in my high savings rate so Hulk smash that thumbs savings rate so Hulk smash that thumbs savings rate so Hulk smash that thumbs up button for honesty this is coming up button for honesty this is coming up button for honesty this is coming from a guy who really from a guy who really from a guy who really likes children and is absolutely open to likes children and is absolutely open to likes children and is absolutely open to having kids in the future if I can find having kids in the future if I can find having kids in the future if I can find a smokin hot wife that wants to have all a smokin hot wife that wants to have all a smokin hot wife that wants to have all of my babies I can I can't we don't say of my babies I can I can't we don't say of my babies I can I can't we don't say I can't we say either I can or I will I can't we say either I can or I will I can't we say either I can or I will try I will try we don't say I can't nope try I will try we don't say I can't nope try I will try we don't say I can't nope we say I can or I will try there you go we say I can or I will try there you go we say I can or I will try there you go good job or maybe I'll even adopt a kid good job or maybe I'll even adopt a kid good job or maybe I'll even adopt a kid in the future who knows but I'm able to in the future who knows but I'm able to in the future who knows but I'm able to have more money in my pocket today since have more money in my pocket today since have more money in my pocket today since I'm not caring for a cute and sometimes I'm not caring for a cute and sometimes I'm not caring for a cute and sometimes annoying little monster the more annoying little monster the more annoying little monster the more important thing to take away from here important thing to take away from here important thing to take away from here is that if you have kids now or gonna is that if you have kids now or gonna is that if you have kids now or gonna have them in the future don't lick the have them in the future don't lick the have them in the future don't lick the fact that you have kids prevent you from fact that you have kids prevent you from fact that you have kids prevent you from increasing your income to increase your increasing your income to increase your increasing your income to increase your savings rate it's one of those limiting savings rate it's one of those limiting savings rate it's one of those limiting beliefs that's extremely easy to fall beliefs that's extremely easy to fall beliefs that's extremely easy to fall into a fear parent because you're into a fear parent because you're into a fear parent because you're already working hard enough caring for already working hard enough caring for already working hard enough caring for these kids so how in the world are you these kids so how in the world are you these kids so how in the world are you supposed to make more money as well the supposed to make more money as well the supposed to make more money as well the majority of my friends are parents and a majority of my friends are parents and a majority of my friends are parents and a lot of them have found ways to increase lot of them have found ways to increase lot of them have found ways to increase their income in ways that they never their income in ways that they never their income in ways that they never thought before another thing parents can thought before another thing parents can thought before another thing parents can do is make their kids work as early as do is make their kids work as early as do is make their kids work as early as possible and start paying for things on possible and start paying for things on possible and start paying for things on their own the skin greatly increase your their own the skin greatly increase your their own the skin greatly increase your savings rate if you are a parent now I savings rate if you are a parent now I savings rate if you are a parent now I know when I was I started working and know when I was I started working and know when I was I started working and paying for everything myself paying for everything myself paying for everything myself and I honestly think it's played a huge and I honestly think it's played a huge and I honestly think it's played a huge role in shaping Who I am today role in shaping Who I am today role in shaping Who I am today you should also force your kids to apply you should also force your kids to apply you should also force your kids to apply for scholarships if they go to college for scholarships if they go to college for scholarships if they go to college so you have to worry about having to so you have to worry about having to so you have to worry about having to save money for them every single munch save money for them every single munch save money for them every single munch munch munch month which will greatly munch munch month which will greatly munch munch month which will greatly increase your savings rate paying off increase your savings rate paying off increase your savings rate paying off eighty two thousand dollars of debt in eighty two thousand dollars of debt in eighty two thousand dollars of debt in four years is still one of the best four years is still one of the best four years is still one of the best decisions I've ever made it's also a decisions I've ever made it's also a decisions I've ever made it's also a large contributing factor to how I'm large contributing factor to how I'm large contributing factor to how I'm able to save and invest seventy percent able to save and invest seventy percent able to save and invest seventy percent of my income every single month my debt of my income every single month my debt of my income every single month my debt consistent of student loans a credit consistent of student loans a credit consistent of student loans a credit card and a car loan carrying debt has card and a car loan carrying debt has card and a car loan carrying debt has become so common among Americans that become so common among Americans that become so common among Americans that it's something that everyone just it's something that everyone just it's something that everyone just accepts as something that they'll always accepts as something that they'll always accepts as something that they'll always have kind of like that pet turtle that I have kind of like that pet turtle that I have kind of like that pet turtle that I got from one of my exes that thing's got from one of my exes that thing's got from one of my exes that thing's gonna live forever gonna live forever gonna live forever bad debt will be one of the largest bad debt will be one of the largest bad debt will be one of the largest destroyers of your wealth above anything destroyers of your wealth above anything destroyers of your wealth above anything else if you allowed to hang around until else if you allowed to hang around until else if you allowed to hang around until the day that you die it's like lighting the day that you die it's like lighting the day that you die it's like lighting money on fire every single month not money on fire every single month not money on fire every single month not only are you losing money through the only are you losing money through the only are you losing money through the interest that you're paying but you interest that you're paying but you interest that you're paying but you carry around this a large amount of risk carry around this a large amount of risk carry around this a large amount of risk everywhere you go it follows you everywhere you go it follows you everywhere you go it follows you for ever for and bur name that movie in for ever for and bur name that movie in for ever for and bur name that movie in the comments if you know what it is when the comments if you know what it is when the comments if you know what it is when you carry bad debt you lock yourself you carry bad debt you lock yourself you carry bad debt you lock yourself into being vulnerable to the insanity into being vulnerable to the insanity into being vulnerable to the insanity that's already here in life your back is that's already here in life your back is that's already here in life your back is instantly in a corner every single instantly in a corner every single instantly in a corner every single morning that you wake up and whoever you morning that you wake up and whoever you morning that you wake up and whoever you owe money to literally owns you they own owe money to literally owns you they own owe money to literally owns you they own your thoughts they own your feelings your thoughts they own your feelings your thoughts they own your feelings they own your emotions they choose what they own your emotions they choose what they own your emotions they choose what you can and can't do and they own your you can and can't do and they own your you can and can't do and they own your happiness stupid people spend money that happiness stupid people spend money that happiness stupid people spend money that they don't have on things that they they don't have on things that they they don't have on things that they don't need I decided to stop being don't need I decided to stop being don't need I decided to stop being stupid and only buy things that I can stupid and only buy things that I can stupid and only buy things that I can actually afford by saving up for it you actually afford by saving up for it you actually afford by saving up for it you can't know how much you were saving can't know how much you were saving can't know how much you were saving unless you know where it's going because unless you know where it's going because unless you know where it's going because of this a budget is extremely important of this a budget is extremely important of this a budget is extremely important to my ability to be able to save to my ability to be able to save to my ability to be able to save percent of my income budgeting isn't percent of my income budgeting isn't percent of my income budgeting isn't about being cheap at all it's just a way about being cheap at all it's just a way about being cheap at all it's just a way for you to direct your money and tell it for you to direct your money and tell it for you to direct your money and tell it where to go as opposed to having to tell where to go as opposed to having to tell where to go as opposed to having to tell you where it wants to go which is you where it wants to go which is you where it wants to go which is usually right down the toilet if you're usually right down the toilet if you're usually right down the toilet if you're not paying attention I recently heard not paying attention I recently heard not paying attention I recently heard about an author that was trashing about an author that was trashing about an author that was trashing budgets because he said they prevent you budgets because he said they prevent you budgets because he said they prevent you from earning more money and being happy from earning more money and being happy from earning more money and being happy since they forced you to cut back he since they forced you to cut back he since they forced you to cut back he said it gives the person a scarcity said it gives the person a scarcity said it gives the person a scarcity mindset my answer to this author is you mindset my answer to this author is you mindset my answer to this author is you sir are an idiot because what prevents a sir are an idiot because what prevents a sir are an idiot because what prevents a person from making more money has more person from making more money has more person from making more money has more to do with a person not going out to to do with a person not going out to to do with a person not going out to pursue more money a budget has pursue more money a budget has pursue more money a budget has absolutely nothing to do with that a absolutely nothing to do with that a absolutely nothing to do with that a budget is a way for you to prioritize budget is a way for you to prioritize budget is a way for you to prioritize your spending so that more of it goes your spending so that more of it goes your spending so that more of it goes towards things that actually make you towards things that actually make you towards things that actually make you happy and will improve your lifestyle happy and will improve your lifestyle happy and will improve your lifestyle today and in the future I think there's today and in the future I think there's today and in the future I think there's been enough studies done on this that been enough studies done on this that been enough studies done on this that buying more things does not correlate to buying more things does not correlate to buying more things does not correlate to becoming more happy so if you love becoming more happy so if you love becoming more happy so if you love buying clothes and that makes you the buying clothes and that makes you the buying clothes and that makes you the happiest person in the world then that's happiest person in the world then that's happiest person in the world then that's great budget for clothes and buy those great budget for clothes and buy those great budget for clothes and buy those clothes clothes clothes if pursuing financial independence or if pursuing financial independence or if pursuing financial independence or retire early will make you super happy retire early will make you super happy retire early will make you super happy then great budget your money so you can then great budget your money so you can then great budget your money so you can achieve financial independence or early achieve financial independence or early achieve financial independence or early retirement can you increase your savings retirement can you increase your savings retirement can you increase your savings right without a budget I'm sure you can right without a budget I'm sure you can right without a budget I'm sure you can of course you can do anything you want of course you can do anything you want of course you can do anything you want but I could also go swimming with sharks but I could also go swimming with sharks but I could also go swimming with sharks and not get bit but I'm still not gonna and not get bit but I'm still not gonna and not get bit but I'm still not gonna hop in that ocean to do it no thanks no hop in that ocean to do it no thanks no hop in that ocean to do it no thanks no way you can jump in on your own if you way you can jump in on your own if you way you can jump in on your own if you want the next reason I'm able to save want the next reason I'm able to save want the next reason I'm able to save percent of my income is that I don't percent of my income is that I don't percent of my income is that I don't spend insane amounts of money on car spend insane amounts of money on car spend insane amounts of money on car purchases does this mean purchases does this mean purchases does this mean I only Drive beaters nope not at all I only Drive beaters nope not at all I only Drive beaters nope not at all instead I choose to buy more reliable instead I choose to buy more reliable instead I choose to buy more reliable car models that have a better track car models that have a better track car models that have a better track record with cash of course record with cash of course record with cash of course the whiff cache and used parts are the the whiff cache and used parts are the the whiff cache and used parts are the keys to success since I pay cash I don't keys to success since I pay cash I don't keys to success since I pay cash I don't have to shell out extra money every have to shell out extra money every have to shell out extra money every single month through the interest that single month through the interest that single month through the interest that I'd be paying I actually haven't paid I'd be paying I actually haven't paid I'd be paying I actually haven't paid cash for a car yet since I still own the cash for a car yet since I still own the cash for a car yet since I still own the car I used to have a loan out for but I car I used to have a loan out for but I car I used to have a loan out for but I finally have enough cash sitting in a finally have enough cash sitting in a finally have enough cash sitting in a high inter savings account for when my high inter savings account for when my high inter savings account for when my current car dies when that time comes current car dies when that time comes current car dies when that time comes I'll buy a used car preferably something I'll buy a used car preferably something I'll buy a used car preferably something over five years old to avoid that over five years old to avoid that over five years old to avoid that depreciation that everyone faces on a depreciation that everyone faces on a depreciation that everyone faces on a new car five years is the secret number new car five years is the secret number new car five years is the secret number since the average car loses % of its since the average car loses % of its since the average car loses % of its value through depreciation within the value through depreciation within the value through depreciation within the first five years so instead of paying first five years so instead of paying first five years so instead of paying interest by taking out a loan on a car I interest by taking out a loan on a car I interest by taking out a loan on a car I now save that money in a high interest now save that money in a high interest now save that money in a high interest savings account where I make money savings account where I make money savings account where I make money well that cash just sits there until I well that cash just sits there until I well that cash just sits there until I buy into my next car you'll never find buy into my next car you'll never find buy into my next car you'll never find me taking a loan out on a car ever again me taking a loan out on a car ever again me taking a loan out on a car ever again in my life this one has actually been in my life this one has actually been in my life this one has actually been easier to do than most people make it easier to do than most people make it easier to do than most people make it out to be out to be out to be I spend a very minimal amount of my I spend a very minimal amount of my I spend a very minimal amount of my monthly income on housing by minimal I'm monthly income on housing by minimal I'm monthly income on housing by minimal I'm talking way less than % of my talking way less than % of my talking way less than % of my take-home pay I've seen stats out there take-home pay I've seen stats out there take-home pay I've seen stats out there saying that the average housing costs saying that the average housing costs saying that the average housing costs are roughly percent of most people's are roughly percent of most people's are roughly percent of most people's income knowing this it was extremely income knowing this it was extremely income knowing this it was extremely important for me to find a way to lower important for me to find a way to lower important for me to find a way to lower this amount by as much as I possibly this amount by as much as I possibly this amount by as much as I possibly could so I bought a house for a very could so I bought a house for a very could so I bought a house for a very modest amount to be honest with you I modest amount to be honest with you I modest amount to be honest with you I think that most homes are money pits a think that most homes are money pits a think that most homes are money pits a lot of people look at their home as an lot of people look at their home as an lot of people look at their home as an investment and sometimes they are but to investment and sometimes they are but to investment and sometimes they are but to just assume that buying a home will just assume that buying a home will just assume that buying a home will somehow generate you return is the wrong somehow generate you return is the wrong somehow generate you return is the wrong way to look at a home purchase my home way to look at a home purchase my home way to look at a home purchase my home isn't a complete dump at all I actually isn't a complete dump at all I actually isn't a complete dump at all I actually think it's a pretty nice house for a think it's a pretty nice house for a think it's a pretty nice house for a cheap price that I paid in the area that cheap price that I paid in the area that cheap price that I paid in the area that I'm in and plus none of the women that I'm in and plus none of the women that I'm in and plus none of the women that I've ever dated have felt unsafe in this I've ever dated have felt unsafe in this I've ever dated have felt unsafe in this area either so that's a win in my book area either so that's a win in my book area either so that's a win in my book well I buy a more established home later well I buy a more established home later well I buy a more established home later down the line possibly but until then down the line possibly but until then down the line possibly but until then I'm banking all of the extra cash that I I'm banking all of the extra cash that I I'm banking all of the extra cash that I would be paid for a nicer home and would be paid for a nicer home and would be paid for a nicer home and letting that money work in my favor letting that money work in my favor letting that money work in my favor through investments another contributing through investments another contributing through investments another contributing factor to my high savings rate when it factor to my high savings rate when it factor to my high savings rate when it comes to housing is that I live comes to housing is that I live comes to housing is that I live extremely close to work like minutes extremely close to work like minutes extremely close to work like minutes minutes tops minutes tops minutes tops not only does this save time but it also not only does this save time but it also not only does this save time but it also saves money when it comes to gas saves money when it comes to gas saves money when it comes to gas and wear and tear in my car when it's and wear and tear in my car when it's and wear and tear in my car when it's nice out I'll even throw my tennis shoes nice out I'll even throw my tennis shoes nice out I'll even throw my tennis shoes on and walk to work I get that not on and walk to work I get that not on and walk to work I get that not everyone can do this but I bet that you everyone can do this but I bet that you everyone can do this but I bet that you could find a way to make this work for could find a way to make this work for could find a way to make this work for your specific situation unless you live your specific situation unless you live your specific situation unless you live in a high cost of living state like in a high cost of living state like in a high cost of living state like California then I would just tell you to California then I would just tell you to California then I would just tell you to move somewhere else if you were move somewhere else if you were move somewhere else if you were interested in getting an idea if you interested in getting an idea if you interested in getting an idea if you live in a high cost of living area then live in a high cost of living area then live in a high cost of living area then I find a website that you might want to I find a website that you might want to I find a website that you might want to check out it is called best places Nets check out it is called best places Nets check out it is called best places Nets head to that website and type in this head to that website and type in this head to that website and type in this city that you live in then click on the city that you live in then click on the city that you live in then click on the cost of living link to the side it'll cost of living link to the side it'll cost of living link to the side it'll rate your city based on the US average rate your city based on the US average rate your city based on the US average score of the sixth reason I'm able score of the sixth reason I'm able score of the sixth reason I'm able to save percent of my income is that to save percent of my income is that to save percent of my income is that I don't have a girlfriend so naturally I don't have a girlfriend so naturally I don't have a girlfriend so naturally there's more money in my pocket don't there's more money in my pocket don't there's more money in my pocket don't get mad I'm just kidding kind of but I get mad I'm just kidding kind of but I get mad I'm just kidding kind of but I am very conscious when it comes to date am very conscious when it comes to date am very conscious when it comes to date in the past the first couple of times in the past the first couple of times in the past the first couple of times that I would meet a girl I would spend a that I would meet a girl I would spend a that I would meet a girl I would spend a lot of money taking them out to dinner lot of money taking them out to dinner lot of money taking them out to dinner the whole wine and dine thing because the whole wine and dine thing because the whole wine and dine thing because that's just how I was raised but after a that's just how I was raised but after a that's just how I was raised but after a while I looked at the amount of money while I looked at the amount of money while I looked at the amount of money that I would spend and kind of threw up that I would spend and kind of threw up that I would spend and kind of threw up a little bit in my mouth not because I a little bit in my mouth not because I a little bit in my mouth not because I wasn't attracted to any of them but wasn't attracted to any of them but wasn't attracted to any of them but because that money really really adds up because that money really really adds up because that money really really adds up especially when you're a lifelong dater especially when you're a lifelong dater especially when you're a lifelong dater like I I knew that I wasn't gonna stop like I I knew that I wasn't gonna stop like I I knew that I wasn't gonna stop dating to keep my savings rate up that'd dating to keep my savings rate up that'd dating to keep my savings rate up that'd be a little bit ridiculous but I knew be a little bit ridiculous but I knew be a little bit ridiculous but I knew that something needed to change now I that something needed to change now I that something needed to change now I have a rule when it comes to dating the have a rule when it comes to dating the have a rule when it comes to dating the first few times that I hang out with a first few times that I hang out with a first few times that I hang out with a woman I either take them out for coffee woman I either take them out for coffee woman I either take them out for coffee or we do something that's fun for free or we do something that's fun for free or we do something that's fun for free or very low cost not only does this save or very low cost not only does this save or very low cost not only does this save some money until I decide if I really some money until I decide if I really some money until I decide if I really like this girl and actually want to like this girl and actually want to like this girl and actually want to spend more money on her but it also spend more money on her but it also spend more money on her but it also prevents any bad decisions that may be prevents any bad decisions that may be prevents any bad decisions that may be made if I went out drinking at a bar made if I went out drinking at a bar made if I went out drinking at a bar with a girl on the first date I know with a girl on the first date I know with a girl on the first date I know this might be strange to some of you out this might be strange to some of you out this might be strange to some of you out there but I'm trying to avoid an there but I'm trying to avoid an there but I'm trying to avoid an illegitimate child with a woman that I illegitimate child with a woman that I illegitimate child with a woman that I don't like don't like don't like I guess I'm weird like that the takeaway I guess I'm weird like that the takeaway I guess I'm weird like that the takeaway from this one isn't to break up with from this one isn't to break up with from this one isn't to break up with your significant other but instead talk your significant other but instead talk your significant other but instead talk about your money goals so you're both on about your money goals so you're both on about your money goals so you're both on the same page the next way I'm able to the same page the next way I'm able to the same page the next way I'm able to save % of my income is by fasting now save % of my income is by fasting now save % of my income is by fasting now I know this isn't for everyone and I'm I know this isn't for everyone and I'm I know this isn't for everyone and I'm not telling you go fast but getting on a not telling you go fast but getting on a not telling you go fast but getting on a diet where I only eat twice a day or diet where I only eat twice a day or diet where I only eat twice a day or within a specific feeding window has has within a specific feeding window has has within a specific feeding window has has decreased how much money that I spend on decreased how much money that I spend on decreased how much money that I spend on food every single month plus I like the food every single month plus I like the food every single month plus I like the other health benefits from it as well other health benefits from it as well other health benefits from it as well don't worry don't worry don't worry I won't nerd out on that kind of stuff I won't nerd out on that kind of stuff I won't nerd out on that kind of stuff in this video if fasting doesn't sound in this video if fasting doesn't sound in this video if fasting doesn't sound appealing to you then get on a different appealing to you then get on a different appealing to you then get on a different diet that you'll stick to the main diet that you'll stick to the main diet that you'll stick to the main reason this is gonna help you save money reason this is gonna help you save money reason this is gonna help you save money is that it puts more structure around is that it puts more structure around is that it puts more structure around the things that you're putting into your the things that you're putting into your the things that you're putting into your mouth and do not in a gross way you mouth and do not in a gross way you mouth and do not in a gross way you freaks get your mind out of the gutter freaks get your mind out of the gutter freaks get your mind out of the gutter please instead of snacking all day like please instead of snacking all day like please instead of snacking all day like you're at a buffet you'll get a better you're at a buffet you'll get a better you're at a buffet you'll get a better handle on your food intake which will handle on your food intake which will handle on your food intake which will have an impact on how much money you're have an impact on how much money you're have an impact on how much money you're spending on food every single month plus spending on food every single month plus spending on food every single month plus you'll start to feel a little bit better you'll start to feel a little bit better you'll start to feel a little bit better in general the eighth way that I'm able in general the eighth way that I'm able in general the eighth way that I'm able to save percent of my income every to save percent of my income every to save percent of my income every single month is by making my health a single month is by making my health a single month is by making my health a top priority a New York Times article top priority a New York Times article top priority a New York Times article cited a study that exercising can save cited a study that exercising can save cited a study that exercising can save you $, per year on medical costs you $, per year on medical costs you $, per year on medical costs this study looked at over , men and this study looked at over , men and this study looked at over , men and women it concluded that inactivity cost women it concluded that inactivity cost women it concluded that inactivity cost the United States economy almost twenty the United States economy almost twenty the United States economy almost twenty eight billion dollars in medical eight billion dollars in medical eight billion dollars in medical expenses and lost productivity every expenses and lost productivity every expenses and lost productivity every single year that's exactly why you see single year that's exactly why you see single year that's exactly why you see many companies out there that have many companies out there that have many companies out there that have fitness and health focused programs it fitness and health focused programs it fitness and health focused programs it saves both you and them more money in saves both you and them more money in saves both you and them more money in the long run here's the three areas that the long run here's the three areas that the long run here's the three areas that I focus on when it comes to my health I focus on when it comes to my health I focus on when it comes to my health number one is my nutritional health the number one is my nutritional health the number one is my nutritional health the food that I eat it kind of goes along food that I eat it kind of goes along food that I eat it kind of goes along with what I mentioned with fasting next with what I mentioned with fasting next with what I mentioned with fasting next is with my physical health is with my physical health is with my physical health I built a garage gym that I workout in I I built a garage gym that I workout in I I built a garage gym that I workout in I do indoor workouts I'm also at my local do indoor workouts I'm also at my local do indoor workouts I'm also at my local park all the time running hiking and park all the time running hiking and park all the time running hiking and doing some other things that are very doing some other things that are very doing some other things that are very physically active out there lastly I physically active out there lastly I physically active out there lastly I make my mental health a top priority as make my mental health a top priority as make my mental health a top priority as well you may be questioning how this well you may be questioning how this well you may be questioning how this saves money the way that I look at it is saves money the way that I look at it is saves money the way that I look at it is that if is that if my mental health is that if is that if my mental health is that if is that if my mental health is in order then I can be an even more in order then I can be an even more in order then I can be an even more happy and productive human being in happy and productive human being in happy and productive human being in general I take care of this mental general I take care of this mental general I take care of this mental health through daily meditation and health through daily meditation and health through daily meditation and writing the ninth way I'm able to save writing the ninth way I'm able to save writing the ninth way I'm able to save percent of my income is that I don't percent of my income is that I don't percent of my income is that I don't ever get a raise at work okay I do get a ever get a raise at work okay I do get a ever get a raise at work okay I do get a regular race from work at my job but I regular race from work at my job but I regular race from work at my job but I don't ever see that money in my monthly don't ever see that money in my monthly don't ever see that money in my monthly paycheck that's because every pay paycheck that's because every pay paycheck that's because every pay increase that I've received over the increase that I've received over the increase that I've received over the past couple of years has gone straight past couple of years has gone straight past couple of years has gone straight to investments so technically I never to investments so technically I never to investments so technically I never get a raise my overall wealth gets a get a raise my overall wealth gets a get a raise my overall wealth gets a raise if I get a $, raise at work raise if I get a $, raise at work raise if I get a $, raise at work then I calculate how much of it I'll then I calculate how much of it I'll then I calculate how much of it I'll actually be taking home then increase my actually be taking home then increase my actually be taking home then increase my investments by that amount out of sight investments by that amount out of sight investments by that amount out of sight out out out mind until I calculate my net worth mind until I calculate my net worth mind until I calculate my net worth every single month and get a great big every single month and get a great big every single month and get a great big smile on my face once I see that numbers smile on my face once I see that numbers smile on my face once I see that numbers start to grow some people might look at start to grow some people might look at start to grow some people might look at this as me depriving myself but it's not this as me depriving myself but it's not this as me depriving myself but it's not like that at all like that at all like that at all I've been able to find the amount that I I've been able to find the amount that I I've been able to find the amount that I need to live on that makes me need to live on that makes me need to live on that makes me comfortable and happy so I make it a comfortable and happy so I make it a comfortable and happy so I make it a point to stick to that number the tenth point to stick to that number the tenth point to stick to that number the tenth way I'm able to save percent of my way I'm able to save percent of my way I'm able to save percent of my income is because I'm a bit of a income is because I'm a bit of a income is because I'm a bit of a minimalist but it's not like I don't own minimalist but it's not like I don't own minimalist but it's not like I don't own things so minimalist isn't the best word things so minimalist isn't the best word things so minimalist isn't the best word for it I guess you could say that I'm for it I guess you could say that I'm for it I guess you could say that I'm warm and it an intentional list if warm and it an intentional list if warm and it an intentional list if that's even a word I like spending money that's even a word I like spending money that's even a word I like spending money but only on the things that really bring but only on the things that really bring but only on the things that really bring me value and happiness minimalism has me value and happiness minimalism has me value and happiness minimalism has taught me to kind of take a step back taught me to kind of take a step back taught me to kind of take a step back and question how much value something is and question how much value something is and question how much value something is going to give me if I do end up bringing going to give me if I do end up bringing going to give me if I do end up bringing it into my life it's made me realize it into my life it's made me realize it into my life it's made me realize that buying more and more things doesn't that buying more and more things doesn't that buying more and more things doesn't make me happy which is which in turn has make me happy which is which in turn has make me happy which is which in turn has saved me from spending money on useless saved me from spending money on useless saved me from spending money on useless things just to keep up with the Joneses things just to keep up with the Joneses things just to keep up with the Joneses whoever they are which in turn has given whoever they are which in turn has given whoever they are which in turn has given me the ability to save more to invest me the ability to save more to invest me the ability to save more to invest last but not least I use credit cards last but not least I use credit cards last but not least I use credit cards which saves me a pretty good amount of which saves me a pretty good amount of which saves me a pretty good amount of money every single year I know that Dave money every single year I know that Dave money every single year I know that Dave Ramsey tells you not to use credit cards Ramsey tells you not to use credit cards Ramsey tells you not to use credit cards and I have a lot of respect for Dave and I have a lot of respect for Dave and I have a lot of respect for Dave because he's an OG in the personal because he's an OG in the personal because he's an OG in the personal finance space I don't agree with finance space I don't agree with finance space I don't agree with everything he teaches but I got respect everything he teaches but I got respect everything he teaches but I got respect from the guy but I've been able to be from the guy but I've been able to be from the guy but I've been able to be responsible with my credit card use and responsible with my credit card use and responsible with my credit card use and if you were able to be responsible when if you were able to be responsible when if you were able to be responsible when it caused you or credit cards and pay it caused you or credit cards and pay it caused you or credit cards and pay the balance off every single month then the balance off every single month then the balance off every single month then you can reap the benefits of the rewards you can reap the benefits of the rewards you can reap the benefits of the rewards from those credit cards as of today I from those credit cards as of today I from those credit cards as of today I make roughly dollars per year from make roughly dollars per year from make roughly dollars per year from my credit card use that's more money I'm my credit card use that's more money I'm my credit card use that's more money I'm making for basically buying things that making for basically buying things that making for basically buying things that I would have already been buying I'll be I would have already been buying I'll be I would have already been buying I'll be doing more credit card hacking this year doing more credit card hacking this year doing more credit card hacking this year so that's $ most likely we turn it so that's $ most likely we turn it so that's $ most likely we turn it into things like rewards towards airfare into things like rewards towards airfare into things like rewards towards airfare but it's still the same idea if you but it's still the same idea if you but it's still the same idea if you don't feel comfortable using a credit don't feel comfortable using a credit don't feel comfortable using a credit card then don't do it but if you feel card then don't do it but if you feel card then don't do it but if you feel like you're ready and you could handle like you're ready and you could handle like you're ready and you could handle it then quit leaving money on the table it then quit leaving money on the table it then quit leaving money on the table and go get a credit card with really and go get a credit card with really and go get a credit card with really good rewards don't forget to check out good rewards don't forget to check out good rewards don't forget to check out the description down below for more the description down below for more the description down below for more playlist to help you out with all of playlist to help you out with all of playlist to help you out with all of your personal finance needs let me know your personal finance needs let me know your personal finance needs let me know in the comments down below what you do in the comments down below what you do in the comments down below what you do to increase your savings rate or what to increase your savings rate or what to increase your savings rate or what you would like to do I'd be willing to you would like to do I'd be willing to you would like to do I'd be willing to entertain more ideas if you have entertain more ideas if you have entertain more ideas if you have that I can use don't forget to Hulk that I can use don't forget to Hulk that I can use don't forget to Hulk smash that thumbs up button to support smash that thumbs up button to support smash that thumbs up button to support the channel it helps me out a lot and I the channel it helps me out a lot and I the channel it helps me out a lot and I appreciate you for it if you want more appreciate you for it if you want more appreciate you for it if you want more personal finance videos just like this personal finance videos just like this personal finance videos just like this one then hit that subscribe button in one then hit that subscribe button in one then hit that subscribe button in the notification Bell so YouTube knows the notification Bell so YouTube knows the notification Bell so YouTube knows to deliver them to you make sure to pick to deliver them to you make sure to pick to deliver them to you make sure to pick up your free copy of the debt free prep up your free copy of the debt free prep up your free copy of the debt free prep workbook that I made just for you link workbook that I made just for you link workbook that I made just for you link is in the description I'll see you in is in the description I'll see you in is in the description I'll see you in the next one friends adios WEBVTT Kind: captions Language: en we retired at the age of and were the we retired at the age of and were the we retired at the age of and were the youngest people in Canada to do so and youngest people in Canada to do so and youngest people in Canada to do so and we just turned so we've been retired we just turned so we've been retired we just turned so we've been retired for a couple years and traveling around for a couple years and traveling around for a couple years and traveling around the world highly recommended instead of the world highly recommended instead of the world highly recommended instead of taking on a massive mortgage and buying taking on a massive mortgage and buying taking on a massive mortgage and buying an expensive house like everyone else we an expensive house like everyone else we an expensive house like everyone else we rented and invested instead in index rented and invested instead in index rented and invested instead in index funds so the money that we didn't have funds so the money that we didn't have funds so the money that we didn't have to spend in all these expensive housing to spend in all these expensive housing to spend in all these expensive housing costs like property taxes and costs like property taxes and costs like property taxes and maintenance we put that into a portfolio maintenance we put that into a portfolio maintenance we put that into a portfolio and it over time it grew enough that the and it over time it grew enough that the and it over time it grew enough that the passive income allows us to travel passive income allows us to travel passive income allows us to travel forever and not have to learn anymore forever and not have to learn anymore forever and not have to learn anymore Wow Canada's youngest retirees quite Wow Canada's youngest retirees quite Wow Canada's youngest retirees quite extraordinary but I am I'm inspired in extraordinary but I am I'm inspired in extraordinary but I am I'm inspired in age and I'm inspired so the question is age and I'm inspired so the question is age and I'm inspired so the question is how do you get to retire early how do you get to retire early how do you get to retire early a recent study suggests in years time a recent study suggests in years time a recent study suggests in years time we'll each have to live off a pension of we'll each have to live off a pension of we'll each have to live off a pension of just pounds a month I'm out to meet just pounds a month I'm out to meet just pounds a month I'm out to meet the people super saving now to reach the people super saving now to reach the people super saving now to reach retirement much sooner and my first stop retirement much sooner and my first stop retirement much sooner and my first stop is this man former accountant Barney who is this man former accountant Barney who is this man former accountant Barney who retired at the tender age of Barney retired at the tender age of Barney retired at the tender age of Barney get to the allele yeah shall we and he's get to the allele yeah shall we and he's get to the allele yeah shall we and he's agreed to give me his exclusive guide of agreed to give me his exclusive guide of agreed to give me his exclusive guide of how I and you could do the same so how I and you could do the same so how I and you could do the same so Barney how much money do I actually need Barney how much money do I actually need Barney how much money do I actually need to retire all you need and is times to retire all you need and is times to retire all you need and is times your annual spending and then you're your annual spending and then you're your annual spending and then you're financially independent so if you spend financially independent so if you spend financially independent so if you spend twenty five thousand pounds a year then twenty five thousand pounds a year then twenty five thousand pounds a year then you need six hundred and twenty five you need six hundred and twenty five you need six hundred and twenty five thousand pounds to be financially thousand pounds to be financially thousand pounds to be financially independent and never have to work again independent and never have to work again independent and never have to work again saving twenty five times my annual saving twenty five times my annual saving twenty five times my annual expenditure is that even possible and expenditure is that even possible and expenditure is that even possible and how long is this going to take me if you how long is this going to take me if you how long is this going to take me if you can save fifty percent of your income it can save fifty percent of your income it can save fifty percent of your income it will take you about years to go from will take you about years to go from will take you about years to go from broke to enough money never having to broke to enough money never having to broke to enough money never having to work again but if you can get your work again but if you can get your work again but if you can get your savings rate up to a really amazing savings rate up to a really amazing savings rate up to a really amazing seventy-five percent and then the amount seventy-five percent and then the amount seventy-five percent and then the amount of time it takes is only seven years you of time it takes is only seven years you of time it takes is only seven years you know that film A Beautiful Mind with know that film A Beautiful Mind with know that film A Beautiful Mind with Russell Crowe and the numbers flying Russell Crowe and the numbers flying Russell Crowe and the numbers flying around around around got that at the moment Nicola has got that at the moment Nicola has got that at the moment Nicola has created her very own : diet for her created her very own : diet for her created her very own : diet for her finances Nicola hi heard you're doing a finances Nicola hi heard you're doing a finances Nicola hi heard you're doing a big family shop thought I'd come and big family shop thought I'd come and big family shop thought I'd come and lend a hand yeah we just finished a lend a hand yeah we just finished a lend a hand yeah we just finished a toenail grease yeah thank you toenail grease yeah thank you toenail grease yeah thank you this is your family shop for the entire this is your family shop for the entire this is your family shop for the entire week yes everything all right so I've week yes everything all right so I've week yes everything all right so I've been trying to figure out what the five been trying to figure out what the five been trying to figure out what the five to spending diet might mean so you do to spending diet might mean so you do to spending diet might mean so you do things for five days and you can benefit things for five days and you can benefit things for five days and you can benefit three days I don't spend anything for three days I don't spend anything for three days I don't spend anything for five don't man five don't man five don't man this is what you do yeah how do you stay this is what you do yeah how do you stay this is what you do yeah how do you stay alive plumbing though why are you doing alive plumbing though why are you doing alive plumbing though why are you doing it what's the long-term time and we want it what's the long-term time and we want it what's the long-term time and we want to retire early one time a so Nicola to retire early one time a so Nicola to retire early one time a so Nicola and Dave want to retire years early and Dave want to retire years early and Dave want to retire years early and do it they don't spend any money and do it they don't spend any money and do it they don't spend any money five days a week they're saving five days a week they're saving five days a week they're saving thousand pounds a year which is a thousand pounds a year which is a thousand pounds a year which is a massive percent of their income so massive percent of their income so massive percent of their income so just how hard is it not to spend just how hard is it not to spend just how hard is it not to spend anything in the name of financial anything in the name of financial anything in the name of financial independence research I'm going to give independence research I'm going to give independence research I'm going to give the money Dyer to go which mean okay so the money Dyer to go which mean okay so the money Dyer to go which mean okay so it's lunchtime ordinarily I would pop it's lunchtime ordinarily I would pop it's lunchtime ordinarily I would pop out to the shops get a nice sandwich or out to the shops get a nice sandwich or out to the shops get a nice sandwich or a lovely bit of sushi but I can't spend a lovely bit of sushi but I can't spend a lovely bit of sushi but I can't spend any money so I'm going to make do with any money so I'm going to make do with any money so I'm going to make do with what's in the house which is peanut what's in the house which is peanut what's in the house which is peanut butter on a sweet potato and a hunk of butter on a sweet potato and a hunk of butter on a sweet potato and a hunk of old bread I am already out of loo roll I thought be honest so I could go for a I thought be honest so I could go for a I thought be honest so I could go for a chicken burger right now so it turns out chicken burger right now so it turns out chicken burger right now so it turns out that if you don't spend any money you that if you don't spend any money you that if you don't spend any money you have to be quite organized and if you have to be quite organized and if you have to be quite organized and if you don't do that then you will probably end don't do that then you will probably end don't do that then you will probably end up defrosting a random tub of orange up defrosting a random tub of orange up defrosting a random tub of orange gunk from your freezer and hoping that gunk from your freezer and hoping that gunk from your freezer and hoping that it doesn't kill you completely defeated it doesn't kill you completely defeated it doesn't kill you completely defeated I couldn't even manage hours rec you WEBVTT Kind: captions Language: en what's up guys nature here and today I what's up guys nature here and today I what's up guys nature here and today I want to talk to you about retiring early want to talk to you about retiring early want to talk to you about retiring early without financial independence that's without financial independence that's without financial independence that's hitting fire but without by now you may hitting fire but without by now you may hitting fire but without by now you may be sitting there saying that's be sitting there saying that's be sitting there saying that's ridiculous you cannot retire early ridiculous you cannot retire early ridiculous you cannot retire early without having the money to do so the without having the money to do so the without having the money to do so the math literally doesn't work well I'm not math literally doesn't work well I'm not math literally doesn't work well I'm not saying I'd completely disagree with you saying I'd completely disagree with you saying I'd completely disagree with you here but I kind of am see every day here but I kind of am see every day here but I kind of am see every day Hannah and I wake up in this Airstream Hannah and I wake up in this Airstream Hannah and I wake up in this Airstream parked wherever we want and have parked wherever we want and have parked wherever we want and have complete control over our schedule of complete control over our schedule of complete control over our schedule of where we go what we do and how we do it where we go what we do and how we do it where we go what we do and how we do it that kind of sounds like my dream that kind of sounds like my dream that kind of sounds like my dream retirement well stay tuned because I'm retirement well stay tuned because I'm retirement well stay tuned because I'm going to show you the four steps that we going to show you the four steps that we going to show you the four steps that we took to do this and how you can do it took to do this and how you can do it took to do this and how you can do it too okay so out of the gate here no we are okay so out of the gate here no we are okay so out of the gate here no we are not actually retired no we have not hit not actually retired no we have not hit not actually retired no we have not hit financial independence and yes we do financial independence and yes we do financial independence and yes we do still have to work in order to live I still have to work in order to live I still have to work in order to live I just needed to say all that before the just needed to say all that before the just needed to say all that before the internet retirement police come after me internet retirement police come after me internet retirement police come after me now before I jump into my process first now before I jump into my process first now before I jump into my process first let me explain the difference between let me explain the difference between let me explain the difference between what need typical pacify looks like what need typical pacify looks like what need typical pacify looks like versus what we're doing have a fire versus what we're doing have a fire versus what we're doing have a fire movement started decades ago with folks movement started decades ago with folks movement started decades ago with folks like Vicki Robin the author of your like Vicki Robin the author of your like Vicki Robin the author of your money or your life and then it became money or your life and then it became money or your life and then it became goober popular as bloggers like early goober popular as bloggers like early goober popular as bloggers like early retirement extreme and mister money retirement extreme and mister money retirement extreme and mister money mustache started sharing their journeys mustache started sharing their journeys mustache started sharing their journeys and the movement has taken on a whole and the movement has taken on a whole and the movement has taken on a whole new stage of growth but the recent new stage of growth but the recent new stage of growth but the recent release of the documentary playing with release of the documentary playing with release of the documentary playing with fire now as the movement has picked up fire now as the movement has picked up fire now as the movement has picked up speed one of the common messages you'll speed one of the common messages you'll speed one of the common messages you'll notice on the online forums and groups notice on the online forums and groups notice on the online forums and groups is this idea of Phi faster people is this idea of Phi faster people is this idea of Phi faster people sharing and comparing their savings sharing and comparing their savings sharing and comparing their savings rates and almost wearing their years rates and almost wearing their years rates and almost wearing their years until Phi as some sort of badge of honor until Phi as some sort of badge of honor until Phi as some sort of badge of honor the traditional path to Phi often looks the traditional path to Phi often looks the traditional path to Phi often looks like this delay gratification and like this delay gratification and like this delay gratification and enjoyment through a combination of fur enjoyment through a combination of fur enjoyment through a combination of fur gala T and increasing your income to gala T and increasing your income to gala T and increasing your income to increase your savings rate as much as increase your savings rate as much as increase your savings rate as much as possible and speed up the timeline for possible and speed up the timeline for possible and speed up the timeline for hitting Phi then once you're there you hitting Phi then once you're there you hitting Phi then once you're there you can quit the job you hate and have can quit the job you hate and have can quit the job you hate and have complete freedom to live and do as you complete freedom to live and do as you complete freedom to live and do as you please thus retiring early now there's please thus retiring early now there's please thus retiring early now there's two problems with this and the first one two problems with this and the first one two problems with this and the first one is pretty obvious life is not very fun is pretty obvious life is not very fun is pretty obvious life is not very fun during that middle part of the journey during that middle part of the journey during that middle part of the journey now if you've got a job that you love now if you've got a job that you love now if you've got a job that you love and also makes tons of money then great and also makes tons of money then great and also makes tons of money then great you win but the reality is that for many you win but the reality is that for many you win but the reality is that for many of us the increasing our income portion of us the increasing our income portion of us the increasing our income portion goes hand-in-hand with a job that we goes hand-in-hand with a job that we goes hand-in-hand with a job that we despise Zac over at four pillar freedom despise Zac over at four pillar freedom despise Zac over at four pillar freedom did an incredible job of breaking down did an incredible job of breaking down did an incredible job of breaking down and showing how savings rate impacts and showing how savings rate impacts and showing how savings rate impacts your years to Phi even at a % savings your years to Phi even at a % savings your years to Phi even at a % savings rate it will still take you and a rate it will still take you and a rate it will still take you and a half years to get there and if you're in half years to get there and if you're in half years to get there and if you're in a situation like what I used to be in a situation like what I used to be in a situation like what I used to be in where you're at a job that you can where you're at a job that you can where you're at a job that you can barely breathe at the idea of staying barely breathe at the idea of staying barely breathe at the idea of staying there that long is sickening the second there that long is sickening the second there that long is sickening the second not so obvious problem is that you need not so obvious problem is that you need not so obvious problem is that you need to find a way to enjoy your life as you to find a way to enjoy your life as you to find a way to enjoy your life as you go you're not gonna magically have a go you're not gonna magically have a go you're not gonna magically have a life that you love the second that you life that you love the second that you life that you love the second that you hit Phi rolling over from $ way from hit Phi rolling over from $ way from hit Phi rolling over from $ way from financial independence to actually financial independence to actually financial independence to actually having financial independence doesn't having financial independence doesn't having financial independence doesn't completely change your life you still completely change your life you still completely change your life you still have to find a sense of purpose and have to find a sense of purpose and have to find a sense of purpose and meaning and meaning and meaning and Phil meant even if you're able to retire Phil meant even if you're able to retire Phil meant even if you're able to retire early which is why I advocate for a early which is why I advocate for a early which is why I advocate for a different path now it wasn't long after different path now it wasn't long after different path now it wasn't long after we found out about the fire movement we found out about the fire movement we found out about the fire movement that it became pretty clear that the that it became pretty clear that the that it became pretty clear that the traditional fire path was not going to traditional fire path was not going to traditional fire path was not going to work for us but there were so a lot that work for us but there were so a lot that work for us but there were so a lot that was really appealing about fire so we was really appealing about fire so we was really appealing about fire so we decided to ask a different question what decided to ask a different question what decided to ask a different question what if we didn't want to retire if we didn't want to retire if we didn't want to retire what if we built a life that we didn't what if we built a life that we didn't what if we built a life that we didn't want to retire from if we go back to the want to retire from if we go back to the want to retire from if we go back to the graph that we drew a second ago is there graph that we drew a second ago is there graph that we drew a second ago is there a line that looks more like this is a line that looks more like this is a line that looks more like this is there a way to pursue Phi and increase there a way to pursue Phi and increase there a way to pursue Phi and increase our enjoyment along the way it seems our enjoyment along the way it seems our enjoyment along the way it seems obvious that we should try and balance obvious that we should try and balance obvious that we should try and balance our daily enjoyment of life with still our daily enjoyment of life with still our daily enjoyment of life with still prepping for the future and reaching prepping for the future and reaching prepping for the future and reaching towards Phi but it's not obvious at all towards Phi but it's not obvious at all towards Phi but it's not obvious at all when you're stuck in this Phi faster when you're stuck in this Phi faster when you're stuck in this Phi faster faster mentality and on top of that when faster mentality and on top of that when faster mentality and on top of that when you start following a path that's now you start following a path that's now you start following a path that's now referred to as slow Phi you end up referred to as slow Phi you end up referred to as slow Phi you end up making decisions that are in direct making decisions that are in direct making decisions that are in direct opposition of that Phi faster mentality opposition of that Phi faster mentality opposition of that Phi faster mentality like quitting your current job to do like quitting your current job to do like quitting your current job to do something else and taking a pay cut in something else and taking a pay cut in something else and taking a pay cut in the process or getting another dog with the process or getting another dog with the process or getting another dog with regular monthly expenses when you regular monthly expenses when you regular monthly expenses when you already have one dog and two cats both already have one dog and two cats both already have one dog and two cats both decisions that Hanna and I have made and decisions that Hanna and I have made and decisions that Hanna and I have made and these decisions are counterproductive these decisions are counterproductive these decisions are counterproductive and helping us hit five faster but they and helping us hit five faster but they and helping us hit five faster but they greatly increase our enjoyment of life greatly increase our enjoyment of life greatly increase our enjoyment of life in the process luckily we're not the in the process luckily we're not the in the process luckily we're not the only ones picking up on this Jessica only ones picking up on this Jessica only ones picking up on this Jessica over at defiant ears recently wrote an over at defiant ears recently wrote an over at defiant ears recently wrote an article on slow Phi and came up with the article on slow Phi and came up with the article on slow Phi and came up with the definition that I really liked definition that I really liked definition that I really liked she said slow Phi is when someone she said slow Phi is when someone she said slow Phi is when someone utilizes the incremental financial utilizes the incremental financial utilizes the incremental financial freedom they gain along the journey to freedom they gain along the journey to freedom they gain along the journey to financial independence to live happier financial independence to live happier financial independence to live happier and healthier lives do better work and and healthier lives do better work and and healthier lives do better work and build strong relationships that is build strong relationships that is build strong relationships that is exactly what Hannah and I are doing and exactly what Hannah and I are doing and exactly what Hannah and I are doing and what I think that you should consider what I think that you should consider what I think that you should consider [Music] all right now at this point I know what all right now at this point I know what all right now at this point I know what you're thinking yeah yeah yeah I get it you're thinking yeah yeah yeah I get it you're thinking yeah yeah yeah I get it don't point out pursuing Phi enjoy the don't point out pursuing Phi enjoy the don't point out pursuing Phi enjoy the journey daily since something about a journey daily since something about a journey daily since something about a four step process earlier getting rid of four step process earlier getting rid of four step process earlier getting rid of all this fluffy stuff what is that give all this fluffy stuff what is that give all this fluffy stuff what is that give me give me the meat well I'm glad you me give me the meat well I'm glad you me give me the meat well I'm glad you asked asked asked step one is to identify why you want to step one is to identify why you want to step one is to identify why you want to hit financial independence in the first hit financial independence in the first hit financial independence in the first place like why are you watching this place like why are you watching this place like why are you watching this video right now what is it about video right now what is it about video right now what is it about financial independence that's appealing financial independence that's appealing financial independence that's appealing to you and I don't mean just freedom I to you and I don't mean just freedom I to you and I don't mean just freedom I mean to write down a big list brainstorm mean to write down a big list brainstorm mean to write down a big list brainstorm as much as you can of all the values as much as you can of all the values as much as you can of all the values that five will bring you once you get that five will bring you once you get that five will bring you once you get there this list could include freedom to there this list could include freedom to there this list could include freedom to pursue your hobbies more time with your pursue your hobbies more time with your pursue your hobbies more time with your family traveling more than two weeks of family traveling more than two weeks of family traveling more than two weeks of vacation a year control over your day if vacation a year control over your day if vacation a year control over your day if and when you'll work more time for and when you'll work more time for and when you'll work more time for volunteering less stress about money volunteering less stress about money volunteering less stress about money ability pursue work that you love with ability pursue work that you love with ability pursue work that you love with or without compensation an opportunity or without compensation an opportunity or without compensation an opportunity to move and have geographical to move and have geographical to move and have geographical flexibility or maybe just general life flexibility or maybe just general life flexibility or maybe just general life flexibility but your list needs to look flexibility but your list needs to look flexibility but your list needs to look different than mine that's the point different than mine that's the point different than mine that's the point this is Wi-Fi matters to you okay the this is Wi-Fi matters to you okay the this is Wi-Fi matters to you okay the second step here is to circle the top second step here is to circle the top second step here is to circle the top three to five values that matter the three to five values that matter the three to five values that matter the most to you use the Pareto principle most to you use the Pareto principle most to you use the Pareto principle here which % of these values would here which % of these values would here which % of these values would bring you like eighty percent of the bring you like eighty percent of the bring you like eighty percent of the enjoyment which ones do you care about enjoyment which ones do you care about enjoyment which ones do you care about the most for us some of the most the most for us some of the most the most for us some of the most important ones are time with family important ones are time with family important ones are time with family general life flexibility the ability to general life flexibility the ability to general life flexibility the ability to move change directions without being move change directions without being move change directions without being tied down Travel not being limited to tied down Travel not being limited to tied down Travel not being limited to vacation days from our boss and control vacation days from our boss and control vacation days from our boss and control over our work day and doing work that we over our work day and doing work that we over our work day and doing work that we strongly care about okay the third step strongly care about okay the third step strongly care about okay the third step is to reverse engineer how you can get is to reverse engineer how you can get is to reverse engineer how you can get some of these values without hitting some of these values without hitting some of these values without hitting five what can you do right now they can five what can you do right now they can five what can you do right now they can put you on this path to achieving most put you on this path to achieving most put you on this path to achieving most of these values and one two or three of these values and one two or three of these values and one two or three years without having to wait the full years without having to wait the full years without having to wait the full years or more tip we chose moving into years or more tip we chose moving into years or more tip we chose moving into an RV full-time and pursuing freelance an RV full-time and pursuing freelance an RV full-time and pursuing freelance work and that's allowed us to get the work and that's allowed us to get the work and that's allowed us to get the vast majority of the benefits that we vast majority of the benefits that we vast majority of the benefits that we cared about much quicker than usual it's cared about much quicker than usual it's cared about much quicker than usual it's allowed us to spend more time with allowed us to spend more time with allowed us to spend more time with family whenever we want travel whenever family whenever we want travel whenever family whenever we want travel whenever we want do work in a field that we care we want do work in a field that we care we want do work in a field that we care about on our own schedule and have about on our own schedule and have about on our own schedule and have general life flexibility in case we want general life flexibility in case we want general life flexibility in case we want to change our minds and it only took us to change our minds and it only took us to change our minds and it only took us a couple of years from the moment a couple of years from the moment a couple of years from the moment heard about the fire movement to heard about the fire movement to heard about the fire movement to actually building this life that we love actually building this life that we love actually building this life that we love and the good news is that there's tons and the good news is that there's tons and the good news is that there's tons of ways to do this depending on the of ways to do this depending on the of ways to do this depending on the values that you want the most you don't values that you want the most you don't values that you want the most you don't have to do it the way that we've done it have to do it the way that we've done it have to do it the way that we've done it you could be like my friend Shawn Marin you could be like my friend Shawn Marin you could be like my friend Shawn Marin from - frugal dudes who was able to take from - frugal dudes who was able to take from - frugal dudes who was able to take his job remote he likes his day job but his job remote he likes his day job but his job remote he likes his day job but he wanted to work remotely to give him he wanted to work remotely to give him he wanted to work remotely to give him and his family the ability to move and his family the ability to move and his family the ability to move wherever they like or you could be like wherever they like or you could be like wherever they like or you could be like Angela from tread lightly retire early Angela from tread lightly retire early Angela from tread lightly retire early who down shifted to work part-time yes who down shifted to work part-time yes who down shifted to work part-time yes it decreased her income but it it decreased her income but it it decreased her income but it significantly improved her quality of significantly improved her quality of significantly improved her quality of life this could also mean focusing on life this could also mean focusing on life this could also mean focusing on your time outside of work to truly your time outside of work to truly your time outside of work to truly optimize it and make sure you're optimize it and make sure you're optimize it and make sure you're squeezing as much out of it as possible squeezing as much out of it as possible squeezing as much out of it as possible this might mean downsizing your home so this might mean downsizing your home so this might mean downsizing your home so that it's less I take care of which then that it's less I take care of which then that it's less I take care of which then would free you up to volunteer or spend would free you up to volunteer or spend would free you up to volunteer or spend more time pursuing the hobbies that you more time pursuing the hobbies that you more time pursuing the hobbies that you love I'm not sure what this looks like love I'm not sure what this looks like love I'm not sure what this looks like for you that depends on what it is that for you that depends on what it is that for you that depends on what it is that you want but I'm confident that if you you want but I'm confident that if you you want but I'm confident that if you really stretch your mind here you can really stretch your mind here you can really stretch your mind here you can start pursuing these things much sooner start pursuing these things much sooner start pursuing these things much sooner rather than later rather than later rather than later speaking of pursuing these things that speaking of pursuing these things that speaking of pursuing these things that brings us to step number four which is brings us to step number four which is brings us to step number four which is to eliminate everything that doesn't to eliminate everything that doesn't to eliminate everything that doesn't help you achieve them this is where in help you achieve them this is where in help you achieve them this is where in the traditional fire path we start the traditional fire path we start the traditional fire path we start cutting expenses but it's much easier cutting expenses but it's much easier cutting expenses but it's much easier now because we've clearly identified why now because we've clearly identified why now because we've clearly identified why we're trying to hit fire in the first we're trying to hit fire in the first we're trying to hit fire in the first place place place the values that are the most important the values that are the most important the values that are the most important to us and the direction that we're going to us and the direction that we're going to us and the direction that we're going in so when it comes to downsizing your in so when it comes to downsizing your in so when it comes to downsizing your home or biking versus driving your car home or biking versus driving your car home or biking versus driving your car or going out to eat less you can simply or going out to eat less you can simply or going out to eat less you can simply look at the values that those purchases look at the values that those purchases look at the values that those purchases bring and stack them up against the bring and stack them up against the bring and stack them up against the values that you circled earlier and said values that you circled earlier and said values that you circled earlier and said were the most important to you and if were the most important to you and if were the most important to you and if these purchases and their values don't these purchases and their values don't these purchases and their values don't support the ones that are the most support the ones that are the most support the ones that are the most important then cut your spending and important then cut your spending and important then cut your spending and take the money and use it to pursue Phi take the money and use it to pursue Phi take the money and use it to pursue Phi or use it in a different way to help you or use it in a different way to help you or use it in a different way to help you get those values sooner now if you've get those values sooner now if you've get those values sooner now if you've been paying attention these steps sort been paying attention these steps sort been paying attention these steps sort of look like flower of look like flower of look like flower but if free doesn't really make a whole but if free doesn't really make a whole but if free doesn't really make a whole lot of sense lot of sense lot of sense luckily Hannah who is much more clever luckily Hannah who is much more clever luckily Hannah who is much more clever than I am was like well what if we just than I am was like well what if we just than I am was like well what if we just stick a little m and a little ear ight stick a little m and a little ear ight stick a little m and a little ear ight there then we get I'm free which is there then we get I'm free which is there then we get I'm free which is ultimately what we care about anyways ultimately what we care about anyways ultimately what we care about anyways right it's the financial freedom that right it's the financial freedom that right it's the financial freedom that Phi brings us not financial independence Phi brings us not financial independence Phi brings us not financial independence in and of itself perhaps our journey of in and of itself perhaps our journey of in and of itself perhaps our journey of focusing on freedom rather than Phi is focusing on freedom rather than Phi is focusing on freedom rather than Phi is best summed up in a tweet from Zach from best summed up in a tweet from Zach from best summed up in a tweet from Zach from four-pillar freedom that blogger that I four-pillar freedom that blogger that I four-pillar freedom that blogger that I mentioned mentioned mentioned earlier he said overrated metric how earlier he said overrated metric how earlier he said overrated metric how fast you're able to reach financial fast you're able to reach financial fast you're able to reach financial independence underrated metric how independence underrated metric how independence underrated metric how enjoyable your journey is along the way enjoyable your journey is along the way enjoyable your journey is along the way to financial independence to financial independence to financial independence so can you retire without hitting buy so can you retire without hitting buy so can you retire without hitting buy well technical retirement no you can't well technical retirement no you can't well technical retirement no you can't you do have to have the money to retire you do have to have the money to retire you do have to have the money to retire but can you get like % of the benefits but can you get like % of the benefits but can you get like % of the benefits from retirement without achieving PI from retirement without achieving PI from retirement without achieving PI absolutely and that's what I want you to absolutely and that's what I want you to absolutely and that's what I want you to think about so that's it guys if you think about so that's it guys if you think about so that's it guys if you liked this video please hit the like liked this video please hit the like liked this video please hit the like button and subscribe to this channel for button and subscribe to this channel for button and subscribe to this channel for more videos just like it as always more videos just like it as always more videos just like it as always remember I can teach you about financial remember I can teach you about financial remember I can teach you about financial independence but I can't make you chase independence but I can't make you chase independence but I can't make you chase after it the choice is yours I'll see after it the choice is yours I'll see after it the choice is yours I'll see you all next time [Music] WEBVTT Kind: captions Language: en [Music] [Music] [Music] anyone with sort of middle-income salary anyone with sort of middle-income salary anyone with sort of middle-income salary can definitely retire earlier no doubt can definitely retire earlier no doubt can definitely retire earlier no doubt about that about that about that [Music] [Music] [Music] differentiate between wants and needs so differentiate between wants and needs so differentiate between wants and needs so that you can invest for your future look that you can invest for your future look that you can invest for your future look how much I'm spending at Starbucks or how much I'm spending at Starbucks or how much I'm spending at Starbucks or look how much I'm spending on taxi if I look how much I'm spending on taxi if I look how much I'm spending on taxi if I do cut back on those areas that gives me do cut back on those areas that gives me do cut back on those areas that gives me more money to invest for my future it's more money to invest for my future it's more money to invest for my future it's like a snowball effect where the money like a snowball effect where the money like a snowball effect where the money starts to calm down and grow if you starts to calm down and grow if you starts to calm down and grow if you start late as a saver you have to save start late as a saver you have to save start late as a saver you have to save so much more money to end up with the so much more money to end up with the so much more money to end up with the same result same result same result roughly every six years you wait you roughly every six years you wait you roughly every six years you wait you have to save twice as much per year to have to save twice as much per year to have to save twice as much per year to end up with the same amount at say age end up with the same amount at say age end up with the same amount at say age the less you pay and investment fees the the less you pay and investment fees the the less you pay and investment fees the more money that you will make my more money that you will make my more money that you will make my portfolio costs about . percent per portfolio costs about . percent per portfolio costs about . percent per year we might die early so we save all year we might die early so we save all year we might die early so we save all the money today hoping to retire you the money today hoping to retire you the money today hoping to retire you know early and live that lifestyle if we know early and live that lifestyle if we know early and live that lifestyle if we don't then we have not lived at all by don't then we have not lived at all by don't then we have not lived at all by the time our kids grow up you know and the time our kids grow up you know and the time our kids grow up you know and we say it's only then when I retire I we say it's only then when I retire I we say it's only then when I retire I want to spend meaningful time with them want to spend meaningful time with them want to spend meaningful time with them we might have missed it already there is we might have missed it already there is we might have missed it already there is a very interesting study done by us is a very interesting study done by us is a very interesting study done by us is called the mindscape study they found called the mindscape study they found called the mindscape study they found out there two years before retirement out there two years before retirement out there two years before retirement people are the most excited the other people are the most excited the other people are the most excited the other happiest during this stage of their life happiest during this stage of their life happiest during this stage of their life because they are really looking forward because they are really looking forward because they are really looking forward to retirement but the year when they to retirement but the year when they to retirement but the year when they retire they are actually the least happy retire they are actually the least happy retire they are actually the least happy if you're used to operating at a certain if you're used to operating at a certain if you're used to operating at a certain pace having no plan will actually pace having no plan will actually pace having no plan will actually frustration which leads to stress frustration which leads to stress frustration which leads to stress systole you have a higher probability of systole you have a higher probability of systole you have a higher probability of a heart attack after you retire in the a heart attack after you retire in the a heart attack after you retire in the first year or two after you are thus first year or two after you are thus first year or two after you are thus near fully paid house you must have a near fully paid house you must have a near fully paid house you must have a place to stay the second thing a person place to stay the second thing a person place to stay the second thing a person must have is an appropriate medical must have is an appropriate medical must have is an appropriate medical insurance the third thing that they must insurance the third thing that they must insurance the third thing that they must have a source of income they were last have a source of income they were last have a source of income they were last time for as long as the time for as long as the time for as long as the [Music] you you WEBVTT Kind: captions Language: en what's up you guys it's graham here so what's up you guys it's graham here so what's up you guys it's graham here so the other week i posted a video about the other week i posted a video about the other week i posted a video about how much money you should save by every how much money you should save by every how much money you should save by every age and in that video age and in that video age and in that video i go in detail about how much money you i go in detail about how much money you i go in detail about how much money you should be putting away every single year should be putting away every single year should be putting away every single year in order to make sure you're on track to in order to make sure you're on track to in order to make sure you're on track to retire by . but i made a mistake retire by . but i made a mistake retire by . but i made a mistake because so many of you begin commenting because so many of you begin commenting because so many of you begin commenting that that that years old is too long to wait and you years old is too long to wait and you years old is too long to wait and you want to be able to retire want to be able to retire want to be able to retire sooner than that because you could be sooner than that because you could be sooner than that because you could be dead tomorrow so yeah when enough people dead tomorrow so yeah when enough people dead tomorrow so yeah when enough people comment wanting to retire way sooner comment wanting to retire way sooner comment wanting to retire way sooner than that than that than that then you bet i'll make a video on it and then you bet i'll make a video on it and then you bet i'll make a video on it and i'll go over exactly what you need to do i'll go over exactly what you need to do i'll go over exactly what you need to do to be able to retire by years old and to be able to retire by years old and to be able to retire by years old and i'm going to be telling you all of this i'm going to be telling you all of this i'm going to be telling you all of this coming from the perspective of someone coming from the perspective of someone coming from the perspective of someone who became completely financially who became completely financially who became completely financially independent in their late s independent in their late s independent in their late s in fact i just recently turned and in fact i just recently turned and in fact i just recently turned and i'm super fortunate to be in a position i'm super fortunate to be in a position i'm super fortunate to be in a position today where if i were to stop working today where if i were to stop working today where if i were to stop working i could cover my lifestyle indefinitely i could cover my lifestyle indefinitely i could cover my lifestyle indefinitely from my investments and continue to grow from my investments and continue to grow from my investments and continue to grow my net worth at the same time so yeah my net worth at the same time so yeah my net worth at the same time so yeah none of this is theory and i'm not going none of this is theory and i'm not going none of this is theory and i'm not going to be talking about any bogus to be talking about any bogus to be talking about any bogus hypotheticals from someone who's never hypotheticals from someone who's never hypotheticals from someone who's never done what they're talking about done what they're talking about done what they're talking about i'll just go over the reality of being i'll just go over the reality of being i'll just go over the reality of being able to retire by exactly what you'll able to retire by exactly what you'll able to retire by exactly what you'll need to do to get there and how it helps need to do to get there and how it helps need to do to get there and how it helps to smash the like button for the youtube to smash the like button for the youtube to smash the like button for the youtube algorithm see that is one of the biggest algorithm see that is one of the biggest algorithm see that is one of the biggest mistakes and oversights that people mistakes and oversights that people mistakes and oversights that people don't realize about early retirement don't realize about early retirement don't realize about early retirement is that it all begins with a blue light is that it all begins with a blue light is that it all begins with a blue light button so once you do that button so once you do that button so once you do that congratulations you're one step closer congratulations you're one step closer congratulations you're one step closer to early retirement and with that said to early retirement and with that said to early retirement and with that said let's begin the video but really quick i let's begin the video but really quick i let's begin the video but really quick i want to thank today's video sponsor want to thank today's video sponsor want to thank today's video sponsor morningbrew they're a daily newsletter morningbrew they're a daily newsletter morningbrew they're a daily newsletter that gets sent that gets sent that gets sent out every monday through saturday and it out every monday through saturday and it out every monday through 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wake up to the perfect summary to wake up to like before i got this newsletter i like before i got this newsletter i like before i got this newsletter i would have to sort through dozens of would have to sort through dozens of would have to sort through dozens of articles and websites to try to find the articles and websites to try to find the articles and websites to try to find the information that was the most relevant information that was the most relevant information that was the most relevant but now i'm able to wake up and see but now i'm able to wake up and see but now i'm able to wake up and see their newsletter waiting for me with all their newsletter waiting for me with all their newsletter waiting for me with all the most important details and outlines the most important details and outlines the most important details and outlines just neatly summarized for me to read just neatly summarized for me to read just neatly summarized for me to read this isn't just this isn't just this isn't just news either that's typically boring news either that's typically boring news either that's typically boring dense and dry but on the other hand dense and dry but on the other hand dense and dry but on the other hand warning brew injects wit relevance and warning brew injects wit relevance and warning brew injects wit relevance and information that just leaves you wanting information that just leaves you wanting information that just leaves you wanting to read more for example i learned about to read more for example i learned about to read more for example i learned about sirius xm's deal to purchase the podcast sirius xm's deal to purchase the podcast sirius xm's deal to purchase the podcast company stitcher for million dollars company stitcher for million dollars company stitcher for million dollars the biggest podcast deal in history and the biggest podcast deal in history and the biggest podcast deal in history and i also learned that chipotle is testing i also learned that chipotle is testing i also learned that chipotle is testing out a new cauliflower rice to add more out a new cauliflower rice to add more out a new cauliflower rice to add more healthy options into their mix healthy options into their mix healthy options into their mix this is a type of news that i never this is a type of news that i never this is a type of news that i never would have learned if it wasn't for would have learned if it wasn't for would have learned if it wasn't for morning brew and there's no reason not morning brew and there's no reason not morning brew and there's no reason not to join if you're interested in business to join if you're interested in business to join if you're interested in business finance tech or politics it's completely finance tech or politics it's completely finance tech or politics it's completely free and subscribing takes under free and subscribing takes under free and subscribing takes under seconds seconds seconds so click the link in the description to so click the link in the description to so click the link in the description to subscribe to morning brew today and stay subscribe to morning brew today and stay subscribe to morning brew today and stay up to date on all the best current up to date on all the best current up to date on all the best current events sent right to your email events sent right to your email events sent right to your email and of course with that said here's how and of course with that said here's how and of course with that said here's how you could use all of that information to you could use all of that information to you could use all of that information to retire early okay so first when it comes retire early okay so first when it comes retire early okay so first when it comes to being able to retire by i want to to being able to retire by i want to to being able to retire by i want to introduce introduce introduce everyone to what's known as the fire everyone to what's known as the fire everyone to what's known as the fire movement it stands for financially movement it stands for financially movement it stands for financially independent retired early and it's a independent retired early and it's a independent retired early and it's a community of people that dive into the community of people that dive into the community of people that dive into the analytics of exactly what you will need analytics of exactly what you will need analytics of exactly what you will need to be able to retire by any age this is to be able to retire by any age this is to be able to retire by any age this is a community that i've been involved in a community that i've been involved in a community that i've been involved in for about eight years now and it's for about eight years now and it's for about eight years now and it's helped me tremendously in terms of helped me tremendously in terms of helped me tremendously in terms of getting me to where i am today it's all getting me to where i am today it's all getting me to where i am today it's all about figuring out about figuring out about figuring out exactly how much money you need to exactly how much money you need to exactly how much money you need to sustain your current lifestyle without sustain your current lifestyle without sustain your current lifestyle without ever needing to work another day in your ever needing to work another day in your ever needing to work another day in your entire life and the math behind it is entire life and the math behind it is entire life and the math behind it is incredibly simple to start we have five incredibly simple to start we have five incredibly simple to start we have five different types of financial different types of financial different types of financial independence to aim for and i'm going to independence to aim for and i'm going to independence to aim for and i'm going to be outlining them each for you really be outlining them each for you really be outlining them each for you really quick because this is going to determine quick because this is going to determine quick because this is going to determine how you're going to be able to retire by how you're going to be able to retire by how you're going to be able to retire by . the first one is known as what's . the first one is known as what's . the first one is known as what's called called called lean fire this is a type of frugal lean fire this is a type of frugal lean fire this is a type of frugal financial independence that allows you financial independence that allows you financial independence that allows you to retire to retire to retire off the bare essentials without ever off the bare essentials without ever off the bare essentials without ever needing to work again you're not going needing to work again you're not going needing to work again you're not going to be retiring in luxury or glamour but to be retiring in luxury or glamour but to be retiring in luxury or glamour but you should be able to live in a small you should be able to live in a small you should be able to live in a small apartment apartment apartment drive a car eat some healthy meals at drive a car eat some healthy meals at drive a car eat some healthy meals at home and have some inexpensive home and have some inexpensive home and have some inexpensive entertainment again this is all about entertainment again this is all about entertainment again this is all about frugality as far as what it takes to get frugality as far as what it takes to get frugality as far as what it takes to get there the actual definition of lean fire there the actual definition of lean fire there the actual definition of lean fire is being able to retire off an income is being able to retire off an income is being able to retire off an income below what the average american makes of below what the average american makes of below what the average american makes of a year so typically if you're gonna be a year so typically if you're gonna be a year so typically if you're gonna be spending less than forty thousand spending less than forty thousand spending less than forty thousand dollars a year in retirement dollars a year in retirement dollars a year in retirement then lean fire is something to aim for then lean fire is something to aim for then lean fire is something to aim for the second we have what's known as the second we have what's known as the second we have what's known as barista fire this one is when you have barista fire this one is when you have barista fire this one is when you have enough enough enough saved and invested to cover most of your saved and invested to cover most of your saved and invested to cover most of your expenses but not everything so at this expenses but not everything so at this expenses but not everything so at this point if you want to quit your job you point if you want to quit your job you point if you want to quit your job you can can can and then you can take on some enjoyable and then you can take on some enjoyable and then you can take on some enjoyable part-time work on the side part-time work on the side part-time work on the side to pay for all of your other expenses as to pay for all of your other expenses as to pay for all of your other expenses as necessary like necessary like necessary like working as a barista this is all about working as a barista this is all about working as a barista this is all about being able to move on to something that being able to move on to something that being able to move on to something that might pay less money but you'll have way might pay less money but you'll have way might pay less money but you'll have way more flexibility and way more free time more flexibility and way more free time more flexibility and way more free time throughout your day to do whatever you throughout your day to do whatever you throughout your day to do whatever you want want want next number three we have a term called next number three we have a term called next number three we have a term called coast fire this is when you've saved up coast fire this is when you've saved up coast fire this is when you've saved up enough money that it's able to grow to enough money that it's able to grow to enough money that it's able to grow to an amount in the future that you could an amount in the future that you could an amount in the future that you could be completely financially independent be completely financially independent be completely financially independent off off off without any further work or involvement without any further work or involvement without any further work or involvement or investment on your end for example if or investment on your end for example if or investment on your end for example if you have enough money invested in your you have enough money invested in your you have enough money invested in your s sometimes all you got to do is just s sometimes all you got to do is just s sometimes all you got to do is just let those investments grow and then at let those investments grow and then at let those investments grow and then at some point in the future some point in the future some point in the future you're going to have enough money to be you're going to have enough money to be you're going to have enough money to be able to retire off of then number four able to retire off of then number four able to retire off of then number four we have our normal term of financial we have our normal term of financial we have our normal term of financial independence this one is our typical independence this one is our typical independence this one is our typical version of retirement that most of us version of retirement that most of us version of retirement that most of us think about it's being able to live our think about it's being able to live our think about it's being able to live our normal regular lives without ever normal regular lives without ever normal regular lives without ever needing to work again needing to work again needing to work again sure you're probably not going to be sure you're probably not going to be sure you're probably not going to be driving lamborghinis all day and going driving lamborghinis all day and going driving lamborghinis all day and going and staying at the ritz carlton every and staying at the ritz carlton every and staying at the ritz carlton every weekend but still weekend but still weekend but still you're not going to have to worry about you're not going to have to worry about you're not going to have to worry about money within reason and you're not going money within reason and you're not going money within reason and you're not going to have to work if you don't want to and to have to work if you don't want to and to have to work if you don't want to and finally the last one we have number five finally the last one we have number five finally the last one we have number five and that's what's known as fat and that's what's known as fat and that's what's known as fat fire this is for not only the people who fire this is for not only the people who fire this is for not only the people who want to retire but also for the people want to retire but also for the people want to retire but also for the people who want to retire who want to retire who want to retire and never think to themselves hmm how and never think to themselves hmm how and never think to themselves hmm how much money does it cost and can i afford much money does it cost and can i afford much money does it cost and can i afford it it it this one typically means that you're this one typically means that you're this one typically means that you're going to be spending over two hundred going to be spending over two hundred going to be spending over two hundred thousand dollars a year in retirement thousand dollars a year in retirement thousand dollars a year in retirement and you'll be able to earn what most and you'll be able to earn what most and you'll be able to earn what most americans can only dream of americans can only dream of americans can only dream of without ever needing to work another day without ever needing to work another day without ever needing to work another day in your entire life so in order to tell in your entire life so in order to tell in your entire life so in order to tell you exactly how you could reach these you exactly how you could reach these you exactly how you could reach these fire milestones i'm going to be going fire milestones i'm going to be going fire milestones i'm going to be going over exactly what you'll need to do in over exactly what you'll need to do in over exactly what you'll need to do in order to get there and exactly how much order to get there and exactly how much order to get there and exactly how much money you will need and all the money you will need and all the money you will need and all the calculations you'll need to know calculations you'll need to know calculations you'll need to know it's very easy all of this at its core it's very easy all of this at its core it's very easy all of this at its core really just comes down to a few things really just comes down to a few things really just comes down to a few things and this is what you need to know one and this is what you need to know one and this is what you need to know one how much money do you need to spend how much money do you need to spend how much money do you need to spend every single year number two how much every single year number two how much every single year number two how much money do you currently have saved up and money do you currently have saved up and money do you currently have saved up and number three number three number three how much money do you currently make if how much money do you currently make if how much money do you currently make if you know the answers to those three you know the answers to those three you know the answers to those three which which which honestly you should know the answers to honestly you should know the answers to honestly you should know the answers to those three that's going to tell you those three that's going to tell you those three that's going to tell you everything you need to be able to retire everything you need to be able to retire everything you need to be able to retire by . and really to start how much by . and really to start how much by . and really to start how much money you spend is gonna be the most money you spend is gonna be the most money you spend is gonna be the most important variable to this entire important variable to this entire important variable to this entire calculation calculation calculation generally speaking if you're under generally speaking if you're under generally speaking if you're under years old and you want your money to years old and you want your money to years old and you want your money to last you indefinitely without ever last you indefinitely without ever last you indefinitely without ever running out you'll need to only spend running out you'll need to only spend running out you'll need to only spend three percent of what you have invested three percent of what you have invested three percent of what you have invested every single year so that means if you every single year so that means if you every single year so that means if you have a hundred thousand dollars invested have a hundred thousand dollars invested have a hundred thousand dollars invested you could spend three thousand dollars a you could spend three thousand dollars a you could spend three thousand dollars a year without ever running out of money year without ever running out of money year without ever running out of money if you have a million dollars invested if you have a million dollars invested if you have a million dollars invested you could spend thirty thousand dollars you could spend thirty thousand dollars you could spend thirty thousand dollars a year without running out of money and a year without running out of money and a year without running out of money and so on now how much money you spend is so on now how much money you spend is so on now how much money you spend is going to greatly influence how much going to greatly influence how much going to greatly influence how much money you will need in order to retire money you will need in order to retire money you will need in order to retire because for every because for every because for every a month that you spend you're gonna need a month that you spend you're gonna need a month that you spend you're gonna need forty thousand dollars invested for that forty thousand dollars invested for that forty thousand dollars invested for that one hundred dollars a month to last one hundred dollars a month to last one hundred dollars a month to last forever by that logic it also means that forever by that logic it also means that forever by that logic it also means that for every one hundred dollars a month for every one hundred dollars a month for every one hundred dollars a month less that you spend you will need forty less that you spend you will need forty less that you spend you will need forty thousand dollars less invested and yeah thousand dollars less invested and yeah thousand dollars less invested and yeah that's a substantial amount i mean that that's a substantial amount i mean that that's a substantial amount i mean that could be someone's entire year's could be someone's entire year's could be someone's entire year's paycheck just to spend paycheck just to spend paycheck just to spend a hundred dollars a month so once you a hundred dollars a month so once you a hundred dollars a month so once you figure out exactly how much money you're figure out exactly how much money you're figure out exactly how much money you're going to need to spend every year then going to need to spend every year then going to need to spend every year then we can move on to the next step we can move on to the next step we can move on to the next step that would be how much money do you have that would be how much money do you have that would be how much money do you have saved up and invested whatever that saved up and invested whatever that saved up and invested whatever that amount is just divide that by amount is just divide that by amount is just divide that by and that's how much income your and that's how much income your and that's how much income your investments will be able to replace from investments will be able to replace from investments will be able to replace from there there there all you need to do is some super easy all you need to do is some super easy all you need to do is some super easy math to figure out how much more you math to figure out how much more you math to figure out how much more you will need will need will need in order to retire all you're going to in order to retire all you're going to in order to retire all you're going to need to do is take how much money you need to do is take how much money you need to do is take how much money you spend every single year spend every single year spend every single year multiply that by and then whatever multiply that by and then whatever multiply that by and then whatever amount that is amount that is amount that is is how much you're going to need before is how much you're going to need before is how much you're going to need before you can call yourself retired this is you can call yourself retired this is you can call yourself retired this is all based on what's known as the trinity all based on what's known as the trinity all based on what's known as the trinity study which analyzed the investment study which analyzed the investment study which analyzed the investment portfolios of stocks and bonds portfolios of stocks and bonds portfolios of stocks and bonds throughout every single year in history throughout every single year in history throughout every single year in history and calculated how much you could spend and calculated how much you could spend and calculated how much you could spend from your investments throughout a from your investments throughout a from your investments throughout a -year retirement -year retirement -year retirement and that study found based on hundreds and that study found based on hundreds and that study found based on hundreds of simulations that you could spend of simulations that you could spend of simulations that you could spend four percent of your portfolio every four percent of your portfolio every four percent of your portfolio every single year and make sure your money single year and make sure your money single year and make sure your money lasts you for years lasts you for years lasts you for years however even though a -year retirement however even though a -year retirement however even though a -year retirement might work if you're or years old might work if you're or years old might work if you're or years old it's probably not going to work if you it's probably not going to work if you it's probably not going to work if you want to retire by . so in order to want to retire by . so in order to want to retire by . so in order to preserve more capital so you could preserve more capital so you could preserve more capital so you could retire for a longer period of time it's retire for a longer period of time it's retire for a longer period of time it's instead recommended you do a three instead recommended you do a three instead recommended you do a three percent withdrawal rate so for example percent withdrawal rate so for example percent withdrawal rate so for example if you spend if you spend if you spend a year just multiply that by and a year just multiply that by and a year just multiply that by and you're going to need million you're going to need million you're going to need million if you want to be able to retire by if you want to be able to retire by if you want to be able to retire by . if you want to be able to lean fire . if you want to be able to lean fire . if you want to be able to lean fire off off off a year then again just multiply that a year then again just multiply that a year then again just multiply that by and you're going to need by and you're going to need by and you're going to need invested to hit that goal then invested to hit that goal then invested to hit that goal then if you want to be able to fat if you want to be able to fat if you want to be able to fat fire off a year in retirement fire off a year in retirement fire off a year in retirement again again again multiply that by smash the like multiply that by smash the like multiply that by smash the like button and you're going to need . button and you're going to need . button and you're going to need . million dollars invested and that's million dollars invested and that's million dollars invested and that's pretty much all the basic math you're pretty much all the basic math you're pretty much all the basic math you're going to need to know now obviously if going to need to know now obviously if going to need to know now obviously if you have higher yielding investments you have higher yielding investments you have higher yielding investments like you're investing in real estate like you're investing in real estate like you're investing in real estate that gives you a return the same that gives you a return the same that gives you a return the same calculation also applies just modify it calculation also applies just modify it calculation also applies just modify it slightly for whatever you're investing slightly for whatever you're investing slightly for whatever you're investing in and finally the last factor in this in and finally the last factor in this in and finally the last factor in this equation and that would be how much equation and that would be how much equation and that would be how much money do you currently make this is money do you currently make this is money do you currently make this is going to tell you how long it'll take going to tell you how long it'll take going to tell you how long it'll take for you to hit that retirement number for you to hit that retirement number for you to hit that retirement number and whether or not you'll have to earn and whether or not you'll have to earn and whether or not you'll have to earn more money to want to get there sooner more money to want to get there sooner more money to want to get there sooner being able to retire by being able to retire by being able to retire by is not easy and it's not cheap per se so is not easy and it's not cheap per se so is not easy and it's not cheap per se so if you're currently making if you're currently making if you're currently making a year saving none of it and expect to a year saving none of it and expect to a year saving none of it and expect to retire with retire with retire with a year in passive income with a a year in passive income with a a year in passive income with a million million million nest egg you're gonna need to find a way nest egg you're gonna need to find a way nest egg you're gonna need to find a way to make more money and you're gonna be to make more money and you're gonna be to make more money and you're gonna be able to calculate that by taking your able to calculate that by taking your able to calculate that by taking your current spending current spending current spending multiplying that by then subtracting multiplying that by then subtracting multiplying that by then subtracting what you currently have invested and what you currently have invested and what you currently have invested and saved and then whatever's left over saved and then whatever's left over saved and then whatever's left over is how much more money you will need to is how much more money you will need to is how much more money you will need to make from there calculate how much more make from there calculate how much more make from there calculate how much more money you'll have to make to get there money you'll have to make to get there money you'll have to make to get there by and by and by and it's probably a very big number now it's probably a very big number now it's probably a very big number now let's get into the parts that i'm sure let's get into the parts that i'm sure let's get into the parts that i'm sure all of you are interested in all of you are interested in all of you are interested in and that's how you could retire by and that's how you could retire by and that's how you could retire by years old now obviously this is going to years old now obviously this is going to years old now obviously this is going to be way different if you're watching this be way different if you're watching this be way different if you're watching this at and a half years old and you're at and a half years old and you're at and a half years old and you're like like like but graham i can't retire in six months but graham i can't retire in six months but graham i can't retire in six months at years old at years old at years old versus someone else who's watching this versus someone else who's watching this versus someone else who's watching this at two years old and you're starting to at two years old and you're starting to at two years old and you're starting to save as you're learning to walk so we're save as you're learning to walk so we're save as you're learning to walk so we're going to be opening this up going to be opening this up going to be opening this up instead to how to retire in your s so instead to how to retire in your s so instead to how to retire in your s so that way way more people are included that way way more people are included that way way more people are included but regardless but regardless but regardless the strategy is exactly the same now the the strategy is exactly the same now the the strategy is exactly the same now the blogger mr money mustache did the blogger mr money mustache did the blogger mr money mustache did the calculation for us calculation for us calculation for us and calculated how long you will need to and calculated how long you will need to and calculated how long you will need to work compared to how much money you save work compared to how much money you save work compared to how much money you save in order to retire in order to retire in order to retire using the four percent rule he using the four percent rule he using the four percent rule he determined that if you're able to save determined that if you're able to save determined that if you're able to save and invest to and invest to and invest to of your income you would be able to of your income you would be able to of your income you would be able to effectively retire within years of effectively retire within years of effectively retire within years of working let me say that once more working let me say that once more working let me say that once more because i'm sure some of you are just because i'm sure some of you are just because i'm sure some of you are just partially listening to this and zoning partially listening to this and zoning partially listening to this and zoning out out out hey listen to this right now right now hey listen to this right now right now hey listen to this right now right now if you're watching it listen just listen if you're watching it listen just listen if you're watching it listen just listen to this to this to this if you're able to save to of your if you're able to save to of your if you're able to save to of your income for years income for years income for years you will have effectively saved up you will have effectively saved up you will have effectively saved up enough money to continue your current enough money to continue your current enough money to continue your current lifestyle indefinitely and be able to lifestyle indefinitely and be able to lifestyle indefinitely and be able to retire without ever needing to work ever retire without ever needing to work ever retire without ever needing to work ever again but of course though he did find again but of course though he did find again but of course though he did find because of math that the less money you because of math that the less money you because of math that the less money you save save save the longer you'll need to work for but the longer you'll need to work for but the longer you'll need to work for but once you're able to start saving a once you're able to start saving a once you're able to start saving a significant portion of how much money significant portion of how much money significant portion of how much money you make you make you make you'll be able to cut down the time you'll be able to cut down the time you'll be able to cut down the time required to retire significantly wait a required to retire significantly wait a required to retire significantly wait a second the time second the time second the time required to retire the time required to required to retire the time required to required to retire the time required to retire that that's really hard to say retire that that's really hard to say retire that that's really hard to say but anyway for example if you make but anyway for example if you make but anyway for example if you make a year then theoretically you should a year then theoretically you should a year then theoretically you should be able to retire in years if you be able to retire in years if you be able to retire in years if you only spend only spend only spend a year doing that is going to let a year doing that is going to let a year doing that is going to let you live indefinitely with that same you live indefinitely with that same you live indefinitely with that same lifestyle after those years and then lifestyle after those years and then lifestyle after those years and then anything else you make after that is anything else you make after that is anything else you make after that is just icing on the cake but really the just icing on the cake but really the just icing on the cake but really the big picture here is that you're not big picture here is that you're not big picture here is that you're not going to have to need to work unless you going to have to need to work unless you going to have to need to work unless you want to as long as you just keep your want to as long as you just keep your want to as long as you just keep your spending the exact same so number one a spending the exact same so number one a spending the exact same so number one a high savings rate is a must high savings rate is a must high savings rate is a must if you want to be able to retire early if you want to be able to retire early if you want to be able to retire early or especially if you want to retire at or especially if you want to retire at or especially if you want to retire at years old years old years old realistically most people are probably realistically most people are probably realistically most people are probably going to have to save above percent going to have to save above percent going to have to save above percent of their income if they want to reach of their income if they want to reach of their income if they want to reach this goal at a young age this goal at a young age this goal at a young age like it or hate it that's the reality of like it or hate it that's the reality of like it or hate it that's the reality of what you will need to do practically if what you will need to do practically if what you will need to do practically if you want to retire by you'll either you want to retire by you'll either you want to retire by you'll either have to make a lot of money or spend have to make a lot of money or spend have to make a lot of money or spend very little money but assuming you guys very little money but assuming you guys very little money but assuming you guys just want to make a ton of money to be just want to make a ton of money to be just want to make a ton of money to be able to retire as quick as possible able to retire as quick as possible able to retire as quick as possible i'll give you the rundown and go over i'll give you the rundown and go over i'll give you the rundown and go over the details of what's required the details of what's required the details of what's required most likely unless you're making a most likely unless you're making a most likely unless you're making a hundred thousand dollars a year in a hundred thousand dollars a year in a hundred thousand dollars a year in a high-earning job right out of college high-earning job right out of college high-earning job right out of college while simultaneously living just a few while simultaneously living just a few while simultaneously living just a few steps above homelessness steps above homelessness steps above homelessness you're not going to be able to retire by you're not going to be able to retire by you're not going to be able to retire by while working a traditional job while working a traditional job while working a traditional job if you're already making a ton of money if you're already making a ton of money if you're already making a ton of money then it really just comes down to then it really just comes down to then it really just comes down to cutting back on your spending cutting back on your spending cutting back on your spending living frugally investing as much money living frugally investing as much money living frugally investing as much money as you can and then it's only a matter as you can and then it's only a matter as you can and then it's only a matter of time and for everyone else out there of time and for everyone else out there of time and for everyone else out there who wants to be able to retire by and who wants to be able to retire by and who wants to be able to retire by and make a ton of money make a ton of money make a ton of money is to work a career that pays you based is to work a career that pays you based is to work a career that pays you based off your results and not based on your off your results and not based on your off your results and not based on your time the biggest problem i have about time the biggest problem i have about time the biggest problem i have about getting paid for your time is that getting paid for your time is that getting paid for your time is that there's only hours in a day there's only hours in a day there's only hours in a day so if you're working hourly or you're on so if you're working hourly or you're on so if you're working hourly or you're on a salary eventually you're going to hit a salary eventually you're going to hit a salary eventually you're going to hit a ceiling in terms of how much income a ceiling in terms of how much income a ceiling in terms of how much income you can make and once you hit that you can make and once you hit that you can make and once you hit that there's just no more hours in the day there's just no more hours in the day there's just no more hours in the day on the other hand if you get paid on on the other hand if you get paid on on the other hand if you get paid on your results then theoretically you your results then theoretically you your results then theoretically you should be able to find a way to should be able to find a way to should be able to find a way to streamline those results so that you streamline those results so that you streamline those results so that you could end up making way more money could end up making way more money could end up making way more money without necessarily working any harder without necessarily working any harder without necessarily working any harder i'll use myself as an example i started i'll use myself as an example i started i'll use myself as an example i started out as a real estate agent out as a real estate agent out as a real estate agent how many hours i worked was completely how many hours i worked was completely how many hours i worked was completely irrelevant i only got paid when i sold irrelevant i only got paid when i sold irrelevant i only got paid when i sold the house the house the house and i was able to leverage my time a lot and i was able to leverage my time a lot and i was able to leverage my time a lot better by focusing on the houses that i better by focusing on the houses that i better by focusing on the houses that i knew i could sell the quickest knew i could sell the quickest knew i could sell the quickest and in the areas where i knew i could and in the areas where i knew i could and in the areas where i knew i could make the most amount of money even here make the most amount of money even here make the most amount of money even here on youtube it's the exact same work for on youtube it's the exact same work for on youtube it's the exact same work for me to make a video to reach me to make a video to reach me to make a video to reach subscribers as it is for me to make a subscribers as it is for me to make a subscribers as it is for me to make a video that reaches million subscribers video that reaches million subscribers video that reaches million subscribers even though funny enough now i end up even though funny enough now i end up even though funny enough now i end up working way harder but you get the idea working way harder but you get the idea working way harder but you get the idea it's essential that you work in a career it's essential that you work in a career it's essential that you work in a career where you could leverage what you do where you could leverage what you do where you could leverage what you do and make more money without necessarily and make more money without necessarily and make more money without necessarily working more hours working more hours working more hours that's why i believe the best business that's why i believe the best business that's why i believe the best business to be in today is anything that you to be in today is anything that you to be in today is anything that you could do from your computer on the could do from your computer on the could do from your computer on the internet internet internet or anything paid on commission if you or anything paid on commission if you or anything paid on commission if you use your time efficiently you could end use your time efficiently you could end use your time efficiently you could end up making way more money very early on up making way more money very early on up making way more money very early on and that's going to help you retire and that's going to help you retire and that's going to help you retire sooner or amount of work and you'll later to be amount of work and you'll later to be amount of work and you'll later to be involved in this for years in order for involved in this for years in order for involved in this for years in order for it to be successful but if you want to it to be successful but if you want to it to be successful but if you want to be able to retire within a decade you be able to retire within a decade you be able to retire within a decade you will most likely get there by working will most likely get there by working will most likely get there by working for yourself for yourself for yourself and really at the end of the day if you and really at the end of the day if you and really at the end of the day if you want to end up making a lot of money to want to end up making a lot of money to want to end up making a lot of money to be able to retire really quick be able to retire really quick be able to retire really quick you have to completely decouple the you have to completely decouple the you have to completely decouple the notion that the harder you work and the notion that the harder you work and the notion that the harder you work and the more hours you work more hours you work more hours you work the more money you will make because the more money you will make because the more money you will make because that is not true at all secondly one of that is not true at all secondly one of that is not true at all secondly one of the ideas that i read from the book the the ideas that i read from the book the the ideas that i read from the book the millionaire fastlane just summarizes millionaire fastlane just summarizes millionaire fastlane just summarizes this perfectly this perfectly this perfectly think like a creator not like a consumer think like a creator not like a consumer think like a creator not like a consumer instead of watching and consuming instead of watching and consuming instead of watching and consuming youtube videos start creating youtube youtube videos start creating youtube youtube videos start creating youtube videos videos videos instead of going and consuming and instead of going and consuming and instead of going and consuming and buying t-shirts and clothing online buying t-shirts and clothing online buying t-shirts and clothing online sell the clothing online instead of not sell the clothing online instead of not sell the clothing online instead of not smashing the like button smashing the like button smashing the like button smash the like button you get the idea smash the like button you get the idea smash the like button you get the idea you need to begin creating value you need to begin creating value you need to begin creating value and building something not just using and building something not just using and building something not just using and consuming and finally you're going and consuming and finally you're going and consuming and finally you're going to have a much better chance at making a to have a much better chance at making a to have a much better chance at making a ton of money if you ton of money if you ton of money if you thoroughly enjoy what you do i've said thoroughly enjoy what you do i've said thoroughly enjoy what you do i've said this all the time but if you absolutely this all the time but if you absolutely this all the time but if you absolutely hate your work hate your work hate your work there is no way that you're going to be there is no way that you're going to be there is no way that you're going to be able to perform at a high enough level able to perform at a high enough level able to perform at a high enough level to get good to get good to get good at what you're doing to be able to make at what you're doing to be able to make at what you're doing to be able to make a ton of money and retire within a ton of money and retire within a ton of money and retire within years years years everyone that i've met that's been able everyone that i've met that's been able everyone that i've met that's been able to retire in their s has had a passion to retire in their s has had a passion to retire in their s has had a passion for what they do and i don't think for what they do and i don't think for what they do and i don't think that's by random fluke find something that's by random fluke find something that's by random fluke find something you like you like you like create a business that pays you around create a business that pays you around create a business that pays you around your results and then leverage to scale your results and then leverage to scale your results and then leverage to scale that up to make even more money and i'm that up to make even more money and i'm that up to make even more money and i'm sure at this point some people might sure at this point some people might sure at this point some people might like mentioning some wild investments like mentioning some wild investments like mentioning some wild investments like like like buy test the cut options or buy crypto buy test the cut options or buy crypto buy test the cut options or buy crypto but overall the riskier the investment but overall the riskier the investment but overall the riskier the investment and the higher the payouts the higher and the higher the payouts the higher and the higher the payouts the higher the likelihood that you're going to end the likelihood that you're going to end the likelihood that you're going to end up losing money you're not making up losing money you're not making up losing money you're not making anything at all so at that point you may anything at all so at that point you may anything at all so at that point you may as well just go and buy lottery tickets as well just go and buy lottery tickets as well just go and buy lottery tickets because because because if that works then yes that's how you if that works then yes that's how you if that works then yes that's how you could retire by . and because everyone could retire by . and because everyone could retire by . and because everyone wants specifics with this stuff with wants specifics with this stuff with wants specifics with this stuff with real numbers here you go if you're real numbers here you go if you're real numbers here you go if you're years old right now and you want to years old right now and you want to years old right now and you want to spend spend spend a year in retirement at the age of a year in retirement at the age of a year in retirement at the age of then you will need million then you will need million then you will need million invested that works out to you invested that works out to you invested that works out to you needing to invest needing to invest needing to invest a year at an average of an return on a year at an average of an return on a year at an average of an return on your investments to be able to reach your investments to be able to reach your investments to be able to reach that goal that means if you could find a that goal that means if you could find a that goal that means if you could find a way to average a hundred and fifty way to average a hundred and fifty way to average a hundred and fifty thousand dollars a year in income thousand dollars a year in income thousand dollars a year in income throughout your twenties before taxes throughout your twenties before taxes throughout your twenties before taxes while only spending twenty two thousand while only spending twenty two thousand while only spending twenty two thousand dollars a year dollars a year dollars a year that's what it takes to be able to that's what it takes to be able to that's what it takes to be able to retire by thirty years old with fifty retire by thirty years old with fifty retire by thirty years old with fifty thousand dollars a year in passive thousand dollars a year in passive thousand dollars a year in passive income income income indefinitely then if you want to retire indefinitely then if you want to retire indefinitely then if you want to retire off of off of off of a year just apply the same calculation a year just apply the same calculation a year just apply the same calculation as we just did as we just did as we just did and that means you will need to invest and that means you will need to invest and that means you will need to invest a year over years and if you a year over years and if you a year over years and if you want to spend want to spend want to spend a year in retirement then you could do a year in retirement then you could do a year in retirement then you could do the same thing by investing the same thing by investing the same thing by investing a year for years this all assumes you a year for years this all assumes you a year for years this all assumes you start at the age of and keep your start at the age of and keep your start at the age of and keep your spending the exact same spending the exact same spending the exact same some investments might definitely speed some investments might definitely speed some investments might definitely speed things up a bit depending on how things up a bit depending on how things up a bit depending on how involved you want to be like with real involved you want to be like with real involved you want to be like with real estate like if you're able to save estate like if you're able to save estate like if you're able to save then you could use that as a down then you could use that as a down then you could use that as a down payment to go and buy a payment to go and buy a payment to go and buy a home and if you search hard enough for a home and if you search hard enough for a home and if you search hard enough for a deal you might be able to buy a place deal you might be able to buy a place deal you might be able to buy a place worth two hundred and eighty thousand worth two hundred and eighty thousand worth two hundred and eighty thousand dollars but only pay two hundred and dollars but only pay two hundred and dollars but only pay two hundred and fifty thousand dollars for it thereby fifty thousand dollars for it thereby fifty thousand dollars for it thereby giving you giving you giving you thirty thousand dollars extra in free thirty thousand dollars extra in free thirty thousand dollars extra in free equity then let's assume you spend equity then let's assume you spend equity then let's assume you spend twenty thousand dollars more twenty thousand dollars more twenty thousand dollars more fixing it up and now it has a market fixing it up and now it has a market fixing it up and now it has a market value of three hundred and thirty value of three hundred and thirty value of three hundred and thirty thousand dollars thousand dollars thousand dollars in that case you've spent seventy in that case you've spent seventy in that case you've spent seventy thousand dollars and you have a property thousand dollars and you have a property thousand dollars and you have a property worth worth worth more than what you've paid for it more than what you've paid for it more than what you've paid for it so essentially you've pretty much so essentially you've pretty much so essentially you've pretty much doubled your money in about a year if doubled your money in about a year if doubled your money in about a year if you're able to do something like that you're able to do something like that you're able to do something like that every to months then you're able every to months then you're able every to months then you're able to hit the retirement to hit the retirement to hit the retirement age much much earlier especially if that age much much earlier especially if that age much much earlier especially if that property is generating way more than a property is generating way more than a property is generating way more than a three to five percent return three to five percent return three to five percent return it's all about trying to get your money it's all about trying to get your money it's all about trying to get your money to work for you while also living to work for you while also living to work for you while also living frugally while also trying to make as frugally while also trying to make as frugally while also trying to make as much money as you possibly can i know much money as you possibly can i know much money as you possibly can i know some of this might seem like some of this might seem like some of this might seem like yeah graham that's obvious but the yeah graham that's obvious but the yeah graham that's obvious but the reality of early retirement is really reality of early retirement is really reality of early retirement is really just numbers just numbers just numbers you must make enough money to be able to you must make enough money to be able to you must make enough money to be able to save to save to save to of your income for a matter of years of your income for a matter of years of your income for a matter of years and at its core and at its core and at its core that's what it's going to take if you that's what it's going to take if you that's what it's going to take if you want to retire by . i was able to do want to retire by . i was able to do want to retire by . i was able to do this through a combination of living this through a combination of living this through a combination of living really frugally like throughout my really frugally like throughout my really frugally like throughout my entire s entire s entire s my net out of pocket cost every single my net out of pocket cost every single my net out of pocket cost every single month was fifteen hundred month was fifteen hundred month was fifteen hundred to eighteen hundred dollars even though to eighteen hundred dollars even though to eighteen hundred dollars even though at the time i was making a hundred and at the time i was making a hundred and at the time i was making a hundred and fifty thousand dollars a year or more fifty thousand dollars a year or more fifty thousand dollars a year or more and also i never and also i never and also i never increased my quality of living until i increased my quality of living until i increased my quality of living until i had enough money invested to be able to had enough money invested to be able to had enough money invested to be able to sustain it sustain it sustain it indefinitely even now that i've moved indefinitely even now that i've moved indefinitely even now that i've moved into a new spot that actually costs into a new spot that actually costs into a new spot that actually costs money because i'm not renting the entire money because i'm not renting the entire money because i'm not renting the entire thing out i made sure my investments thing out i made sure my investments thing out i made sure my investments would be able to cover that cost so that would be able to cover that cost so that would be able to cover that cost so that i'm never spending more than i make for i'm never spending more than i make for i'm never spending more than i make for my investments and that's what's given my investments and that's what's given my investments and that's what's given me the freedom to have the choice to me the freedom to have the choice to me the freedom to have the choice to retire whenever retire whenever retire whenever even though i absolutely love working even though i absolutely love working even though i absolutely love working and i have no plan on stopping anytime and i have no plan on stopping anytime and i have no plan on stopping anytime soon but overall that's the guide if you soon but overall that's the guide if you soon but overall that's the guide if you want to retire at years old there's want to retire at years old there's want to retire at years old there's no magic pill out there there's no one no magic pill out there there's no one no magic pill out there there's no one way to make this happen but it all way to make this happen but it all way to make this happen but it all really comes down to how much money are really comes down to how much money are really comes down to how much money are you saving you saving you saving how much money are you making and how how much money are you making and how how much money are you making and how much money do you want to spend in much money do you want to spend in much money do you want to spend in retirement and it really helps retirement and it really helps retirement and it really helps significantly to leverage your time significantly to leverage your time significantly to leverage your time get paid on results save your money get paid on results save your money get paid on results save your money invest consistently and invest consistently and invest consistently and as usual smash the like button for the as usual smash the like button for the as usual smash the like button for the youtube algorithm so with that said you youtube algorithm so with that said you youtube algorithm so with that said you guys thank you so much for watching i guys thank you so much for watching i guys thank you so much for watching i really appreciate it as always make sure really appreciate it as always make sure really appreciate it as always make sure to subscribe to subscribe to subscribe hit the notification bell also feel free hit the notification bell also feel free hit the notification bell also feel free to add me on instagram i post it pretty to add me on instagram i post it pretty to add me on instagram i post it pretty much daily so if you want to be a part much daily so if you want to be a part much daily so if you want to be a part of it there of it there of it there feel free to add me there as on my feel free to add me there as on my feel free to add me there as on my second channel the graham stefan show i second channel the graham stefan show i second channel the graham stefan show i post there post there post there every single day i'm not posting here so every single day i'm not posting here so every single day i'm not posting here so if you want to see a brand new video if you want to see a brand new video if you want to see a brand new video from me every single day make sure to from me every single day make sure to from me every single day make sure to add yourself to that add yourself to that add yourself to that and lastly if you guys want your two and lastly if you guys want your two and lastly if you guys want your two free stocks use the link down below in free stocks use the link down below in free stocks use the link down below in the description the description the description and weeble is going to be giving you two and weeble is going to be giving you two and weeble is going to be giving you two free stocks when you deposit free stocks when you deposit free stocks when you deposit on the platform with one of those stocks on the platform with one of those stocks on the platform with one of those stocks potentially worth all the way up to potentially worth all the way up to potentially worth all the way up to dollars so if you want your two free dollars so if you want your two free dollars so if you want your two free stocks and get two stocks closer to stocks and get two stocks closer to stocks and get two stocks closer to early retirement at early retirement at early retirement at use that link down below let me know use that link down below let me know use that link down below let me know which two free stocks you get thank you which two free stocks you get thank you which two free stocks you get thank you so much for watching and until next time WEBVTT Kind: captions Language: en you ask what is the proper limit to a you ask what is the proper limit to a you ask what is the proper limit to a person's wealth first having what is person's wealth first having what is person's wealth first having what is essential and second having what is essential and second having what is essential and second having what is enough in the video I made about how I enough in the video I made about how I enough in the video I made about how I save and invest percent of my income save and invest percent of my income save and invest percent of my income while on my way to financial while on my way to financial while on my way to financial independence independence independence I received a whole bunch of questions I received a whole bunch of questions I received a whole bunch of questions about how much money that is and if it's about how much money that is and if it's about how much money that is and if it's pretext money or not let me clear some pretext money or not let me clear some pretext money or not let me clear some of that up first of that up first of that up first it is pre-tax money the government is it is pre-tax money the government is it is pre-tax money the government is gonna take what they're gonna take so gonna take what they're gonna take so gonna take what they're gonna take so that amount is what it is second I won't that amount is what it is second I won't that amount is what it is second I won't tell you exactly how much money I make tell you exactly how much money I make tell you exactly how much money I make every year or the exact amount I set every year or the exact amount I set every year or the exact amount I set aside every single month because I know aside every single month because I know aside every single month because I know some people that I work with watch my some people that I work with watch my some people that I work with watch my videos I'm not about to open up that can videos I'm not about to open up that can videos I'm not about to open up that can of worms and plus I have other streams of worms and plus I have other streams of worms and plus I have other streams of income outside of my full-time job of income outside of my full-time job of income outside of my full-time job but I'll give you a little carrot and but I'll give you a little carrot and but I'll give you a little carrot and say that the money I set aside every say that the money I set aside every say that the money I set aside every year is at least forty thousand dollars year is at least forty thousand dollars year is at least forty thousand dollars how much more well you can guess in the how much more well you can guess in the how much more well you can guess in the comments down below in this video I'm comments down below in this video I'm comments down below in this video I'm gonna go one step deeper into how I gonna go one step deeper into how I gonna go one step deeper into how I actually save and invest more than forty actually save and invest more than forty actually save and invest more than forty thousand dollars per year to help me thousand dollars per year to help me thousand dollars per year to help me reach financial independence sooner reach financial independence sooner reach financial independence sooner rather than later rather than later rather than later this video isn't gonna be about cutting this video isn't gonna be about cutting this video isn't gonna be about cutting coupons turning old wine into vinegar or coupons turning old wine into vinegar or coupons turning old wine into vinegar or dumpster diving to save money these are dumpster diving to save money these are dumpster diving to save money these are things that I do every single day and things that I do every single day and things that I do every single day and are able to be replicated by one hundred are able to be replicated by one hundred are able to be replicated by one hundred percent of you watching this hey I'm percent of you watching this hey I'm percent of you watching this hey I'm Jarrod with an A and on this channel we Jarrod with an A and on this channel we Jarrod with an A and on this channel we like to talk about all things personal like to talk about all things personal like to talk about all things personal finance and investing and we try to have finance and investing and we try to have finance and investing and we try to have some fun in the process some fun in the process some fun in the process the first thing I do is take into the first thing I do is take into the first thing I do is take into account the Diderot effect before buying account the Diderot effect before buying account the Diderot effect before buying anything new it's based off something anything new it's based off something anything new it's based off something that happened to a French writer and that happened to a French writer and that happened to a French writer and philosopher named Denis Diderot when he philosopher named Denis Diderot when he philosopher named Denis Diderot when he bought a brand a new rope he later said bought a brand a new rope he later said bought a brand a new rope he later said about this rope purchase I was the about this rope purchase I was the about this rope purchase I was the absolute master of my old rope I have absolute master of my old rope I have absolute master of my old rope I have become the slave of the new one the become the slave of the new one the become the slave of the new one the issue wasn't with the robe itself but issue wasn't with the robe itself but issue wasn't with the robe itself but what having the new rope ended up making what having the new rope ended up making what having the new rope ended up making him do this new robe eventually became a him do this new robe eventually became a him do this new robe eventually became a curse and cost him more money than he curse and cost him more money than he curse and cost him more money than he originally spent on it it sounds insane originally spent on it it sounds insane originally spent on it it sounds insane right I mean how can buy something right I mean how can buy something right I mean how can buy something brand-new cost more than than the brand-new cost more than than the brand-new cost more than than the initial purchase especially something initial purchase especially something initial purchase especially something small like a stupid robe when he hung small like a stupid robe when he hung small like a stupid robe when he hung that robe up in the closet that robe up in the closet that robe up in the closet it made the rest of his clothes look old it made the rest of his clothes look old it made the rest of his clothes look old and raggedy so he needed to buy new and raggedy so he needed to buy new and raggedy so he needed to buy new clothes when he took that robe off and clothes when he took that robe off and clothes when he took that robe off and laid it on a chair in his room that laid it on a chair in his room that laid it on a chair in his room that chair didn't fit in because it chair didn't fit in because it chair didn't fit in because it immediately looked immediately looked immediately looked out of place and his old shoes that were out of place and his old shoes that were out of place and his old shoes that were still in great condition didn't match still in great condition didn't match still in great condition didn't match his new robe when he worn out so he his new robe when he worn out so he his new robe when he worn out so he obviously needed to buy a new pair of obviously needed to buy a new pair of obviously needed to buy a new pair of shoes because the more you upgrade one shoes because the more you upgrade one shoes because the more you upgrade one thing in your life the more you'll thing in your life the more you'll thing in your life the more you'll notice that other things around you just notice that other things around you just notice that other things around you just don't fit in any longer to balance out don't fit in any longer to balance out don't fit in any longer to balance out your new life with your old life you'll your new life with your old life you'll your new life with your old life you'll need to make additional purchases all it need to make additional purchases all it need to make additional purchases all it takes is one large or small purchase to takes is one large or small purchase to takes is one large or small purchase to set you down this path that can be set you down this path that can be set you down this path that can be difficult to get off of take for example difficult to get off of take for example difficult to get off of take for example the car purchase that I made a few the car purchase that I made a few the car purchase that I made a few months ago I bought a used car that was months ago I bought a used car that was months ago I bought a used car that was nicer than the one that I got rid of nicer than the one that I got rid of nicer than the one that I got rid of it's not an extremely expensive car it's it's not an extremely expensive car it's it's not an extremely expensive car it's a very modest car that fits my lifestyle a very modest car that fits my lifestyle a very modest car that fits my lifestyle perfectly the insurance I carried on my perfectly the insurance I carried on my perfectly the insurance I carried on my old car was liability insurance because old car was liability insurance because old car was liability insurance because of course it was an older car and I of course it was an older car and I of course it was an older car and I essentially had the cash on hand to self essentially had the cash on hand to self essentially had the cash on hand to self insurance so it wasn't very expensive insurance so it wasn't very expensive insurance so it wasn't very expensive but on this newer car I wanted to get but on this newer car I wanted to get but on this newer car I wanted to get full coverage it's an upgrade it's worth full coverage it's an upgrade it's worth full coverage it's an upgrade it's worth more money and I want to properly more money and I want to properly more money and I want to properly protect it even though I have the cash protect it even though I have the cash protect it even though I have the cash on hand to self insure this newer car on hand to self insure this newer car on hand to self insure this newer car right now I still feel compelled to pay right now I still feel compelled to pay right now I still feel compelled to pay the extra money for that full coverage the extra money for that full coverage the extra money for that full coverage just to be safe just to be safe just to be safe now I accounted for this additional cost now I accounted for this additional cost now I accounted for this additional cost when I made the purchase but most people when I made the purchase but most people when I made the purchase but most people who aren't super personal finance nerds who aren't super personal finance nerds who aren't super personal finance nerds like me might not think of this on top like me might not think of this on top like me might not think of this on top of that I also needed to buy a seat of that I also needed to buy a seat of that I also needed to buy a seat cover for my back seat I am a very cover for my back seat I am a very cover for my back seat I am a very active person who takes his dog with him active person who takes his dog with him active person who takes his dog with him on hikes and multiple trail runs every on hikes and multiple trail runs every on hikes and multiple trail runs every single week once we get done playing in single week once we get done playing in single week once we get done playing in the woods the woods the woods show sometimes have dirty paws even if I show sometimes have dirty paws even if I show sometimes have dirty paws even if I wipe her off before she gets back into wipe her off before she gets back into wipe her off before she gets back into the car I can never seem to get her the car I can never seem to get her the car I can never seem to get her clean enough to prevent her from clean enough to prevent her from clean enough to prevent her from tracking dirt all over the place now tracking dirt all over the place now tracking dirt all over the place now I've tried putting old bed sheets in the I've tried putting old bed sheets in the I've tried putting old bed sheets in the back of the seat for her to sit on but back of the seat for her to sit on but back of the seat for her to sit on but it always seems to fall off and just it always seems to fall off and just it always seems to fall off and just doesn't work because my car is newer I doesn't work because my car is newer I doesn't work because my car is newer I don't want her tracking mud all over the don't want her tracking mud all over the don't want her tracking mud all over the back seat once we get done playing back seat once we get done playing back seat once we get done playing outside the upgrade I made to my vehicle outside the upgrade I made to my vehicle outside the upgrade I made to my vehicle caused these additional purchases this caused these additional purchases this caused these additional purchases this isn't to say that you should never isn't to say that you should never isn't to say that you should never purchase nice new things the point is to purchase nice new things the point is to purchase nice new things the point is to think the purchase all the way through think the purchase all the way through think the purchase all the way through from beginning to end and beyond to from beginning to end and beyond to from beginning to end and beyond to realize what it's actually going to cost realize what it's actually going to cost realize what it's actually going to cost you if you haven't done it already you if you haven't done it already you if you haven't done it already please Hulk smash that thumbs up button please Hulk smash that thumbs up button please Hulk smash that thumbs up button weak-minded people are easily influenced weak-minded people are easily influenced weak-minded people are easily influenced when pressured into something because of when pressured into something because of when pressured into something because of that I do my best not to let outside that I do my best not to let outside that I do my best not to let outside influences influence the money that I influences influence the money that I influences influence the money that I spend we're all people pleasers because spend we're all people pleasers because spend we're all people pleasers because we just want everyone to like us we just want everyone to like us we just want everyone to like us think that we are the coolest people think that we are the coolest people think that we are the coolest people ever even if it's to the detriment of ever even if it's to the detriment of ever even if it's to the detriment of our own financial situation over the our own financial situation over the our own financial situation over the years I've employed this don't give a years I've employed this don't give a years I've employed this don't give a crap what people think attitude not in a crap what people think attitude not in a crap what people think attitude not in a reckless way but in a way that gives me reckless way but in a way that gives me reckless way but in a way that gives me confidence and what I'm doing right now confidence and what I'm doing right now confidence and what I'm doing right now have I made friends mad by not spending have I made friends mad by not spending have I made friends mad by not spending money on things I sure have money on things I sure have money on things I sure have do they still dislike me well some do do they still dislike me well some do do they still dislike me well some do and some don't but the ones who still and some don't but the ones who still and some don't but the ones who still dislike me for it were never my friends dislike me for it were never my friends dislike me for it were never my friends to begin with they wanted me to stroke to begin with they wanted me to stroke to begin with they wanted me to stroke their poor little ego to make them feel their poor little ego to make them feel their poor little ego to make them feel special I ain't stroking anything of special I ain't stroking anything of special I ain't stroking anything of yours so put that sucker back in the bag yours so put that sucker back in the bag yours so put that sucker back in the bag and zip it right up if you don't stand and zip it right up if you don't stand and zip it right up if you don't stand up for yourself in these kinds of up for yourself in these kinds of up for yourself in these kinds of situations then who's gonna do it for situations then who's gonna do it for situations then who's gonna do it for you you're the last line of defense for you you're the last line of defense for you you're the last line of defense for the money in your bank accounts quick the money in your bank accounts quick the money in your bank accounts quick personal story on this topic my little personal story on this topic my little personal story on this topic my little brother who passed away a few years ago brother who passed away a few years ago brother who passed away a few years ago at the age of had inherited hundreds at the age of had inherited hundreds at the age of had inherited hundreds of thousands of dollars from his grandpa of thousands of dollars from his grandpa of thousands of dollars from his grandpa when he turned my mom got remarried when he turned my mom got remarried when he turned my mom got remarried and my stepdads dad left a bunch of and my stepdads dad left a bunch of and my stepdads dad left a bunch of money to his blood grandchildren don't money to his blood grandchildren don't money to his blood grandchildren don't go getting any ideas like I inherited a go getting any ideas like I inherited a go getting any ideas like I inherited a bunch of money because I didn't get bunch of money because I didn't get bunch of money because I didn't get anything and I'm okay with it everything anything and I'm okay with it everything anything and I'm okay with it everything that I have has been earned by me and me that I have has been earned by me and me that I have has been earned by me and me alone I don't want anybody's handouts so alone I don't want anybody's handouts so alone I don't want anybody's handouts so back to the story within a year and a back to the story within a year and a back to the story within a year and a half my little brother only had a couple half my little brother only had a couple half my little brother only had a couple thousand dollars left now you might thousand dollars left now you might thousand dollars left now you might wonder how that happened well once the wonder how that happened well once the wonder how that happened well once the people around him found out that he had people around him found out that he had people around him found out that he had all this money they started to influence all this money they started to influence all this money they started to influence his spending all of the degenerates came his spending all of the degenerates came his spending all of the degenerates came out of the woodwork everyone I mean out of the woodwork everyone I mean out of the woodwork everyone I mean everyone became his friend and wanted everyone became his friend and wanted everyone became his friend and wanted him to spend money in a way that would him to spend money in a way that would him to spend money in a way that would benefit that he was young dumb and benefit that he was young dumb and benefit that he was young dumb and honestly a really nice kid they just honestly a really nice kid they just honestly a really nice kid they just wanted to please everybody and wanted wanted to please everybody and wanted wanted to please everybody and wanted everyone to be his friend it was an everyone to be his friend it was an everyone to be his friend it was an absolute disaster that quickly cleaned absolute disaster that quickly cleaned absolute disaster that quickly cleaned out his bank account and ultimately out his bank account and ultimately out his bank account and ultimately played a part in ending his life we all played a part in ending his life we all played a part in ending his life we all need to act more like adults and not let need to act more like adults and not let need to act more like adults and not let people push us around with how we spend people push us around with how we spend people push us around with how we spend our money it might not even come across our money it might not even come across our money it might not even come across in a straightforward and obvious way it in a straightforward and obvious way it in a straightforward and obvious way it can happen in a way that we don't even can happen in a way that we don't even can happen in a way that we don't even realize know what you are and know what realize know what you are and know what realize know what you are and know what you're not I think it's important to you're not I think it's important to you're not I think it's important to know who you are and the kind of life know who you are and the kind of life know who you are and the kind of life that you want to lead for example I'm that you want to lead for example I'm that you want to lead for example I'm not someone who values physical objects not someone who values physical objects not someone who values physical objects very highly I could care less how nice very highly I could care less how nice very highly I could care less how nice my car is I could care less what you my car is I could care less what you my car is I could care less what you think about the home that I live in and think about the home that I live in and think about the home that I live in and I could care less what you think about I could care less what you think about I could care less what you think about the clothes that I wear on a daily basis the clothes that I wear on a daily basis the clothes that I wear on a daily basis appearing wealthy is less important to appearing wealthy is less important to appearing wealthy is less important to me than actually being me than actually being me than actually being wealthy I've had this dream since I was wealthy I've had this dream since I was wealthy I've had this dream since I was a young lad probably about this high yay a young lad probably about this high yay a young lad probably about this high yay high now it's not as good as Martin high now it's not as good as Martin high now it's not as good as Martin Luther King Junior's dream but it's Luther King Junior's dream but it's Luther King Junior's dream but it's still a dream that motivates me but I still a dream that motivates me but I still a dream that motivates me but I have this dream to be one of those have this dream to be one of those have this dream to be one of those people with a ton of money who if you people with a ton of money who if you people with a ton of money who if you looked at them then you have no clue to looked at them then you have no clue to looked at them then you have no clue to the point where it would make you the point where it would make you the point where it would make you question your own personal decisions to question your own personal decisions to question your own personal decisions to achieve this lifestyle I don't buy achieve this lifestyle I don't buy achieve this lifestyle I don't buy really dumb because I know what I am and really dumb because I know what I am and really dumb because I know what I am and I know what I am NOT if you know what I know what I am NOT if you know what I know what I am NOT if you know what you are and you were very clear on that you are and you were very clear on that you are and you were very clear on that then that can help stop yourself before then that can help stop yourself before then that can help stop yourself before you hit that point of no return the goal you hit that point of no return the goal you hit that point of no return the goal is to be careful of lifestyle creep is to be careful of lifestyle creep is to be careful of lifestyle creep because once you increase your lifestyle because once you increase your lifestyle because once you increase your lifestyle and the level of spending is more and the level of spending is more and the level of spending is more difficult to bring yourself down if you difficult to bring yourself down if you difficult to bring yourself down if you have to I grew up around a couple that have to I grew up around a couple that have to I grew up around a couple that were some of the nicest people that I've were some of the nicest people that I've were some of the nicest people that I've ever met we'll call them Jack and Jill ever met we'll call them Jack and Jill ever met we'll call them Jack and Jill I cannot say a bad thing about their I cannot say a bad thing about their I cannot say a bad thing about their personalities and how they treated other personalities and how they treated other personalities and how they treated other people they were extremely kind and people they were extremely kind and people they were extremely kind and giving Jack and Jill appeared to have a giving Jack and Jill appeared to have a giving Jack and Jill appeared to have a ton of money now at one point I think ton of money now at one point I think ton of money now at one point I think that they did because they have pretty that they did because they have pretty that they did because they have pretty legit high-paying jobs it's the same legit high-paying jobs it's the same legit high-paying jobs it's the same story that we always hear though income story that we always hear though income story that we always hear though income increases lifestyle increases at the increases lifestyle increases at the increases lifestyle increases at the same rate if not faster income decreases same rate if not faster income decreases same rate if not faster income decreases lifestyle does not until it's forced to lifestyle does not until it's forced to lifestyle does not until it's forced to because you lose your house and because you lose your house and because you lose your house and everything in it I've learned to accept everything in it I've learned to accept everything in it I've learned to accept what I am and know what I don't want to what I am and know what I don't want to what I am and know what I don't want to be I'm someone who just wants to live a be I'm someone who just wants to live a be I'm someone who just wants to live a simple life that isn't dictated by the simple life that isn't dictated by the simple life that isn't dictated by the things that I buy I'm not someone who things that I buy I'm not someone who things that I buy I'm not someone who needs to wear fancy schmancy clothes I needs to wear fancy schmancy clothes I needs to wear fancy schmancy clothes I like wearing my jeans steel toed boots like wearing my jeans steel toed boots like wearing my jeans steel toed boots and a cheap American Apparel shirt I and a cheap American Apparel shirt I and a cheap American Apparel shirt I don't want to become a slave to the don't want to become a slave to the don't want to become a slave to the things that I own because the things things that I own because the things things that I own because the things that you own will eventually start that you own will eventually start that you own will eventually start owning you if you're not careful things owning you if you're not careful things owning you if you're not careful things you own end up owning me if you know you own end up owning me if you know you own end up owning me if you know what you aren't then that's gonna give what you aren't then that's gonna give what you aren't then that's gonna give you a chance to catch yourself before you a chance to catch yourself before you a chance to catch yourself before you commit to buying something that you you commit to buying something that you you commit to buying something that you know just isn't you if I'm being know just isn't you if I'm being know just isn't you if I'm being completely honest with you I actually completely honest with you I actually completely honest with you I actually laugh the people who live extremely laugh the people who live extremely laugh the people who live extremely lavishly because it makes me wonder what lavishly because it makes me wonder what lavishly because it makes me wonder what their mental state would be if we took their mental state would be if we took their mental state would be if we took those things away my guess is that the those things away my guess is that the those things away my guess is that the majority of their sense of purpose is majority of their sense of purpose is majority of their sense of purpose is tied to the objects that they own just tied to the objects that they own just tied to the objects that they own just like one of my favorite stoic like one of my favorite stoic like one of my favorite stoic philosophers Seneca once said a wise man philosophers Seneca once said a wise man philosophers Seneca once said a wise man uses many things but needs uses many things but needs uses many things but needs none of them if you were someone who has none of them if you were someone who has none of them if you were someone who has an expensive tastes then that's fine an expensive tastes then that's fine an expensive tastes then that's fine don't beat yourself up about it don't beat yourself up about it don't beat yourself up about it just need to be a little bit more just need to be a little bit more just need to be a little bit more careful and aware of your natural careful and aware of your natural careful and aware of your natural tendencies this by no means makes you a tendencies this by no means makes you a tendencies this by no means makes you a bad person or even an idiot but it does bad person or even an idiot but it does bad person or even an idiot but it does make you even more vulnerable to make you even more vulnerable to make you even more vulnerable to spending money that you know you spending money that you know you spending money that you know you shouldn't on things that don't actually shouldn't on things that don't actually shouldn't on things that don't actually make you happy I saved money by keeping make you happy I saved money by keeping make you happy I saved money by keeping my ego in check at all times everyone's my ego in check at all times everyone's my ego in check at all times everyone's got one but we all kind of suck at got one but we all kind of suck at got one but we all kind of suck at putting it in its place when it matters putting it in its place when it matters putting it in its place when it matters the most the most the most if we let our ego go unchecked for long if we let our ego go unchecked for long if we let our ego go unchecked for long enough then it makes us lose touch with enough then it makes us lose touch with enough then it makes us lose touch with the reality we start to become a glutton the reality we start to become a glutton the reality we start to become a glutton for everything around us the thought of for everything around us the thought of for everything around us the thought of how important you are and why you need how important you are and why you need how important you are and why you need to buy this or that starts to consume to buy this or that starts to consume to buy this or that starts to consume your actions but it doesn't stop there your actions but it doesn't stop there your actions but it doesn't stop there though this spending spree eventually though this spending spree eventually though this spending spree eventually starts to go down the path of buying starts to go down the path of buying starts to go down the path of buying things to impress people or make them things to impress people or make them things to impress people or make them look at you in a certain positive light look at you in a certain positive light look at you in a certain positive light you start to think that you deserve you start to think that you deserve you start to think that you deserve things because of who you are what things because of who you are what things because of who you are what you've done the hard work you've put in you've done the hard work you've put in you've done the hard work you've put in or for the sheer fact that you're or for the sheer fact that you're or for the sheer fact that you're breathing could you imagine how big of a breathing could you imagine how big of a breathing could you imagine how big of a mess our lives would be if when we were mess our lives would be if when we were mess our lives would be if when we were younger we got everything we wanted I younger we got everything we wanted I younger we got everything we wanted I mean holy smokes I'd probably have some mean holy smokes I'd probably have some mean holy smokes I'd probably have some of the ugly actually I know that I would of the ugly actually I know that I would of the ugly actually I know that I would have some of the ugliest tattoos on my have some of the ugliest tattoos on my have some of the ugliest tattoos on my body right now body right now body right now and I probably would have accumulated and I probably would have accumulated and I probably would have accumulated piles and piles of pricey clothes that piles and piles of pricey clothes that piles and piles of pricey clothes that are most likely somewhere in a landfill are most likely somewhere in a landfill are most likely somewhere in a landfill by now I mean thank goodness that I by now I mean thank goodness that I by now I mean thank goodness that I either didn't have the money wasn't old either didn't have the money wasn't old either didn't have the money wasn't old enough or just wasn't allowed to buy enough or just wasn't allowed to buy enough or just wasn't allowed to buy those things as children we don't those things as children we don't those things as children we don't understand how powerful our egos really understand how powerful our egos really understand how powerful our egos really are I mean hell even as an adult it's are I mean hell even as an adult it's are I mean hell even as an adult it's easy to forget I'd love to tell you that easy to forget I'd love to tell you that easy to forget I'd love to tell you that I've mastered this but I personally I've mastered this but I personally I've mastered this but I personally haven't it's something that has to be at haven't it's something that has to be at haven't it's something that has to be at the top of my mind on a regular basis at the top of my mind on a regular basis at the top of my mind on a regular basis at least a handful of times this year least a handful of times this year least a handful of times this year I personally caught myself wanting to I personally caught myself wanting to I personally caught myself wanting to buy something not because I actually buy something not because I actually buy something not because I actually wanted it but because I thought that it wanted it but because I thought that it wanted it but because I thought that it would impress people if they knew that I would impress people if they knew that I would impress people if they knew that I had it luckily I've spent years and had it luckily I've spent years and had it luckily I've spent years and years working on checking my ego at the years working on checking my ego at the years working on checking my ego at the door so I was able to stop myself before door so I was able to stop myself before door so I was able to stop myself before any money left my pocket social media any money left my pocket social media any money left my pocket social media makes it so much easier to share what's makes it so much easier to share what's makes it so much easier to share what's going on in our lives going on in our lives going on in our lives that we start to spend money and do that we start to spend money and do that we start to spend money and do things that are more shareable our things that are more shareable our things that are more shareable our actions become less genuine and more ego actions become less genuine and more ego actions become less genuine and more ego filled once again I am NOT saying that filled once again I am NOT saying that filled once again I am NOT saying that you shouldn't spend money on nice things you shouldn't spend money on nice things you shouldn't spend money on nice things but ultimately you need to take a step but ultimately you need to take a step but ultimately you need to take a step back before making that purchase and ask back before making that purchase and ask back before making that purchase and ask yourself if no one ever knew that I had yourself if no one ever knew that I had yourself if no one ever knew that I had this then what I still buy it if this then what I still buy it if this then what I still buy it if I could will say never show this to I could will say never show this to I could will say never show this to anyone then what I still buy I pay very anyone then what I still buy I pay very anyone then what I still buy I pay very very close attention to people I come in very close attention to people I come in very close attention to people I come in contact with they are the best teachers contact with they are the best teachers contact with they are the best teachers on what not to do with my money or my on what not to do with my money or my on what not to do with my money or my life think of someone in your life that life think of someone in your life that life think of someone in your life that you know for a fact that you never want you know for a fact that you never want you know for a fact that you never want to become there are those people that to become there are those people that to become there are those people that always make you slightly turn your head always make you slightly turn your head always make you slightly turn your head and think to yourself wow that is insane and think to yourself wow that is insane and think to yourself wow that is insane why would you do that why would you do that why would you do that is this real life it can be someone that is this real life it can be someone that is this real life it can be someone that you've known in the past or right now it you've known in the past or right now it you've known in the past or right now it can be someone that you've never can be someone that you've never can be someone that you've never actually met but I've noticed something actually met but I've noticed something actually met but I've noticed something that they did heck it could even be you that they did heck it could even be you that they did heck it could even be you from the past this exercise isn't from the past this exercise isn't from the past this exercise isn't intended for you to look down on other intended for you to look down on other intended for you to look down on other people but instead it's a way for you to people but instead it's a way for you to people but instead it's a way for you to evaluate your actions based on what evaluate your actions based on what evaluate your actions based on what someone else is doing even the thought someone else is doing even the thought someone else is doing even the thought of potentially doing what they're doing of potentially doing what they're doing of potentially doing what they're doing should absolutely disgust you to your should absolutely disgust you to your should absolutely disgust you to your core the last thing you want to do is core the last thing you want to do is core the last thing you want to do is become them so you have to do the become them so you have to do the become them so you have to do the complete opposite and if you don't have complete opposite and if you don't have complete opposite and if you don't have anybody like this in your life then make anybody like this in your life then make anybody like this in your life then make them up in your head make up the most them up in your head make up the most them up in your head make up the most ugly horrible person in your head and be ugly horrible person in your head and be ugly horrible person in your head and be the absolute opposite of that person the absolute opposite of that person the absolute opposite of that person check out these videos to our left the check out these videos to our left the check out these videos to our left the top one will take you to a playlist that top one will take you to a playlist that top one will take you to a playlist that has all of my financial independence has all of my financial independence has all of my financial independence retire early videos to help you reach it retire early videos to help you reach it retire early videos to help you reach it faster the bottom one will take you to a faster the bottom one will take you to a faster the bottom one will take you to a video that I made on how I save and video that I made on how I save and video that I made on how I save and invest percent of my income every invest percent of my income every invest percent of my income every single month don't forget to Hulk smash single month don't forget to Hulk smash single month don't forget to Hulk smash that thumbs up button thanks for that thumbs up button thanks for that thumbs up button thanks for watching I'll see you in the next one watching I'll see you in the next one watching I'll see you in the next one friends videos WEBVTT Kind: captions Language: en I am grants Abbate I am the creator of I am grants Abbate I am the creator of I am grants Abbate I am the creator of millennial money and the author of millennial money and the author of millennial money and the author of financial freedom financial freedom financial freedom [Music] [Music] [Music] when I graduated from college I bounced when I graduated from college I bounced when I graduated from college I bounced around for different jobs I never found around for different jobs I never found around for different jobs I never found the right fit and so at the age of I the right fit and so at the age of I the right fit and so at the age of I was completely broke and had to actually was completely broke and had to actually was completely broke and had to actually move back home with my parents and kind move back home with my parents and kind move back home with my parents and kind of start over and even though my parents of start over and even though my parents of start over and even though my parents wouldn't say that they were worried I wouldn't say that they were worried I wouldn't say that they were worried I could just see it in their eyes and that could just see it in their eyes and that could just see it in their eyes and that bothered me the most and so I was like bothered me the most and so I was like bothered me the most and so I was like why am I so stressed about money why are why am I so stressed about money why are why am I so stressed about money why are my parents still stressed about money is my parents still stressed about money is my parents still stressed about money is there another way so once I had set my there another way so once I had set my there another way so once I had set my goal to save a million dollars the first goal to save a million dollars the first goal to save a million dollars the first thing that I did is I built a skill set thing that I did is I built a skill set thing that I did is I built a skill set that I knew that I could monetize and so that I knew that I could monetize and so that I knew that I could monetize and so then I just searched on my phone Google then I just searched on my phone Google then I just searched on my phone Google mobile ads and I saw what came up the mobile ads and I saw what came up the mobile ads and I saw what came up the first thing was an article from first thing was an article from first thing was an article from eMarketer but it projected that jobs eMarketer but it projected that jobs eMarketer but it projected that jobs running Google campaigns were projected running Google campaigns were projected running Google campaigns were projected to grow % so I taught myself how to to grow % so I taught myself how to to grow % so I taught myself how to run Google campaigns the first website I run Google campaigns the first website I run Google campaigns the first website I ever built was for $ for a lawyer in ever built was for $ for a lawyer in ever built was for $ for a lawyer in Chicago and then he actually ended up Chicago and then he actually ended up Chicago and then he actually ended up introducing me to an association of introducing me to an association of introducing me to an association of lawyers in Chicago and I started meeting lawyers in Chicago and I started meeting lawyers in Chicago and I started meeting others so I started building $, others so I started building $, others so I started building $, websites within three months of building websites within three months of building websites within three months of building a $ website I sold my first $, a $ website I sold my first $, a $ website I sold my first $, project so I was off to the races project so I was off to the races project so I was off to the races [Music] [Music] [Music] all of my money during my financial all of my money during my financial all of my money during my financial independence journey literally I independence journey literally I independence journey literally I wouldn't keep more than two or three wouldn't keep more than two or three wouldn't keep more than two or three thousand dollars in my checking account thousand dollars in my checking account thousand dollars in my checking account everything was invested index funds so everything was invested index funds so everything was invested index funds so Vanguard total stock market index fund Vanguard total stock market index fund Vanguard total stock market index fund Amazon stock and I had Facebook stock in Amazon stock and I had Facebook stock in Amazon stock and I had Facebook stock in a couple of others and so I became a couple of others and so I became a couple of others and so I became financially independent shortly after financially independent shortly after financially independent shortly after becoming thirty I was completely burnt becoming thirty I was completely burnt becoming thirty I was completely burnt out even though I had all the money I out even though I had all the money I out even though I had all the money I needed and I ended up having to over a needed and I ended up having to over a needed and I ended up having to over a year-and-a-half kind of detox from all year-and-a-half kind of detox from all year-and-a-half kind of detox from all those years of working -hour weeks those years of working -hour weeks those years of working -hour weeks and traveling and all the crazy stuff and traveling and all the crazy stuff and traveling and all the crazy stuff that I did to my body and completely that I did to my body and completely that I did to my body and completely change and transition out of that phase change and transition out of that phase change and transition out of that phase of my life of my life of my life in order to create some new space for in order to create some new space for in order to create some new space for kind of the new me to show up so I kind of the new me to show up so I kind of the new me to show up so I personally if I was just one person personally if I was just one person personally if I was just one person myself and I was in control of my entire myself and I was in control of my entire myself and I was in control of my entire life life life I could live on less than $, a year I could live on less than $, a year I could live on less than $, a year you know I'd live somewhere else in the you know I'd live somewhere else in the you know I'd live somewhere else in the United States on a nice piece of United States on a nice piece of United States on a nice piece of property with a piece of land but the property with a piece of land but the property with a piece of land but the reality is I'm married and I have a reality is I'm married and I have a reality is I'm married and I have a wonderful partner who I love a lot who wonderful partner who I love a lot who wonderful partner who I love a lot who wants to live a different type of wants to live a different type of wants to live a different type of lifestyle that I want to live in a lifestyle that I want to live in a lifestyle that I want to live in a different City and so were two people different City and so were two people different City and so were two people and so we've been able to adjust our and so we've been able to adjust our and so we've been able to adjust our finances to accomplish that I think it's finances to accomplish that I think it's finances to accomplish that I think it's important to note also that even though important to note also that even though important to note also that even though I plan to spend almost thousand I plan to spend almost thousand I plan to spend almost thousand dollars this year I don't plan to spend dollars this year I don't plan to spend dollars this year I don't plan to spend that amount of money for the rest of my that amount of money for the rest of my that amount of money for the rest of my life you know I set myself up for the life you know I set myself up for the life you know I set myself up for the next couple of years and then and then I next couple of years and then and then I next couple of years and then and then I pivot I don't know what's gonna happen I pivot I don't know what's gonna happen I pivot I don't know what's gonna happen I don't know where I'm gonna go and I don't know where I'm gonna go and I don't know where I'm gonna go and I don't let myself get stressed out too don't let myself get stressed out too don't let myself get stressed out too far ahead I just you know appropriately far ahead I just you know appropriately far ahead I just you know appropriately hedge for a level that helps me sleep at hedge for a level that helps me sleep at hedge for a level that helps me sleep at night and I think that's the thing about night and I think that's the thing about night and I think that's the thing about the fire movement is a lot of people and the fire movement is a lot of people and the fire movement is a lot of people and I was like this way I was so religious I was like this way I was so religious I was like this way I was so religious about my spreadsheets and about my about my spreadsheets and about my about my spreadsheets and about my numbers and everything coming in part of numbers and everything coming in part of numbers and everything coming in part of me growing as a person has been letting me growing as a person has been letting me growing as a person has been letting go of some of that not over optimizing go of some of that not over optimizing go of some of that not over optimizing not not not with everything you know spending my with everything you know spending my with everything you know spending my time focusing on other things time focusing on other things time focusing on other things [Music] [Music] [Music] yeah I got some groceries financial yeah I got some groceries financial yeah I got some groceries financial independence the million dollars chasing independence the million dollars chasing independence the million dollars chasing all this stuff all this stuff all this stuff none of the freedom matters if you don't none of the freedom matters if you don't none of the freedom matters if you don't take advantage of it life is a beach and take advantage of it life is a beach and take advantage of it life is a beach and money is freedom I was like money money money is freedom I was like money money money is freedom I was like money money is freedom it's one I remember saying is freedom it's one I remember saying is freedom it's one I remember saying during the most and I think it is during the most and I think it is during the most and I think it is freedom there are people that I know freedom there are people that I know freedom there are people that I know that have to work really hard at my age that have to work really hard at my age that have to work really hard at my age and you know that's something I chose and you know that's something I chose and you know that's something I chose not to do because I thought my family do not to do because I thought my family do not to do because I thought my family do it it it my mother is she still waits tables my mother is she still waits tables my mother is she still waits tables and so if you have six months of and so if you have six months of and so if you have six months of expenses saved you have freedom in your expenses saved you have freedom in your expenses saved you have freedom in your life if you have two years of expenses life if you have two years of expenses life if you have two years of expenses you have freedom in your life and for me you have freedom in your life and for me you have freedom in your life and for me I was so blind that I just had to get to I was so blind that I just had to get to I was so blind that I just had to get to the goal I didn't realize that so much the goal I didn't realize that so much the goal I didn't realize that so much of what I was craving I already had and of what I was craving I already had and of what I was craving I already had and so that's why part of financial freedom so that's why part of financial freedom so that's why part of financial freedom that's why I called it that is this idea that's why I called it that is this idea that's why I called it that is this idea is that you already have so much more is that you already have so much more is that you already have so much more freedom than you realize and you're freedom than you realize and you're freedom than you realize and you're gonna be acquiring more of it as you gonna be acquiring more of it as you gonna be acquiring more of it as you make more money in your life and so you make more money in your life and so you make more money in your life and so you don't have to get to this point that I'm don't have to get to this point that I'm don't have to get to this point that I'm at to live a rich life you know you can at to live a rich life you know you can at to live a rich life you know you can do that now today don't waste time do that now today don't waste time do that now today don't waste time [Music] WEBVTT Kind: captions Language: en it's brian preston the muddy guy how do it's brian preston the muddy guy how do it's brian preston the muddy guy how do you structure your accounts for you structure your accounts for you structure your accounts for retirement especially for somebody who's retirement especially for somebody who's retirement especially for somebody who's in the fire movement so you're not in the fire movement so you're not in the fire movement so you're not leaving a stone unturned on this no I leaving a stone unturned on this no I leaving a stone unturned on this no I think it's so interesting bran we talked think it's so interesting bran we talked think it's so interesting bran we talked about out there in the blogosphere and about out there in the blogosphere and about out there in the blogosphere and the podcast Oh sphere and the YouTuber the podcast Oh sphere and the YouTuber the podcast Oh sphere and the YouTuber sphere people all the rooms do you'll sphere people all the rooms do you'll sphere people all the rooms do you'll make I'm gonna I'm gonna have like three make I'm gonna I'm gonna have like three make I'm gonna I'm gonna have like three more before the end how many times we more before the end how many times we more before the end how many times we see people talk about sequence of return see people talk about sequence of return see people talk about sequence of return or withdrawal rates and but how often is or withdrawal rates and but how often is or withdrawal rates and but how often is dismissed dismissed dismissed yeah yeah about this this is some money yeah yeah about this this is some money yeah yeah about this this is some money guys special sauce I think yeah we and guys special sauce I think yeah we and guys special sauce I think yeah we and and I think beau came up with this as and I think beau came up with this as and I think beau came up with this as you could tell he's amazing he's in the you could tell he's amazing he's in the you could tell he's amazing he's in the mood to make it Webster try to give us mood to make it Webster try to give us mood to make it Webster try to give us him Webster but he's got sequence of him Webster but he's got sequence of him Webster but he's got sequence of distribution risk and really what he's distribution risk and really what he's distribution risk and really what he's talking about here is tax our account talking about here is tax our account talking about here is tax our account location exactly right so cuz this is location exactly right so cuz this is location exactly right so cuz this is important because we all know and let me important because we all know and let me important because we all know and let me give you the the big three you've got give you the the big three you've got give you the the big three you've got your after tax accounts which is this is your after tax accounts which is this is your after tax accounts which is this is your normal taxable brokerage account your normal taxable brokerage account your normal taxable brokerage account that you could set up for yourself or that you could set up for yourself or that you could set up for yourself or jointly anything usually you have and jointly anything usually you have and jointly anything usually you have and this is gonna be your bigger one it's this is gonna be your bigger one it's this is gonna be your bigger one it's like your tax deferred this is all your like your tax deferred this is all your like your tax deferred this is all your retirement accounts that and what's cool retirement accounts that and what's cool retirement accounts that and what's cool about a tax deferred is that you get a about a tax deferred is that you get a about a tax deferred is that you get a tax deduction when you put the money in tax deduction when you put the money in tax deduction when you put the money in but when you pull it out unfortunately but when you pull it out unfortunately but when you pull it out unfortunately it's going to pay ordinary income tax it's going to pay ordinary income tax it's going to pay ordinary income tax rates and then our favorite one is the rates and then our favorite one is the rates and then our favorite one is the tax free bucket so you hear these those tax free bucket so you hear these those tax free bucket so you hear these those three things so when we talk about asset three things so when we talk about asset three things so when we talk about asset allocation is how you spread your money allocation is how you spread your money allocation is how you spread your money between large cap international cash between large cap international cash between large cap international cash bonds nobody ever talks about tax bonds nobody ever talks about tax bonds nobody ever talks about tax diversification of your account types so diversification of your account types so diversification of your account types so we actually created some money guys we actually created some money guys we actually created some money guys rules of success for each one of these rules of success for each one of these rules of success for each one of these so but let's kind of jump into them why so but let's kind of jump into them why so but let's kind of jump into them why don't you talk them talk to them about don't you talk them talk to them about don't you talk them talk to them about after-tax and taxable brokerage account after-tax and taxable brokerage account after-tax and taxable brokerage account yeah so the the unique thing about each yeah so the the unique thing about each yeah so the the unique thing about each one of these accounts you already one of these accounts you already one of these accounts you already mentioned is they're kind of taxed at mentioned is they're kind of taxed at mentioned is they're kind of taxed at different now you have access to the different now you have access to the different now you have access to the accounts at different points in time accounts at different points in time accounts at different points in time they're taxed at different points so they're taxed at different points so they're taxed at different points so what you hold inside of them should be what you hold inside of them should be what you hold inside of them should be different because of that so when you different because of that so when you different because of that so when you look at your taxable investment accounts look at your taxable investment accounts look at your taxable investment accounts they're often taxed at favorable capital they're often taxed at favorable capital they're often taxed at favorable capital gains rates if you have long term gains rates if you have long term gains rates if you have long term holdings and you want to sell a holding holdings and you want to sell a holding holdings and you want to sell a holding you pay a capital gain rate instead of you pay a capital gain rate instead of you pay a capital gain rate instead of ordinary income you can also have ordinary income you can also have ordinary income you can also have qualified dividends that payout at a qualified dividends that payout at a qualified dividends that payout at a more favorable rate so the types of more favorable rate so the types of more favorable rate so the types of assets that you want to hold inside of assets that you want to hold inside of assets that you want to hold inside of your taxable account would not be like your taxable account would not be like your taxable account would not be like ordinary ordinary ordinary income producing assets it might not be income producing assets it might not be income producing assets it might not be thing like bonds they're gonna spit out thing like bonds they're gonna spit out thing like bonds they're gonna spit out dividend payments to you that don't get dividend payments to you that don't get dividend payments to you that don't get qualified treatment the other thing qualified treatment the other thing qualified treatment the other thing that's beautiful about after-tax assets that's beautiful about after-tax assets that's beautiful about after-tax assets is that you actually can access those is that you actually can access those is that you actually can access those dollars before fifty nine and a half you dollars before fifty nine and a half you dollars before fifty nine and a half you know with most IRAs and ks you have know with most IRAs and ks you have know with most IRAs and ks you have to wait until you get to age and a to wait until you get to age and a to wait until you get to age and a half or else you're gonna have to pay a half or else you're gonna have to pay a half or else you're gonna have to pay a % penalty with your after-tax assets a % penalty with your after-tax assets a % penalty with your after-tax assets a lot of times especially for fire folks lot of times especially for fire folks lot of times especially for fire folks that's the bridge money to get you to that's the bridge money to get you to that's the bridge money to get you to that magical and a half age where you that magical and a half age where you that magical and a half age where you can start getting to some of your other can start getting to some of your other can start getting to some of your other assets and resources yeah I mean it is assets and resources yeah I mean it is assets and resources yeah I mean it is totally this is your liquid easiest totally this is your liquid easiest totally this is your liquid easiest access money you can get now well I want access money you can get now well I want access money you can get now well I want to give one cautionary tells because we to give one cautionary tells because we to give one cautionary tells because we all want to take advantage of the all want to take advantage of the all want to take advantage of the capital gains we want to take advantage capital gains we want to take advantage capital gains we want to take advantage of the dividends because we lo love that of the dividends because we lo love that of the dividends because we lo love that lower tax rate but here's the word of lower tax rate but here's the word of lower tax rate but here's the word of caution if you're quickly approaching caution if you're quickly approaching caution if you're quickly approaching retirement and you want to be at that retirement and you want to be at that retirement and you want to be at that stage where you are living off of these stage where you are living off of these stage where you are living off of these resources be careful of making sure you resources be careful of making sure you resources be careful of making sure you don't have just one total portfolio of don't have just one total portfolio of don't have just one total portfolio of appreciated holdings right that's a appreciated holdings right that's a appreciated holdings right that's a great charitable planning opportunity great charitable planning opportunity great charitable planning opportunity but as you get closer to retirement I'm but as you get closer to retirement I'm but as you get closer to retirement I'm talking about three to seven years from talking about three to seven years from talking about three to seven years from retirement make sure you have something retirement make sure you have something retirement make sure you have something that's where you probably would want to that's where you probably would want to that's where you probably would want to bring on those things that aren't as tax bring on those things that aren't as tax bring on those things that aren't as tax efficient like bonds or keeping a little efficient like bonds or keeping a little efficient like bonds or keeping a little extra cash in there because you're gonna extra cash in there because you're gonna extra cash in there because you're gonna need some money that you can actually need some money that you can actually need some money that you can actually pull it out without creating more taxes pull it out without creating more taxes pull it out without creating more taxes if you want to manage your after-tax if you want to manage your after-tax if you want to manage your after-tax account well one of the things you can account well one of the things you can account well one of the things you can do is you can tax manage it through time do is you can tax manage it through time do is you can tax manage it through time here's a really great example that's here's a really great example that's here's a really great example that's practical and kind of recent to memory practical and kind of recent to memory practical and kind of recent to memory in the fourth quarter of last year the in the fourth quarter of last year the in the fourth quarter of last year the market really got hit hard I think SMP market really got hit hard I think SMP market really got hit hard I think SMP was down like % we made the decision was down like % we made the decision was down like % we made the decision as a firm for our clients we were gonna as a firm for our clients we were gonna as a firm for our clients we were gonna go in and change the investment go in and change the investment go in and change the investment allocations and try to batten down the allocations and try to batten down the allocations and try to batten down the hatches because we think it makes sense hatches because we think it makes sense hatches because we think it makes sense to get risk right on the front end one to get risk right on the front end one to get risk right on the front end one thing we were able to do though for our thing we were able to do though for our thing we were able to do though for our clients who have taxable assets is we're clients who have taxable assets is we're clients who have taxable assets is we're able to go and do loss harvesting in the able to go and do loss harvesting in the able to go and do loss harvesting in the fourth quarter not changing the fourth quarter not changing the fourth quarter not changing the composition of their portfolio but going composition of their portfolio but going composition of their portfolio but going and capitalizing on those losses and capitalizing on those losses and capitalizing on those losses harvesting those using that to offset harvesting those using that to offset harvesting those using that to offset some of those embedded gains that have some of those embedded gains that have some of those embedded gains that have been long-term so that over the life of been long-term so that over the life of been long-term so that over the life of that clients retirement or accumulation that clients retirement or accumulation that clients retirement or accumulation stage we can tax manage that so when stage we can tax manage that so when stage we can tax manage that so when they get to retirement they don't just they get to retirement they don't just they get to retirement they don't just have a bunch of holdings then have huge have a bunch of holdings then have huge have a bunch of holdings then have huge embedded gains and are gonna be costly embedded gains and are gonna be costly embedded gains and are gonna be costly to get to and it's the same thing the to get to and it's the same thing the to get to and it's the same thing the charitable giving just hitting on that charitable giving just hitting on that charitable giving just hitting on that again is if you do it right if you're a again is if you do it right if you're a again is if you do it right if you're a person that's person that's person that's are giving a decent sum every year are giving a decent sum every year are giving a decent sum every year there's ways if you have appreciated there's ways if you have appreciated there's ways if you have appreciated Holdings that we can over time push up Holdings that we can over time push up Holdings that we can over time push up the tax basis right by using a giving the tax basis right by using a giving the tax basis right by using a giving strategy so that by the time you strategy so that by the time you strategy so that by the time you actually hit retirement you have easier actually hit retirement you have easier actually hit retirement you have easier access to your after-tax money without access to your after-tax money without access to your after-tax money without uncle getting a big portion of it right uncle getting a big portion of it right uncle getting a big portion of it right so let's move on to the biggest pot that so let's move on to the biggest pot that so let's move on to the biggest pot that most people have because when you know most people have because when you know most people have because when you know you read like books like every day you read like books like every day you read like books like every day millionaires chris hogan talks about millionaires chris hogan talks about millionaires chris hogan talks about your biggest account that most people your biggest account that most people your biggest account that most people have that makes them a millionaire is have that makes them a millionaire is have that makes them a millionaire is their for work k so they're talking their for work k so they're talking their for work k so they're talking about these pre-tax tax deferred about these pre-tax tax deferred about these pre-tax tax deferred accounts and the reason these accounts accounts and the reason these accounts accounts and the reason these accounts get so big is it's not only good get so big is it's not only good get so big is it's not only good behavior from you the individual because behavior from you the individual because behavior from you the individual because a lot of times your employer will say a lot of times your employer will say a lot of times your employer will say you give us six or eight percent will you give us six or eight percent will you give us six or eight percent will give you fifty cents on the dollar even give you fifty cents on the dollar even give you fifty cents on the dollar even a hundred percent dollar for dollar a hundred percent dollar for dollar a hundred percent dollar for dollar match aka free money free money you guys match aka free money free money you guys match aka free money free money you guys are you're not fools there's a reason are you're not fools there's a reason are you're not fools there's a reason you're watching this show so you're you're watching this show so you're you're watching this show so you're automatically creating that behavior of automatically creating that behavior of automatically creating that behavior of saving every month whether the markets saving every month whether the markets saving every month whether the markets going up well the markets going down going up well the markets going down going up well the markets going down you're buying and then voila it's like you're buying and then voila it's like you're buying and then voila it's like magic it's like you know jack and his magic it's like you know jack and his magic it's like you know jack and his magic beans you look later and go holy magic beans you look later and go holy magic beans you look later and go holy cow how did this thing get so big it cow how did this thing get so big it cow how did this thing get so big it really is this is why these pre-tax tax really is this is why these pre-tax tax really is this is why these pre-tax tax deferred accounts get so huge it's great deferred accounts get so huge it's great deferred accounts get so huge it's great behavior so just like we talked about behavior so just like we talked about behavior so just like we talked about how you don't want to own assets that how you don't want to own assets that how you don't want to own assets that generate ordinary income inside of your generate ordinary income inside of your generate ordinary income inside of your taxable account the exact opposite is taxable account the exact opposite is taxable account the exact opposite is true inside of your tax deferred account true inside of your tax deferred account true inside of your tax deferred account if you do have a bond allocation or if you do have a bond allocation or if you do have a bond allocation or fixed income allocation or holdings that fixed income allocation or holdings that fixed income allocation or holdings that generate a lot of ordinary income a generate a lot of ordinary income a generate a lot of ordinary income a great place to hold those is inside of great place to hold those is inside of great place to hold those is inside of your K or inside of your IRA so that your K or inside of your IRA so that your K or inside of your IRA so that you're not having to pay tax on that you're not having to pay tax on that you're not having to pay tax on that income that's generated every year as income that's generated every year as income that's generated every year as you're building up your asset now if you're building up your asset now if you're building up your asset now if you've done this the traditional way you've done this the traditional way you've done this the traditional way which is tax deferred meaning you took a which is tax deferred meaning you took a which is tax deferred meaning you took a tax deduction when you made the tax deduction when you made the tax deduction when you made the contribution but when you pull it out contribution but when you pull it out contribution but when you pull it out you know you go pay ordinary income tax you know you go pay ordinary income tax you know you go pay ordinary income tax rate that's going to create some big rate that's going to create some big rate that's going to create some big taxes especially when you reach and a taxes especially when you reach and a taxes especially when you reach and a half because the government makes you half because the government makes you half because the government makes you yep it's and a half take those yep it's and a half take those yep it's and a half take those required minimum distributions however required minimum distributions however required minimum distributions however both you said you know cuz this our both you said you know cuz this our both you said you know cuz this our newer generation I guess this has been newer generation I guess this has been newer generation I guess this has been around probably going on a decade now around probably going on a decade now around probably going on a decade now maybe a little over a decade a lot of maybe a little over a decade a lot of maybe a little over a decade a lot of employer plans like I was even working employer plans like I was even working employer plans like I was even working on something for a family member they on something for a family member they on something for a family member they have a Roth k account option walk have a Roth k account option walk have a Roth k account option walk them through because on them through because on them through because on we've done shows on but it's worth just we've done shows on but it's worth just we've done shows on but it's worth just giving a throw out well how we deal with giving a throw out well how we deal with giving a throw out well how we deal with that so we absolutely love Roth that's that so we absolutely love Roth that's that so we absolutely love Roth that's love Roth assets love building Roth love Roth assets love building Roth love Roth assets love building Roth assets inside of like a k retirement assets inside of like a k retirement assets inside of like a k retirement plan plan plan however Roth is not always the best however Roth is not always the best however Roth is not always the best decision we think there's a really easy decision we think there's a really easy decision we think there's a really easy rule of thumb that you can deploy or rule of thumb that you can deploy or rule of thumb that you can deploy or employ to determine if you should be employ to determine if you should be employ to determine if you should be doing Roth contributions or pre-tax it doing Roth contributions or pre-tax it doing Roth contributions or pre-tax it really depends on where your tax rate really depends on where your tax rate really depends on where your tax rate falls if you look at your federal tax falls if you look at your federal tax falls if you look at your federal tax rate and your state tax rate then you rate and your state tax rate then you rate and your state tax rate then you add those two up and it's above % then add those two up and it's above % then add those two up and it's above % then odds are you ought to be doing pre-tax odds are you ought to be doing pre-tax odds are you ought to be doing pre-tax because that is a very very attractive because that is a very very attractive because that is a very very attractive tax benefit in the current year because tax benefit in the current year because tax benefit in the current year because the thought is when you retire you can the thought is when you retire you can the thought is when you retire you can bite but there's a good potential you'll bite but there's a good potential you'll bite but there's a good potential you'll be in a lower tax bracket so it's a it's be in a lower tax bracket so it's a it's be in a lower tax bracket so it's a it's a measurement of those two either save a measurement of those two either save a measurement of those two either save tax now at this rate and pay tax later tax now at this rate and pay tax later tax now at this rate and pay tax later at this rate rebe I'm using my hands I at this rate rebe I'm using my hands I at this rate rebe I'm using my hands I see it but if you're someone who you add see it but if you're someone who you add see it but if you're someone who you add up your federal rate and you add up your up your federal rate and you add up your up your federal rate and you add up your state rate and they are less than state rate and they are less than state rate and they are less than percent well now you can make the percent well now you can make the percent well now you can make the argument especially if you're someone argument especially if you're someone argument especially if you're someone who's younger that building up those who's younger that building up those who's younger that building up those Roth assets can be huge if you're early Roth assets can be huge if you're early Roth assets can be huge if you're early in your career there's a chance that you in your career there's a chance that you in your career there's a chance that you might have higher income in retirement might have higher income in retirement might have higher income in retirement then building up those Roth assets is then building up those Roth assets is then building up those Roth assets is something you definitely want to something you definitely want to something you definitely want to consider and look at if you're between consider and look at if you're between consider and look at if you're between that to that's where it gets a that to that's where it gets a that to that's where it gets a little bit more nuanced and maybe you little bit more nuanced and maybe you little bit more nuanced and maybe you might would do a splitting strategy you might would do a splitting strategy you might would do a splitting strategy you have to take into account timing of have to take into account timing of have to take into account timing of retirement age risk tolerance account retirement age risk tolerance account retirement age risk tolerance account structure tax code in the state that you structure tax code in the state that you structure tax code in the state that you live in because a lot of states will live in because a lot of states will live in because a lot of states will give retirement exclusions together so give retirement exclusions together so give retirement exclusions together so and I want to do one last planning thing and I want to do one last planning thing and I want to do one last planning thing before we move on to tax free my before we move on to tax free my before we move on to tax free my favorite one is that guys especially favorite one is that guys especially favorite one is that guys especially fire movement you guys are leaving the fire movement you guys are leaving the fire movement you guys are leaving the workforce well before and a half and workforce well before and a half and workforce well before and a half and that's what you need to know two key that's what you need to know two key that's what you need to know two key dates when you're looking at retirement dates when you're looking at retirement dates when you're looking at retirement accounts you need to know and a half accounts you need to know and a half accounts you need to know and a half cuz that's the age that the government cuz that's the age that the government cuz that's the age that the government lets you get access to IRAs ks well lets you get access to IRAs ks well lets you get access to IRAs ks well for one case might be would separate for one case might be would separate for one case might be would separate service but and a half is a key date service but and a half is a key date service but and a half is a key date know when that date is and then the know when that date is and then the know when that date is and then the other one to know is seventy and a half other one to know is seventy and a half other one to know is seventy and a half that's when the government's go to that's when the government's go to that's when the government's go to require you to start taking minimum require you to start taking minimum require you to start taking minimum distributions they want you to pay taxes distributions they want you to pay taxes distributions they want you to pay taxes on all those benefits you've got all on all those benefits you've got all on all those benefits you've got all those years well you guys in the fire those years well you guys in the fire those years well you guys in the fire movement you might have twenty to thirty movement you might have twenty to thirty movement you might have twenty to thirty years before the government years before the government years before the government and hu to take those distributions and and hu to take those distributions and and hu to take those distributions and there might be a way to manipulate how there might be a way to manipulate how there might be a way to manipulate how much taxes you pay depending upon how much taxes you pay depending upon how much taxes you pay depending upon how much after-tax money how much tax-free much after-tax money how much tax-free much after-tax money how much tax-free money you have so if you're in that money you have so if you're in that money you have so if you're in that opportunity all that period before opportunity all that period before opportunity all that period before seventeen half you might be able to do seventeen half you might be able to do seventeen half you might be able to do Roth conversions to maximize those lower Roth conversions to maximize those lower Roth conversions to maximize those lower tax rates so make sure you're tax rates so make sure you're tax rates so make sure you're considering that and you're taking an considering that and you're taking an considering that and you're taking an account now look I know that that just account now look I know that that just account now look I know that that just added a lot of variables so that's one added a lot of variables so that's one added a lot of variables so that's one of those reasons why we say it was when of those reasons why we say it was when of those reasons why we say it was when you get to these higher stages that you you get to these higher stages that you you get to these higher stages that you probably want to consider talking to a probably want to consider talking to a probably want to consider talking to a financial adviser or somebody to help financial adviser or somebody to help financial adviser or somebody to help you navigate some of these more complex you navigate some of these more complex you navigate some of these more complex matters and it can make a huge matters and it can make a huge matters and it can make a huge difference over the life of your difference over the life of your difference over the life of your portfolio probably more than sequence of portfolio probably more than sequence of portfolio probably more than sequence of return risk and that's what it created return risk and that's what it created return risk and that's what it created they call that the boogeyman but this is they call that the boogeyman but this is they call that the boogeyman but this is really that getting into the weeds is really that getting into the weeds is really that getting into the weeds is what really causes trouble for people what really causes trouble for people what really causes trouble for people let's talk about quickly tax-free Roth let's talk about quickly tax-free Roth let's talk about quickly tax-free Roth assets now here's the thing I love assets now here's the thing I love assets now here's the thing I love tax-free Roth assets the only catch tax-free Roth assets the only catch tax-free Roth assets the only catch though is that the government no matter though is that the government no matter though is that the government no matter how you structure these things they do how you structure these things they do how you structure these things they do not give you a deduction when you make not give you a deduction when you make not give you a deduction when you make the contribution whether it's a your the contribution whether it's a your the contribution whether it's a your Roth K no deduction currently Roth Roth K no deduction currently Roth Roth K no deduction currently Roth IRA no deduction currently because IRA no deduction currently because IRA no deduction currently because they're giving you the promise that you they're giving you the promise that you they're giving you the promise that you put this money in it will be completely put this money in it will be completely put this money in it will be completely tax-free when it pulls out well we know tax-free when it pulls out well we know tax-free when it pulls out well we know from our research compounding growth from our research compounding growth from our research compounding growth especially for young people is huge so especially for young people is huge so especially for young people is huge so that's a winning proposition that the that's a winning proposition that the that's a winning proposition that the government's setting up for you but this government's setting up for you but this government's setting up for you but this benefit is so good that they put income benefit is so good that they put income benefit is so good that they put income limitations it's also so good that limitations it's also so good that limitations it's also so good that truthfully you probably never ever ever truthfully you probably never ever ever truthfully you probably never ever ever actually want to touch these assets now actually want to touch these assets now actually want to touch these assets now you probably like way too I'm not gonna you probably like way too I'm not gonna you probably like way too I'm not gonna touch it this is why the benefit is so touch it this is why the benefit is so touch it this is why the benefit is so good is that these counts now Bo you good is that these counts now Bo you good is that these counts now Bo you tome because you talk about sometimes tome because you talk about sometimes tome because you talk about sometimes people are you know get in pickles yeah people are you know get in pickles yeah people are you know get in pickles yeah and medical expenses let's tell them and medical expenses let's tell them and medical expenses let's tell them I'll let you be the bad guy and tell him I'll let you be the bad guy and tell him I'll let you be the bad guy and tell him when they can use them all else equal when they can use them all else equal when they can use them all else equal you'd want to leave your Roth assets in you'd want to leave your Roth assets in you'd want to leave your Roth assets in there as long as possible so they can there as long as possible so they can there as long as possible so they can compound however all things aren't compound however all things aren't compound however all things aren't always eco sometimes you may have a always eco sometimes you may have a always eco sometimes you may have a large living expense need in retirement large living expense need in retirement large living expense need in retirement and you may be pulling out of your IRA and you may be pulling out of your IRA and you may be pulling out of your IRA you may be pulling out of your taxable you may be pulling out of your taxable you may be pulling out of your taxable account but you might not you might need account but you might not you might need account but you might not you might need more money and it might not make sense more money and it might not make sense more money and it might not make sense for you to go generate taxes that might for you to go generate taxes that might for you to go generate taxes that might be a great time for you to pull out of be a great time for you to pull out of be a great time for you to pull out of your Roth assets because they are your Roth assets because they are your Roth assets because they are tax-free or tax-free or tax-free or maybe you're not quite at that and a maybe you're not quite at that and a maybe you're not quite at that and a half age and you have our tired early half age and you have our tired early half age and you have our tired early and you have a bridge you need to get to and you have a bridge you need to get to and you have a bridge you need to get to one of the really unique things about one of the really unique things about one of the really unique things about Ross is that they can serve not should Ross is that they can serve not should Ross is that they can serve not should serve I want that that's an important serve I want that that's an important serve I want that that's an important statement they can serve as an emergency statement they can serve as an emergency statement they can serve as an emergency piggy bank because you can always get to piggy bank because you can always get to piggy bank because you can always get to the money you put into your Roth the money you put into your Roth the money you put into your Roth tax-free and penalty-free if you've been tax-free and penalty-free if you've been tax-free and penalty-free if you've been making contributions if you've been making contributions if you've been making contributions if you've been growing that pot of money you should not growing that pot of money you should not growing that pot of money you should not do that because you were taking your do that because you were taking your do that because you were taking your soldiers out of the war way too early soldiers out of the war way too early soldiers out of the war way too early but it's there as an emergency if you but it's there as an emergency if you but it's there as an emergency if you need it so let me tell you because I was need it so let me tell you because I was need it so let me tell you because I was right you can out get access to the right you can out get access to the right you can out get access to the principal after you understand -year principal after you understand -year principal after you understand -year rules and all those things that go into rules and all those things that go into rules and all those things that go into it but here's why you never ever-- it but here's why you never ever-- it but here's why you never ever-- even in retirement probably never ever even in retirement probably never ever even in retirement probably never ever ever want to touch your Roth assets it's ever want to touch your Roth assets it's ever want to touch your Roth assets it's because these things are a state because these things are a state because these things are a state planning goal if you know that when you planning goal if you know that when you planning goal if you know that when you die you're probably not dying broke I die you're probably not dying broke I die you're probably not dying broke I mean I think I'm at that point of mean I think I'm at that point of mean I think I'm at that point of accumulation that now I'm you know you accumulation that now I'm you know you accumulation that now I'm you know you building up your nest egg but you building up your nest egg but you building up your nest egg but you because you want to get that withdrawal because you want to get that withdrawal because you want to get that withdrawal that safe withdrawal rate right but you that safe withdrawal rate right but you that safe withdrawal rate right but you know you're gleaming something behind to know you're gleaming something behind to know you're gleaming something behind to the kids because you just built up the kids because you just built up the kids because you just built up you're too good at building the army of you're too good at building the army of you're too good at building the army of dollar bills remember how I told you dollar bills remember how I told you dollar bills remember how I told you with the tax deferred accounts they with the tax deferred accounts they with the tax deferred accounts they required seven and a half you to take a required seven and a half you to take a required seven and a half you to take a portion and start paying taxes they go portion and start paying taxes they go portion and start paying taxes they go man thank you to take it Roth IRAs so man thank you to take it Roth IRAs so man thank you to take it Roth IRAs so even if you have a Roth k when you even if you have a Roth k when you even if you have a Roth k when you retire you can roll that into a Roth IRA retire you can roll that into a Roth IRA retire you can roll that into a Roth IRA there is no I repeat that there is no there is no I repeat that there is no there is no I repeat that there is no required minimum distribution remember required minimum distribution remember required minimum distribution remember what we said compounding growth is what what we said compounding growth is what what we said compounding growth is what makes these powerful we talk about all makes these powerful we talk about all makes these powerful we talk about all the time that a year old who puts the time that a year old who puts the time that a year old who puts money away $. when they're years money away $. when they're years money away $. when they're years of age could grow to become dollars of age could grow to become dollars of age could grow to become dollars by the time they're years of age well by the time they're years of age well by the time they're years of age well think about this if you're a person even think about this if you're a person even think about this if you're a person even if you're a year old who retires at if you're a year old who retires at if you're a year old who retires at but you have money in a Roth there's but you have money in a Roth there's but you have money in a Roth there's a chance you're not leaving this planet a chance you're not leaving this planet a chance you're not leaving this planet until you're to a hundred you could until you're to a hundred you could until you're to a hundred you could have the same benefit that a year old have the same benefit that a year old have the same benefit that a year old house on every dollar that's in these house on every dollar that's in these house on every dollar that's in these Roth accounts because there's no Roth accounts because there's no Roth accounts because there's no required benefit and then catch this you required benefit and then catch this you required benefit and then catch this you die with a Roth account that never had a die with a Roth account that never had a die with a Roth account that never had a required minimum distribution even required minimum distribution even required minimum distribution even though you were getting old you know though you were getting old you know though you were getting old you know years old this money still growing years old this money still growing years old this money still growing tax-free you still have the potential tax-free you still have the potential tax-free you still have the potential for your for your for your kids to be named on their and they only kids to be named on their and they only kids to be named on their and they only have to take distributions over their have to take distributions over their have to take distributions over their life expectancy you have now stretched life expectancy you have now stretched life expectancy you have now stretched this benefit for your kids your this benefit for your kids your this benefit for your kids your grandkids and it's not taxable to them grandkids and it's not taxable to them grandkids and it's not taxable to them when they take just refused huge huge when they take just refused huge huge when they take just refused huge huge huge huge this is why it's a it's an huge huge this is why it's a it's an huge huge this is why it's a it's an account that you can look up but account that you can look up but account that you can look up but truthfully you don't break the glass on truthfully you don't break the glass on truthfully you don't break the glass on it and unless you really have to WEBVTT Kind: captions Language: en hey guys it's a month and Christina for hey guys it's a month and Christina for hey guys it's a month and Christina for an Aries journey today we are talking an Aries journey today we are talking an Aries journey today we are talking about investment accounts for financial about investment accounts for financial about investment accounts for financial independence we are going to be talking independence we are going to be talking independence we are going to be talking about tax advantage accounts and taxable about tax advantage accounts and taxable about tax advantage accounts and taxable accounts because these accounts are very accounts because these accounts are very accounts because these accounts are very important on your journey towards important on your journey towards important on your journey towards financial independence if you know our financial independence if you know our financial independence if you know our stories you know that we were able to stories you know that we were able to stories you know that we were able to achieve financial independence and achieve financial independence and achieve financial independence and retire early in less than eight years retire early in less than eight years retire early in less than eight years and a big part of it had to deal with and a big part of it had to deal with and a big part of it had to deal with the types of accounts we put our money the types of accounts we put our money the types of accounts we put our money into and so in today's video we are into and so in today's video we are into and so in today's video we are gonna be talking about those accounts gonna be talking about those accounts gonna be talking about those accounts and we're gonna be talking about the and we're gonna be talking about the and we're gonna be talking about the process in which we invested in those process in which we invested in those process in which we invested in those accounts this is typically called your accounts this is typically called your accounts this is typically called your order of operations because there is a order of operations because there is a order of operations because there is a order in which you want to fund each one order in which you want to fund each one order in which you want to fund each one of these accounts so like Amun said of these accounts so like Amun said of these accounts so like Amun said we're gonna be talking about our we're gonna be talking about our we're gonna be talking about our investment accounts and the order that investment accounts and the order that investment accounts and the order that we invested in those accounts now both we invested in those accounts now both we invested in those accounts now both of those two things are very important of those two things are very important of those two things are very important because you want to make sure that because you want to make sure that because you want to make sure that you're investing in the most optimal way you're investing in the most optimal way you're investing in the most optimal way possible now when we say optimal we are possible now when we say optimal we are possible now when we say optimal we are talking about your specific situation talking about your specific situation talking about your specific situation what's optimal for you so in that sense what's optimal for you so in that sense what's optimal for you so in that sense you're taking into account your goals you're taking into account your goals you're taking into account your goals what type of tax advantages you can get what type of tax advantages you can get what type of tax advantages you can get from investing in certain accounts and from investing in certain accounts and from investing in certain accounts and your overall timeline now picking what's your overall timeline now picking what's your overall timeline now picking what's optimal for you can be kind of optimal for you can be kind of optimal for you can be kind of challenging because the number of challenging because the number of challenging because the number of accounts that are available are many in accounts that are available are many in accounts that are available are many in fact there are over accounts that fact there are over accounts that fact there are over accounts that most people can invest in and so you most people can invest in and so you most people can invest in and so you want to pick something that is fits your want to pick something that is fits your want to pick something that is fits your situation something that you have access situation something that you have access situation something that you have access to so those accounts will either taxable to so those accounts will either taxable to so those accounts will either taxable accounts or tax deferred accounts the accounts or tax deferred accounts the accounts or tax deferred accounts the types of accounts that people can invest types of accounts that people can invest types of accounts that people can invest in include ks a Roth K B's in include ks a Roth K B's in include ks a Roth K B's s solo k's SEP IRAs s solo k's SEP IRAs s solo k's SEP IRAs simple IRAs traditional IRAs Roth IRAs simple IRAs traditional IRAs Roth IRAs simple IRAs traditional IRAs Roth IRAs health savings accounts brokerage health savings accounts brokerage health savings accounts brokerage accounts and custodial accounts so accounts and custodial accounts so accounts and custodial accounts so those are just the main accounts there those are just the main accounts there those are just the main accounts there are over ten of them so how do you go are over ten of them so how do you go are over ten of them so how do you go about deciding how to prioritize putting about deciding how to prioritize putting about deciding how to prioritize putting your money in those accounts because you your money in those accounts because you your money in those accounts because you can't invest in all of them you have to can't invest in all of them you have to can't invest in all of them you have to invest in what is most optimal for your invest in what is most optimal for your invest in what is most optimal for your situation so you have to prioritize situation so you have to prioritize situation so you have to prioritize where your limited amount of where your limited amount of where your limited amount of it goes for us we had to think of the it goes for us we had to think of the it goes for us we had to think of the investment accounts that would grow our investment accounts that would grow our investment accounts that would grow our money over the long term but also have money over the long term but also have money over the long term but also have our short-term fire goals in mind we our short-term fire goals in mind we our short-term fire goals in mind we also had to keep in mind our specific also had to keep in mind our specific also had to keep in mind our specific tax advantages that we wanted to tax advantages that we wanted to tax advantages that we wanted to implement when we were investing so the implement when we were investing so the implement when we were investing so the investment accounts that we invested in investment accounts that we invested in investment accounts that we invested in included our k employer-sponsored included our k employer-sponsored included our k employer-sponsored retirement account also known as the TSP retirement account also known as the TSP retirement account also known as the TSP or Thrift Savings Plan Roth IRA account or Thrift Savings Plan Roth IRA account or Thrift Savings Plan Roth IRA account traditional IRA HSA account custodial traditional IRA HSA account custodial traditional IRA HSA account custodial accounts for sin OA and malia a accounts for sin OA and malia a accounts for sin OA and malia a brokerage accounts and finally a stock brokerage accounts and finally a stock brokerage accounts and finally a stock market crash emergency fund of cash with market crash emergency fund of cash with market crash emergency fund of cash with two years of living expenses now those two years of living expenses now those two years of living expenses now those are the seven accounts that we invested are the seven accounts that we invested are the seven accounts that we invested in but what we really want to focus on in but what we really want to focus on in but what we really want to focus on also in this video is the order of also in this video is the order of also in this video is the order of investing in those accounts but I really investing in those accounts but I really investing in those accounts but I really want to emphasize something each account want to emphasize something each account want to emphasize something each account plays a significant role in our fire plays a significant role in our fire plays a significant role in our fire plan we have assignment a duty and when plan we have assignment a duty and when plan we have assignment a duty and when we call on them they better be ready to we call on them they better be ready to we call on them they better be ready to act so it is important that you put some act so it is important that you put some act so it is important that you put some thought behind identify each one of the thought behind identify each one of the thought behind identify each one of the accounts that you select and so we're accounts that you select and so we're accounts that you select and so we're gonna talk a little bit more about that gonna talk a little bit more about that gonna talk a little bit more about that next so let's begin with talking about next so let's begin with talking about next so let's begin with talking about the order that we invested into these the order that we invested into these the order that we invested into these accounts now when we were investing we accounts now when we were investing we accounts now when we were investing we focused on our tax deferred accounts focused on our tax deferred accounts focused on our tax deferred accounts first and the reason for this is sort of first and the reason for this is sort of first and the reason for this is sort of mind blowing if you're investing in a mind blowing if you're investing in a mind blowing if you're investing in a tax deferred account versus a regular tax deferred account versus a regular tax deferred account versus a regular account without a tax advantage your tax account without a tax advantage your tax account without a tax advantage your tax deferred account is growing so much deferred account is growing so much deferred account is growing so much faster than the other regular accounts faster than the other regular accounts faster than the other regular accounts and this is because earnings in a tax and this is because earnings in a tax and this is because earnings in a tax deferred or tax sheltered account are deferred or tax sheltered account are deferred or tax sheltered account are not eaten up by taxes so there's more not eaten up by taxes so there's more not eaten up by taxes so there's more room for that money to grow with com room for that money to grow with com room for that money to grow with com interest and I think to illustrate this interest and I think to illustrate this interest and I think to illustrate this we must show an example because it is we must show an example because it is we must show an example because it is mind-blowing when you see it on paper mind-blowing when you see it on paper mind-blowing when you see it on paper you realize that a tax-deferred account you realize that a tax-deferred account you realize that a tax-deferred account is the most optimal way to start your is the most optimal way to start your is the most optimal way to start your business so for example if you invest business so for example if you invest business so for example if you invest the max k annual contribution of the max k annual contribution of the max k annual contribution of nineteen thousand five hundred dollars nineteen thousand five hundred dollars nineteen thousand five hundred dollars into your K and add that same nine into your K and add that same nine into your K and add that same nine thousand five hundred dollars each year thousand five hundred dollars each year thousand five hundred dollars each year the k account returning a percent the k account returning a percent the k account returning a percent tax rate for ten years would be worth tax rate for ten years would be worth tax rate for ten years would be worth three hundred and ninety two thousand three hundred and ninety two thousand three hundred and ninety two thousand dollars but that same contribution to an dollars but that same contribution to an dollars but that same contribution to an on retirement taxable account will only on retirement taxable account will only on retirement taxable account will only grow to three hundred and twenty two grow to three hundred and twenty two grow to three hundred and twenty two thousand dollars if you're in the mid thousand dollars if you're in the mid thousand dollars if you're in the mid tax bracket so over a ten year period tax bracket so over a ten year period tax bracket so over a ten year period you make seventy thousand dollars more you make seventy thousand dollars more you make seventy thousand dollars more in a tax deferred account than a taxable in a tax deferred account than a taxable in a tax deferred account than a taxable account that is mind blowing for the account that is mind blowing for the account that is mind blowing for the same period and the same amount of money same period and the same amount of money same period and the same amount of money you make seventy thousand dollars more you make seventy thousand dollars more you make seventy thousand dollars more so with that type of tax advantage you so with that type of tax advantage you so with that type of tax advantage you know we are starting with the tax know we are starting with the tax know we are starting with the tax deferred accounts so the first account deferred accounts so the first account deferred accounts so the first account that we fund is our K up to the that we fund is our K up to the that we fund is our K up to the employer match that is where we start employer match that is where we start employer match that is where we start this account was crucial because it this account was crucial because it this account was crucial because it allowed our investments to grow allowed our investments to grow allowed our investments to grow tax-deferred and lowered our taxable tax-deferred and lowered our taxable tax-deferred and lowered our taxable income and our employer matched a % income and our employer matched a % income and our employer matched a % into this account so after each of us into this account so after each of us into this account so after each of us have contributed to our K up to our have contributed to our K up to our have contributed to our K up to our employer match we next open Roth IRAs employer match we next open Roth IRAs employer match we next open Roth IRAs and those Roth IRAs we contribute the and those Roth IRAs we contribute the and those Roth IRAs we contribute the max to both of those now a Roth IRA is max to both of those now a Roth IRA is max to both of those now a Roth IRA is something that is very special because something that is very special because something that is very special because later on down the road we can use our later on down the road we can use our later on down the road we can use our Roth IRA to do Roth conversions now Roth IRA to do Roth conversions now Roth IRA to do Roth conversions now we're not going to talk about that in we're not going to talk about that in we're not going to talk about that in this video but go back and look at our this video but go back and look at our this video but go back and look at our video on the Roth conversion letter but video on the Roth conversion letter but video on the Roth conversion letter but Roth's are also really special because Roth's are also really special because Roth's are also really special because the amount of money that you put into the amount of money that you put into the amount of money that you put into the Roth the principle amount you can the Roth the principle amount you can the Roth the principle amount you can withdraw if you need so in a way it's withdraw if you need so in a way it's withdraw if you need so in a way it's also acting as an also acting as an also acting as an emergency fund so next is the Roth now emergency fund so next is the Roth now emergency fund so next is the Roth now if you don't have a k if you don't have a k if you don't have a k you should definitely open up a Roth IRA you should definitely open up a Roth IRA you should definitely open up a Roth IRA there are so many benefits to this type there are so many benefits to this type there are so many benefits to this type of investment account and the first big of investment account and the first big of investment account and the first big benefit is that your earnings are benefit is that your earnings are benefit is that your earnings are growing tax-free and the second big growing tax-free and the second big growing tax-free and the second big benefit is when you take this money out benefit is when you take this money out benefit is when you take this money out at retirement age you're also taking it at retirement age you're also taking it at retirement age you're also taking it out tax-free so after the k the Roth out tax-free so after the k the Roth out tax-free so after the k the Roth IRA you've got to get that HSA if you IRA you've got to get that HSA if you IRA you've got to get that HSA if you are eligible for an HSA a health savings are eligible for an HSA a health savings are eligible for an HSA a health savings account oh my goodness this is the account oh my goodness this is the account oh my goodness this is the granddaddy of retirement accounts but granddaddy of retirement accounts but granddaddy of retirement accounts but see most people don't recognize this and see most people don't recognize this and see most people don't recognize this and we're gonna do a whole video on the we're gonna do a whole video on the we're gonna do a whole video on the health savings account and the triple health savings account and the triple health savings account and the triple Brit that it is but if you can max out Brit that it is but if you can max out Brit that it is but if you can max out your HSA so HSAs are triple tax your HSA so HSAs are triple tax your HSA so HSAs are triple tax advantage because the money that you advantage because the money that you advantage because the money that you contribute into them is tax deductible contribute into them is tax deductible contribute into them is tax deductible all the earnings in the interest are all the earnings in the interest are all the earnings in the interest are also tax-free and then when you withdraw also tax-free and then when you withdraw also tax-free and then when you withdraw them if you're withdrawing them for them if you're withdrawing them for them if you're withdrawing them for qualified medical expenses it's also qualified medical expenses it's also qualified medical expenses it's also tax-free and the great thing about HSAs tax-free and the great thing about HSAs tax-free and the great thing about HSAs are they do not expire annually so if are they do not expire annually so if are they do not expire annually so if you have money in an HSA it rolls over you have money in an HSA it rolls over you have money in an HSA it rolls over to the next year even if you don't use to the next year even if you don't use to the next year even if you don't use it now I surveyed the people that I used it now I surveyed the people that I used it now I surveyed the people that I used to work with and none of them were using to work with and none of them were using to work with and none of them were using an HSA they were missing out on a huge an HSA they were missing out on a huge an HSA they were missing out on a huge opportunity to invest their money and opportunity to invest their money and opportunity to invest their money and have it grow for them I mean health care have it grow for them I mean health care have it grow for them I mean health care costs are gonna continue to go up so you costs are gonna continue to go up so you costs are gonna continue to go up so you can also use this money to offset health can also use this money to offset health can also use this money to offset health care costs I mean that's what it's care costs I mean that's what it's care costs I mean that's what it's supposed to be used for but there are supposed to be used for but there are supposed to be used for but there are other hats that you can use this money other hats that you can use this money other hats that you can use this money for we're not going to get into those in for we're not going to get into those in for we're not going to get into those in this video because that is gonna be a this video because that is gonna be a this video because that is gonna be a mega future video but just look into the mega future video but just look into the mega future video but just look into the HSA as a another account so now when HSA as a another account so now when HSA as a another account so now when you're looking into an HSA look into all you're looking into an HSA look into all you're looking into an HSA look into all the different types of things that you the different types of things that you the different types of things that you can invest with your HSA you can invest can invest with your HSA you can invest can invest with your HSA you can invest in the index funds for us for our in the index funds for us for our in the index funds for us for our particular situation we invested in Rhys particular situation we invested in Rhys particular situation we invested in Rhys so all the money that we contributed to so all the money that we contributed to so all the money that we contributed to our HSA was invested into Rhys and at our HSA was invested into Rhys and at our HSA was invested into Rhys and at this point once you've funded those this point once you've funded those this point once you've funded those accounts to the limits that we've accounts to the limits that we've accounts to the limits that we've identified if you have money left over identified if you have money left over identified if you have money left over go back to your k go back to your k go back to your k and max that out that's exactly what we and max that out that's exactly what we and max that out that's exactly what we did now to do this you have to get your did now to do this you have to get your did now to do this you have to get your savings rate up and that is a key part savings rate up and that is a key part savings rate up and that is a key part of financial independence is having that of financial independence is having that of financial independence is having that money available to invest in these money available to invest in these money available to invest in these accounts so we went back to our k and accounts so we went back to our k and accounts so we went back to our k and max that out for the both of us every max that out for the both of us every max that out for the both of us every single year now the reason why I would single year now the reason why I would single year now the reason why I would go back and we invest in the full go back and we invest in the full go back and we invest in the full maximum amount that we can invest in our maximum amount that we can invest in our maximum amount that we can invest in our k is because it further reduces our k is because it further reduces our k is because it further reduces our taxable income so now the next step taxable income so now the next step taxable income so now the next step after we do all of those types of after we do all of those types of after we do all of those types of investments the next thing we invest in investments the next thing we invest in investments the next thing we invest in is our kids custodial account now notice is our kids custodial account now notice is our kids custodial account now notice when we say our kids custodial account when we say our kids custodial account when we say our kids custodial account we actually don't say a and for us we actually don't say a and for us we actually don't say a and for us this is because we did not invest in a this is because we did not invest in a this is because we did not invest in a we still we stuck exclusively to we still we stuck exclusively to we still we stuck exclusively to custodial accounts for our girls now custodial accounts for our girls now custodial accounts for our girls now you're probably thinking what they you're probably thinking what they you're probably thinking what they funded their kids last or fifth that's funded their kids last or fifth that's funded their kids last or fifth that's not the case we well it is the case we not the case we well it is the case we not the case we well it is the case we funded them fifth because the tax funded them fifth because the tax funded them fifth because the tax deferred accounts are more advantageous deferred accounts are more advantageous deferred accounts are more advantageous our money works in a more optimal our money works in a more optimal our money works in a more optimal fashion we knew we were going to get to fashion we knew we were going to get to fashion we knew we were going to get to the kids accounts but we wanted to make the kids accounts but we wanted to make the kids accounts but we wanted to make sure that if we're gonna prioritize sure that if we're gonna prioritize sure that if we're gonna prioritize things we know that our money grows best things we know that our money grows best things we know that our money grows best and the tax deferred accounts so now at and the tax deferred accounts so now at and the tax deferred accounts so now at this point we are investing in our kids this point we are investing in our kids this point we are investing in our kids at custodial accounts now how much you at custodial accounts now how much you at custodial accounts now how much you invest in your kids custodial accounts invest in your kids custodial accounts invest in your kids custodial accounts or your kids counts all depends on or your kids counts all depends on or your kids counts all depends on your college plan for your kids we have your college plan for your kids we have your college plan for your kids we have a whole another plan for our kids that a whole another plan for our kids that a whole another plan for our kids that we're going to get into in a different we're going to get into in a different we're going to get into in a different video video video but it's not dependent on just the but it's not dependent on just the but it's not dependent on just the custodial accounts now step six is to custodial accounts now step six is to custodial accounts now step six is to invest in our brokerage accounts and we invest in our brokerage accounts and we invest in our brokerage accounts and we throw a ton of money into our brokerage throw a ton of money into our brokerage throw a ton of money into our brokerage accounts and this of course is after our accounts and this of course is after our accounts and this of course is after our tax deferred our tax sheltered accounts tax deferred our tax sheltered accounts tax deferred our tax sheltered accounts and our custodial accounts but the and our custodial accounts but the and our custodial accounts but the reason why we put so much money into our reason why we put so much money into our reason why we put so much money into our brokerage accounts is because brokerage accounts is because brokerage accounts is because this is the money that is going to fund this is the money that is going to fund this is the money that is going to fund or pay for our expenses in our early or pay for our expenses in our early or pay for our expenses in our early retirement before we each reach a retirement before we each reach a retirement before we each reach a regular retirement age so your final regular retirement age so your final regular retirement age so your final plan is gonna require this unless you're plan is gonna require this unless you're plan is gonna require this unless you're going to do a Roth conversion letter and going to do a Roth conversion letter and going to do a Roth conversion letter and we talked about this in another video we talked about this in another video we talked about this in another video but a Roth conversion ladder allows you but a Roth conversion ladder allows you but a Roth conversion ladder allows you to access the money from your tax to access the money from your tax to access the money from your tax deferred accounts really your k and deferred accounts really your k and deferred accounts really your k and your traditional IRA earlier but penalty your traditional IRA earlier but penalty your traditional IRA earlier but penalty free now there is a chain of events that free now there is a chain of events that free now there is a chain of events that you have to go through the access that you have to go through the access that you have to go through the access that money so we didn't want to have to go money so we didn't want to have to go money so we didn't want to have to go through that chain of events but it is a through that chain of events but it is a through that chain of events but it is a option so we developed this brokerage option so we developed this brokerage option so we developed this brokerage account then we through whatever excess account then we through whatever excess account then we through whatever excess and money we had into this account so if and money we had into this account so if and money we had into this account so if he sold a property we took a portion of he sold a property we took a portion of he sold a property we took a portion of those of those monies and put it into those of those monies and put it into those of those monies and put it into this account if we had a side muscle we this account if we had a side muscle we this account if we had a side muscle we were dumping this money into the were dumping this money into the were dumping this money into the brokerage accounts so we have amassed a brokerage accounts so we have amassed a brokerage accounts so we have amassed a very large brokerage account and the very large brokerage account and the very large brokerage account and the final account that we funded on our final account that we funded on our final account that we funded on our journey towards financial independence journey towards financial independence journey towards financial independence was our stock market crashed emergency was our stock market crashed emergency was our stock market crashed emergency fund now this is a different fund than a fund now this is a different fund than a fund now this is a different fund than a normal virgin sea fund but when you are normal virgin sea fund but when you are normal virgin sea fund but when you are financially independent and you have financially independent and you have financially independent and you have retired early you're not making any more retired early you're not making any more retired early you're not making any more money a good portion of your income money a good portion of your income money a good portion of your income comes from the stock market and so comes from the stock market and so comes from the stock market and so should the stock market crash we created should the stock market crash we created should the stock market crash we created a fund to handle that crash this fund is a fund to handle that crash this fund is a fund to handle that crash this fund is the amount of money that we can live off the amount of money that we can live off the amount of money that we can live off of for two years straight before we had of for two years straight before we had of for two years straight before we had to access money from our stock accounts to access money from our stock accounts to access money from our stock accounts now this was very important for us but now this was very important for us but now this was very important for us but it was something that we held off to the it was something that we held off to the it was something that we held off to the end of our fire journey because we end of our fire journey because we end of our fire journey because we didn't want to have money sitting in didn't want to have money sitting in didn't want to have money sitting in cash or CDs that wasn't growing in the cash or CDs that wasn't growing in the cash or CDs that wasn't growing in the tax deferred account or the brokerage tax deferred account or the brokerage tax deferred account or the brokerage account instead towards the last two account instead towards the last two account instead towards the last two years of our journey we started putting years of our journey we started putting years of our journey we started putting money into this stock market crash money into this stock market crash money into this stock market crash emergency fund so the reason why we have emergency fund so the reason why we have emergency fund so the reason why we have a two-year cash emergency fund is a two-year cash emergency fund is a two-year cash emergency fund is because historically the bear markets because historically the bear markets because historically the bear markets have lasted an average of months have lasted an average of months have lasted an average of months now we found if we have a two-year cash now we found if we have a two-year cash now we found if we have a two-year cash reserve then we can withstand that reserve then we can withstand that reserve then we can withstand that -month -month -month dip and be okay so these are bear dip and be okay so these are bear dip and be okay so these are bear markets are rare but you must have that markets are rare but you must have that markets are rare but you must have that type of flexibility in your plan I mean type of flexibility in your plan I mean type of flexibility in your plan I mean I think with that amount of time in a I think with that amount of time in a I think with that amount of time in a bear market we would make other changes bear market we would make other changes bear market we would make other changes but that two years of emergency fund but that two years of emergency fund but that two years of emergency fund it's crucial it helps us a sleep at it's crucial it helps us a sleep at it's crucial it helps us a sleep at night so those were the seven accounts night so those were the seven accounts night so those were the seven accounts that we invested in in order to reach that we invested in in order to reach that we invested in in order to reach financial independence and to retire financial independence and to retire financial independence and to retire early in Lisbon Portugal now of course early in Lisbon Portugal now of course early in Lisbon Portugal now of course we talked about at the beginning of this we talked about at the beginning of this we talked about at the beginning of this video making a plan an investment plan video making a plan an investment plan video making a plan an investment plan that is optimal for you so these seven that is optimal for you so these seven that is optimal for you so these seven investment accounts may not work for you investment accounts may not work for you investment accounts may not work for you maybe you need to invest in something maybe you need to invest in something maybe you need to invest in something else but the idea is to look at your else but the idea is to look at your else but the idea is to look at your strategy look at the order of accounts strategy look at the order of accounts strategy look at the order of accounts that you need to invest in and look at that you need to invest in and look at that you need to invest in and look at these specific accounts that you need to these specific accounts that you need to these specific accounts that you need to invest in and take action so that you invest in and take action so that you invest in and take action so that you can begin your journey towards fire now can begin your journey towards fire now can begin your journey towards fire now if you liked this video make sure you if you liked this video make sure you if you liked this video make sure you give us a thumbs up subscribe to our give us a thumbs up subscribe to our give us a thumbs up subscribe to our Channel and join the journey WEBVTT Kind: captions Language: en thanks Tim and it's amy from go with les thanks Tim and it's amy from go with les thanks Tim and it's amy from go with les we're so glad that you're here with us we're so glad that you're here with us we're so glad that you're here with us today in our video we're going to be today in our video we're going to be today in our video we're going to be sharing about a very important subject sharing about a very important subject sharing about a very important subject to us it is something that we're seeing to us it is something that we're seeing to us it is something that we're seeing all over the internet lately and that is all over the internet lately and that is all over the internet lately and that is the conversation is the fire movement the conversation is the fire movement the conversation is the fire movement dead we want to weigh in with our two dead we want to weigh in with our two dead we want to weigh in with our two cents on this and we hope that you will cents on this and we hope that you will cents on this and we hope that you will watch the whole video because we're watch the whole video because we're watch the whole video because we're hoping to get some buy-in from both hoping to get some buy-in from both hoping to get some buy-in from both sides of our audience just in case you sides of our audience just in case you sides of our audience just in case you don't know fire stands for financial don't know fire stands for financial don't know fire stands for financial independence retire early we've been independence retire early we've been independence retire early we've been part of this community part of this community part of this community deep deep deep for the past six years so deep deep deep for the past six years so deep deep deep for the past six years so we have a lot of passion and a lot to we have a lot of passion and a lot to we have a lot of passion and a lot to say about it and I again I hope you'll say about it and I again I hope you'll say about it and I again I hope you'll stick around one of my very favorite stick around one of my very favorite stick around one of my very favorite things to do is to let the cat out of things to do is to let the cat out of things to do is to let the cat out of the bag and so I'm gonna do that today the bag and so I'm gonna do that today the bag and so I'm gonna do that today and say the fire movement is not dead and say the fire movement is not dead and say the fire movement is not dead that is completely ridiculous that is completely ridiculous that is completely ridiculous don't don't stop the video because don't don't stop the video because don't don't stop the video because there's more to it however something we there's more to it however something we there's more to it however something we do want to say is that we have do want to say is that we have do want to say is that we have incredible sympathy and a lot of empathy incredible sympathy and a lot of empathy incredible sympathy and a lot of empathy for anybody who was close to fire just for anybody who was close to fire just for anybody who was close to fire just about there and these current market about there and these current market about there and these current market conditions are making things further out conditions are making things further out conditions are making things further out maybe your plans are pushed out a year maybe your plans are pushed out a year maybe your plans are pushed out a year maybe they're pushed out three years maybe they're pushed out three years maybe they're pushed out three years maybe they're pushed out further and maybe they're pushed out further and maybe they're pushed out further and regardless we can completely appreciate regardless we can completely appreciate regardless we can completely appreciate how frustrating that can be so we're how frustrating that can be so we're how frustrating that can be so we're gonna break the video conversation into gonna break the video conversation into gonna break the video conversation into two parts our first can talk about Phi two parts our first can talk about Phi two parts our first can talk about Phi the financial independence and then the financial independence and then the financial independence and then we'll talk about the re but before we do we'll talk about the re but before we do we'll talk about the re but before we do I want to share a little bit about what I want to share a little bit about what I want to share a little bit about what I've been reading online so I see I've been reading online so I see I've been reading online so I see comments fire comments can be like the comments fire comments can be like the comments fire comments can be like the biggest bummer under the best of biggest bummer under the best of biggest bummer under the best of circumstances well imagine what they are circumstances well imagine what they are circumstances well imagine what they are now so I'm seeing comments like see I now so I'm seeing comments like see I now so I'm seeing comments like see I knew this wouldn't work this fire thing knew this wouldn't work this fire thing knew this wouldn't work this fire thing is all malarkey or see like this whole is all malarkey or see like this whole is all malarkey or see like this whole thing working toward fire now that my thing working toward fire now that my thing working toward fire now that my deadline has been pushed back my my deadline has been pushed back my my deadline has been pushed back my my light at the end of the tunnel this is light at the end of the tunnel this is light at the end of the tunnel this is all just not worth doing in the all just not worth doing in the all just not worth doing in the slightest so a lot of articles comments slightest so a lot of articles comments slightest so a lot of articles comments things that are really questioning is things that are really questioning is things that are really questioning is this something that is worth doing at this something that is worth doing at this something that is worth doing at all so in the fie conversation we're all so in the fie conversation we're all so in the fie conversation we're gonna give our definition of what gonna give our definition of what gonna give our definition of what means to us is if you have enough money means to us is if you have enough money means to us is if you have enough money in the bank that tomorrow you can wake in the bank that tomorrow you can wake in the bank that tomorrow you can wake up and not have to go to your job and do up and not have to go to your job and do up and not have to go to your job and do whatever it is you want to do maybe you whatever it is you want to do maybe you whatever it is you want to do maybe you do want to do want to do want to to work and so therefore if you have to work and so therefore if you have to work and so therefore if you have enough money that you don't have to that enough money that you don't have to that enough money that you don't have to that is financial independence to us and so is financial independence to us and so is financial independence to us and so we don't understand why anybody would we don't understand why anybody would we don't understand why anybody would have any issue with this concept of have any issue with this concept of have any issue with this concept of financial independence and for us what financial independence and for us what financial independence and for us what really drove our financial independence really drove our financial independence really drove our financial independence was spending a lot less we're very was spending a lot less we're very was spending a lot less we're very frugal in our new life we used to spent frugal in our new life we used to spent frugal in our new life we used to spent a very frugal we consider being frugal a very frugal we consider being frugal a very frugal we consider being frugal sometimes so we're nowhere near monks or sometimes so we're nowhere near monks or sometimes so we're nowhere near monks or we have this amazing life with the we have this amazing life with the we have this amazing life with the amount of spending that we have and we amount of spending that we have and we amount of spending that we have and we roughly spend thirty six thousand roughly spend thirty six thousand roughly spend thirty six thousand dollars a year is our target spending dollars a year is our target spending dollars a year is our target spending goal and with that amount of spending we goal and with that amount of spending we goal and with that amount of spending we have an amazing life and so and with all have an amazing life and so and with all have an amazing life and so and with all that's going on right now for us because that's going on right now for us because that's going on right now for us because we planned we do not have to modify that we planned we do not have to modify that we planned we do not have to modify that in any way I do think that some of the in any way I do think that some of the in any way I do think that some of the reason why people poopoo the financial reason why people poopoo the financial reason why people poopoo the financial independence piece is because they are independence piece is because they are independence piece is because they are going at it so hard so extreme that the going at it so hard so extreme that the going at it so hard so extreme that the journey is awful it's a lot of journey is awful it's a lot of journey is awful it's a lot of deprivation it's sacrifice we're not deprivation it's sacrifice we're not deprivation it's sacrifice we're not advocating that at all unless you like advocating that at all unless you like advocating that at all unless you like that some people like that we know many that some people like that we know many that some people like that we know many people actually who are really into people actually who are really into people actually who are really into being stoic and are really into that if being stoic and are really into that if being stoic and are really into that if that's your jam like fantastic but if that's your jam like fantastic but if that's your jam like fantastic but if you won't just want a nice enjoyable you won't just want a nice enjoyable you won't just want a nice enjoyable life with a lot of the creature comforts life with a lot of the creature comforts life with a lot of the creature comforts then maybe don't dial it in so quickly then maybe don't dial it in so quickly then maybe don't dial it in so quickly but still financial independence means but still financial independence means but still financial independence means that during this tough time for many that during this tough time for many that during this tough time for many people we don't have to worry about our people we don't have to worry about our people we don't have to worry about our job we don't have to worry about living job we don't have to worry about living job we don't have to worry about living paycheck to paycheck month to month and paycheck to paycheck month to month and paycheck to paycheck month to month and that allows us to I don't know have a go that allows us to I don't know have a go that allows us to I don't know have a go just an enormous peace of mind just an enormous peace of mind just an enormous peace of mind yep when it comes to the retire early yep when it comes to the retire early yep when it comes to the retire early part I think a lot of people even in the part I think a lot of people even in the part I think a lot of people even in the fire movement struggle with the re side fire movement struggle with the re side fire movement struggle with the re side of things you did I did and I sometimes of things you did I did and I sometimes of things you did I did and I sometimes I still do because I think that the I still do because I think that the I still do because I think that the retired part sort conjures up this these retired part sort conjures up this these retired part sort conjures up this these images of I'm gonna go sit on a beach images of I'm gonna go sit on a beach images of I'm gonna go sit on a beach I'm gonna stay at home and watch TV I'm I'm gonna stay at home and watch TV I'm I'm gonna stay at home and watch TV I'm just gonna do nothing I'm just gonna be just gonna do nothing I'm just gonna be just gonna do nothing I'm just gonna be and so that is certainly nothing that we and so that is certainly nothing that we and so that is certainly nothing that we aspired to and when we look at re as a aspired to and when we look at re as a aspired to and when we look at re as a matter of fact early on Amy said that matter of fact early on Amy said that matter of fact early on Amy said that she was gonna rebrand re rebrand she was gonna rebrand re rebrand she was gonna rebrand re rebrand retirement because it has this sort of retirement because it has this sort of retirement because it has this sort of negative combat connotation and that is negative combat connotation and that is negative combat connotation and that is certainly nothing in our life that we've certainly nothing in our life that we've certainly nothing in our life that we've aspired to when it comes to our aspired to when it comes to our aspired to when it comes to our now the reason why I want to focus on now the reason why I want to focus on now the reason why I want to focus on this one is because I haven't seen any this one is because I haven't seen any this one is because I haven't seen any articles about this maybe they're out articles about this maybe they're out articles about this maybe they're out there I haven't seen any but what I'm there I haven't seen any but what I'm there I haven't seen any but what I'm seeing and what I can imagine people seeing and what I can imagine people seeing and what I can imagine people might have in their head is is this what might have in their head is is this what might have in their head is is this what retiring early is about am I just going retiring early is about am I just going retiring early is about am I just going to be sitting on the couch and watching to be sitting on the couch and watching to be sitting on the couch and watching Netflix for ten hours a day we have been Netflix for ten hours a day we have been Netflix for ten hours a day we have been doing some of that tim and i have all doing some of that tim and i have all doing some of that tim and i have all kinds of catch-up work to do on the kinds of catch-up work to do on the kinds of catch-up work to do on the computer meanwhile we're binging all the computer meanwhile we're binging all the computer meanwhile we're binging all the shows on Netflix and I know that my shows on Netflix and I know that my shows on Netflix and I know that my friends are as well because that's how friends are as well because that's how friends are as well because that's how we're even learning about the shows the we're even learning about the shows the we're even learning about the shows the binge watch but if you're like this binge watch but if you're like this binge watch but if you're like this totally stinks this is not what I want totally stinks this is not what I want totally stinks this is not what I want to do in retirement I'm just going to to do in retirement I'm just going to to do in retirement I'm just going to live the kind of life that I lived in live the kind of life that I lived in live the kind of life that I lived in the past and go back to that and keep the past and go back to that and keep the past and go back to that and keep earning an income and now that I've had earning an income and now that I've had earning an income and now that I've had this taste of what I think retirement this taste of what I think retirement this taste of what I think retirement might look like this stinks and by the might look like this stinks and by the might look like this stinks and by the way this stinks for us too this isn't way this stinks for us too this isn't way this stinks for us too this isn't the retired kind of life that we want to the retired kind of life that we want to the retired kind of life that we want to leave either we want to be out traveling leave either we want to be out traveling leave either we want to be out traveling we aren't retired life includes tons of we aren't retired life includes tons of we aren't retired life includes tons of volunteering it includes traveling and volunteering it includes traveling and volunteering it includes traveling and we go meet people all over the world we we go meet people all over the world we we go meet people all over the world we go see beautiful churches and mountains go see beautiful churches and mountains go see beautiful churches and mountains and fields of flowers and try all the and fields of flowers and try all the and fields of flowers and try all the deserts in a new place and take the deserts in a new place and take the deserts in a new place and take the subway and learn all kinds of things subway and learn all kinds of things subway and learn all kinds of things about people watching in in other cities about people watching in in other cities about people watching in in other cities and we love it so we are living our best and we love it so we are living our best and we love it so we are living our best life now either so if anyone is thinking life now either so if anyone is thinking life now either so if anyone is thinking huh this retired thing kind of stinks if huh this retired thing kind of stinks if huh this retired thing kind of stinks if this is what it is this is nothing like this is what it is this is nothing like this is what it is this is nothing like what it is and the reason why I can be what it is and the reason why I can be what it is and the reason why I can be so confident about this is because the so confident about this is because the so confident about this is because the day that this video comes out is my five day that this video comes out is my five day that this video comes out is my five year anniversary of reaching fire five year anniversary of reaching fire five year anniversary of reaching fire five years ago today I left my corporate job years ago today I left my corporate job years ago today I left my corporate job I left my cubicle I had no more meetings I left my cubicle I had no more meetings I left my cubicle I had no more meetings no more stuff like that and embrace the no more stuff like that and embrace the no more stuff like that and embrace the life with Tim of freedom and kind of life with Tim of freedom and kind of life with Tim of freedom and kind of doing whatever I want so it is doing whatever I want so it is doing whatever I want so it is absolutely worth pursuing something else absolutely worth pursuing something else absolutely worth pursuing something else worth mentioning is that we seem like worth mentioning is that we seem like worth mentioning is that we seem like we're sort of an anomaly in the fire we're sort of an anomaly in the fire we're sort of an anomaly in the fire world and that we are actually living world and that we are actually living world and that we are actually living off our investments the only income that off our investments the only income that off our investments the only income that we have outside of our investments is we have outside of our investments is we have outside of our investments is because of our YouTube channel which because of our YouTube channel which because of our YouTube channel which isn't that much now I want to ask our isn't that much now I want to ask our isn't that much now I want to ask our audience for something and I hope that audience for something and I hope that audience for something and I hope that you've stuck around this long because we you've stuck around this long because we you've stuck around this long because we have many many viewers who have already have many many viewers who have already have many many viewers who have already reached fire now because we finally have reached fire now because we finally have reached fire now because we finally have Wi-Fi in our home thanks to Tim Wi-Fi in our home thanks to Tim Wi-Fi in our home thanks to Tim installing it last week we can be in installing it last week we can be in installing it last week we can be in communication with people well I am in communication with people well I am in communication with people well I am in communication with a ton of our friends communication with a ton of our friends communication with a ton of our friends who are also who are also who are also fire and the overwhelming sentiment that fire and the overwhelming sentiment that fire and the overwhelming sentiment that I'm getting over and over and over is I'm getting over and over and over is I'm getting over and over and over is thank goodness on fire I don't have a thank goodness on fire I don't have a thank goodness on fire I don't have a single person in my life saying that single person in my life saying that single person in my life saying that they wish that they had stayed at work they wish that they had stayed at work they wish that they had stayed at work that this is tomorrow is never promised that this is tomorrow is never promised that this is tomorrow is never promised and I think this highlights this more and I think this highlights this more and I think this highlights this more than ever and if there is something else than ever and if there is something else than ever and if there is something else that you want to be doing well fire that you want to be doing well fire that you want to be doing well fire allows you to work toward that and I allows you to work toward that and I allows you to work toward that and I think that is very powerful I'm gonna think that is very powerful I'm gonna think that is very powerful I'm gonna ask for something for my five-year fire ask for something for my five-year fire ask for something for my five-year fire anniversary from our audience I hope anniversary from our audience I hope anniversary from our audience I hope that you will indulge me on this what I that you will indulge me on this what I that you will indulge me on this what I would like if you are already fire if would like if you are already fire if would like if you are already fire if you are loving being fire maybe you you are loving being fire maybe you you are loving being fire maybe you don't love every single thing about it don't love every single thing about it don't love every single thing about it but there's a lot to love about it if but there's a lot to love about it if but there's a lot to love about it if you're already there what I want to know you're already there what I want to know you're already there what I want to know is what are your favorite parts about it is what are your favorite parts about it is what are your favorite parts about it what are you not missing by the way what are you not missing by the way what are you not missing by the way Monday mornings are like my favorite Monday mornings are like my favorite Monday mornings are like my favorite time of the day because I'm like it's time of the day because I'm like it's time of the day because I'm like it's Monday and then I realize it's still Monday and then I realize it's still Monday and then I realize it's still five years later I still don't know that five years later I still don't know that five years later I still don't know that I'm not working sometimes like oh my I'm not working sometimes like oh my I'm not working sometimes like oh my goodness it's Monday and I get to do goodness it's Monday and I get to do goodness it's Monday and I get to do whatever I want every day is a Saturday whatever I want every day is a Saturday whatever I want every day is a Saturday so I want to know the pleasures and the so I want to know the pleasures and the so I want to know the pleasures and the absolute incredible things that you can absolute incredible things that you can absolute incredible things that you can do because you are fire in your life and do because you are fire in your life and do because you are fire in your life and for the other side who is not yet fire I for the other side who is not yet fire I for the other side who is not yet fire I would love for you to go read those would love for you to go read those would love for you to go read those because there is a lot of nastiness because there is a lot of nastiness because there is a lot of nastiness going around about fire now so if you're going around about fire now so if you're going around about fire now so if you're looking for some motivation or for some looking for some motivation or for some looking for some motivation or for some inspiration maybe you've been on the inspiration maybe you've been on the inspiration maybe you've been on the path for a long time and it feels kind path for a long time and it feels kind path for a long time and it feels kind of hopeless this week I totally get it of hopeless this week I totally get it of hopeless this week I totally get it and I feel for you so badly so I'm and I feel for you so badly so I'm and I feel for you so badly so I'm hoping that our fire viewers will help hoping that our fire viewers will help hoping that our fire viewers will help me out in letting you know this is a me out in letting you know this is a me out in letting you know this is a worthy path to be on keep to the course worthy path to be on keep to the course worthy path to be on keep to the course it might be a bit of a tough stumble we it might be a bit of a tough stumble we it might be a bit of a tough stumble we get it we can all put ourselves in your get it we can all put ourselves in your get it we can all put ourselves in your shoes so hopefully they like I said they shoes so hopefully they like I said they shoes so hopefully they like I said they give us the good stuff and you can get give us the good stuff and you can get give us the good stuff and you can get back on your journey feeling fortified back on your journey feeling fortified back on your journey feeling fortified that you will get there at some point so that you will get there at some point so that you will get there at some point so if you found today's video helpful if you found today's video helpful if you found today's video helpful please give us a thumbs up again make please give us a thumbs up again make please give us a thumbs up again make sure to subscribe sure to subscribe sure to subscribe bring the notification Bell we'll see bring the notification Bell we'll see bring the notification Bell we'll see you next Wednesday adios WEBVTT Kind: captions Language: en i think a lot of people i think a lot of people i think a lot of people are afraid to pursue financial are afraid to pursue financial are afraid to pursue financial independence independence independence because i they think it's hard they because i they think it's hard they because i they think it's hard they think it's think it's think it's they have to sacrifice everything to be they have to sacrifice everything to be they have to sacrifice everything to be able to do it able to do it able to do it that they can't have any fun that they that they can't have any fun that they that they can't have any fun that they can't they just have to put life on hold can't they just have to put life on hold can't they just have to put life on hold and save every single penny to get there and save every single penny to get there and save every single penny to get there i think also another reason that a lot i think also another reason that a lot i think also another reason that a lot of people don't of people don't of people don't pursue financial independence is because pursue financial independence is because pursue financial independence is because maybe they don't realize they can maybe they don't realize they can maybe they don't realize they can so i think there's two sides to it so i think there's two sides to it so i think there's two sides to it either they either they either they don't realize it's truly doable whether don't realize it's truly doable whether don't realize it's truly doable whether they think you have to be making six they think you have to be making six they think you have to be making six figures to do it figures to do it figures to do it or whatever myths they believe that or whatever myths they believe that or whatever myths they believe that they've fallen for they've fallen for they've fallen for uh whatever pressure society has told uh whatever pressure society has told uh whatever pressure society has told them them them that they've fallen for that they can't that they've fallen for that they can't that they've fallen for that they can't reach financial independence especially reach financial independence especially reach financial independence especially not at a young age not at a young age not at a young age or they think that it's too hard to do or they think that it's too hard to do or they think that it's too hard to do they think that they have to sacrifice they think that they have to sacrifice they think that they have to sacrifice everything that they love everything that they love everything that they love in order to get there but if you truly in order to get there but if you truly in order to get there but if you truly learn how to manage the money and how to learn how to manage the money and how to learn how to manage the money and how to to place it where it needs to be and to place it where it needs to be and to place it where it needs to be and work towards that financial independence work towards that financial independence work towards that financial independence you can budget in the things you love you can budget in the things you love you can budget in the things you love you can still enjoy life you can still enjoy life you can still enjoy life and work towards it so i hope that that and work towards it so i hope that that and work towards it so i hope that that we can educate and show people we can educate and show people we can educate and show people it can actually not be terrible it can it can actually not be terrible it can it can actually not be terrible it can be fun almost be fun almost be fun almost but i think a lot of people don't but i think a lot of people don't but i think a lot of people don't realize that and that's why they're not realize that and that's why they're not realize that and that's why they're not doing this doing this doing this some people probably are afraid of the some people probably are afraid of the some people probably are afraid of the math behind becoming financial math behind becoming financial math behind becoming financial independent financially independent independent financially independent independent financially independent you know you've they hear the word you know you've they hear the word you know you've they hear the word spreadsheet and they want to run spreadsheet and they want to run spreadsheet and they want to run but these days there are a lot of tools but these days there are a lot of tools but these days there are a lot of tools out there that can help them manage out there that can help them manage out there that can help them manage their money their money their money watch their budgeting they can track watch their budgeting they can track watch their budgeting they can track their expenses their expenses their expenses and there's so many different ways to and there's so many different ways to and there's so many different ways to invest in things you need to do there's invest in things you need to do there's invest in things you need to do there's the internet has made it so much more the internet has made it so much more the internet has made it so much more open open open and accessible that there's no reason and accessible that there's no reason and accessible that there's no reason for that fear for that fear for that fear to be afraid of the numbers because and to be afraid of the numbers because and to be afraid of the numbers because and if you can't do it if you can't do it if you can't do it there's thousands of us that are walking there's thousands of us that are walking there's thousands of us that are walking millions of people around the the millions of people around the the millions of people around the the country country country through the path to financial through the path to financial through the path to financial independence so there's tons of independence so there's tons of independence so there's tons of resources out there too to help them resources out there too to help them resources out there too to help them i do think that some people are afraid i do think that some people are afraid i do think that some people are afraid of the math behind financial of the math behind financial of the math behind financial independence though independence though independence though i think that there's a mistrust with i think that there's a mistrust with i think that there's a mistrust with advisors and i think advisors and i think advisors and i think people there's there have been so many people there's there have been so many people there's there have been so many scams or collapses you know with the scams or collapses you know with the scams or collapses you know with the economy economy economy that some people are afraid to trust that some people are afraid to trust that some people are afraid to trust others with their money others with their money others with their money they're afraid to put it in the stock they're afraid to put it in the stock they're afraid to put it in the stock market or they're afraid to give it to market or they're afraid to give it to market or they're afraid to give it to an advisor to manage an advisor to manage an advisor to manage because unfortunately we've seen such because unfortunately we've seen such because unfortunately we've seen such downfalls not too far you know not too downfalls not too far you know not too downfalls not too far you know not too long ago long ago long ago so uh i do think that's part of it i so uh i do think that's part of it i so uh i do think that's part of it i think right now we are think right now we are think right now we are dealing with a lot of distrust i don't dealing with a lot of distrust i don't dealing with a lot of distrust i don't think people trust think people trust think people trust big banks or the fed or or advisors they big banks or the fed or or advisors they big banks or the fed or or advisors they don't trust don't trust don't trust institutions i think that's what we're institutions i think that's what we're institutions i think that's what we're finding is finding is finding is big business big government big business big government big business big government we're in a situation where there is a we're in a situation where there is a we're in a situation where there is a lack of trust lack of trust lack of trust i i think there's just a general feeling i i think there's just a general feeling i i think there's just a general feeling and and even with employers i think part and and even with employers i think part and and even with employers i think part of the financial independence movement of the financial independence movement of the financial independence movement of building your own source of income of building your own source of income of building your own source of income that also is because of a mis a lack of that also is because of a mis a lack of that also is because of a mis a lack of trust trust trust you no longer fully put your faith in you no longer fully put your faith in you no longer fully put your faith in your employer you're not going to give your employer you're not going to give your employer you're not going to give them them them years of your life because you years of your life because you years of your life because you blindly believe that they're going to do blindly believe that they're going to do blindly believe that they're going to do whatever it is in your best interest whatever it is in your best interest whatever it is in your best interest so i i do think that the general so i i do think that the general so i i do think that the general the general environment around big the general environment around big the general environment around big business business business big companies uh you know big companies uh you know big companies uh you know any kind of institution i think there is any kind of institution i think there is any kind of institution i think there is a a a quite a bit of mistrust and quite a bit of mistrust and quite a bit of mistrust and that's where this movement can come in that's where this movement can come in that's where this movement can come in because or has come in because we're because or has come in because we're because or has come in because we're finding people that we can trust finding people that we can trust finding people that we can trust we're finding people that have truly we're finding people that have truly we're finding people that have truly done it we're not just having to rely on done it we're not just having to rely on done it we're not just having to rely on some sort of institution that that isn't some sort of institution that that isn't some sort of institution that that isn't a human being a human being a human being right i've seen financial advisors that right i've seen financial advisors that right i've seen financial advisors that their motives are in the wrong place their motives are in the wrong place their motives are in the wrong place it's not they're not incentivized to truly help they're not incentivized to truly help they're not incentivized to truly help people they're incentivized to to get people they're incentivized to to get people they're incentivized to to get the best commission the best commission the best commission to sell the best product to sell the best product to sell the best product it's it's whoever can lobby them the it's it's whoever can lobby them the it's it's whoever can lobby them the best best best that's what gets pushed right it's even that's what gets pushed right it's even that's what gets pushed right it's even the lawmakers the lawmakers the lawmakers they're not trying to protect people in they're not trying to protect people in they're not trying to protect people in the financial world they're protecting the financial world they're protecting the financial world they're protecting businesses they're protecting banks businesses they're protecting banks businesses they're protecting banks the the people who have the power the the people who have the power the the people who have the power they're not looking at the best they're not looking at the best they're not looking at the best interests of the people interests of the people interests of the people so maybe the fears that giving your so maybe the fears that giving your so maybe the fears that giving your money to someone to manage money to someone to manage money to someone to manage i don't think they're that unfounded i don't think they're that unfounded i don't think they're that unfounded yeah i think this financial movement is yeah i think this financial movement is yeah i think this financial movement is taking the control back taking the control back taking the control back we're seeing people manage their own we're seeing people manage their own we're seeing people manage their own money a lot more money a lot more money a lot more or they we can word of mouth and you can or they we can word of mouth and you can or they we can word of mouth and you can actually actually actually give trusted suggestions on who to use give trusted suggestions on who to use give trusted suggestions on who to use or who to work with or who to work with or who to work with so i think the fact that it's no longer so i think the fact that it's no longer so i think the fact that it's no longer blindly walking into a bank and saying blindly walking into a bank and saying blindly walking into a bank and saying here's my money here's my money here's my money now we have this this community this now we have this this community this now we have this this community this movement that's saying you know this is movement that's saying you know this is movement that's saying you know this is what you should be doing with your money what you should be doing with your money what you should be doing with your money or or or here's what i've done with my money and here's what i've done with my money and here's what i've done with my money and what worked for me we can learn from what worked for me we can learn from what worked for me we can learn from you know tried and true tested theories you know tried and true tested theories you know tried and true tested theories it's you know it's it's not theories it's you know it's it's not theories it's you know it's it's not theories it's true experience personal experience it's true experience personal experience it's true experience personal experience that people are that people are that people are sharing it that they've seen work sharing it that they've seen work sharing it that they've seen work and therefore other people can do it and therefore other people can do it and therefore other people can do it they can trust these recommendations they can trust these recommendations they can trust these recommendations because it's coming from people because it's coming from people because it's coming from people that have been there that have done that that have been there that have done that that have been there that have done that that are now financially independent that are now financially independent that are now financially independent so i think this movement i think it's so i think this movement i think it's so i think this movement i think it's it's it's giving people access to it's it's giving people access to it's it's giving people access to information so they can make better information so they can make better information so they can make better decisions decisions decisions and trust what they're doing with their and trust what they're doing with their and trust what they're doing with their money versus just blindly giving it to money versus just blindly giving it to money versus just blindly giving it to someone and hoping someone and hoping someone and hoping that they're a good person and want to that they're a good person and want to that they're a good person and want to do the best WEBVTT Kind: captions Language: en [Music] [Music] [Music] all right everybody welcome back excited all right everybody welcome back excited all right everybody welcome back excited to get into the latest and greatest in to get into the latest and greatest in to get into the latest and greatest in the financial independence community and the financial independence community and the financial independence community and actually I guess to kind of T this up actually I guess to kind of T this up actually I guess to kind of T this up Brad I threw a bumper at the beginning Brad I threw a bumper at the beginning Brad I threw a bumper at the beginning of the episode that we did with Joanna of the episode that we did with Joanna of the episode that we did with Joanna pen before we rolled it out just just pen before we rolled it out just just pen before we rolled it out just just acknowledging a few ridiculously titled acknowledging a few ridiculously titled acknowledging a few ridiculously titled articles that I had seen saying is the articles that I had seen saying is the articles that I had seen saying is the financial independence movement over is financial independence movement over is financial independence movement over is it all gone and you didn't get a chance it all gone and you didn't get a chance it all gone and you didn't get a chance to respond or weigh in on that but man to respond or weigh in on that but man to respond or weigh in on that but man are they right over oh man that is are they right over oh man that is are they right over oh man that is really genuinely the most preposterous really genuinely the most preposterous really genuinely the most preposterous thing I've heard in a long time I think thing I've heard in a long time I think thing I've heard in a long time I think the financial independence movement was the financial independence movement was the financial independence movement was born out of the recession and I born out of the recession and I born out of the recession and I think in times of turmoil people need think in times of turmoil people need think in times of turmoil people need this information now more than ever this information now more than ever this information now more than ever right like it's easy to delude yourself right like it's easy to delude yourself right like it's easy to delude yourself into believing that living paycheck to into believing that living paycheck to into believing that living paycheck to paycheck or even getting into a little paycheck or even getting into a little paycheck or even getting into a little credit card debt is okay in times of credit card debt is okay in times of credit card debt is okay in times of Plenty right like so many people delude Plenty right like so many people delude Plenty right like so many people delude themselves into thinking that like oh I themselves into thinking that like oh I themselves into thinking that like oh I can pay my bills I'm going along to get can pay my bills I'm going along to get can pay my bills I'm going along to get along right everything's happy but man along right everything's happy but man along right everything's happy but man you know - for Game of Thrones fans you know - for Game of Thrones fans you know - for Game of Thrones fans winter winter is coming right like and winter winter is coming right like and winter winter is coming right like and and that doesn't mean be doom and gloom and that doesn't mean be doom and gloom and that doesn't mean be doom and gloom it means the good times are not always it means the good times are not always it means the good times are not always going to be there and you're fooling going to be there and you're fooling going to be there and you're fooling yourself if you think that right so like yourself if you think that right so like yourself if you think that right so like you have to plan for situations where you have to plan for situations where you have to plan for situations where things might get even minorly difficult things might get even minorly difficult things might get even minorly difficult right you might lose your job in in even right you might lose your job in in even right you might lose your job in in even in normal times right like you might in normal times right like you might in normal times right like you might lose your job and you need to find a new lose your job and you need to find a new lose your job and you need to find a new job and it takes you days right like job and it takes you days right like job and it takes you days right like when you are following the path to fie when you are following the path to fie when you are following the path to fie you have that runway that's simple right you have that runway that's simple right you have that runway that's simple right like that's just life and you have power like that's just life and you have power like that's just life and you have power you don't need to say yes to the first you don't need to say yes to the first you don't need to say yes to the first job that comes along right like and now job that comes along right like and now job that comes along right like and now clearly now of all times I haven't heard clearly now of all times I haven't heard clearly now of all times I haven't heard much doom and gloom financially from our much doom and gloom financially from our much doom and gloom financially from our community at all and it's because community at all and it's because community at all and it's because they're in positions of strength right they're in positions of strength right they're in positions of strength right people who have been far people who have been far people who have been far the path to five for any period of time the path to five for any period of time the path to five for any period of time any period of time whatsoever have been any period of time whatsoever have been any period of time whatsoever have been saving money they've been thinking about saving money they've been thinking about saving money they've been thinking about their finances they have a savings rate their finances they have a savings rate their finances they have a savings rate they have emergency savings maybe they they have emergency savings maybe they they have emergency savings maybe they have even more than just there are three have even more than just there are three have even more than just there are three to six months of emergency savings to six months of emergency savings to six months of emergency savings hopefully many many people have hundreds hopefully many many people have hundreds hopefully many many people have hundreds of thousands of dollars of thousands of dollars of thousands of dollars there are things to worry about right there are things to worry about right there are things to worry about right now but so many people in our community now but so many people in our community now but so many people in our community are not at an existential crisis are not at an existential crisis are not at an existential crisis financially because they've been financially because they've been financially because they've been following the path to fine and I think following the path to fine and I think following the path to fine and I think tens of millions of people if not more tens of millions of people if not more tens of millions of people if not more just in the US alone are going to wake just in the US alone are going to wake just in the US alone are going to wake up to the enormous life-changing power up to the enormous life-changing power up to the enormous life-changing power of the financial independence movement of the financial independence movement of the financial independence movement because they realized that it's not okay because they realized that it's not okay because they realized that it's not okay now to just kind of get along or just now to just kind of get along or just now to just kind of get along or just scrape by and you know just be scrape by and you know just be scrape by and you know just be blissfully unaware I mean that that's blissfully unaware I mean that that's blissfully unaware I mean that that's the sad reality right now is people are the sad reality right now is people are the sad reality right now is people are realizing that's just not good enough realizing that's just not good enough realizing that's just not good enough you cannot just plan for the best you you cannot just plan for the best you you cannot just plan for the best you have to have that space between your have to have that space between your have to have that space between your income and your expenses you need to income and your expenses you need to income and your expenses you need to save money not for some retirement save money not for some retirement save money not for some retirement years down the road for life life is years down the road for life life is years down the road for life life is bumpy sometimes obviously this bump is bumpy sometimes obviously this bump is bumpy sometimes obviously this bump is bigger than any of us this could be bigger than any of us this could be bigger than any of us this could be described as a pothole yes mountainous described as a pothole yes mountainous described as a pothole yes mountainous pothole but life is bumpy even in the pothole but life is bumpy even in the pothole but life is bumpy even in the best of times best of times best of times so to only plan for the perfect scenario so to only plan for the perfect scenario so to only plan for the perfect scenario is foolish at best so anyway Jonathan is foolish at best so anyway Jonathan is foolish at best so anyway Jonathan the short answer you to question is the the short answer you to question is the the short answer you to question is the fire movement is not only not going fire movement is not only not going fire movement is not only not going anywhere anywhere anywhere I think the enormous life changing power I think the enormous life changing power I think the enormous life changing power of this is going to be brought front and of this is going to be brought front and of this is going to be brought front and center to tens of millions of people center to tens of millions of people center to tens of millions of people yeah I agree with you I think it's yeah I agree with you I think it's yeah I agree with you I think it's ridiculous borderline irresponsible to ridiculous borderline irresponsible to ridiculous borderline irresponsible to have an article like that to chide have an article like that to chide have an article like that to chide people for saving money when the market people for saving money when the market people for saving money when the market is going down it's it's not gonna age is going down it's it's not gonna age is going down it's it's not gonna age well right I mean there's no universe well right I mean there's no universe well right I mean there's no universe where someone that has saved money and where someone that has saved money and where someone that has saved money and prepared when times were good is gonna prepared when times were good is gonna prepared when times were good is gonna look back with regret on that look back with regret on that look back with regret on that preparation and anybody that writes that preparation and anybody that writes that preparation and anybody that writes that article or fosters that line of thinking article or fosters that line of thinking article or fosters that line of thinking will just it's not going to age well so will just it's not going to age well so will just it's not going to age well so if someone if someone comes to you and if someone if someone comes to you and if someone if someone comes to you and ask you like what's your perspective on ask you like what's your perspective on ask you like what's your perspective on this just be honest like it's not that this just be honest like it's not that this just be honest like it's not that you're not worried it's just that you're you're not worried it's just that you're you're not worried it's just that you're not worried about your finances right not worried about your finances right not worried about your finances right you're you're in a much better place now you're you're in a much better place now you're you're in a much better place now than you would have been in a vacuum than you would have been in a vacuum than you would have been in a vacuum where you were paycheck to paycheck where you were paycheck to paycheck where you were paycheck to paycheck I think that's something that as a I think that's something that as a I think that's something that as a community the financial independence community the financial independence community the financial independence community I think that's something that community I think that's something that community I think that's something that we can all agree on we are in much we can all agree on we are in much we can all agree on we are in much better shape now than we better shape now than we better shape now than we would have been in an alternate would have been in an alternate would have been in an alternate paycheck-to-paycheck scenario happy to paycheck-to-paycheck scenario happy to paycheck-to-paycheck scenario happy to talk about it more if you have more talk about it more if you have more talk about it more if you have more questions reach out to us but I mean questions reach out to us but I mean questions reach out to us but I mean that's just it's just that simple it that's just it's just that simple it that's just it's just that simple it really is and here's where I want to say really is and here's where I want to say really is and here's where I want to say you know right now and this is what I you know right now and this is what I you know right now and this is what I was getting at with that bumper at the was getting at with that bumper at the was getting at with that bumper at the beginning of that episode because people beginning of that episode because people beginning of that episode because people are scared because they realize that the are scared because they realize that the are scared because they realize that the status quo is terrifying they're looking status quo is terrifying they're looking status quo is terrifying they're looking to build some financial resilience in to build some financial resilience in to build some financial resilience in their life and maybe a money topic that their life and maybe a money topic that their life and maybe a money topic that historically has been taboo they're historically has been taboo they're historically has been taboo they're actually willing to have a conversation actually willing to have a conversation actually willing to have a conversation now now now what an opportunity to go with open arms what an opportunity to go with open arms what an opportunity to go with open arms and give information give help point to and give information give help point to and give information give help point to great resources just be lend a hand of great resources just be lend a hand of great resources just be lend a hand of support when possible be there for our support when possible be there for our support when possible be there for our friends our family members our community friends our family members our community friends our family members our community we're going to get through this together we're going to get through this together we're going to get through this together and it's not going to be without pain and it's not going to be without pain and it's not going to be without pain but we are going to get through this but we are going to get through this but we are going to get through this so anyways actually with that Brad you so anyways actually with that Brad you so anyways actually with that Brad you know I used that bumper the beginning know I used that bumper the beginning know I used that bumper the beginning the episode is a setup for Joanna pen the episode is a setup for Joanna pen the episode is a setup for Joanna pen because this is actually something because this is actually something because this is actually something we're referencing from Dom who were we're referencing from Dom who were we're referencing from Dom who were gonna be having on the show here in the gonna be having on the show here in the gonna be having on the show here in the near future but he describes something near future but he describes something near future but he describes something as an awakening now you can have as an awakening now you can have as an awakening now you can have awakening usually in awakening awakening usually in awakening awakening usually in awakening happenings for the vast majority of happenings for the vast majority of happenings for the vast majority of people because a traumatic event happens people because a traumatic event happens people because a traumatic event happens and it forces you out of status quo it and it forces you out of status quo it and it forces you out of status quo it forces you to analyze and make dramatic forces you to analyze and make dramatic forces you to analyze and make dramatic change and if you were to look back change and if you were to look back change and if you were to look back was a very traumatic experience for many was a very traumatic experience for many was a very traumatic experience for many people Joanna Penn including look what people Joanna Penn including look what people Joanna Penn including look what she built from that look at the life she she built from that look at the life she she built from that look at the life she was able to carve because she said you was able to carve because she said you was able to carve because she said you know what I'm not gonna settle for a know what I'm not gonna settle for a know what I'm not gonna settle for a out of anymore out of anymore out of anymore I want to reclaim decades of my life and I want to reclaim decades of my life and I want to reclaim decades of my life and I want to spin my most precious I want to spin my most precious I want to spin my most precious non-renewable resource my time I want to non-renewable resource my time I want to non-renewable resource my time I want to spin that in pursuit of something that spin that in pursuit of something that spin that in pursuit of something that actually gets me excited and I want to I actually gets me excited and I want to I actually gets me excited and I want to I want to a life that I can run towards want to a life that I can run towards want to a life that I can run towards not something that I'm running away from not something that I'm running away from not something that I'm running away from that is the inflection point that many that is the inflection point that many that is the inflection point that many of us will experience over the coming of us will experience over the coming of us will experience over the coming months what an opportunity to look at months what an opportunity to look at months what an opportunity to look at the problem a little bit differently and the problem a little bit differently and the problem a little bit differently and Brad I know you were inspired when when Brad I know you were inspired when when Brad I know you were inspired when when we finished recording it like your exact we finished recording it like your exact we finished recording it like your exact words to me were we need to release this words to me were we need to release this words to me were we need to release this episode immediately yeah that about episode immediately yeah that about episode immediately yeah that about covers it I when we recorded this and covers it I when we recorded this and covers it I when we recorded this and certainly listening to it again I mean certainly listening to it again I mean certainly listening to it again I mean this is a top-ten episode of choose fi this is a top-ten episode of choose fi this is a top-ten episode of choose fi for me and that you know I don't say for me and that you know I don't say for me and that you know I don't say that lightly I I just have like energy that lightly I I just have like energy that lightly I I just have like energy coursing through my veins and when coursing through my veins and when coursing through my veins and when listening to her story and you know listening to her story and you know listening to her story and you know looking at a problem a little bit looking at a problem a little bit looking at a problem a little bit differently right like I think that is differently right like I think that is differently right like I think that is how you describe how she's looked at her how you describe how she's looked at her how you describe how she's looked at her entire business life and let's make no entire business life and let's make no entire business life and let's make no mistake here she mistake here she mistake here she looks at this as a multi-faceted looks at this as a multi-faceted looks at this as a multi-faceted business right so many people have business right so many people have business right so many people have limiting beliefs how many people do you limiting beliefs how many people do you limiting beliefs how many people do you know that are quote-unquote creatives know that are quote-unquote creatives know that are quote-unquote creatives that have these limiting beliefs that oh that have these limiting beliefs that oh that have these limiting beliefs that oh it's selling out to to try to look at it's selling out to to try to look at it's selling out to to try to look at this as a business or oh I could never this as a business or oh I could never this as a business or oh I could never be a sellout I'm in it for my art well be a sellout I'm in it for my art well be a sellout I'm in it for my art well Joanna would argue they're not mutually Joanna would argue they're not mutually Joanna would argue they're not mutually exclusive right like if anything looking exclusive right like if anything looking exclusive right like if anything looking and focusing on the business side has and focusing on the business side has and focusing on the business side has augmented her audience right augmented her audience right augmented her audience right dramatically so because she's been able dramatically so because she's been able dramatically so because she's been able to find these successful ways to raise to find these successful ways to raise to find these successful ways to raise her profile through podcasts and things her profile through podcasts and things her profile through podcasts and things like this like that ultimately have like this like that ultimately have like this like that ultimately have nothing to do with the actual books that nothing to do with the actual books that nothing to do with the actual books that she's writing but yet that clearly makes she's writing but yet that clearly makes she's writing but yet that clearly makes her an expert in a field and people look her an expert in a field and people look her an expert in a field and people look to her that is helping her dramatically to her that is helping her dramatically to her that is helping her dramatically she has many different sources and lines she has many different sources and lines she has many different sources and lines of income from this one overall business of income from this one overall business of income from this one overall business so I think that is just it really so I think that is just it really so I think that is just it really inspired me because I think a lot of inspired me because I think a lot of inspired me because I think a lot of people do get held back by those people do get held back by those people do get held back by those limiting beliefs or they're they're limiting beliefs or they're they're limiting beliefs or they're they're satisfied with maybe one successful line satisfied with maybe one successful line satisfied with maybe one successful line of business and you know it's working of business and you know it's working of business and you know it's working and again it's working in good times but and again it's working in good times but and again it's working in good times but who knows what happens but when you who knows what happens but when you who knows what happens but when you diversify yourself you have options diversify yourself you have options diversify yourself you have options right and you can always drill down on right and you can always drill down on right and you can always drill down on things that are working or that you want things that are working or that you want things that are working or that you want to see succeed more or maybe just where to see succeed more or maybe just where to see succeed more or maybe just where your passion and your energy is right your passion and your energy is right your passion and your energy is right like having that option just optionality like having that option just optionality like having that option just optionality in life is a positive and and I think in life is a positive and and I think in life is a positive and and I think Joanna typified that like no one else Joanna typified that like no one else Joanna typified that like no one else I've seen so m'kay I know this was a I've seen so m'kay I know this was a I've seen so m'kay I know this was a huge episode for you I know that she is huge episode for you I know that she is huge episode for you I know that she is the personal hero of yours and you the personal hero of yours and you the personal hero of yours and you advocated for her to come on the show advocated for her to come on the show advocated for her to come on the show you know you you joined us on the on the you know you you joined us on the on the you know you you joined us on the on the episode as well just like what has her episode as well just like what has her episode as well just like what has her personal journey meant for you as a personal journey meant for you as a personal journey meant for you as a source of inspiration and you know what source of inspiration and you know what source of inspiration and you know what actions have you taken in her own life actions have you taken in her own life actions have you taken in her own life because of kind of the path that she because of kind of the path that she because of kind of the path that she illustrated for us illustrated for us illustrated for us yeah I think she really underscored some yeah I think she really underscored some yeah I think she really underscored some important points that I've taken to important points that I've taken to important points that I've taken to heart and that is you know we look at heart and that is you know we look at heart and that is you know we look at her success now and we say wow that's her success now and we say wow that's her success now and we say wow that's amazing that she built this but then amazing that she built this but then amazing that she built this but then reminded she started in she said reminded she started in she said reminded she started in she said but she really the fire was let in but she really the fire was let in but she really the fire was let in when you know the global economy when you know the global economy when you know the global economy collapsed and she said you know she had collapsed and she said you know she had collapsed and she said you know she had a couple years of maybe making a a couple years of maybe making a a couple years of maybe making a thousand dollars like you know it took a thousand dollars like you know it took a thousand dollars like you know it took a while to build the momentum and then while to build the momentum and then while to build the momentum and then over time it got there and I think over time it got there and I think over time it got there and I think that's a really good reminder to myself that's a really good reminder to myself that's a really good reminder to myself and also to other people in our and also to other people in our and also to other people in our community that if you're looking to community that if you're looking to community that if you're looking to build something now you know maybe build something now you know maybe build something now you know maybe you're panicked now about the economy you're panicked now about the economy you're panicked now about the economy maybe you're panicked now about when it maybe you're panicked now about when it maybe you're panicked now about when it where's that next paycheck gonna come where's that next paycheck gonna come where's that next paycheck gonna come from if you're worried about being from if you're worried about being from if you're worried about being furloughed or laid off you know start to furloughed or laid off you know start to furloughed or laid off you know start to build something now it may not replace build something now it may not replace build something now it may not replace your total income you know it may take a your total income you know it may take a your total income you know it may take a while to do that and build to that but while to do that and build to that but while to do that and build to that but it's that consistent effort it's it's that consistent effort it's it's that consistent effort it's building those systems and then over building those systems and then over building those systems and then over time seeing that success and also time seeing that success and also time seeing that success and also knowing that you know from her saying knowing that you know from her saying knowing that you know from her saying she just fiction and nonfiction I she just fiction and nonfiction I she just fiction and nonfiction I thought for so long I couldn't do both thought for so long I couldn't do both thought for so long I couldn't do both and then you know you guys asked me hey and then you know you guys asked me hey and then you know you guys asked me hey can you help with our book and I said oh can you help with our book and I said oh can you help with our book and I said oh sure you know we learned all the things sure you know we learned all the things sure you know we learned all the things so I've actually taken from her more so I've actually taken from her more so I've actually taken from her more empowerment to say no I can define for empowerment to say no I can define for empowerment to say no I can define for myself the career that I want to make myself the career that I want to make myself the career that I want to make for myself as an author and that is I for myself as an author and that is I for myself as an author and that is I write sci-fi and thriller and yes I also write sci-fi and thriller and yes I also write sci-fi and thriller and yes I also now have my own nonfiction books about now have my own nonfiction books about now have my own nonfiction books about self-publishing and things like that self-publishing and things like that self-publishing and things like that because I want to help more people and because I want to help more people and because I want to help more people and be there for people so I've definitely be there for people so I've definitely be there for people so I've definitely taken a lot of inspiration from her but taken a lot of inspiration from her but taken a lot of inspiration from her but I know I not even gonna try to compare I know I not even gonna try to compare I know I not even gonna try to compare you know I'm gonna make my own path I'll you know I'm gonna make my own path I'll you know I'm gonna make my own path I'll be inspired by her but I'm not gonna not be inspired by her but I'm not gonna not be inspired by her but I'm not gonna not gonna try to follow anybody else's path gonna try to follow anybody else's path gonna try to follow anybody else's path because that's not gonna it's not gonna because that's not gonna it's not gonna because that's not gonna it's not gonna end well I'm gonna be a lot of end well I'm gonna be a lot of end well I'm gonna be a lot of comparison it's not gonna be good for my comparison it's not gonna be good for my comparison it's not gonna be good for my psyche but it's very inspiring to see psyche but it's very inspiring to see psyche but it's very inspiring to see that somebody who is so successful and that somebody who is so successful and that somebody who is so successful and wants to give back so much after all wants to give back so much after all wants to give back so much after all that success so that was a really that success so that was a really that success so that was a really positive outcome from that nmk I saw you positive outcome from that nmk I saw you positive outcome from that nmk I saw you kind of nodding along here on the video kind of nodding along here on the video kind of nodding along here on the video when I was talking both about her her when I was talking both about her her when I was talking both about her her different lines of business but also different lines of business but also different lines of business but also about about maybe limiting beliefs that about about maybe limiting beliefs that about about maybe limiting beliefs that that people who consider themselves that people who consider themselves that people who consider themselves creatives that that they hold and I'd creatives that that they hold and I'd creatives that that they hold and I'd love to hear you talk about both of love to hear you talk about both of love to hear you talk about both of those things yeah so first with the those things yeah so first with the those things yeah so first with the different lines of business I mean she different lines of business I mean she different lines of business I mean she makes it really makes it really makes it really clear for herself like each book is its clear for herself like each book is its clear for herself like each book is its own profit line for her so each series own profit line for her so each series own profit line for her so each series each book and not something I've started each book and not something I've started each book and not something I've started to evaluate of saying this isn't just a to evaluate of saying this isn't just a to evaluate of saying this isn't just a work of art this is how is this going to work of art this is how is this going to work of art this is how is this going to move the needle so I can continue to do move the needle so I can continue to do move the needle so I can continue to do this down the line and building multiple this down the line and building multiple this down the line and building multiple lines of business for myself and I think lines of business for myself and I think lines of business for myself and I think that's something to keep in mind so that's something to keep in mind so that's something to keep in mind so maybe your passion isn't writing maybe maybe your passion isn't writing maybe maybe your passion isn't writing maybe your passion is photography well what your passion is photography well what your passion is photography well what are all the different things you can do are all the different things you can do are all the different things you can do and I actually have a lot of local and I actually have a lot of local and I actually have a lot of local friends who are wedding photographers friends who are wedding photographers friends who are wedding photographers all their events were just cancelled so all their events were just cancelled so all their events were just cancelled so they're no scrambling to figure out well they're no scrambling to figure out well they're no scrambling to figure out well how can I update my lines of business how can I update my lines of business how can I update my lines of business and some are now turning to okay I will and some are now turning to okay I will and some are now turning to okay I will teach the next person down the line how teach the next person down the line how teach the next person down the line how to be a photographer and that's not to be a photographer and that's not to be a photographer and that's not another line that they're adding so some another line that they're adding so some another line that they're adding so some of it's born out of necessity but it's of it's born out of necessity but it's of it's born out of necessity but it's good to think about these things in good good to think about these things in good good to think about these things in good times it's just as critical to think times it's just as critical to think times it's just as critical to think about them now in more stressful times about them now in more stressful times about them now in more stressful times so in regards to the different lines of so in regards to the different lines of so in regards to the different lines of business I think what she has said business I think what she has said business I think what she has said applies to many different industries and applies to many different industries and applies to many different industries and many different businesses and business many different businesses and business many different businesses and business owners and talking about limiting owners and talking about limiting owners and talking about limiting beliefs I think that's something we've beliefs I think that's something we've beliefs I think that's something we've seen underscored by so many guests that seen underscored by so many guests that seen underscored by so many guests that have been on the show they didn't have been on the show they didn't have been on the show they didn't believe that they could start their believe that they could start their believe that they could start their business they didn't believe that they business they didn't believe that they business they didn't believe that they could ask for that raise or that could ask for that raise or that could ask for that raise or that promotion or that remote work promotion or that remote work promotion or that remote work opportunity they didn't believe that opportunity they didn't believe that opportunity they didn't believe that they could be debt-free because they they could be debt-free because they they could be debt-free because they were conditioned they saw their parents were conditioned they saw their parents were conditioned they saw their parents always in debt they felt that they would always in debt they felt that they would always in debt they felt that they would always be in debt so whether it's you always be in debt so whether it's you always be in debt so whether it's you know these financial these you know none know these financial these you know none know these financial these you know none non creative elements or whether it's non creative elements or whether it's non creative elements or whether it's starting your own business I think it's starting your own business I think it's starting your own business I think it's just writing down those beliefs and then just writing down those beliefs and then just writing down those beliefs and then saying them out loud and realizing like saying them out loud and realizing like saying them out loud and realizing like well that's silly and that's one thing well that's silly and that's one thing well that's silly and that's one thing that I've taken to and I you know even that I've taken to and I you know even that I've taken to and I you know even after I wrote my own books and I after I wrote my own books and I after I wrote my own books and I published them and I'm helping people published them and I'm helping people published them and I'm helping people I still have limiting beliefs you know I still have limiting beliefs you know I still have limiting beliefs you know they don't go away there's just new ones they don't go away there's just new ones they don't go away there's just new ones that come up that I have to constantly that come up that I have to constantly that come up that I have to constantly challenge and obviously finding a great challenge and obviously finding a great challenge and obviously finding a great mentor I say digital mentor Joanna mentor I say digital mentor Joanna mentor I say digital mentor Joanna because I only met her during the because I only met her during the because I only met her during the interview once um you know that helps me interview once um you know that helps me interview once um you know that helps me to continually challenge these other to continually challenge these other to continually challenge these other limiting beliefs I have of well what limiting beliefs I have of well what limiting beliefs I have of well what could be my top line limit of what could be my top line limit of what could be my top line limit of what income I can make with my books what are income I can make with my books what are income I can make with my books what are the things I can do like I even said the things I can do like I even said the things I can do like I even said with switching over to nonfiction with switching over to nonfiction with switching over to nonfiction and I think those are the limiting and I think those are the limiting and I think those are the limiting beliefs that you know doesn't matter beliefs that you know doesn't matter beliefs that you know doesn't matter your age doesn't matter your experience your age doesn't matter your experience your age doesn't matter your experience level they always come up and level they always come up and level they always come up and just finding new ways to challenge them just finding new ways to challenge them just finding new ways to challenge them to continually overcome them yeah this to continually overcome them yeah this to continually overcome them yeah this is uh you know this is such an amend is uh you know this is such an amend is uh you know this is such an amend your friends that are photographers that your friends that are photographers that your friends that are photographers that are suddenly finding kind of the work are suddenly finding kind of the work are suddenly finding kind of the work drying up at the moment and there's a drying up at the moment and there's a drying up at the moment and there's a lot of small business owners and lot of small business owners and lot of small business owners and entrepreneurs and side hustlers that had entrepreneurs and side hustlers that had entrepreneurs and side hustlers that had freelance work or other gigs that are freelance work or other gigs that are freelance work or other gigs that are kind of drying up in the moment there's kind of drying up in the moment there's kind of drying up in the moment there's other people that haven't even started other people that haven't even started other people that haven't even started you know are still in their nine-to-five you know are still in their nine-to-five you know are still in their nine-to-five and and that work is drying up or and and that work is drying up or and and that work is drying up or they're getting less hours or etc and my they're getting less hours or etc and my they're getting less hours or etc and my thought is on this is if you have a lot thought is on this is if you have a lot thought is on this is if you have a lot of time and not a lot of work coming at of time and not a lot of work coming at of time and not a lot of work coming at the moment but you've taken care of the the moment but you've taken care of the the moment but you've taken care of the basics you understand you have an basics you understand you have an basics you understand you have an emergency fund in place you have some emergency fund in place you have some emergency fund in place you have some margin in your life like you're doing margin in your life like you're doing margin in your life like you're doing what you can to make sure you can what you can to make sure you can what you can to make sure you can provide for yourself and your family and provide for yourself and your family and provide for yourself and your family and you still find yourself with extra time you still find yourself with extra time you still find yourself with extra time and energy what an opportunity to start and energy what an opportunity to start and energy what an opportunity to start focusing on your talents tact to build focusing on your talents tact to build focusing on your talents tact to build the skills that will be in demand when the skills that will be in demand when the skills that will be in demand when this pops back and maybe actually you this pops back and maybe actually you this pops back and maybe actually you get some insight and to what will be in get some insight and to what will be in get some insight and to what will be in demand and what won't be in demand and demand and what won't be in demand and demand and what won't be in demand and you can start preparing yourself for you can start preparing yourself for you can start preparing yourself for that inevitable shift in the winds I can that inevitable shift in the winds I can that inevitable shift in the winds I can tell you right now when it comes to like tell you right now when it comes to like tell you right now when it comes to like freelance work like podcast editing is a freelance work like podcast editing is a freelance work like podcast editing is a skill it's one that can be learned our skill it's one that can be learned our skill it's one that can be learned our good friend Steve Stewart who edits this good friend Steve Stewart who edits this good friend Steve Stewart who edits this podcast he is in very very high demand podcast he is in very very high demand podcast he is in very very high demand right now and has where as much work as right now and has where as much work as right now and has where as much work as he can handle this is a skill that can he can handle this is a skill that can he can handle this is a skill that can be learned without a college degree be learned without a college degree be learned without a college degree right video editing I don't know pick right video editing I don't know pick right video editing I don't know pick pick any number of skill I just picked pick any number of skill I just picked pick any number of skill I just picked these two digital because it happens to these two digital because it happens to these two digital because it happens to be the space that we are in but anything be the space that we are in but anything be the space that we are in but anything that you want to learn can be learned if that you want to learn can be learned if that you want to learn can be learned if you can dedicate some time and energy to you can dedicate some time and energy to you can dedicate some time and energy to learning it what an opportunity to build learning it what an opportunity to build learning it what an opportunity to build out your talent stack out your talent stack out your talent stack Brad this is something that we've talked Brad this is something that we've talked Brad this is something that we've talked about many times but now maybe someone about many times but now maybe someone about many times but now maybe someone has time to actually follow through on has time to actually follow through on has time to actually follow through on something that they have desired to do something that they have desired to do something that they have desired to do for a long time for a long time for a long time yeah yeah this is that is a silver yeah yeah this is that is a silver yeah yeah this is that is a silver lining right like you have the time you lining right like you have the time you lining right like you have the time you cannot make that excuse anymore and I cannot make that excuse anymore and I cannot make that excuse anymore and I think I think you can look both in terms think I think you can look both in terms think I think you can look both in terms of concrete and specific skills like of concrete and specific skills like of concrete and specific skills like you're talking about and also maybe more you're talking about and also maybe more you're talking about and also maybe more just general skills for life and it's just general skills for life and it's just general skills for life and it's funny that you actually had no idea that funny that you actually had no idea that funny that you actually had no idea that I was doing this but I've been I've been I was doing this but I've been I've been I was doing this but I've been I've been keeping a little text document actually keeping a little text document actually keeping a little text document actually of like if I were to create or not me of like if I were to create or not me of like if I were to create or not me but if I could get the worldwide expert but if I could get the worldwide expert but if I could get the worldwide expert on certain topics to do like a one-hour on certain topics to do like a one-hour on certain topics to do like a one-hour presentation like what would be the presentation like what would be the presentation like what would be the skills that I think would be necessary skills that I think would be necessary skills that I think would be necessary to succeed at life and you know I'm kind to succeed at life and you know I'm kind to succeed at life and you know I'm kind of this is very much a work in progress of this is very much a work in progress of this is very much a work in progress and I swear and Jonathan we did not talk and I swear and Jonathan we did not talk and I swear and Jonathan we did not talk about this beforehand but you know I'm about this beforehand but you know I'm about this beforehand but you know I'm thinking even just things like thinking even just things like thinking even just things like probabilistic thinking I've talked about probabilistic thinking I've talked about probabilistic thinking I've talked about Annie Duke and like thinking in terms of Annie Duke and like thinking in terms of Annie Duke and like thinking in terms of of thinking and bets and probability of thinking and bets and probability of thinking and bets and probability cognitive biases positive psychology cognitive biases positive psychology cognitive biases positive psychology even just a background investing or even just a background investing or even just a background investing or taxation like a one-hour how many people taxation like a one-hour how many people taxation like a one-hour how many people know anything about tax nobody right know anything about tax nobody right know anything about tax nobody right like how much better off would you be if like how much better off would you be if like how much better off would you be if you had an hour of that are you you had an hour of that are you you had an hour of that are you designing your own degree I am designing designing your own degree I am designing designing your own degree I am designing my own degree I have to say I it's my own degree I have to say I it's my own degree I have to say I it's pretty cool right like you know even pretty cool right like you know even pretty cool right like you know even down to like building businesses and down to like building businesses and down to like building businesses and real estate how to maximize sleep and real estate how to maximize sleep and real estate how to maximize sleep and you know habits like you know atomic you know habits like you know atomic you know habits like you know atomic habits and like make time with John habits and like make time with John habits and like make time with John Zaretsky and I actually kind of if you Zaretsky and I actually kind of if you Zaretsky and I actually kind of if you would indulge me here for a minute I got would indulge me here for a minute I got would indulge me here for a minute I got this inspiration from a guy named neva this inspiration from a guy named neva this inspiration from a guy named neva rava Khan who is I guess early stage rava Khan who is I guess early stage rava Khan who is I guess early stage investor in in Silicon Valley anybody investor in in Silicon Valley anybody investor in in Silicon Valley anybody who's familiar with the Tim Ferriss who's familiar with the Tim Ferriss who's familiar with the Tim Ferriss podcast would have would have heard this podcast would have would have heard this podcast would have would have heard this but I'm gonna read this and and I think but I'm gonna read this and and I think but I'm gonna read this and and I think this is just kind of like a way to think this is just kind of like a way to think this is just kind of like a way to think about life and he said yeah if I'm about life and he said yeah if I'm about life and he said yeah if I'm running a grade school curriculum for running a grade school curriculum for running a grade school curriculum for children I would probably optimize children I would probably optimize children I would probably optimize happiness nutrition diet exercise how do happiness nutrition diet exercise how do happiness nutrition diet exercise how do you build good habits how do you break you build good habits how do you break you build good habits how do you break bad habits how do you have good bad habits how do you have good bad habits how do you have good relationships how do you find your relationships how do you find your relationships how do you find your spouse meditation how do you build basic spouse meditation how do you build basic spouse meditation how do you build basic skills not memorize lots of facts skills not memorize lots of facts skills not memorize lots of facts what kinds of books should you read what kinds of books should you read what kinds of books should you read older ones not newer ones ones that work older ones not newer ones ones that work older ones not newer ones ones that work have them work on something charitable have them work on something charitable have them work on something charitable related or take them to the third world related or take them to the third world related or take them to the third world and show them suffering true suffering and show them suffering true suffering and show them suffering true suffering so they can get some context I probably so they can get some context I probably so they can get some context I probably teach some public speaking business teach some public speaking business teach some public speaking business reading basic persuasion maybe a little reading basic persuasion maybe a little reading basic persuasion maybe a little bit of programming on top of the reading bit of programming on top of the reading bit of programming on top of the reading writing and arithmetic writing and arithmetic writing and arithmetic I'd probably eliminate chunks of I'd probably eliminate chunks of I'd probably eliminate chunks of geography history and honestly even geography history and honestly even geography history and honestly even second or third languages I thought that second or third languages I thought that second or third languages I thought that like that just hearing him talk for like that just hearing him talk for like that just hearing him talk for seconds like that changed my entire seconds like that changed my entire seconds like that changed my entire thinking on education and like like we thinking on education and like like we thinking on education and like like we said I've been I've been brainstorming said I've been I've been brainstorming said I've been I've been brainstorming this for probably the last couple weeks this for probably the last couple weeks this for probably the last couple weeks now of just like what would I devised to now of just like what would I devised to now of just like what would I devised to succeed at life because that's how I succeed at life because that's how I succeed at life because that's how I think about like my job as a parent is think about like my job as a parent is think about like my job as a parent is and I would actually throw board games and I would actually throw board games and I would actually throw board games in there because I think the strategy in there because I think the strategy in there because I think the strategy that you learned from board games and that you learned from board games and that you learned from board games and like the decision-making and having to like the decision-making and having to like the decision-making and having to relate with different people and their relate with different people and their relate with different people and their strategies like I think that is a strategies like I think that is a strategies like I think that is a massive one so like choose defy massive one so like choose defy massive one so like choose defy masterclass in the future here was masterclass in the future here was masterclass in the future here was actually that was actually how I was actually that was actually how I was actually that was actually how I was brainstorming this Jonathan I didn't brainstorming this Jonathan I didn't brainstorming this Jonathan I didn't tell you about it until we literally hit tell you about it until we literally hit tell you about it until we literally hit record now so uh yeah but I mean right record now so uh yeah but I mean right record now so uh yeah but I mean right isn't that it's not an interesting way isn't that it's not an interesting way isn't that it's not an interesting way I'm like why can't you learn about these I'm like why can't you learn about these I'm like why can't you learn about these things you have the time you're not things you have the time you're not things you have the time you're not going anywhere going anywhere going anywhere you know at some point I think I'm gonna you know at some point I think I'm gonna you know at some point I think I'm gonna have a real opportunity to have a hand have a real opportunity to have a hand have a real opportunity to have a hand and kind of molding my son's education and kind of molding my son's education and kind of molding my son's education in a very like active sense and I would hope I would hope I would hope because I agree with everything you just because I agree with everything you just because I agree with everything you just said I mean if you could kind of stack said I mean if you could kind of stack said I mean if you could kind of stack here's the skills that you need to here's the skills that you need to here's the skills that you need to succeed at life the actual execution of succeed at life the actual execution of succeed at life the actual execution of those how you get these there's a lot of those how you get these there's a lot of those how you get these there's a lot of leniency and how it would be executed on leniency and how it would be executed on leniency and how it would be executed on but like if you had these skills you're but like if you had these skills you're but like if you had these skills you're gonna crush this game that we call life gonna crush this game that we call life gonna crush this game that we call life and getting the opportunity to think through getting the opportunity to think through getting the opportunity to think through what that would look like now gives you what that would look like now gives you what that would look like now gives you a lot of freedom and saying forget that a lot of freedom and saying forget that a lot of freedom and saying forget that in a degree I'm not I'm not trashing a in a degree I'm not I'm not trashing a in a degree I'm not I'm not trashing a degree this is not in any way putting degree this is not in any way putting degree this is not in any way putting degrees so but I'm saying set the actual degrees so but I'm saying set the actual degrees so but I'm saying set the actual degree to the side if an individual a degree to the side if an individual a degree to the side if an individual a young man or woman has these skills young man or woman has these skills young man or woman has these skills locked down as they become an adult locked down as they become an adult locked down as they become an adult responsible for their own life they will responsible for their own life they will responsible for their own life they will thrive it's a mathematical certainty thrive it's a mathematical certainty thrive it's a mathematical certainty that's the if you have that mentality it that's the if you have that mentality it that's the if you have that mentality it gives you a lot of freedom saying well gives you a lot of freedom saying well gives you a lot of freedom saying well how do I you know I have this in how do I you know I have this in how do I you know I have this in resultant in mind how they get there resultant in mind how they get there resultant in mind how they get there gives you a lot of flexibility with how gives you a lot of flexibility with how gives you a lot of flexibility with how you build that and you have a lot of you build that and you have a lot of you build that and you have a lot of time to think through it and and I'm time to think through it and and I'm time to think through it and and I'm sure Brad you know your timeline it's a sure Brad you know your timeline it's a sure Brad you know your timeline it's a little bit more compressed but at the little bit more compressed but at the little bit more compressed but at the same point what how what is this looking same point what how what is this looking same point what how what is this looking like as you start to take this model and like as you start to take this model and like as you start to take this model and say Molly Anna I think it'd be important say Molly Anna I think it'd be important say Molly Anna I think it'd be important that you have these concepts locked down that you have these concepts locked down that you have these concepts locked down how does that manifest in your own how does that manifest in your own how does that manifest in your own personal reality yeah I mean it you're personal reality yeah I mean it you're personal reality yeah I mean it you're right it is a little compressed as right it is a little compressed as right it is a little compressed as compared to to your kids obviously compared to to your kids obviously compared to to your kids obviously though my kids are not old by any means though my kids are not old by any means though my kids are not old by any means they are and so you know I am in they are and so you know I am in they are and so you know I am in some way running I have seven years to some way running I have seven years to some way running I have seven years to pontificate that's all I got that's all pontificate that's all I got that's all pontificate that's all I got that's all I got but no I mean I do think about I got but no I mean I do think about I got but no I mean I do think about this right like I try to not be the this right like I try to not be the this right like I try to not be the overbearing dad like I I I never want to overbearing dad like I I I never want to overbearing dad like I I I never want to be that person because I feel like you be that person because I feel like you be that person because I feel like you know that that kind of perspective gets know that that kind of perspective gets know that that kind of perspective gets tuned out I try to phrase everything in tuned out I try to phrase everything in tuned out I try to phrase everything in terms of like you know here's a strategy terms of like you know here's a strategy terms of like you know here's a strategy like if my kids would describe me as like if my kids would describe me as like if my kids would describe me as like my lessons as one thing it would be like my lessons as one thing it would be like my lessons as one thing it would be strategies so it's like me talking both strategies so it's like me talking both strategies so it's like me talking both about you know things that I do well and about you know things that I do well and about you know things that I do well and things that I don't do well so it's not things that I don't do well so it's not things that I don't do well so it's not like oh here's this you know omniscient like oh here's this you know omniscient like oh here's this you know omniscient dad who knows everything like that's not dad who knows everything like that's not dad who knows everything like that's not how how I roll at all I just try to how how I roll at all I just try to how how I roll at all I just try to teach them lessons and like I said even teach them lessons and like I said even teach them lessons and like I said even like board games like I think I think like board games like I think I think like board games like I think I think board games are one of the best ways to board games are one of the best ways to board games are one of the best ways to succeed in life because they teach you succeed in life because they teach you succeed in life because they teach you just skills I think another thing just skills I think another thing just skills I think another thing actually I think I mentioned to you but actually I think I mentioned to you but actually I think I mentioned to you but I didn't give you all the info I didn't give you all the info I didn't give you all the info beforehand that I sat down with my girls beforehand that I sat down with my girls beforehand that I sat down with my girls yesterday with the book the simple yesterday with the book the simple yesterday with the book the simple startup so we had Rob Phelan on the startup so we had Rob Phelan on the startup so we had Rob Phelan on the podcast what was it probably a month ago podcast what was it probably a month ago podcast what was it probably a month ago at this point at this point at this point and you know in all fairness at that and you know in all fairness at that and you know in all fairness at that time I said how beautiful this book was time I said how beautiful this book was time I said how beautiful this book was I had flipped through it and and it was I had flipped through it and and it was I had flipped through it and and it was remarkable but yesterday I sat down with remarkable but yesterday I sat down with remarkable but yesterday I sat down with my kids for the very first time so it's my kids for the very first time so it's my kids for the very first time so it's a beginner's guide to starting a a beginner's guide to starting a a beginner's guide to starting a business and I mean this is the most business and I mean this is the most business and I mean this is the most honest and sincere review I could ever honest and sincere review I could ever honest and sincere review I could ever give like this thing was life-changing give like this thing was life-changing give like this thing was life-changing for my kids like they lit up it was for my kids like they lit up it was for my kids like they lit up it was almost so akin a couple years ago almost so akin a couple years ago almost so akin a couple years ago Jonathan on the podcast I talked about Jonathan on the podcast I talked about Jonathan on the podcast I talked about when I sat down and explained compound when I sat down and explained compound when I sat down and explained compound interest to my daughter Anna and it was interest to my daughter Anna and it was interest to my daughter Anna and it was just like that light bulb moment well just like that light bulb moment well just like that light bulb moment well both kids had that but honestly even both kids had that but honestly even both kids had that but honestly even Molly my eight-year-old how didn't even Molly my eight-year-old how didn't even Molly my eight-year-old how didn't even more yesterday with with this simple more yesterday with with this simple more yesterday with with this simple startup book she it was one of these startup book she it was one of these startup book she it was one of these moments where I described and this is moments where I described and this is moments where I described and this is obviously a bit of hyperbole and a bit obviously a bit of hyperbole and a bit obviously a bit of hyperbole and a bit of parental exaggeration but honestly of parental exaggeration but honestly of parental exaggeration but honestly not all that much I said this is what I not all that much I said this is what I not all that much I said this is what I wrote to Rob yesterday I said so I just wrote to Rob yesterday I said so I just wrote to Rob yesterday I said so I just had one of the best hours of my life had one of the best hours of my life had one of the best hours of my life maybe my eight-year-old Molly without maybe my eight-year-old Molly without maybe my eight-year-old Molly without much hyperbole is like an -year old much hyperbole is like an -year old much hyperbole is like an -year old version of Elon Musk Steve Jobs Bill version of Elon Musk Steve Jobs Bill version of Elon Musk Steve Jobs Bill Gates and Gary Vaynerchuk rolled Gates and Gary Vaynerchuk rolled Gates and Gary Vaynerchuk rolled together Laura and I said Laura was together Laura and I said Laura was together Laura and I said Laura was listening from the other room and called listening from the other room and called listening from the other room and called me into the kitchen and she's like do me into the kitchen and she's like do me into the kitchen and she's like do you believe what you're hearing from you believe what you're hearing from you believe what you're hearing from Molly like do you even believe that this Molly like do you even believe that this Molly like do you even believe that this is coming out of this little is coming out of this little is coming out of this little eight-year-old pipsqueak like Molly is eight-year-old pipsqueak like Molly is eight-year-old pipsqueak like Molly is very deceptive she has this like very deceptive she has this like very deceptive she has this like adorable little voice and like maybe you adorable little voice and like maybe you adorable little voice and like maybe you don't take her as seriously like don't take her as seriously like don't take her as seriously like intellectually even though you like we intellectually even though you like we intellectually even though you like we know she's extraordinarily smart but man know she's extraordinarily smart but man know she's extraordinarily smart but man she just Jonathan she was sketching out she just Jonathan she was sketching out she just Jonathan she was sketching out apropos of nothing and she'd never we'd apropos of nothing and she'd never we'd apropos of nothing and she'd never we'd never explained anything she was never explained anything she was never explained anything she was sketching out how she'd want her sketching out how she'd want her sketching out how she'd want her business website to look with different business website to look with different business website to look with different levels of courses she's literally levels of courses she's literally levels of courses she's literally sketching it out as if she was a web sketching it out as if she was a web sketching it out as if she was a web designer of beginner courses designer of beginner courses designer of beginner courses intermediate advanced she was talking intermediate advanced she was talking intermediate advanced she was talking about networking by creating about networking by creating about networking by creating relationships so that future businesses relationships so that future businesses relationships so that future businesses she had she'd have a built-in network of she had she'd have a built-in network of she had she'd have a built-in network of people I kid you not it was unbelievable people I kid you not it was unbelievable people I kid you not it was unbelievable well I'm not taking notes right now Brad well I'm not taking notes right now Brad well I'm not taking notes right now Brad I'm taking right you seriously should I I'm taking right you seriously should I I'm taking right you seriously should I don't want to sell things that I only don't want to sell things that I only don't want to sell things that I only make one or two dollars of profit on make one or two dollars of profit on make one or two dollars of profit on because then I have to get all these because then I have to get all these because then I have to get all these customers like I need to sell something customers like I need to sell something customers like I need to sell something that I that I that I make a lot of money from so that I don't make a lot of money from so that I don't make a lot of money from so that I don't need quite as money because it's hard to need quite as money because it's hard to need quite as money because it's hard to get customers she's telling me she's get customers she's telling me she's get customers she's telling me she's like but then she was talking about like like but then she was talking about like like but then she was talking about like could I have people work for me and then could I have people work for me and then could I have people work for me and then it's not just limited by my time and she it's not just limited by my time and she it's not just limited by my time and she actually said she had the insight to say actually said she had the insight to say actually said she had the insight to say I would always care more about selling I would always care more about selling I would always care more about selling then they would since it's my business then they would since it's my business then they would since it's my business so probably each hour I could sell more so probably each hour I could sell more so probably each hour I could sell more but even if I could make money by paint but even if I could make money by paint but even if I could make money by paint you know if I could make more money by you know if I could make more money by you know if I could make more money by paying them that hour you know then or paying them that hour you know then or paying them that hour you know then or then I would earn more per hour than I then I would earn more per hour than I then I would earn more per hour than I would pay them if I had thousands of would pay them if I had thousands of would pay them if I had thousands of people working for me it's it would people working for me it's it would people working for me it's it would still be better I want to raise my hand still be better I want to raise my hand still be better I want to raise my hand raise my hand dude I'm so excited what raise my hand dude I'm so excited what raise my hand dude I'm so excited what you have just done is you have turned a you have just done is you have turned a you have just done is you have turned a simple startup and entrepreneurship into simple startup and entrepreneurship into simple startup and entrepreneurship into a board game or rather you've pivoted a board game or rather you've pivoted a board game or rather you've pivoted from board games which looks like Ticket from board games which looks like Ticket from board games which looks like Ticket to Ride etc into entrepreneurship this to Ride etc into entrepreneurship this to Ride etc into entrepreneurship this amazing puzzle like imagine where you amazing puzzle like imagine where you amazing puzzle like imagine where you can have the innocence and creativity of can have the innocence and creativity of can have the innocence and creativity of a kid like ideas are coming so fast you a kid like ideas are coming so fast you a kid like ideas are coming so fast you can't even slow them down the whole can't even slow them down the whole can't even slow them down the whole entire world is open up to you and entire world is open up to you and entire world is open up to you and you're throwing them at the board and you're throwing them at the board and you're throwing them at the board and your parent is interested is interested your parent is interested is interested your parent is interested is interested in all of your ideas this is incredible in all of your ideas this is incredible in all of your ideas this is incredible I mean what an opportunity for us for I mean what an opportunity for us for I mean what an opportunity for us for ourselves so like let's let's parse this ourselves so like let's let's parse this ourselves so like let's let's parse this out let's have two separate out let's have two separate out let's have two separate conversations give yourself permission conversations give yourself permission conversations give yourself permission to have unbridled creativity and to have unbridled creativity and to have unbridled creativity and optimism and nothing is off limits this optimism and nothing is off limits this optimism and nothing is off limits this isn't your only business this is your isn't your only business this is your isn't your only business this is your first of many right we're gonna keep first of many right we're gonna keep first of many right we're gonna keep throwing ideas at the board until throwing ideas at the board until throwing ideas at the board until something sticks and we love it for all something sticks and we love it for all something sticks and we love it for all the right reasons we're gonna explore it the right reasons we're gonna explore it the right reasons we're gonna explore it the same way we would think about a the same way we would think about a the same way we would think about a board game board game board game there is no losing in that you don't there is no losing in that you don't there is no losing in that you don't lose there's no losing here this is an lose there's no losing here this is an lose there's no losing here this is an opportunity to flex our creative muscles opportunity to flex our creative muscles opportunity to flex our creative muscles in a risk-free environment because we're in a risk-free environment because we're in a risk-free environment because we're not going into debt to start these ideas not going into debt to start these ideas not going into debt to start these ideas Molly isn't going into debt to create Molly isn't going into debt to create Molly isn't going into debt to create this she's flexing her creativity and as this she's flexing her creativity and as this she's flexing her creativity and as a result at some point she will have a a result at some point she will have a a result at some point she will have a business and it's fun there's no business and it's fun there's no business and it's fun there's no downside in the meantime let's say that downside in the meantime let's say that downside in the meantime let's say that let's say that like she's not ready to let's say that like she's not ready to let's say that like she's not ready to execute on the business she could start execute on the business she could start execute on the business she could start building the skills necessary to make building the skills necessary to make building the skills necessary to make the business possible the business possible the business possible those skills have value in and of those skills have value in and of those skills have value in and of themselves right like should she just themselves right like should she just themselves right like should she just sketched out a website that's a skill sketched out a website that's a skill sketched out a website that's a skill now she would need to create it I bet now she would need to create it I bet now she would need to create it I bet her dad could give her a little bit of her dad could give her a little bit of her dad could give her a little bit of help on resources that would be useful help on resources that would be useful help on resources that would be useful in creating her very first website in creating her very first website in creating her very first website that's what I was thinking like if you that's what I was thinking like if you that's what I was thinking like if you can just per have and like if you could can just per have and like if you could can just per have and like if you could have a talent stack of skills later you have a talent stack of skills later you have a talent stack of skills later you know or that you know are valuable and know or that you know are valuable and know or that you know are valuable and then start adding on to that the then start adding on to that the then start adding on to that the mentality the game theory all those mentality the game theory all those mentality the game theory all those extra things that allow you to take it extra things that allow you to take it extra things that allow you to take it to the next level like you've really put to the next level like you've really put to the next level like you've really put together a portfolio which is going to together a portfolio which is going to together a portfolio which is going to guarantee your success I'm incredibly guarantee your success I'm incredibly guarantee your success I'm incredibly inspired by your daughter I'm sure our inspired by your daughter I'm sure our inspired by your daughter I'm sure our audiences as well but you can you can audiences as well but you can you can audiences as well but you can you can replicate this experience take the time replicate this experience take the time replicate this experience take the time the bandwidth that's been freed up if the bandwidth that's been freed up if the bandwidth that's been freed up if it's there and let's start applying it it's there and let's start applying it it's there and let's start applying it to ourselves working on our inner game to ourselves working on our inner game to ourselves working on our inner game and let's start providing that and let's start providing that and let's start providing that opportunity to our kids you shouldn't be opportunity to our kids you shouldn't be opportunity to our kids you shouldn't be years old before you're given years old before you're given years old before you're given permission to have your first creative permission to have your first creative permission to have your first creative idea let's encourage that and foster idea let's encourage that and foster idea let's encourage that and foster that conversation now repeatedly this is that conversation now repeatedly this is that conversation now repeatedly this is risk free for them of course we should risk free for them of course we should risk free for them of course we should be having these conversations and Brad be having these conversations and Brad be having these conversations and Brad it sounds like you're saying the simple it sounds like you're saying the simple it sounds like you're saying the simple startup for you guys was the catalyst startup for you guys was the catalyst startup for you guys was the catalyst for that yeah yeah that is the first of for that yeah yeah that is the first of for that yeah yeah that is the first of many conversations it was funny because many conversations it was funny because many conversations it was funny because we did that at about two o'clock we did that at about two o'clock we did that at about two o'clock yesterday afternoon and as the kids were yesterday afternoon and as the kids were yesterday afternoon and as the kids were going to bed they were both sitting in going to bed they were both sitting in going to bed they were both sitting in Anna's room each of them with their Anna's room each of them with their Anna's room each of them with their their copy of the book and of course their copy of the book and of course their copy of the book and of course poor old dad was exhausted I have I poor old dad was exhausted I have I poor old dad was exhausted I have I actually went to sleep at like nine actually went to sleep at like nine actually went to sleep at like nine twenty last night and I was the one who twenty last night and I was the one who twenty last night and I was the one who left the simple startup party but Molly left the simple startup party but Molly left the simple startup party but Molly of course brought it down with her first of course brought it down with her first of course brought it down with her first thing in the morning so I yeah as soon thing in the morning so I yeah as soon thing in the morning so I yeah as soon as honestly as soon as we're done as honestly as soon as we're done as honestly as soon as we're done recording here we're gonna go do the recording here we're gonna go do the recording here we're gonna go do the next round of chapter two I think it is next round of chapter two I think it is next round of chapter two I think it is so yeah this is it's really has been a so yeah this is it's really has been a so yeah this is it's really has been a game changer for us and like we talked game changer for us and like we talked game changer for us and like we talked about it's about just being curious it's about it's about just being curious it's about it's about just being curious it's about building skills like all those about building skills like all those about building skills like all those things that I eat that I read off you things that I eat that I read off you things that I eat that I read off you know that neva Brava Khan was talking know that neva Brava Khan was talking know that neva Brava Khan was talking about the things that I had brainstorm about the things that I had brainstorm about the things that I had brainstorm like find something that interests you like find something that interests you like find something that interests you in there and just just learn something in there and just just learn something in there and just just learn something new we have time now which is pretty new we have time now which is pretty new we have time now which is pretty awesome and obviously I would be remiss awesome and obviously I would be remiss awesome and obviously I would be remiss if I didn't mention you can get this if I didn't mention you can get this if I didn't mention you can get this book they're probably the easiest way book they're probably the easiest way book they're probably the easiest way aside from going to the simple startup aside from going to the simple startup aside from going to the simple startup calm is just to go to the homepage of calm is just to go to the homepage of calm is just to go to the homepage of choose a Viacom and at the very top choose a Viacom and at the very top choose a Viacom and at the very top there's an hour book section and you can there's an hour book section and you can there's an hour book section and you can find this book in our book choose the find this book in our book choose the find this book in our book choose the pile your blueprint pile your blueprint pile your blueprint financial independence alright everyone financial independence alright everyone financial independence alright everyone thanks so much for joining us tomorrow thanks so much for joining us tomorrow thanks so much for joining us tomorrow we are going to be talking about the we are going to be talking about the we are going to be talking about the stimulus package that was released this stimulus package that was released this stimulus package that was released this past week giving you our perspective on past week giving you our perspective on past week giving you our perspective on it so make sure you stay tuned into that it so make sure you stay tuned into that it so make sure you stay tuned into that then Friday we have dominant core to then Friday we have dominant core to then Friday we have dominant core to CHEO coming and he's been on the show CHEO coming and he's been on the show CHEO coming and he's been on the show twice we're bringing him back and to twice we're bringing him back and to twice we're bringing him back and to talk about inner game let's focus on talk about inner game let's focus on talk about inner game let's focus on controlling what we can control I'm controlling what we can control I'm controlling what we can control I'm excited to share these episodes with you excited to share these episodes with you excited to share these episodes with you so stay tuned as we continue to go down so stay tuned as we continue to go down so stay tuned as we continue to go down the road less traveled [Music] [Music] [Music] [Applause] WEBVTT Kind: captions Language: en the school like their financial in the pantry turley a thousand jobs around italy was blowing you got one of the cells my first company yaichi grizzly bears neato myself hey actor that sex symbol tyerell he was born out of my mind working is not just about my people do understand is very often and this step will party where to find you ar this provides a place for your social people i youtube in a rational people all day long and interesting my idea of ​​helps you live london and is ribery again god disappeared half stone stimulated is help people live and twitter nineties highlighting both oh my word theory never never never know where you left right there be love working on and get hurt you [Music] WEBVTT Kind: captions Language: en who in the world wants to have to work who in the world wants to have to work who in the world wants to have to work until they're plus years old if you until they're plus years old if you until they're plus years old if you even make it to that point because even make it to that point because even make it to that point because you'll probably be forced out of your you'll probably be forced out of your you'll probably be forced out of your job wait before you hit that age over job wait before you hit that age over job wait before you hit that age over the past few years I've made it a point the past few years I've made it a point the past few years I've made it a point to talk to people who are or plus to talk to people who are or plus to talk to people who are or plus years older than me to learn more about years older than me to learn more about years older than me to learn more about the things that they fear at their the things that they fear at their the things that they fear at their current age and Wow Wow current age and Wow Wow current age and Wow Wow whee Wow then I get freaked out about whee Wow then I get freaked out about whee Wow then I get freaked out about what they were saying one of the things what they were saying one of the things what they were saying one of the things that kept coming up is how they're that kept coming up is how they're that kept coming up is how they're extremely concerned about their employer extremely concerned about their employer extremely concerned about their employer finding a way to remove them from the finding a way to remove them from the finding a way to remove them from the company to bring any younger cheaper company to bring any younger cheaper company to bring any younger cheaper workers now to someone like me who is workers now to someone like me who is workers now to someone like me who is younger that sort of thing never crossed younger that sort of thing never crossed younger that sort of thing never crossed my mind my mind my mind but it totally makes sense if this but it totally makes sense if this but it totally makes sense if this doesn't concern you now then maybe it doesn't concern you now then maybe it doesn't concern you now then maybe it should this is even more of a reason to should this is even more of a reason to should this is even more of a reason to pursue financial independence well pursue financial independence well pursue financial independence well before the age of seventy that way before the age of seventy that way before the age of seventy that way worrying about being forced out of your worrying about being forced out of your worrying about being forced out of your job isn't even something that crosses job isn't even something that crosses job isn't even something that crosses your mind but I bet there are things your mind but I bet there are things your mind but I bet there are things that were doing today that'll prevent that were doing today that'll prevent that were doing today that'll prevent you from reaching financial independence you from reaching financial independence you from reaching financial independence or early retirement sooner rather than or early retirement sooner rather than or early retirement sooner rather than later in an effort to help you make later in an effort to help you make later in an effort to help you make things easier on yourself I'm gonna go things easier on yourself I'm gonna go things easier on yourself I'm gonna go through some ways that you could be through some ways that you could be through some ways that you could be sabotaging yourself from ever reaching sabotaging yourself from ever reaching sabotaging yourself from ever reaching fire my hope is that if I can get you fire my hope is that if I can get you fire my hope is that if I can get you thinking about these things now you're thinking about these things now you're thinking about these things now you're gonna be way better off going forward gonna be way better off going forward gonna be way better off going forward hey I'm Jarrod with an A and on this hey I'm Jarrod with an A and on this hey I'm Jarrod with an A and on this channel we like to talk about all things channel we like to talk about all things channel we like to talk about all things personal finance and investing and we personal finance and investing and we personal finance and investing and we like to have some fun in the process like to have some fun in the process like to have some fun in the process financial independence isn't just about financial independence isn't just about financial independence isn't just about giving you more time to do what you want giving you more time to do what you want giving you more time to do what you want it's also about protecting yourself from it's also about protecting yourself from it's also about protecting yourself from outside influences things that are outside influences things that are outside influences things that are outside of your control you can keep outside of your control you can keep outside of your control you can keep pushing off thinking about what might pushing off thinking about what might pushing off thinking about what might happen in the future but I promise you happen in the future but I promise you happen in the future but I promise you it's not going to stop coming this it's not going to stop coming this it's not going to stop coming this should scare the out of you let's should scare the out of you let's should scare the out of you let's get into it right meowww the first thing get into it right meowww the first thing get into it right meowww the first thing that will surely hold you back from that will surely hold you back from that will surely hold you back from reaching financial independence is if reaching financial independence is if reaching financial independence is if your actions are based on what the news your actions are based on what the news your actions are based on what the news is saying the news cycle is absolutely is saying the news cycle is absolutely is saying the news cycle is absolutely insane when the stock market is up we insane when the stock market is up we insane when the stock market is up we get flooded with news about how it's at get flooded with news about how it's at get flooded with news about how it's at an all-time high so the next market an all-time high so the next market an all-time high so the next market crash is coming you should be so scared crash is coming you should be so scared crash is coming you should be so scared on the other hand when it's down it new on the other hand when it's down it new on the other hand when it's down it new starts flooding in about how it's going starts flooding in about how it's going starts flooding in about how it's going down even further or that it's down even further or that it's down even further or that it's definitely gonna go up so invest your definitely gonna go up so invest your definitely gonna go up so invest your money right now I'm confident you were a money right now I'm confident you were a money right now I'm confident you were a very intelligent person so I know that very intelligent person so I know that very intelligent person so I know that you are aware of this but all it takes you are aware of this but all it takes you are aware of this but all it takes is one of those little seeds to get is one of those little seeds to get is one of those little seeds to get planted into your head about how the planted into your head about how the planted into your head about how the stock market is going down then you stock market is going down then you stock market is going down then you either wait to invest your money or you either wait to invest your money or you either wait to invest your money or you panic sell all of your investments look panic sell all of your investments look panic sell all of your investments look the stock market is more emotional than the stock market is more emotional than the stock market is more emotional than a teenage girl in the short term if you a teenage girl in the short term if you a teenage girl in the short term if you were only focused on what the market is were only focused on what the market is were only focused on what the market is doing today next month next year or in doing today next month next year or in doing today next month next year or in three years then you've already lost three years then you've already lost three years then you've already lost investing for financial independence investing for financial independence investing for financial independence take someone having a very long-term take someone having a very long-term take someone having a very long-term outlook when it comes to everything it's outlook when it comes to everything it's outlook when it comes to everything it's about thinking how your actions today about thinking how your actions today about thinking how your actions today are going to impact your life later down are going to impact your life later down are going to impact your life later down the line the fact that your portfolio is the line the fact that your portfolio is the line the fact that your portfolio is up % over the past two years doesn't up % over the past two years doesn't up % over the past two years doesn't matter matter matter tell me what it looks like over a or tell me what it looks like over a or tell me what it looks like over a or year period I like to compare year period I like to compare year period I like to compare financial independence to the l word financial independence to the l word financial independence to the l word love and the one apart of the fire love and the one apart of the fire love and the one apart of the fire movement should be pursuing a long term movement should be pursuing a long term movement should be pursuing a long term relationship not a one-night stand I relationship not a one-night stand I relationship not a one-night stand I mean I guess technically you could fall mean I guess technically you could fall mean I guess technically you could fall in love with a one-night stand but it's in love with a one-night stand but it's in love with a one-night stand but it's a lot less likely quit watching the news a lot less likely quit watching the news a lot less likely quit watching the news and quit taking action based on what the and quit taking action based on what the and quit taking action based on what the news is saying we have to remember that news is saying we have to remember that news is saying we have to remember that news outlets are incentivized by the news outlets are incentivized by the news outlets are incentivized by the eyeballs that they attract the more eyeballs that they attract the more eyeballs that they attract the more eyeballs the more advertising dollars eyeballs the more advertising dollars eyeballs the more advertising dollars that they receive and what gets clicks that they receive and what gets clicks that they receive and what gets clicks and eyeballs doomsday type news bad news and eyeballs doomsday type news bad news and eyeballs doomsday type news bad news dominates the media like nothing else dominates the media like nothing else dominates the media like nothing else yeah sure we love hearing a story about yeah sure we love hearing a story about yeah sure we love hearing a story about how a little girl I don't know saved a how a little girl I don't know saved a how a little girl I don't know saved a dog in a tree but we're more likely to dog in a tree but we're more likely to dog in a tree but we're more likely to gravitate towards news on how the world gravitate towards news on how the world gravitate towards news on how the world is on fire no pun intended I don't care is on fire no pun intended I don't care is on fire no pun intended I don't care about what web sites are saying about about what web sites are saying about about what web sites are saying about the US government and how much they like the US government and how much they like the US government and how much they like peaches I don't care about that book by peaches I don't care about that book by peaches I don't care about that book by dr. Seuss called briggsie and I sure dr. Seuss called briggsie and I sure dr. Seuss called briggsie and I sure don't care about the US and Chinese don't care about the US and Chinese don't care about the US and Chinese government's putting bans on trading government's putting bans on trading government's putting bans on trading pokemon cards none of these things are pokemon cards none of these things are pokemon cards none of these things are going to stop me from investing on a going to stop me from investing on a going to stop me from investing on a consistent basis nor are they going to consistent basis nor are they going to consistent basis nor are they going to make me want to sell all of my make me want to sell all of my make me want to sell all of my investments just like my grandpa always investments just like my grandpa always investments just like my grandpa always said not my monkeys and not my circus if said not my monkeys and not my circus if said not my monkeys and not my circus if you could do me a huge favor then please you could do me a huge favor then please you could do me a huge favor then please Hulk smash that thumbs up button to help Hulk smash that thumbs up button to help Hulk smash that thumbs up button to help spore myself in this channel and my dog spore myself in this channel and my dog spore myself in this channel and my dog and in return I shall entertain and and in return I shall entertain and and in return I shall entertain and educate the next mistake that I see educate the next mistake that I see educate the next mistake that I see people make is that they think they're people make is that they think they're people make is that they think they're going to achieve something without any going to achieve something without any going to achieve something without any sort of plain sorry to break it to you sort of plain sorry to break it to you sort of plain sorry to break it to you people a vision board and reading that people a vision board and reading that people a vision board and reading that book the secret doesn't count as a plan book the secret doesn't count as a plan book the secret doesn't count as a plan a guy a guy a guy I was really into that stuff and I was really into that stuff and I was really into that stuff and unfortunately he's still not very close unfortunately he's still not very close unfortunately he's still not very close to achieving or I should say manifesting to achieving or I should say manifesting to achieving or I should say manifesting his vision board you mean that doesn't his vision board you mean that doesn't his vision board you mean that doesn't work all so sad unless of course he work all so sad unless of course he work all so sad unless of course he updated that vision board with pictures updated that vision board with pictures updated that vision board with pictures of an ex-professional gambler who lost of an ex-professional gambler who lost of an ex-professional gambler who lost all of his money and has $, in all of his money and has $, in all of his money and has $, in credit card debt if that's the case then credit card debt if that's the case then credit card debt if that's the case then manifestations success he's one of those manifestations success he's one of those manifestations success he's one of those really smart dumb people we all know really smart dumb people we all know really smart dumb people we all know someone like that it makes me want to someone like that it makes me want to someone like that it makes me want to absolutely rip my hair listen up your absolutely rip my hair listen up your absolutely rip my hair listen up your plan might not play out exactly how you plan might not play out exactly how you plan might not play out exactly how you thought and that is perfectly fine but thought and that is perfectly fine but thought and that is perfectly fine but at least you have some idea of what you at least you have some idea of what you at least you have some idea of what you are going to do things are gonna change are going to do things are gonna change are going to do things are gonna change as time goes on and you'll decide to as time goes on and you'll decide to as time goes on and you'll decide to adjust that plan which is perfectly adjust that plan which is perfectly adjust that plan which is perfectly normal normal normal kids will change the plan getting kids will change the plan getting kids will change the plan getting married will change the plan and heck married will change the plan and heck married will change the plan and heck for those Millennials moving out of your for those Millennials moving out of your for those Millennials moving out of your mom's basement is definitely gonna mom's basement is definitely gonna mom's basement is definitely gonna change your plan yes I'm talking to you change your plan yes I'm talking to you change your plan yes I'm talking to you my fellow Millennials hey mom I'm still my fellow Millennials hey mom I'm still my fellow Millennials hey mom I'm still waiting on that meat loaf hurry up I'm waiting on that meat loaf hurry up I'm waiting on that meat loaf hurry up I'm hungry oh and thank you for tucking me hungry oh and thank you for tucking me hungry oh and thank you for tucking me in before bed last night the first thing in before bed last night the first thing in before bed last night the first thing you need to have planned for to reach you need to have planned for to reach you need to have planned for to reach financial independence or early financial independence or early financial independence or early retirement is the accumulation phase of retirement is the accumulation phase of retirement is the accumulation phase of the process this part is huge because the process this part is huge because the process this part is huge because it's gonna help you gauge how quickly it's gonna help you gauge how quickly it's gonna help you gauge how quickly that you'll be able to hit your number that you'll be able to hit your number that you'll be able to hit your number it's like digging a hole the bigger it's like digging a hole the bigger it's like digging a hole the bigger shovel that you have the more dirt you shovel that you have the more dirt you shovel that you have the more dirt you can scoop up at once if you were only can scoop up at once if you were only can scoop up at once if you were only able to invest $ in your k or IRA able to invest $ in your k or IRA able to invest $ in your k or IRA that it's going to take you years to that it's going to take you years to that it's going to take you years to hit that $,, mark but if you hit that $,, mark but if you hit that $,, mark but if you quadruple that to invest $, per quadruple that to invest $, per quadruple that to invest $, per month then you'll reach a million month then you'll reach a million month then you'll reach a million dollars in years accumulating more dollars in years accumulating more dollars in years accumulating more money in this phase can be done many money in this phase can be done many money in this phase can be done many different ways some of the wor popular different ways some of the wor popular different ways some of the wor popular are making more money at your current are making more money at your current are making more money at your current job getting a second or possibly a third job getting a second or possibly a third job getting a second or possibly a third job for the people who have the time and job for the people who have the time and job for the people who have the time and aren't lazy aren't lazy aren't lazy starting a side hustle to make some starting a side hustle to make some starting a side hustle to make some extra cash or starting a side hustle extra cash or starting a side hustle extra cash or starting a side hustle that you intend to turn into a full-time that you intend to turn into a full-time that you intend to turn into a full-time business the next phase of planning that business the next phase of planning that business the next phase of planning that needs to be done on your part is around needs to be done on your part is around needs to be done on your part is around when you withdraw your money when are when you withdraw your money when are when you withdraw your money when are you going to need the money how much are you going to need the money how much are you going to need the money how much are you going to need every single year to you going to need every single year to you going to need every single year to live off of answering these questions live off of answering these questions live off of answering these questions will help you decide what to do with will help you decide what to do with will help you decide what to do with your money in your accumulation phase your money in your accumulation phase your money in your accumulation phase once you have the money you need to do once you have the money you need to do once you have the money you need to do something with it that'll give it a something with it that'll give it a something with it that'll give it a chance to grow you need to chew chance to grow you need to chew chance to grow you need to chew your investment vehicle or vehicles one your investment vehicle or vehicles one your investment vehicle or vehicles one person might just want to invest all of person might just want to invest all of person might just want to invest all of their money into the stock market their money into the stock market their money into the stock market another might be investing in real another might be investing in real another might be investing in real estate another could be starting a estate another could be starting a estate another could be starting a business that pays them a consistent business that pays them a consistent business that pays them a consistent income once they hit five or someone income once they hit five or someone income once they hit five or someone could be doing a combination of all could be doing a combination of all could be doing a combination of all three once you choose how you'll invest three once you choose how you'll invest three once you choose how you'll invest you'll be able to figure out the details you'll be able to figure out the details you'll be able to figure out the details of how you're going to get that money of how you're going to get that money of how you're going to get that money into your bank account every month the into your bank account every month the into your bank account every month the last thing you need to think about when last thing you need to think about when last thing you need to think about when planning is what in the world are you planning is what in the world are you planning is what in the world are you going to do once you reach financial going to do once you reach financial going to do once you reach financial independence you spent all of these independence you spent all of these independence you spent all of these years and countless hours pursuing this years and countless hours pursuing this years and countless hours pursuing this and now you're there so what's the plan and now you're there so what's the plan and now you're there so what's the plan I know it sounds silly for you to even I know it sounds silly for you to even I know it sounds silly for you to even have to think about this but if you have to think about this but if you have to think about this but if you don't then you'll eventually end up don't then you'll eventually end up don't then you'll eventually end up feeling lost and depressed because work feeling lost and depressed because work feeling lost and depressed because work whether you enjoy it or not gives you a whether you enjoy it or not gives you a whether you enjoy it or not gives you a sense of purpose once that thing is gone sense of purpose once that thing is gone sense of purpose once that thing is gone it'll free up a lot more time what are it'll free up a lot more time what are it'll free up a lot more time what are you going to do to fill that time and you going to do to fill that time and you going to do to fill that time and don't say just sit around and watch don't say just sit around and watch don't say just sit around and watch television because that's not a fun life television because that's not a fun life television because that's not a fun life to lead it could be some sort of to lead it could be some sort of to lead it could be some sort of volunteering or working out a lower volunteering or working out a lower volunteering or working out a lower paying job just for fun or possibly even paying job just for fun or possibly even paying job just for fun or possibly even putting energy into a hobby that you've putting energy into a hobby that you've putting energy into a hobby that you've never had time for because your job was never had time for because your job was never had time for because your job was taking up so much of it this part of the taking up so much of it this part of the taking up so much of it this part of the planning doesn't have to be at the top planning doesn't have to be at the top planning doesn't have to be at the top of your list of things to figure out as of your list of things to figure out as of your list of things to figure out as soon as possible because you'll have soon as possible because you'll have soon as possible because you'll have time to think through it while you're in time to think through it while you're in time to think through it while you're in the process of pursuing financial the process of pursuing financial the process of pursuing financial independence but it is something that independence but it is something that independence but it is something that you won't want to push off until the you won't want to push off until the you won't want to push off until the very end procrastination is going to be very end procrastination is going to be very end procrastination is going to be your downfall if you were pursuing fire your downfall if you were pursuing fire your downfall if you were pursuing fire then you can't be someone that says that then you can't be someone that says that then you can't be someone that says that they'll worry about it later now has to they'll worry about it later now has to they'll worry about it later now has to be your new normal you can get away with be your new normal you can get away with be your new normal you can get away with not doing laundry until it piles up and not doing laundry until it piles up and not doing laundry until it piles up and you have nothing to wear because the you have nothing to wear because the you have nothing to wear because the washer and dryer are right in the other washer and dryer are right in the other washer and dryer are right in the other room so you can just do a quick load at room so you can just do a quick load at room so you can just do a quick load at the last minute the solution to your the last minute the solution to your the last minute the solution to your problem can be reached in a matter of problem can be reached in a matter of problem can be reached in a matter of hours but what about if you hours but what about if you hours but what about if you procrastinate getting your finances in procrastinate getting your finances in procrastinate getting your finances in order to help you reach financial order to help you reach financial order to help you reach financial independence or early retirement you'll independence or early retirement you'll independence or early retirement you'll be screwed you need to figure out how to be screwed you need to figure out how to be screwed you need to figure out how to increase your savings rate now you need increase your savings rate now you need increase your savings rate now you need to understand investing your money now to understand investing your money now to understand investing your money now you need to start working towards you need to start working towards you need to start working towards earning more money right now I'm kind of earning more money right now I'm kind of earning more money right now I'm kind of being facetious when I say to do all of being facetious when I say to do all of being facetious when I say to do all of these things right now because it's a these things right now because it's a these things right now because it's a little bit overwhelming I agree but you little bit overwhelming I agree but you little bit overwhelming I agree but you should at least start the process of should at least start the process of should at least start the process of tackling them one at a time tackling them one at a time tackling them one at a time finances are one of those funny things finances are one of those funny things finances are one of those funny things where if you keep putting it off and where if you keep putting it off and where if you keep putting it off and putting it putting it putting it then everything becomes more difficult then everything becomes more difficult then everything becomes more difficult to do don't believe me talk to those to do don't believe me talk to those to do don't believe me talk to those year olds who have $, of consumer year olds who have $, of consumer year olds who have $, of consumer debt or talk to those year olds who debt or talk to those year olds who debt or talk to those year olds who only have $, saved for retirement only have $, saved for retirement only have $, saved for retirement they have a really hard road ahead of they have a really hard road ahead of they have a really hard road ahead of them always remember that the cost of them always remember that the cost of them always remember that the cost of our good habits is in the present the our good habits is in the present the our good habits is in the present the cost of our bad habits is in the future cost of our bad habits is in the future cost of our bad habits is in the future you didn't get fat by drinking three you didn't get fat by drinking three you didn't get fat by drinking three sodas yesterday you got fat from sodas yesterday you got fat from sodas yesterday you got fat from drinking three sodas every single day drinking three sodas every single day drinking three sodas every single day for the past three years just like a for the past three years just like a for the past three years just like a year old didn't miss his chance of year old didn't miss his chance of year old didn't miss his chance of becoming financially independent because becoming financially independent because becoming financially independent because he didn't focus on it yesterday he didn't focus on it yesterday he didn't focus on it yesterday he missed the opportunity because he he missed the opportunity because he he missed the opportunity because he didn't take the steps to pursue fire and didn't take the steps to pursue fire and didn't take the steps to pursue fire and do smart things with his money over the do smart things with his money over the do smart things with his money over the past years hi my name is past years hi my name is past years hi my name is procrastination and I need to be your procrastination and I need to be your procrastination and I need to be your new enemy if you are not willing to new enemy if you are not willing to new enemy if you are not willing to pursue making more money than have fun pursue making more money than have fun pursue making more money than have fun retiring when you're years old hope retiring when you're years old hope retiring when you're years old hope that works out for you achieving fire in that works out for you achieving fire in that works out for you achieving fire in a timely manner means increasing your a timely manner means increasing your a timely manner means increasing your income making money has to be your new income making money has to be your new income making money has to be your new hobby going out and getting hammered hobby going out and getting hammered hobby going out and getting hammered every weekend with your buddies or every weekend with your buddies or every weekend with your buddies or girlfriends isn't something you can do girlfriends isn't something you can do girlfriends isn't something you can do any longer it can be from time to time any longer it can be from time to time any longer it can be from time to time but it's now going to be considered the but it's now going to be considered the but it's now going to be considered the exception as opposed to the rule for you exception as opposed to the rule for you exception as opposed to the rule for you to pursue more money you need to start to pursue more money you need to start to pursue more money you need to start thinking through the lens of a creator thinking through the lens of a creator thinking through the lens of a creator as opposed to a consumer consumers think as opposed to a consumer consumers think as opposed to a consumer consumers think about buying the iPhone or how they can about buying the iPhone or how they can about buying the iPhone or how they can buy the iPhone creators on the other buy the iPhone creators on the other buy the iPhone creators on the other hand think about how they can take that hand think about how they can take that hand think about how they can take that money that would be spent on an iPhone money that would be spent on an iPhone money that would be spent on an iPhone and turn it into more money or take a and turn it into more money or take a and turn it into more money or take a small portion of that money buy an small portion of that money buy an small portion of that money buy an iPhone that's a couple of generations iPhone that's a couple of generations iPhone that's a couple of generations old then use the remaining money to old then use the remaining money to old then use the remaining money to invest it in something that will give invest it in something that will give invest it in something that will give them a return bonus points if they use them a return bonus points if they use them a return bonus points if they use that iPhone to make more money earlier that iPhone to make more money earlier that iPhone to make more money earlier in the video I mentioned two different in the video I mentioned two different in the video I mentioned two different ways to increase your income if you need ways to increase your income if you need ways to increase your income if you need more help than I created a playlist to more help than I created a playlist to more help than I created a playlist to all of my money making videos link to all of my money making videos link to all of my money making videos link to that one is in the description so always that one is in the description so always that one is in the description so always remind yourself create more consume less remind yourself create more consume less remind yourself create more consume less which ties perfectly into the next point which ties perfectly into the next point which ties perfectly into the next point you'll never reach financial you'll never reach financial you'll never reach financial independence if you are not willing to independence if you are not willing to independence if you are not willing to do things differently there is no way do things differently there is no way do things differently there is no way around it if you've watched enough of my around it if you've watched enough of my around it if you've watched enough of my videos then you'll know how much I videos then you'll know how much I videos then you'll know how much I absolutely despise average it makes me absolutely despise average it makes me absolutely despise average it makes me throw up in my mouth a little bit just throw up in my mouth a little bit just throw up in my mouth a little bit just thinking about that kind of person not thinking about that kind of person not thinking about that kind of person not because I think that I'm better than because I think that I'm better than because I think that I'm better than but because my natural tendencies are to but because my natural tendencies are to but because my natural tendencies are to do what the average person does every do what the average person does every do what the average person does every single day I don't blame them though single day I don't blame them though single day I don't blame them though because it feels good and it feels because it feels good and it feels because it feels good and it feels comfortable therefore I've created this comfortable therefore I've created this comfortable therefore I've created this war inside of my own head against war inside of my own head against war inside of my own head against average if you're not willing to go average if you're not willing to go average if you're not willing to go against the grain on your path to Phi against the grain on your path to Phi against the grain on your path to Phi and this just isn't the life for you and and this just isn't the life for you and and this just isn't the life for you and that's okay but in years that's okay but in years that's okay but in years you cannot whine about your financial you cannot whine about your financial you cannot whine about your financial situation or the fact that you are still situation or the fact that you are still situation or the fact that you are still working because you decided not to do working because you decided not to do working because you decided not to do things differently and live outside of things differently and live outside of things differently and live outside of the box today the person who plans to the box today the person who plans to the box today the person who plans to retire on time or even later has settled retire on time or even later has settled retire on time or even later has settled in their current ways people like us in their current ways people like us in their current ways people like us don't do things like that don't do things like that don't do things like that period if your mindset is trash with a period if your mindset is trash with a period if your mindset is trash with a capital T then your fire results will be capital T then your fire results will be capital T then your fire results will be trash as well so what do you think about trash as well so what do you think about trash as well so what do you think about the things that happen in your life is the things that happen in your life is the things that happen in your life is everything you can either take them at everything you can either take them at everything you can either take them at face value or put them through a filter face value or put them through a filter face value or put them through a filter that you've created for yourself this that you've created for yourself this that you've created for yourself this filter is going to give you a chance to filter is going to give you a chance to filter is going to give you a chance to reframe the whole situation to help you reframe the whole situation to help you reframe the whole situation to help you process what's really going on the process what's really going on the process what's really going on the unfiltered person thinks about how life unfiltered person thinks about how life unfiltered person thinks about how life is happening to them the person who has is happening to them the person who has is happening to them the person who has created a filter for him or herself created a filter for him or herself created a filter for him or herself thinks about how life is happening for thinks about how life is happening for thinks about how life is happening for them here's an example an unfiltered them here's an example an unfiltered them here's an example an unfiltered person would say I have a ton of debt person would say I have a ton of debt person would say I have a ton of debt and a negative net worth I won't be able and a negative net worth I won't be able and a negative net worth I won't be able to reach financial independence for to reach financial independence for to reach financial independence for years why even bother pursuing it the years why even bother pursuing it the years why even bother pursuing it the filtered person would say dude I'm gonna filtered person would say dude I'm gonna filtered person would say dude I'm gonna be in years I'll be years old be in years I'll be years old be in years I'll be years old that's years sooner than the average that's years sooner than the average that's years sooner than the average person or I won't be able to reach person or I won't be able to reach person or I won't be able to reach financial independence for another financial independence for another financial independence for another years when I'm what are some things years when I'm what are some things years when I'm what are some things that I can do to get there in years that I can do to get there in years that I can do to get there in years what can I do to get there in years what can I do to get there in years what can I do to get there in years okay I'm gonna take action to do that okay I'm gonna take action to do that okay I'm gonna take action to do that right now just like my grandpa always right now just like my grandpa always right now just like my grandpa always said after your excuses because no one said after your excuses because no one said after your excuses because no one cares so do something to change your cares so do something to change your cares so do something to change your outcome watch this video at the top next outcome watch this video at the top next outcome watch this video at the top next because it'll show you exactly how I'm because it'll show you exactly how I'm because it'll show you exactly how I'm investing for financial independence the investing for financial independence the investing for financial independence the bottom one will take you to a playlist bottom one will take you to a playlist bottom one will take you to a playlist that has all of my financial that has all of my financial that has all of my financial independence and early retirement videos independence and early retirement videos independence and early retirement videos don't forget to Hulk smash that thumbs don't forget to Hulk smash that thumbs don't forget to Hulk smash that thumbs up on and check out the description for up on and check out the description for up on and check out the description for more resources and playlists to help you more resources and playlists to help you more resources and playlists to help you out with all of your personal finance out with all of your personal finance out with all of your personal finance and investing needs I'll see you in the and investing needs I'll see you in the and investing needs I'll see you in the next one friends a Dios WEBVTT Kind: captions Language: en it's a little bit surreal just in terms it's a little bit surreal just in terms it's a little bit surreal just in terms of thinking so this is the next big step of thinking so this is the next big step of thinking so this is the next big step this is the rest of my life this is the rest of my life this is the rest of my life for Justin McCurry that giant step was for Justin McCurry that giant step was for Justin McCurry that giant step was quitting his engineering job in and quitting his engineering job in and quitting his engineering job in and retiring at age I'm really focused on retiring at age I'm really focused on retiring at age I'm really focused on how can I change my lifestyle for the how can I change my lifestyle for the how can I change my lifestyle for the better so that I can have more free time better so that I can have more free time better so that I can have more free time for me he's not alone the desire to quit for me he's not alone the desire to quit for me he's not alone the desire to quit working decades early is the focus of a working decades early is the focus of a working decades early is the focus of a growing movement mostly among growing movement mostly among growing movement mostly among Millennials called fire which stands for Millennials called fire which stands for Millennials called fire which stands for financial independence retire early how financial independence retire early how financial independence retire early how did he do it did he do it did he do it saving a large percentage of my income saving a large percentage of my income saving a large percentage of my income was a big part of it we saved about half was a big part of it we saved about half was a big part of it we saved about half of our incomes and that increased as we of our incomes and that increased as we of our incomes and that increased as we made more money living and working in made more money living and working in made more money living and working in Raleigh North Carolina McCurry and his Raleigh North Carolina McCurry and his Raleigh North Carolina McCurry and his wife never made more than a hundred and wife never made more than a hundred and wife never made more than a hundred and fifty thousand dollars a year combined fifty thousand dollars a year combined fifty thousand dollars a year combined after ten years of saving and maxing out after ten years of saving and maxing out after ten years of saving and maxing out their ks their investments mostly in their ks their investments mostly in their ks their investments mostly in stock index funds go to . million stock index funds go to . million stock index funds go to . million dollars will that be enough for him his dollars will that be enough for him his dollars will that be enough for him his wife and three kids you always have wife and three kids you always have wife and three kids you always have those doubts am i doing the right thing those doubts am i doing the right thing those doubts am i doing the right thing is this is this what I should be doing is this is this what I should be doing is this is this what I should be doing six years later the McCurry say they six years later the McCurry say they six years later the McCurry say they live on just $, a year taken from live on just $, a year taken from live on just $, a year taken from his investments and a blog he writes on his investments and a blog he writes on his investments and a blog he writes on the fire movement called rout of good the fire movement called rout of good the fire movement called rout of good Tanya Hester is part of the fire Tanya Hester is part of the fire Tanya Hester is part of the fire movement she was a communications movement she was a communications movement she was a communications consultant until she quit working last consultant until she quit working last consultant until she quit working last year at the age of her husband year at the age of her husband year at the age of her husband retired at the same time at the age of retired at the same time at the age of retired at the same time at the age of she writes about it in her new book she writes about it in her new book she writes about it in her new book that's called work optional retire early that's called work optional retire early that's called work optional retire early the non penny-pinching way and Tanya the non penny-pinching way and Tanya the non penny-pinching way and Tanya thank you so much for joining us thanks thank you so much for joining us thanks thank you so much for joining us thanks so much for having me why did you get so much for having me why did you get so much for having me why did you get into this movement why did you want to into this movement why did you want to into this movement why did you want to quit working while you were still in quit working while you were still in quit working while you were still in your s my husband and I had jobs that your s my husband and I had jobs that your s my husband and I had jobs that we loved actually I think there's a we loved actually I think there's a we loved actually I think there's a common misconception that those of us common misconception that those of us common misconception that those of us pursuing early retirement are doing it pursuing early retirement are doing it pursuing early retirement are doing it because we hate work or we feel like we because we hate work or we feel like we because we hate work or we feel like we shouldn't have to work that really shouldn't have to work that really shouldn't have to work that really couldn't have been farther from the couldn't have been farther from the couldn't have been farther from the truth for us it was just that we felt truth for us it was just that we felt truth for us it was just that we felt the toll that work was taking and we the toll that work was taking and we the toll that work was taking and we knew we couldn't sustain that pace until knew we couldn't sustain that pace until knew we couldn't sustain that pace until age we were both working in age we were both working in age we were both working in consulting careers that demanded long consulting careers that demanded long consulting careers that demanded long hours and a lot of travel and they just hours and a lot of travel and they just hours and a lot of travel and they just really took a toll at the same time I really took a toll at the same time I really took a toll at the same time I also knew that I might have a Jeanette also knew that I might have a Jeanette also knew that I might have a Jeanette disability in my future and not have an disability in my future and not have an disability in my future and not have an endless timeline to kind of do the endless timeline to kind of do the endless timeline to kind of do the things that I love to do which were very things that I love to do which were very things that I love to do which were very active and outdoorsy so for us it was a active and outdoorsy so for us it was a active and outdoorsy so for us it was a pretty easy decision once we realized pretty easy decision once we realized pretty easy decision once we realized that early retirement was possible but that early retirement was possible but that early retirement was possible but you know that's gonna look a little bit you know that's gonna look a little bit you know that's gonna look a little bit different for everyone you know we call different for everyone you know we call different for everyone you know we call it early retirement but you're writing a it early retirement but you're writing a it early retirement but you're writing a book and we just heard from another book and we just heard from another book and we just heard from another gentleman who's is still doing things gentleman who's is still doing things gentleman who's is still doing things too he's writing a blog is it actually a too he's writing a blog is it actually a too he's writing a blog is it actually a retirement or is it just stepping down retirement or is it just stepping down retirement or is it just stepping down from an incredibly chaotic hard paced from an incredibly chaotic hard paced from an incredibly chaotic hard paced job into one that maybe you can take job into one that maybe you can take job into one that maybe you can take your time with a little more I do think your time with a little more I do think your time with a little more I do think it's easy to get caught up in the it's easy to get caught up in the it's easy to get caught up in the traditional retirement kind of traditional retirement kind of traditional retirement kind of definition thinking that it has to mean definition thinking that it has to mean definition thinking that it has to mean that you either work or you don't I that you either work or you don't I that you either work or you don't I think there's so much more gray area and think there's so much more gray area and think there's so much more gray area and that each of us really can define for that each of us really can define for that each of us really can define for ourselves how much of a role we want ourselves how much of a role we want ourselves how much of a role we want work to play in our lives and the book work to play in our lives and the book work to play in our lives and the book really helps people make that decision really helps people make that decision really helps people make that decision in a really intentional way whether in a really intentional way whether in a really intentional way whether that's full early retirement or that's full early retirement or that's full early retirement or something in which you work some or like something in which you work some or like something in which you work some or like I do which is I do a lot of stuff that I do which is I do a lot of stuff that I do which is I do a lot of stuff that looks like work but it's all projects looks like work but it's all projects looks like work but it's all projects that I feel passionate about that I do that I feel passionate about that I do that I feel passionate about that I do only for me and not for anyone else do only for me and not for anyone else do only for me and not for anyone else do you think the heart of the fire movement you think the heart of the fire movement you think the heart of the fire movement is really about being frugal cutting is really about being frugal cutting is really about being frugal cutting your spending not acquiring stuff or is your spending not acquiring stuff or is your spending not acquiring stuff or is it more living off stocks and it more living off stocks and it more living off stocks and investments after you have saved a big investments after you have saved a big investments after you have saved a big nest egg I think it looks different for nest egg I think it looks different for nest egg I think it looks different for everyone you know like any group of everyone you know like any group of everyone you know like any group of people you've got a wide range of folks people you've got a wide range of folks people you've got a wide range of folks in the fire movement mark and I are much in the fire movement mark and I are much in the fire movement mark and I are much less frugal and that's why non less frugal and that's why non less frugal and that's why non penny-pinching is in the title of the penny-pinching is in the title of the penny-pinching is in the title of the book because we're actually not book because we're actually not book because we're actually not naturally frugal we weren't natural naturally frugal we weren't natural naturally frugal we weren't natural super savers and I wanted to show folks super savers and I wanted to show folks super savers and I wanted to show folks that even if you don't love counting that even if you don't love counting that even if you don't love counting every cent you spend on your groceries every cent you spend on your groceries every cent you spend on your groceries you can still pursue early retirement or you can still pursue early retirement or you can still pursue early retirement or some form of it I know I'm gonna sound some form of it I know I'm gonna sound some form of it I know I'm gonna sound like an old fuddy-duddy when I bring like an old fuddy-duddy when I bring like an old fuddy-duddy when I bring this up but it's just the idea of what this up but it's just the idea of what this up but it's just the idea of what might happen down the road whether it's might happen down the road whether it's might happen down the road whether it's a divorce whether it's an accident a divorce whether it's an accident a divorce whether it's an accident whether it's an illness that comes up in whether it's an illness that comes up in whether it's an illness that comes up in big medical costs that are associated big medical costs that are associated big medical costs that are associated with that I mean that's the thing that with that I mean that's the thing that with that I mean that's the thing that always panics me from the thought of always panics me from the thought of always panics me from the thought of doing something like this how do you doing something like this how do you doing something like this how do you tackle that and what do you advise tackle that and what do you advise tackle that and what do you advise people I think that sometimes working people I think that sometimes working people I think that sometimes working gives us a false sense of security and gives us a false sense of security and gives us a false sense of security and tells us that we can spend all of our tells us that we can spend all of our tells us that we can spend all of our money when in fact we should be saving a money when in fact we should be saving a money when in fact we should be saving a lot of it knowing that your career is lot of it knowing that your career is lot of it knowing that your career is only going to go for a decade two only going to go for a decade two only going to go for a decade two decades three decades something shorter decades three decades something shorter decades three decades something shorter than the norm I doubt I do think than the norm I doubt I do think than the norm I doubt I do think motivates you to save more and to make motivates you to save more and to make motivates you to save more and to make some different some different some different decisions that do help insulate you decisions that do help insulate you decisions that do help insulate you against those things you might get against those things you might get against those things you might get divorced and maybe a couple saved an divorced and maybe a couple saved an divorced and maybe a couple saved an amount that was good as a couple but amount that was good as a couple but amount that was good as a couple but it's no longer enough if you have to it's no longer enough if you have to it's no longer enough if you have to split it in half or healthcare costs are split it in half or healthcare costs are split it in half or healthcare costs are rising every year that's something that rising every year that's something that rising every year that's something that we need to account for there are a lot we need to account for there are a lot we need to account for there are a lot of things that I think you can be very of things that I think you can be very of things that I think you can be very clear-eyed about it's just a matter of clear-eyed about it's just a matter of clear-eyed about it's just a matter of acknowledging those risks and not acknowledging those risks and not acknowledging those risks and not assuming like oh we'll just adapt as assuming like oh we'll just adapt as assuming like oh we'll just adapt as they come let me ask one more issue do they come let me ask one more issue do they come let me ask one more issue do you think it's any coincidence that this you think it's any coincidence that this you think it's any coincidence that this movement has come at the same time that movement has come at the same time that movement has come at the same time that we've seen a -year incredible rally in we've seen a -year incredible rally in we've seen a -year incredible rally in the stock market I mean if something the stock market I mean if something the stock market I mean if something happened like the Great Recession from happened like the Great Recession from happened like the Great Recession from just over ten years ago if we saw just over ten years ago if we saw just over ten years ago if we saw markets collapse again would these markets collapse again would these markets collapse again would these people still be in a decent place to people still be in a decent place to people still be in a decent place to survive a market downturn with the plans survive a market downturn with the plans survive a market downturn with the plans that they've laid out you know obviously that they've laid out you know obviously that they've laid out you know obviously the historically long bull market has the historically long bull market has the historically long bull market has helped a lot of people reach early helped a lot of people reach early helped a lot of people reach early retirement faster I think that's just retirement faster I think that's just retirement faster I think that's just indisputable but I don't think that it's indisputable but I don't think that it's indisputable but I don't think that it's a phenomenon that exists only because of a phenomenon that exists only because of a phenomenon that exists only because of that I think that you see a lot of that I think that you see a lot of that I think that you see a lot of different movements of people right now different movements of people right now different movements of people right now questioning the norms that we've been questioning the norms that we've been questioning the norms that we've been taught questioning The Consumerist taught questioning The Consumerist taught questioning The Consumerist things that we've been taught as a things that we've been taught as a things that we've been taught as a society you have the minimalism movement society you have the minimalism movement society you have the minimalism movement the tiny-house movement you know all the tiny-house movement you know all the tiny-house movement you know all these different ways that people are these different ways that people are these different ways that people are saying you know what the the story I've saying you know what the the story I've saying you know what the the story I've been told maybe I don't want to follow been told maybe I don't want to follow been told maybe I don't want to follow that so I think that early retirement to that so I think that early retirement to that so I think that early retirement to me is more lumped in with that of people me is more lumped in with that of people me is more lumped in with that of people finding alternative narratives for their finding alternative narratives for their finding alternative narratives for their life and saying you know just because my life and saying you know just because my life and saying you know just because my parents or grandparents did it this way parents or grandparents did it this way parents or grandparents did it this way doesn't mean that I have to doesn't mean that I have to doesn't mean that I have to you you WEBVTT Kind: captions Language: en if you want to achieve financial if you want to achieve financial if you want to achieve financial independence retire early then you will independence retire early then you will independence retire early then you will need to do percent of the things I'm need to do percent of the things I'm need to do percent of the things I'm about to show you about to show you about to show you in this video I'm gonna show you four in this video I'm gonna show you four in this video I'm gonna show you four sets of numbers that you will have to sets of numbers that you will have to sets of numbers that you will have to know if you want to eventually have know if you want to eventually have know if you want to eventually have enough fu money to declare financial enough fu money to declare financial enough fu money to declare financial independence or early retirement even if independence or early retirement even if independence or early retirement even if you have no interest in fire your you have no interest in fire your you have no interest in fire your financial future will be better off if financial future will be better off if financial future will be better off if you know these numbers as well hey I'm you know these numbers as well hey I'm you know these numbers as well hey I'm Jared and on this channel we like to Jared and on this channel we like to Jared and on this channel we like to talk about all things personal finance talk about all things personal finance talk about all things personal finance and investing please Hulk smash that and investing please Hulk smash that and investing please Hulk smash that thumbs up button because I pretty much thumbs up button because I pretty much thumbs up button because I pretty much only feel comfortable when I'm around only feel comfortable when I'm around only feel comfortable when I'm around you you're kind of like the sweatpants you you're kind of like the sweatpants you you're kind of like the sweatpants of my life if you haven't thought these of my life if you haven't thought these of my life if you haven't thought these numbers through then it's kind of like numbers through then it's kind of like numbers through then it's kind of like walking around outside with your eyes walking around outside with your eyes walking around outside with your eyes closed and hoping that you're going to closed and hoping that you're going to closed and hoping that you're going to make it to your Chipotle destination to make it to your Chipotle destination to make it to your Chipotle destination to get yourself one of those big fat get yourself one of those big fat get yourself one of those big fat delicious burritos the first number you delicious burritos the first number you delicious burritos the first number you need to know is your ongoing network now need to know is your ongoing network now need to know is your ongoing network now I would say that everyone should know I would say that everyone should know I would say that everyone should know this but it's especially important for this but it's especially important for this but it's especially important for my fire people out there you're gonna my fire people out there you're gonna my fire people out there you're gonna need to know your net worth because it's need to know your net worth because it's need to know your net worth because it's going to be the ultimate tracker to tell going to be the ultimate tracker to tell going to be the ultimate tracker to tell you when you were able to declare you when you were able to declare you when you were able to declare financial independence or early financial independence or early financial independence or early retirement some people will calculate retirement some people will calculate retirement some people will calculate this differently but it's basically your this differently but it's basically your this differently but it's basically your assets so the money in your bank assets so the money in your bank assets so the money in your bank accounts investment accounts the market accounts investment accounts the market accounts investment accounts the market value of your home and things like that value of your home and things like that value of your home and things like that - your liabilities so how much you have - your liabilities so how much you have - your liabilities so how much you have left on your mortgage or any other debts left on your mortgage or any other debts left on your mortgage or any other debts that you have in some cases people will that you have in some cases people will that you have in some cases people will add the value of their car to their add the value of their car to their add the value of their car to their assets but since cars are constantly assets but since cars are constantly assets but since cars are constantly decreasing in value it makes sense to decreasing in value it makes sense to decreasing in value it makes sense to just consider this I consider that a just consider this I consider that a just consider this I consider that a sunk cost and leave it out of your sunk cost and leave it out of your sunk cost and leave it out of your numbers altogether one thing that I like numbers altogether one thing that I like numbers altogether one thing that I like to do is break down my net worth one to do is break down my net worth one to do is break down my net worth one step further between my liquid and a step further between my liquid and a step further between my liquid and a liquid illiquid net worth so if I wanted liquid illiquid net worth so if I wanted liquid illiquid net worth so if I wanted to say eff it load all of the available to say eff it load all of the available to say eff it load all of the available cash into a bag and go live in the woods cash into a bag and go live in the woods cash into a bag and go live in the woods then how much would I have in that bag then how much would I have in that bag then how much would I have in that bag at this point in time this would be my at this point in time this would be my at this point in time this would be my liquid net worth think of things like liquid net worth think of things like liquid net worth think of things like cash you have extremely easy access to cash you have extremely easy access to cash you have extremely easy access to as well as any money within your taxable as well as any money within your taxable as well as any money within your taxable investment accounts since these are investment accounts since these are investment accounts since these are pretty easy to get ahold of very quickly pretty easy to get ahold of very quickly pretty easy to get ahold of very quickly things more illiquid would be things you things more illiquid would be things you things more illiquid would be things you can't sell as easily so this will be can't sell as easily so this will be can't sell as easily so this will be your home because selling a house kind your home because selling a house kind your home because selling a house kind of takes a little bit of time your of takes a little bit of time your of takes a little bit of time your liquid assets wouldn't include your liquid assets wouldn't include your liquid assets wouldn't include your retirement accounts because if you retirement accounts because if you retirement accounts because if you wanted to have access to those early wanted to have access to those early wanted to have access to those early depending on the type of retirement depending on the type of retirement depending on the type of retirement you'd have to do a backdoor Roth IRA to you'd have to do a backdoor Roth IRA to you'd have to do a backdoor Roth IRA to get some of that money which takes a get some of that money which takes a get some of that money which takes a little bit of time as well one thing little bit of time as well one thing little bit of time as well one thing you're gonna want to make sure you have you're gonna want to make sure you have you're gonna want to make sure you have broken down is the different types of broken down is the different types of broken down is the different types of retirement accounts and how much you retirement accounts and how much you retirement accounts and how much you have in each one because they are not have in each one because they are not have in each one because they are not all treated equally you want to have a all treated equally you want to have a all treated equally you want to have a good idea of this breakdown so if you good idea of this breakdown so if you good idea of this breakdown so if you have some of your retirement money in a have some of your retirement money in a have some of your retirement money in a Roth k and some in a traditional k Roth k and some in a traditional k Roth k and some in a traditional k then you want to be able to visually see then you want to be able to visually see then you want to be able to visually see this so that you know how much you're this so that you know how much you're this so that you know how much you're gonna have to complete a back-door Roth gonna have to complete a back-door Roth gonna have to complete a back-door Roth on if you want to make the whole process on if you want to make the whole process on if you want to make the whole process just a little bit more difficult but just a little bit more difficult but just a little bit more difficult but also be more accurate you're gonna want also be more accurate you're gonna want also be more accurate you're gonna want to keep track of how much of your Roth to keep track of how much of your Roth to keep track of how much of your Roth IRA money is from your actual IRA money is from your actual IRA money is from your actual contributions because you have access to contributions because you have access to contributions because you have access to this contribution money tax-free at all this contribution money tax-free at all this contribution money tax-free at all times this portion of your money would times this portion of your money would times this portion of your money would be consistent would be considered liquid be consistent would be considered liquid be consistent would be considered liquid the last thing that I like to keep track the last thing that I like to keep track the last thing that I like to keep track of at the bottom of my net worths of at the bottom of my net worths of at the bottom of my net worths spreadsheet is four percent of my net spreadsheet is four percent of my net spreadsheet is four percent of my net worth this gives me a very rough idea of worth this gives me a very rough idea of worth this gives me a very rough idea of how much I can withdraw every year based how much I can withdraw every year based how much I can withdraw every year based on the four percent now this isn't the on the four percent now this isn't the on the four percent now this isn't the exact number since a big portion of your exact number since a big portion of your exact number since a big portion of your assets may be tied up in something like assets may be tied up in something like assets may be tied up in something like equity in your home and things like that equity in your home and things like that equity in your home and things like that but it's at least going to give you a but it's at least going to give you a but it's at least going to give you a semi close idea of where you're semi close idea of where you're semi close idea of where you're currently at in your financial life as currently at in your financial life as currently at in your financial life as you get closer to your actual fire date you get closer to your actual fire date you get closer to your actual fire date you can take the time to break this down you can take the time to break this down you can take the time to break this down in a way where it's a lot more accurate in a way where it's a lot more accurate in a way where it's a lot more accurate if you want access to the net worth if you want access to the net worth if you want access to the net worth calculator spreadsheet that I use an calculator spreadsheet that I use an calculator spreadsheet that I use an update every month then I'll throw a update every month then I'll throw a update every month then I'll throw a link down in the description for you to link down in the description for you to link down in the description for you to get a copy of it I'm one of those get a copy of it I'm one of those get a copy of it I'm one of those weirdos that likes to manually enter the weirdos that likes to manually enter the weirdos that likes to manually enter the numbers in once per month because it numbers in once per month because it numbers in once per month because it kind of helps me feel a little bit more kind of helps me feel a little bit more kind of helps me feel a little bit more connected to the numbers and gives me a connected to the numbers and gives me a connected to the numbers and gives me a chance to log into each of those chance to log into each of those chance to log into each of those accounts just to make sure that accounts just to make sure that accounts just to make sure that everything is kind of in order if you everything is kind of in order if you everything is kind of in order if you are looking for a free piece of software are looking for a free piece of software are looking for a free piece of software that does all this for you then I would that does all this for you then I would that does all this for you then I would recommend signing up for a personal recommend signing up for a personal recommend signing up for a personal capital account they do a really good capital account they do a really good capital account they do a really good job at allowing you to plug in all of job at allowing you to plug in all of job at allowing you to plug in all of your accounts and doing a lot of the your accounts and doing a lot of the your accounts and doing a lot of the calculating and math for you I'll throw calculating and math for you I'll throw calculating and math for you I'll throw a link down in the description to create a link down in the description to create a link down in the description to create a personal capital account the next a personal capital account the next a personal capital account the next number you're gonna want to monitor on a number you're gonna want to monitor on a number you're gonna want to monitor on a regular basis on your way to financial regular basis on your way to financial regular basis on your way to financial independence or early retirement is your independence or early retirement is your independence or early retirement is your savings rate if you track any one number savings rate if you track any one number savings rate if you track any one number then this is the most important one then this is the most important one then this is the most important one think of it as the holy grail of think of it as the holy grail of think of it as the holy grail of financial independence retire early financial independence retire early financial independence retire early numbers you need to get this number as numbers you need to get this number as numbers you need to get this number as high as absolutely possible if you want high as absolutely possible if you want high as absolutely possible if you want to have any chance at achieving to have any chance at achieving to have any chance at achieving financial independence retire early in financial independence retire early in financial independence retire early in my opinion at my opinion at my opinion at very least you need to be at a % very least you need to be at a % very least you need to be at a % savings rate and I would even consider savings rate and I would even consider savings rate and I would even consider that kind of low if you're trying to that kind of low if you're trying to that kind of low if you're trying to fire in any sort of reasonable amount of fire in any sort of reasonable amount of fire in any sort of reasonable amount of time if you need some tips I made a time if you need some tips I made a time if you need some tips I made a video on how I save percent of my video on how I save percent of my video on how I save percent of my income every single month link is in the income every single month link is in the income every single month link is in the description or somewhere around my head description or somewhere around my head description or somewhere around my head if you were married and you both earn an if you were married and you both earn an if you were married and you both earn an income then you will need to take your income then you will need to take your income then you will need to take your combined household income and induct combined household income and induct combined household income and induct your total household bills you may your total household bills you may your total household bills you may personally have a % savings rate but personally have a % savings rate but personally have a % savings rate but if your significant other is only at a if your significant other is only at a if your significant other is only at a % savings rate then you were combined % savings rate then you were combined % savings rate then you were combined a savings rate is only % if you feel a savings rate is only % if you feel a savings rate is only % if you feel like your savings rate is lacking then like your savings rate is lacking then like your savings rate is lacking then you have to start figuring out where to you have to start figuring out where to you have to start figuring out where to cut your expenses and how you're going cut your expenses and how you're going cut your expenses and how you're going to grow and close that gap by increasing to grow and close that gap by increasing to grow and close that gap by increasing your income the next number you need to your income the next number you need to your income the next number you need to know is the minimum amount of money you know is the minimum amount of money you know is the minimum amount of money you need to live on every single month not need to live on every single month not need to live on every single month not the number do you think is about right the number do you think is about right the number do you think is about right we're looking for the exact numbers here we're looking for the exact numbers here we're looking for the exact numbers here if you already complete a monthly budget if you already complete a monthly budget if you already complete a monthly budget then this should be pretty easy to then this should be pretty easy to then this should be pretty easy to calculate all you do is cut out all of calculate all you do is cut out all of calculate all you do is cut out all of the excess spending from your budget to the excess spending from your budget to the excess spending from your budget to get to that bare-bones number this is get to that bare-bones number this is get to that bare-bones number this is gonna help give you a good idea of the gonna help give you a good idea of the gonna help give you a good idea of the minimum amount of money that you need to minimum amount of money that you need to minimum amount of money that you need to fire of course you may want more than fire of course you may want more than fire of course you may want more than that to fire but it's always a good that to fire but it's always a good that to fire but it's always a good measuring stick to see where you're measuring stick to see where you're measuring stick to see where you're currently at I also like it from the currently at I also like it from the currently at I also like it from the standpoint of knowing how much you need standpoint of knowing how much you need standpoint of knowing how much you need to live on just in case you happen to to live on just in case you happen to to live on just in case you happen to get laid off or the company you work for get laid off or the company you work for get laid off or the company you work for shuts down completely remember that if shuts down completely remember that if shuts down completely remember that if you work for someone else and they're you work for someone else and they're you work for someone else and they're your only source of income then your job your only source of income then your job your only source of income then your job is not very safe I've actually found is not very safe I've actually found is not very safe I've actually found this process to be kind of fun to do and this process to be kind of fun to do and this process to be kind of fun to do and it actually makes you feel a little bit it actually makes you feel a little bit it actually makes you feel a little bit liberated about once or twice per year liberated about once or twice per year liberated about once or twice per year I'll sit down and go through my budget I'll sit down and go through my budget I'll sit down and go through my budget and cut out anything that is a and cut out anything that is a and cut out anything that is a non-essential this has been a great non-essential this has been a great non-essential this has been a great exercise to help me keep such a high exercise to help me keep such a high exercise to help me keep such a high savings rate not only does it remind me savings rate not only does it remind me savings rate not only does it remind me of how much I don't need to live on but of how much I don't need to live on but of how much I don't need to live on but it also helps keep me thinking about the it also helps keep me thinking about the it also helps keep me thinking about the areas that I may have kind of let get areas that I may have kind of let get areas that I may have kind of let get out of control when it comes to spending out of control when it comes to spending out of control when it comes to spending it honestly gives me comfort and it honestly gives me comfort and it honestly gives me comfort and confidence that I can easily get by if confidence that I can easily get by if confidence that I can easily get by if something did end up happening if you're something did end up happening if you're something did end up happening if you're born on a Friday or Saturday night and born on a Friday or Saturday night and born on a Friday or Saturday night and you're a nerd like me then you can also you're a nerd like me then you can also you're a nerd like me then you can also build a couple of budgeting scenarios to build a couple of budgeting scenarios to build a couple of budgeting scenarios to test out how things would look if a test out how things would look if a test out how things would look if a certain life event happened to you I am certain life event happened to you I am certain life event happened to you I am a big time weirdo and I enjoy doing this a big time weirdo and I enjoy doing this a big time weirdo and I enjoy doing this in my spare time you need to know how in my spare time you need to know how in my spare time you need to know how much you actually need for financial much you actually need for financial much you actually need for financial independence retire early this is the independence retire early this is the independence retire early this is the actual goal post that you were aiming actual goal post that you were aiming actual goal post that you were aiming for if you're early for if you're early for if you're early in your fire process then you can get in your fire process then you can get in your fire process then you can get away with not calculating this number away with not calculating this number away with not calculating this number immediately since you have a little bit immediately since you have a little bit immediately since you have a little bit of time but I would suggest thinking of time but I would suggest thinking of time but I would suggest thinking about it sooner rather than later once about it sooner rather than later once about it sooner rather than later once you start thinking about this number you start thinking about this number you start thinking about this number it's going to help you think through it's going to help you think through it's going to help you think through some of the variables and help you some of the variables and help you some of the variables and help you create a little to-do list for yourself create a little to-do list for yourself create a little to-do list for yourself plug your investments into a compound plug your investments into a compound plug your investments into a compound interest calculator to get an idea of interest calculator to get an idea of interest calculator to get an idea of how your money is going to grow over how your money is going to grow over how your money is going to grow over time this is where you start thinking time this is where you start thinking time this is where you start thinking about if you're going to move to a lower about if you're going to move to a lower about if you're going to move to a lower cost of living State or are you gonna cost of living State or are you gonna cost of living State or are you gonna stay in your current city or state which stay in your current city or state which stay in your current city or state which may be a little higher cost of living may be a little higher cost of living may be a little higher cost of living are you trying to pursue fat fire lean are you trying to pursue fat fire lean are you trying to pursue fat fire lean fire regular fire barista fire blah blah fire regular fire barista fire blah blah fire regular fire barista fire blah blah blah fire or even planning on firing blah fire or even planning on firing blah fire or even planning on firing overseas start thinking about this now overseas start thinking about this now overseas start thinking about this now and start diving into the type of and start diving into the type of and start diving into the type of lifestyle you were okay with living when lifestyle you were okay with living when lifestyle you were okay with living when you were financially financially you were financially financially you were financially financially independent financially financially independent financially financially independent financially financially independent or when you eventually independent or when you eventually independent or when you eventually retire early once again I put together a retire early once again I put together a retire early once again I put together a whole financial independence retire whole financial independence retire whole financial independence retire early playlist for you with all the early playlist for you with all the early playlist for you with all the videos that I've made on fire I'll throw videos that I've made on fire I'll throw videos that I've made on fire I'll throw the link down in the description or the link down in the description or the link down in the description or somewhere around my head leave a comment somewhere around my head leave a comment somewhere around my head leave a comment down below letting me know if you've down below letting me know if you've down below letting me know if you've thought about any of these numbers for thought about any of these numbers for thought about any of these numbers for yourself yet don't forget to Hulk smash yourself yet don't forget to Hulk smash yourself yet don't forget to Hulk smash that thumbs up button feel free to that thumbs up button feel free to that thumbs up button feel free to subscribe if you like and want more subscribe if you like and want more subscribe if you like and want more videos just like this one I'll see you videos just like this one I'll see you videos just like this one I'll see you in the next one friends a Dios WEBVTT Kind: captions Language: en [Music] [Music] [Music] listen to the birds sing even what listen to the birds sing even what listen to the birds sing even what [Music] [Music] [Music] [Applause] [Applause] [Applause] even if I'm from the world another today [Music] landed me strong and free landed me strong and free landed me strong and free [Music] [Music] [Music] [Applause] [Applause] [Applause] [Music] even if I'm from when the world even if even if I'm from when the world even if even if I'm from when the world even if from from from [Music] [Music] [Music] when the world seems a million miles when the world seems a million miles when the world seems a million miles away I know again today [Music] [Music] [Music] [Music] I'm never really are though when the I'm never really are though when the I'm never really are though when the world seems a million miles away world seems a million miles away world seems a million miles away I know today I know today I know today [Music] [Music] [Music] [Music] [Applause] [Applause] [Applause] even if you're far from home you'll even if you're far from home you'll even if you're far from home you'll never really know when the world seems a never really know when the world seems a never really know when the world seems a million miles away you know the Sun will million miles away you know the Sun will million miles away you know the Sun will rise again even if from hope even if you rise again even if from hope even if you rise again even if from hope even if you from from from [Music] WEBVTT Kind: captions Language: en this is the bigger pockets money this is the bigger pockets money this is the bigger pockets money podcasts show number where we podcasts show number where we podcasts show number where we interview Scot richens from playing with interview Scot richens from playing with interview Scot richens from playing with fire it's time for a new American Dream fire it's time for a new American Dream fire it's time for a new American Dream one that doesn't involve working in a one that doesn't involve working in a one that doesn't involve working in a cubicle for years barely scraping by cubicle for years barely scraping by cubicle for years barely scraping by whether you're looking to get your whether you're looking to get your whether you're looking to get your financial house in order financial house in order financial house in order invest the money you already have or invest the money you already have or invest the money you already have or discover new paths for wealth creation discover new paths for wealth creation discover new paths for wealth creation you're in the right place this show is you're in the right place this show is you're in the right place this show is for anyone who has money or wants more for anyone who has money or wants more for anyone who has money or wants more this is the bigger pockets money podcast this is the bigger pockets money podcast this is the bigger pockets money podcast how's it going everybody I'm Scott how's it going everybody I'm Scott how's it going everybody I'm Scott trench I'm here with my co-host Miss trench I'm here with my co-host Miss trench I'm here with my co-host Miss Minnie Jensen how're you doin today Minnie Jensen how're you doin today Minnie Jensen how're you doin today Mindy Scott I am doing fantastic I am Mindy Scott I am doing fantastic I am Mindy Scott I am doing fantastic I am super excited to listen to another Scot super excited to listen to another Scot super excited to listen to another Scot it was nice to be one third of the show it was nice to be one third of the show it was nice to be one third of the show that isn't Scott on today's episode I'm that isn't Scott on today's episode I'm that isn't Scott on today's episode I'm really excited to hear Scott's story and really excited to hear Scott's story and really excited to hear Scott's story and I'm excited to share it with everybody I'm excited to share it with everybody I'm excited to share it with everybody because as you said just a moment ago because as you said just a moment ago because as you said just a moment ago his story is so great because it isn't his story is so great because it isn't his story is so great because it isn't exceptional and that doesn't mean that exceptional and that doesn't mean that exceptional and that doesn't mean that it's boring that means that it's it's boring that means that it's it's boring that means that it's relatable it isn't some random thing relatable it isn't some random thing relatable it isn't some random thing that he like won the lottery in order to that he like won the lottery in order to that he like won the lottery in order to get to where he's at he did what get to where he's at he did what get to where he's at he did what everybody else has done stop spending so everybody else has done stop spending so everybody else has done stop spending so much money start saving more money and much money start saving more money and much money start saving more money and look you can watch your savings grow you look you can watch your savings grow you look you can watch your savings grow you can literally watch your net worth get can literally watch your net worth get can literally watch your net worth get better and better and bigger and bigger better and better and bigger and bigger better and better and bigger and bigger simply by doing these same things that simply by doing these same things that simply by doing these same things that are relatable and repeatable that Scott are relatable and repeatable that Scott are relatable and repeatable that Scott shares in this episode today yeah I love shares in this episode today yeah I love shares in this episode today yeah I love just how deep he goes into his mindset just how deep he goes into his mindset just how deep he goes into his mindset and how his you know living and how his you know living and how his you know living paycheck-to-paycheck lifestyle on on - paycheck-to-paycheck lifestyle on on - paycheck-to-paycheck lifestyle on on - you know median salaries was was you know median salaries was was you know median salaries was was frustrating for him and he felt like he frustrating for him and he felt like he frustrating for him and he felt like he wasn't getting ahead or getting out wasn't getting ahead or getting out wasn't getting ahead or getting out getting along in life and then just how getting along in life and then just how getting along in life and then just how he brings along his his how he nurtures he brings along his his how he nurtures he brings along his his how he nurtures his passion for fire once he discovers his passion for fire once he discovers his passion for fire once he discovers it and how he brings along his family it and how he brings along his family it and how he brings along his family and how they kind of you know assess all and how they kind of you know assess all and how they kind of you know assess all the option I mean it's just a fantastic the option I mean it's just a fantastic the option I mean it's just a fantastic story for anyone looking to make a story for anyone looking to make a story for anyone looking to make a change that maybe needs to get a spouse change that maybe needs to get a spouse change that maybe needs to get a spouse on board or needs to kind of weigh and on board or needs to kind of weigh and on board or needs to kind of weigh and figure out all the soft and hard costs figure out all the soft and hard costs figure out all the soft and hard costs of aggressively pursuing this thing we of aggressively pursuing this thing we of aggressively pursuing this thing we call fire yeah this is an excellent call fire yeah this is an excellent call fire yeah this is an excellent episode for anybody who episode for anybody who episode for anybody who like you said needs to bring their like you said needs to bring their like you said needs to bring their spouse on board this is a very common spouse on board this is a very common spouse on board this is a very common question that I get over and over question that I get over and over question that I get over and over through emails and in the forums on through emails and in the forums on through emails and in the forums on bigger pockets bigger pockets comm slash bigger pockets bigger pockets comm slash bigger pockets bigger pockets comm slash forums if you have a question is how do forums if you have a question is how do forums if you have a question is how do I get my spouse on board with investing I get my spouse on board with investing I get my spouse on board with investing in real estate or how do I get my spouse in real estate or how do I get my spouse in real estate or how do I get my spouse on board with pursuing the financial on board with pursuing the financial on board with pursuing the financial independence lifestyle Scott gives independence lifestyle Scott gives independence lifestyle Scott gives really great ideas and idea isn't the really great ideas and idea isn't the really great ideas and idea isn't the right word his story is a perfect way to right word his story is a perfect way to right word his story is a perfect way to introduce this to your spouse and he introduce this to your spouse and he introduce this to your spouse and he takes it and instead of framing this in takes it and instead of framing this in takes it and instead of framing this in a confrontational manner he frames it a confrontational manner he frames it a confrontational manner he frames it more as a question with his spouse what more as a question with his spouse what more as a question with his spouse what is it that you want out of life and if is it that you want out of life and if is it that you want out of life and if you're having struggles with convincing you're having struggles with convincing you're having struggles with convincing your spouse to you know even just look your spouse to you know even just look your spouse to you know even just look at this idea this episode is one that at this idea this episode is one that at this idea this episode is one that you need to listen to and one that you you need to listen to and one that you you need to listen to and one that you need to listen to with your spouse yeah need to listen to with your spouse yeah need to listen to with your spouse yeah and he's put together a what's shaping and he's put together a what's shaping and he's put together a what's shaping up to be we think is gonna be an awesome up to be we think is gonna be an awesome up to be we think is gonna be an awesome awesome documentary called playing with awesome documentary called playing with awesome documentary called playing with fire that will be released to thank to fire that will be released to thank to fire that will be released to thank to the preliminary audience a few weeks the preliminary audience a few weeks the preliminary audience a few weeks after this show our episode of the after this show our episode of the after this show our episode of the podcast year is released and then look podcast year is released and then look podcast year is released and then look for it sometime in early March it's for it sometime in early March it's for it sometime in early March it's playing with fire yeah that's gonna be a playing with fire yeah that's gonna be a playing with fire yeah that's gonna be a really awesome show I would like just really awesome show I would like just really awesome show I would like just can I point out that my husband's in can I point out that my husband's in can I point out that my husband's in there I don't know how much of the there I don't know how much of the there I don't know how much of the actual show he or actual movie he gets actual show he or actual movie he gets actual show he or actual movie he gets into but in one of the trailers that I into but in one of the trailers that I into but in one of the trailers that I saw I did see the sight of his head yeah saw I did see the sight of his head yeah saw I did see the sight of his head yeah he's he's not he's famous now he's gonna he's he's not he's famous now he's gonna he's he's not he's famous now he's gonna be famous be famous be famous Scott richens from playing with fire Scott richens from playing with fire Scott richens from playing with fire documentary welcome to the bigger documentary welcome to the bigger documentary welcome to the bigger pockets of money podcast I'm so excited pockets of money podcast I'm so excited pockets of money podcast I'm so excited to have you on the show today yeah thank to have you on the show today yeah thank to have you on the show today yeah thank you guys I'm so happy to be here I am an you guys I'm so happy to be here I am an you guys I'm so happy to be here I am an avid listener of this show and I'm not avid listener of this show and I'm not avid listener of this show and I'm not just saying that I really love your show just saying that I really love your show just saying that I really love your show and all the guests that you have on it's and all the guests that you have on it's and all the guests that you have on it's like hanging out with my friends so like hanging out with my friends so like hanging out with my friends so thank you thank you for listening okay thank you thank you for listening okay thank you thank you for listening okay we could just sit here and thank each we could just sit here and thank each we could just sit here and thank each other forever but let's not do that other forever but let's not do that other forever but let's not do that because that's not exciting for anybody because that's not exciting for anybody because that's not exciting for anybody but me well I don't you walk us through but me well I don't you walk us through but me well I don't you walk us through where your journey with money begins where your journey with money begins where your journey with money begins yeah so um I had an interesting yeah so um I had an interesting yeah so um I had an interesting upbringing I was a raise than a Navy upbringing I was a raise than a Navy upbringing I was a raise than a Navy family I'm a Navy brat and so I grew up family I'm a Navy brat and so I grew up family I'm a Navy brat and so I grew up on primarily on on military bases and on primarily on on military bases and on primarily on on military bases and what's interesting about that is what's interesting about that is what's interesting about that is everything's a little bit cheaper it you everything's a little bit cheaper it you everything's a little bit cheaper it you know the government subsidizes the Navy know the government subsidizes the Navy know the government subsidizes the Navy Exchange and the commissary which is our Exchange and the commissary which is our Exchange and the commissary which is our grocery store and the Navy exchanges our grocery store and the Navy exchanges our grocery store and the Navy exchanges our mall and and so I grew up in kind of mall and and so I grew up in kind of mall and and so I grew up in kind of exotic areas I was in Hawaii I was in exotic areas I was in Hawaii I was in exotic areas I was in Hawaii I was in Puerto Rico Puerto Rico Puerto Rico I was in Washington DC Virginia Beach I was in Washington DC Virginia Beach I was in Washington DC Virginia Beach San Diego those last couple weren't very San Diego those last couple weren't very San Diego those last couple weren't very exotic but you get the gist and exotic but you get the gist and exotic but you get the gist and sometimes like specifically in Puerto sometimes like specifically in Puerto sometimes like specifically in Puerto Rico or primarily I was in I was in my Rico or primarily I was in I was in my Rico or primarily I was in I was in my teenage years and I was really like the teenage years and I was really like the teenage years and I was really like the memory was starting to take hold and I memory was starting to take hold and I memory was starting to take hold and I was starting to notice things and you was starting to notice things and you was starting to notice things and you know apply things and that's where the know apply things and that's where the know apply things and that's where the lessons were coming in that was kind of lessons were coming in that was kind of lessons were coming in that was kind of an isolated area we didn't leave the an isolated area we didn't leave the an isolated area we didn't leave the base very often and when we did you know base very often and when we did you know base very often and when we did you know because I was young I didn't I couldn't because I was young I didn't I couldn't because I was young I didn't I couldn't drive or anything like that and so we drive or anything like that and so we drive or anything like that and so we would just kind of stay on base and and would just kind of stay on base and and would just kind of stay on base and and so that was like the beginning of me so that was like the beginning of me so that was like the beginning of me understanding money and starting to earn understanding money and starting to earn understanding money and starting to earn money I used to go off the back deck of money I used to go off the back deck of money I used to go off the back deck of our house which was on the east shore of our house which was on the east shore of our house which was on the east shore of Puerto Rico and go spearfishing for Puerto Rico and go spearfishing for Puerto Rico and go spearfishing for lobster because our neighbors would have lobster because our neighbors would have lobster because our neighbors would have a lot of people coming in to visit cuz a lot of people coming in to visit cuz a lot of people coming in to visit cuz they were they were in Puerto Rico and they were they were in Puerto Rico and they were they were in Puerto Rico and you have a place to stay and they would you have a place to stay and they would you have a place to stay and they would hit up me and say hey Scott I need four hit up me and say hey Scott I need four hit up me and say hey Scott I need four lobster tails for tomorrow's dinner and lobster tails for tomorrow's dinner and lobster tails for tomorrow's dinner and I would charge bucks a tail and I'd I would charge bucks a tail and I'd I would charge bucks a tail and I'd go out I knew all the little spots and go out I knew all the little spots and go out I knew all the little spots and I'd go snorkeling and go spearfishing I'd go snorkeling and go spearfishing I'd go snorkeling and go spearfishing for lobster so that's like how I first for lobster so that's like how I first for lobster so that's like how I first started making money so I was thinking started making money so I was thinking started making money so I was thinking about this the other day I realized that about this the other day I realized that about this the other day I realized that no wonder I've always chosen jobs that no wonder I've always chosen jobs that no wonder I've always chosen jobs that were fun because I could never go back were fun because I could never go back were fun because I could never go back from that snorkeling for money so I I from that snorkeling for money so I I from that snorkeling for money so I I set a dangerous precedent early early on set a dangerous precedent early early on set a dangerous precedent early early on but I also realized that by living on but I also realized that by living on but I also realized that by living on these military bases I had sort of a these military bases I had sort of a these military bases I had sort of a warped view of what things costs and and warped view of what things costs and and warped view of what things costs and and then from there we moved to a small town then from there we moved to a small town then from there we moved to a small town in in Iowa and again the cost of living in in Iowa and again the cost of living in in Iowa and again the cost of living was cheap and so it just like the was cheap and so it just like the was cheap and so it just like the like cost-of-living in general has has like cost-of-living in general has has like cost-of-living in general has has always been a bit warped for me and then always been a bit warped for me and then always been a bit warped for me and then I met my wife you know I got into my I met my wife you know I got into my I met my wife you know I got into my earning years I met my wife and we ended earning years I met my wife and we ended earning years I met my wife and we ended up down in San Diego and I think that up down in San Diego and I think that up down in San Diego and I think that whole upbringing and that lack of whole upbringing and that lack of whole upbringing and that lack of awareness with cost of living really awareness with cost of living really awareness with cost of living really sort of supported this lifestyle that my sort of supported this lifestyle that my sort of supported this lifestyle that my wife and I started going down and I'll wife and I started going down and I'll wife and I started going down and I'll get into why hers did the same in a get into why hers did the same in a get into why hers did the same in a different way but in my case it was different way but in my case it was different way but in my case it was let's go move wherever we want if we let's go move wherever we want if we let's go move wherever we want if we want you know we would go on vacation want you know we would go on vacation want you know we would go on vacation and we'd hang out of this place we go ah and we'd hang out of this place we go ah and we'd hang out of this place we go ah I just want to live here and then we go I just want to live here and then we go I just want to live here and then we go well why don't we well why don't we well why don't we and that's actually what brought us to and that's actually what brought us to and that's actually what brought us to San Diego was we wanted a place that had San Diego was we wanted a place that had San Diego was we wanted a place that had a healthy economy and a place where we a healthy economy and a place where we a healthy economy and a place where we could really earn good money and have could really earn good money and have could really earn good money and have opportunities but we also wanted this opportunities but we also wanted this opportunities but we also wanted this sort of vacation lifestyle and after sort of vacation lifestyle and after sort of vacation lifestyle and after doing some research we found that a doing some research we found that a doing some research we found that a little island called Coronado off the little island called Coronado off the little island called Coronado off the coast of the downtown skyscape of San coast of the downtown skyscape of San coast of the downtown skyscape of San Diego was perfect it's close to this Diego was perfect it's close to this Diego was perfect it's close to this major metropolitan city and it's still major metropolitan city and it's still major metropolitan city and it's still an island vacation home and it happened an island vacation home and it happened an island vacation home and it happened to be a place that my my dad worked way to be a place that my my dad worked way to be a place that my my dad worked way back in the day so with the Navy so it's back in the day so with the Navy so it's back in the day so with the Navy so it's kind of always been a second home so we kind of always been a second home so we kind of always been a second home so we just said sure let's do it and the just said sure let's do it and the just said sure let's do it and the reason why Taylor felt that way is reason why Taylor felt that way is reason why Taylor felt that way is because she grew up in a little bubble because she grew up in a little bubble because she grew up in a little bubble herself where she grew up on this little herself where she grew up on this little herself where she grew up on this little island community outside of Seattle and island community outside of Seattle and island community outside of Seattle and you know just never really had to pay you know just never really had to pay you know just never really had to pay attention to money she was you know they attention to money she was you know they attention to money she was you know they her family wasn't wealthy beyond belief her family wasn't wealthy beyond belief her family wasn't wealthy beyond belief or anything they got there really early or anything they got there really early or anything they got there really early to this little island community when to this little island community when to this little island community when there weren't a lot of people there and there weren't a lot of people there and there weren't a lot of people there and they ate you know cans of beans to be they ate you know cans of beans to be they ate you know cans of beans to be able to afford this little lake home able to afford this little lake home able to afford this little lake home that's what they tell us anyway but she that's what they tell us anyway but she that's what they tell us anyway but she never was it was in want of anything and never was it was in want of anything and never was it was in want of anything and I think between the two of us we both I think between the two of us we both I think between the two of us we both came to this head of let's just do what came to this head of let's just do what came to this head of let's just do what we want well it'll work out you know and we want well it'll work out you know and we want well it'll work out you know and that's what got us to San Diego so that's what got us to San Diego so that's what got us to San Diego so fast-forward six years we moved here at fast-forward six years we moved here at fast-forward six years we moved here at the very bottom of the market in the very bottom of the market in the very bottom of the market in - when everything was kind of at - when everything was kind of at - when everything was kind of at its bottom as far as real estate goes its bottom as far as real estate goes its bottom as far as real estate goes and rent had taken that huge hit and it and rent had taken that huge hit and it and rent had taken that huge hit and it was starting to you know it was just at was starting to you know it was just at was starting to you know it was just at the bottom and so cost-of-living when we the bottom and so cost-of-living when we the bottom and so cost-of-living when we got here wasn't insane yet but fast got here wasn't insane yet but fast got here wasn't insane yet but fast forward six years and this city has forward six years and this city has forward six years and this city has absolutely exploded you know we've come absolutely exploded you know we've come absolutely exploded you know we've come out of that recession and the the out of that recession and the the out of that recession and the the lifestyle creep had continued the cost lifestyle creep had continued the cost lifestyle creep had continued the cost of living was increasing and I was of living was increasing and I was of living was increasing and I was getting I had up until that point always getting I had up until that point always getting I had up until that point always brushed aside the idea of personal brushed aside the idea of personal brushed aside the idea of personal finance or learning about investments as finance or learning about investments as finance or learning about investments as that's a whole master's degree in and of that's a whole master's degree in and of that's a whole master's degree in and of itself there's a bajillion books out itself there's a bajillion books out itself there's a bajillion books out there about it I don't know which one to there about it I don't know which one to there about it I don't know which one to read I tried Rich Dad Poor Dad I didn't read I tried Rich Dad Poor Dad I didn't read I tried Rich Dad Poor Dad I didn't seem to get too much out of that and and seem to get too much out of that and and seem to get too much out of that and and I just I felt like I basically was I just I felt like I basically was I just I felt like I basically was making big excuses on on not investing making big excuses on on not investing making big excuses on on not investing my time into fixing this problem that I my time into fixing this problem that I my time into fixing this problem that I was feeling and am seeing but really was feeling and am seeing but really was feeling and am seeing but really feeling which was we're never really feeling which was we're never really feeling which was we're never really getting ahead and so my money journey up getting ahead and so my money journey up getting ahead and so my money journey up to reaching the point where I learned to reaching the point where I learned to reaching the point where I learned about Phi I think I've covered that about Phi I think I've covered that about Phi I think I've covered that pretty well and I was driving to work pretty well and I was driving to work pretty well and I was driving to work one day still feeling that stress and one day still feeling that stress and one day still feeling that stress and anxiety and lack of knowledge which anxiety and lack of knowledge which anxiety and lack of knowledge which turned into like guilt and like you know turned into like guilt and like you know turned into like guilt and like you know self-loathing and all kinds of self-loathing and all kinds of self-loathing and all kinds of interesting terrible things and I was interesting terrible things and I was interesting terrible things and I was listening to a Tim Ferriss podcast listening to a Tim Ferriss podcast listening to a Tim Ferriss podcast because I was hooked on podcasts that because I was hooked on podcasts that because I was hooked on podcasts that we're talking about startup culture or we're talking about startup culture or we're talking about startup culture or how to accelerate or optimize because I how to accelerate or optimize because I how to accelerate or optimize because I was trying to come up with a million was trying to come up with a million was trying to come up with a million dollar idea as my way of fixing this dollar idea as my way of fixing this dollar idea as my way of fixing this issue instead of looking at our savings issue instead of looking at our savings issue instead of looking at our savings rates I was looking at how much more I rates I was looking at how much more I rates I was looking at how much more I could earn to fix the problem and I was could earn to fix the problem and I was could earn to fix the problem and I was driving to work and I and I heard mister driving to work and I and I heard mister driving to work and I and I heard mister money mustache come on the Tim Ferriss money mustache come on the Tim Ferriss money mustache come on the Tim Ferriss podcast and it's about a minute drive podcast and it's about a minute drive podcast and it's about a minute drive to work and about minutes in the to work and about minutes in the to work and about minutes in the podcast I pulled over found an excuse to podcast I pulled over found an excuse to podcast I pulled over found an excuse to be late to work and listen to the whole be late to work and listen to the whole be late to work and listen to the whole thing thing thing and that's where I found five so that's and that's where I found five so that's and that's where I found five so that's awesome awesome awesome that's a great podcast everyone should that's a great podcast everyone should that's a great podcast everyone should go check out it's Tim Ferriss that mr. go check out it's Tim Ferriss that mr. go check out it's Tim Ferriss that mr. buddy mustache but then I'm going back a buddy mustache but then I'm going back a buddy mustache but then I'm going back a second can you give us a little bit of a second can you give us a little bit of a second can you give us a little bit of a picture about the nuts and bolts of your picture about the nuts and bolts of your picture about the nuts and bolts of your financial situation as the over the six financial situation as the over the six financial situation as the over the six year period you were you earning a year period you were you earning a year period you were you earning a relatively high income a relatively low relatively high income a relatively low relatively high income a relatively low income or you accumulating did you income or you accumulating did you income or you accumulating did you accumulate consumer debt what did that accumulate consumer debt what did that accumulate consumer debt what did that kind of look like yeah so we my wife and kind of look like yeah so we my wife and kind of look like yeah so we my wife and I never accumulated consumer debt we I never accumulated consumer debt we I never accumulated consumer debt we were very very fortunate our parents had were very very fortunate our parents had were very very fortunate our parents had instilled one very important rule into instilled one very important rule into instilled one very important rule into our brains which wasn't always be able our brains which wasn't always be able our brains which wasn't always be able to pay off your credit card use them to pay off your credit card use them to pay off your credit card use them sparingly and and don't get into that sparingly and and don't get into that sparingly and and don't get into that kind of trouble kind of trouble kind of trouble but I did have a student loan debt but I did have a student loan debt but I did have a student loan debt Taylor had a little bit when I met her Taylor had a little bit when I met her Taylor had a little bit when I met her but she paid off pretty quickly she had but she paid off pretty quickly she had but she paid off pretty quickly she had some scholarships and did really well on some scholarships and did really well on some scholarships and did really well on paying those down and was she's very paying those down and was she's very paying those down and was she's very she's very astute at those types of she's very astute at those types of she's very astute at those types of things just you know generally keeping things just you know generally keeping things just you know generally keeping the house in order and for me I had the house in order and for me I had the house in order and for me I had racked up quite a bit more student loans racked up quite a bit more student loans racked up quite a bit more student loans because I didn't have the scholarship so because I didn't have the scholarship so because I didn't have the scholarship so I had about thirty I think I'd about I had about thirty I think I'd about I had about thirty I think I'd about thirty six thousand dollars and student thirty six thousand dollars and student thirty six thousand dollars and student loans coming out of college and up till loans coming out of college and up till loans coming out of college and up till about two years ago I was still paying about two years ago I was still paying about two years ago I was still paying those down because I only paid the those down because I only paid the those down because I only paid the minimums the entire lifespan of that minimums the entire lifespan of that minimums the entire lifespan of that loan and still the last payment and so loan and still the last payment and so loan and still the last payment and so and so that was sort of like between and so that was sort of like between and so that was sort of like between that car loans or lease payments and we that car loans or lease payments and we that car loans or lease payments and we never had a mortgage so it was just car never had a mortgage so it was just car never had a mortgage so it was just car loans student loans and then like a loans student loans and then like a loans student loans and then like a perpetual credit card monthly payment perpetual credit card monthly payment perpetual credit card monthly payment that was our debt story so we were very that was our debt story so we were very that was our debt story so we were very fortunate on that front fortunate on that front fortunate on that front we never got ourselves into any we never got ourselves into any we never got ourselves into any significant debt to have to crawl out of significant debt to have to crawl out of significant debt to have to crawl out of that said we were always living that said we were always living that said we were always living primarily paycheck to paycheck we did a primarily paycheck to paycheck we did a primarily paycheck to paycheck we did a couple of set it and forget it things couple of set it and forget it things couple of set it and forget it things really early on where we we knew that really early on where we we knew that really early on where we we knew that ks or something you should do that ks or something you should do that ks or something you should do that was the extent of our knowledge you was the extent of our knowledge you was the extent of our knowledge you should do that okay did you know that no should do that okay did you know that no should do that okay did you know that no we did that and we would set that up so we did that and we would set that up so we did that and we would set that up so that that was something that we were that that was something that we were that that was something that we were growing our net worth to some extent growing our net worth to some extent growing our net worth to some extent early on from the start of our careers early on from the start of our careers early on from the start of our careers and I think in the last five years or so and I think in the last five years or so and I think in the last five years or so before finding five we had opened Roth before finding five we had opened Roth before finding five we had opened Roth IRAs and started to try IRAs and started to try IRAs and started to try maxes out when we had the money too maxes out when we had the money too maxes out when we had the money too which was rare I think one year we did which was rare I think one year we did which was rare I think one year we did and and so you know yes we were and and so you know yes we were and and so you know yes we were definitely starting to fund our definitely starting to fund our definitely starting to fund our retirement accounts lightly but other retirement accounts lightly but other retirement accounts lightly but other than that we were living paycheck to than that we were living paycheck to than that we were living paycheck to paycheck so we were finding ways to paycheck so we were finding ways to paycheck so we were finding ways to spend the rest of our money in lavish spend the rest of our money in lavish spend the rest of our money in lavish and exciting ways for a good solid and exciting ways for a good solid and exciting ways for a good solid decade together well and it's always decade together well and it's always decade together well and it's always easy to find a way to spend that money I easy to find a way to spend that money I easy to find a way to spend that money I mean there's always something you could mean there's always something you could mean there's always something you could buy so what was your income do you do buy so what was your income do you do buy so what was your income do you do you remember what your actual income was you remember what your actual income was you remember what your actual income was what was your savings rate you said that what was your savings rate you said that what was your savings rate you said that you knew the K was something you you knew the K was something you you knew the K was something you should do were you doing the bare should do were you doing the bare should do were you doing the bare minimum to get the company match or not minimum to get the company match or not minimum to get the company match or not even that or you were funding it even that or you were funding it even that or you were funding it completely yeah so my wife was funding completely yeah so my wife was funding completely yeah so my wife was funding her K to the max because there was a her K to the max because there was a her K to the max because there was a company match and I I have never company match and I I have never company match and I I have never actually had the ability to do a K actually had the ability to do a K actually had the ability to do a K so it was always tailored doing the so it was always tailored doing the so it was always tailored doing the K cuz I've been an entrepreneur K cuz I've been an entrepreneur K cuz I've been an entrepreneur entrepreneur for about eight years and entrepreneur for about eight years and entrepreneur for about eight years and and when I found Phi at about six years and when I found Phi at about six years and when I found Phi at about six years and so I never set up a solo k or us and so I never set up a solo k or us and so I never set up a solo k or us IRA or any of those options and so yeah IRA or any of those options and so yeah IRA or any of those options and so yeah so she would always fund those and I so she would always fund those and I so she would always fund those and I know I know the numbers in we made know I know the numbers in we made know I know the numbers in we made a combined a hundred and forty two a combined a hundred and forty two a combined a hundred and forty two thousand dollars thousand dollars thousand dollars and we spent a hundred and thirty two and we spent a hundred and thirty two and we spent a hundred and thirty two thousand of that and that does include thousand of that and that does include thousand of that and that does include us putting money into that K but us putting money into that K but us putting money into that K but that worked out I believe to about an that worked out I believe to about an that worked out I believe to about an eight percent savings rate and that was eight percent savings rate and that was eight percent savings rate and that was a good year you know that was like that a good year you know that was like that a good year you know that was like that was a fantastic - was like our peak was a fantastic - was like our peak was a fantastic - was like our peak earning years I made twenty eight earning years I made twenty eight earning years I made twenty eight thousand dollars a year I think my wife thousand dollars a year I think my wife thousand dollars a year I think my wife was a little bit higher than that and was a little bit higher than that and was a little bit higher than that and then we progressively stepped up you then we progressively stepped up you then we progressively stepped up you know over the years you know we would we know over the years you know we would we know over the years you know we would we would move around and figure something would move around and figure something would move around and figure something out or get a promotion or whatever and out or get a promotion or whatever and out or get a promotion or whatever and so we were always we were always growing so we were always we were always growing so we were always we were always growing our earning potential but yeah so it our earning potential but yeah so it our earning potential but yeah so it accumulated to about and so so accumulated to about and so so accumulated to about and so so you you're you're in this position what you you're you're in this position what you you're you're in this position what you know you and you discover you know you and you discover you know you and you discover this mister money mustache podcast with this mister money mustache podcast with this mister money mustache podcast with Tim Ferriss what is it about that Tim Ferriss what is it about that Tim Ferriss what is it about that situation that was so revealing to you situation that was so revealing to you situation that was so revealing to you or i opening you know this that you're or i opening you know this that you're or i opening you know this that you're saying that this life your you were saying that this life your you were saying that this life your you were feeling like you were getting stuck or feeling like you were getting stuck or feeling like you were getting stuck or not going anywhere in your life i don't not going anywhere in your life i don't not going anywhere in your life i don't know i'll let you take it from there you know i'll let you take it from there you know i'll let you take it from there you gotta get what I'm asking I think I do I gotta get what I'm asking I think I do I gotta get what I'm asking I think I do I think I do and that that's gonna put a think I do and that that's gonna put a think I do and that that's gonna put a nice bow on this so you know if you hear nice bow on this so you know if you hear nice bow on this so you know if you hear that story you hear well Scott you that story you hear well Scott you that story you hear well Scott you didn't get into incredible consumer debt didn't get into incredible consumer debt didn't get into incredible consumer debt and you guys did save eight percent in and you guys did save eight percent in and you guys did save eight percent in like these aren't terrible like these aren't terrible like these aren't terrible situations but what was happening was situations but what was happening was situations but what was happening was this it was this constant force of this it was this constant force of this it was this constant force of opposition where you know the kind of opposition where you know the kind of opposition where you know the kind of the dark side it was like you know the the dark side it was like you know the the dark side it was like you know the Death Star was always just looming in Death Star was always just looming in Death Star was always just looming in the background where the cost of living the background where the cost of living the background where the cost of living was continuing to rise around here and was continuing to rise around here and was continuing to rise around here and we had talked about never having a we had talked about never having a we had talked about never having a mortgage a little earlier San Diego the mortgage a little earlier San Diego the mortgage a little earlier San Diego the real estate prices here of just real estate prices here of just real estate prices here of just completely skyrocketed to astronomical completely skyrocketed to astronomical completely skyrocketed to astronomical numbers and you know there are still numbers and you know there are still numbers and you know there are still areas where you know there are homes in areas where you know there are homes in areas where you know there are homes in the five six hundred thousand range but the five six hundred thousand range but the five six hundred thousand range but typically those areas are you know not typically those areas are you know not typically those areas are you know not the nicest neighborhoods and in in the nicest neighborhoods and in in the nicest neighborhoods and in in late we had our first child and so late we had our first child and so late we had our first child and so that was becoming increasingly important that was becoming increasingly important that was becoming increasingly important to myself and my wife that you know that to myself and my wife that you know that to myself and my wife that you know that we live in a neighborhood that feels we live in a neighborhood that feels we live in a neighborhood that feels safe and we you know we've got school safe and we you know we've got school safe and we you know we've got school coming up and you know on the horizon we coming up and you know on the horizon we coming up and you know on the horizon we needed a we would like to have the idea needed a we would like to have the idea needed a we would like to have the idea of having a solid public school system of having a solid public school system of having a solid public school system because if you go private here because if you go private here because if you go private here that's another salary we'd have to go that's another salary we'd have to go that's another salary we'd have to go find and and so this is what I'm saying find and and so this is what I'm saying find and and so this is what I'm saying is that it wasn't so much that we were is that it wasn't so much that we were is that it wasn't so much that we were in these dire straits and then I found in these dire straits and then I found in these dire straits and then I found this you know this thing that just this you know this thing that just this you know this thing that just became this huge epiphany and then I you became this huge epiphany and then I you became this huge epiphany and then I you know took a hard and yet it was know took a hard and yet it was know took a hard and yet it was because we were looking out into the because we were looking out into the because we were looking out into the distance and I was saying this isn't distance and I was saying this isn't distance and I was saying this isn't sustainable we're living an sustainable we're living an sustainable we're living an unsustainable lifestyle the only way unsustainable lifestyle the only way unsustainable lifestyle the only way that this gets better is a fire and that this gets better is a fire and that this gets better is a fire and significantly more and for me the reason significantly more and for me the reason significantly more and for me the reason why I pulled over to Sally Road is why I pulled over to Sally Road is why I pulled over to Sally Road is because I feel like I had any more to because I feel like I had any more to because I feel like I had any more to give I felt like every day I was getting give I felt like every day I was getting give I felt like every day I was getting up I was going straight to star up I was going straight to star up I was going straight to star bucks and picking up you know bucks and picking up you know bucks and picking up you know high-octane grande cold brew and a high-octane grande cold brew and a high-octane grande cold brew and a sandwich so that by the time I got to sandwich so that by the time I got to sandwich so that by the time I got to work I was already fueled up and ready work I was already fueled up and ready work I was already fueled up and ready to go so that I could get a solid eight to go so that I could get a solid eight to go so that I could get a solid eight hours in before I headed home hours in before I headed home hours in before I headed home and by the way work had cold brew on tap and by the way work had cold brew on tap and by the way work had cold brew on tap which I continued to sip through the day which I continued to sip through the day which I continued to sip through the day and so I was just you know constantly and so I was just you know constantly and so I was just you know constantly wired to try to just you know do is do wired to try to just you know do is do wired to try to just you know do is do the best job that I possibly could and the best job that I possibly could and the best job that I possibly could and then get home and and hopefully have a then get home and and hopefully have a then get home and and hopefully have a couple hours max with you know my new couple hours max with you know my new couple hours max with you know my new baby my wife our friends all the things baby my wife our friends all the things baby my wife our friends all the things that you know you try to fit in and then that you know you try to fit in and then that you know you try to fit in and then it's you know rinse and repeat and oh it's you know rinse and repeat and oh it's you know rinse and repeat and oh man and then you know by the time you man and then you know by the time you man and then you know by the time you get to the weekend you you don't feel get to the weekend you you don't feel get to the weekend you you don't feel like doing anything and so for me when I like doing anything and so for me when I like doing anything and so for me when I was hearing his depiction of his own was hearing his depiction of his own was hearing his depiction of his own life where he's casually getting up and life where he's casually getting up and life where he's casually getting up and hanging out maybe he's you know going hanging out maybe he's you know going hanging out maybe he's you know going and doing this or that and like hanging and doing this or that and like hanging and doing this or that and like hanging out with friends a lot of community out with friends a lot of community out with friends a lot of community involved in his conversation and I involved in his conversation and I involved in his conversation and I thought man that is what I'm looking for thought man that is what I'm looking for thought man that is what I'm looking for I miss the days when somebody just I miss the days when somebody just I miss the days when somebody just knocked on the door to see if you were knocked on the door to see if you were knocked on the door to see if you were at home they'd know that wasn't at home they'd know that wasn't at home they'd know that wasn't happening where we where we are it's a happening where we where we are it's a happening where we where we are it's a big city and everybody's so busy and big city and everybody's so busy and big city and everybody's so busy and we're we were so busy that we weren't we're we were so busy that we weren't we're we were so busy that we weren't inviting that that sort of community in inviting that that sort of community in inviting that that sort of community in and so I think in some ways I had felt and so I think in some ways I had felt and so I think in some ways I had felt like that sort of childish wonder and like that sort of childish wonder and like that sort of childish wonder and that that childish optimism that we that that that childish optimism that we that that that childish optimism that we that I think we a lot of us start out with I I think we a lot of us start out with I I think we a lot of us start out with I felt like that had solely been chipped felt like that had solely been chipped felt like that had solely been chipped away at you know with all these away at you know with all these away at you know with all these obligations and burdens and this obligations and burdens and this obligations and burdens and this nine-to-five thing and it's not that I nine-to-five thing and it's not that I nine-to-five thing and it's not that I don't like to work I love working and I don't like to work I love working and I don't like to work I love working and I love the creative process and I actually love the creative process and I actually love the creative process and I actually really liked my job it was just the the really liked my job it was just the the really liked my job it was just the the earning that I had to do to you know to earning that I had to do to you know to earning that I had to do to you know to meet the demands of our lifestyle that I meet the demands of our lifestyle that I meet the demands of our lifestyle that I wasn't even sure I liked you know cuz I wasn't even sure I liked you know cuz I wasn't even sure I liked you know cuz I just never felt right and so that's just never felt right and so that's just never felt right and so that's where that's where the epiphanies are where that's where the epiphanies are where that's where the epiphanies are happening for me it was really less happening for me it was really less happening for me it was really less about the numbers more about the emotion about the numbers more about the emotion about the numbers more about the emotion of it yeah it sounds it sounds also that of it yeah it sounds it sounds also that of it yeah it sounds it sounds also that like when you could talk use the word like when you could talk use the word like when you could talk use the word unsustainable as one of the key words unsustainable as one of the key words unsustainable as one of the key words that kind of picked up on or how you that kind of picked up on or how you that kind of picked up on or how you were feeling about your life and it were feeling about your life and it were feeling about your life and it seems like basically what I'm gathering seems like basically what I'm gathering seems like basically what I'm gathering is you are optimized the full extent on is you are optimized the full extent on is you are optimized the full extent on the income income side the income income side the income income side you know there wasn't really you you you know there wasn't really you you you know there wasn't really you you were already working hours a day and were already working hours a day and were already working hours a day and giving it your complete best efforts so giving it your complete best efforts so giving it your complete best efforts so it's like how do I actually earn more it's like how do I actually earn more it's like how do I actually earn more money that seems very difficult from money that seems very difficult from money that seems very difficult from where where you were where you were where where you were where you were where where you were where you were sitting and you know you're not a sitting and you know you're not a sitting and you know you're not a business owner you know it sounds like business owner you know it sounds like business owner you know it sounds like at the time so how do you earn way more at the time so how do you earn way more at the time so how do you earn way more money I don't know you know that but money I don't know you know that but money I don't know you know that but that's where maybe mister money mustache that's where maybe mister money mustache that's where maybe mister money mustache kind of came in and said you know hey kind of came in and said you know hey kind of came in and said you know hey here's a part of your piece of the here's a part of your piece of the here's a part of your piece of the puzzles of the financial equation that puzzles of the financial equation that puzzles of the financial equation that is under completely under your control is under completely under your control is under completely under your control that you can kind of go after fix yeah I that you can kind of go after fix yeah I that you can kind of go after fix yeah I suddenly realized that that savings rate suddenly realized that that savings rate suddenly realized that that savings rate was the million dollar idea that by by was the million dollar idea that by by was the million dollar idea that by by hitting that savings rate as hard as I hitting that savings rate as hard as I hitting that savings rate as hard as I could and and that was the one thing I could and and that was the one thing I could and and that was the one thing I could control I didn't need to listen to could control I didn't need to listen to could control I didn't need to listen to another Tim Ferriss podcast I could just another Tim Ferriss podcast I could just another Tim Ferriss podcast I could just go and dive into this whole fire go and dive into this whole fire go and dive into this whole fire lifestyle and see what they have to say lifestyle and see what they have to say lifestyle and see what they have to say about cutting our expenses and how this about cutting our expenses and how this about cutting our expenses and how this whole thing worked and how on earth are whole thing worked and how on earth are whole thing worked and how on earth are you retiring at and that was you retiring at and that was you retiring at and that was fascinating to me and so I stayed up you fascinating to me and so I stayed up you fascinating to me and so I stayed up you know till : a.m. sometimes I had to know till : a.m. sometimes I had to know till : a.m. sometimes I had to hit the cold brew a little harder but it hit the cold brew a little harder but it hit the cold brew a little harder but it was worth it you know everything was worth it you know everything was worth it you know everything everything takes effort you still have everything takes effort you still have everything takes effort you still have to work at it and so I was working at to work at it and so I was working at to work at it and so I was working at this new thing but oh my gosh I mean the this new thing but oh my gosh I mean the this new thing but oh my gosh I mean the yeah the floodgates opened it was like yeah the floodgates opened it was like yeah the floodgates opened it was like III was so excited and and yeah so that III was so excited and and yeah so that III was so excited and and yeah so that was the beginning of our of our personal was the beginning of our of our personal was the beginning of our of our personal finance journey our money story really finance journey our money story really finance journey our money story really was was hearing that podcast and then was was hearing that podcast and then was was hearing that podcast and then immediately diving in and then you know immediately diving in and then you know immediately diving in and then you know I really respond to Pete's writing I get I really respond to Pete's writing I get I really respond to Pete's writing I get his sort of his jokey sort of irony his sort of his jokey sort of irony his sort of his jokey sort of irony style and also he's just an incredible style and also he's just an incredible style and also he's just an incredible writer and so it was really enjoyable to writer and so it was really enjoyable to writer and so it was really enjoyable to just really dive in and I felt like he just really dive in and I felt like he just really dive in and I felt like he was sort of spoon-feeding me all these was sort of spoon-feeding me all these was sort of spoon-feeding me all these things I should have been learning my things I should have been learning my things I should have been learning my whole life in nice little compact blog whole life in nice little compact blog whole life in nice little compact blog posts and I got so hooked on it that I posts and I got so hooked on it that I posts and I got so hooked on it that I was looking for other material that he was looking for other material that he was looking for other material that he was you know participating in as a as a was you know participating in as a as a was you know participating in as a as a video producer and a content producer I video producer and a content producer I video producer and a content producer I you know I explore all kinds of mediums you know I explore all kinds of mediums you know I explore all kinds of mediums so it was podcasts it was blogs it was so it was podcasts it was blogs it was so it was podcasts it was blogs it was you know what's on YouTube and I was you know what's on YouTube and I was you know what's on YouTube and I was finding these little bits and pieces but finding these little bits and pieces but finding these little bits and pieces but yeah and that and that led me to you yeah and that and that led me to you yeah and that and that led me to you know know know Brandon over the mad scientist and Paula Brandon over the mad scientist and Paula Brandon over the mad scientist and Paula pant and all these amazing people within pant and all these amazing people within pant and all these amazing people within the fire community and then he's you the fire community and then he's you the fire community and then he's you know giving suggestions on books and I know giving suggestions on books and I know giving suggestions on books and I don't think I had read a book for five don't think I had read a book for five don't think I had read a book for five years and then all sudden I'm reading years and then all sudden I'm reading years and then all sudden I'm reading you know JL calls a simple path to you know JL calls a simple path to you know JL calls a simple path to wealth and breezing through it because wealth and breezing through it because wealth and breezing through it because it's such an easy read and thinking well it's such an easy read and thinking well it's such an easy read and thinking well that's the only investment book I'm that's the only investment book I'm that's the only investment book I'm gonna need you know I'm just gonna have gonna need you know I'm just gonna have gonna need you know I'm just gonna have to go pay that forward but when I got to to go pay that forward but when I got to to go pay that forward but when I got to the youtubes and realized that there the youtubes and realized that there the youtubes and realized that there wasn't a whole lot to check out and wasn't a whole lot to check out and wasn't a whole lot to check out and going on the financial independence going on the financial independence going on the financial independence subreddit and there was actually a subreddit and there was actually a subreddit and there was actually a thread like what are some good personal thread like what are some good personal thread like what are some good personal finance documentaries and everybody's finance documentaries and everybody's finance documentaries and everybody's like there are really aren't that many like there are really aren't that many like there are really aren't that many minimalism is kind of close and I was minimalism is kind of close and I was minimalism is kind of close and I was like hmm this is what I do like hmm this is what I do like hmm this is what I do hmm this would be a really cool way to hmm this would be a really cool way to hmm this would be a really cool way to get to know these people because I'm get to know these people because I'm get to know these people because I'm sitting over here listening to all this sitting over here listening to all this sitting over here listening to all this stuff and consuming this and going I stuff and consuming this and going I stuff and consuming this and going I want to be friends with all these people want to be friends with all these people want to be friends with all these people they sound amazing how do you do that they sound amazing how do you do that they sound amazing how do you do that you know I remember the first idea I had you know I remember the first idea I had you know I remember the first idea I had was at one point in time Pete had was at one point in time Pete had was at one point in time Pete had mentioned in a blog post that he liked mentioned in a blog post that he liked mentioned in a blog post that he liked San Diego and I thought I could offer my San Diego and I thought I could offer my San Diego and I thought I could offer my place to him and I came into Taylor and place to him and I came into Taylor and place to him and I came into Taylor and I was - I was like I found this guy I was - I was like I found this guy I was - I was like I found this guy online and I think it's really cool and online and I think it's really cool and online and I think it's really cool and I was thinking maybe like we could I was thinking maybe like we could I was thinking maybe like we could invite him down and a week ago get a invite him down and a week ago get a invite him down and a week ago get a hotel locally and then you know let him hotel locally and then you know let him hotel locally and then you know let him stay in our place and she's looking at stay in our place and she's looking at stay in our place and she's looking at me like this is a terrible idea you're me like this is a terrible idea you're me like this is a terrible idea you're gonna freak him out before you start gonna freak him out before you start gonna freak him out before you start yeah you're probably right yeah you're probably right yeah you're probably right oh my gosh no maybe I'll just make a oh my gosh no maybe I'll just make a oh my gosh no maybe I'll just make a documentary about it and maybe that'll documentary about it and maybe that'll documentary about it and maybe that'll get careful what you wish for get careful what you wish for get careful what you wish for well well let's let's go let's dive into well well let's let's go let's dive into well well let's let's go let's dive into this so I mean it sounds like the spark this so I mean it sounds like the spark this so I mean it sounds like the spark the idea and you immediately dived in the idea and you immediately dived in the idea and you immediately dived in and consumed lots of content on the and consumed lots of content on the and consumed lots of content on the subject and completely immersed yourself subject and completely immersed yourself subject and completely immersed yourself in it what actions did that look like in it what actions did that look like in it what actions did that look like when it come when it comes to like when it come when it comes to like when it come when it comes to like actually taking control of your personal actually taking control of your personal actually taking control of your personal finances did you start tracking them did finances did you start tracking them did finances did you start tracking them did you start you put a spreadsheet together you start you put a spreadsheet together you start you put a spreadsheet together use mints did you make any changes in use mints did you make any changes in use mints did you make any changes in the expense side what did that look like the expense side what did that look like the expense side what did that look like yeah so for me I'm not an Excel yeah so for me I'm not an Excel yeah so for me I'm not an Excel spreadsheet guy I'm not a math guy spreadsheet guy I'm not a math guy spreadsheet guy I'm not a math guy that's not how the brain works for me that's not how the brain works for me that's not how the brain works for me you know I'm on the creative side over you know I'm on the creative side over you know I'm on the creative side over here and and so you know hitting the here and and so you know hitting the here and and so you know hitting the easy button is the best way to get easy button is the best way to get easy button is the best way to get started for me on this front so I went started for me on this front so I went started for me on this front so I went straight to men and you know I had straight to men and you know I had straight to men and you know I had already been feeling already been feeling already been feeling this for years so I had a mint account this for years so I had a mint account this for years so I had a mint account set up but it did me no good because I set up but it did me no good because I set up but it did me no good because I never had a long-term goal associated never had a long-term goal associated never had a long-term goal associated with why we were creating what we with why we were creating what we with why we were creating what we considered at the time pure and utter considered at the time pure and utter considered at the time pure and utter deprivation what do you mean I can't go deprivation what do you mean I can't go deprivation what do you mean I can't go to sushi dinner what do you what are you to sushi dinner what do you what are you to sushi dinner what do you what are you talking about what do you mean we can't talking about what do you mean we can't talking about what do you mean we can't go you know to this vacation now let's go you know to this vacation now let's go you know to this vacation now let's just keep doing that we'll figure out just keep doing that we'll figure out just keep doing that we'll figure out another way we had this like lottery another way we had this like lottery another way we had this like lottery mentality things would work out and and mentality things would work out and and mentality things would work out and and so I I hit I went back to the easy so I I hit I went back to the easy so I I hit I went back to the easy button on mint and really just started button on mint and really just started button on mint and really just started formalizing mint a little bit I got in formalizing mint a little bit I got in formalizing mint a little bit I got in there and really made sure that the there and really made sure that the there and really made sure that the expenses were being pointed to the right expenses were being pointed to the right expenses were being pointed to the right topics or trends and I remember thinking topics or trends and I remember thinking topics or trends and I remember thinking you know this feels like a very you know this feels like a very you know this feels like a very overwhelming task how far back do you go overwhelming task how far back do you go overwhelming task how far back do you go and there's a lot of data here and I'm and there's a lot of data here and I'm and there's a lot of data here and I'm not a data guy and so I thought let let not a data guy and so I thought let let not a data guy and so I thought let let me just give it a three month comb over me just give it a three month comb over me just give it a three month comb over you know I just went through and you know I just went through and you know I just went through and filtered three months worth and I filtered three months worth and I filtered three months worth and I thought that'll give us a decent picture thought that'll give us a decent picture thought that'll give us a decent picture and that's something I recommend to and that's something I recommend to and that's something I recommend to anyone if you're just getting started is anyone if you're just getting started is anyone if you're just getting started is get on mint get hit the easy button find get on mint get hit the easy button find get on mint get hit the easy button find it find a good solid financial tracker it find a good solid financial tracker it find a good solid financial tracker like mint there's a couple others out like mint there's a couple others out like mint there's a couple others out there but I think that's one of the there but I think that's one of the there but I think that's one of the easiest and just give yourself three easiest and just give yourself three easiest and just give yourself three months you know and I'm actually doing months you know and I'm actually doing months you know and I'm actually doing this with my parents right now I'm kind this with my parents right now I'm kind this with my parents right now I'm kind of holding my mom accountable and she of holding my mom accountable and she of holding my mom accountable and she doesn't like it and it's been an doesn't like it and it's been an doesn't like it and it's been an interesting little ride but just go back interesting little ride but just go back interesting little ride but just go back three months it makes it easy and it three months it makes it easy and it three months it makes it easy and it makes it something that you'll actually makes it something that you'll actually makes it something that you'll actually do and when I got in there I saw things do and when I got in there I saw things do and when I got in there I saw things I didn't like I didn't like I didn't like and and that happens you know and so I and and that happens you know and so I and and that happens you know and so I was kind of on that journey on my own I was kind of on that journey on my own I was kind of on that journey on my own I hadn't really brought Taylor into this hadn't really brought Taylor into this hadn't really brought Taylor into this fold quite yet I had started to pass fold quite yet I had started to pass fold quite yet I had started to pass some some links to her and I would email some some links to her and I would email some some links to her and I would email her some things and I was particularly her some things and I was particularly her some things and I was particularly mister money mustache blog posts and a mister money mustache blog posts and a mister money mustache blog posts and a couple of podcasts and you know I would couple of podcasts and you know I would couple of podcasts and you know I would ask her about it kind of casually ask her about it kind of casually ask her about it kind of casually afterward and you know because I was afterward and you know because I was afterward and you know because I was nervous I was nervous to bring this nervous I was nervous to bring this nervous I was nervous to bring this stuff up to her I wasn't the only one stuff up to her I wasn't the only one stuff up to her I wasn't the only one spending money in the house and you know spending money in the house and you know spending money in the house and you know and we had had somewhat of a contentious and we had had somewhat of a contentious and we had had somewhat of a contentious relationship with money up until that relationship with money up until that relationship with money up until that point there was nothing like broken but point there was nothing like broken but point there was nothing like broken but we also weren't working on it in any way we also weren't working on it in any way we also weren't working on it in any way shape or form and shape or form and shape or form and there is definitely you know plenty of there is definitely you know plenty of there is definitely you know plenty of times where I could recall you know some times where I could recall you know some times where I could recall you know some kind of argument or fight happening not kind of argument or fight happening not kind of argument or fight happening not knowing how to process or deal with knowing how to process or deal with knowing how to process or deal with those things not even sure what my those things not even sure what my those things not even sure what my stance on the argument was and then we stance on the argument was and then we stance on the argument was and then we just kind of brush it under the rug just kind of brush it under the rug just kind of brush it under the rug because that felt a little bit better because that felt a little bit better because that felt a little bit better and we didn't want to be fighting with and we didn't want to be fighting with and we didn't want to be fighting with each other so it I had no each other so it I had no each other so it I had no incentivization to bring it up to her incentivization to bring it up to her incentivization to bring it up to her yet I wasn't prepared and I kind of I yet I wasn't prepared and I kind of I yet I wasn't prepared and I kind of I think I was lucky in that I was savvy think I was lucky in that I was savvy think I was lucky in that I was savvy enough quote you know air quotes enough quote you know air quotes enough quote you know air quotes I was savvy enough to see that up front I was savvy enough to see that up front I was savvy enough to see that up front that this was a big idea and I had it I that this was a big idea and I had it I that this was a big idea and I had it I had a feeling that this was my ticket had a feeling that this was my ticket had a feeling that this was my ticket out of here to move that was something I out of here to move that was something I out of here to move that was something I had been feeling like I'd wanted to do had been feeling like I'd wanted to do had been feeling like I'd wanted to do it for a long time so so I took it slow it for a long time so so I took it slow it for a long time so so I took it slow and so that was my first action item was and so that was my first action item was and so that was my first action item was get on meant go back three months check get on meant go back three months check get on meant go back three months check out what's going on there lick your out what's going on there lick your out what's going on there lick your wounds get over it you know like this is wounds get over it you know like this is wounds get over it you know like this is your reality did you share this your reality did you share this your reality did you share this spreadsheet or this spending tracker spreadsheet or this spending tracker spreadsheet or this spending tracker with your wife did you show her what you with your wife did you show her what you with your wife did you show her what you had been spending and hey let's go look had been spending and hey let's go look had been spending and hey let's go look at this and see yeah no I didn't I at this and see yeah no I didn't I at this and see yeah no I didn't I didn't bring that up right away um I didn't bring that up right away um I didn't bring that up right away um I like I said I was you know send her some like I said I was you know send her some like I said I was you know send her some links I was kind of you know dabbling in links I was kind of you know dabbling in links I was kind of you know dabbling in that and she wasn't really responding to that and she wasn't really responding to that and she wasn't really responding to it and so I I was just thinking how on it and so I I was just thinking how on it and so I I was just thinking how on earth am I gonna do it and I remember earth am I gonna do it and I remember earth am I gonna do it and I remember running down the boardwalk and I was running down the boardwalk and I was running down the boardwalk and I was listening to podcasts as I loved doing listening to podcasts as I loved doing listening to podcasts as I loved doing and I remember hearing on the mattify and I remember hearing on the mattify and I remember hearing on the mattify insist he was talking about the insist he was talking about the insist he was talking about the relationship with his wife and how he relationship with his wife and how he relationship with his wife and how he and Jill had gone back and forth she and Jill had gone back and forth she and Jill had gone back and forth she knew that he was into this stuff she knew that he was into this stuff she knew that he was into this stuff she wasn't really into it he never really wasn't really into it he never really wasn't really into it he never really liked demanded that she come into the liked demanded that she come into the liked demanded that she come into the fold and then she had somehow come fold and then she had somehow come fold and then she had somehow come around and she had written him a letter around and she had written him a letter around and she had written him a letter on his computer and it was this on his computer and it was this on his computer and it was this beautiful heartfelt letter about how she beautiful heartfelt letter about how she beautiful heartfelt letter about how she like suddenly had this emotional like suddenly had this emotional like suddenly had this emotional connection and an epiphany to why this connection and an epiphany to why this connection and an epiphany to why this was so important to him and she sort of was so important to him and she sort of was so important to him and she sort of was like inviting him to let her come on was like inviting him to let her come on was like inviting him to let her come on board and to start this with him and I board and to start this with him and I board and to start this with him and I remember just like oh man that was a big remember just like oh man that was a big remember just like oh man that was a big one for me I was like really into that one for me I was like really into that one for me I was like really into that episode and I loved it and I took a lot episode and I loved it and I took a lot episode and I loved it and I took a lot from that which was okay this is from that which was okay this is from that which was okay this is this is something that isn't necessarily this is something that isn't necessarily this is something that isn't necessarily immediate of immediately apparent to immediate of immediately apparent to immediate of immediately apparent to everyone which was which was actually everyone which was which was actually everyone which was which was actually something Taylor said to me later on something Taylor said to me later on something Taylor said to me later on which was like well if it's if this is which was like well if it's if this is which was like well if it's if this is so amazing like this like why isn't so amazing like this like why isn't so amazing like this like why isn't everybody doing this you know and so everybody doing this you know and so everybody doing this you know and so that that's I think that was what was that that's I think that was what was that that's I think that was what was kind of in her head so so I got really kind of in her head so so I got really kind of in her head so so I got really lucky one night I just had this idea you lucky one night I just had this idea you lucky one night I just had this idea you know let's just write down a list of know let's just write down a list of know let's just write down a list of things and make us happy and let's start things and make us happy and let's start things and make us happy and let's start with happiness I had just gotten done with happiness I had just gotten done with happiness I had just gotten done reading uh happiness is the only logical reading uh happiness is the only logical reading uh happiness is the only logical pursuit which is I think my favorite pursuit which is I think my favorite pursuit which is I think my favorite blog post by mister money mustache of blog post by mister money mustache of blog post by mister money mustache of all time and I just thought let's let's all time and I just thought let's let's all time and I just thought let's let's focus on happiness because I don't think focus on happiness because I don't think focus on happiness because I don't think my wife and I are very far off as far as my wife and I are very far off as far as my wife and I are very far off as far as what our real goals are and what what what our real goals are and what what what our real goals are and what what what our happiness list is let's start what our happiness list is let's start what our happiness list is let's start focusing on that instead of saying hey focusing on that instead of saying hey focusing on that instead of saying hey you got to stop spending money because you got to stop spending money because you got to stop spending money because that's not fun and and and here's the that's not fun and and and here's the that's not fun and and and here's the other thing other thing other thing my wife she works really really hard and my wife she works really really hard and my wife she works really really hard and and she's she's really worked hard to and she's she's really worked hard to and she's she's really worked hard to get to where she is and so to tell her get to where she is and so to tell her get to where she is and so to tell her that she can't spend money anymore it's that she can't spend money anymore it's that she can't spend money anymore it's kind of like I didn't even feel right kind of like I didn't even feel right kind of like I didn't even feel right about that like that's not I don't think about that like that's not I don't think about that like that's not I don't think that's how you should go about talking that's how you should go about talking that's how you should go about talking about money as saying like okay this is about money as saying like okay this is about money as saying like okay this is the thing we need to do let's rah-rah the thing we need to do let's rah-rah the thing we need to do let's rah-rah around this thing that we need to do and around this thing that we need to do and around this thing that we need to do and it's like well no you're telling someone it's like well no you're telling someone it's like well no you're telling someone how to live and and then you're how to live and and then you're how to live and and then you're suggesting you know that you cut back suggesting you know that you cut back suggesting you know that you cut back and cutting back isn't fun until it is and cutting back isn't fun until it is and cutting back isn't fun until it is and that's a journey to get to that and that's a journey to get to that and that's a journey to get to that point right and so luckily I was smart point right and so luckily I was smart point right and so luckily I was smart enough to say let's just write a list of enough to say let's just write a list of enough to say let's just write a list of the top things and make us happy on a the top things and make us happy on a the top things and make us happy on a weekly basis and and that's what she did weekly basis and and that's what she did weekly basis and and that's what she did she in fact I I suggested that to her she in fact I I suggested that to her she in fact I I suggested that to her and it just happened to be on an and it just happened to be on an and it just happened to be on an afternoon or an evening when we didn't afternoon or an evening when we didn't afternoon or an evening when we didn't have a lot going on I ran up and took a have a lot going on I ran up and took a have a lot going on I ran up and took a shower and it came back down and she had shower and it came back down and she had shower and it came back down and she had done the list you'd already written this done the list you'd already written this done the list you'd already written this thing and it's like oh okay that's great thing and it's like oh okay that's great thing and it's like oh okay that's great I don't even have one yet so I had I'm a I don't even have one yet so I had I'm a I don't even have one yet so I had I'm a processor you know that's a vastly processor you know that's a vastly processor you know that's a vastly humongous question so I had to like take humongous question so I had to like take humongous question so I had to like take a couple days and then you know we went a couple days and then you know we went a couple days and then you know we went to a park or something and just kind of to a park or something and just kind of to a park or something and just kind of sat down and and just kind of reviewed sat down and and just kind of reviewed sat down and and just kind of reviewed it and and so my wife's list was very it and and so my wife's list was very it and and so my wife's list was very simple it was you know have coffee simple it was you know have coffee simple it was you know have coffee with my husband and cuddle with my baby with my husband and cuddle with my baby with my husband and cuddle with my baby and read her book to go to sleep and and read her book to go to sleep and and read her book to go to sleep and have dinner with the family and I really have dinner with the family and I really have dinner with the family and I really like coffee and I really like chocolate like coffee and I really like chocolate like coffee and I really like chocolate and I really like wine and and it was and I really like wine and and it was and I really like wine and and it was like and go for walks you know so it was like and go for walks you know so it was like and go for walks you know so it was like exercise family community friends like exercise family community friends like exercise family community friends and wine and chocolate you know pretty and wine and chocolate you know pretty and wine and chocolate you know pretty much and I said look you know the only much and I said look you know the only much and I said look you know the only things that I see that make that cost things that I see that make that cost things that I see that make that cost money on this list are wine and money on this list are wine and money on this list are wine and chocolate and and I think that's really chocolate and and I think that's really chocolate and and I think that's really interesting and the other thing that's interesting and the other thing that's interesting and the other thing that's not on this list is the beach and we are not on this list is the beach and we are not on this list is the beach and we are spending an astronomical amount of money spending an astronomical amount of money spending an astronomical amount of money to live next to this beach so how to live next to this beach so how to live next to this beach so how important is it it doesn't even cut the important is it it doesn't even cut the important is it it doesn't even cut the top ten and that was the first time that top ten and that was the first time that top ten and that was the first time that I started framing what I you know what I started framing what I you know what I started framing what I you know what was what would inevitably might be my was what would inevitably might be my was what would inevitably might be my pitch to to how we would approach this pitch to to how we would approach this pitch to to how we would approach this so I love that you reframed the so I love that you reframed the so I love that you reframed the discussion and I think this is really discussion and I think this is really discussion and I think this is really important because this is a question important because this is a question important because this is a question that I get a lot in emails from people that I get a lot in emails from people that I get a lot in emails from people who are listening to the show even on who are listening to the show even on who are listening to the show even on the BiggerPockets forums how do I the BiggerPockets forums how do I the BiggerPockets forums how do I convince my spouse and sorry ladies but convince my spouse and sorry ladies but convince my spouse and sorry ladies but it is typically a man asking this it is typically a man asking this it is typically a man asking this question how do I convince my wife to question how do I convince my wife to question how do I convince my wife to come on board and I really like how you come on board and I really like how you come on board and I really like how you reframed this whole discussion from reframed this whole discussion from reframed this whole discussion from confrontational you have to stop confrontational you have to stop confrontational you have to stop spending money well who wants to hear spending money well who wants to hear spending money well who wants to hear that nobody wants to hear that they want that nobody wants to hear that they want that nobody wants to hear that they want that to be their idea and if you're that to be their idea and if you're that to be their idea and if you're telling me to stop spending money you're telling me to stop spending money you're telling me to stop spending money you're not the boss of me I'm just gonna go not the boss of me I'm just gonna go not the boss of me I'm just gonna go spend more so I really like how you spend more so I really like how you spend more so I really like how you changed it from this confrontational changed it from this confrontational changed it from this confrontational demand to more of a questioning hey what demand to more of a questioning hey what demand to more of a questioning hey what did you you know what does your ideal did you you know what does your ideal did you you know what does your ideal day look like do you you said you were day look like do you you said you were day look like do you you said you were working eight ten eleven hours a day working eight ten eleven hours a day working eight ten eleven hours a day were you working like hours a week were you working like hours a week were you working like hours a week and how much time was your wife spending and how much time was your wife spending and how much time was your wife spending at work yes something yeah I mean so we at work yes something yeah I mean so we at work yes something yeah I mean so we were both probably burning the midnight were both probably burning the midnight were both probably burning the midnight oil about that much yeah I would say I oil about that much yeah I would say I oil about that much yeah I would say I would say hours was probably an would say hours was probably an would say hours was probably an average you know and that would that average you know and that would that average you know and that would that would fluctuate quite a bit at being in would fluctuate quite a bit at being in would fluctuate quite a bit at being in video production you know you have sort video production you know you have sort video production you know you have sort of you're you're normally two five or of you're you're normally two five or of you're you're normally two five or you're kind of getting stuff prepped and you're kind of getting stuff prepped and you're kind of getting stuff prepped and you do you do you do sails and your meeting clients and your sails and your meeting clients and your sails and your meeting clients and your pitching ideas and all the stuff and pitching ideas and all the stuff and pitching ideas and all the stuff and then when you get into production itself then when you get into production itself then when you get into production itself that can you know sometimes be a one or that can you know sometimes be a one or that can you know sometimes be a one or two day blitz or two week blitz and you two day blitz or two week blitz and you two day blitz or two week blitz and you might be in town and it might be kind of might be in town and it might be kind of might be in town and it might be kind of an easy day or you might be on the road an easy day or you might be on the road an easy day or you might be on the road and you're actually putting in you know and you're actually putting in you know and you're actually putting in you know hour days you're getting the most hour days you're getting the most hour days you're getting the most out of that day going to sleep and out of that day going to sleep and out of that day going to sleep and getting right back on the train getting right back on the train getting right back on the train not to mention travel not to mention not to mention travel not to mention not to mention travel not to mention lugging around you know twelve Pelican lugging around you know twelve Pelican lugging around you know twelve Pelican cases that are pounds of piece and cases that are pounds of piece and cases that are pounds of piece and sometimes we'd be in like you know rural sometimes we'd be in like you know rural sometimes we'd be in like you know rural Alabama or something and it'd be like a Alabama or something and it'd be like a Alabama or something and it'd be like a hundred and ten degrees and humid and hundred and ten degrees and humid and hundred and ten degrees and humid and man it was it was it was it's a young man it was it was it was it's a young man it was it was it was it's a young man's game and and I was getting a man's game and and I was getting a man's game and and I was getting a little older and feeling it a bit and little older and feeling it a bit and little older and feeling it a bit and and so you know yeah I think and then and so you know yeah I think and then and so you know yeah I think and then Taylor on the other hand she's in Taylor on the other hand she's in Taylor on the other hand she's in recruit you know she's in recruiting and recruit you know she's in recruiting and recruit you know she's in recruiting and she's a commissioned sales person so it she's a commissioned sales person so it she's a commissioned sales person so it never ends right you just have to keep never ends right you just have to keep never ends right you just have to keep picking up the phone you can't you you picking up the phone you can't you you picking up the phone you can't you you can't just rest on your laurels with can't just rest on your laurels with can't just rest on your laurels with that type of job and so I think yeah we that type of job and so I think yeah we that type of job and so I think yeah we were both feeling pretty tapped on that were both feeling pretty tapped on that were both feeling pretty tapped on that front well what uh so we was on Taylor front well what uh so we was on Taylor front well what uh so we was on Taylor your wife's list what was on your list your wife's list what was on your list your wife's list what was on your list yeah so um I remember when I heard her yeah so um I remember when I heard her yeah so um I remember when I heard her list I just thought like you know like list I just thought like you know like list I just thought like you know like you know I knew I loved you but like you know I knew I loved you but like you know I knew I loved you but like this is a beautiful reminder because my this is a beautiful reminder because my this is a beautiful reminder because my list was so similar you know there was list was so similar you know there was list was so similar you know there was some you know there's some man stuff on some you know there's some man stuff on some you know there's some man stuff on it you know like going fishing and and it you know like going fishing and and it you know like going fishing and and you know playing competitive sports and you know playing competitive sports and you know playing competitive sports and you know stuff like that you know stuff like that you know stuff like that and I but I mean it was pretty much the and I but I mean it was pretty much the and I but I mean it was pretty much the same thing you know exercise family you same thing you know exercise family you same thing you know exercise family you know having having nice coffee having a know having having nice coffee having a know having having nice coffee having a couple beers like you know just real couple beers like you know just real couple beers like you know just real simple stuff and and outdoors was really simple stuff and and outdoors was really simple stuff and and outdoors was really a focus for me and so yeah so it was a focus for me and so yeah so it was a focus for me and so yeah so it was very in line and and that makes sense we very in line and and that makes sense we very in line and and that makes sense we we got together in the first place you we got together in the first place you we got together in the first place you know we we had similar interests and know we we had similar interests and know we we had similar interests and similar values and and really similar similar values and and really similar similar values and and really similar goals but we hadn't spent a lot of time goals but we hadn't spent a lot of time goals but we hadn't spent a lot of time really focusing on that stuff you know really focusing on that stuff you know really focusing on that stuff you know it's like you fall in love and then you it's like you fall in love and then you it's like you fall in love and then you get together and then kind of day to day get together and then kind of day to day get together and then kind of day to day goes by and the next thing you know it's goes by and the next thing you know it's goes by and the next thing you know it's ten years later and you have kids and ten years later and you have kids and ten years later and you have kids and you have jobs and you're trying to make you have jobs and you're trying to make you have jobs and you're trying to make it all work and it's in it all work and it's in it all work and it's in sanely hard especially with kids my sanely hard especially with kids my sanely hard especially with kids my goodness that's a whole nother ballgame goodness that's a whole nother ballgame goodness that's a whole nother ballgame you know and so we were refreshing to you know and so we were refreshing to you know and so we were refreshing to that and already feeling a bit strapped that and already feeling a bit strapped that and already feeling a bit strapped then we had add the kid and it's a whole then we had add the kid and it's a whole then we had add the kid and it's a whole nother you know just animal literally nother you know just animal literally nother you know just animal literally you've got an animal in your house what you've got an animal in your house what you've got an animal in your house what what am I gonna do this animal what was what am I gonna do this animal what was what am I gonna do this animal what was the once you kind of compared these the once you kind of compared these the once you kind of compared these lists what did what did that help you lists what did what did that help you lists what did what did that help you get on the same page with pursuing the get on the same page with pursuing the get on the same page with pursuing the goal like what did that conversation goal like what did that conversation goal like what did that conversation look like once you had it yeah it it was look like once you had it yeah it it was look like once you had it yeah it it was the beginning of our discussions with the beginning of our discussions with the beginning of our discussions with this stuff and I remember about a week this stuff and I remember about a week this stuff and I remember about a week after that discussion well in that after that discussion well in that after that discussion well in that discussion I I very candidly you know discussion I I very candidly you know discussion I I very candidly you know pointed out there at the beach isn't on pointed out there at the beach isn't on pointed out there at the beach isn't on the list I want you to strongly consider the list I want you to strongly consider the list I want you to strongly consider living around here and you know I think living around here and you know I think living around here and you know I think up until that point Taylor's idea was up until that point Taylor's idea was up until that point Taylor's idea was we're staying in Coronado we're never we're staying in Coronado we're never we're staying in Coronado we're never leaving this is my forever home and leaving this is my forever home and leaving this is my forever home and after that discussion she was open to after that discussion she was open to after that discussion she was open to you know going on Zillow and checking you know going on Zillow and checking you know going on Zillow and checking out various neighborhoods in the San out various neighborhoods in the San out various neighborhoods in the San Diego area which was a huge win for me Diego area which was a huge win for me Diego area which was a huge win for me cuz up to that point we weren't leaving cuz up to that point we weren't leaving cuz up to that point we weren't leaving we weren't leaving this island and this we weren't leaving this island and this we weren't leaving this island and this island is like getting to the point island is like getting to the point island is like getting to the point where a lot with a tear down home that where a lot with a tear down home that where a lot with a tear down home that you literally could not live in may be you literally could not live in may be you literally could not live in may be condemned is seven eight hundred nine condemned is seven eight hundred nine condemned is seven eight hundred nine hundred thousand dollars you know and hundred thousand dollars you know and hundred thousand dollars you know and that was at that time I think it's even that was at that time I think it's even that was at that time I think it's even worse now and that's and those prices worse now and that's and those prices worse now and that's and those prices are in like this one corridor where the are in like this one corridor where the are in like this one corridor where the traffic is insane every single day traffic is insane every single day traffic is insane every single day military traffic's coming on and off the military traffic's coming on and off the military traffic's coming on and off the island and like there's no quality of island and like there's no quality of island and like there's no quality of life in the in that little corridor so life in the in that little corridor so life in the in that little corridor so you know the odds of us being able to you know the odds of us being able to you know the odds of us being able to afford a place was was low and and if we afford a place was was low and and if we afford a place was was low and and if we were to afford it it would be you know were to afford it it would be you know were to afford it it would be you know it would be the money pit it would be it it would be the money pit it would be it it would be the money pit it would be it would just be like we would be working would just be like we would be working would just be like we would be working to live and so thank God that was the to live and so thank God that was the to live and so thank God that was the start of that to say okay maybe we can start of that to say okay maybe we can start of that to say okay maybe we can go off island even go across the bridge go off island even go across the bridge go off island even go across the bridge to take a look at some other stuff in to take a look at some other stuff in to take a look at some other stuff in the meantime I was trying to find the meantime I was trying to find the meantime I was trying to find material media that really I thought material media that really I thought material media that really I thought might resonate with Taylor because what might resonate with Taylor because what might resonate with Taylor because what I had sense her up to that point hadn't I had sense her up to that point hadn't I had sense her up to that point hadn't really quite hit her she didn't she really quite hit her she didn't she really quite hit her she didn't she didn't really respond to Pete's sort of didn't really respond to Pete's sort of didn't really respond to Pete's sort of abrasive jokey kind of style because she abrasive jokey kind of style because she abrasive jokey kind of style because she felt a bit judged you know she hadn't felt a bit judged you know she hadn't felt a bit judged you know she hadn't come come come through that journey that I had already through that journey that I had already through that journey that I had already and I you know and I might be a little and I you know and I might be a little and I you know and I might be a little you know I might have a little more you know I might have a little more you know I might have a little more callus on me than than she did on that callus on me than than she did on that callus on me than than she did on that front and so that just didn't resonate front and so that just didn't resonate front and so that just didn't resonate with her and I was like well why not you with her and I was like well why not you with her and I was like well why not you know it now makes sense and and a few know it now makes sense and and a few know it now makes sense and and a few others just didn't quite hit and it others just didn't quite hit and it others just didn't quite hit and it wasn't until I found it was the episode wasn't until I found it was the episode wasn't until I found it was the episode the pillars of Phi we on choose Phi with the pillars of Phi we on choose Phi with the pillars of Phi we on choose Phi with Brad Jonathan I sent that to her and she Brad Jonathan I sent that to her and she Brad Jonathan I sent that to her and she was driving up to LA for work and like was driving up to LA for work and like was driving up to LA for work and like once she got up there she sent me a once she got up there she sent me a once she got up there she sent me a whole list of notes she called me and whole list of notes she called me and whole list of notes she called me and was like I get it this is amazing I was like I get it this is amazing I was like I get it this is amazing I couldn't believe I can't believe you couldn't believe I can't believe you couldn't believe I can't believe you know that's when she said why isn't know that's when she said why isn't know that's when she said why isn't everyone doing this and I was like oh oh everyone doing this and I was like oh oh everyone doing this and I was like oh oh we got something here okay and and from we got something here okay and and from we got something here okay and and from there I you know I just we I said I sat there I you know I just we I said I sat there I you know I just we I said I sat back for about a couple weeks maybe a back for about a couple weeks maybe a back for about a couple weeks maybe a month and let her kind of go on her own month and let her kind of go on her own month and let her kind of go on her own journey I would continue to share stuff journey I would continue to share stuff journey I would continue to share stuff that I found inspirational she took a that I found inspirational she took a that I found inspirational she took a deep dive and found her own stuff her deep dive and found her own stuff her deep dive and found her own stuff her own voices and and we just we took a own voices and and we just we took a own voices and and we just we took a little pause together and I didn't want little pause together and I didn't want little pause together and I didn't want to push anything because I knew this was to push anything because I knew this was to push anything because I knew this was gonna be this was gonna be a full-on gonna be this was gonna be a full-on gonna be this was gonna be a full-on reset and and those that should not be reset and and those that should not be reset and and those that should not be approached lightly so that's yeah that's approached lightly so that's yeah that's approached lightly so that's yeah that's how we kind of got started after that how we kind of got started after that how we kind of got started after that list so how long after you asked her to list so how long after you asked her to list so how long after you asked her to make that list and she discovered the make that list and she discovered the make that list and she discovered the choose file I would say that was that was within a I would say that was that was within a I would say that was that was within a couple of weeks it was really it was couple of weeks it was really it was couple of weeks it was really it was really you know right off the bat it was really you know right off the bat it was really you know right off the bat it was like once the list happened everything like once the list happened everything like once the list happened everything started to kind of fall into place and started to kind of fall into place and started to kind of fall into place and once she heard that episode then it was once she heard that episode then it was once she heard that episode then it was okay I felt comfortable sharing mint now okay I felt comfortable sharing mint now okay I felt comfortable sharing mint now we can talk about what's really we can talk about what's really we can talk about what's really happening here and and starting to to happening here and and starting to to happening here and and starting to to share those ideas and go let's talk share those ideas and go let's talk share those ideas and go let's talk about this together can we make it work about this together can we make it work about this together can we make it work here together and then it's not me here together and then it's not me here together and then it's not me saying it doesn't work it's us coming to saying it doesn't work it's us coming to saying it doesn't work it's us coming to the realization together that it it's the realization together that it it's the realization together that it it's gonna be a hard life can be a long long gonna be a hard life can be a long long gonna be a hard life can be a long long working life to stay here and then we working life to stay here and then we working life to stay here and then we started looking outside of of Coronado started looking outside of of Coronado started looking outside of of Coronado and in other areas because you know we and in other areas because you know we and in other areas because you know we were thinking about buying a home I had were thinking about buying a home I had were thinking about buying a home I had done a lot of research on the real done a lot of research on the real done a lot of research on the real estate side estate side estate side very very interested in getting into very very interested in getting into very very interested in getting into real estate had been for many years real estate had been for many years real estate had been for many years never felt like it was it was possible never felt like it was it was possible never felt like it was it was possible now at least I felt like I was a now at least I felt like I was a now at least I felt like I was a possible because we could explore place possible because we could explore place possible because we could explore place in San Diego and now it was a very in San Diego and now it was a very in San Diego and now it was a very painful journey you know Taylor had just painful journey you know Taylor had just painful journey you know Taylor had just shoot Taylor was still breastfeeding shoot Taylor was still breastfeeding shoot Taylor was still breastfeeding which is a whole career in and of itself which is a whole career in and of itself which is a whole career in and of itself she was still working her career she was she was still working her career she was she was still working her career she was stressed and also were going around and stressed and also were going around and stressed and also were going around and looking at real estate she doesn't looking at real estate she doesn't looking at real estate she doesn't really want to leave the island yet but really want to leave the island yet but really want to leave the island yet but she likes the idea of retiring early and she likes the idea of retiring early and she likes the idea of retiring early and she ended up getting shingles oh and you she ended up getting shingles oh and you she ended up getting shingles oh and you can get that from stress that can can get that from stress that can can get that from stress that can present itself from surance sheer and present itself from surance sheer and present itself from surance sheer and utter stress so we hit a stress point utter stress so we hit a stress point utter stress so we hit a stress point that was really high really early for me that was really high really early for me that was really high really early for me that was an indication that a we needed that was an indication that a we needed that was an indication that a we needed to be more careful pull back let's stop to be more careful pull back let's stop to be more careful pull back let's stop this whole real estate hunt that's not this whole real estate hunt that's not this whole real estate hunt that's not important right now important right now important right now it was also an indication of I don't it was also an indication of I don't it was also an indication of I don't think this is working think this is working think this is working because we weren't finding things that because we weren't finding things that because we weren't finding things that we were happy with on the other side of we were happy with on the other side of we were happy with on the other side of the bridge you know because the cost of the bridge you know because the cost of the bridge you know because the cost of living here is still high the price of living here is still high the price of living here is still high the price of homes are still high and the lower the homes are still high and the lower the homes are still high and the lower the price the worse the neighborhood is as price the worse the neighborhood is as price the worse the neighborhood is as is all real estate so it was getting to is all real estate so it was getting to is all real estate so it was getting to the point I think where she was she had the point I think where she was she had the point I think where she was she had to kind of you know hit rock bottom to to kind of you know hit rock bottom to to kind of you know hit rock bottom to be open to to a new a new way of life be open to to a new a new way of life be open to to a new a new way of life and no and what we had realized was at and no and what we had realized was at and no and what we had realized was at the top three right house cars food they the top three right house cars food they the top three right house cars food they were they were the problem you know and were they were the problem you know and were they were the problem you know and we couldn't just move down the street to we couldn't just move down the street to we couldn't just move down the street to fix the house issue because we lived fix the house issue because we lived fix the house issue because we lived over here on this island we needed two over here on this island we needed two over here on this island we needed two cars and and then food prices just going cars and and then food prices just going cars and and then food prices just going to you know bonds or what would be the to you know bonds or what would be the to you know bonds or what would be the equivalent of a Safeway or a high V or equivalent of a Safeway or a high V or equivalent of a Safeway or a high V or wherever you are in in the country you wherever you are in in the country you wherever you are in in the country you know the big big supermarket was still know the big big supermarket was still know the big big supermarket was still really expensive and and we were trying really expensive and and we were trying really expensive and and we were trying to wean off of a pretty expensive to wean off of a pretty expensive to wean off of a pretty expensive restaurant habit and so those were the restaurant habit and so those were the restaurant habit and so those were the three big things so we started with food three big things so we started with food three big things so we started with food and that felt pretty easy and suddenly and that felt pretty easy and suddenly and that felt pretty easy and suddenly we had a little bit of a win okay we we had a little bit of a win okay we we had a little bit of a win okay we have stopped eating out okay have stopped eating out okay have stopped eating out okay I'm starting to make breakfast burritos I'm starting to make breakfast burritos I'm starting to make breakfast burritos in bulk and taking him to work that's in bulk and taking him to work that's in bulk and taking him to work that's saving me a ton of money because now I'm saving me a ton of money because now I'm saving me a ton of money because now I'm nuts and in six bucks a morning on a nuts and in six bucks a morning on a nuts and in six bucks a morning on a sandwich at Starbucks and and that was sandwich at Starbucks and and that was sandwich at Starbucks and and that was that was something I realized suddenly that was something I realized suddenly that was something I realized suddenly was that we needed some wins we needed was that we needed some wins we needed was that we needed some wins we needed some some validation that we could do some some validation that we could do some some validation that we could do this and that it would work and so that this and that it would work and so that this and that it would work and so that was like the beginning was okay we've was like the beginning was okay we've was like the beginning was okay we've got this under control we're actually got this under control we're actually got this under control we're actually saving us a you know six seven eight saving us a you know six seven eight saving us a you know six seven eight hundred bucks a month just by making hundred bucks a month just by making hundred bucks a month just by making these small changes that's gonna make a these small changes that's gonna make a these small changes that's gonna make a big difference because now we finally big difference because now we finally big difference because now we finally had this calculator we could put it had this calculator we could put it had this calculator we could put it through which was what's that gonna through which was what's that gonna through which was what's that gonna equate in ten years you know if we take equate in ten years you know if we take equate in ten years you know if we take that same amount of money and we invest that same amount of money and we invest that same amount of money and we invest it and then it grows what's that really it and then it grows what's that really it and then it grows what's that really mean to us we had never put money mean to us we had never put money mean to us we had never put money through that kind of a filter it had through that kind of a filter it had through that kind of a filter it had always been can we afford that thing do always been can we afford that thing do always been can we afford that thing do you have the money it's in the bank yes you have the money it's in the bank yes you have the money it's in the bank yes you can write on that was our life and you can write on that was our life and you can write on that was our life and and now it was can you afford that thing and now it was can you afford that thing and now it was can you afford that thing well it's not about what can you can well it's not about what can you can well it's not about what can you can afford it's can you afford you know can afford it's can you afford you know can afford it's can you afford you know can do you want to give up that freedom on do you want to give up that freedom on do you want to give up that freedom on the back end you know how much further the back end you know how much further the back end you know how much further away will you be from that goal that away will you be from that goal that away will you be from that goal that that really is the carrot I mean the that really is the carrot I mean the that really is the carrot I mean the thing about fire that I love the thing about fire that I love the thing about fire that I love the absolute most is the pitch there's no absolute most is the pitch there's no absolute most is the pitch there's no better pitch there's no better pitch better pitch there's no better pitch better pitch there's no better pitch it's like would you like to get rich and it's like would you like to get rich and it's like would you like to get rich and uh and gain all of your freedom back and uh and gain all of your freedom back and uh and gain all of your freedom back and be happier and less stressed yeah be happier and less stressed yeah be happier and less stressed yeah oh okay well here's the thing oh okay well here's the thing oh okay well here's the thing I don't think I don't think you can beat I don't think I don't think you can beat I don't think I don't think you can beat that so so yeah that was our first win that so so yeah that was our first win that so so yeah that was our first win and that's that's when we started and that's that's when we started and that's that's when we started looking at I think my wife started looking at I think my wife started looking at I think my wife started becoming more open to okay becoming more open to okay becoming more open to okay well if we move to a place where you well if we move to a place where you well if we move to a place where you don't need the cars and remember walking don't need the cars and remember walking don't need the cars and remember walking and exercise and stuff we're on the and exercise and stuff we're on the and exercise and stuff we're on the happiness list oh maybe we can downsize happiness list oh maybe we can downsize happiness list oh maybe we can downsize maybe we can design our life where we maybe we can design our life where we maybe we can design our life where we only need one car or at the very least only need one car or at the very least only need one car or at the very least let's get cheaper cars my wife was let's get cheaper cars my wife was let's get cheaper cars my wife was leasing a brand-new BMW I was leasing a leasing a brand-new BMW I was leasing a leasing a brand-new BMW I was leasing a brand-new Mazda which I thought was brand-new Mazda which I thought was brand-new Mazda which I thought was super frugal and awesome super frugal and awesome super frugal and awesome we were financially illiterate and we we were financially illiterate and we we were financially illiterate and we had a lot of undoing to do so what did had a lot of undoing to do so what did had a lot of undoing to do so what did that look like what was the find what that look like what was the find what that look like what was the find what wouldn't when did you actually what how wouldn't when did you actually what how wouldn't when did you actually what how did you resolve the housing and did you resolve the housing and did you resolve the housing and transportation we were we were bike transportation we were we were bike transportation we were we were bike riding to Jovi's first swim lessons and riding to Jovi's first swim lessons and riding to Jovi's first swim lessons and I had started to dabble in the idea of I had started to dabble in the idea of I had started to dabble in the idea of turning what would eventually be a move turning what would eventually be a move turning what would eventually be a move away from California all together into away from California all together into away from California all together into an adventure and I'd started to seed an adventure and I'd started to seed an adventure and I'd started to seed that idea in Taylors mind and she wasn't that idea in Taylors mind and she wasn't that idea in Taylors mind and she wasn't having it she did was a little having it she did was a little having it she did was a little interested but I kept doing it because I interested but I kept doing it because I interested but I kept doing it because I knew it at the very least the one hook knew it at the very least the one hook knew it at the very least the one hook could be adventure because she is could be adventure because she is could be adventure because she is adventurous and she likes those types of adventurous and she likes those types of adventurous and she likes those types of ideas and I kept seeding that and I just ideas and I kept seeding that and I just ideas and I kept seeding that and I just thought you know I don't know if that's thought you know I don't know if that's thought you know I don't know if that's working and we're riding their bike and working and we're riding their bike and working and we're riding their bike and it's like : in the morning in it's like : in the morning in it's like : in the morning in Coronado and sunny it's the most Coronado and sunny it's the most Coronado and sunny it's the most beautiful day we're going by the marina beautiful day we're going by the marina beautiful day we're going by the marina over to the public pool that is like the over to the public pool that is like the over to the public pool that is like the most epic public pool ever to give our most epic public pool ever to give our most epic public pool ever to give our you know to bring our daughter to her you know to bring our daughter to her you know to bring our daughter to her first swim lessons which is kind of a first swim lessons which is kind of a first swim lessons which is kind of a iconic moment in your life and I'm on a iconic moment in your life and I'm on a iconic moment in your life and I'm on a high I mean I'm on a life high and I high I mean I'm on a life high and I high I mean I'm on a life high and I thought I don't really want to leave thought I don't really want to leave thought I don't really want to leave here either this is so wonderful I just here either this is so wonderful I just here either this is so wonderful I just you know what maybe she's right maybe we you know what maybe she's right maybe we you know what maybe she's right maybe we can figure this out a different way can figure this out a different way can figure this out a different way maybe we can hit our savings rate real maybe we can hit our savings rate real maybe we can hit our savings rate real high but just know that housing is gonna high but just know that housing is gonna high but just know that housing is gonna be tough and maybe I can still find that be tough and maybe I can still find that be tough and maybe I can still find that million dollar idea for earning that million dollar idea for earning that million dollar idea for earning that this is going for my head and Taylor is this is going for my head and Taylor is this is going for my head and Taylor is in front of me she goes you know what I in front of me she goes you know what I in front of me she goes you know what I think I you know what we should do we think I you know what we should do we think I you know what we should do we should get an RV and we should just should get an RV and we should just should get an RV and we should just drive around the country and that would drive around the country and that would drive around the country and that would be really fun what I couldn't believe it be really fun what I couldn't believe it be really fun what I couldn't believe it it was like I'm almost to the point it was like I'm almost to the point it was like I'm almost to the point where I'm about to give up and then she where I'm about to give up and then she where I'm about to give up and then she comes a comes through oh my god so that comes a comes through oh my god so that comes a comes through oh my god so that afternoon I am NOT making this up there afternoon I am NOT making this up there afternoon I am NOT making this up there was an RV show at Qualcomm Stadium where was an RV show at Qualcomm Stadium where was an RV show at Qualcomm Stadium where the shark is used to play in the parking the shark is used to play in the parking the shark is used to play in the parking lot and I said great let's go have some lot and I said great let's go have some lot and I said great let's go have some fun fun fun so we went and we looked at we shopped so we went and we looked at we shopped so we went and we looked at we shopped RVs and stuff and I'm on this huge high RVs and stuff and I'm on this huge high RVs and stuff and I'm on this huge high and well pretty pretty soon we realized and well pretty pretty soon we realized and well pretty pretty soon we realized we didn't want to live with a toddler in we didn't want to live with a toddler in we didn't want to live with a toddler in an hour an hour an hour and that would be a bad idea but that and that would be a bad idea but that and that would be a bad idea but that opened up the first spreadsheet I ever opened up the first spreadsheet I ever opened up the first spreadsheet I ever created was I created a budget for six created was I created a budget for six created was I created a budget for six months to go around the country and and months to go around the country and and months to go around the country and and and to check out these various cities and to check out these various cities and to check out these various cities that I had already done a ton of that I had already done a ton of that I had already done a ton of research on that had lower cost of research on that had lower cost of research on that had lower cost of living and all these different tax living and all these different tax living and all these different tax structures and and all on the west coast structures and and all on the west coast structures and and all on the west coast with their you know with a sizable with their you know with a sizable with their you know with a sizable airport next to it and a good population airport next to it and a good population airport next to it and a good population all these things I wanted I thought oh I all these things I wanted I thought oh I all these things I wanted I thought oh I it's finally time to learn a little it's finally time to learn a little it's finally time to learn a little spreadsheet and I did that and I got in spreadsheet and I did that and I got in spreadsheet and I did that and I got in there I got my hands dirty and I created there I got my hands dirty and I created there I got my hands dirty and I created a budget with the RV and without the RV a budget with the RV and without the RV a budget with the RV and without the RV and it actually worked out to be fairly and it actually worked out to be fairly and it actually worked out to be fairly similar if we could get decent rent similar if we could get decent rent similar if we could get decent rent prices and just drive ourselves or fly prices and just drive ourselves or fly prices and just drive ourselves or fly ourselves it wasn't that much of a cost ourselves it wasn't that much of a cost ourselves it wasn't that much of a cost savings that you know in your head you savings that you know in your head you savings that you know in your head you think oh if you get narvi and travel think oh if you get narvi and travel think oh if you get narvi and travel around in it then you're you know you're around in it then you're you know you're around in it then you're you know you're avoiding rent but it didn't really shake avoiding rent but it didn't really shake avoiding rent but it didn't really shake out to be that and I I think the the out to be that and I I think the the out to be that and I I think the the happiness factor was also something to happiness factor was also something to happiness factor was also something to be very aware of is living in an RV with be very aware of is living in an RV with be very aware of is living in an RV with a toddler may not that might be able to a toddler may not that might be able to a toddler may not that might be able to extreme when you're already trying to extreme when you're already trying to extreme when you're already trying to shift your life around completely living shift your life around completely living shift your life around completely living in an RV sounds great when you're not in an RV sounds great when you're not in an RV sounds great when you're not living in an RV my parents live in an RV living in an RV my parents live in an RV living in an RV my parents live in an RV and it's real small when there's more and it's real small when there's more and it's real small when there's more than zero people inside and I know that than zero people inside and I know that than zero people inside and I know that I'm gonna get a ton of emails from I'm gonna get a ton of emails from I'm gonna get a ton of emails from people I love it and I've you know I people I love it and I've you know I people I love it and I've you know I think it's awesome think it's awesome think it's awesome good for you I'm not moving in with you good for you I'm not moving in with you good for you I'm not moving in with you but you know what if you want to live in but you know what if you want to live in but you know what if you want to live in an RV and that's what you want to do an RV and that's what you want to do an RV and that's what you want to do that's that's what makes personal that's that's what makes personal that's that's what makes personal finance so awesome it's personal I am finance so awesome it's personal I am finance so awesome it's personal I am NOT ever gonna live in an RV but you NOT ever gonna live in an RV but you NOT ever gonna live in an RV but you know I can see the appeal know I can see the appeal know I can see the appeal you keep saying here on the island do you keep saying here on the island do you keep saying here on the island do you still live there where do you look you still live there where do you look you still live there where do you look now now now no I so so I had that list and I showed no I so so I had that list and I showed no I so so I had that list and I showed it tailored this budget and I realized it tailored this budget and I realized it tailored this budget and I realized with that budget I actually put it with that budget I actually put it with that budget I actually put it against our current spending and I had against our current spending and I had against our current spending and I had never done that I hadn't even like set never done that I hadn't even like set never done that I hadn't even like set up like oh I just knew that we if we up like oh I just knew that we if we up like oh I just knew that we if we lived in a different place that we would lived in a different place that we would lived in a different place that we would save money I hadn't actually done the save money I hadn't actually done the save money I hadn't actually done the numbers on what kind of impact it could numbers on what kind of impact it could numbers on what kind of impact it could make and bye-bye hurt turning around and make and bye-bye hurt turning around and make and bye-bye hurt turning around and saying maybe an RV and I I fell off my saying maybe an RV and I I fell off my saying maybe an RV and I I fell off my bike and and bike and and bike and and and then going through that having that and then going through that having that and then going through that having that budget I suddenly realized if we go on budget I suddenly realized if we go on budget I suddenly realized if we go on an adventure for a year and I quit my an adventure for a year and I quit my an adventure for a year and I quit my job okay and I can freelance as I know a job okay and I can freelance as I know a job okay and I can freelance as I know a lot of people in this industry and I lot of people in this industry and I lot of people in this industry and I could pick up an odd job here and there could pick up an odd job here and there could pick up an odd job here and there and you can continue to work because and you can continue to work because and you can continue to work because Taylor does work remote and we always Taylor does work remote and we always Taylor does work remote and we always knew we had that option if we did this knew we had that option if we did this knew we had that option if we did this we would save I think it was something we would save I think it was something we would save I think it was something like sixty thousand dollars over the like sixty thousand dollars over the like sixty thousand dollars over the course of a year and then I started course of a year and then I started course of a year and then I started plugging that into the retirement plugging that into the retirement plugging that into the retirement calculator and that's without it that's calculator and that's without it that's calculator and that's without it that's like me freelancing that me that was me like me freelancing that me that was me like me freelancing that me that was me taking like half time off you know like taking like half time off you know like taking like half time off you know like I only have to earn half of what I'm I only have to earn half of what I'm I only have to earn half of what I'm earning now I think I can do that and it earning now I think I can do that and it earning now I think I can do that and it was such an epiphany of like we are was such an epiphany of like we are was such an epiphany of like we are spending so much money and if we just spending so much money and if we just spending so much money and if we just recalculate this life we can start recalculate this life we can start recalculate this life we can start enjoying it so much more work so much enjoying it so much more work so much enjoying it so much more work so much less spend so much more time together less spend so much more time together less spend so much more time together even going on the road which kind of even going on the road which kind of even going on the road which kind of sounds like an undertaking it actually sounds like an undertaking it actually sounds like an undertaking it actually ended up being the catalyst it was it ended up being the catalyst it was it ended up being the catalyst it was it was a convenient catalyst to say let's was a convenient catalyst to say let's was a convenient catalyst to say let's just pull the ripcord just pull the ripcord just pull the ripcord like really let's just you know we're like really let's just you know we're like really let's just you know we're driving miles on the freeway pull the driving miles on the freeway pull the driving miles on the freeway pull the ripcord and let the parachute just take ripcord and let the parachute just take ripcord and let the parachute just take you out of that car off that freeway and you out of that car off that freeway and you out of that car off that freeway and somewhere else and that's what we did somewhere else and that's what we did somewhere else and that's what we did and so once we kind of came to that and so once we kind of came to that and so once we kind of came to that decision together it was like I couldn't decision together it was like I couldn't decision together it was like I couldn't believe it and I'm a very impatient believe it and I'm a very impatient believe it and I'm a very impatient person when I have a good idea person when I have a good idea person when I have a good idea when I have an idea that I want to see when I have an idea that I want to see when I have an idea that I want to see come to fruition I I want to see it come come to fruition I I want to see it come come to fruition I I want to see it come to fruition I don't know what it's gonna to fruition I don't know what it's gonna to fruition I don't know what it's gonna look like let's get there and so you look like let's get there and so you look like let's get there and so you know this was we made this decision in know this was we made this decision in know this was we made this decision in May and I remember Taylor said well when May and I remember Taylor said well when May and I remember Taylor said well when do you think we would move and I was do you think we would move and I was do you think we would move and I was like June I'm ready let's go she was like June I'm ready let's go she was like June I'm ready let's go she was like you are on crack that's not a good like you are on crack that's not a good like you are on crack that's not a good idea idea idea you know come on now come back down to you know come on now come back down to you know come on now come back down to reality and she said let's do December reality and she said let's do December reality and she said let's do December and I thought I can't live with that I and I thought I can't live with that I and I thought I can't live with that I just no way no how I'll go nuts it's just no way no how I'll go nuts it's just no way no how I'll go nuts it's like you know putting the rat in a cage like you know putting the rat in a cage like you know putting the rat in a cage kind of thing and and so we settled kind of thing and and so we settled kind of thing and and so we settled right you know kind of right in the right you know kind of right in the right you know kind of right in the middle it said August August middle it said August August middle it said August August Matt that ended up being the right move Matt that ended up being the right move Matt that ended up being the right move Thank You Taylor and and so we started Thank You Taylor and and so we started Thank You Taylor and and so we started getting our house in order and figuring getting our house in order and figuring getting our house in order and figuring out how we were gonna do this and out how we were gonna do this and out how we were gonna do this and putting the plans in place and then we putting the plans in place and then we putting the plans in place and then we wanted to go check out these various wanted to go check out these various wanted to go check out these various cities and we had boiled it down to cities and we had boiled it down to cities and we had boiled it down to Boise Idaho Spokane Washington Reno Boise Idaho Spokane Washington Reno Boise Idaho Spokane Washington Reno Nevada Bend Oregon and I always forget Nevada Bend Oregon and I always forget Nevada Bend Oregon and I always forget the last one I think the last one is the last one I think the last one is the last one I think the last one is sort of rotating they're just kind of sort of rotating they're just kind of sort of rotating they're just kind of like ooh maybe this or maybe that or like ooh maybe this or maybe that or like ooh maybe this or maybe that or maybe this and ended up coming down to maybe this and ended up coming down to maybe this and ended up coming down to those four places and we started going those four places and we started going those four places and we started going around we not we we'd already lived in around we not we we'd already lived in around we not we we'd already lived in Reno so we kind of knew what that was Reno so we kind of knew what that was Reno so we kind of knew what that was about this was just why I was on the about this was just why I was on the about this was just why I was on the list but our adventurous Souls just list but our adventurous Souls just list but our adventurous Souls just didn't we didn't want to go back to a didn't we didn't want to go back to a didn't we didn't want to go back to a place we'd already been we wanted to a place we'd already been we wanted to a place we'd already been we wanted to a fresh start we went to Spokane fresh start we went to Spokane fresh start we went to Spokane Washington and it's a great place and it Washington and it's a great place and it Washington and it's a great place and it was definitely contending Boise we never was definitely contending Boise we never was definitely contending Boise we never ended up making it to Boise because on ended up making it to Boise because on ended up making it to Boise because on our journey up up the coast we stopped our journey up up the coast we stopped our journey up up the coast we stopped in Bend Oregon and within an hour of in Bend Oregon and within an hour of in Bend Oregon and within an hour of arriving and on the way in it's already arriving and on the way in it's already arriving and on the way in it's already just you're going what is this place just you're going what is this place just you're going what is this place something magical and weird and awesome something magical and weird and awesome something magical and weird and awesome about this place and then you roll in about this place and then you roll in about this place and then you roll in and you see Mount Bachelor and the three and you see Mount Bachelor and the three and you see Mount Bachelor and the three sisters and broken top and they're all sisters and broken top and they're all sisters and broken top and they're all like snow covered on the tops but you're like snow covered on the tops but you're like snow covered on the tops but you're in like high desert degrees in like high desert degrees in like high desert degrees there's craft breweries on every corner there's craft breweries on every corner there's craft breweries on every corner there's people walking around with kids there's people walking around with kids there's people walking around with kids and it just it was like where are we and and it just it was like where are we and and it just it was like where are we and we walked through what's called Drake we walked through what's called Drake we walked through what's called Drake park next to the Deschutes River which park next to the Deschutes River which park next to the Deschutes River which is this beautiful river that super fresh is this beautiful river that super fresh is this beautiful river that super fresh water that runs right through the middle water that runs right through the middle water that runs right through the middle of the town and it was like like there's of the town and it was like like there's of the town and it was like like there's no coffee oh yeah I know right and so no coffee oh yeah I know right and so no coffee oh yeah I know right and so we're like well we got to go see you we're like well we got to go see you we're like well we got to go see you later isn't gonna work yeah yeah that later isn't gonna work yeah yeah that later isn't gonna work yeah yeah that was Scott that was the first epiphany was Scott that was the first epiphany was Scott that was the first epiphany that we had when we got there was Taylor that we had when we got there was Taylor that we had when we got there was Taylor realized that there was life outside of realized that there was life outside of realized that there was life outside of Coronado that there were other places Coronado that there were other places Coronado that there were other places that had walkability and casual that had walkability and casual that had walkability and casual lifestyles and a good feeling when you lifestyles and a good feeling when you lifestyles and a good feeling when you were there and that was thank God we hit were there and that was thank God we hit were there and that was thank God we hit that first we didn't have to go through that first we didn't have to go through that first we didn't have to go through you know this pain of we don't like this you know this pain of we don't like this you know this pain of we don't like this for this reason or that after I get all for this reason or that after I get all for this reason or that after I get all picky and weird about it it just like we picky and weird about it it just like we picky and weird about it it just like we fell in love with this place right away fell in love with this place right away fell in love with this place right away and made and made and made made that journey that much easier and made that journey that much easier and made that journey that much easier and Bend is less expensive than San Diego Bend is less expensive than San Diego Bend is less expensive than San Diego absolutely yes yeah so I would have absolutely yes yeah so I would have absolutely yes yeah so I would have stopped here make a point because I have stopped here make a point because I have stopped here make a point because I have never lived in a house I've actually the never lived in a house I've actually the never lived in a house I've actually the house I'm in now I've lived there for house I'm in now I've lived there for house I'm in now I've lived there for five and a half years but before this five and a half years but before this five and a half years but before this house I've never lived in a house for house I've never lived in a house for house I've never lived in a house for more than five years and I probably have more than five years and I probably have more than five years and I probably have a skewed view of moving because I'm not a skewed view of moving because I'm not a skewed view of moving because I'm not an army brat or a Navy brat I'm a an army brat or a Navy brat I'm a an army brat or a Navy brat I'm a corporate breath we just moved around a corporate breath we just moved around a corporate breath we just moved around a lot and I think a lot of people have lot and I think a lot of people have lot and I think a lot of people have this this this upheaval sense that you this this this upheaval sense that you this this this upheaval sense that you know oh I'm leaving everything I learned know oh I'm leaving everything I learned know oh I'm leaving everything I learned everything I know it's okay there's everything I know it's okay there's everything I know it's okay there's airports that will take you back to airports that will take you back to airports that will take you back to where you grew up and there's the where you grew up and there's the where you grew up and there's the internet it's this new thing where you internet it's this new thing where you internet it's this new thing where you can do you know Skype calls and you can can do you know Skype calls and you can can do you know Skype calls and you can still stay in touch with people even still stay in touch with people even still stay in touch with people even though you don't live next door and though you don't live next door and though you don't live next door and frankly how often are you seeing those frankly how often are you seeing those frankly how often are you seeing those people that you live next door to when people that you live next door to when people that you live next door to when you're working hours a week trying to you're working hours a week trying to you're working hours a week trying to afford the house that you can you know afford the house that you can you know afford the house that you can you know barely afford because it's so expensive barely afford because it's so expensive barely afford because it's so expensive I mean it's what do we say on the real I mean it's what do we say on the real I mean it's what do we say on the real estate podcast Scott within a two-hour estate podcast Scott within a two-hour estate podcast Scott within a two-hour drive of any major metropolitan area in drive of any major metropolitan area in drive of any major metropolitan area in America there is a more affordable place America there is a more affordable place America there is a more affordable place I mean what's a two-hour drive if you I mean what's a two-hour drive if you I mean what's a two-hour drive if you could live within two hours of San Diego could live within two hours of San Diego could live within two hours of San Diego and still see all your family and it and still see all your family and it and still see all your family and it doesn't sound like your family actually doesn't sound like your family actually doesn't sound like your family actually lives there anyway it's just a nice lives there anyway it's just a nice lives there anyway it's just a nice place to be you can still go visit San place to be you can still go visit San place to be you can still go visit San Diego they have airports there too Diego they have airports there too Diego they have airports there too that's right that's right so we weren't that's right that's right so we weren't that's right that's right so we weren't literally leaving our friends behind and literally leaving our friends behind and literally leaving our friends behind and we didn't see them that often anyway we didn't see them that often anyway we didn't see them that often anyway which was which sucked I mean we would which was which sucked I mean we would which was which sucked I mean we would have loved to but even if we freed up have loved to but even if we freed up have loved to but even if we freed up our time they'd still be running around our time they'd still be running around our time they'd still be running around you know as busy as they are and that's you know as busy as they are and that's you know as busy as they are and that's the other thing about a place like San the other thing about a place like San the other thing about a place like San Diego too is there's actually so much to Diego too is there's actually so much to Diego too is there's actually so much to do there's so much going on at all times do there's so much going on at all times do there's so much going on at all times in these major metropolitan areas in these major metropolitan areas in these major metropolitan areas whereas what we did is we designed it whereas what we did is we designed it whereas what we did is we designed it where we wanted to find a place between where we wanted to find a place between where we wanted to find a place between and , in population because and , in population because and , in population because oftentimes in that type of setup you've oftentimes in that type of setup you've oftentimes in that type of setup you've got enough people where there's a lot got enough people where there's a lot got enough people where there's a lot going on or I shouldn't say a lot but going on or I shouldn't say a lot but going on or I shouldn't say a lot but enough going on that you feel like enough going on that you feel like enough going on that you feel like there's a nice variety and you're you there's a nice variety and you're you there's a nice variety and you're you know you're getting some culture and know you're getting some culture and know you're getting some culture and some arts and some of that fun stuff but some arts and some of that fun stuff but some arts and some of that fun stuff but it's small enough where it still feels it's small enough where it still feels it's small enough where it still feels like you know your neighbors like you know your neighbors like you know your neighbors there's a sense of community and people there's a sense of community and people there's a sense of community and people look out for each other and what's look out for each other and what's look out for each other and what's really great about it is oftentimes really great about it is oftentimes really great about it is oftentimes there's one obvious event that's there's one obvious event that's there's one obvious event that's happening in a smaller town that happening in a smaller town that happening in a smaller town that everybody wants to go to instead of a everybody wants to go to instead of a everybody wants to go to instead of a place like a major metropolitan city place like a major metropolitan city place like a major metropolitan city where there's , things that you where there's , things that you where there's , things that you totally want to go see which also is a totally want to go see which also is a totally want to go see which also is a problem because now which things should problem because now which things should problem because now which things should I go to you know not to mention are our I go to you know not to mention are our I go to you know not to mention are our friends even interested in coming friends even interested in coming friends even interested in coming because they've already got plans to go because they've already got plans to go because they've already got plans to go to this other thing and it's just like to this other thing and it's just like to this other thing and it's just like it's a fundamental shift in the way we it's a fundamental shift in the way we it's a fundamental shift in the way we live by just yeah making a small choice live by just yeah making a small choice live by just yeah making a small choice and by the way I must caveat this and by the way I must caveat this and by the way I must caveat this because I've gotten in trouble with this because I've gotten in trouble with this because I've gotten in trouble with this before we could have found a place before we could have found a place before we could have found a place outside of San Diego that we you know outside of San Diego that we you know outside of San Diego that we you know could have lived that would have saved could have lived that would have saved could have lived that would have saved us money and it is possible to live a us money and it is possible to live a us money and it is possible to live a fire lifestyle in a high cost living fire lifestyle in a high cost living fire lifestyle in a high cost living area or in the surrounding areas of high area or in the surrounding areas of high area or in the surrounding areas of high cost living area I know that but as you cost living area I know that but as you cost living area I know that but as you said earlier the the fire knee is all said earlier the the fire knee is all said earlier the the fire knee is all relative to each individual and it's relative to each individual and it's relative to each individual and it's flexible and so this is my story what flexible and so this is my story what flexible and so this is my story what I'm talking about this is all relative I'm talking about this is all relative I'm talking about this is all relative to what we wanted what our goals were to what we wanted what our goals were to what we wanted what our goals were what our tastes are you know what is what our tastes are you know what is what our tastes are you know what is important to us what our happiness list important to us what our happiness list important to us what our happiness list was and in that context we made the was and in that context we made the was and in that context we made the choice to leave so I just want to - one choice to leave so I just want to - one choice to leave so I just want to - one throw that in there's a caveat not throw that in there's a caveat not throw that in there's a caveat not getting too much trouble over here I getting too much trouble over here I getting too much trouble over here I think it's a grape I think it's a great think it's a grape I think it's a great think it's a grape I think it's a great point I think it's a great story you point I think it's a great story you point I think it's a great story you know and and this and this move has know and and this and this move has know and and this and this move has resulted in you being able to accumulate resulted in you being able to accumulate resulted in you being able to accumulate more assets and build that net worth and more assets and build that net worth and more assets and build that net worth and move towards financial independence yeah move towards financial independence yeah move towards financial independence yeah here's a here's a secret that I that my here's a here's a secret that I that my here's a here's a secret that I that my director from the film would be upset if director from the film would be upset if director from the film would be upset if I told you we have effectively doubled I told you we have effectively doubled I told you we have effectively doubled our net worth in a little less than two our net worth in a little less than two our net worth in a little less than two years well there you go I mean we're on years well there you go I mean we're on years well there you go I mean we're on a fast track and and and it's it's been a fast track and and and it's it's been a fast track and and and it's it's been hard you know it's it really has there's hard you know it's it really has there's hard you know it's it really has there's been a lot of struggles there's been been a lot of struggles there's been been a lot of struggles there's been some pain we didn't get it all right some pain we didn't get it all right some pain we didn't get it all right every time but you know anything worth every time but you know anything worth every time but you know anything worth doing you know it's gonna have some doing you know it's gonna have some doing you know it's gonna have some obstacles it's gonna have some pain it's obstacles it's gonna have some pain it's obstacles it's gonna have some pain it's gonna have some learning you're gonna gonna have some learning you're gonna gonna have some learning you're gonna have failure to succeed those things are have failure to succeed those things are have failure to succeed those things are gonna happen but I can I can tell you gonna happen but I can I can tell you gonna happen but I can I can tell you unequivocally that none of it was scary unequivocally that none of it was scary unequivocally that none of it was scary enough not to start enough not to start enough not to start a hundred percent and and and we we a hundred percent and and and we we a hundred percent and and and we we ultimately don't regret a thing I mean ultimately don't regret a thing I mean ultimately don't regret a thing I mean there's definitely things we would have there's definitely things we would have there's definitely things we would have done differently there's different done differently there's different done differently there's different choices we would have made but if we choices we would have made but if we choices we would have made but if we hadn't made those bad choices and we hadn't made those bad choices and we hadn't made those bad choices and we wouldn't grow from them and we wouldn't wouldn't grow from them and we wouldn't wouldn't grow from them and we wouldn't you know be getting better at this you know be getting better at this you know be getting better at this well let's let's you mention it let's well let's let's you mention it let's well let's let's you mention it let's talk about it what is this film people talk about it what is this film people talk about it what is this film people don't know oh that thing yeah I don't don't know oh that thing yeah I don't don't know oh that thing yeah I don't think it's it's called playing with fire think it's it's called playing with fire think it's it's called playing with fire it is a full feature length documentary it is a full feature length documentary it is a full feature length documentary that we made that covers one family's that we made that covers one family's that we made that covers one family's journey on a path to Phi which happens journey on a path to Phi which happens journey on a path to Phi which happens to be us and and we also get to go out to be us and and we also get to go out to be us and and we also get to go out and meet many of the influencers in the and meet many of the influencers in the and meet many of the influencers in the fire space I like to call them friends fire space I like to call them friends fire space I like to call them friends in the fire space and meet the community in the fire space and meet the community in the fire space and meet the community that makes up this wonderful framework that makes up this wonderful framework that makes up this wonderful framework whatever this is a movement of framework whatever this is a movement of framework whatever this is a movement of framework an idea the the coolest thing about this an idea the the coolest thing about this an idea the the coolest thing about this and why I think it was important to make and why I think it was important to make and why I think it was important to make something now is that it is it feels something now is that it is it feels something now is that it is it feels like it's at a tipping point it feels like it's at a tipping point it feels like it's at a tipping point it feels like it's starting to become part of the like it's starting to become part of the like it's starting to become part of the zeitgeist we're still naming it we're zeitgeist we're still naming it we're zeitgeist we're still naming it we're still figuring out what this thing is still figuring out what this thing is still figuring out what this thing is and that makes it interesting it's fluid and that makes it interesting it's fluid and that makes it interesting it's fluid it's it's volatile it it doesn't always it's it's volatile it it doesn't always it's it's volatile it it doesn't always make sense it's you know there's all make sense it's you know there's all make sense it's you know there's all kinds of stuff going on and that makes kinds of stuff going on and that makes kinds of stuff going on and that makes for a really interesting story so we try for a really interesting story so we try for a really interesting story so we try to get out and meet as many of the folks to get out and meet as many of the folks to get out and meet as many of the folks that we possibly could who would give us that we possibly could who would give us that we possibly could who would give us access the kind of access necessary to access the kind of access necessary to access the kind of access necessary to tell a compelling and entertaining story tell a compelling and entertaining story tell a compelling and entertaining story so that not only can we try to dispel so that not only can we try to dispel so that not only can we try to dispel the myths of the fire movement you know the myths of the fire movement you know the myths of the fire movement you know you hear this stuff all the time with uh you hear this stuff all the time with uh you hear this stuff all the time with uh you know you get the Suze Orman's of the you know you get the Suze Orman's of the you know you get the Suze Orman's of the world and whatnot and I hear I hate even world and whatnot and I hear I hate even world and whatnot and I hear I hate even mentioning her because that that was mentioning her because that that was mentioning her because that that was your probably part of her goal and that your probably part of her goal and that your probably part of her goal and that but uh you just see a lot of articles a but uh you just see a lot of articles a but uh you just see a lot of articles a lot of macing a lot of oh well if you lot of macing a lot of oh well if you lot of macing a lot of oh well if you retire too early blah blah we kind of retire too early blah blah we kind of retire too early blah blah we kind of address all those things and the idea address all those things and the idea address all those things and the idea was if we can share this framework in was if we can share this framework in was if we can share this framework in this world with as many people as this world with as many people as this world with as many people as possible then we can at least do our possible then we can at least do our possible then we can at least do our part to sort of pay it forward one two part to sort of pay it forward one two part to sort of pay it forward one two we can really liberate people who are we can really liberate people who are we can really liberate people who are feeling the same struggles that Taylor feeling the same struggles that Taylor feeling the same struggles that Taylor and I were and and then three week and I were and and then three week and I were and and then three week have something for this amazing have something for this amazing have something for this amazing community that hopefully they can use as community that hopefully they can use as community that hopefully they can use as a calling card and you they can use to a calling card and you they can use to a calling card and you they can use to point to and say see we're not crazy point to and say see we're not crazy point to and say see we're not crazy this is just what this is what we're this is just what this is what we're this is just what this is what we're doing it makes sense now right like it's doing it makes sense now right like it's doing it makes sense now right like it's not about spreadsheets this is about not about spreadsheets this is about not about spreadsheets this is about this is about happiness this is about this is about happiness this is about this is about happiness this is about time this is about freedom and so that's time this is about freedom and so that's time this is about freedom and so that's what we set out to do and and we are we what we set out to do and and we are we what we set out to do and and we are we are so so close I am actually talking to are so so close I am actually talking to are so so close I am actually talking to you today from Coronado believe it or you today from Coronado believe it or you today from Coronado believe it or not and I'm getting in a car and driving not and I'm getting in a car and driving not and I'm getting in a car and driving up to LA tonight to meet up with the the up to LA tonight to meet up with the the up to LA tonight to meet up with the the editing team and Travis the director and editing team and Travis the director and editing team and Travis the director and we're gonna work on the final finishing we're gonna work on the final finishing we're gonna work on the final finishing touches and we're hoping to picture lock touches and we're hoping to picture lock touches and we're hoping to picture lock in the next couple days so we are in the next couple days so we are in the next couple days so we are getting very very close very close hey getting very very close very close hey getting very very close very close hey if I'm listening to the show and I mean if I'm listening to the show and I mean if I'm listening to the show and I mean she anxiously anticipating it you know she anxiously anticipating it you know she anxiously anticipating it you know do you have any type of semblance of a do you have any type of semblance of a do you have any type of semblance of a time when I might be ready to check my time when I might be ready to check my time when I might be ready to check my calendar and Mark it off yeah yeah we calendar and Mark it off yeah yeah we calendar and Mark it off yeah yeah we are we're gunning for some time in March are we're gunning for some time in March are we're gunning for some time in March we are hoping that you know the first we are hoping that you know the first we are hoping that you know the first and foremost there is an amazing and foremost there is an amazing and foremost there is an amazing Kickstarter campaign that we ran and we Kickstarter campaign that we ran and we Kickstarter campaign that we ran and we had an overwhelming amount of people had an overwhelming amount of people had an overwhelming amount of people come in and support that and so I think come in and support that and so I think come in and support that and so I think there's about that that backed at there's about that that backed at there's about that that backed at the level that gets the movie early and the level that gets the movie early and the level that gets the movie early and we're hoping to deliver that by by mid we're hoping to deliver that by by mid we're hoping to deliver that by by mid to late February so we are within about to late February so we are within about to late February so we are within about a month of you know that link going out a month of you know that link going out a month of you know that link going out to those folks after that there'll be to those folks after that there'll be to those folks after that there'll be about a month or so in between and we're about a month or so in between and we're about a month or so in between and we're thinking mid March to late March we will thinking mid March to late March we will thinking mid March to late March we will be of we will be getting it out be of we will be getting it out be of we will be getting it out into theaters and putting on some sort into theaters and putting on some sort into theaters and putting on some sort of screening tour and and kind of of screening tour and and kind of of screening tour and and kind of rallying the troops and making it an rallying the troops and making it an rallying the troops and making it an event and making it fun but our hope is event and making it fun but our hope is event and making it fun but our hope is to release it theatrically through a to release it theatrically through a to release it theatrically through a it's a it's a theater crowdsourcing it's a it's a theater crowdsourcing it's a it's a theater crowdsourcing platform called tug and essentially if platform called tug and essentially if platform called tug and essentially if you want to see the film come to your you want to see the film come to your you want to see the film come to your town you can become an admin and we can town you can become an admin and we can town you can become an admin and we can help support the marketing of that and help support the marketing of that and help support the marketing of that and they can also maybe hit up all their they can also maybe hit up all their they can also maybe hit up all their friends and get some word-of-mouth friends and get some word-of-mouth friends and get some word-of-mouth marketing going and if they they meet a marketing going and if they they meet a marketing going and if they they meet a minimum threshold of tickets then the minimum threshold of tickets then the minimum threshold of tickets then the we'll open its doors to that group and we'll open its doors to that group and we'll open its doors to that group and play the movie so it's a really cool way play the movie so it's a really cool way play the movie so it's a really cool way for us to not have to you know have for us to not have to you know have for us to not have to you know have million-dollar Hollywood budgets to open million-dollar Hollywood budgets to open million-dollar Hollywood budgets to open it up to thousands of theaters and it up to thousands of theaters and it up to thousands of theaters and instead let the people who want to see instead let the people who want to see instead let the people who want to see it bring it to their town and and and it bring it to their town and and and it bring it to their town and and and that way you know we're being a bit that way you know we're being a bit that way you know we're being a bit democratic about it and that's that's a democratic about it and that's that's a democratic about it and that's that's a the the us distribution plan as it the the us distribution plan as it the the us distribution plan as it stands today early on in the meantime stands today early on in the meantime stands today early on in the meantime there's some interesting little tidbits there's some interesting little tidbits there's some interesting little tidbits there we submitted it to Hot Docs which there we submitted it to Hot Docs which there we submitted it to Hot Docs which is a crazy name for a film festival but is a crazy name for a film festival but is a crazy name for a film festival but apparently it's like the world's apparently it's like the world's apparently it's like the world's foremost documentary film festival up in foremost documentary film festival up in foremost documentary film festival up in Toronto so if that happens the way film Toronto so if that happens the way film Toronto so if that happens the way film festivals work is they have you know festivals work is they have you know festivals work is they have you know people who are buying stuff and looking people who are buying stuff and looking people who are buying stuff and looking for movies to put on their platforms so for movies to put on their platforms so for movies to put on their platforms so that could be an interesting twist to that could be an interesting twist to that could be an interesting twist to get it on Netflix early or Amazon or you get it on Netflix early or Amazon or you get it on Netflix early or Amazon or you know one of those types of those types know one of those types of those types know one of those types of those types of platforms and then eventually no of platforms and then eventually no of platforms and then eventually no doubt about it we'll have it on iTunes doubt about it we'll have it on iTunes doubt about it we'll have it on iTunes and Vimeo as what they call video and Vimeo as what they call video and Vimeo as what they call video on-demand so we can at least get it out on-demand so we can at least get it out on-demand so we can at least get it out to any country around the world that has to any country around the world that has to any country around the world that has that ability to get on those platforms that ability to get on those platforms that ability to get on those platforms and then you know at that point then and then you know at that point then and then you know at that point then we'll start looking at international we'll start looking at international we'll start looking at international yeah if we need to but as you can hear yeah if we need to but as you can hear yeah if we need to but as you can hear one thing leads to another thing to at one thing leads to another thing to at one thing leads to another thing to at least know there and we're not just least know there and we're not just least know there and we're not just we're not quite sure how the dominoes we're not quite sure how the dominoes we're not quite sure how the dominoes will fall so we're sort of ready for any will fall so we're sort of ready for any will fall so we're sort of ready for any sort of way that it goes but our sort of way that it goes but our sort of way that it goes but our ultimate goal is just to get this thing ultimate goal is just to get this thing ultimate goal is just to get this thing in this front as many eyeballs as we in this front as many eyeballs as we in this front as many eyeballs as we possibly can possibly can possibly can after we pay for it we just need to pay after we pay for it we just need to pay after we pay for it we just need to pay for it that's just need to pay for the for it that's just need to pay for the for it that's just need to pay for the darn thing pay off the movie and they'd darn thing pay off the movie and they'd darn thing pay off the movie and they'd get it and then help change as many get it and then help change as many get it and then help change as many lives as possible and make sure they're lives as possible and make sure they're lives as possible and make sure they're we're a financial freedom and and you we're a financial freedom and and you we're a financial freedom and and you know a way to do it exactly yep and I'd know a way to do it exactly yep and I'd know a way to do it exactly yep and I'd be remiss if I didn't say that I wrote be remiss if I didn't say that I wrote be remiss if I didn't say that I wrote we we had the opportunity to write a we we had the opportunity to write a we we had the opportunity to write a book about this story as well which I book about this story as well which I book about this story as well which I didn't see coming but as a journalism didn't see coming but as a journalism didn't see coming but as a journalism major I was pretty excited about what do major I was pretty excited about what do major I was pretty excited about what do you have there is this a copy of the you have there is this a copy of the you have there is this a copy of the book no I book no I book no I well maybe play with the fire like a well maybe play with the fire like a well maybe play with the fire like a mice got richens well that's you so tell mice got richens well that's you so tell mice got richens well that's you so tell me about the book so the book is me about the book so the book is me about the book so the book is it's just a little more in-depth look it's just a little more in-depth look it's just a little more in-depth look because when you make a movie you know because when you make a movie you know because when you make a movie you know the analogy like to make is you know the analogy like to make is you know the analogy like to make is you know we'll go and sit down with our favorite we'll go and sit down with our favorite we'll go and sit down with our favorite human beings these influencers that have human beings these influencers that have human beings these influencers that have changed our lives and we'll have these changed our lives and we'll have these changed our lives and we'll have these two-hour long epic conversations and two-hour long epic conversations and two-hour long epic conversations and like five minutes that'll get in the like five minutes that'll get in the like five minutes that'll get in the film you know you really have to break film you know you really have to break film you know you really have to break it down to try to fit as much of that it down to try to fit as much of that it down to try to fit as much of that story in as you can and so with the book story in as you can and so with the book story in as you can and so with the book we had a little bit more of an we had a little bit more of an we had a little bit more of an opportunity to get in more depth into opportunity to get in more depth into opportunity to get in more depth into Taylor nice story and to these Taylor nice story and to these Taylor nice story and to these influencers and how they influenced us influencers and how they influenced us influencers and how they influenced us and we tried to write what my editor and we tried to write what my editor and we tried to write what my editor called like a financial memoir called like a financial memoir called like a financial memoir essentially it's it's it's more of an essentially it's it's it's more of an essentially it's it's it's more of an emotional journey than a how-to of what emotional journey than a how-to of what emotional journey than a how-to of what it feels like to go through this so for it feels like to go through this so for it feels like to go through this so for anyone who's who's nervous to get anyone who's who's nervous to get anyone who's who's nervous to get started or doesn't know how to get started or doesn't know how to get started or doesn't know how to get started or sort of you know had has started or sort of you know had has started or sort of you know had has heard of fire or heard of personal heard of fire or heard of personal heard of fire or heard of personal finance but doesn't really know how to finance but doesn't really know how to finance but doesn't really know how to begin the idea was that we can get them begin the idea was that we can get them begin the idea was that we can get them sort of emotionally ready and maybe sort of emotionally ready and maybe sort of emotionally ready and maybe inspired on that front and give them inspired on that front and give them inspired on that front and give them some framework on who they should be some framework on who they should be some framework on who they should be paying attention to and how we did that paying attention to and how we did that paying attention to and how we did that and like how how we put that into into a and like how how we put that into into a and like how how we put that into into a sort of an action plan without getting sort of an action plan without getting sort of an action plan without getting into too much detail so it's a into too much detail so it's a into too much detail so it's a beginner's guide the beginner's guide to beginner's guide the beginner's guide to beginner's guide the beginner's guide to playing with fire and where can I get playing with fire and where can I get playing with fire and where can I get this besides already at my hands yeah this besides already at my hands yeah this besides already at my hands yeah it's uh it's on Amazon it's in Barnes it's uh it's on Amazon it's in Barnes it's uh it's on Amazon it's in Barnes and Noble Hudson books a lot of those and Noble Hudson books a lot of those and Noble Hudson books a lot of those types of places and the audiobook will types of places and the audiobook will types of places and the audiobook will be hitting the Internet's any any minute be hitting the Internet's any any minute be hitting the Internet's any any minute now now now it says it's pending in the backend so it says it's pending in the backend so it says it's pending in the backend so I'm waiting for that to hit and I had I'm waiting for that to hit and I had I'm waiting for that to hit and I had the fortunate ability to to work with the fortunate ability to to work with the fortunate ability to to work with Pete mister money mustache on the Pete mister money mustache on the Pete mister money mustache on the foreword of the book which is so foreword of the book which is so foreword of the book which is so beautifully written we almost just beautifully written we almost just beautifully written we almost just scrapped the whole book and just printed scrapped the whole book and just printed scrapped the whole book and just printed that talk about a humbling moment and that talk about a humbling moment and that talk about a humbling moment and and he actually just sent me his his and he actually just sent me his his and he actually just sent me his his audio version of the foreword so I'll be audio version of the foreword so I'll be audio version of the foreword so I'll be uploading that to the audiobook so he uploading that to the audiobook so he uploading that to the audiobook so he can hear it straight from straight from can hear it straight from straight from can hear it straight from straight from the man himself the man himself the man himself oh that's awesome okay well Scott this oh that's awesome okay well Scott this oh that's awesome okay well Scott this was fabulous I'm so excited to hear your was fabulous I'm so excited to hear your was fabulous I'm so excited to hear your story and I'm so excited to share with story and I'm so excited to share with story and I'm so excited to share with people because you know I really love people because you know I really love people because you know I really love how you got your wife on board and I how you got your wife on board and I how you got your wife on board and I love love love how you just changed your whole mindset how you just changed your whole mindset how you just changed your whole mindset and it wasn't like this huge mountain to and it wasn't like this huge mountain to and it wasn't like this huge mountain to climb like hey I was not making massive climb like hey I was not making massive climb like hey I was not making massive mistakes but I certainly wasn't you know mistakes but I certainly wasn't you know mistakes but I certainly wasn't you know furthering myself down the path and then furthering myself down the path and then furthering myself down the path and then I changed it up and now I'm here I've I changed it up and now I'm here I've I changed it up and now I'm here I've doubled my net worth in two years that's doubled my net worth in two years that's doubled my net worth in two years that's pretty amazing thank you so much for pretty amazing thank you so much for pretty amazing thank you so much for taking the time to share your story with taking the time to share your story with taking the time to share your story with us and now we're not done yet it is time us and now we're not done yet it is time us and now we're not done yet it is time for the famous four questions these are for the famous four questions these are for the famous four questions these are the same four questions that we ask all the same four questions that we ask all the same four questions that we ask all of our guests plus Adam and at the end of our guests plus Adam and at the end of our guests plus Adam and at the end are you ready I'm ready hi things what are you ready I'm ready hi things what are you ready I'm ready hi things what is your favorite finance book my is your favorite finance book my is your favorite finance book my favorite finance book because I'm only favorite finance book because I'm only favorite finance book because I'm only through two chapters of set for life by through two chapters of set for life by through two chapters of set for life by Scott Trench it's amazing but a great Scott Trench it's amazing but a great Scott Trench it's amazing but a great audio book narrator just has such a audio book narrator just has such a audio book narrator just has such a smooth unprecedented set for life you smooth unprecedented set for life you smooth unprecedented set for life you know excluded the simple path to wealth know excluded the simple path to wealth know excluded the simple path to wealth by jail Collins first of all if I didn't by jail Collins first of all if I didn't by jail Collins first of all if I didn't say that book he would have you would say that book he would have you would say that book he would have you would have me for breakfast it's like he would have me for breakfast it's like he would have me for breakfast it's like he would really I would hear about it if for really I would hear about it if for really I would hear about it if for anyone who knows him I say that lovingly anyone who knows him I say that lovingly anyone who knows him I say that lovingly and also because that really is a book I and also because that really is a book I and also because that really is a book I wish I had found so so much earlier on wish I had found so so much earlier on wish I had found so so much earlier on in my in my life's journey and I think in my in my life's journey and I think in my in my life's journey and I think it's one of the easiest reads to quickly it's one of the easiest reads to quickly it's one of the easiest reads to quickly understand how the markets work and understand how the markets work and understand how the markets work and gives a really good pitch for how to gives a really good pitch for how to gives a really good pitch for how to passively invest your money in the stock passively invest your money in the stock passively invest your money in the stock market so I highly highly highly market so I highly highly highly market so I highly highly highly recommend that book as most people in recommend that book as most people in recommend that book as most people in the fire community do and it's my the fire community do and it's my the fire community do and it's my favorite favorite favorite yeah and I'll chime in that the narrator yeah and I'll chime in that the narrator yeah and I'll chime in that the narrator of that book mr. Collins of that book mr. Collins of that book mr. Collins actually does have that smooth actually does have that smooth actually does have that smooth intonation voice that's very incredible intonation voice that's very incredible intonation voice that's very incredible ELISA too so definitely check consider ELISA too so definitely check consider ELISA too so definitely check consider checking that book out an audible if you checking that book out an audible if you checking that book out an audible if you are thinking about reading it yes if are thinking about reading it yes if are thinking about reading it yes if you're going to consume that information you're going to consume that information you're going to consume that information having Jim read it to you is the best having Jim read it to you is the best having Jim read it to you is the best way to consume that you know his voice way to consume that you know his voice way to consume that you know his voice he was on our episode or he was on he was on our episode or he was on he was on our episode or he was on episode of our podcast and he's like episode of our podcast and he's like episode of our podcast and he's like James Earl Jones or Barry White just James Earl Jones or Barry White just James Earl Jones or Barry White just this really deep this really deep this really deep smooth amazing voice okay what was your smooth amazing voice okay what was your smooth amazing voice okay what was your biggest money mistake do you think oh okay the person will not be named in okay the person will not be named in okay the person will not be named in this conversation but we found out while this conversation but we found out while this conversation but we found out while going through this journey that while we going through this journey that while we going through this journey that while we had been putting money towards a k we had been putting money towards a k we had been putting money towards a k we didn't know where that was invested and didn't know where that was invested and didn't know where that was invested and we didn't really know what we were doing we didn't really know what we were doing we didn't really know what we were doing I mean honestly like I said earlier it I mean honestly like I said earlier it I mean honestly like I said earlier it was like okay we're putting money was like okay we're putting money was like okay we're putting money towards our K we're good we found towards our K we're good we found towards our K we're good we found out that it had been invested in a money out that it had been invested in a money out that it had been invested in a money market while we had the most market while we had the most market while we had the most unprecedented rise in stock market value unprecedented rise in stock market value unprecedented rise in stock market value in our lifetime and that hurt to find in our lifetime and that hurt to find in our lifetime and that hurt to find that out that was uh that was a big that out that was uh that was a big that out that was uh that was a big mistake not to pay attention to that mistake not to pay attention to that mistake not to pay attention to that early but as I say that sunk cost early but as I say that sunk cost early but as I say that sunk cost fallacy that's a thing right you can't fallacy that's a thing right you can't fallacy that's a thing right you can't go back and dwell on that you have to go back and dwell on that you have to go back and dwell on that you have to only look forward and make the changes only look forward and make the changes only look forward and make the changes you can make today so that's what I tell you can make today so that's what I tell you can make today so that's what I tell myself is that cry myself to sleep well myself is that cry myself to sleep well myself is that cry myself to sleep well I just love how you're saying hey we I just love how you're saying hey we I just love how you're saying hey we made a hundred and forty two thousand made a hundred and forty two thousand made a hundred and forty two thousand dollars one year and spend one hundred dollars one year and spend one hundred dollars one year and spend one hundred thirty two thousand dollars but my thirty two thousand dollars but my thirty two thousand dollars but my biggest mistake is an opportunity cost biggest mistake is an opportunity cost biggest mistake is an opportunity cost for investing I think that's really like for investing I think that's really like for investing I think that's really like why isn't remarkable thing to say well why isn't remarkable thing to say well why isn't remarkable thing to say well thank you so much I you know I'm gonna thank you so much I you know I'm gonna thank you so much I you know I'm gonna take that to heart I may write that down take that to heart I may write that down take that to heart I may write that down on my inspiration wall I think that I on my inspiration wall I think that I on my inspiration wall I think that I think that's the right way to think think that's the right way to think think that's the right way to think about it though right it's all those about it though right it's all those about it though right it's all those other decisions were probably dwarfed by other decisions were probably dwarfed by other decisions were probably dwarfed by failure to invest optimally which I failure to invest optimally which I failure to invest optimally which I think a lot of you know we're always all think a lot of you know we're always all think a lot of you know we're always all boils down to getting started in that boils down to getting started in that boils down to getting started in that savings rate but actually completing the savings rate but actually completing the savings rate but actually completing the journey I think comes down to that journey I think comes down to that journey I think comes down to that investment approach yeah great point yep investment approach yeah great point yep investment approach yeah great point yep what is your best piece of advice for what is your best piece of advice for what is your best piece of advice for people who are just starting out ah man people who are just starting out ah man people who are just starting out ah man there's a lot of really good tidbits the there's a lot of really good tidbits the there's a lot of really good tidbits the one that just comes to mind I would say one that just comes to mind I would say one that just comes to mind I would say is try to try to frame your is try to try to frame your is try to try to frame your decision-making around happiness that decision-making around happiness that decision-making around happiness that will get you so much further because will get you so much further because will get you so much further because it's very easy to get hard on yourself it's very easy to get hard on yourself it's very easy to get hard on yourself you know this this process this fire you know this this process this fire you know this this process this fire framework it's simple and that's what I framework it's simple and that's what I framework it's simple and that's what I love about it so much I think that's why love about it so much I think that's why love about it so much I think that's why it's catching on so well but it doesn't it's catching on so well but it doesn't it's catching on so well but it doesn't make it easy right and so make it easy right and so make it easy right and so I think what makes it easier is I think what makes it easier is I think what makes it easier is continuing to focus on happiness start continuing to focus on happiness start continuing to focus on happiness start diving into that I hadn't even asked diving into that I hadn't even asked diving into that I hadn't even asked myself really what made me happy I just myself really what made me happy I just myself really what made me happy I just kind of thought I instinctually knew and kind of thought I instinctually knew and kind of thought I instinctually knew and happiness in and of itself is it is a happiness in and of itself is it is a happiness in and of itself is it is a lifelong pursuit and a journey that that lifelong pursuit and a journey that that lifelong pursuit and a journey that that you really need to go down and you did you really need to go down and you did you really need to go down and you did tend to and and so I highly recommend tend to and and so I highly recommend tend to and and so I highly recommend there's another little tip I highly there's another little tip I highly there's another little tip I highly recommend creating a personal mission recommend creating a personal mission recommend creating a personal mission statement statement statement JD Roth has a excellent post on this JD Roth has a excellent post on this JD Roth has a excellent post on this where he pulls from a bunch of different where he pulls from a bunch of different where he pulls from a bunch of different sources and kind of gives you a sources and kind of gives you a sources and kind of gives you a framework I did that I even I even went framework I did that I even I even went framework I did that I even I even went as far as the kind of creating my own as far as the kind of creating my own as far as the kind of creating my own which I'll probably post a blog about as which I'll probably post a blog about as which I'll probably post a blog about as well for those who are interested well for those who are interested well for those who are interested because I had as an entrepreneur I had because I had as an entrepreneur I had because I had as an entrepreneur I had written three or four mission statements written three or four mission statements written three or four mission statements for businesses and they are hard they for businesses and they are hard they for businesses and they are hard they take time and and they're very important take time and and they're very important take time and and they're very important and they're very valuable when you get and they're very valuable when you get and they're very valuable when you get them right and I just couldn't believe I them right and I just couldn't believe I them right and I just couldn't believe I had never done one for myself and it's had never done one for myself and it's had never done one for myself and it's like come on take care of yourself first like come on take care of yourself first like come on take care of yourself first right and and and the rest will follow right and and and the rest will follow right and and and the rest will follow so I think having a personal mission so I think having a personal mission so I think having a personal mission statement makes it much easier to statement makes it much easier to statement makes it much easier to understand what guides you where your understand what guides you where your understand what guides you where your happiness will lie and what your goal happiness will lie and what your goal happiness will lie and what your goal should be and I think putting your should be and I think putting your should be and I think putting your decisions especially about money through decisions especially about money through decisions especially about money through that framework will always help alright that framework will always help alright that framework will always help alright we'll go on to the last question video we'll go on to the last question video we'll go on to the last question video and then mister what is your favorite and then mister what is your favorite and then mister what is your favorite joke to tell at parties joke to tell at parties joke to tell at parties okay full disclosure I looked this up on okay full disclosure I looked this up on okay full disclosure I looked this up on the internet and I found this one this the internet and I found this one this the internet and I found this one this is my favorite I don't tell jokes at is my favorite I don't tell jokes at is my favorite I don't tell jokes at parties like this though yeah you've parties like this though yeah you've parties like this though yeah you've almost convinced me otherwise with the almost convinced me otherwise with the almost convinced me otherwise with the ridiculous hilarity that it sees at the ridiculous hilarity that it sees at the ridiculous hilarity that it sees at the end at the back end of these episodes end at the back end of these episodes end at the back end of these episodes okay are you ready yes Yeah right I'll okay are you ready yes Yeah right I'll okay are you ready yes Yeah right I'll see if I can do this right here comes see if I can do this right here comes see if I can do this right here comes the delivery of a lifetime the delivery of a lifetime the delivery of a lifetime all right a blind man walks into a bar all right a blind man walks into a bar all right a blind man walks into a bar and a table and the chair all right no I and a table and the chair all right no I and a table and the chair all right no I got some laps so a deaf man walks into a got some laps so a deaf man walks into a got some laps so a deaf man walks into a store and he's trying to buy a pair of store and he's trying to buy a pair of store and he's trying to buy a pair of scissors right so he takes his fingers scissors right so he takes his fingers scissors right so he takes his fingers and and and makes the the scissor side right this makes the the scissor side right this makes the the scissor side right this little click-click click-click little click-click click-click little click-click click-click click-click and the clerk sells him you click-click and the clerk sells him you click-click and the clerk sells him you know gets it and finally gives them a know gets it and finally gives them a know gets it and finally gives them a pair of scissors you know and everyone's pair of scissors you know and everyone's pair of scissors you know and everyone's wondering and I wonder if you can guess wondering and I wonder if you can guess wondering and I wonder if you can guess how the blind man is going to how the blind man is going to how the blind man is going to communicate that he would like a pair of communicate that he would like a pair of communicate that he would like a pair of scissors to the store clerk scissors to the store clerk scissors to the store clerk do you guys know nope he says to the do you guys know nope he says to the do you guys know nope he says to the clerk I'd like a pair of scissors I like clerk I'd like a pair of scissors I like clerk I'd like a pair of scissors I like it I like it it I like it it I like it wow you have such a repertoire of these wow you have such a repertoire of these wow you have such a repertoire of these you even hold the joke from the exact you even hold the joke from the exact you even hold the joke from the exact same topic oh you set me up you set me same topic oh you set me up you set me same topic oh you set me up you set me up by waiting for that I year to have to up by waiting for that I year to have to up by waiting for that I year to have to pull that one out you no use there are pull that one out you no use there are pull that one out you no use there are don't encourage him mr. Dickens okay don't encourage him mr. Dickens okay don't encourage him mr. Dickens okay from honestly mom on Twitter her from honestly mom on Twitter her from honestly mom on Twitter her four-year-olds favorite joke is why four-year-olds favorite joke is why four-year-olds favorite joke is why don't dinosaurs take a bath because don't dinosaurs take a bath because don't dinosaurs take a bath because they're dead we take that was really they're dead we take that was really they're dead we take that was really cute excellent plus I want to give her cute excellent plus I want to give her cute excellent plus I want to give her four-year-old a shout-out I don't know four-year-old a shout-out I don't know four-year-old a shout-out I don't know what your name is little four-year-old what your name is little four-year-old what your name is little four-year-old but honestly mom thank you for sharing but honestly mom thank you for sharing but honestly mom thank you for sharing your four-year-olds favorite joke my your four-year-olds favorite joke my your four-year-olds favorite joke my daughters have been giving me a ton of daughters have been giving me a ton of daughters have been giving me a ton of jokes jokes jokes so in upcoming episodes if our guest so in upcoming episodes if our guest so in upcoming episodes if our guest does not have one my daughters will does not have one my daughters will does not have one my daughters will share them for you and they're pretty share them for you and they're pretty share them for you and they're pretty awful so Scott trench will probably love awful so Scott trench will probably love awful so Scott trench will probably love them perfect okay them perfect okay them perfect okay the last of our famous for is Adam and the last of our famous for is Adam and the last of our famous for is Adam and tell us where people can find out more tell us where people can find out more tell us where people can find out more about you yes tell us you can find out about you yes tell us you can find out about you yes tell us you can find out more about me at playing with fire Co more about me at playing with fire Co more about me at playing with fire Co that's Co we are on Twitter actively that's Co we are on Twitter actively that's Co we are on Twitter actively Instagram most of the time and Facebook Instagram most of the time and Facebook Instagram most of the time and Facebook hardly ever but we are on all three of hardly ever but we are on all three of hardly ever but we are on all three of those platforms and that's where you can those platforms and that's where you can those platforms and that's where you can find this you can always reach out to us find this you can always reach out to us find this you can always reach out to us via email via email via email hello at flame with fire co and every hello at flame with fire co and every hello at flame with fire co and every week or two I go through that list and I week or two I go through that list and I week or two I go through that list and I respond personally to everyone so that's respond personally to everyone so that's respond personally to everyone so that's where you can find us scott richens from where you can find us scott richens from where you can find us scott richens from playing with fire in the movie the book playing with fire in the movie the book playing with fire in the movie the book the website the Twitter the the website the Twitter the the website the Twitter the everywhere playing with fire thank you everywhere playing with fire thank you everywhere playing with fire thank you so much for coming on today and sharing so much for coming on today and sharing so much for coming on today and sharing your story this was hugely helpful to me your story this was hugely helpful to me your story this was hugely helpful to me I love being able to direct people I love being able to direct people I love being able to direct people places where they can start their places where they can start their places where they can start their journey and this is an excellent journey and this is an excellent journey and this is an excellent overview of yours thank you guys so much overview of yours thank you guys so much overview of yours thank you guys so much for having me it was an absolute honor for having me it was an absolute honor for having me it was an absolute honor and I love what you guys are doing keep and I love what you guys are doing keep and I love what you guys are doing keep it up same I love what you're doing keep it up same I love what you're doing keep it up same I love what you're doing keep it up all right that was Scott richens it up all right that was Scott richens it up all right that was Scott richens from playing with fire Mindy would you from playing with fire Mindy would you from playing with fire Mindy would you think oh my goodness I cannot say enough think oh my goodness I cannot say enough think oh my goodness I cannot say enough good things about Scott I loved his good things about Scott I loved his good things about Scott I loved his story I loved his ability to tell it in story I loved his ability to tell it in story I loved his ability to tell it in a really relatable way and a really a really relatable way and a really a really relatable way and a really interesting way I am in this space I've interesting way I am in this space I've interesting way I am in this space I've been in this space for about five years been in this space for about five years been in this space for about five years now and it's you know like we said in now and it's you know like we said in now and it's you know like we said in the beginning what's so remarkable about the beginning what's so remarkable about the beginning what's so remarkable about this story is that it's not remarkable this story is that it's not remarkable this story is that it's not remarkable at all there is no secret sauce to this at all there is no secret sauce to this at all there is no secret sauce to this financial independence financial independence financial independence dream you can do it save money make more dream you can do it save money make more dream you can do it save money make more money spend less money increase your money spend less money increase your money spend less money increase your savings rate it's just over and over savings rate it's just over and over savings rate it's just over and over again we have the same thing and it's again we have the same thing and it's again we have the same thing and it's just proof that it works yeah you know just proof that it works yeah you know just proof that it works yeah you know what I thought was really wonderful what I thought was really wonderful what I thought was really wonderful about the way he presented that was you about the way he presented that was you about the way he presented that was you know he didn't come on here and say like know he didn't come on here and say like know he didn't come on here and say like this is the right way to do things we this is the right way to do things we this is the right way to do things we should do it this way we should do it should do it this way we should do it should do it this way we should do it this way he came in and said here's my this way he came in and said here's my this way he came in and said here's my story here's how I felt about something story here's how I felt about something story here's how I felt about something here's the options that were presented here's the options that were presented here's the options that were presented to me I blew my mind when this was a to me I blew my mind when this was a to me I blew my mind when this was a possibility here's how I decided to possibility here's how I decided to possibility here's how I decided to pursue it and here's all of the pursue it and here's all of the pursue it and here's all of the emotional reasons why I went ahead and emotional reasons why I went ahead and emotional reasons why I went ahead and and did made these major changes to the and did made these major changes to the and did made these major changes to the the most important things driving my the most important things driving my the most important things driving my financial position so I could live this financial position so I could live this financial position so I could live this life and I think that that's like a life and I think that that's like a life and I think that that's like a really powerful way of communicating all really powerful way of communicating all really powerful way of communicating all this stuff and something that you can this stuff and something that you can this stuff and something that you can really relate to and understand you know really relate to and understand you know really relate to and understand you know sometimes I'm I know I'm guilty of sometimes I'm I know I'm guilty of sometimes I'm I know I'm guilty of thinking this person is not behaving thinking this person is not behaving thinking this person is not behaving very efficiently in pursuit of financial very efficiently in pursuit of financial very efficiently in pursuit of financial independence you don't get that from independence you don't get that from independence you don't get that from Scott at all right yeah and you know Scott at all right yeah and you know Scott at all right yeah and you know something that came up after we stopped something that came up after we stopped something that came up after we stopped recording but before we said goodbye to recording but before we said goodbye to recording but before we said goodbye to Scott completely is that this whole Scott completely is that this whole Scott completely is that this whole entire journey was two years long almost entire journey was two years long almost entire journey was two years long almost two years to the day that this episode two years to the day that this episode two years to the day that this episode releases is when he heard that releases is when he heard that releases is when he heard that first mister money mustache episode of first mister money mustache episode of first mister money mustache episode of the Tim Ferriss podcast and this is even the Tim Ferriss podcast and this is even the Tim Ferriss podcast and this is even more mind-blowing than the fact that he more mind-blowing than the fact that he more mind-blowing than the fact that he did this is the fact that he did this in did this is the fact that he did this in did this is the fact that he did this in two years yeah I mean it's it's it's two years yeah I mean it's it's it's two years yeah I mean it's it's it's such a repeatable scenario for you if such a repeatable scenario for you if such a repeatable scenario for you if you're you know anywhere close to you're you know anywhere close to you're you know anywhere close to similar situation both working full-time similar situation both working full-time similar situation both working full-time jobs in any city right and feeling like jobs in any city right and feeling like jobs in any city right and feeling like you're not living you know you're you're you're not living you know you're you're you're not living you know you're you're not getting ahead there's no point to not getting ahead there's no point to not getting ahead there's no point to what you're doing or there's no you know what you're doing or there's no you know what you're doing or there's no you know you know you're not happy or you want to you know you're not happy or you want to you know you're not happy or you want to make a change like this what he did have make a change like this what he did have make a change like this what he did have his thought process how we brought a his thought process how we brought a his thought process how we brought a spouse along all that stuff are I think spouse along all that stuff are I think spouse along all that stuff are I think really good nuggets of wisdom to think really good nuggets of wisdom to think really good nuggets of wisdom to think about how you can apply to your own life about how you can apply to your own life about how you can apply to your own life I absolutely agree so if you are new to I absolutely agree so if you are new to I absolutely agree so if you are new to this journey if you know somebody who's this journey if you know somebody who's this journey if you know somebody who's new to this journey if you know anybody new to this journey if you know anybody new to this journey if you know anybody who's having a difficult time convincing who's having a difficult time convincing who's having a difficult time convincing their spouse to go on to get on board their spouse to go on to get on board their spouse to go on to get on board with them please share this episode with with them please share this episode with with them please share this episode with them you can find it at BiggerPockets them you can find it at BiggerPockets them you can find it at BiggerPockets comm slash money show and it's comm slash money show and it's comm slash money show and it's obviously it's anywhere they have obviously it's anywhere they have obviously it's anywhere they have podcasts Scott should we get out of here podcasts Scott should we get out of here podcasts Scott should we get out of here we should but before we get out of here we should but before we get out of here we should but before we get out of here just quick plug if you enjoyed the show just quick plug if you enjoyed the show just quick plug if you enjoyed the show and you want to always listen to the and you want to always listen to the and you want to always listen to the BiggerPockets money podcast whatever we BiggerPockets money podcast whatever we BiggerPockets money podcast whatever we have a new one feel free to subscribe to have a new one feel free to subscribe to have a new one feel free to subscribe to us on itunes google play wherever it is us on itunes google play wherever it is us on itunes google play wherever it is that you're enjoying the podcast so that you're enjoying the podcast so that you're enjoying the podcast so thank you Scott click a little plug thank you Scott click a little plug thank you Scott click a little plug there thank you Scott yes please hit there thank you Scott yes please hit there thank you Scott yes please hit subscribe and we come out every Monday subscribe and we come out every Monday subscribe and we come out every Monday although every once in a while we have a although every once in a while we have a although every once in a while we have a bonus episode and you will get bonus episode and you will get bonus episode and you will get notification of that if you are notification of that if you are notification of that if you are subscribed to us alright from episode subscribed to us alright from episode subscribed to us alright from episode of the BiggerPockets money podcast this of the BiggerPockets money podcast this of the BiggerPockets money podcast this is Mindy Jensen and Scott judge and is Mindy Jensen and Scott judge and is Mindy Jensen and Scott judge and we're wishing you bigger pockets the we're wishing you bigger pockets the we're wishing you bigger pockets the sign up is courtesy of Dan who suggested sign up is courtesy of Dan who suggested sign up is courtesy of Dan who suggested it to me to do a private message you can it to me to do a private message you can it to me to do a private message you can private message me on BiggerPockets you private message me on BiggerPockets you private message me on BiggerPockets you can also email me at Mindy at can also email me at Mindy at can also email me at Mindy at BiggerPockets calm or scott at scott at BiggerPockets calm or scott at scott at BiggerPockets calm or scott at scott at bigger pockets calm you can send the bigger pockets calm you can send the bigger pockets calm you can send the show a note money at bigger pockets calm show a note money at bigger pockets calm show a note money at bigger pockets calm and there we go and there we go and there we go [Music] WEBVTT Kind: captions Language: en the American Dream is getting a college the American Dream is getting a college the American Dream is getting a college degree in this job and this white picket degree in this job and this white picket degree in this job and this white picket fence but all of that has this huge debt fence but all of that has this huge debt fence but all of that has this huge debt behind it right now percent of behind it right now percent of behind it right now percent of Americans have less than $, in Americans have less than $, in Americans have less than $, in savings and percent have no savings savings and percent have no savings savings and percent have no savings at all literally one paycheck from the at all literally one paycheck from the at all literally one paycheck from the edges this is not an individual problem edges this is not an individual problem edges this is not an individual problem this is something this is setting all of this is something this is setting all of this is something this is setting all of us how everybody sees money can make at us how everybody sees money can make at us how everybody sees money can make at ease you know the consumerism culture is ease you know the consumerism culture is ease you know the consumerism culture is harmful harmful harmful it really hurts people we are spending it really hurts people we are spending it really hurts people we are spending money we don't have to buy things we money we don't have to buy things we money we don't have to buy things we don't need to impress people we don't don't need to impress people we don't don't need to impress people we don't even know the standard narrative doesn't even know the standard narrative doesn't even know the standard narrative doesn't make sense we have to throw out that make sense we have to throw out that make sense we have to throw out that outdated advice and write a new rule outdated advice and write a new rule outdated advice and write a new rule book I realized even at the early stage book I realized even at the early stage book I realized even at the early stage that I'd sort of accidentally started that I'd sort of accidentally started that I'd sort of accidentally started the cult people have figured out that if the cult people have figured out that if the cult people have figured out that if you save half your income you can all of you save half your income you can all of you save half your income you can all of a sudden move that retirement date up a sudden move that retirement date up a sudden move that retirement date up from years out to just years out I from years out to just years out I from years out to just years out I am financially independent a took us am financially independent a took us am financially independent a took us about nine years to save a million about nine years to save a million about nine years to save a million dollars the shockingly simple math dollars the shockingly simple math dollars the shockingly simple math behind early retirement you just see it behind early retirement you just see it behind early retirement you just see it and your life is changed forever walking and your life is changed forever walking and your life is changed forever walking out of the office right now that was out of the office right now that was out of the office right now that was really hard my name is Scott Riggins really hard my name is Scott Riggins really hard my name is Scott Riggins like most people money has never been like most people money has never been like most people money has never been easy for our family this year we're easy for our family this year we're easy for our family this year we're starting our own journey to financial starting our own journey to financial starting our own journey to financial independence to pick up your life and independence to pick up your life and independence to pick up your life and just move that is extraordinarily just move that is extraordinarily just move that is extraordinarily difficult there's something scary about difficult there's something scary about difficult there's something scary about going here's what's important to me in going here's what's important to me in going here's what's important to me in life here's how I'm I live my life we're life here's how I'm I live my life we're life here's how I'm I live my life we're doing a lot of things at once changing doing a lot of things at once changing doing a lot of things at once changing our entire lifestyle of spending too our entire lifestyle of spending too our entire lifestyle of spending too much money we're trying to figure out much money we're trying to figure out much money we're trying to figure out where we want to live while still where we want to live while still where we want to live while still working while raising a baby you have to working while raising a baby you have to working while raising a baby you have to reconcile in your mind that it's going reconcile in your mind that it's going reconcile in your mind that it's going to be a wild and bumpy ride to be a wild and bumpy ride to be a wild and bumpy ride the times can you do a $, fair no feel like can you do a $, fair no feel like can you do a $, fair no feel like we're gonna need help with this the math we're gonna need help with this the math we're gonna need help with this the math is super super simple the thing that's is super super simple the thing that's is super super simple the thing that's hard though is the psychology you know hard though is the psychology you know hard though is the psychology you know what's all this work for if I can't even what's all this work for if I can't even what's all this work for if I can't even live in a two-bedroom in a nice live in a two-bedroom in a nice live in a two-bedroom in a nice neighborhood what have we done I've made neighborhood what have we done I've made neighborhood what have we done I've made a huge mistake like it a huge mistake like it a huge mistake like it [Music] [Music] [Music] there's not been an easy journey with there's not been an easy journey with there's not been an easy journey with all the hardships with all the tears I all the hardships with all the tears I all the hardships with all the tears I don't wanna be Crichton this may not don't wanna be Crichton this may not don't wanna be Crichton this may not work and if it doesn't work really sold work and if it doesn't work really sold work and if it doesn't work really sold a bill of goods to my wife to my family a bill of goods to my wife to my family a bill of goods to my wife to my family we've invested everything this has to we've invested everything this has to we've invested everything this has to work work work [Music] WEBVTT Kind: captions Language: en kind of absorbing at all we had a full kind of absorbing at all we had a full kind of absorbing at all we had a full house we walked in that movie theater we house we walked in that movie theater we house we walked in that movie theater we were one of the last ones to walk in were one of the last ones to walk in were one of the last ones to walk in people were stunned they were kind of people were stunned they were kind of people were stunned they were kind of blown away by it and then we had a blown away by it and then we had a blown away by it and then we had a conversation for like minutes conversation for like minutes conversation for like minutes afterwards and people were just going on afterwards and people were just going on afterwards and people were just going on and chatting the fire movement is a and chatting the fire movement is a and chatting the fire movement is a movement of people who don't want to movement of people who don't want to movement of people who don't want to wait until they're years old to wait until they're years old to wait until they're years old to retire and live the life they want to retire and live the life they want to retire and live the life they want to live they're doing it in their s live they're doing it in their s live they're doing it in their s they're doing in their s they're doing they're doing in their s they're doing they're doing in their s they're doing with some simple steps taking control of with some simple steps taking control of with some simple steps taking control of your finances and they're doing what your finances and they're doing what your finances and they're doing what matters matters matters what's up we're here it's awesome we what's up we're here it's awesome we what's up we're here it's awesome we made it i watch the i watch the trailer made it i watch the i watch the trailer made it i watch the i watch the trailer this morning and you're in it yeah I'm this morning and you're in it yeah I'm this morning and you're in it yeah I'm in the trailer is like a split second I in the trailer is like a split second I in the trailer is like a split second I was like yeah so I'm in the trailer of was like yeah so I'm in the trailer of was like yeah so I'm in the trailer of the movie I didn't actually make the cut the movie I didn't actually make the cut the movie I didn't actually make the cut to actually be in the movie which is to actually be in the movie which is to actually be in the movie which is cool but my friend Scott and Taylor who cool but my friend Scott and Taylor who cool but my friend Scott and Taylor who are in the movie and there's a lot of are in the movie and there's a lot of are in the movie and there's a lot of other awesome bloggers and youtubers and other awesome bloggers and youtubers and other awesome bloggers and youtubers and podcasters who share the idea of podcasters who share the idea of podcasters who share the idea of financial independence that we're tyring financial independence that we're tyring financial independence that we're tyring early and I'm just excited that it's early and I'm just excited that it's early and I'm just excited that it's getting out there to the world this is getting out there to the world this is getting out there to the world this is so cool I'm in South Carolina and this so cool I'm in South Carolina and this so cool I'm in South Carolina and this fire movements here and I'm just getting fire movements here and I'm just getting fire movements here and I'm just getting to play a little tiny part of it so to play a little tiny part of it so to play a little tiny part of it so there's a little meetup ahead of time at there's a little meetup ahead of time at there's a little meetup ahead of time at a tael house right in front of the movie a tael house right in front of the movie a tael house right in front of the movie theater where people just get together theater where people just get together theater where people just get together or whatever beforehand to kind of yeah or whatever beforehand to kind of yeah or whatever beforehand to kind of yeah yeah so these are people hanging out yeah so these are people hanging out yeah so these are people hanging out these are people interested in the fire these are people interested in the fire these are people interested in the fire movement they want to go see the movement they want to go see the movement they want to go see the documentary and part of hanging out is documentary and part of hanging out is documentary and part of hanging out is just hey let's have a beer let's eat just hey let's have a beer let's eat just hey let's have a beer let's eat some food and just chat and meet people some food and just chat and meet people some food and just chat and meet people and people who are having similar goals and people who are having similar goals and people who are having similar goals similar values so we're gonna go see similar values so we're gonna go see similar values so we're gonna go see who's here talk to him cool who's here talk to him cool who's here talk to him cool [Music] the movie I was like I don't have any the movie I was like I don't have any the movie I was like I don't have any tickets we got that tickets for a movie tickets we got that tickets for a movie tickets we got that tickets for a movie now this work so we're gonna hope that now this work so we're gonna hope that now this work so we're gonna hope that they take this barcode and into the film they take this barcode and into the film they take this barcode and into the film otherwise I'm gonna be like watching otherwise I'm gonna be like watching otherwise I'm gonna be like watching through a window at the family saving through a window at the family saving through a window at the family saving money is a struggle the problem is so money is a struggle the problem is so money is a struggle the problem is so severe the Federal Reserve found that severe the Federal Reserve found that severe the Federal Reserve found that the average American saves only about the average American saves only about the average American saves only about three percent of their income and nearly three percent of their income and nearly three percent of their income and nearly half of US households cannot come up half of US households cannot come up half of US households cannot come up with $ to cover an emergency without with $ to cover an emergency without with $ to cover an emergency without borrowing or selling something right now borrowing or selling something right now borrowing or selling something right now % of Americans have less than $, % of Americans have less than $, % of Americans have less than $, in savings and % have no savings at in savings and % have no savings at in savings and % have no savings at all it's just nice to be in a room and all it's just nice to be in a room and all it's just nice to be in a room and everybody kind of gets it and then it's everybody kind of gets it and then it's everybody kind of gets it and then it's also inspiring just to see that it can also inspiring just to see that it can also inspiring just to see that it can be done my wife has actually been be done my wife has actually been be done my wife has actually been driving us to save quite a bit so I'm driving us to save quite a bit so I'm driving us to save quite a bit so I'm excited about the idea of having excited about the idea of having excited about the idea of having better a direction to go with savings i better a direction to go with savings i better a direction to go with savings i opening pretty different opening pretty different opening pretty different i thought it was fantastic i thought it i thought it was fantastic i thought it i thought it was fantastic i thought it was very movie was awesome i read the was very movie was awesome i read the was very movie was awesome i read the book first and the movie brought it to book first and the movie brought it to book first and the movie brought it to life fire movement is very simple it life fire movement is very simple it life fire movement is very simple it means freedom freedom from the rat race means freedom freedom from the rat race means freedom freedom from the rat race freedom to determine your own destiny freedom to determine your own destiny freedom to determine your own destiny work for yourself not for somebody work for yourself not for somebody work for yourself not for somebody else's dream you can live the life that else's dream you can live the life that else's dream you can live the life that you want your family and buy back time you want your family and buy back time you want your family and buy back time [Music] [Music] [Music] it's over yeah so we just left playing it's over yeah so we just left playing it's over yeah so we just left playing with fire the documentary how'd it go with fire the documentary how'd it go with fire the documentary how'd it go kind of soaring at all we had a full kind of soaring at all we had a full kind of soaring at all we had a full house we walked in that movie theater we house we walked in that movie theater we house we walked in that movie theater we were one of the last ones to walk in I'm were one of the last ones to walk in I'm were one of the last ones to walk in I'm glad my ticket worked they let me into glad my ticket worked they let me into glad my ticket worked they let me into place and I'm just kind of blown away a place and I'm just kind of blown away a place and I'm just kind of blown away a lot of what I do with this blog and my lot of what I do with this blog and my lot of what I do with this blog and my youtube channel has been he's been youtube channel has been he's been youtube channel has been he's been virtual you know I see people online virtual you know I see people online virtual you know I see people online here we are in person as a hundred here we are in person as a hundred here we are in person as a hundred people in the room and watched the people in the room and watched the people in the room and watched the documentary people are stunned they were documentary people are stunned they were documentary people are stunned they were kind of blown away by it and then we had kind of blown away by it and then we had kind of blown away by it and then we had a conversation for like minutes a conversation for like minutes a conversation for like minutes afterwards and people were just going on afterwards and people were just going on afterwards and people were just going on and chatting and and kind of solving the and chatting and and kind of solving the and chatting and and kind of solving the lessons from the documentary and lessons from the documentary and lessons from the documentary and experiences which is awesome you know experiences which is awesome you know experiences which is awesome you know one of the things like my biggest one of the things like my biggest one of the things like my biggest takeaways tonight is this message of takeaways tonight is this message of takeaways tonight is this message of fire is very hopeful i people want to fire is very hopeful i people want to fire is very hopeful i people want to people want to change something in their people want to change something in their people want to change something in their life money has something to do with it life money has something to do with it life money has something to do with it but it's this idea that i want to do i but it's this idea that i want to do i but it's this idea that i want to do i want to do it matters like i want to want to do it matters like i want to want to do it matters like i want to almost spend my time with my kids i want almost spend my time with my kids i want almost spend my time with my kids i want to hang out I want to go on trips and to hang out I want to go on trips and to hang out I want to go on trips and when people get a taste of that it's when people get a taste of that it's when people get a taste of that it's like like like and that they grab after it and they're and that they grab after it and they're and that they grab after it and they're like how can I do it and so the next I like how can I do it and so the next I like how can I do it and so the next I think the takeaway here is a lot of think the takeaway here is a lot of think the takeaway here is a lot of stuff I'm writing a lot of stuff I'm stuff I'm writing a lot of stuff I'm stuff I'm writing a lot of stuff I'm doing this YouTube channel it's like how doing this YouTube channel it's like how doing this YouTube channel it's like how do I do this it says people for that do I do this it says people for that do I do this it says people for that and I'm just excited to bring it to hey and I'm just excited to bring it to hey and I'm just excited to bring it to hey guys it's really been fun to have you guys it's really been fun to have you guys it's really been fun to have you here with me if you want to see more if here with me if you want to see more if here with me if you want to see more if you want to get more videos be sure to you want to get more videos be sure to you want to get more videos be sure to subscribe and let me know in the subscribe and let me know in the subscribe and let me know in the comments below I'd love to hear from you comments below I'd love to hear from you comments below I'd love to hear from you what you think about the idea of playing what you think about the idea of playing what you think about the idea of playing with fire you heard of the documentary with fire you heard of the documentary with fire you heard of the documentary have you seen it your town let me know have you seen it your town let me know have you seen it your town let me know what you think and let's have a what you think and let's have a what you think and let's have a discussion I'll be happy to respond to discussion I'll be happy to respond to discussion I'll be happy to respond to you and I'll see you in the next video you and I'll see you in the next video you and I'll see you in the next video [Music] WEBVTT Kind: captions Language: en welcome to the Doral or money podcast welcome to the Doral or money podcast welcome to the Doral or money podcast I'm your host Rob Berger today an I'm your host Rob Berger today an I'm your host Rob Berger today an episode we're gonna talk about the episode we're gonna talk about the episode we're gonna talk about the fire movement fire is financial fire movement fire is financial fire movement fire is financial independence retire early and it's come independence retire early and it's come independence retire early and it's come up in a number of interesting ways up in a number of interesting ways up in a number of interesting ways recently and I thought I'd spend an recently and I thought I'd spend an recently and I thought I'd spend an episode talking about it talking about episode talking about it talking about episode talking about it talking about what it is what it's not and how it what it is what it's not and how it what it is what it's not and how it changed my life me I changed my life changed my life me I changed my life changed my life me I changed my life even before there was a thing called the even before there was a thing called the even before there was a thing called the fire movement and it's something that I fire movement and it's something that I fire movement and it's something that I think everyone should join you may be in think everyone should join you may be in think everyone should join you may be in your s or s and saying Rob early your s or s and saying Rob early your s or s and saying Rob early retirement passed me by a decade ago retirement passed me by a decade ago retirement passed me by a decade ago actually it didn't and I think the fire actually it didn't and I think the fire actually it didn't and I think the fire movement can help just about anybody in movement can help just about anybody in movement can help just about anybody in just about any stage of life that's just about any stage of life that's just about any stage of life that's we're gonna talk about and I want to we're gonna talk about and I want to we're gonna talk about and I want to start with a couple of stories and this start with a couple of stories and this start with a couple of stories and this is how all of this sort of came to my is how all of this sort of came to my is how all of this sort of came to my mind recently I was at a conference that mind recently I was at a conference that mind recently I was at a conference that I go to every year called fincon by the I go to every year called fincon by the I go to every year called fincon by the way a couple of folks listening to the way a couple of folks listening to the way a couple of folks listening to the show were there and it was a lot of fun show were there and it was a lot of fun show were there and it was a lot of fun to meet them and you know it's my eighth to meet them and you know it's my eighth to meet them and you know it's my eighth year going and it's it's fun every year year going and it's it's fun every year year going and it's it's fun every year and at the conference and there were two and at the conference and there were two and at the conference and there were two conferences back-to-back that I attended conferences back-to-back that I attended conferences back-to-back that I attended but in one of them Clark Howard was but in one of them Clark Howard was but in one of them Clark Howard was there Clark Howard is a radio TV there Clark Howard is a radio TV there Clark Howard is a radio TV personality as a website and he's you personality as a website and he's you personality as a website and he's you know personal finance guy and you know I know personal finance guy and you know I know personal finance guy and you know I knew if Clark Howard had never met him knew if Clark Howard had never met him knew if Clark Howard had never met him didn't know his story and he said he's a didn't know his story and he said he's a didn't know his story and he said he's a great guy and I got to hear him speak great guy and I got to hear him speak great guy and I got to hear him speak and I and then he and I chatted a little and I and then he and I chatted a little and I and then he and I chatted a little bit afterward and I got to learn a bit afterward and I got to learn a bit afterward and I got to learn a little bit about his story and his story little bit about his story and his story little bit about his story and his story in a nutshell is this he went to college in a nutshell is this he went to college in a nutshell is this he went to college and he went to school at night his plan and he went to school at night his plan and he went to school at night his plan was for his parents to pay for college was for his parents to pay for college was for his parents to pay for college and they ran into some financial and they ran into some financial and they ran into some financial struggles and they couldn't so he went struggles and they couldn't so he went struggles and they couldn't so he went to school at night and worked when he to school at night and worked when he to school at night and worked when he graduated he decided he was gonna live graduated he decided he was gonna live graduated he decided he was gonna live on every other paycheck now he's in his on every other paycheck now he's in his on every other paycheck now he's in his s now so this was some time ago but he s now so this was some time ago but he s now so this was some time ago but he decided I'm gonna live on every other decided I'm gonna live on every other decided I'm gonna live on every other paycheck so effectively he was saving paycheck so effectively he was saving paycheck so effectively he was saving % of his take-home pay and that was % of his take-home pay and that was % of his take-home pay and that was his plan and that's what he did his plan and that's what he did his plan and that's what he did and in a couple of years he was able to and in a couple of years he was able to and in a couple of years he was able to buy a foreclosure and then he started he buy a foreclosure and then he started he buy a foreclosure and then he started he decided to start a travel business decided to start a travel business decided to start a travel business travel agency and so he started a travel travel agency and so he started a travel travel agency and so he started a travel agency and opened up an agency and opened up an agency and opened up an location and then another location and location and then another location and location and then another location and long story short by the age of he long story short by the age of he long story short by the age of he sold his Travel Agency company and he sold his Travel Agency company and he sold his Travel Agency company and he retired he was done cashed in he's out retired he was done cashed in he's out retired he was done cashed in he's out living in Florida on the beach with his living in Florida on the beach with his living in Florida on the beach with his family love and life that's Clark Howard family love and life that's Clark Howard family love and life that's Clark Howard now of course there's more to the story now of course there's more to the story now of course there's more to the story because of I think some health issues because of I think some health issues because of I think some health issues with his parents he moved back to with his parents he moved back to with his parents he moved back to Atlanta and one day a radio station Atlanta and one day a radio station Atlanta and one day a radio station called and said hey I know you have this called and said hey I know you have this called and said hey I know you have this background and travel do you mind coming background and travel do you mind coming background and travel do you mind coming on the show as a guest for one of our on the show as a guest for one of our on the show as a guest for one of our our radio programming slots and we you our radio programming slots and we you our radio programming slots and we you know talked about travel sure so he goes know talked about travel sure so he goes know talked about travel sure so he goes on the show they like him they ask him on the show they like him they ask him on the show they like him they ask him to come back he comes back eventually to come back he comes back eventually to come back he comes back eventually they say would you like your own show they say would you like your own show they say would you like your own show talking about travel and so well sure talking about travel and so well sure talking about travel and so well sure why not and you know that kind of just why not and you know that kind of just why not and you know that kind of just snowballed into what he is today which snowballed into what he is today which snowballed into what he is today which is personal finance on the radio TV and is personal finance on the radio TV and is personal finance on the radio TV and but one thing he's always done is he's but one thing he's always done is he's but one thing he's always done is he's never spent most of his money even today never spent most of his money even today never spent most of his money even today he lives well well below his means and he lives well well below his means and he lives well well below his means and he works because he wants to not because he works because he wants to not because he works because he wants to not because he has to and he gives a large portion he has to and he gives a large portion he has to and he gives a large portion of what he has to charity and I thought of what he has to charity and I thought of what he has to charity and I thought this is exactly my playbook that's this is exactly my playbook that's this is exactly my playbook that's exactly what I do now and what I hope to exactly what I do now and what I hope to exactly what I do now and what I hope to do the rest of my life and so it was fun do the rest of my life and so it was fun do the rest of my life and so it was fun to hear his story I didn't know his to hear his story I didn't know his to hear his story I didn't know his background and he's just a genuinely background and he's just a genuinely background and he's just a genuinely nice guy but here I thought here's nice guy but here I thought here's nice guy but here I thought here's here's a fire movement guy who predates here's a fire movement guy who predates here's a fire movement guy who predates the actual fire movement by several the actual fire movement by several the actual fire movement by several decades and he had this figured out a decades and he had this figured out a decades and he had this figured out a long long time ago it's that story long long time ago it's that story long long time ago it's that story number one Clark Howard the second story number one Clark Howard the second story number one Clark Howard the second story also from the conference was a panel also from the conference was a panel also from the conference was a panel discussion around a documentary called discussion around a documentary called discussion around a documentary called playing with fire and it's a documentary playing with fire and it's a documentary playing with fire and it's a documentary that's going to come out I'm not sure that's going to come out I'm not sure that's going to come out I'm not sure when but they showed a trailer and it when but they showed a trailer and it when but they showed a trailer and it looked like a great movie and they had a looked like a great movie and they had a looked like a great movie and they had a panel of the folks that produced the panel of the folks that produced the panel of the folks that produced the movie but also a lot of folks from the movie but also a lot of folks from the movie but also a lot of folks from the fire movement so Pete from mister money fire movement so Pete from mister money fire movement so Pete from mister money mustache was there Paula from afford mustache was there Paula from afford mustache was there Paula from afford anything was there go curry cracker was anything was there go curry cracker was anything was there go curry cracker was there if you follow the fire movement there if you follow the fire movement there if you follow the fire movement you know all of these names but these you know all of these names but these you know all of these names but these are folks that are pursuing fire are folks that are pursuing fire are folks that are pursuing fire themselves that blog about what it what themselves that blog about what it what themselves that blog about what it what fire means and all of the the issues fire means and all of the the issues fire means and all of the the issues that can and that come with it including that can and that come with it including that can and that come with it including for example how to deal with retirement for example how to deal with retirement for example how to deal with retirement accounts if you retire in your s right accounts if you retire in your s right accounts if you retire in your s right you're not and a half yet so how do you're not and a half yet so how do you're not and a half yet so how do you deal with that issue and health you deal with that issue and health you deal with that issue and health insurance and all the issues that that insurance and all the issues that that insurance and all the issues that that you have to tackle they're good problems you have to tackle they're good problems you have to tackle they're good problems to have though I can tell you that and to have though I can tell you that and to have though I can tell you that and so in this panel discussion two things I so in this panel discussion two things I so in this panel discussion two things I found were particularly interesting found were particularly interesting found were particularly interesting there was the first is there was this there was the first is there was this there was the first is there was this debate between what's more important debate between what's more important debate between what's more important with fire is that the FI part of fire with fire is that the FI part of fire with fire is that the FI part of fire financial independence or is it the financial independence or is it the financial independence or is it the retire early part of fire and they there retire early part of fire and they there retire early part of fire and they there was there wasn't a consensus I think was there wasn't a consensus I think was there wasn't a consensus I think Pete from mister money mustache got it Pete from mister money mustache got it Pete from mister money mustache got it right though his view was that financial right though his view was that financial right though his view was that financial independence is really the goal but you independence is really the goal but you independence is really the goal but you need the carrot of early retirement to need the carrot of early retirement to need the carrot of early retirement to convince people that fire is worth convince people that fire is worth convince people that fire is worth pursuing and I think that's right the pursuing and I think that's right the pursuing and I think that's right the interesting thing is of all the people interesting thing is of all the people interesting thing is of all the people that I know that have achieved financial that I know that have achieved financial that I know that have achieved financial independence that he at a young age and independence that he at a young age and independence that he at a young age and to me early retirement would be anything to me early retirement would be anything to me early retirement would be anything in your like s s or even s none of in your like s s or even s none of in your like s s or even s none of them have literally checked out and do them have literally checked out and do them have literally checked out and do absolutely nothing to earn income they absolutely nothing to earn income they absolutely nothing to earn income they do something they blog they do do something they blog they do do something they blog they do freelancing they write they write books freelancing they write they write books freelancing they write they write books they do something that they love that they do something that they love that they do something that they love that also generates income now I suppose some also generates income now I suppose some also generates income now I suppose some could say we and then you're not really could say we and then you're not really could say we and then you're not really retired I there may be some truth to retired I there may be some truth to retired I there may be some truth to that I mean you're certainly not retired that I mean you're certainly not retired that I mean you're certainly not retired in the sense that you're drawing down on in the sense that you're drawing down on in the sense that you're drawing down on your financial assets but I can tell you your financial assets but I can tell you your financial assets but I can tell you from my own experience boy it feels from my own experience boy it feels from my own experience boy it feels really good I mean a night and day really good I mean a night and day really good I mean a night and day difference between work and the difference between work and the difference between work and the nine-to-five and doing other work that nine-to-five and doing other work that nine-to-five and doing other work that you love when you want and where you you love when you want and where you you love when you want and where you want want want so maybe retirement is on a continuum of so maybe retirement is on a continuum of so maybe retirement is on a continuum of some kind I can tell you it's a heck of some kind I can tell you it's a heck of some kind I can tell you it's a heck of a lot closer to retirement then slog a lot closer to retirement then slog a lot closer to retirement then slog into work five days a week and work in into work five days a week and work in into work five days a week and work in the nine-to-five the nine-to-five the nine-to-five so so that was the first sort of what I so so that was the first sort of what I so so that was the first sort of what I thought was interesting the debate and thought was interesting the debate and thought was interesting the debate and then the next interesting debate was then the next interesting debate was then the next interesting debate was whether when we hit the next bear market whether when we hit the next bear market whether when we hit the next bear market if the fire movement will implode if all if the fire movement will implode if all if the fire movement will implode if all of this great talk about early of this great talk about early of this great talk about early retirement will go up in smoke when the retirement will go up in smoke when the retirement will go up in smoke when the next or the next tech bubble next or the next tech bubble next or the next tech bubble or whatever hits us and everyone's or whatever hits us and everyone's or whatever hits us and everyone's portfolios are down by % I actually portfolios are down by % I actually portfolios are down by % I actually think the next bear market will have a think the next bear market will have a think the next bear market will have a lot of implications for a lot of lot of implications for a lot of lot of implications for a lot of different things Robo advisors how will different things Robo advisors how will different things Robo advisors how will they survive the next bear market I they survive the next bear market I they survive the next bear market I think the love affair we currently have think the love affair we currently have think the love affair we currently have with index funds will cool I mean index with index funds will cool I mean index with index funds will cool I mean index funds aren't going anywhere but you know funds aren't going anywhere but you know funds aren't going anywhere but you know they're all the rage right I mean that's they're all the rage right I mean that's they're all the rage right I mean that's where the smart money is because the where the smart money is because the where the smart money is because the indexes have by and large done so well indexes have by and large done so well indexes have by and large done so well over the last decade and when that over the last decade and when that over the last decade and when that changes then it'll be all active changes then it'll be all active changes then it'll be all active management and that's the brilliant way management and that's the brilliant way management and that's the brilliant way to go and I do think the fire movement to go and I do think the fire movement to go and I do think the fire movement will have some sort of reckoning but I will have some sort of reckoning but I will have some sort of reckoning but I don't think it's going anywhere but that don't think it's going anywhere but that don't think it's going anywhere but that was sort of the debate between the was sort of the debate between the was sort of the debate between the panelists and it was an interesting panelists and it was an interesting panelists and it was an interesting topic with very different views so topic with very different views so topic with very different views so that's the second story that's the second story that's the second story the third story uh in some ways may be the third story uh in some ways may be the third story uh in some ways may be the most fascinating so my friend Paula the most fascinating so my friend Paula the most fascinating so my friend Paula from afford anything who has a wonderful from afford anything who has a wonderful from afford anything who has a wonderful podcast I highly recommend it podcast I highly recommend it podcast I highly recommend it I had Suze Orman on the show now I don't I had Suze Orman on the show now I don't I had Suze Orman on the show now I don't I mean I confess I've never read a Suze I mean I confess I've never read a Suze I mean I confess I've never read a Suze Orman book you know I know who she is Orman book you know I know who she is Orman book you know I know who she is you know I'm not big into the shtick but you know I'm not big into the shtick but you know I'm not big into the shtick but she impacts a lot of people right and she impacts a lot of people right and she impacts a lot of people right and the first question Paula asked her was the first question Paula asked her was the first question Paula asked her was have you heard of the fire movement have you heard of the fire movement have you heard of the fire movement alright and Susie said of course I've alright and Susie said of course I've alright and Susie said of course I've heard of the fire movement sure right heard of the fire movement sure right heard of the fire movement sure right all right what do you think of it what all right what do you think of it what all right what do you think of it what do you think she said she said I hate it do you think she said she said I hate it do you think she said she said I hate it I hate it I hate it I hate it and I I hate it I hate it I hate it and I I hate it I hate it I hate it and I think she threw in one more I hate it think she threw in one more I hate it think she threw in one more I hate it and she went on to say and only in in a and she went on to say and only in in a and she went on to say and only in in a way that only Susie Harmon can it will way that only Susie Harmon can it will way that only Susie Harmon can it will be you know she gets into that sort of be you know she gets into that sort of be you know she gets into that sort of staccato deep voice slow rhythmic I came staccato deep voice slow rhythmic I came staccato deep voice slow rhythmic I came and mimicked it the biggest mistake you and mimicked it the biggest mistake you and mimicked it the biggest mistake you ever make ever make ever make and I'm thinking you don't and I'm thinking you don't and I'm thinking you don't know me very well Susie I've made some know me very well Susie I've made some know me very well Susie I've made some whoppers trust me we're retiring early whoppers trust me we're retiring early whoppers trust me we're retiring early ain't gonna be the biggest mistake this ain't gonna be the biggest mistake this ain't gonna be the biggest mistake this guy ever made not even you know by a guy ever made not even you know by a guy ever made not even you know by a country mile I won't even make my top country mile I won't even make my top country mile I won't even make my top ten list okay she hates it and I thought ten list okay she hates it and I thought ten list okay she hates it and I thought I listened to the whole podcast and in I listened to the whole podcast and in I listened to the whole podcast and in the site of the podcast following it the site of the podcast following it the site of the podcast following it Paula did a great job of sort of giving Paula did a great job of sort of giving Paula did a great job of sort of giving her own views of the interview and it her own views of the interview and it her own views of the interview and it kind of blew up within the personal kind of blew up within the personal kind of blew up within the personal finance space I mean it was mentioned in finance space I mean it was mentioned in finance space I mean it was mentioned in Forbes CNBC people were commenting on it Forbes CNBC people were commenting on it Forbes CNBC people were commenting on it so I recommend that the the podcast so I recommend that the the podcast so I recommend that the the podcast episodes I mean if nothing else for episodes I mean if nothing else for episodes I mean if nothing else for their entertainment value but I really a their entertainment value but I really a their entertainment value but I really a pond reflecting on that podcast that pond reflecting on that podcast that pond reflecting on that podcast that interview I really think Suze one missed interview I really think Suze one missed interview I really think Suze one missed an opportunity and two did a real an opportunity and two did a real an opportunity and two did a real disservice to the folks that follow her disservice to the folks that follow her disservice to the folks that follow her and it's not that she didn't raise some and it's not that she didn't raise some and it's not that she didn't raise some valid points although I think she raised valid points although I think she raised valid points although I think she raised them in an odd way but the fact of the them in an odd way but the fact of the them in an odd way but the fact of the matter is the fire movement stands for a matter is the fire movement stands for a matter is the fire movement stands for a lot of things that I believe everyone lot of things that I believe everyone lot of things that I believe everyone should pursue financial independence we should pursue financial independence we should pursue financial independence we why wouldn't you pursue financial why wouldn't you pursue financial why wouldn't you pursue financial independence what why shouldn't that be independence what why shouldn't that be independence what why shouldn't that be a goal I don't you know it baffles me a goal I don't you know it baffles me a goal I don't you know it baffles me I think Suze was focused on this this I think Suze was focused on this this I think Suze was focused on this this she had this mental image of everyone in she had this mental image of everyone in she had this mental image of everyone in the fire movement you know retiring when the fire movement you know retiring when the fire movement you know retiring when they're never doing another thing the they're never doing another thing the they're never doing another thing the rest of their lives that earned income rest of their lives that earned income rest of their lives that earned income and I think in that sense maybe she and I think in that sense maybe she and I think in that sense maybe she doesn't understand the fire movement as doesn't understand the fire movement as doesn't understand the fire movement as much as she thinks she does you know one much as she thinks she does you know one much as she thinks she does you know one of her her her chief complaint was of her her her chief complaint was of her her her chief complaint was interesting I learned more about interesting I learned more about interesting I learned more about actually Suze Suze Orman in the actually Suze Suze Orman in the actually Suze Suze Orman in the interview than I did the fire movement interview than I did the fire movement interview than I did the fire movement she lives in fear deep-seated fear of she lives in fear deep-seated fear of she lives in fear deep-seated fear of things that can go wrong and I'm a big things that can go wrong and I'm a big things that can go wrong and I'm a big believer in planning you know I'm the believer in planning you know I'm the believer in planning you know I'm the I'm the guy with a binder in case I get I'm the guy with a binder in case I get I'm the guy with a binder in case I get hit by a truck right but you can go too hit by a truck right but you can go too hit by a truck right but you can go too far and I mean one of her just to give far and I mean one of her just to give far and I mean one of her just to give you a flavor and I do hope you listen to you a flavor and I do hope you listen to you a flavor and I do hope you listen to the podcast but two of her objections to the podcast but two of her objections to the podcast but two of her objections to the fire movement I found curious and by the fire movement I found curious and by the fire movement I found curious and by the way all of them sort of dealt with the way all of them sort of dealt with the way all of them sort of dealt with really bad things can happen in life and really bad things can happen in life and really bad things can happen in life and so you should work as long as you're so you should work as long as you're so you should work as long as you're able to that able to that able to that solution to the the fear that bad things solution to the the fear that bad things solution to the the fear that bad things can happen and of course we all know bad can happen and of course we all know bad can happen and of course we all know bad things can happen things can happen things can happen but her to the to bad things that she but her to the to bad things that she but her to the to bad things that she mentioned she mentioned others but these mentioned she mentioned others but these mentioned she mentioned others but these were the two that kind of stuck with me were the two that kind of stuck with me were the two that kind of stuck with me one was you know you really need one was you know you really need one was you know you really need disability insurance disability disability insurance disability disability insurance disability insurance covers you if you get hurt and insurance covers you if you get hurt and insurance covers you if you get hurt and can't work and it'll replace some can't work and it'll replace some can't work and it'll replace some portion of your income they said if you portion of your income they said if you portion of your income they said if you don't have a job with income you can't don't have a job with income you can't don't have a job with income you can't get disability insurance and that kind get disability insurance and that kind get disability insurance and that kind of made me chuckle it's kind of like of made me chuckle it's kind of like of made me chuckle it's kind of like saying you got to have a car how are you saying you got to have a car how are you saying you got to have a car how are you gonna buy car insurance gonna buy car insurance gonna buy car insurance I think her point was if you're relying I think her point was if you're relying I think her point was if you're relying on investments for your income you can't on investments for your income you can't on investments for your income you can't insure your stream of income from insure your stream of income from insure your stream of income from investments like you can insure your investments like you can insure your investments like you can insure your your earned income through disability your earned income through disability your earned income through disability insurance of course that's not right insurance of course that's not right insurance of course that's not right right I mean you could always annuitize right I mean you could always annuitize right I mean you could always annuitize your portfolio if you wanted to and your portfolio if you wanted to and your portfolio if you wanted to and that's gonna be as safe and it's from an that's gonna be as safe and it's from an that's gonna be as safe and it's from an insurance company or it's gonna be as insurance company or it's gonna be as insurance company or it's gonna be as safe as disability insurance I'm not safe as disability insurance I'm not safe as disability insurance I'm not suggesting we go out and annuitize our suggesting we go out and annuitize our suggesting we go out and annuitize our portfolio I just think it's the but portfolio I just think it's the but portfolio I just think it's the but anyway that was the first kind of thing anyway that was the first kind of thing anyway that was the first kind of thing that I thought was bizarre the second that I thought was bizarre the second that I thought was bizarre the second one was her she kind of ran through this one was her she kind of ran through this one was her she kind of ran through this this tragedy that could befall any of us this tragedy that could befall any of us this tragedy that could befall any of us apparently a hurricane could come in and apparently a hurricane could come in and apparently a hurricane could come in and we of course we've had some hurricanes we of course we've had some hurricanes we of course we've had some hurricanes and your house could get flooded so I and your house could get flooded so I and your house could get flooded so I guess you live on the coast in this guess you live on the coast in this guess you live on the coast in this scenario and you might not have scenario and you might not have scenario and you might not have insurance and I'm thinking well then insurance and I'm thinking well then insurance and I'm thinking well then again you might alright but you'll find again you might alright but you'll find again you might alright but you'll find you don't have insurance and then the you don't have insurance and then the you don't have insurance and then the floodwaters recede and what comes next floodwaters recede and what comes next floodwaters recede and what comes next mold and you don't have insurance for mold and you don't have insurance for mold and you don't have insurance for the mold so they have to tear down your the mold so they have to tear down your the mold so they have to tear down your house I'm not kidding house I'm not kidding house I'm not kidding this was one of the objections to the this was one of the objections to the this was one of the objections to the fire movement uh I don't know I you know fire movement uh I don't know I you know fire movement uh I don't know I you know move to Ohio I'm not sure what the move to Ohio I'm not sure what the move to Ohio I'm not sure what the answer to that would it buy insurance answer to that would it buy insurance answer to that would it buy insurance maybe uh it just it just seemed to me maybe uh it just it just seemed to me maybe uh it just it just seemed to me that it wasn't a well-thought-out that it wasn't a well-thought-out that it wasn't a well-thought-out assessment of the fire movement not that assessment of the fire movement not that assessment of the fire movement not that you know bad things can happen we do you know bad things can happen we do you know bad things can happen we do need I have earthquake insurance on my need I have earthquake insurance on my need I have earthquake insurance on my home I live in Virginia so I'm a big home I live in Virginia so I'm a big home I live in Virginia so I'm a big believer in insurance particularly over believer in insurance particularly over believer in insurance particularly over events that I can't self insure right events that I can't self insure right events that I can't self insure right and you know I don't want to lose my and you know I don't want to lose my and you know I don't want to lose my entire investment in my house if an entire investment in my house if an entire investment in my house if an earthquake should hit Virginia and you earthquake should hit Virginia and you earthquake should hit Virginia and you might be saying well but what are the might be saying well but what are the might be saying well but what are the odds of that no they're not good at all odds of that no they're not good at all odds of that no they're not good at all and I and I and I great because that keeps my insurance great because that keeps my insurance great because that keeps my insurance costs low right I mean but so I'm a big costs low right I mean but so I'm a big costs low right I mean but so I'm a big believer in planning you know you plan believer in planning you know you plan believer in planning you know you plan for the worst you hope for the best I for the worst you hope for the best I for the worst you hope for the best I get that I the whole hurricane flood get that I the whole hurricane flood get that I the whole hurricane flood mold tear down your house scenario I'm mold tear down your house scenario I'm mold tear down your house scenario I'm not feeling that one exactly but you not feeling that one exactly but you not feeling that one exactly but you know I guess you get insurance so I know I guess you get insurance so I know I guess you get insurance so I really thought Suze missed an really thought Suze missed an really thought Suze missed an opportunity to embrace something that I opportunity to embrace something that I opportunity to embrace something that I think stands for a lot of good things think stands for a lot of good things think stands for a lot of good things and I think it's absolutely fine to say and I think it's absolutely fine to say and I think it's absolutely fine to say if you're going to really retire in your if you're going to really retire in your if you're going to really retire in your s or s or maybe even your s s or s or maybe even your s s or s or maybe even your s there's a lot of things you need to there's a lot of things you need to there's a lot of things you need to think about and plan for I totally agree think about and plan for I totally agree think about and plan for I totally agree but to hate it hate it hate it hate it but to hate it hate it hate it hate it but to hate it hate it hate it hate it hate it you're gonna have mold in your hate it you're gonna have mold in your hate it you're gonna have mold in your house and tear down your house and in house and tear down your house and in house and tear down your house and in fairness you know this was an hour long fairness you know this was an hour long fairness you know this was an hour long interview so if you listen to it you interview so if you listen to it you interview so if you listen to it you know there's a lot more going on know there's a lot more going on know there's a lot more going on although I think I've summarized it although I think I've summarized it although I think I've summarized it pretty well okay so those are the three pretty well okay so those are the three pretty well okay so those are the three stories that led me to this podcast and stories that led me to this podcast and stories that led me to this podcast and so what I want to do for the rest of the so what I want to do for the rest of the so what I want to do for the rest of the show is tell you my story and from that show is tell you my story and from that show is tell you my story and from that story my thoughts on the fire movement story my thoughts on the fire movement story my thoughts on the fire movement so my foray into the fire movement and so my foray into the fire movement and so my foray into the fire movement and it didn't the fire movement as we know it didn't the fire movement as we know it didn't the fire movement as we know it today didn't exist but it dates back it today didn't exist but it dates back it today didn't exist but it dates back to it was then that I made partner to it was then that I made partner to it was then that I made partner at the law firm so I worked at a firm at the law firm so I worked at a firm at the law firm so I worked at a firm called Winston and strong which is this called Winston and strong which is this called Winston and strong which is this international big firm bla bla bla was a international big firm bla bla bla was a international big firm bla bla bla was a summer associate which is what they call summer associate which is what they call summer associate which is what they call you when you work at a firm in the you when you work at a firm in the you when you work at a firm in the summer between your second and third summer between your second and third summer between your second and third years of law school and then I joined years of law school and then I joined years of law school and then I joined the firm as an associate in the the firm as an associate in the the firm as an associate in the litigation group in Washington DC and litigation group in Washington DC and litigation group in Washington DC and the partnership track there's eight the partnership track there's eight the partnership track there's eight years so you know fast forward eight years so you know fast forward eight years so you know fast forward eight years it's your--it's year I make years it's your--it's year I make years it's your--it's year I make partner and I do what I think most a lot partner and I do what I think most a lot partner and I do what I think most a lot of people do join the country club of people do join the country club of people do join the country club bought my wife and I fancy watches bought my wife and I fancy watches bought my wife and I fancy watches bought I bought my wife and I fancy cars bought I bought my wife and I fancy cars bought I bought my wife and I fancy cars you know I spent the money now we it you know I spent the money now we it you know I spent the money now we it wasn't that we didn't save anything I wasn't that we didn't save anything I wasn't that we didn't save anything I was maxing out our k and saving even was maxing out our k and saving even was maxing out our k and saving even a little bit more but I mean compared to a little bit more but I mean compared to a little bit more but I mean compared to what we could have saved I was saving what we could have saved I was saving what we could have saved I was saving peanuts I was you know living the peanuts I was you know living the peanuts I was you know living the American dream as some people imagine it American dream as some people imagine it American dream as some people imagine it as I imagined it then the funny thing is as I imagined it then the funny thing is as I imagined it then the funny thing is what I was really doing if you want to what I was really doing if you want to what I was really doing if you want to get into the the psychology of it as I get into the the psychology of it as I get into the the psychology of it as I was trying to relive my father's life was trying to relive my father's life was trying to relive my father's life who belonged to a country club and had who belonged to a country club and had who belonged to a country club and had the fancy car and fancy watches and know the fancy car and fancy watches and know the fancy car and fancy watches and know that I appreciated that what now seems that I appreciated that what now seems that I appreciated that what now seems quite obvious to me at the time but quite obvious to me at the time but quite obvious to me at the time but that's what I was doing and you go to that's what I was doing and you go to that's what I was doing and you go to so I've only been a partner two so I've only been a partner two so I've only been a partner two years and it starts to dawn on me I'm a years and it starts to dawn on me I'm a years and it starts to dawn on me I'm a slow learner but I eventually get there slow learner but I eventually get there slow learner but I eventually get there after two years of this it starts to after two years of this it starts to after two years of this it starts to dawn on me that I'm not any happier with dawn on me that I'm not any happier with dawn on me that I'm not any happier with this stuff than I was before had this this stuff than I was before had this this stuff than I was before had this stuff the other thing that dawned on me stuff the other thing that dawned on me stuff the other thing that dawned on me is I looked at other partners in the is I looked at other partners in the is I looked at other partners in the firm that were older than I and most of firm that were older than I and most of firm that were older than I and most of them weren't you know they they were I them weren't you know they they were I them weren't you know they they were I wouldn't say they were thrilled with wouldn't say they were thrilled with wouldn't say they were thrilled with their careers I mean you know it varied their careers I mean you know it varied their careers I mean you know it varied of course some were but there were a lot of course some were but there were a lot of course some were but there were a lot that were unhappy and it wasn't specific that were unhappy and it wasn't specific that were unhappy and it wasn't specific to Winston and strong I think Winston to Winston and strong I think Winston to Winston and strong I think Winston Strong's a great firm and in fact I end Strong's a great firm and in fact I end Strong's a great firm and in fact I end up going back there at the end of my up going back there at the end of my up going back there at the end of my career career career it wasn't about Winston and straw and it it wasn't about Winston and straw and it it wasn't about Winston and straw and it was just that you know the practice of was just that you know the practice of was just that you know the practice of law in a big firm big firm environment law in a big firm big firm environment law in a big firm big firm environment it just has it has its advantages but it it just has it has its advantages but it it just has it has its advantages but it has a lot of disadvantages and I thought has a lot of disadvantages and I thought has a lot of disadvantages and I thought you know I've only got one life to live you know I've only got one life to live you know I've only got one life to live I don't know that I want to do it my I don't know that I want to do it my I don't know that I want to do it my entire career at one place doing this entire career at one place doing this entire career at one place doing this and so in was sort of the start of and so in was sort of the start of and so in was sort of the start of what I would call my slow progress what I would call my slow progress what I would call my slow progress towards fire and I would say it lasted towards fire and I would say it lasted towards fire and I would say it lasted about five years before I fully embraced about five years before I fully embraced about five years before I fully embraced the idea of fire and then it was another the idea of fire and then it was another the idea of fire and then it was another five years after that no more like nine five years after that no more like nine five years after that no more like nine years after that before I would say I years after that before I would say I years after that before I would say I achieved financial independence so achieved financial independence so achieved financial independence so here's what happened in I left the here's what happened in I left the here's what happened in I left the firm now getting another job when you're firm now getting another job when you're firm now getting another job when you're a partner at a big firm moving to a partner at a big firm moving to a partner at a big firm moving to another job is not easy unless you have another job is not easy unless you have another job is not easy unless you have a large book of business but what I did a large book of business but what I did a large book of business but what I did was I went in the house I went to a was I went in the house I went to a was I went in the house I went to a company I went to KPMG consulting I'd company I went to KPMG consulting I'd company I went to KPMG consulting I'd done a lot of Technology litigation at done a lot of Technology litigation at done a lot of Technology litigation at Winston and straughn and so I went over Winston and straughn and so I went over Winston and straughn and so I went over to KPMG consulting to manage all of to KPMG consulting to manage all of to KPMG consulting to manage all of their technology litigation and then their technology litigation and then their technology litigation and then eventually managed all of their eventually managed all of their eventually managed all of their international international international litigation and disputes but in doing so litigation and disputes but in doing so litigation and disputes but in doing so I took a six-figure pay cut that was a I took a six-figure pay cut that was a I took a six-figure pay cut that was a big pay cut and we felt it you know I big pay cut and we felt it you know I big pay cut and we felt it you know I mean but but what I decided was I didn't mean but but what I decided was I didn't mean but but what I decided was I didn't want the rat race of trying you know at want the rat race of trying you know at want the rat race of trying you know at a large law firm you know you you you a large law firm you know you you you a large law firm you know you you you have the billable hours and you keep him have the billable hours and you keep him have the billable hours and you keep him up at , or and if you don't up at , or and if you don't up at , or and if you don't you're gone that's just the way it works you're gone that's just the way it works you're gone that's just the way it works at big firms and I thought you know I at big firms and I thought you know I at big firms and I thought you know I don't want that rat race and so I took don't want that rat race and so I took don't want that rat race and so I took this six-figure pay cut and I went in this six-figure pay cut and I went in this six-figure pay cut and I went in house and slowly I started to realize house and slowly I started to realize house and slowly I started to realize that all this stuff that I had acquired that all this stuff that I had acquired that all this stuff that I had acquired just wasn't making me happy so I started just wasn't making me happy so I started just wasn't making me happy so I started all this stuff I bought I started to all this stuff I bought I started to all this stuff I bought I started to sell it I ended up selling my car which sell it I ended up selling my car which sell it I ended up selling my car which was an Acura TL which for me was a fancy was an Acura TL which for me was a fancy was an Acura TL which for me was a fancy car I don't know what we may have some car I don't know what we may have some car I don't know what we may have some of you might I don't know what you think of you might I don't know what you think of you might I don't know what you think of an Acura I thought it was excellent I of an Acura I thought it was excellent I of an Acura I thought it was excellent I ended up getting I'm trying to remember ended up getting I'm trying to remember ended up getting I'm trying to remember the out a Ford Explorer know a Ford the out a Ford Explorer know a Ford the out a Ford Explorer know a Ford Escort and I make that anymore it's dick Escort and I make that anymore it's dick Escort and I make that anymore it's dick shift but that may have been before the shift but that may have been before the shift but that may have been before the Tesla before the Acura but I got rid of Tesla before the Acura but I got rid of Tesla before the Acura but I got rid of the Acura I think we just exchanged it the Acura I think we just exchanged it the Acura I think we just exchanged it for I just got rid of it because we had for I just got rid of it because we had for I just got rid of it because we had a minivan too and so we had three a minivan too and so we had three a minivan too and so we had three vehicles I think that's what happened I vehicles I think that's what happened I vehicles I think that's what happened I got rid of the Acura canceled the the got rid of the Acura canceled the the got rid of the Acura canceled the the country club membership and by the way country club membership and by the way country club membership and by the way if you blow into a country club and you if you blow into a country club and you if you blow into a country club and you enjoy it I'm not here to tell you to enjoy it I'm not here to tell you to enjoy it I'm not here to tell you to leave the country club but it wasn't leave the country club but it wasn't leave the country club but it wasn't enhancing my life and it's expensive you enhancing my life and it's expensive you enhancing my life and it's expensive you know not just the initiation fee but know not just the initiation fee but know not just the initiation fee but then the cost does it maintain the then the cost does it maintain the then the cost does it maintain the membership so I got rid of that I ended membership so I got rid of that I ended membership so I got rid of that I ended up selling my fancy watch had a up selling my fancy watch had a up selling my fancy watch had a Breitling gone Breitling gone Breitling gone so I started sort of unwinding all of so I started sort of unwinding all of so I started sort of unwinding all of these in hindsight ridiculous purchases these in hindsight ridiculous purchases these in hindsight ridiculous purchases and then you fast-forward to and I and then you fast-forward to and I and then you fast-forward to and I ended up leaving that job for another ended up leaving that job for another ended up leaving that job for another job in government and taking another pay job in government and taking another pay job in government and taking another pay cut so I'm like I'm like am I going in cut so I'm like I'm like am I going in cut so I'm like I'm like am I going in Reverse but each step I made my life got Reverse but each step I made my life got Reverse but each step I made my life got better more enjoyable more it got better more enjoyable more it got better more enjoyable more it got simpler all of these things I think are simpler all of these things I think are simpler all of these things I think are embraced by the fire movement in one embraced by the fire movement in one embraced by the fire movement in one form or another every story is different form or another every story is different form or another every story is different but I started to unwind the complexity but I started to unwind the complexity but I started to unwind the complexity unwind the large monthly expenses that unwind the large monthly expenses that unwind the large monthly expenses that had to go out the door to maintain this had to go out the door to maintain this had to go out the door to maintain this lifestyle and it wasn't perfect I lifestyle and it wasn't perfect I lifestyle and it wasn't perfect I certainly had setbacks but when you you certainly had setbacks but when you you certainly had setbacks but when you you moved to and said that change moved to and said that change moved to and said that change occurred in when I went to the occurred in when I went to the occurred in when I went to the government took another peg cut wasn't government took another peg cut wasn't government took another peg cut wasn't as big of a pickup I took another pay as big of a pickup I took another pay as big of a pickup I took another pay cut and it was here that and I mentioned cut and it was here that and I mentioned cut and it was here that and I mentioned this before I was this into the Dave this before I was this into the Dave this before I was this into the Dave Ramsey show which honestly I've probably Ramsey show which honestly I've probably Ramsey show which honestly I've probably listened to it a handful of times in my listened to it a handful of times in my listened to it a handful of times in my life but this was one of them and people life but this was one of them and people life but this was one of them and people were getting on their screaming that you were getting on their screaming that you were getting on their screaming that you know they're debt-free and that just you know they're debt-free and that just you know they're debt-free and that just you know I thought yeah that's that's what I know I thought yeah that's that's what I know I thought yeah that's that's what I want that was sort of my first aha want that was sort of my first aha want that was sort of my first aha moment that the best thing money can buy moment that the best thing money can buy moment that the best thing money can buy is financial freedom is financial freedom is financial freedom I had divested myself of all the crap I I had divested myself of all the crap I I had divested myself of all the crap I had bought and yeah I said this is it had bought and yeah I said this is it had bought and yeah I said this is it that's what I want I want to be that's what I want I want to be that's what I want I want to be debt-free but even more than being debt-free but even more than being debt-free but even more than being debt-free I wanted to be financially debt-free I wanted to be financially debt-free I wanted to be financially free and there they go hand-in-hand but free and there they go hand-in-hand but free and there they go hand-in-hand but they're not the same thing and so I they're not the same thing and so I they're not the same thing and so I wrote on that piece of paper that I've wrote on that piece of paper that I've wrote on that piece of paper that I've mentioned by will be totally mentioned by will be totally mentioned by will be totally debt-free that was in I debt-free that was in I debt-free that was in I started dough roller net it wasn't started dough roller net it wasn't started dough roller net it wasn't really I didn't started sort of track my really I didn't started sort of track my really I didn't started sort of track my journey to financial freedom I wasn't journey to financial freedom I wasn't journey to financial freedom I wasn't thinking of it that way to me it was thinking of it that way to me it was thinking of it that way to me it was okay this will be fun let's start a okay this will be fun let's start a okay this will be fun let's start a personal finance blog that was about the personal finance blog that was about the personal finance blog that was about the sum total of my thinking on that on that sum total of my thinking on that on that sum total of my thinking on that on that endeavor but it started to make money endeavor but it started to make money endeavor but it started to make money and not a lot at first in fact not a lot and not a lot at first in fact not a lot and not a lot at first in fact not a lot at all at first but over time it started at all at first but over time it started at all at first but over time it started to make a lot of money and we basically to make a lot of money and we basically to make a lot of money and we basically didn't spend it we used it to pay down didn't spend it we used it to pay down didn't spend it we used it to pay down debt we used it to save it didn't change debt we used it to save it didn't change debt we used it to save it didn't change our lifestyle one bit because by this our lifestyle one bit because by this our lifestyle one bit because by this time I knew that you know buying a bunch time I knew that you know buying a bunch time I knew that you know buying a bunch of stuff wasn't going to make me happier of stuff wasn't going to make me happier of stuff wasn't going to make me happier and you know most of the rest I and you know most of the rest I and you know most of the rest I continued the website continued the website continued the website I started this podcast in I did not I started this podcast in I did not I started this podcast in I did not reach my goal of being debt-free by reach my goal of being debt-free by reach my goal of being debt-free by but I was debt-free by I think it was but I was debt-free by I think it was but I was debt-free by I think it was I would say I reached financial I would say I reached financial I would say I reached financial independence probably before I was independence probably before I was independence probably before I was debt-free and I defined financial debt-free and I defined financial debt-free and I defined financial independence as having independence as having independence as having twenty-five times your annual expenses twenty-five times your annual expenses twenty-five times your annual expenses pre-tax so if you just to make the math pre-tax so if you just to make the math pre-tax so if you just to make the math easy if before taxes you live on easy if before taxes you live on easy if before taxes you live on grand meaning out of that hundred grand grand meaning out of that hundred grand grand meaning out of that hundred grand you pay your taxes plus everything else you pay your taxes plus everything else you pay your taxes plus everything else then financial independence from a then financial independence from a then financial independence from a mathematical perspective would be you've mathematical perspective would be you've mathematical perspective would be you've got . million bucks in the bank that's got . million bucks in the bank that's got . million bucks in the bank that's financial independence and for those of financial independence and for those of financial independence and for those of you that may not follow all that the you that may not follow all that the you that may not follow all that the reason I define it that way and this is reason I define it that way and this is reason I define it that way and this is a guideline it's not a hard and fast a guideline it's not a hard and fast a guideline it's not a hard and fast rule but it's because generally in rule but it's because generally in rule but it's because generally in retirement you can take % of your nest retirement you can take % of your nest retirement you can take % of your nest egg out in year in this case percent egg out in year in this case percent egg out in year in this case percent of . million would be under grant and of . million would be under grant and of . million would be under grant and then each year thereafter adjust the then each year thereafter adjust the then each year thereafter adjust the amount you take out by the rate of amount you take out by the rate of amount you take out by the rate of inflation so if it's percent the next inflation so if it's percent the next inflation so if it's percent the next year you take out one hundred and two year you take out one hundred and two year you take out one hundred and two thousand and you stand a reasonably good thousand and you stand a reasonably good thousand and you stand a reasonably good chance of having your money last through chance of having your money last through chance of having your money last through retirement so that's the idea behind retirement so that's the idea behind retirement so that's the idea behind that rule we're gonna talk a little bit that rule we're gonna talk a little bit that rule we're gonna talk a little bit about that in a minute about that in a minute about that in a minute and then so you know paid off my debt and then so you know paid off my debt and then so you know paid off my debt ended up selling dough roll or net as ended up selling dough roll or net as ended up selling dough roll or net as you know but I'm still I'm still around you know but I'm still I'm still around you know but I'm still I'm still around they haven't thrown me out on the street they haven't thrown me out on the street they haven't thrown me out on the street yet here I am on the podcast I'm doing yet here I am on the podcast I'm doing yet here I am on the podcast I'm doing some other things it's funny when I sold some other things it's funny when I sold some other things it's funny when I sold dough roller I assumed I would be living dough roller I assumed I would be living dough roller I assumed I would be living off of my investments going forward and off of my investments going forward and off of my investments going forward and I started to plan for that but as its I started to plan for that but as its I started to plan for that but as its turned out I'm doing a few other things turned out I'm doing a few other things turned out I'm doing a few other things it's earning enough money we don't we it's earning enough money we don't we it's earning enough money we don't we don't spend a lot and so we just don't spend a lot and so we just don't spend a lot and so we just continue to live off of a little bit of continue to live off of a little bit of continue to live off of a little bit of the income that I make and that my wife the income that I make and that my wife the income that I make and that my wife makes she does some part-time work for makes she does some part-time work for makes she does some part-time work for the gym where we retrain and we trained the gym where we retrain and we trained the gym where we retrain and we trained by the way we don't work out although my by the way we don't work out although my by the way we don't work out although my back is killing me today I was supposed back is killing me today I was supposed back is killing me today I was supposed to go to the gym in an hour I won't be to go to the gym in an hour I won't be to go to the gym in an hour I won't be there there there in any event so I'm not actually living in any event so I'm not actually living in any event so I'm not actually living off of our investments they're just off of our investments they're just off of our investments they're just sitting there sitting there sitting there which is great that's what I want them which is great that's what I want them which is great that's what I want them to do just sit there and yes I put them to do just sit there and yes I put them to do just sit there and yes I put them all and with a few exceptions with all and with a few exceptions with all and with a few exceptions with stocks I put them all in index funds and stocks I put them all in index funds and stocks I put them all in index funds and that's sort of my fire story it you know that's sort of my fire story it you know that's sort of my fire story it you know I've never considered myself sort of I've never considered myself sort of I've never considered myself sort of part of the in-crowd of the fire part of the in-crowd of the fire part of the in-crowd of the fire movement movement movement I know the folks are in the fire I know the folks are in the fire I know the folks are in the fire movement I see them once a year at the movement I see them once a year at the movement I see them once a year at the at fincon by the way next year in at fincon by the way next year in at fincon by the way next year in September it's in Washington DC September it's in Washington DC September it's in Washington DC of course I live in Northern Virginia I of course I live in Northern Virginia I of course I live in Northern Virginia I would love to have as many door role or would love to have as many door role or would love to have as many door role or podcast listeners at fincon even if you podcast listeners at fincon even if you podcast listeners at fincon even if you don't have a blog I think it's a great don't have a blog I think it's a great don't have a blog I think it's a great conference to go to and maybe we can conference to go to and maybe we can conference to go to and maybe we can figure out something to do together as a figure out something to do together as a figure out something to do together as a group so put that on your calendar next group so put that on your calendar next group so put that on your calendar next September that would be a lot of September that would be a lot of September that would be a lot of fun so you know I don't really kind of fun so you know I don't really kind of fun so you know I don't really kind of view myself as sort of on the inside of view myself as sort of on the inside of view myself as sort of on the inside of the fire movement and some could say the fire movement and some could say the fire movement and some could say I've got the FI part of it but I'm still I've got the FI part of it but I'm still I've got the FI part of it but I'm still not technically retired in the sense of not technically retired in the sense of not technically retired in the sense of living off my investments that's true living off my investments that's true living off my investments that's true and that's fine that's okay and that's fine that's okay and that's fine that's okay I mean retirement the notion of I mean retirement the notion of I mean retirement the notion of retirement today you know is changing retirement today you know is changing retirement today you know is changing particularly with the ability to work particularly with the ability to work particularly with the ability to work from home the ability to work from from home the ability to work from from home the ability to work from really anywhere where there's an really anywhere where there's an really anywhere where there's an internet connection depending on what internet connection depending on what internet connection depending on what you do I think has fundamentally changed you do I think has fundamentally changed you do I think has fundamentally changed how we see retirement and I'm okay with how we see retirement and I'm okay with how we see retirement and I'm okay with that that that I have no desire to stop doing anything I have no desire to stop doing anything I have no desire to stop doing anything that earns an income but what I want to that earns an income but what I want to that earns an income but what I want to do are things that I love and I wanted do are things that I love and I wanted do are things that I love and I wanted to be able to work when I want to work to be able to work when I want to work to be able to work when I want to work where I want to work and the great thing where I want to work and the great thing where I want to work and the great thing is if I want to quit for a year and do is if I want to quit for a year and do is if I want to quit for a year and do nothing I can do that nothing I can do that nothing I can do that not a problem so I really think Suze not a problem so I really think Suze not a problem so I really think Suze Orman I hope she rethinks it because she Orman I hope she rethinks it because she Orman I hope she rethinks it because she impacts a lot of people and I think she impacts a lot of people and I think she impacts a lot of people and I think she did her community a real disservice in did her community a real disservice in did her community a real disservice in that interview a real disservice but that interview a real disservice but that interview a real disservice but it's gonna she's gonna have to swallow it's gonna she's gonna have to swallow it's gonna she's gonna have to swallow her pride now it's kind of like Dave her pride now it's kind of like Dave her pride now it's kind of like Dave Ramsey and his % return on stocks I Ramsey and his % return on stocks I Ramsey and his % return on stocks I think it's a pride issue that's my best think it's a pride issue that's my best think it's a pride issue that's my best guess and I think with Suzy it might be guess and I think with Suzy it might be guess and I think with Suzy it might be the same thing I don't know but I think the same thing I don't know but I think the same thing I don't know but I think she really did her community a she really did her community a she really did her community a disservice in that interview so anyway disservice in that interview so anyway disservice in that interview so anyway are there things if you truly want to are there things if you truly want to are there things if you truly want to retire early meaning do nothing to earn retire early meaning do nothing to earn retire early meaning do nothing to earn income and live off of your investments income and live off of your investments income and live off of your investments that you need to think about well that you need to think about well that you need to think about well absolutely I mean half of course and absolutely I mean half of course and absolutely I mean half of course and it's something these are things that the it's something these are things that the it's something these are things that the fire movement discusses at length and fire movement discusses at length and fire movement discusses at length and the first one is insurance now with the the first one is insurance now with the the first one is insurance now with the Affordable Care Affordable Care Affordable Care it makes buying individual health it makes buying individual health it makes buying individual health insurance much easier it's not cheap but insurance much easier it's not cheap but insurance much easier it's not cheap but that's just something you have to factor that's just something you have to factor that's just something you have to factor into how much money you need every year into how much money you need every year into how much money you need every year and do your calculations right so it's and do your calculations right so it's and do your calculations right so it's another expense same is true you're not another expense same is true you're not another expense same is true you're not gonna get disability insurance because gonna get disability insurance because gonna get disability insurance because you won't need it right because you you won't need it right because you you won't need it right because you don't have a job but you you want to don't have a job but you you want to don't have a job but you you want to consider a long term care insurance now consider a long term care insurance now consider a long term care insurance now in our case well that's not true I in our case well that's not true I in our case well that's not true I started say we don't have it I do have started say we don't have it I do have started say we don't have it I do have some at the moment but long term we some at the moment but long term we some at the moment but long term we probably won't have it will be probably won't have it will be probably won't have it will be self-insured and that's okay for us self-insured and that's okay for us self-insured and that's okay for us given what long-term care costs given what long-term care costs given what long-term care costs long-term care insurance is it's kind of long-term care insurance is it's kind of long-term care insurance is it's kind of a racket there's a lot of things to a racket there's a lot of things to a racket there's a lot of things to consider with long-term care insurance consider with long-term care insurance consider with long-term care insurance including you know what the benefits including you know what the benefits including you know what the benefits gonna be if you need it gonna be if you need it gonna be if you need it when does it kick in how long does it when does it kick in how long does it when does it kick in how long does it last and the premiums get really really last and the premiums get really really last and the premiums get really really expensive as you get older but you know expensive as you get older but you know expensive as you get older but you know there are other things to consider do there are other things to consider do there are other things to consider do you have family that can help if you you have family that can help if you you have family that can help if you need the help need the help need the help can you self insure how much money do can you self insure how much money do can you self insure how much money do you have that could go to long-term care you have that could go to long-term care you have that could go to long-term care if you need it now this was something if you need it now this was something if you need it now this was something else though that Suze Orman said she else though that Suze Orman said she else though that Suze Orman said she said she spent something like said she spent something like said she spent something like two-and-a-half or three million dollars two-and-a-half or three million dollars two-and-a-half or three million dollars there's like thirty thousand dollars a there's like thirty thousand dollars a there's like thirty thousand dollars a month I think she said putting her mom month I think she said putting her mom month I think she said putting her mom in I guess a nursing home in I guess a nursing home in I guess a nursing home well okay she had the money to make that well okay she had the money to make that well okay she had the money to make that choice but I don't think any of us are choice but I don't think any of us are choice but I don't think any of us are gonna most of us are gonna make that gonna most of us are gonna make that gonna most of us are gonna make that same choice her point was you need like same choice her point was you need like same choice her point was you need like I think at one point she said grand I think at one point she said grand I think at one point she said grand was it it was yeah grand a year to was it it was yeah grand a year to was it it was yeah grand a year to live on because you've got all these live on because you've got all these live on because you've got all these potential costs of putting your parents potential costs of putting your parents potential costs of putting your parents in a nursing home plus your own say in a nursing home plus your own say in a nursing home plus your own say grand to live on and it just it was grand to live on and it just it was grand to live on and it just it was almost like divorced from reality it's almost like divorced from reality it's almost like divorced from reality it's like maybe she thinks that way because like maybe she thinks that way because like maybe she thinks that way because she's worth as she said many times by she's worth as she said many times by she's worth as she said many times by the way in the interview tens of the way in the interview tens of the way in the interview tens of millions of dollars but I don't think millions of dollars but I don't think millions of dollars but I don't think regular folk really that's not really regular folk really that's not really regular folk really that's not really their you know front and center their their you know front and center their their you know front and center their biggest concern how am I going to get by biggest concern how am I going to get by biggest concern how am I going to get by on three or four hundred grand a year in on three or four hundred grand a year in on three or four hundred grand a year in retirement so but but again these retirement so but but again these retirement so but but again these insurance issues are things you will insurance issues are things you will insurance issues are things you will need to think through what she didn't need to think through what she didn't need to think through what she didn't mention and I think is actually the mention and I think is actually the mention and I think is actually the biggest risk for early retirees is not biggest risk for early retirees is not biggest risk for early retirees is not insurance insurance is sort of the insurance insurance is sort of the insurance insurance is sort of the easy thing it's caught it's expensive easy thing it's caught it's expensive easy thing it's caught it's expensive you just need to factor in that cost the you just need to factor in that cost the you just need to factor in that cost the real difficulty is this the % rule what real difficulty is this the % rule what real difficulty is this the % rule what what no one or very few people talk what no one or very few people talk what no one or very few people talk about is that underline this % rule is about is that underline this % rule is about is that underline this % rule is that your investment still remain that your investment still remain that your investment still remain heavily in stocks right at a minimum heavily in stocks right at a minimum heavily in stocks right at a minimum but probably more like sixty stocks but probably more like sixty stocks but probably more like sixty stocks forty bonds why because you have to forty bonds why because you have to forty bonds why because you have to generate sufficient returns to not only generate sufficient returns to not only generate sufficient returns to not only cover that % but then to keep pace with cover that % but then to keep pace with cover that % but then to keep pace with inflation right you can't go a hundred inflation right you can't go a hundred inflation right you can't go a hundred percent bonds you won't the % rule percent bonds you won't the % rule percent bonds you won't the % rule won't work you'll in all of the back won't work you'll in all of the back won't work you'll in all of the back testing they do there'll be a far testing they do there'll be a far testing they do there'll be a far greater percentage of of hypothetical greater percentage of of hypothetical greater percentage of of hypothetical returns in this case in the bond market returns in this case in the bond market returns in this case in the bond market that will cause you to run out of money that will cause you to run out of money that will cause you to run out of money before before you die that's basically before before you die that's basically before before you die that's basically the issue right the goal here is to die the issue right the goal here is to die the issue right the goal here is to die before your money runs out and if you're before your money runs out and if you're before your money runs out and if you're all in bonds or heavily in bonds the all in bonds or heavily in bonds the all in bonds or heavily in bonds the math just doesn't doesn't work so math just doesn't doesn't work so math just doesn't doesn't work so at least probably more like and at least probably more like and at least probably more like and here's the problem and this is here's the problem and this is here's the problem and this is particularly acute if you're retiring in particularly acute if you're retiring in particularly acute if you're retiring in your s or s or even s is let's say your s or s or even s is let's say your s or s or even s is let's say you've got your . million and you're you've got your . million and you're you've got your . million and you're living off on your grand and then you're living off on your grand and then you're living off on your grand and then you're / portfolio drops by % / portfolio drops by % / portfolio drops by % well now you're million bucks and well now you're million bucks and well now you're million bucks and you're still spending a hundred grand a you're still spending a hundred grand a you're still spending a hundred grand a year right that gets really scary really year right that gets really scary really year right that gets really scary really fast now when they back tests the % fast now when they back tests the % fast now when they back tests the % rule they back test it against all kinds rule they back test it against all kinds rule they back test it against all kinds of markets good and bad you can of markets good and bad you can of markets good and bad you can certainly expect if you're retiring in certainly expect if you're retiring in certainly expect if you're retiring in your s or s that you're gonna have your s or s that you're gonna have your s or s that you're gonna have years where you lose % several times years where you lose % several times years where you lose % several times before you die right you're gonna go before you die right you're gonna go before you die right you're gonna go through several market cycles a heck if through several market cycles a heck if through several market cycles a heck if you retire in your s or s you're you retire in your s or s you're you retire in your s or s you're gonna go through several markets market gonna go through several markets market gonna go through several markets market cycles if you'll say live to be and I cycles if you'll say live to be and I cycles if you'll say live to be and I think it's going to be very very very think it's going to be very very very think it's going to be very very very very difficult for folks to stay very difficult for folks to stay very difficult for folks to stay invested at a / split if the markets invested at a / split if the markets invested at a / split if the markets down by % and let's assume you've left down by % and let's assume you've left down by % and let's assume you've left a career and a career and a career and can't go back to it and you don't really can't go back to it and you don't really can't go back to it and you don't really have any other other kind of work you have any other other kind of work you have any other other kind of work you couldn't do now I'm making a lot of couldn't do now I'm making a lot of couldn't do now I'm making a lot of assumptions I'm being very negative here assumptions I'm being very negative here assumptions I'm being very negative here right I think it's gonna freak a lot of right I think it's gonna freak a lot of right I think it's gonna freak a lot of people out and I don't know that people out and I don't know that people out and I don't know that everyone's gonna be able to withstand everyone's gonna be able to withstand everyone's gonna be able to withstand that stress to me that's the biggest that stress to me that's the biggest that stress to me that's the biggest risk of retiring early if again by early risk of retiring early if again by early risk of retiring early if again by early retirement we mean you don't do a thing retirement we mean you don't do a thing retirement we mean you don't do a thing in retirement to earn income now what in retirement to earn income now what in retirement to earn income now what I've just described may not apply to a I've just described may not apply to a I've just described may not apply to a lot of people right I mean take my own lot of people right I mean take my own lot of people right I mean take my own case if you know I'm doing things to case if you know I'm doing things to case if you know I'm doing things to earn income now but if I quit everything earn income now but if I quit everything earn income now but if I quit everything and two years from now I decided I and two years from now I decided I and two years from now I decided I wanted to work again I absolutely could wanted to work again I absolutely could wanted to work again I absolutely could go find work now I might not go back to go find work now I might not go back to go find work now I might not go back to a Winston and strong I might not even go a Winston and strong I might not even go a Winston and strong I might not even go back to law right but I absolutely could back to law right but I absolutely could back to law right but I absolutely could find meaningful work that made enough find meaningful work that made enough find meaningful work that made enough money to live on right so my risk in money to live on right so my risk in money to live on right so my risk in that sense is not great but every that sense is not great but every that sense is not great but every situation is different it helps that I situation is different it helps that I situation is different it helps that I have a law degree it helps that I live have a law degree it helps that I live have a law degree it helps that I live in in near Washington DC I mean the in in near Washington DC I mean the in in near Washington DC I mean the number of good just government jobs I number of good just government jobs I number of good just government jobs I could go to if I wanted to it helps that could go to if I wanted to it helps that could go to if I wanted to it helps that I have this background from running door I have this background from running door I have this background from running door roller for ten years so I can go into roller for ten years so I can go into roller for ten years so I can go into the the the journalism space or the the the the journalism space or the the the the journalism space or the online publishing space so I have online publishing space so I have online publishing space so I have options you may have more options than I options you may have more options than I options you may have more options than I have you may have fewer options this is have you may have fewer options this is have you may have fewer options this is something particularly for early something particularly for early something particularly for early retirees that I think you should retirees that I think you should retirees that I think you should carefully examine and assess your own carefully examine and assess your own carefully examine and assess your own risk personally I would not just retire risk personally I would not just retire risk personally I would not just retire in my s or s and do nothing I would in my s or s and do nothing I would in my s or s and do nothing I would retire if I could have in my s or s retire if I could have in my s or s retire if I could have in my s or s actually I did retire my for I quit law actually I did retire my for I quit law actually I did retire my for I quit law anyway I was when I retired from the anyway I was when I retired from the anyway I was when I retired from the practice of law and really I was about practice of law and really I was about practice of law and really I was about when I went to a part-time scheduled when I went to a part-time scheduled when I went to a part-time scheduled and made very little money from law but and made very little money from law but and made very little money from law but I didn't stop all work altogether I I didn't stop all work altogether I I didn't stop all work altogether I still found other things to do that you still found other things to do that you still found other things to do that you know I enjoyed I that I could do what I know I enjoyed I that I could do what I know I enjoyed I that I could do what I wanted where I wanted and that produced wanted where I wanted and that produced wanted where I wanted and that produced income that we can income that we can income that we can live off of and I think that's really live off of and I think that's really live off of and I think that's really that's the model that I see the most in that's the model that I see the most in that's the model that I see the most in the in the fire community and that's a the in the fire community and that's a the in the fire community and that's a model that I've enjoyed immensely and model that I've enjoyed immensely and model that I've enjoyed immensely and I'm thrilled you know again I didn't I'm thrilled you know again I didn't I'm thrilled you know again I didn't sort of I don't self-identify as part of sort of I don't self-identify as part of sort of I don't self-identify as part of the fire movement but that's exactly the fire movement but that's exactly the fire movement but that's exactly what I did and it's terrific now let me what I did and it's terrific now let me what I did and it's terrific now let me kind of wrap up this show with some kind of wrap up this show with some kind of wrap up this show with some thoughts on how you achieve financial thoughts on how you achieve financial thoughts on how you achieve financial independence we've talked about this you independence we've talked about this you independence we've talked about this you you may recall my podcast not long ago you may recall my podcast not long ago you may recall my podcast not long ago about the seven levels of financial about the seven levels of financial about the seven levels of financial freedom level seven being times your freedom level seven being times your freedom level seven being times your annual expenses how do you do that right annual expenses how do you do that right annual expenses how do you do that right I mean like what kind of numbers are we I mean like what kind of numbers are we I mean like what kind of numbers are we talking about well it's all a question talking about well it's all a question talking about well it's all a question of what percentage of your before tax of what percentage of your before tax of what percentage of your before tax income you save right of course if you income you save right of course if you income you save right of course if you think about this I called it the think about this I called it the think about this I called it the slingshot effect I'm thinking maybe I slingshot effect I'm thinking maybe I slingshot effect I'm thinking maybe I need to come up with a different name need to come up with a different name need to come up with a different name for it but let's imagine you make a for it but let's imagine you make a for it but let's imagine you make a living off of or you make a hundred living off of or you make a hundred living off of or you make a hundred grand and or let's say you spend grand and or let's say you spend grand and or let's say you spend grand including taxes and you're saving grand including taxes and you're saving grand including taxes and you're saving whatever let's just leave that open for whatever let's just leave that open for whatever let's just leave that open for a moment if you can reduce your expenses a moment if you can reduce your expenses a moment if you can reduce your expenses by grand so at a hundred grand you by grand so at a hundred grand you by grand so at a hundred grand you need to point five million right under need to point five million right under need to point five million right under our x rule by the way if you retire our x rule by the way if you retire our x rule by the way if you retire really early you may decide you need x really early you may decide you need x really early you may decide you need x but we'll stick with X for our but we'll stick with X for our but we'll stick with X for our purposes let's say you can shave off ten purposes let's say you can shave off ten purposes let's say you can shave off ten grand you stop spending grand now grand you stop spending grand now grand you stop spending grand now you're only spending ninety I say only you're only spending ninety I say only you're only spending ninety I say only it's still a lot of money well what it's still a lot of money well what it's still a lot of money well what you've done is lowered the bar right you've done is lowered the bar right you've done is lowered the bar right because times is less than because times is less than because times is less than times right so times is what times right so times is what times right so times is what . I guess you have , less let . I guess you have , less let . I guess you have , less let me just double check that with my me just double check that with my me just double check that with my calculator yeah . million so the gold calculator yeah . million so the gold calculator yeah . million so the gold that you have to reach you've lowered that you have to reach you've lowered that you have to reach you've lowered the bar or you've made it easier right the bar or you've made it easier right the bar or you've made it easier right you've turned a hundred-yard dash into a you've turned a hundred-yard dash into a you've turned a hundred-yard dash into a -yard - all right everyone else has to -yard - all right everyone else has to -yard - all right everyone else has to run a hundred yards because they're run a hundred yards because they're run a hundred yards because they're spending a hundred grand you don't you spending a hundred grand you don't you spending a hundred grand you don't you only have to run but it's more than only have to run but it's more than only have to run but it's more than that because now you have ten $, that because now you have ten $, that because now you have ten $, more to save so it's like not only do more to save so it's like not only do more to save so it's like not only do you only have to run yards while you only have to run yards while you only have to run yards while everyone else is running everyone else is running everyone else is running you're now faster you've actually sped you're now faster you've actually sped you're now faster you've actually sped up I don't know you've got a new pair of up I don't know you've got a new pair of up I don't know you've got a new pair of tennis shoes something is helping you tennis shoes something is helping you tennis shoes something is helping you run faster right in this case it's run faster right in this case it's run faster right in this case it's grand and so every dollar you can you grand and so every dollar you can you grand and so every dollar you can you can shave off of what you spend not only can shave off of what you spend not only can shave off of what you spend not only reduces the goal you have to reach but reduces the goal you have to reach but reduces the goal you have to reach but gives you more firepower to reach it gives you more firepower to reach it gives you more firepower to reach it right it's a double whammy I have to right it's a double whammy I have to right it's a double whammy I have to figure out my lingo here slingshot figure out my lingo here slingshot figure out my lingo here slingshot effect I picture the the spaceship going effect I picture the the spaceship going effect I picture the the spaceship going around the moon but I'm not sure that's around the moon but I'm not sure that's around the moon but I'm not sure that's quite right quite right quite right double whammy I'm not sure that sounds double whammy I'm not sure that sounds double whammy I'm not sure that sounds like a negative thing if you can think like a negative thing if you can think like a negative thing if you can think of a term for this leave it in the of a term for this leave it in the of a term for this leave it in the Facebook group dough roller dot net Facebook group dough roller dot net Facebook group dough roller dot net slash Facebook group I need something slash Facebook group I need something slash Facebook group I need something I'm it's just not working for me but in I'm it's just not working for me but in I'm it's just not working for me but in the event you get the idea and and so the event you get the idea and and so the event you get the idea and and so it's a very powerful thing and what I it's a very powerful thing and what I it's a very powerful thing and what I found is suppose people think you have found is suppose people think you have found is suppose people think you have it that sacrifice I mean where am I it that sacrifice I mean where am I it that sacrifice I mean where am I gonna get that extra grand I'm gonna gonna get that extra grand I'm gonna gonna get that extra grand I'm gonna have to eat out less I'm gonna have to have to eat out less I'm gonna have to have to eat out less I'm gonna have to you know not go on night it's nice of it you know not go on night it's nice of it you know not go on night it's nice of it I'm not gonna have a buy fewer clothes I'm not gonna have a buy fewer clothes I'm not gonna have a buy fewer clothes by a few or gadgets I don't know you're by a few or gadgets I don't know you're by a few or gadgets I don't know you're gonna do something right well there's gonna do something right well there's gonna do something right well there's plenty of ways to save money without plenty of ways to save money without plenty of ways to save money without changing your lifestyle like talked changing your lifestyle like talked changing your lifestyle like talked about that in the money audit just about that in the money audit just about that in the money audit just Google of money audit wonderfully if Google of money audit wonderfully if Google of money audit wonderfully if dough roller comes up first for the dough roller comes up first for the dough roller comes up first for the money audit it should but I don't know money audit it should but I don't know money audit it should but I don't know actually know if it does let's check it actually know if it does let's check it actually know if it does let's check it out and it does not fly to to to to to out and it does not fly to to to to to out and it does not fly to to to to to generic so do money audit and then door generic so do money audit and then door generic so do money audit and then door roller that ought to bring it up first roller that ought to bring it up first roller that ought to bring it up first thing is what to do if you get audited thing is what to do if you get audited thing is what to do if you get audited that's the second one the one and done that's the second one the one and done that's the second one the one and done method of saving serious dough now method of saving serious dough now method of saving serious dough now that's a good title the money audit you that's a good title the money audit you that's a good title the money audit you plenty of ways to save money without plenty of ways to save money without plenty of ways to save money without sacrifice but the other thing I found is sacrifice but the other thing I found is sacrifice but the other thing I found is you think it's sacrifice and it's just you think it's sacrifice and it's just you think it's sacrifice and it's just not we have a remarkable ability to not we have a remarkable ability to not we have a remarkable ability to adapt our level of happiness following adapt our level of happiness following adapt our level of happiness following good things and bad things when bad good things and bad things when bad good things and bad things when bad things happen our level of happiness things happen our level of happiness things happen our level of happiness goes down but it eventually comes back goes down but it eventually comes back goes down but it eventually comes back to sort of our norm and the same thing to sort of our norm and the same thing to sort of our norm and the same thing is when good things happen right that is when good things happen right that is when good things happen right that fancy car you bought that you just loved fancy car you bought that you just loved fancy car you bought that you just loved and it probably did increase your level and it probably did increase your level and it probably did increase your level of happiness for a bit six months later of happiness for a bit six months later of happiness for a bit six months later it's just a car that's taking you to it's just a car that's taking you to it's just a car that's taking you to your job that's all that is and so I your job that's all that is and so I your job that's all that is and so I don't think the the sacrifice is what we don't think the the sacrifice is what we don't think the the sacrifice is what we think we build it up in our minds to be think we build it up in our minds to be think we build it up in our minds to be a lot bigger than it a lot bigger than it a lot bigger than it than it really is having said all that than it really is having said all that than it really is having said all that so what do you need to me if you can so what do you need to me if you can so what do you need to me if you can save percent of your gross income save percent of your gross income save percent of your gross income you'll certainly achieve financial you'll certainly achieve financial you'll certainly achieve financial independence in a reasonable amount of independence in a reasonable amount of independence in a reasonable amount of time let's say under years which for time let's say under years which for time let's say under years which for some of you might say that's crazy some of you might say that's crazy some of you might say that's crazy that's not that's not good years are that's not that's not good years are that's not that's not good years are you kidding me but think about it if you kidding me but think about it if you kidding me but think about it if you're and you do that you know you're and you do that you know you're and you do that you know you've hit fi by and if you can save you've hit fi by and if you can save you've hit fi by and if you can save percent I think you're going to do it percent I think you're going to do it percent I think you're going to do it in to years and obviously if you in to years and obviously if you in to years and obviously if you can save more it's gonna really shorten can save more it's gonna really shorten can save more it's gonna really shorten it now of course that does depend on it now of course that does depend on it now of course that does depend on your returns right a / portfolio your returns right a / portfolio your returns right a / portfolio since according to Vanguard is our since according to Vanguard is our since according to Vanguard is our . percent average return but you got . percent average return but you got . percent average return but you got to stick with it right when the market to stick with it right when the market to stick with it right when the market goes down you can't bail and of course goes down you can't bail and of course goes down you can't bail and of course there's no guarantee it'll return nine there's no guarantee it'll return nine there's no guarantee it'll return nine point three percent going forward so point three percent going forward so point three percent going forward so this is all you know this is but this is this is all you know this is but this is this is all you know this is but this is the best information we have and you're the best information we have and you're the best information we have and you're gonna adjust it as you go and you say gonna adjust it as you go and you say gonna adjust it as you go and you say well that's hard they're saving % % well that's hard they're saving % % well that's hard they're saving % % yeah yeah it's it's it I think it tends yeah yeah it's it's it I think it tends yeah yeah it's it's it I think it tends to be hard easier than you think it's to be hard easier than you think it's to be hard easier than you think it's gonna be but I'm not here to tell you gonna be but I'm not here to tell you gonna be but I'm not here to tell you it's easy I mean think about it we're it's easy I mean think about it we're it's easy I mean think about it we're talking about rich achieving financial talking about rich achieving financial talking about rich achieving financial independence in to years of course independence in to years of course independence in to years of course it's not easy no no it's not and I'm not it's not easy no no it's not and I'm not it's not easy no no it's not and I'm not gonna pretend that it is but I do think gonna pretend that it is but I do think gonna pretend that it is but I do think it's doable for say middle-class folks I it's doable for say middle-class folks I it's doable for say middle-class folks I mean if you're struggling to get by and mean if you're struggling to get by and mean if you're struggling to get by and barely making enough to feed your family barely making enough to feed your family barely making enough to feed your family you have you have different things to you have you have different things to you have you have different things to deal with before you start talking about deal with before you start talking about deal with before you start talking about achieving you know some level of achieving you know some level of achieving you know some level of financial independence in to years financial independence in to years financial independence in to years and I get that but I think for most and I get that but I think for most and I get that but I think for most people listening to this podcast it's people listening to this podcast it's people listening to this podcast it's absolutely doable and by the way if absolutely doable and by the way if absolutely doable and by the way if you're listening and you're like you're listening and you're like you're listening and you're like whatever and you're s or s and whatever and you're s or s and whatever and you're s or s and you're saying Rob I'm just getting you're saying Rob I'm just getting you're saying Rob I'm just getting started you need the fire movement more started you need the fire movement more started you need the fire movement more than ever right because you're gonna than ever right because you're gonna than ever right because you're gonna have to do what the fire folks do have to do what the fire folks do have to do what the fire folks do starting today so that you can retire starting today so that you can retire starting today so that you can retire when you're or right and that's when you're or right and that's when you're or right and that's going to require some some choices but I going to require some some choices but I going to require some some choices but I think many of these choices that seem think many of these choices that seem think many of these choices that seem like sacrifice is the time you're going like sacrifice is the time you're going like sacrifice is the time you're going to be to be to be find out you know I'm just as happy I find out you know I'm just as happy I find out you know I'm just as happy I thought this would be a huge sacrifice thought this would be a huge sacrifice thought this would be a huge sacrifice and it's not that's part of like the and it's not that's part of like the and it's not that's part of like the four four pillars of that I recorded in four four pillars of that I recorded in four four pillars of that I recorded in the last episode I don't think we're not the last episode I don't think we're not the last episode I don't think we're not particularly good at knowing what's particularly good at knowing what's particularly good at knowing what's gonna make us happy we think we know gonna make us happy we think we know gonna make us happy we think we know what's gonna make us happy and we're what's gonna make us happy and we're what's gonna make us happy and we're wrong a lot of times that's why it's you wrong a lot of times that's why it's you wrong a lot of times that's why it's you you hear stories of people constantly you hear stories of people constantly you hear stories of people constantly chasing the next thing because they chasing the next thing because they chasing the next thing because they ain't happy and and and and catching the ain't happy and and and and catching the ain't happy and and and and catching the next thing it gives them some level of next thing it gives them some level of next thing it gives them some level of satisfaction for a bed but then their satisfaction for a bed but then their satisfaction for a bed but then their level of happiness just goes back to level of happiness just goes back to level of happiness just goes back to whatever steady state they have and they whatever steady state they have and they whatever steady state they have and they look to chase the next thing to try to look to chase the next thing to try to look to chase the next thing to try to make them happy and by the way I'm as make them happy and by the way I'm as make them happy and by the way I'm as guilty of that as anybody guilty of that as anybody guilty of that as anybody so I speak from experience so there you so I speak from experience so there you so I speak from experience so there you go go go that's my sort of high level take on that's my sort of high level take on that's my sort of high level take on fire my own personal experience with fire my own personal experience with fire my own personal experience with fire and if you're interested in fire and if you're interested in fire and if you're interested in learning more just google the fire learning more just google the fire learning more just google the fire movement you'll find tons of blogs movement you'll find tons of blogs movement you'll find tons of blogs obviously mister money mustache afford obviously mister money mustache afford obviously mister money mustache afford anything go curry cracker if you google anything go curry cracker if you google anything go curry cracker if you google the fire movement and I'm just gonna do the fire movement and I'm just gonna do the fire movement and I'm just gonna do this real quick let me let me just do this real quick let me let me just do this real quick let me let me just do fire movement hey the first thing that fire movement hey the first thing that fire movement hey the first thing that comes up is the Suze Orman interview oh comes up is the Suze Orman interview oh comes up is the Suze Orman interview oh my goodness she's gonna have to walk my goodness she's gonna have to walk my goodness she's gonna have to walk that one back there's by the way there's that one back there's by the way there's that one back there's by the way there's a reddit thread for fire movement and a reddit thread for fire movement and a reddit thread for fire movement and some of the blogs some of the blogs some of the blogs let me just see which ones I know interesting well mister money mustache interesting well mister money mustache interesting well mister money mustache of course right early retirement extreme of course right early retirement extreme of course right early retirement extreme that's another good one and I mentioned that's another good one and I mentioned that's another good one and I mentioned some others so there's what and once you some others so there's what and once you some others so there's what and once you dig into some of those then you'll find dig into some of those then you'll find dig into some of those then you'll find more and more and more resources I think more and more and more resources I think more and more and more resources I think it's I think in some way we all should it's I think in some way we all should it's I think in some way we all should embrace the fire movement as much as we embrace the fire movement as much as we embrace the fire movement as much as we can because it stands for a simple life can because it stands for a simple life can because it stands for a simple life high savings rate simple investing and high savings rate simple investing and high savings rate simple investing and well realizing that until next time the well realizing that until next time the well realizing that until next time the best thing money can buy is financial best thing money can buy is financial best thing money can buy is financial freedom you WEBVTT Kind: captions Language: en this video is about RV fire no not the this video is about RV fire no not the this video is about RV fire no not the fire you might be thinking about but the fire you might be thinking about but the fire you might be thinking about but the fire that is an acronym for financial fire that is an acronym for financial fire that is an acronym for financial independence retire early now how does independence retire early now how does independence retire early now how does that tie into RV living full-time well that tie into RV living full-time well that tie into RV living full-time well actually it does really well that's what actually it does really well that's what actually it does really well that's what we're going to talk about in this video we're going to talk about in this video we're going to talk about in this video [Music] [Music] [Music] I'm Tom would enjoy the journey dot life I'm Tom would enjoy the journey dot life I'm Tom would enjoy the journey dot life and this video is about living your RV and this video is about living your RV and this video is about living your RV for as cheap as you can so you can for as cheap as you can so you can for as cheap as you can so you can retire early and work only when you want retire early and work only when you want retire early and work only when you want to how bad do you want to get out of the to how bad do you want to get out of the to how bad do you want to get out of the rat race how bad would you like to rat race how bad would you like to rat race how bad would you like to retire early and live financially retire early and live financially retire early and live financially independent would you be willing to sell independent would you be willing to sell independent would you be willing to sell your new car sell your house not eat out your new car sell your house not eat out your new car sell your house not eat out not buy that cup of coffee or even do not buy that cup of coffee or even do not buy that cup of coffee or even do something even more extreme than that something even more extreme than that something even more extreme than that well that's some of the things that the well that's some of the things that the well that's some of the things that the followers of the fire movement do so followers of the fire movement do so followers of the fire movement do so they can retire early and live they can retire early and live they can retire early and live financially independent we did a video a financially independent we did a video a financially independent we did a video a few years ago about RV living under few years ago about RV living under few years ago about RV living under $, a month could you do it and that $, a month could you do it and that $, a month could you do it and that video got so many comments and a lot of video got so many comments and a lot of video got so many comments and a lot of people actually said that they were people actually said that they were people actually said that they were currently doing that right now currently doing that right now currently doing that right now so that should give you some inspiration so that should give you some inspiration so that should give you some inspiration that something like this is possible that something like this is possible that something like this is possible imagine what you could do if you were imagine what you could do if you were imagine what you could do if you were working your regular job now but lived working your regular job now but lived working your regular job now but lived far cheaper than you're currently doing far cheaper than you're currently doing far cheaper than you're currently doing right now how much could you save so right now how much could you save so right now how much could you save so starting out if you still need an RV starting out if you still need an RV starting out if you still need an RV maybe not get one that you have to make maybe not get one that you have to make maybe not get one that you have to make payments on get one used and something payments on get one used and something payments on get one used and something you can pay cash for if you look around you can pay cash for if you look around you can pay cash for if you look around there are v's as low as free if you there are v's as low as free if you there are v's as low as free if you really look around if you're handy with really look around if you're handy with really look around if you're handy with tools and you can fix things up you tools and you can fix things up you tools and you can fix things up you might spend as little as again free up might spend as little as again free up might spend as little as again free up to a few thousand dollars but it's to a few thousand dollars but it's to a few thousand dollars but it's something that would be livable and you something that would be livable and you something that would be livable and you would save on not having that RV payment would save on not having that RV payment would save on not having that RV payment at all or compared to like a house at all or compared to like a house at all or compared to like a house payment that could save you thousands of payment that could save you thousands of payment that could save you thousands of dollars a month just that alone now dollars a month just that alone now dollars a month just that alone now where would you stay well some RV parks where would you stay well some RV parks where would you stay well some RV parks in southern New Mexico are as little as in southern New Mexico are as little as in southern New Mexico are as little as two hundred and twenty-five dollars a two hundred and twenty-five dollars a two hundred and twenty-five dollars a month plus electricity and actually here month plus electricity and actually here month plus electricity and actually here in Florida we found an RV park that was in Florida we found an RV park that was in Florida we found an RV park that was only dollars a month and that was only dollars a month and that was only dollars a month and that was close to Tampa so you can greatly close to Tampa so you can greatly close to Tampa so you can greatly reduce your rent or housing expenses now reduce your rent or housing expenses now reduce your rent or housing expenses now you could even be more extreme than that you could even be more extreme than that you could even be more extreme than that if you want to do some boondocking and if you want to do some boondocking and if you want to do some boondocking and go that route so there's all different go that route so there's all different go that route so there's all different ways you could do it but let's say ways you could do it but let's say ways you could do it but let's say you're working from home you might want you're working from home you might want you're working from home you might want to have that consistent power and a to have that consistent power and a to have that consistent power and a consistent internet connection next you consistent internet connection next you consistent internet connection next you need to live need to live need to live minimally get rid of all of your minimally get rid of all of your minimally get rid of all of your depreciating assets all of your extra depreciating assets all of your extra depreciating assets all of your extra stuff we're gonna get rid of probably stuff we're gonna get rid of probably stuff we're gonna get rid of probably or % of the items you own right now or % of the items you own right now or % of the items you own right now now how small can you make your living now how small can you make your living now how small can you make your living expenses your expense footprint so to expenses your expense footprint so to expenses your expense footprint so to speak you need to put every living speak you need to put every living speak you need to put every living expense on trial for its life if you expense on trial for its life if you expense on trial for its life if you don't really need it like a must have don't really need it like a must have don't really need it like a must have then it needs to go you know no cable a then it needs to go you know no cable a then it needs to go you know no cable a basic phone you can get rid of the smart basic phone you can get rid of the smart basic phone you can get rid of the smart phone so many things like that that you phone so many things like that that you phone so many things like that that you just don't need can you add a second job just don't need can you add a second job just don't need can you add a second job a second form of income to increase your a second form of income to increase your a second form of income to increase your savings many in the fire movement choose savings many in the fire movement choose savings many in the fire movement choose to save times their current living to save times their current living to save times their current living expenses and once they hit that point expenses and once they hit that point expenses and once they hit that point that's when they actually retire and that's when they actually retire and that's when they actually retire and they live off just the interest of that they live off just the interest of that they live off just the interest of that savings or investments make it your goal savings or investments make it your goal savings or investments make it your goal to save at least % of your income or to save at least % of your income or to save at least % of your income or more how long could this take well it more how long could this take well it more how long could this take well it really depends on a lot of different really depends on a lot of different really depends on a lot of different things how big your living expenses are things how big your living expenses are things how big your living expenses are how much your savings rate is or what how much your savings rate is or what how much your savings rate is or what your investments produce return on your investments produce return on your investments produce return on investment so it could take you from a investment so it could take you from a investment so it could take you from a few years to a little longer than that few years to a little longer than that few years to a little longer than that but imagine what it would be like to but imagine what it would be like to but imagine what it would be like to retire years if not many years before retire years if not many years before retire years if not many years before you originally plan to retire and to you originally plan to retire and to you originally plan to retire and to work on projects that you only want to work on projects that you only want to work on projects that you only want to the stuff that you're passionate about the stuff that you're passionate about the stuff that you're passionate about now you might be looking at us and now you might be looking at us and now you might be looking at us and looking at a fairly new RV and a looking at a fairly new RV and a looking at a fairly new RV and a brand-new truck and saying well you guys brand-new truck and saying well you guys brand-new truck and saying well you guys are not doing it well that's true right are not doing it well that's true right are not doing it well that's true right now we are not doing the fire movement now we are not doing the fire movement now we are not doing the fire movement and there's actually different fire and there's actually different fire and there's actually different fire movements there's the lean fire movement movements there's the lean fire movement movements there's the lean fire movement that's the way I just explained or that's the way I just explained or that's the way I just explained or there's the fat fire movement which there's the fat fire movement which there's the fat fire movement which might be more like what we do might be more like what we do might be more like what we do and is all different versions it really and is all different versions it really and is all different versions it really depends on how extreme you want to be is depends on how extreme you want to be is depends on how extreme you want to be is the fire movement something you would do the fire movement something you would do the fire movement something you would do would you consider living this way or would you consider living this way or would you consider living this way or are you already on this path to are you already on this path to are you already on this path to financial freedom let us know in the financial freedom let us know in the financial freedom let us know in the comments and let us know if you have comments and let us know if you have comments and let us know if you have tips on reducing your living expenses tips on reducing your living expenses tips on reducing your living expenses actually we will put a link to our r.v actually we will put a link to our r.v actually we will put a link to our r.v under $ a month video down in the under $ a month video down in the under $ a month video down in the description even if you don't watch the description even if you don't watch the description even if you don't watch the video read the comments so much great video read the comments so much great video read the comments so much great information and tips in there on information and tips in there on information and tips in there on reducing your expenses hundreds and reducing your expenses hundreds and reducing your expenses hundreds and hundreds of comments and not only were hundreds of comments and not only were hundreds of comments and not only were there people in the comments that said there people in the comments that said there people in the comments that said they do it for less than a thousand a they do it for less than a thousand a they do it for less than a thousand a month there were some that do it for month there were some that do it for month there were some that do it for seven hundred dollars a month in the seven hundred dollars a month in the seven hundred dollars a month in the comments so check that out it's great comments so check that out it's great comments so check that out it's great information we hope you like this video information we hope you like this video information we hope you like this video give it a thumbs up we appreciate it if give it a thumbs up we appreciate it if give it a thumbs up we appreciate it if you're brand new to the channel make you're brand new to the channel make you're brand new to the channel make sure you hit that subscribe button and sure you hit that subscribe button and sure you hit that subscribe button and ring that little bell that way you'll be ring that little bell that way you'll be ring that little bell that way you'll be notified when we release a brand new notified when we release a brand new notified when we release a brand new video share it with your friends that video share it with your friends that video share it with your friends that want to join the fire movement as well want to join the fire movement as well want to join the fire movement as well thanks again for watching guys take care thanks again for watching guys take care thanks again for watching guys take care and we'll see you next time and we'll see you next time and we'll see you next time [Music] footsteps Angelo anyway anyway anyway [Music] [Music] [Music] beyond the stars where the Sun sets keep a secret WEBVTT Kind: captions Language: en based on how my life has played out based on how my life has played out based on how my life has played out there is no way that anyone could ever there is no way that anyone could ever there is no way that anyone could ever become financially independent or retire become financially independent or retire become financially independent or retire early early early this video is not meant to trigger you this video is not meant to trigger you this video is not meant to trigger you the point is to get a healthy discussion the point is to get a healthy discussion the point is to get a healthy discussion going on around the fire movement in going on around the fire movement in going on around the fire movement in this video I'm gonna go through why this video I'm gonna go through why this video I'm gonna go through why everyone seems to hate financial everyone seems to hate financial everyone seems to hate financial independence retire early and then I'm independence retire early and then I'm independence retire early and then I'm gonna do my best to uncover how the fire gonna do my best to uncover how the fire gonna do my best to uncover how the fire community would plan on getting around community would plan on getting around community would plan on getting around some of those reasons hey I'm Jared and some of those reasons hey I'm Jared and some of those reasons hey I'm Jared and on this channel we like to talk about on this channel we like to talk about on this channel we like to talk about all things of personal finance from all things of personal finance from all things of personal finance from paying off debt to investing in building paying off debt to investing in building paying off debt to investing in building wealth to managing your money to even wealth to managing your money to even wealth to managing your money to even making more money and increasing your making more money and increasing your making more money and increasing your income if you can find it in your heart income if you can find it in your heart income if you can find it in your heart I would greatly appreciate it if you I would greatly appreciate it if you I would greatly appreciate it if you Hulk smashed that thumbs up button so my Hulk smashed that thumbs up button so my Hulk smashed that thumbs up button so my mom doesn't think that I'm wasting my mom doesn't think that I'm wasting my mom doesn't think that I'm wasting my life away making videos on the internet life away making videos on the internet life away making videos on the internet for awesome people like you I've noticed for awesome people like you I've noticed for awesome people like you I've noticed that even mentioning the topic of that even mentioning the topic of that even mentioning the topic of financial independence or early financial independence or early financial independence or early retirement brings up one of two retirement brings up one of two retirement brings up one of two responses the first set of responses are responses the first set of responses are responses the first set of responses are for people who get it people who are for people who get it people who are for people who get it people who are pursuing it or people who are intrigued pursuing it or people who are intrigued pursuing it or people who are intrigued and want to know move now the second set and want to know move now the second set and want to know move now the second set of responses you get are from people who of responses you get are from people who of responses you get are from people who are completely against it no matter what are completely against it no matter what are completely against it no matter what they just don't understand the meaning they just don't understand the meaning they just don't understand the meaning behind it or don't understand the behind it or don't understand the behind it or don't understand the details of how it can actually work let details of how it can actually work let details of how it can actually work let me first say that I am NOT someone who me first say that I am NOT someone who me first say that I am NOT someone who is officially pursuing financial is officially pursuing financial is officially pursuing financial independence at this point in time am I independence at this point in time am I independence at this point in time am I essentially doing everything that I need essentially doing everything that I need essentially doing everything that I need to be able to achieve fire if I want to to be able to achieve fire if I want to to be able to achieve fire if I want to in the future yes I am I completely in the future yes I am I completely in the future yes I am I completely agree that some people who are pursuing agree that some people who are pursuing agree that some people who are pursuing fire can be reckless with their planning fire can be reckless with their planning fire can be reckless with their planning but just like every other area in life but just like every other area in life but just like every other area in life there are outliers who aren't prepared there are outliers who aren't prepared there are outliers who aren't prepared and planning as they should be but after and planning as they should be but after and planning as they should be but after diving really deep into this community diving really deep into this community diving really deep into this community the majority of these people are about the majority of these people are about the majority of these people are about as prepared as it gets I would even go as prepared as it gets I would even go as prepared as it gets I would even go as far as saying that they are more as far as saying that they are more as far as saying that they are more prepared than the larger part of the prepared than the larger part of the prepared than the larger part of the population fire movement people are kind population fire movement people are kind population fire movement people are kind of like zombie apocalypse Preppers if of like zombie apocalypse Preppers if of like zombie apocalypse Preppers if you think about it except the zombies of you think about it except the zombies of you think about it except the zombies of retirement is something we can all agree retirement is something we can all agree retirement is something we can all agree is going to happen if you are still is going to happen if you are still is going to happen if you are still getting up to speed on what financial getting up to speed on what financial getting up to speed on what financial independence retire really is or if you independence retire really is or if you independence retire really is or if you want to learn just a little bit more want to learn just a little bit more want to learn just a little bit more than feel free to check out the videos than feel free to check out the videos than feel free to check out the videos that I've already made on this topic that I've already made on this topic that I've already made on this topic links are in the description to a fire links are in the description to a fire links are in the description to a fire playlist that I put together for you or playlist that I put together for you or playlist that I put together for you or I'll throw some links around my head the I'll throw some links around my head the I'll throw some links around my head the first thing we need to get out of the first thing we need to get out of the first thing we need to get out of the way is the fact that anyone way is the fact that anyone way is the fact that anyone and financial independence or early and financial independence or early and financial independence or early retirement is going to have a different retirement is going to have a different retirement is going to have a different journey along the way yes there are some journey along the way yes there are some journey along the way yes there are some basic ground rules that most of them basic ground rules that most of them basic ground rules that most of them will need to follow when it comes to will need to follow when it comes to will need to follow when it comes to cutting costs investing and increasing cutting costs investing and increasing cutting costs investing and increasing their income but how each person goes their income but how each person goes their income but how each person goes about it is not always going to be the about it is not always going to be the about it is not always going to be the same because of this it's important not same because of this it's important not same because of this it's important not to throw blanket statements around like to throw blanket statements around like to throw blanket statements around like if a movement is so dug these kids if a movement is so dug these kids if a movement is so dug these kids aren't in touch with how the real world aren't in touch with how the real world aren't in touch with how the real world works based on how my life is played out works based on how my life is played out works based on how my life is played out there is no way that anyone could ever there is no way that anyone could ever there is no way that anyone could ever become financially independent or become financially independent or become financially independent or retired it's easy to hit the dislike retired it's easy to hit the dislike retired it's easy to hit the dislike button or hate on anyone who has a button or hate on anyone who has a button or hate on anyone who has a different view than you what's even more different view than you what's even more different view than you what's even more difficult is to go into learning about difficult is to go into learning about difficult is to go into learning about it with a little bit of an open mind and it with a little bit of an open mind and it with a little bit of an open mind and try to understand their thought process try to understand their thought process try to understand their thought process to push the discussion forward just a to push the discussion forward just a to push the discussion forward just a little bit and actually have a little bit and actually have a little bit and actually have a constructive conversation you still constructive conversation you still constructive conversation you still won't have to agree with it but my won't have to agree with it but my won't have to agree with it but my thought process is that if what they're thought process is that if what they're thought process is that if what they're doing isn't hurting you or anyone else doing isn't hurting you or anyone else doing isn't hurting you or anyone else around them then who cares I honestly around them then who cares I honestly around them then who cares I honestly think that we get smarter if we take the think that we get smarter if we take the think that we get smarter if we take the time to listen to the other side and time to listen to the other side and time to listen to the other side and opposing views in general leave a opposing views in general leave a opposing views in general leave a comment down below asking any questions comment down below asking any questions comment down below asking any questions about the fire movement in general or about the fire movement in general or about the fire movement in general or let me know your thoughts on the whole let me know your thoughts on the whole let me know your thoughts on the whole thing I'm actually extremely interested thing I'm actually extremely interested thing I'm actually extremely interested to hear your point of view the first to hear your point of view the first to hear your point of view the first reason many people dislike the fire reason many people dislike the fire reason many people dislike the fire movement is because once you declare movement is because once you declare movement is because once you declare financial independence you don't have financial independence you don't have financial independence you don't have any more active income technically a any more active income technically a any more active income technically a person who is financially independent person who is financially independent person who is financially independent could still work if they wanted to could still work if they wanted to could still work if they wanted to financial independence means having financial independence means having financial independence means having enough money to cover your expenses enough money to cover your expenses enough money to cover your expenses that's generated through investments or that's generated through investments or that's generated through investments or other areas now this will give you the other areas now this will give you the other areas now this will give you the ability to quit your job work at a lower ability to quit your job work at a lower ability to quit your job work at a lower paying job that makes you happy take paying job that makes you happy take paying job that makes you happy take some time off or or anything else that some time off or or anything else that some time off or or anything else that you can think of but I'll agree that not you can think of but I'll agree that not you can think of but I'll agree that not having any more active income is a valid having any more active income is a valid having any more active income is a valid argument if you were only looking at it argument if you were only looking at it argument if you were only looking at it from one side of the coin there are two from one side of the coin there are two from one side of the coin there are two things that individuals in the fire things that individuals in the fire things that individuals in the fire community are most likely and buy most community are most likely and buy most community are most likely and buy most likely I mean hopefully doing to help likely I mean hopefully doing to help likely I mean hopefully doing to help prevent this potential problem in the prevent this potential problem in the prevent this potential problem in the future even though a lot of people future even though a lot of people future even though a lot of people pursuing fire will most likely be pursuing fire will most likely be pursuing fire will most likely be earning some sort of income through earning some sort of income through earning some sort of income through their investments some will be doing their investments some will be doing their investments some will be doing their best to pursue some sort of their best to pursue some sort of their best to pursue some sort of passive income these people are looking passive income these people are looking passive income these people are looking for a little bit of a safety net to for a little bit of a safety net to for a little bit of a safety net to ensure that they have at least some ensure that they have at least some ensure that they have at least some money coming in to help them offset any money coming in to help them offset any money coming in to help them offset any unforeseen money issues since there's unforeseen money issues since there's unforeseen money issues since there's endless ways to do this some of the more endless ways to do this some of the more endless ways to do this some of the more popular ones are star popular ones are star popular ones are star a side business that's either completely a side business that's either completely a side business that's either completely hands-off or only taking a small amount hands-off or only taking a small amount hands-off or only taking a small amount of their time there's endless types of of their time there's endless types of of their time there's endless types of side businesses out there that if you side businesses out there that if you side businesses out there that if you put the extra work in out front you can put the extra work in out front you can put the extra work in out front you can usually take your foot off the pedal usually take your foot off the pedal usually take your foot off the pedal if you hire some people to manage a lot if you hire some people to manage a lot if you hire some people to manage a lot of the work later down the line another of the work later down the line another of the work later down the line another very popular strategy to earn more very popular strategy to earn more very popular strategy to earn more passive income is through investing the passive income is through investing the passive income is through investing the rental properties that kind of give you rental properties that kind of give you rental properties that kind of give you a pretty consistent stream of money a pretty consistent stream of money a pretty consistent stream of money every single month every single month every single month the second way a lot of people are the second way a lot of people are the second way a lot of people are ensuring that they can earn income ensuring that they can earn income ensuring that they can earn income during a time of need is by building during a time of need is by building during a time of need is by building skills for themselves while they're on skills for themselves while they're on skills for themselves while they're on the path to financial independence the path to financial independence the path to financial independence retire early for some careers if you retire early for some careers if you retire early for some careers if you were not active in the workforce for a were not active in the workforce for a were not active in the workforce for a certain amount of time then it could be certain amount of time then it could be certain amount of time then it could be a little bit harder for you to hop back a little bit harder for you to hop back a little bit harder for you to hop back into that type of work really quickly if into that type of work really quickly if into that type of work really quickly if you needed to you needed to you needed to knowing this it's important to become knowing this it's important to become knowing this it's important to become proficient in a skill that is highly proficient in a skill that is highly proficient in a skill that is highly marketable a lot of people in the fire marketable a lot of people in the fire marketable a lot of people in the fire movement are spending their free time movement are spending their free time movement are spending their free time learning skills that they can take with learning skills that they can take with learning skills that they can take with them basically forever I honestly think them basically forever I honestly think them basically forever I honestly think that everyone should be doing this that everyone should be doing this that everyone should be doing this whether you're pursuing fire or not whether you're pursuing fire or not whether you're pursuing fire or not anyone could lose their job tomorrow if anyone could lose their job tomorrow if anyone could lose their job tomorrow if they work for someone else so it's they work for someone else so it's they work for someone else so it's always kind of good to have a back-up always kind of good to have a back-up always kind of good to have a back-up plan no matter what I mean let's be plan no matter what I mean let's be plan no matter what I mean let's be honest with the internet it is easier honest with the internet it is easier honest with the internet it is easier than ever to find work to even make just than ever to find work to even make just than ever to find work to even make just a little bit of cash on the side I would a little bit of cash on the side I would a little bit of cash on the side I would suggest learning any kind of skill that suggest learning any kind of skill that suggest learning any kind of skill that has to do with the Internet to help make has to do with the Internet to help make has to do with the Internet to help make you more valuable to a larger amount of you more valuable to a larger amount of you more valuable to a larger amount of people with the insane number of online people with the insane number of online people with the insane number of online courses out there you can basically get courses out there you can basically get courses out there you can basically get a college degree in any field that you a college degree in any field that you a college degree in any field that you want for the cost of almost nothing want for the cost of almost nothing want for the cost of almost nothing unlike most college classes you'll be unlike most college classes you'll be unlike most college classes you'll be able to actually apply literally able to actually apply literally able to actually apply literally everything you learn fire people know everything you learn fire people know everything you learn fire people know this and understand the importance of it this and understand the importance of it this and understand the importance of it to kind of mitigate some of the risks to kind of mitigate some of the risks to kind of mitigate some of the risks when it comes to leaving your full-time when it comes to leaving your full-time when it comes to leaving your full-time job plus you get to think that if they job plus you get to think that if they job plus you get to think that if they find that they need some more cash for find that they need some more cash for find that they need some more cash for whatever reason then they most likely whatever reason then they most likely whatever reason then they most likely won't need the same high salary that won't need the same high salary that won't need the same high salary that they had before they left their they had before they left their they had before they left their full-time job if they plan to correctly full-time job if they plan to correctly full-time job if they plan to correctly then most of it only just a little bit then most of it only just a little bit then most of it only just a little bit to kind of help supplement them for to kind of help supplement them for to kind of help supplement them for however long they need next up we have however long they need next up we have however long they need next up we have the opposing view of fire people will the opposing view of fire people will the opposing view of fire people will catch fire during a time where the stock catch fire during a time where the stock catch fire during a time where the stock market is very volatile if there's one market is very volatile if there's one market is very volatile if there's one thing people in the fire community thing people in the fire community thing people in the fire community understand is that the stock market is understand is that the stock market is understand is that the stock market is constantly going up and down in the constantly going up and down in the constantly going up and down in the short term as of today the stock market short term as of today the stock market short term as of today the stock market has been on an absolute tear over the has been on an absolute tear over the has been on an absolute tear over the past years we've had one of the past years we've had one of the past years we've had one of the longest-running bull markets in history longest-running bull markets in history longest-running bull markets in history so I can absolutely understand so I can absolutely understand so I can absolutely understand why people out there are cautioning why people out there are cautioning why people out there are cautioning about pursuing fire if you were pursuing about pursuing fire if you were pursuing about pursuing fire if you were pursuing financial independence retire early then financial independence retire early then financial independence retire early then you were basing your investment withdraw you were basing your investment withdraw you were basing your investment withdraw strategy on the % rule which is based strategy on the % rule which is based strategy on the % rule which is based on the Trinity study now I won't bore on the Trinity study now I won't bore on the Trinity study now I won't bore you with all the details of the study you with all the details of the study you with all the details of the study but you can google it and read a lot but you can google it and read a lot but you can google it and read a lot more about it if you're interested give more about it if you're interested give more about it if you're interested give you a quick summary the original study you a quick summary the original study you a quick summary the original study was conducted in by three was conducted in by three was conducted in by three professors of Finance at Trinity professors of Finance at Trinity professors of Finance at Trinity University University University now it's since been updated to take into now it's since been updated to take into now it's since been updated to take into account data through it states that account data through it states that account data through it states that a person has sufficient savings in a person has sufficient savings in a person has sufficient savings in assets if % of his or her assets are assets if % of his or her assets are assets if % of his or her assets are sufficient to cover one year worth of sufficient to cover one year worth of sufficient to cover one year worth of expenses so essentially if you have expenses so essentially if you have expenses so essentially if you have million dollars invested in a mix of million dollars invested in a mix of million dollars invested in a mix of stocks or index funds and bonds then you stocks or index funds and bonds then you stocks or index funds and bonds then you can safely withdraw $, per year and can safely withdraw $, per year and can safely withdraw $, per year and there is a high likelihood that you will there is a high likelihood that you will there is a high likelihood that you will never run out of money they do mention never run out of money they do mention never run out of money they do mention that during times when the stock market that during times when the stock market that during times when the stock market is down it's likely that the person may is down it's likely that the person may is down it's likely that the person may have to lower their withdrawal rate from have to lower their withdrawal rate from have to lower their withdrawal rate from percent to percent so instead of percent to percent so instead of percent to percent so instead of withdrawing $, per year the person withdrawing $, per year the person withdrawing $, per year the person and early retirement could only withdraw and early retirement could only withdraw and early retirement could only withdraw $, per year another thing people $, per year another thing people $, per year another thing people pursuing financial independence retire pursuing financial independence retire pursuing financial independence retire earlier are doing to combat this earlier are doing to combat this earlier are doing to combat this possibility is to always keep the door possibility is to always keep the door possibility is to always keep the door open to going back to work to earn some open to going back to work to earn some open to going back to work to earn some extra cash to get them through those extra cash to get them through those extra cash to get them through those times where the stock market might be times where the stock market might be times where the stock market might be down if that's their main source of down if that's their main source of down if that's their main source of income it goes back to the last part we income it goes back to the last part we income it goes back to the last part we talked about with learning marketable talked about with learning marketable talked about with learning marketable skills and creating passive income one skills and creating passive income one skills and creating passive income one thing to note is that even though some thing to note is that even though some thing to note is that even though some people may have to reduce their people may have to reduce their people may have to reduce their withdrawal rate it most likely won't be withdrawal rate it most likely won't be withdrawal rate it most likely won't be that big of a deal that big of a deal that big of a deal people pursuing fire have most likely people pursuing fire have most likely people pursuing fire have most likely already been living frugally and know already been living frugally and know already been living frugally and know how to live on less since that's kind of how to live on less since that's kind of how to live on less since that's kind of what they were doing on their path and what they were doing on their path and what they were doing on their path and their journey to achieving financial their journey to achieving financial their journey to achieving financial independence or early retirement many independence or early retirement many independence or early retirement many many many people opposed to fire mention many many people opposed to fire mention many many people opposed to fire mention the issues surrounding health insurance the issues surrounding health insurance the issues surrounding health insurance if you leave a company that offers some if you leave a company that offers some if you leave a company that offers some sort of health insurance plan the cost sort of health insurance plan the cost sort of health insurance plan the cost of medical expenses is outrageous in the of medical expenses is outrageous in the of medical expenses is outrageous in the United States it's probably one of the United States it's probably one of the United States it's probably one of the biggest unknowns when it comes to this biggest unknowns when it comes to this biggest unknowns when it comes to this whole fire thing especially if you're whole fire thing especially if you're whole fire thing especially if you're planning on doing it planning on doing it planning on doing it with the whole family I wanted to play a with the whole family I wanted to play a with the whole family I wanted to play a little game of pretend to see how much little game of pretend to see how much little game of pretend to see how much health insurance would run me if I health insurance would run me if I health insurance would run me if I decided to declare financial decided to declare financial decided to declare financial independence today so I headed over to independence today so I headed over to independence today so I headed over to healthcare.gov to see what my healthcare.gov to see what my healthcare.gov to see what my were I'm a very healthy male who only were I'm a very healthy male who only were I'm a very healthy male who only needs coverage for myself since I know needs coverage for myself since I know needs coverage for myself since I know my wife and kids my wife and kids my wife and kids they have three different levels to they have three different levels to they have three different levels to choose from based on the monthly choose from based on the monthly choose from based on the monthly premiums that you'd like to pay just to premiums that you'd like to pay just to premiums that you'd like to pay just to get an idea of the most someone will get an idea of the most someone will get an idea of the most someone will have to pay in a year you would want to have to pay in a year you would want to have to pay in a year you would want to add the monthly premium times twelve add the monthly premium times twelve add the monthly premium times twelve months plus the yearly deductible plus months plus the yearly deductible plus months plus the yearly deductible plus any co-pays for the cheapest monthly any co-pays for the cheapest monthly any co-pays for the cheapest monthly premium to max someone who chose this premium to max someone who chose this premium to max someone who chose this plan could have to pay it's a little bit plan could have to pay it's a little bit plan could have to pay it's a little bit over ten thousand dollars for the most over ten thousand dollars for the most over ten thousand dollars for the most expensive monthly premium and the lowest expensive monthly premium and the lowest expensive monthly premium and the lowest deductible someone with this plan could deductible someone with this plan could deductible someone with this plan could have to pay a little over sixty five have to pay a little over sixty five have to pay a little over sixty five hundred dollars in a year keep in mind hundred dollars in a year keep in mind hundred dollars in a year keep in mind that this is just for a single person that this is just for a single person that this is just for a single person who is pretty physically active and who is pretty physically active and who is pretty physically active and healthy this is something someone healthy this is something someone healthy this is something someone pursuing financial independence retire pursuing financial independence retire pursuing financial independence retire early is going to have to calculate into early is going to have to calculate into early is going to have to calculate into their numbers I don't want to say the their numbers I don't want to say the their numbers I don't want to say the health coverage is a deal-breaker but it health coverage is a deal-breaker but it health coverage is a deal-breaker but it is definitely something that everyone is definitely something that everyone is definitely something that everyone should be thinking about whether you're should be thinking about whether you're should be thinking about whether you're going to retire early or whether you're going to retire early or whether you're going to retire early or whether you're gonna retire on time another option is gonna retire on time another option is gonna retire on time another option is some sort of group health insurance plan some sort of group health insurance plan some sort of group health insurance plan where a bunch of people kind of get where a bunch of people kind of get where a bunch of people kind of get together to pay a monthly premium together to pay a monthly premium together to pay a monthly premium whenever an individual needs money it's whenever an individual needs money it's whenever an individual needs money it's taken from the larger pot that's shared taken from the larger pot that's shared taken from the larger pot that's shared among everyone this is definitely a among everyone this is definitely a among everyone this is definitely a viable option but they usually come with viable option but they usually come with viable option but they usually come with a lot more restrictions another option a lot more restrictions another option a lot more restrictions another option for someone who is left work is to do for someone who is left work is to do for someone who is left work is to do something called medical tourism this is something called medical tourism this is something called medical tourism this is where an individual would travel to a where an individual would travel to a where an individual would travel to a completely different country to pursue completely different country to pursue completely different country to pursue some sort of medical procedure for an some sort of medical procedure for an some sort of medical procedure for an extremely low cost if someone pursuing extremely low cost if someone pursuing extremely low cost if someone pursuing financial independence retire early is financial independence retire early is financial independence retire early is maxing out all of their retirement maxing out all of their retirement maxing out all of their retirement accounts then how is it possible to accounts then how is it possible to accounts then how is it possible to access those accounts early one of the access those accounts early one of the access those accounts early one of the ways is by using a backdoor Roth now it ways is by using a backdoor Roth now it ways is by using a backdoor Roth now it would take me a whole video to explain would take me a whole video to explain would take me a whole video to explain it but it basically allows you to it but it basically allows you to it but it basically allows you to convert your traditional IRA to a Roth convert your traditional IRA to a Roth convert your traditional IRA to a Roth IRA so you can access that Roth IRA IRA so you can access that Roth IRA IRA so you can access that Roth IRA money a lot sooner than fifty nine and a money a lot sooner than fifty nine and a money a lot sooner than fifty nine and a half there are limits when it comes to half there are limits when it comes to half there are limits when it comes to investing in a Roth IRA which is six investing in a Roth IRA which is six investing in a Roth IRA which is six thousand dollars per year at this point thousand dollars per year at this point thousand dollars per year at this point in time but there is no limit to how in time but there is no limit to how in time but there is no limit to how much you can convert into a back-door much you can convert into a back-door much you can convert into a back-door Roth IRA there's a lot of rules to make Roth IRA there's a lot of rules to make Roth IRA there's a lot of rules to make sure that you do this correctly so I sure that you do this correctly so I sure that you do this correctly so I wouldn't recommend that someone just go wouldn't recommend that someone just go wouldn't recommend that someone just go into the whole thing without into the whole thing without into the whole thing without understanding the ins and outs of the understanding the ins and outs of the understanding the ins and outs of the whole process and of course talking to whole process and of course talking to whole process and of course talking to some sort of text professional but this some sort of text professional but this some sort of text professional but this would be one way to access the would be one way to access the would be one way to access the retirement accounts a lot earlier than retirement accounts a lot earlier than retirement accounts a lot earlier than fifty nine and a half fifty nine and a half fifty nine and a half another way would be to invest in another way would be to invest in another way would be to invest in taxable accounts along with your taxable accounts along with your taxable accounts along with your retirement retirement retirement counts as well this would give you money counts as well this would give you money counts as well this would give you money to spend every year until the five year to spend every year until the five year to spend every year until the five year window passed when you were able to window passed when you were able to window passed when you were able to access the backdoor Roth IRA money that access the backdoor Roth IRA money that access the backdoor Roth IRA money that you converted if you were interested in you converted if you were interested in you converted if you were interested in what a backdoor Roth IRA is and how it what a backdoor Roth IRA is and how it what a backdoor Roth IRA is and how it kind of works then I'll throw a link kind of works then I'll throw a link kind of works then I'll throw a link down the description to a well to a down the description to a well to a down the description to a well to a website that does a really good job of website that does a really good job of website that does a really good job of kind of laying it all out for you or kind of laying it all out for you or kind of laying it all out for you or maybe I'll make a video about it at some maybe I'll make a video about it at some maybe I'll make a video about it at some point in the future and finally the last point in the future and finally the last point in the future and finally the last opposing view of financial independence opposing view of financial independence opposing view of financial independence retire early is a fear of the unknown in retire early is a fear of the unknown in retire early is a fear of the unknown in general none of us can predict how the general none of us can predict how the general none of us can predict how the rest of our lives are going to play out rest of our lives are going to play out rest of our lives are going to play out for some it's gonna work out as planned for some it's gonna work out as planned for some it's gonna work out as planned for others it's gonna be a little bit for others it's gonna be a little bit for others it's gonna be a little bit more of a bumpy ride one thing to always more of a bumpy ride one thing to always more of a bumpy ride one thing to always keep in mind is to make sure that we're keep in mind is to make sure that we're keep in mind is to make sure that we're not allowing the fear of the unknown to not allowing the fear of the unknown to not allowing the fear of the unknown to prevent us from doing something that we prevent us from doing something that we prevent us from doing something that we truly believe I like the whole concept truly believe I like the whole concept truly believe I like the whole concept and everything behind what it means to and everything behind what it means to and everything behind what it means to pursue financial independence retire pursue financial independence retire pursue financial independence retire early I especially appreciate what early I especially appreciate what early I especially appreciate what they're doing because I've had they're doing because I've had they're doing because I've had first-hand experience with how precious first-hand experience with how precious first-hand experience with how precious life is and how important it is to make life is and how important it is to make life is and how important it is to make sure you're living life to its fullest sure you're living life to its fullest sure you're living life to its fullest and doing things you actually love and and doing things you actually love and and doing things you actually love and enjoy I personally lost my little enjoy I personally lost my little enjoy I personally lost my little brother suddenly at the age of my mom brother suddenly at the age of my mom brother suddenly at the age of my mom has a genetic incurable disease both of has a genetic incurable disease both of has a genetic incurable disease both of those horrible experiences have taught those horrible experiences have taught those horrible experiences have taught me to do more things that make me happy me to do more things that make me happy me to do more things that make me happy and squeeze more out of life while I and squeeze more out of life while I and squeeze more out of life while I still have the opportunity financial still have the opportunity financial still have the opportunity financial independence retire early is about independence retire early is about independence retire early is about choosing to be more intentional about choosing to be more intentional about choosing to be more intentional about how you live your life and what you how you live your life and what you how you live your life and what you really want out of your future it's really want out of your future it's really want out of your future it's about going against the grain of society about going against the grain of society about going against the grain of society to ask the tough questions that aren't to ask the tough questions that aren't to ask the tough questions that aren't normal like why do I have to do it that normal like why do I have to do it that normal like why do I have to do it that way why do I have to work at jobs that I way why do I have to work at jobs that I way why do I have to work at jobs that I don't like to be able to retire at an don't like to be able to retire at an don't like to be able to retire at an age when I can't really enjoy life why age when I can't really enjoy life why age when I can't really enjoy life why can't I speed up the process so that I can't I speed up the process so that I can't I speed up the process so that I can truly pursue things that make me can truly pursue things that make me can truly pursue things that make me happy but don't pay very well or pay happy but don't pay very well or pay happy but don't pay very well or pay anything at all even if you don't agree anything at all even if you don't agree anything at all even if you don't agree with the fire movement in general I with the fire movement in general I with the fire movement in general I think there's a little piece of the think there's a little piece of the think there's a little piece of the movement that everyone can take away and movement that everyone can take away and movement that everyone can take away and use for themselves I've released more use for themselves I've released more use for themselves I've released more financial independence and retire early financial independence and retire early financial independence and retire early videos that I'll link somewhere around videos that I'll link somewhere around videos that I'll link somewhere around my head and I'll also link up down in my head and I'll also link up down in my head and I'll also link up down in the description don't forget to Hulk the description don't forget to Hulk the description don't forget to Hulk smash that thumbs up button if you want smash that thumbs up button if you want smash that thumbs up button if you want more personal finance videos just like more personal finance videos just like more personal finance videos just like this one this one this one then hit that subscribe button in the then hit that subscribe button in the then hit that subscribe button in the notification Bell I'll see you in the notification Bell I'll see you in the notification Bell I'll see you in the next one friends adios WEBVTT Kind: captions Language: en what's up youtube this is another video what's up youtube this is another video what's up youtube this is another video that we're dropping today that we're dropping today that we're dropping today and we're gonna be focusing on the fire and we're gonna be focusing on the fire and we're gonna be focusing on the fire movement why you should know about it movement why you should know about it movement why you should know about it how it can get you to financial how it can get you to financial how it can get you to financial independence and how the heck it can independence and how the heck it can independence and how the heck it can make you retire make you retire make you retire early because that is the dream nobody early because that is the dream nobody early because that is the dream nobody really wants to work really wants to work really wants to work um but yeah so before we get into it um but yeah so before we get into it um but yeah so before we get into it this is living with this is living with this is living with all right so first thing you should know all right so first thing you should know all right so first thing you should know is that the fire movement is actually an is that the fire movement is actually an is that the fire movement is actually an acronym it stands for acronym it stands for acronym it stands for financial independence retire early financial independence retire early financial independence retire early um so i actually heard about this this um so i actually heard about this this um so i actually heard about this this concept through a number of other concept through a number of other concept through a number of other youtubers youtubers youtubers um but there was this guy named mr money um but there was this guy named mr money um but there was this guy named mr money mustache mustache mustache which if you're not familiar with them which if you're not familiar with them which if you're not familiar with them definitely look him up he's got an definitely look him up he's got an definitely look him up he's got an awesome blog awesome blog awesome blog where he lays out kind of the principles where he lays out kind of the principles where he lays out kind of the principles of the fire movement of the fire movement of the fire movement and built this online community of and built this online community of and built this online community of people who think like-mindedly people who think like-mindedly people who think like-mindedly who rather than waiting until they're who rather than waiting until they're who rather than waiting until they're working a whole career working a whole career working a whole career to save for retirement he explains a to save for retirement he explains a to save for retirement he explains a process to do this process to do this process to do this much simpler and faster so some of the much simpler and faster so some of the much simpler and faster so some of the people people people that do this retire in their s in that do this retire in their s in that do this retire in their s in their s their s their s probably more realistic in your like s probably more realistic in your like s probably more realistic in your like s or s or s or s but depending on how extreme you are you but depending on how extreme you are you but depending on how extreme you are you can retire at an can retire at an can retire at an earlier age so if this is the first time earlier age so if this is the first time earlier age so if this is the first time you're hearing about the fire movement you're hearing about the fire movement you're hearing about the fire movement do not worry my previous education on do not worry my previous education on do not worry my previous education on finances have always been something finances have always been something finances have always been something that's tangible like that's tangible like that's tangible like real estate that's kind of what i was real estate that's kind of what i was real estate that's kind of what i was taught and i never heard about the fire taught and i never heard about the fire taught and i never heard about the fire movement or anything until this guy came movement or anything until this guy came movement or anything until this guy came along so it's totally okay to get into along so it's totally okay to get into along so it's totally okay to get into the game now the game now the game now um so fire movement is really just about um so fire movement is really just about um so fire movement is really just about any investing strategy that gets you to any investing strategy that gets you to any investing strategy that gets you to your goals and so what we decided with your goals and so what we decided with your goals and so what we decided with the best thing for us to do the best thing for us to do the best thing for us to do is dividend growth investing is dividend growth investing is dividend growth investing so what is dividend growth invested oh so what is dividend growth invested oh so what is dividend growth invested oh wait wait wait what's a dividend so a dividend is what's a dividend so a dividend is what's a dividend so a dividend is something that a company something that a company something that a company pays out to its number of shareholders pays out to its number of shareholders pays out to its number of shareholders so it's a portion of their profits that so it's a portion of their profits that so it's a portion of their profits that they divvy up they divvy up they divvy up among everyone who owns the stock um so among everyone who owns the stock um so among everyone who owns the stock um so they can pay this out on a monthly they can pay this out on a monthly they can pay this out on a monthly quarterly annual basis really whatever quarterly annual basis really whatever quarterly annual basis really whatever they decide they decide they decide so that's what a dividend is but so that's what a dividend is but so that's what a dividend is but dividend growth investing dividend growth investing dividend growth investing is looking at the number of companies is looking at the number of companies is looking at the number of companies that pay a dividend that pay a dividend that pay a dividend and picking out the ones that have and picking out the ones that have and picking out the ones that have consistently increased their dividend consistently increased their dividend consistently increased their dividend over time over time over time so i guess a good example of some of so i guess a good example of some of so i guess a good example of some of these companies that you guys probably these companies that you guys probably these companies that you guys probably have heard of have heard of have heard of are like coca-cola procter gamble m are like coca-cola procter gamble m are like coca-cola procter gamble m these companies have been around long these companies have been around long these companies have been around long enough to have enough to have enough to have a strong history of increasing that a strong history of increasing that a strong history of increasing that dividend payout dividend payout dividend payout which makes them very reliable in stable which makes them very reliable in stable which makes them very reliable in stable investments investments investments so our portfolio does not consist of so our portfolio does not consist of so our portfolio does not consist of companies like tesla companies like tesla companies like tesla and apple and other high growth tech and apple and other high growth tech and apple and other high growth tech companies companies companies so while we do acknowledge that these so while we do acknowledge that these so while we do acknowledge that these have grown a lot in the past year have grown a lot in the past year have grown a lot in the past year we are just prioritizing companies that we are just prioritizing companies that we are just prioritizing companies that have more stability to them have more stability to them have more stability to them something that we can count on for a something that we can count on for a something that we can count on for a long time and that has a long track long time and that has a long track long time and that has a long track record of increasing their dividend record of increasing their dividend record of increasing their dividend payout payout payout so next we're going to get into why we so next we're going to get into why we so next we're going to get into why we chose this strategy chose this strategy chose this strategy and why it has advantages toward other and why it has advantages toward other and why it has advantages toward other strategies so one of the main reasons we picked so one of the main reasons we picked so one of the main reasons we picked this for investing is that it's truly this for investing is that it's truly this for investing is that it's truly passive income and not active income the passive income and not active income the passive income and not active income the forms of investing i was also familiar forms of investing i was also familiar forms of investing i was also familiar with previously with previously with previously was pretty much you put a lump sum of was pretty much you put a lump sum of was pretty much you put a lump sum of money into some sort of stock portfolio money into some sort of stock portfolio money into some sort of stock portfolio and then you would check back every and then you would check back every and then you would check back every month a few weeks or so and you would be month a few weeks or so and you would be month a few weeks or so and you would be so stressed if it dipped by ten percent so stressed if it dipped by ten percent so stressed if it dipped by ten percent and say oh my god i gotta sell and say oh my god i gotta sell and say oh my god i gotta sell or vice versa oh my god i'm doing so or vice versa oh my god i'm doing so or vice versa oh my god i'm doing so great it's up ten percent great it's up ten percent great it's up ten percent but the thing with dividend growth but the thing with dividend growth but the thing with dividend growth investing is that that lump sum investing is that that lump sum investing is that that lump sum doesn't really matter because you're doesn't really matter because you're doesn't really matter because you're only paying attention to what's being only paying attention to what's being only paying attention to what's being paid out on that regular basis and with paid out on that regular basis and with paid out on that regular basis and with your portfolio they all have different your portfolio they all have different your portfolio they all have different payout times so it's not that you're payout times so it's not that you're payout times so it's not that you're only getting paid only getting paid only getting paid every quarter you're getting paid every every quarter you're getting paid every every quarter you're getting paid every day when you set up your portfolio right day when you set up your portfolio right day when you set up your portfolio right so this is really you put away your so this is really you put away your so this is really you put away your money and then they're gonna pay you money and then they're gonna pay you money and then they're gonna pay you regularly and those payments keep coming regularly and those payments keep coming regularly and those payments keep coming regardless of the amount that this regardless of the amount that this regardless of the amount that this lump sum fluctuates so these are lump sum fluctuates so these are lump sum fluctuates so these are dependable companies that we're going to dependable companies that we're going to dependable companies that we're going to be investing be investing be investing it sounds morbid but for the rest of our it sounds morbid but for the rest of our it sounds morbid but for the rest of our lives i'm . so the rest of our lives lives i'm . so the rest of our lives lives i'm . so the rest of our lives that sounds pretty crazy that sounds pretty crazy that sounds pretty crazy but so this is the form of passive but so this is the form of passive but so this is the form of passive versus the form of active so another versus the form of active so another versus the form of active so another huge benefit of dividend growth huge benefit of dividend growth huge benefit of dividend growth investing is that you are able to track investing is that you are able to track investing is that you are able to track your progress over time your progress over time your progress over time um so we're able to see on a weekly um so we're able to see on a weekly um so we're able to see on a weekly monthly basis monthly basis monthly basis how many dividends are coming in so then how many dividends are coming in so then how many dividends are coming in so then we're able to put it into a spreadsheet we're able to put it into a spreadsheet we're able to put it into a spreadsheet and see once our monthly dividend income and see once our monthly dividend income and see once our monthly dividend income equals how much money we're spending in equals how much money we're spending in equals how much money we're spending in a month a month a month then in theory we can retire and live then in theory we can retire and live then in theory we can retire and live off of those dividends off of those dividends off of those dividends so our dividend growth investing journey so our dividend growth investing journey so our dividend growth investing journey started right around a year ago started right around a year ago started right around a year ago i mean over the course of the past year i mean over the course of the past year i mean over the course of the past year it's been awesome to see the progress it's been awesome to see the progress it's been awesome to see the progress we started off in our first month or two we started off in our first month or two we started off in our first month or two getting dividend payments of maybe getting dividend payments of maybe getting dividend payments of maybe cents um so pretty cents um so pretty cents um so pretty insignificant when you look at it insignificant when you look at it insignificant when you look at it i will say he said trust me this is i will say he said trust me this is i will say he said trust me this is gonna work gonna work gonna work and i was like all right fire i'm and i was like all right fire i'm and i was like all right fire i'm getting cents i cannot even buy a getting cents i cannot even buy a getting cents i cannot even buy a candy bar candy bar candy bar but flash forward so but flash forward so but flash forward so when you're able to trust me um we are when you're able to trust me um we are when you're able to trust me um we are able to see that number grow able to see that number grow able to see that number grow over time so as you keep putting money over time so as you keep putting money over time so as you keep putting money in in in the number keeps compounding on top of the number keeps compounding on top of the number keeps compounding on top of itself um so those numbers itself um so those numbers itself um so those numbers go from like cents to now we're go from like cents to now we're go from like cents to now we're getting getting getting dividend payments of up to each um so dividend payments of up to each um so dividend payments of up to each um so that's pretty awesome to see when you that's pretty awesome to see when you that's pretty awesome to see when you wake up in the morning wake up in the morning wake up in the morning get a notification on your phone and get a notification on your phone and get a notification on your phone and it's like hey you got paid it's like hey you got paid it's like hey you got paid in dividends we're like all we did to in dividends we're like all we did to in dividends we're like all we did to do that was put in some money a year ago do that was put in some money a year ago do that was put in some money a year ago and we're able to see it grow to this and we're able to see it grow to this and we're able to see it grow to this point so the main key to this is that point so the main key to this is that point so the main key to this is that the more you invest over time the more you invest over time the more you invest over time the faster this number is gonna grow um the faster this number is gonna grow um the faster this number is gonna grow um so over the course of the past year so over the course of the past year so over the course of the past year we've gotten to a point where roughly we've gotten to a point where roughly we've gotten to a point where roughly of our monthly expenses are covered of our monthly expenses are covered of our monthly expenses are covered through dividends through dividends through dividends um and i think that's pretty awesome i um and i think that's pretty awesome i um and i think that's pretty awesome i mean it's been a year of time mean it's been a year of time mean it's been a year of time so in theory if you were to do this for so in theory if you were to do this for so in theory if you were to do this for years years years you could live off of that income so you could live off of that income so you could live off of that income so that's an overview of the fire movement that's an overview of the fire movement that's an overview of the fire movement of dividend growth investing and why we of dividend growth investing and why we of dividend growth investing and why we picked it picked it picked it and now how you are going to go out and now how you are going to go out and now how you are going to go out conquer the world and learn conquer the world and learn conquer the world and learn more about it so stay tuned with our more about it so stay tuned with our more about it so stay tuned with our channel livingwithless channel livingwithless channel livingwithless to find out what investing platform we to find out what investing platform we to find out what investing platform we use for our personal use for our personal use for our personal journey as well as a big key of this is journey as well as a big key of this is journey as well as a big key of this is living frugally that will living frugally that will living frugally that will get you to your goals faster we'll be get you to your goals faster we'll be get you to your goals faster we'll be having a bunch of content having a bunch of content having a bunch of content on how we live minimalist so like on how we live minimalist so like on how we live minimalist so like subscribe to living with less and thanks subscribe to living with less and thanks subscribe to living with less and thanks for watching WEBVTT Kind: captions Language: en could you actually retire earlier than could you actually retire earlier than could you actually retire earlier than the government want you to do at or the government want you to do at or the government want you to do at or even I want to show you this simple even I want to show you this simple even I want to show you this simple mass that allows you to make this call a mass that allows you to make this call a mass that allows you to make this call a real possibility in your life I'm going real possibility in your life I'm going real possibility in your life I'm going to explain the formula it's often used to explain the formula it's often used to explain the formula it's often used to actually create that goal for you and to actually create that goal for you and to actually create that goal for you and then I'm going to talk you through some then I'm going to talk you through some then I'm going to talk you through some of my strategies and tips to actually of my strategies and tips to actually of my strategies and tips to actually achieve this goal is actually simpler achieve this goal is actually simpler achieve this goal is actually simpler than you might have thought so in than you might have thought so in than you might have thought so in today's video I hope it's gonna be the today's video I hope it's gonna be the today's video I hope it's gonna be the basics of financial independence basics of financial independence basics of financial independence retiring early or the fire movement hope retiring early or the fire movement hope retiring early or the fire movement hope it's gonna be really exciting for you to it's gonna be really exciting for you to it's gonna be really exciting for you to get some of these key concepts like the get some of these key concepts like the get some of these key concepts like the % rule how and when we can and can't % rule how and when we can and can't % rule how and when we can and can't apply it and then some of my strategies apply it and then some of my strategies apply it and then some of my strategies as well that we're using as a family to as well that we're using as a family to as well that we're using as a family to achieve financial freedom hi there achieve financial freedom hi there achieve financial freedom hi there welcome back to my channel today my name welcome back to my channel today my name welcome back to my channel today my name is Jennifer from Omaha AFRICOM I'm is Jennifer from Omaha AFRICOM I'm is Jennifer from Omaha AFRICOM I'm introduced Orbach personal finance introduced Orbach personal finance introduced Orbach personal finance investing and success mindset in the UK investing and success mindset in the UK investing and success mindset in the UK if you are brand new today I would love if you are brand new today I would love if you are brand new today I would love you to subscribe there's even a little you to subscribe there's even a little you to subscribe there's even a little bail notification button you hit that bail notification button you hit that bail notification button you hit that you'll always know when I've uploaded you'll always know when I've uploaded you'll always know when I've uploaded and if you are already a subscriber and if you are already a subscriber and if you are already a subscriber thank you so much how about giving this thank you so much how about giving this thank you so much how about giving this a thumbs up once you've watched all the a thumbs up once you've watched all the a thumbs up once you've watched all the way through so the shocking statistic is way through so the shocking statistic is way through so the shocking statistic is a % of people over the age of a % of people over the age of a % of people over the age of basically are worried about their basically are worried about their basically are worried about their retirement I do not want this to be you retirement I do not want this to be you retirement I do not want this to be you so if you're approaching that age or so if you're approaching that age or so if you're approaching that age or perhaps you're enter your s perhaps you're enter your s perhaps you're enter your s wanting to retire I want you to feel wanting to retire I want you to feel wanting to retire I want you to feel that you're as prepared as possible and that you're as prepared as possible and that you're as prepared as possible and it's all really to do with actually how it's all really to do with actually how it's all really to do with actually how we attack the concept of retiring I like we attack the concept of retiring I like we attack the concept of retiring I like to think of it not just retiring from to think of it not just retiring from to think of it not just retiring from the nine-to-five job the nine-to-five job the nine-to-five job actually they ain't giving you time and actually they ain't giving you time and actually they ain't giving you time and freedom to do what you love retirement freedom to do what you love retirement freedom to do what you love retirement shouldn't be the end of actually working shouldn't be the end of actually working shouldn't be the end of actually working it's all about having the choice on what it's all about having the choice on what it's all about having the choice on what you actually do want to work that's why you actually do want to work that's why you actually do want to work that's why we don't exchange our time effectively we don't exchange our time effectively we don't exchange our time effectively necessarily for money to pay the bills necessarily for money to pay the bills necessarily for money to pay the bills but we've got flexibility in our life but we've got flexibility in our life but we've got flexibility in our life we've got money we've got different we've got money we've got different we've got money we've got different incomes coming in that mean that our job incomes coming in that mean that our job incomes coming in that mean that our job our nine-to-five job is not the sole our nine-to-five job is not the sole our nine-to-five job is not the sole driver of our day and if you are in your driver of our day and if you are in your driver of our day and if you are in your s towards your late forties the s towards your late forties the s towards your late forties the statistic was actually % of people are statistic was actually % of people are statistic was actually % of people are concerned for the retirement income and concerned for the retirement income and concerned for the retirement income and also when they are able to retire so also when they are able to retire so also when they are able to retire so before we get started on the before we get started on the before we get started on the fundamentals of retiring fundamentals of retiring fundamentals of retiring before that age of or even in your before that age of or even in your before that age of or even in your s the basics are F here's someone s the basics are F here's someone s the basics are F here's someone who's approaching pension age or perhaps who's approaching pension age or perhaps who's approaching pension age or perhaps even you just want to make sure you're even you just want to make sure you're even you just want to make sure you're set up you're in your thirties like set up you're in your thirties like set up you're in your thirties like myself I want to make sure that our myself I want to make sure that our myself I want to make sure that our pensions are doing well I want to make pensions are doing well I want to make pensions are doing well I want to make sure we've got income starting to get sure we've got income starting to get sure we've got income starting to get lined up to support life the first thing lined up to support life the first thing lined up to support life the first thing I would always say as check actually I would always say as check actually I would always say as check actually what your state contribution would be so what your state contribution would be so what your state contribution would be so at the moment there's obviously a term at the moment there's obviously a term at the moment there's obviously a term that you've got to have years that you've got to have years that you've got to have years national insurance contributions to get national insurance contributions to get national insurance contributions to get the full state pension that obviously the full state pension that obviously the full state pension that obviously was just a number of years that you have was just a number of years that you have was just a number of years that you have accordingly so that amount in the moment accordingly so that amount in the moment accordingly so that amount in the moment is between and pounds pair of is between and pounds pair of is between and pounds pair of pierson which isn't a lot if that was pierson which isn't a lot if that was pierson which isn't a lot if that was your only income so I would first of all your only income so I would first of all your only income so I would first of all going the government's website check how going the government's website check how going the government's website check how many years you have you've saved up many years you have you've saved up many years you have you've saved up already you can actually even by years already you can actually even by years already you can actually even by years of qualification so if that's the first of qualification so if that's the first of qualification so if that's the first thing you need to do see how you thing you need to do see how you thing you need to do see how you relatively fear against what you might relatively fear against what you might relatively fear against what you might get from the government in later years get from the government in later years get from the government in later years the second thing I would do is actually the second thing I would do is actually the second thing I would do is actually know all the different pensions that you know all the different pensions that you know all the different pensions that you have so there's great services out there have so there's great services out there have so there's great services out there patellae by pension providers for patellae by pension providers for patellae by pension providers for private pensions such as pension bee and private pensions such as pension bee and private pensions such as pension bee and Virgin Money that they will actually go Virgin Money that they will actually go Virgin Money that they will actually go and find your long-lost pensions for you and find your long-lost pensions for you and find your long-lost pensions for you a lot of the time you're signed up a lot of the time you're signed up a lot of the time you're signed up automatically if I painted through an automatically if I painted through an automatically if I painted through an employer and suddenly the adoptions come employer and suddenly the adoptions come employer and suddenly the adoptions come out pre-tax I would forget it removed out pre-tax I would forget it removed out pre-tax I would forget it removed job we forget we have a pension pension job we forget we have a pension pension job we forget we have a pension pension me and virgin and other places will me and virgin and other places will me and virgin and other places will usually go and find that money for you usually go and find that money for you usually go and find that money for you and bring it back in to them as I mean and bring it back in to them as I mean and bring it back in to them as I mean pension provider I did this recently pension provider I did this recently pension provider I did this recently when my husband's pensions through a when my husband's pensions through a when my husband's pensions through a pension be and I'll leave a link below pension be and I'll leave a link below pension be and I'll leave a link below if you fancy using my referral link you if you fancy using my referral link you if you fancy using my referral link you and I both get pounds for our and I both get pounds for our and I both get pounds for our pensions but you know there's a lots of pensions but you know there's a lots of pensions but you know there's a lots of people out there that's just like a people out there that's just like a people out there that's just like a little bonus if you want to use pension little bonus if you want to use pension little bonus if you want to use pension be but they actually wane and got my be but they actually wane and got my be but they actually wane and got my husband's pensions are a long forgotten husband's pensions are a long forgotten husband's pensions are a long forgotten about about about brought it into one private pension that brought it into one private pension that brought it into one private pension that we can manage so honestly takes - we can manage so honestly takes - we can manage so honestly takes - minutes to set up a private pension minutes to set up a private pension minutes to set up a private pension account you don't have to have money in account you don't have to have money in account you don't have to have money in there but ask them to go and find these there but ask them to go and find these there but ask them to go and find these pots of money they're more money that pots of money they're more money that pots of money they're more money that you have in a pension that you know how you have in a pension that you know how you have in a pension that you know how to get access to then in the future you to get access to then in the future you to get access to then in the future you can use that to drive future income can use that to drive future income can use that to drive future income remember with App Engine of course you remember with App Engine of course you remember with App Engine of course you can't get access to until you're or can't get access to until you're or can't get access to until you're or if you're perhaps a little bit older if you're perhaps a little bit older if you're perhaps a little bit older watching this video watching this video watching this video so you know that that income is so you know that that income is so you know that that income is exclusively for the older parts of your exclusively for the older parts of your exclusively for the older parts of your life you obviously get tax uplift when life you obviously get tax uplift when life you obviously get tax uplift when you donate to pinch and so that means you donate to pinch and so that means you donate to pinch and so that means after a basic tax rate you get at least after a basic tax rate you get at least after a basic tax rate you get at least percent on top from the government if percent on top from the government if percent on top from the government if you're someone in the high bracket you you're someone in the high bracket you you're someone in the high bracket you could get up to percent on top could get up to percent on top could get up to percent on top so obviously it's tax efficient way of so obviously it's tax efficient way of so obviously it's tax efficient way of saving for your retirement but make sure saving for your retirement but make sure saving for your retirement but make sure you know how much I actually total you you know how much I actually total you you know how much I actually total you have in your pension as the first step I have in your pension as the first step I have in your pension as the first step I would recommend the final thing I would would recommend the final thing I would would recommend the final thing I would do if you're approaching your pension or do if you're approaching your pension or do if you're approaching your pension or you're thinking about pinched and you're thinking about pinched and you're thinking about pinched and explicit retirement but Tilley for those explicit retirement but Tilley for those explicit retirement but Tilley for those later years we've thought about our later years we've thought about our later years we've thought about our state pension I think honestly how much state pension I think honestly how much state pension I think honestly how much money are you seriously going to have money are you seriously going to have money are you seriously going to have only to use my hope would be that you only to use my hope would be that you only to use my hope would be that you and have some of their financial and have some of their financial and have some of their financial commitments such as a mortgage perhaps commitments such as a mortgage perhaps commitments such as a mortgage perhaps even having older children by then so even having older children by then so even having older children by then so that way since the burden in some way that way since the burden in some way that way since the burden in some way financially but look and see actually financially but look and see actually financially but look and see actually are you just relying on your state are you just relying on your state are you just relying on your state pension that's why it's so vital the pension that's why it's so vital the pension that's why it's so vital the earlier you start to think of that earlier you start to think of that earlier you start to think of that future money then actually you can start future money then actually you can start future money then actually you can start to create more incomes and obviously to create more incomes and obviously to create more incomes and obviously this channel is dedicated to passive this channel is dedicated to passive this channel is dedicated to passive incomes and also creating safe incomes and also creating safe incomes and also creating safe businesses everything that is outside businesses everything that is outside businesses everything that is outside our day job to get me as many incomes as our day job to get me as many incomes as our day job to get me as many incomes as possible I know right now my family possible I know right now my family possible I know right now my family actually has six income sources so our actually has six income sources so our actually has six income sources so our law was I mean it's make me small right law was I mean it's make me small right law was I mean it's make me small right now the gradual over time they could now the gradual over time they could now the gradual over time they could amount to actually making sure we have amount to actually making sure we have amount to actually making sure we have completely comfortable in later years completely comfortable in later years completely comfortable in later years the whole goal with fire financial the whole goal with fire financial the whole goal with fire financial independence retiring early is basically independence retiring early is basically independence retiring early is basically even beating that goal of fifty seven even beating that goal of fifty seven even beating that goal of fifty seven years or fifty five years the whole years or fifty five years the whole years or fifty five years the whole point is actually saving a large lump point is actually saving a large lump point is actually saving a large lump sum that we could actually draw an sum that we could actually draw an sum that we could actually draw an income from now how we do that is that income from now how we do that is that income from now how we do that is that large sum is usually invested in large sum is usually invested in large sum is usually invested in somewhere in the stock market so there's somewhere in the stock market so there's somewhere in the stock market so there's a great chance of a high interest rate a great chance of a high interest rate a great chance of a high interest rate every single year or we have a high every single year or we have a high every single year or we have a high yielding accounts in some way that means yielding accounts in some way that means yielding accounts in some way that means it's on autopilot that we can simply it's on autopilot that we can simply it's on autopilot that we can simply depend to that money and it keeps depend to that money and it keeps depend to that money and it keeps topping itself back up or even in most topping itself back up or even in most topping itself back up or even in most cases generating more and more every cases generating more and more every cases generating more and more every year so the concept you might have heard year so the concept you might have heard year so the concept you might have heard of is called the % rule it's generally of is called the % rule it's generally of is called the % rule it's generally regarded as a standard equation for regarded as a standard equation for regarded as a standard equation for working out that large pot some of money working out that large pot some of money working out that large pot some of money that you'll need so the total amount of that you'll need so the total amount of that you'll need so the total amount of money four percent would be our money four percent would be our money four percent would be our withdrawal rate every single year so how withdrawal rate every single year so how withdrawal rate every single year so how you do this as you calculate your total you do this as you calculate your total you do this as you calculate your total yearly expenditure that you use to keep yearly expenditure that you use to keep yearly expenditure that you use to keep your your your it's on to eat to drink the basic things it's on to eat to drink the basic things it's on to eat to drink the basic things that you need and you times that by that you need and you times that by that you need and you times that by that will then give you that total that will then give you that total that will then give you that total amount that you need to invest receive amount that you need to invest receive amount that you need to invest receive to live off % now obviously what to live off % now obviously what to live off % now obviously what happens as that amount is invested and happens as that amount is invested and happens as that amount is invested and you need to be achieving higher than you need to be achieving higher than you need to be achieving higher than five or six percent year-on-year growth five or six percent year-on-year growth five or six percent year-on-year growth average with that amount of money so average with that amount of money so average with that amount of money so let's think about it total amount of let's think about it total amount of let's think about it total amount of money we're going to commit to money we're going to commit to money we're going to commit to withdrawing only four percent to live withdrawing only four percent to live withdrawing only four percent to live off we can live off that fine for the off we can live off that fine for the off we can live off that fine for the year as you see the end trace or the year as you see the end trace or the year as you see the end trace or the year-on-year growth is at least five to year-on-year growth is at least five to year-on-year growth is at least five to six percent so that something means six percent so that something means six percent so that something means every year we're growing by six percent every year we're growing by six percent every year we're growing by six percent let's see we're taking me four so two let's see we're taking me four so two let's see we're taking me four so two percent difference that buffer is percent difference that buffer is percent difference that buffer is actually to help with inflation so actually to help with inflation so actually to help with inflation so that's why they see that little extra that's why they see that little extra that's why they see that little extra buffer is too low from natural living buffer is too low from natural living buffer is too low from natural living experiences to increase exciting think experiences to increase exciting think experiences to increase exciting think about that total amount of money is it's about that total amount of money is it's about that total amount of money is it's auto-generating as I say it's meant to auto-generating as I say it's meant to auto-generating as I say it's meant to be that you can live indefinitely be that you can live indefinitely be that you can live indefinitely of that total moat because we're only of that total moat because we're only of that total moat because we're only just withdrawing just enough to live off just withdrawing just enough to live off just withdrawing just enough to live off and it's keeping going with the increase and it's keeping going with the increase and it's keeping going with the increase every single year now in the UK at % every single year now in the UK at % every single year now in the UK at % real is actually adapted slightly real is actually adapted slightly real is actually adapted slightly we call it the . percent rule because we call it the . percent rule because we call it the . percent rule because the UK economy is a little bit more the UK economy is a little bit more the UK economy is a little bit more volatile in new uace where the rule volatile in new uace where the rule volatile in new uace where the rule first came from so if you're doing your first came from so if you're doing your first came from so if you're doing your calculation start by having that calculation start by having that calculation start by having that times your yearly amount but make sure times your yearly amount but make sure times your yearly amount but make sure that you're really allowing for some that you're really allowing for some that you're really allowing for some wiggle room they could perhaps be up to wiggle room they could perhaps be up to wiggle room they could perhaps be up to % times what you actually need so the % times what you actually need so the % times what you actually need so the year on your average of a stock market year on your average of a stock market year on your average of a stock market as a whole globally has been around to as a whole globally has been around to as a whole globally has been around to percent and that included the past percent and that included the past percent and that included the past years and that analysis so that included years and that analysis so that included years and that analysis so that included world wars that included depressions world wars that included depressions world wars that included depressions that included recessions and the average that included recessions and the average that included recessions and the average was still around to percent was still around to percent was still around to percent obviously if you picked the S&P obviously if you picked the S&P obviously if you picked the S&P which tracks the u.s. top performing which tracks the u.s. top performing which tracks the u.s. top performing companies that actually issued . companies that actually issued . companies that actually issued . percent year-on-year average growth in percent year-on-year average growth in percent year-on-year average growth in the past years the past years the past years however our good solid place would be however our good solid place would be however our good solid place would be assuming you could achieve between your assuming you could achieve between your assuming you could achieve between your or percent in your portfolio or percent in your portfolio or percent in your portfolio depending of course on what you selected depending of course on what you selected depending of course on what you selected as your funds to invest and so of course as your funds to invest and so of course as your funds to invest and so of course that % real Israel cannot be taken that % real Israel cannot be taken that % real Israel cannot be taken strictly as gospel what it doesn't strictly as gospel what it doesn't strictly as gospel what it doesn't factor in is actually the risk factor in factor in is actually the risk factor in factor in is actually the risk factor in your stock indexes your stock indexes your stock indexes you're investing in if you're more in you're investing in if you're more in you're investing in if you're more in claim ten base and riskier stocks that claim ten base and riskier stocks that claim ten base and riskier stocks that have a high rate of return but equally have a high rate of return but equally have a high rate of return but equally you could actually lose a lot more money you could actually lose a lot more money you could actually lose a lot more money then that four percent might not be that then that four percent might not be that then that four percent might not be that stable that you can actually withdraw stable that you can actually withdraw stable that you can actually withdraw that four percent will actually one year that four percent will actually one year that four percent will actually one year you could have ten percent you know a you could have ten percent you know a you could have ten percent you know a new growth but then minus fifteen so it new growth but then minus fifteen so it new growth but then minus fifteen so it doesn't only for stability the same way doesn't only for stability the same way doesn't only for stability the same way the four percent rule is really when the four percent rule is really when the four percent rule is really when you're keeping a good solid year-on-year you're keeping a good solid year-on-year you're keeping a good solid year-on-year growth progression the four percent will growth progression the four percent will growth progression the four percent will also requires that you stick to that also requires that you stick to that also requires that you stick to that amount every single year amount every single year amount every single year there's no good and taking it % then % there's no good and taking it % then % there's no good and taking it % then % and % every single year in changing it and % every single year in changing it and % every single year in changing it you need to commit to % then you can you need to commit to % then you can you need to commit to % then you can have some wiggle room on top should you have some wiggle room on top should you have some wiggle room on top should you achieve a higher than five or six achieve a higher than five or six achieve a higher than five or six percent and your your mere growth so it percent and your your mere growth so it percent and your your mere growth so it doesn't really allow for actually doesn't really allow for actually doesn't really allow for actually withdrawals from your large sum let's withdrawals from your large sum let's withdrawals from your large sum let's say to pay off your mortgage all of a say to pay off your mortgage all of a say to pay off your mortgage all of a sudden or you want to make home sudden or you want to make home sudden or you want to make home improvements you need to leave that part improvements you need to leave that part improvements you need to leave that part of money and only commit to a drawing of money and only commit to a drawing of money and only commit to a drawing board person the good thing of course is board person the good thing of course is board person the good thing of course is if you're consistently buying index if you're consistently buying index if you're consistently buying index funds are low cost so you're not losing funds are low cost so you're not losing funds are low cost so you're not losing a lot with charges you're getting good a lot with charges you're getting good a lot with charges you're getting good averages of even six seven eight percent averages of even six seven eight percent averages of even six seven eight percent you don't grow that you're being you don't grow that you're being you don't grow that you're being creative well then you know that % is creative well then you know that % is creative well then you know that % is something that you can rely on I would something that you can rely on I would something that you can rely on I would suggest the with retiring early a lot of suggest the with retiring early a lot of suggest the with retiring early a lot of people don't only just rely on the stock people don't only just rely on the stock people don't only just rely on the stock market for their income like me they market for their income like me they market for their income like me they maybe have a business on the side they maybe have a business on the side they maybe have a business on the side they maybe do other passive incomes so I maybe do other passive incomes so I maybe do other passive incomes so I wouldn't just put all your eggs in one wouldn't just put all your eggs in one wouldn't just put all your eggs in one basket even in the stock market I would basket even in the stock market I would basket even in the stock market I would make sure this is part of your strategy make sure this is part of your strategy make sure this is part of your strategy use it as the bulk of your income use it as the bulk of your income use it as the bulk of your income perhaps knowing also you put your perhaps knowing also you put your perhaps knowing also you put your pension coming along from the state pension coming along from the state pension coming along from the state hopefully or private pensions but also hopefully or private pensions but also hopefully or private pensions but also make sure you've got week to actually make sure you've got week to actually make sure you've got week to actually generate money in your life on your own generate money in your life on your own generate money in your life on your own merits as well so if we're going to our merits as well so if we're going to our merits as well so if we're going to our budgeting what can other us to drive budgeting what can other us to drive budgeting what can other us to drive financial freedom on a daily basis is financial freedom on a daily basis is financial freedom on a daily basis is all down to your budget and there's one all down to your budget and there's one all down to your budget and there's one factor that will determine how quickly factor that will determine how quickly factor that will determine how quickly you can retire early so hitting that big you can retire early so hitting that big you can retire early so hitting that big pot of money actually making that happen pot of money actually making that happen pot of money actually making that happen all depends on how much you are saving all depends on how much you are saving all depends on how much you are saving every single month there is no way every single month there is no way every single month there is no way around it basically if you were able to around it basically if you were able to around it basically if you were able to achieve a % of your monthly income was achieve a % of your monthly income was achieve a % of your monthly income was going straight to savings for financial going straight to savings for financial going straight to savings for financial freedom it would roughly tteyuu freedom it would roughly tteyuu freedom it would roughly tteyuu fifty-one years to retire that means fifty-one years to retire that means fifty-one years to retire that means that portion that % would eventually that portion that % would eventually that portion that % would eventually in years built up to the lumps on the in years built up to the lumps on the in years built up to the lumps on the need to live off % if we manage to need to live off % if we manage to need to live off % if we manage to achieve let's say % savings rate achieve let's say % savings rate achieve let's say % savings rate towards our large stock that would they towards our large stock that would they towards our large stock that would they mean that you can retire roughly between mean that you can retire roughly between mean that you can retire roughly between to years time and if you manage to to years time and if you manage to to years time and if you manage to pull % or your budget was straight to pull % or your budget was straight to pull % or your budget was straight to savings well then you could retire in savings well then you could retire in savings well then you could retire in years of course what I must say says my years of course what I must say says my years of course what I must say says my goal is never to live with frugality so goal is never to live with frugality so goal is never to live with frugality so life suffers right now so that we can life suffers right now so that we can life suffers right now so that we can achieve financial freedom I believe your achieve financial freedom I believe your achieve financial freedom I believe your budget should support all your dreams budget should support all your dreams budget should support all your dreams right now you're working towards those right now you're working towards those right now you're working towards those goals and so far as we've managed to goals and so far as we've managed to goals and so far as we've managed to achieve to percent savings at the achieve to percent savings at the achieve to percent savings at the moment when I'm making this video but moment when I'm making this video but moment when I'm making this video but then I'm working on actually bringing then I'm working on actually bringing then I'm working on actually bringing more income into our house that means a more income into our house that means a more income into our house that means a standard of living remains the same but standard of living remains the same but standard of living remains the same but naturally our savings rate can increase naturally our savings rate can increase naturally our savings rate can increase as well so don't just look at your as well so don't just look at your as well so don't just look at your budget your income as a final I mean budget your income as a final I mean budget your income as a final I mean that can ever enter your life look at that can ever enter your life look at that can ever enter your life look at ways to bring more income and then put ways to bring more income and then put ways to bring more income and then put your savings rate up naturally high or your savings rate up naturally high or your savings rate up naturally high or without the standard of living drop so without the standard of living drop so without the standard of living drop so if you fancy some ideas about different if you fancy some ideas about different if you fancy some ideas about different businesses you can start from home I businesses you can start from home I businesses you can start from home I have a video a bit passive income ideas have a video a bit passive income ideas have a video a bit passive income ideas go check it out and I'll leave it in the go check it out and I'll leave it in the go check it out and I'll leave it in the description bar below finally these description bar below finally these description bar below finally these would be my top tips after someone who's would be my top tips after someone who's would be my top tips after someone who's wanting to retire early it's only wanting to retire early it's only wanting to retire early it's only earlier than the retirement age that the earlier than the retirement age that the earlier than the retirement age that the government make perhaps want you to government make perhaps want you to government make perhaps want you to retire well the first thing to do is retire well the first thing to do is retire well the first thing to do is look at your budget first of all you've look at your budget first of all you've look at your budget first of all you've got to have a budget there's no way got to have a budget there's no way got to have a budget there's no way around it you've got to be siphoning off around it you've got to be siphoning off around it you've got to be siphoning off a part of your money every single month a part of your money every single month a part of your money every single month on autopilot towards this fantastic goal on autopilot towards this fantastic goal on autopilot towards this fantastic goal I would really say try and start with % I would really say try and start with % I would really say try and start with % or % the higher you go officer the or % the higher you go officer the or % the higher you go officer the quicker you're going to make it but quicker you're going to make it but quicker you're going to make it but don't let the rest of life suffer build don't let the rest of life suffer build don't let the rest of life suffer build also those multiple income sources that also those multiple income sources that also those multiple income sources that will be really the chase me when will be really the chase me when will be really the chase me when security comes into your life so it's security comes into your life so it's security comes into your life so it's financial independence yes independence financial independence yes independence financial independence yes independence from our job but actually it's more than from our job but actually it's more than from our job but actually it's more than that it's security it's actually knowing that it's security it's actually knowing that it's security it's actually knowing that we are in control of our income that we are in control of our income that we are in control of our income it's not somebody else deciding what we it's not somebody else deciding what we it's not somebody else deciding what we get but we actually can have full effect get but we actually can have full effect get but we actually can have full effect on our profits and what we have in our on our profits and what we have in our on our profits and what we have in our house so start to think about multiple house so start to think about multiple house so start to think about multiple incomes incomes incomes Kuja offer a talent on our service Kuja offer a talent on our service Kuja offer a talent on our service something different something to solve a something different something to solve a something different something to solve a problem for someone else could you problem for someone else could you problem for someone else could you monetize that in some way could you monetize that in some way could you monetize that in some way could you start a blog a YouTube channel whatever start a blog a YouTube channel whatever start a blog a YouTube channel whatever you fancy you fancy you fancy maybe start to get a saint about just maybe start to get a saint about just maybe start to get a saint about just what you could create to think of these what you could create to think of these what you could create to think of these multiple sources the great thing is of multiple sources the great thing is of multiple sources the great thing is of course if you have a day job which of course if you have a day job which of course if you have a day job which of course I absolutely fully support you course I absolutely fully support you course I absolutely fully support you can have investment portfolio and legal can have investment portfolio and legal can have investment portfolio and legal you've started with two sources of you've started with two sources of you've started with two sources of income already my next tip as I've said income already my next tip as I've said income already my next tip as I've said it time and time again simply earn more it time and time again simply earn more it time and time again simply earn more than you spend get rid of your consumer than you spend get rid of your consumer than you spend get rid of your consumer day as quickly as you can if you've got day as quickly as you can if you've got day as quickly as you can if you've got a mortgage that's absolutely fine throw a mortgage that's absolutely fine throw a mortgage that's absolutely fine throw money at it by using my team percent money at it by using my team percent money at it by using my team percent rule so paying more than ten percent in rule so paying more than ten percent in rule so paying more than ten percent in the monthly amounts simple and easy and the monthly amounts simple and easy and the monthly amounts simple and easy and you're getting rid of your debt because you're getting rid of your debt because you're getting rid of your debt because obviously the least amount of financial obviously the least amount of financial obviously the least amount of financial obligations you have the least amount of obligations you have the least amount of obligations you have the least amount of money that you need to actually live off money that you need to actually live off money that you need to actually live off and then naturally the pot of money that and then naturally the pot of money that and then naturally the pot of money that you need to be financially independent you need to be financially independent you need to be financially independent is much smaller finally make sure you're is much smaller finally make sure you're is much smaller finally make sure you're aware of actually what your retirement aware of actually what your retirement aware of actually what your retirement goals are are you wanting to happily goals are are you wanting to happily goals are are you wanting to happily work in your job for next een twenty work in your job for next een twenty work in your job for next een twenty years perhaps or in super-hard you years perhaps or in super-hard you years perhaps or in super-hard you really enjoy your job you're happy of really enjoy your job you're happy of really enjoy your job you're happy of content but allow yourself to work on a content but allow yourself to work on a content but allow yourself to work on a retirement strategy that doesn't rely on retirement strategy that doesn't rely on retirement strategy that doesn't rely on the government or your private pension the government or your private pension the government or your private pension we never know what will happen I like to we never know what will happen I like to we never know what will happen I like to think on my investment nice as almost think on my investment nice as almost think on my investment nice as almost like my many retirement I can get access like my many retirement I can get access like my many retirement I can get access to it whenever I want so that means I to it whenever I want so that means I to it whenever I want so that means I don't need to wait some or when don't need to wait some or when don't need to wait some or when somebody tells me I can have access I somebody tells me I can have access I somebody tells me I can have access I can get access to that money right now can get access to that money right now can get access to that money right now if I wanted to retire so make sure if I wanted to retire so make sure if I wanted to retire so make sure you're thinking about what is your you're thinking about what is your you're thinking about what is your actual retirement goal and what is your actual retirement goal and what is your actual retirement goal and what is your actual goals for your life this is all actual goals for your life this is all actual goals for your life this is all part of the bigger picture with your part of the bigger picture with your part of the bigger picture with your money I want you to do what you want I money I want you to do what you want I money I want you to do what you want I want you to have the best version of want you to have the best version of want you to have the best version of your life that you can and just your life that you can and just your life that you can and just retirement or retiring early or having retirement or retiring early or having retirement or retiring early or having passive or an active income that you passive or an active income that you passive or an active income that you work on it's all part of allowing you to work on it's all part of allowing you to work on it's all part of allowing you to have resources that allow you to have have resources that allow you to have have resources that allow you to have the life that you want thank you so much the life that you want thank you so much the life that you want thank you so much for watching I hope you really enjoyed for watching I hope you really enjoyed for watching I hope you really enjoyed that video as I see there's a ton of that video as I see there's a ton of that video as I see there's a ton of resources on this channel check out my resources on this channel check out my resources on this channel check out my based of my mother for a playlist just based of my mother for a playlist just based of my mother for a playlist just down below there is tons of ideas there down below there is tons of ideas there down below there is tons of ideas there of investment Isis how to start of investment Isis how to start of investment Isis how to start investing even my budget updates where I investing even my budget updates where I investing even my budget updates where I show you our house which is actually show you our house which is actually show you our house which is actually spending saving and investing I'd love spending saving and investing I'd love spending saving and investing I'd love also if you go over to mama for calm my also if you go over to mama for calm my also if you go over to mama for calm my website lots of resources there there's website lots of resources there there's website lots of resources there there's various calculators for savings and various calculators for savings and various calculators for savings and basements there's also blog post basements there's also blog post basements there's also blog post covering covering covering a lot of the financial topics I cover on a lot of the financial topics I cover on a lot of the financial topics I cover on this channel and I've also got products this channel and I've also got products this channel and I've also got products there to help you on your journey there to help you on your journey there to help you on your journey there's my autopilot spreadsheet system there's my autopilot spreadsheet system there's my autopilot spreadsheet system that allows you to budget pay off debt that allows you to budget pay off debt that allows you to budget pay off debt and base the whole works and base the whole works and base the whole works got my eCourse to help your budget got my eCourse to help your budget got my eCourse to help your budget better and if you fancy checking it my better and if you fancy checking it my better and if you fancy checking it my book it's all there as well and finally book it's all there as well and finally book it's all there as well and finally every fancy following me dd behind the every fancy following me dd behind the every fancy following me dd behind the scenes go and check me out on instagram scenes go and check me out on instagram scenes go and check me out on instagram at mama frou-frou I'd love to have you at mama frou-frou I'd love to have you at mama frou-frou I'd love to have you there so thank you so much for watching there so thank you so much for watching there so thank you so much for watching I'll see you very soon WEBVTT Kind: captions Language: en [Music] hey just ran six miles so and took a hey just ran six miles so and took a hey just ran six miles so and took a shower but I'm still sweating hey guys shower but I'm still sweating hey guys shower but I'm still sweating hey guys it's Dana and it's time to talk about it's Dana and it's time to talk about it's Dana and it's time to talk about money and today I wanted to talk about money and today I wanted to talk about money and today I wanted to talk about retiring using the fire method okay so retiring using the fire method okay so retiring using the fire method okay so for many years now there has been this for many years now there has been this for many years now there has been this whole movement called the fire movement whole movement called the fire movement whole movement called the fire movement certain bloggers made it really popular certain bloggers made it really popular certain bloggers made it really popular mister money mustache and the frugal mister money mustache and the frugal mister money mustache and the frugal woods woods woods I've read the frugal woods book recently I've read the frugal woods book recently I've read the frugal woods book recently by the way and it was it was very good I by the way and it was it was very good I by the way and it was it was very good I recommend it but it's a movement recommend it but it's a movement recommend it but it's a movement basically four not four but mostly basically four not four but mostly basically four not four but mostly adopted by people in their s and s adopted by people in their s and s adopted by people in their s and s and fire is an acronym of course and fire is an acronym of course and fire is an acronym of course everything's an acronym and it stands everything's an acronym and it stands everything's an acronym and it stands for a financial independence retire for a financial independence retire for a financial independence retire early right so those two parts of it early right so those two parts of it early right so those two parts of it first part is financial independence first part is financial independence first part is financial independence second part is to retire early and the second part is to retire early and the second part is to retire early and the basis of this whole this whole method is basis of this whole this whole method is basis of this whole this whole method is to live extremely frugal and to save to live extremely frugal and to save to live extremely frugal and to save really aggressively so that you can really aggressively so that you can really aggressively so that you can retire early retire early retire early right then have financial independence right then have financial independence right then have financial independence at which again financial independence at which again financial independence at which again financial independence can mean many things to you but in a can mean many things to you but in a can mean many things to you but in a nutshell it's to have choices I see this nutshell it's to have choices I see this nutshell it's to have choices I see this a lot because I watch a lot of camper a lot because I watch a lot of camper a lot because I watch a lot of camper videos cuz I'm into campers and there's videos cuz I'm into campers and there's videos cuz I'm into campers and there's a lot of Millennials that have just a lot of Millennials that have just a lot of Millennials that have just decided to sell everything live in these decided to sell everything live in these decided to sell everything live in these little egg campers so casitas or scamp little egg campers so casitas or scamp little egg campers so casitas or scamp trailers and they just travel around and trailers and they just travel around and trailers and they just travel around and they do you know they have a bunch of they do you know they have a bunch of they do you know they have a bunch of little side hustles that help them I'm little side hustles that help them I'm little side hustles that help them I'm sure financially but um they are living sure financially but um they are living sure financially but um they are living no free and if you're going to be on no free and if you're going to be on no free and if you're going to be on fire fire fire then you're going to living mindfully then you're going to living mindfully then you're going to living mindfully and be really aware of your expenses and and be really aware of your expenses and and be really aware of your expenses and only do things that really truly are of only do things that really truly are of only do things that really truly are of value to you but mindfulness and value to you but mindfulness and value to you but mindfulness and minimalism that minimalism that minimalism that is also the basis for the fire method is also the basis for the fire method is also the basis for the fire method and the main premise is to retire early and the main premise is to retire early and the main premise is to retire early in your s s or s right retire in in your s s or s right retire in in your s s or s right retire in your s or even or even sometimes in your s or even or even sometimes in your s or even or even sometimes in your s and in order to do that you your s and in order to do that you your s and in order to do that you have to be aware of your spending right have to be aware of your spending right have to be aware of your spending right be really aware of your expenses and be really aware of your expenses and be really aware of your expenses and save as much as you can save as much as you can save as much as you can I think the frugal woods they had saved I think the frugal woods they had saved I think the frugal woods they had saved % of their income to really build up % of their income to really build up % of their income to really build up their wealth so you have to invest their wealth so you have to invest their wealth so you have to invest invest invest invest so if you start invest invest invest so if you start invest invest invest so if you start early and you don't waste money and you early and you don't waste money and you early and you don't waste money and you live extremely frugal then you can live extremely frugal then you can live extremely frugal then you can retire early and find financial retire early and find financial retire early and find financial independence so those two ways to do the independence so those two ways to do the independence so those two ways to do the fire method you can do the lean fire fire method you can do the lean fire fire method you can do the lean fire method or the what's called fat fire method or the what's called fat fire method or the what's called fat fire method so if you are extremely frugal I method so if you are extremely frugal I method so if you are extremely frugal I think like % of the people who follow think like % of the people who follow think like % of the people who follow fire are doing the lean fire method fire are doing the lean fire method fire are doing the lean fire method which means you live extremely frugal II which means you live extremely frugal II which means you live extremely frugal II and they are usually very minimalistic and they are usually very minimalistic and they are usually very minimalistic and the focus is not on earning more and the focus is not on earning more and the focus is not on earning more it's on spending less if you are not as it's on spending less if you are not as it's on spending less if you are not as frugal and you don't think that you can frugal and you don't think that you can frugal and you don't think that you can cut expenses that drastically then you cut expenses that drastically then you cut expenses that drastically then you would be in the fat fire method group would be in the fat fire method group would be in the fat fire method group which means that the focus is more on which means that the focus is more on which means that the focus is more on earning the most amount of money you can earning the most amount of money you can earning the most amount of money you can earn so that you can save the maximum earn so that you can save the maximum earn so that you can save the maximum amount that you could and you're not as amount that you could and you're not as amount that you could and you're not as frugal so those are the two ways you can frugal so those are the two ways you can frugal so those are the two ways you can be you don't have to be super frugal or be you don't have to be super frugal or be you don't have to be super frugal or extremely frugal in order to do this you extremely frugal in order to do this you extremely frugal in order to do this you just have to you can be you know just just have to you can be you know just just have to you can be you know just earn more make your focus be on having earn more make your focus be on having earn more make your focus be on having multiple side hustles increasing your multiple side hustles increasing your multiple side hustles increasing your potential earnings and just work work potential earnings and just work work potential earnings and just work work work work work to make as much money as work work work to make as much money as work work work to make as much money as you can as fast as you can you can as fast as you can you can as fast as you can that way you can retire early alright so that way you can retire early alright so that way you can retire early alright so in my opinion it's all about getting out in my opinion it's all about getting out in my opinion it's all about getting out of debt first you can't retire if you of debt first you can't retire if you of debt first you can't retire if you still have debt you want to get rid of still have debt you want to get rid of still have debt you want to get rid of payments because if you get rid of payments because if you get rid of payments because if you get rid of payments then you can take your income payments then you can take your income payments then you can take your income and you can save and you can save and you can save the most amount of it that's humanly the most amount of it that's humanly the most amount of it that's humanly possible right if you have all these possible right if you have all these possible right if you have all these payments if you have debt you're not payments if you have debt you're not payments if you have debt you're not going to save a lot of money so number going to save a lot of money so number going to save a lot of money so number one if you're going to be following the one if you're going to be following the one if you're going to be following the fire method and you're interested in fire method and you're interested in fire method and you're interested in retiring early you have got to get out retiring early you have got to get out retiring early you have got to get out of debt and stop borrowing money so all of debt and stop borrowing money so all of debt and stop borrowing money so all the money you make you can just start the money you make you can just start the money you make you can just start saving saving saving saving saving so saving saving saving saving saving so saving saving saving saving saving so the variables with the fire method are the variables with the fire method are the variables with the fire method are your income your spending and time your income your spending and time your income your spending and time because it's going to require some because it's going to require some because it's going to require some patience in order to follow this method patience in order to follow this method patience in order to follow this method so if you have a goal and you know when so if you have a goal and you know when so if you have a goal and you know when you want to retire or it maybe it's five you want to retire or it maybe it's five you want to retire or it maybe it's five years ten years years years then years ten years years years then years ten years years years then you know your timeline you have your you know your timeline you have your you know your timeline you have your goal and then you can work on your goal and then you can work on your goal and then you can work on your income and then you can work on saving income and then you can work on saving income and then you can work on saving the amount of money that you need to the amount of money that you need to the amount of money that you need to save within the fire method they say save within the fire method they say save within the fire method they say that you should have a % withdrawal that you should have a % withdrawal that you should have a % withdrawal rate from your investments so that way rate from your investments so that way rate from your investments so that way you're not killing the goose sort of you're not killing the goose sort of you're not killing the goose sort of speak write your investments are your speak write your investments are your speak write your investments are your your golden goose your you know that's your golden goose your you know that's your golden goose your you know that's your nest egg and you don't want to your nest egg and you don't want to your nest egg and you don't want to retie it you don't want to withdraw too retie it you don't want to withdraw too retie it you don't want to withdraw too much from it because then you're gonna much from it because then you're gonna much from it because then you're gonna dwindle it down to nothing right so you dwindle it down to nothing right so you dwindle it down to nothing right so you only want to take out four percent so I only want to take out four percent so I only want to take out four percent so I have a little chart here which kind of have a little chart here which kind of have a little chart here which kind of shows you how much money you need to shows you how much money you need to shows you how much money you need to have saved if you're going to be have saved if you're going to be have saved if you're going to be spending a certain amount per year if spending a certain amount per year if spending a certain amount per year if you are gone if your expenses are forty you are gone if your expenses are forty you are gone if your expenses are forty eight thousand dollars a year then you eight thousand dollars a year then you eight thousand dollars a year then you need to have saved . million dollars need to have saved . million dollars need to have saved . million dollars if you want to live off of sixty if you want to live off of sixty if you want to live off of sixty thousand a year then you need to have thousand a year then you need to have thousand a year then you need to have saved . million dollars before you can saved . million dollars before you can saved . million dollars before you can retire so that gives you something to retire so that gives you something to retire so that gives you something to think about so basically you need to think about so basically you need to think about so basically you need to have become a millionaire in order to have become a millionaire in order to have become a millionaire in order to retire so if you want to retire early retire so if you want to retire early retire so if you want to retire early those are the numbers which means you those are the numbers which means you those are the numbers which means you have to start saving aggressively in an have to start saving aggressively in an have to start saving aggressively in an investment account investment account investment account hopefully you're choosing mutual funds hopefully you're choosing mutual funds hopefully you're choosing mutual funds that have at least a % rate of return that have at least a % rate of return that have at least a % rate of return and then you can start to build up your and then you can start to build up your and then you can start to build up your nest egg so that you can have financial nest egg so that you can have financial nest egg so that you can have financial freedom and retire early if that's what freedom and retire early if that's what freedom and retire early if that's what you so desire personally I think it can you so desire personally I think it can you so desire personally I think it can get really boring to not have any kind get really boring to not have any kind get really boring to not have any kind of work not to be giving back to society of work not to be giving back to society of work not to be giving back to society in any way in any way in any way but of course as I always say choices but of course as I always say choices but of course as I always say choices are the ultimate goal and that's what to are the ultimate goal and that's what to are the ultimate goal and that's what to me that's what financial freedom is is me that's what financial freedom is is me that's what financial freedom is is having the choice to work or not work having the choice to work or not work having the choice to work or not work and to choose what kind of work you'd and to choose what kind of work you'd and to choose what kind of work you'd like to do and not feel that you are like to do and not feel that you are like to do and not feel that you are enslaved to debt or to other enslaved to debt or to other enslaved to debt or to other responsibilities you have enough money responsibilities you have enough money responsibilities you have enough money that you can live freely and do what you that you can live freely and do what you that you can live freely and do what you choose to do within reason I think choose to do within reason I think choose to do within reason I think frugality is always a good thing frugality is always a good thing frugality is always a good thing even if you were a multi-millionaire I even if you were a multi-millionaire I even if you were a multi-millionaire I still don't like to I don't like the still don't like to I don't like the still don't like to I don't like the idea of wasting money not that you idea of wasting money not that you idea of wasting money not that you shouldn't enjoy your money when you get shouldn't enjoy your money when you get shouldn't enjoy your money when you get to that point I fully believe that you to that point I fully believe that you to that point I fully believe that you should you have earned it you work for should you have earned it you work for should you have earned it you work for it and it should be enjoyed it also it and it should be enjoyed it also it and it should be enjoyed it also should be given and it should be saved should be given and it should be saved should be given and it should be saved right just be trying to have a long term right just be trying to have a long term right just be trying to have a long term view with all things goals are view with all things goals are view with all things goals are incredibly important in my opinion incredibly important in my opinion incredibly important in my opinion otherwise we all just get stagnant it's otherwise we all just get stagnant it's otherwise we all just get stagnant it's important to have things to shoot for important to have things to shoot for important to have things to shoot for just keep raising the bar raising the just keep raising the bar raising the just keep raising the bar raising the bar it's sort of like running longer I bar it's sort of like running longer I bar it's sort of like running longer I run then the longer I try to run even run then the longer I try to run even run then the longer I try to run even further I try to run even further the further I try to run even further the further I try to run even further the next time because then that my long run next time because then that my long run next time because then that my long run is going to seem like a short run in is going to seem like a short run in is going to seem like a short run in time so it's the same principle so you time so it's the same principle so you time so it's the same principle so you have to keep raising the bar higher for have to keep raising the bar higher for have to keep raising the bar higher for yourself and keep setting new goals that yourself and keep setting new goals that yourself and keep setting new goals that you can continue to grow and improve in you can continue to grow and improve in you can continue to grow and improve in life and other because we're either life and other because we're either life and other because we're either either getting better or getting worse either getting better or getting worse either getting better or getting worse it's one way or the other right your it's one way or the other right your it's one way or the other right your kids are either getting better or kids are either getting better or kids are either getting better or getting worse your finances are getting getting worse your finances are getting getting worse your finances are getting better or getting worse now usually better or getting worse now usually better or getting worse now usually we're never just staying the same so we we're never just staying the same so we we're never just staying the same so we want everything to continue to get want everything to continue to get want everything to continue to get better so if you've never heard of it better so if you've never heard of it better so if you've never heard of it before that is the fire method financial before that is the fire method financial before that is the fire method financial independence and retire early two ways independence and retire early two ways independence and retire early two ways either lean or fat - two ways if it's either lean or fat - two ways if it's either lean or fat - two ways if it's your first time here be sure to your first time here be sure to your first time here be sure to subscribe and here every single Tuesday subscribe and here every single Tuesday subscribe and here every single Tuesday talking all about money and we are a talking all about money and we are a talking all about money and we are a family of six living in the Philadelphia family of six living in the Philadelphia family of six living in the Philadelphia area and I'm here to hopefully help to area and I'm here to hopefully help to area and I'm here to hopefully help to inspire and motivate you to get out of inspire and motivate you to get out of inspire and motivate you to get out of debt build wealth and to live more debt build wealth and to live more debt build wealth and to live more frugally I'll talk to you the next video frugally I'll talk to you the next video frugally I'll talk to you the next video bye guys WEBVTT Kind: captions Language: en hi everyone this is the focus fender and hi everyone this is the focus fender and hi everyone this is the focus fender and today I'm going to be talking to you today I'm going to be talking to you today I'm going to be talking to you about the fire movement but first if about the fire movement but first if about the fire movement but first if you're new to my channel I would love you're new to my channel I would love you're new to my channel I would love you to subscribe my channel is all about you to subscribe my channel is all about you to subscribe my channel is all about getting out of debt staying out of debt getting out of debt staying out of debt getting out of debt staying out of debt organizing your personal finances and organizing your personal finances and organizing your personal finances and increasing your net worth and if you'd increasing your net worth and if you'd increasing your net worth and if you'd like to follow me on social media you like to follow me on social media you like to follow me on social media you can find me at focus fender on Facebook can find me at focus fender on Facebook can find me at focus fender on Facebook Instagram and Twitter now let's get Instagram and Twitter now let's get Instagram and Twitter now let's get started so earlier this week a few started so earlier this week a few started so earlier this week a few people tagged me in this article that people tagged me in this article that people tagged me in this article that has been going around in the New York has been going around in the New York has been going around in the New York Post and Business Insider calm and it's Post and Business Insider calm and it's Post and Business Insider calm and it's about a year old lawyer who works in about a year old lawyer who works in about a year old lawyer who works in New York City and this guy makes two New York City and this guy makes two New York City and this guy makes two hundred and seventy thousand dollars a hundred and seventy thousand dollars a hundred and seventy thousand dollars a year but it's saving seventy percent of year but it's saving seventy percent of year but it's saving seventy percent of his income because he wants to retire in his income because he wants to retire in his income because he wants to retire in the next three years so he already has the next three years so he already has the next three years so he already has saved about four hundred thousand saved about four hundred thousand saved about four hundred thousand dollars and to aid him in reaching early dollars and to aid him in reaching early dollars and to aid him in reaching early retirement he is living in New Jersey so retirement he is living in New Jersey so retirement he is living in New Jersey so that he can avoid the New York City that he can avoid the New York City that he can avoid the New York City taxes he only has about five or six old taxes he only has about five or six old taxes he only has about five or six old suits that he uses and he repairs them suits that he uses and he repairs them suits that he uses and he repairs them by hand by hand by hand he eats mainly rice and beans and he he eats mainly rice and beans and he he eats mainly rice and beans and he doesn't even turn on his heat in the doesn't even turn on his heat in the doesn't even turn on his heat in the wintertime because he is so focused on wintertime because he is so focused on wintertime because he is so focused on saving as much money as possible so that saving as much money as possible so that saving as much money as possible so that he can retire in the next three years he can retire in the next three years he can retire in the next three years now why is he doing this he is doing now why is he doing this he is doing now why is he doing this he is doing this because he is following the fire this because he is following the fire this because he is following the fire movement so fire stands for financial movement so fire stands for financial movement so fire stands for financial independence slash retire early so independence slash retire early so independence slash retire early so there's two phases to the fire movement there's two phases to the fire movement there's two phases to the fire movement to reach financial independence to reach financial independence to reach financial independence you basically have to amass a large you basically have to amass a large you basically have to amass a large enough nest egg or investment account enough nest egg or investment account enough nest egg or investment account that's going to allow you to retire in that's going to allow you to retire in that's going to allow you to retire in your s s or even s and live off of your s s or even s and live off of your s s or even s and live off of it for the rest of your life there's two it for the rest of your life there's two it for the rest of your life there's two methods you can follow if you're methods you can follow if you're methods you can follow if you're following the fire method and that is following the fire method and that is following the fire method and that is the lean fire method or the fat fire the lean fire method or the fat fire the lean fire method or the fat fire method now the lean fire method is when method now the lean fire method is when method now the lean fire method is when you are saving as much money as possible you are saving as much money as possible you are saving as much money as possible by drastically reducing your expenses so by drastically reducing your expenses so by drastically reducing your expenses so that means you might be living with that means you might be living with that means you might be living with roommates you're looking for ways to cut roommates you're looking for ways to cut roommates you're looking for ways to cut your cellphone bills you're looking for your cellphone bills you're looking for your cellphone bills you're looking for ways to cut your grocery bills you're ways to cut your grocery bills you're ways to cut your grocery bills you're cutting your own hair you're just doing cutting your own hair you're just doing cutting your own hair you're just doing whatever you possibly can and I'm giving whatever you possibly can and I'm giving whatever you possibly can and I'm giving you pretty standard ways you can save you pretty standard ways you can save you pretty standard ways you can save money but a lot of people who are money but a lot of people who are money but a lot of people who are following the lean method they are doing following the lean method they are doing following the lean method they are doing some drastic drastic some drastic drastic some drastic drastic to save money now the other method that to save money now the other method that to save money now the other method that you can follow is the fat fire method you can follow is the fat fire method you can follow is the fat fire method and the fat method is where you are and the fat method is where you are and the fat method is where you are basically increasing your your income as basically increasing your your income as basically increasing your your income as much as possible so that you're able to much as possible so that you're able to much as possible so that you're able to save as much as possible now thinking save as much as possible now thinking save as much as possible now thinking about the lean fire method or the fat about the lean fire method or the fat about the lean fire method or the fat fire method they both have a target fire method they both have a target fire method they both have a target number that you are trying to get to now number that you are trying to get to now number that you are trying to get to now the way that you get to your target the way that you get to your target the way that you get to your target number is that you're taking your annual number is that you're taking your annual number is that you're taking your annual expenses and multiplying that by that expenses and multiplying that by that expenses and multiplying that by that is a number that you need to save so is a number that you need to save so is a number that you need to save so let's say your annual expenses is let's say your annual expenses is let's say your annual expenses is $, then you just need to save you $, then you just need to save you $, then you just need to save you know six hundred thousand dollars but know six hundred thousand dollars but know six hundred thousand dollars but let's say your annual expenses is forty let's say your annual expenses is forty let's say your annual expenses is forty eight thousand dollars and you need to eight thousand dollars and you need to eight thousand dollars and you need to save . million dollars before you can save . million dollars before you can save . million dollars before you can even think about retiring in the fire even think about retiring in the fire even think about retiring in the fire movement the way you spend on that money movement the way you spend on that money movement the way you spend on that money in retirement is by withdrawing only % in retirement is by withdrawing only % in retirement is by withdrawing only % of your retirement account every single of your retirement account every single of your retirement account every single year so that you can live off of the key year so that you can live off of the key year so that you can live off of the key to your nest egg is to invest in low to your nest egg is to invest in low to your nest egg is to invest in low cost ETF funds that is hopefully gaining cost ETF funds that is hopefully gaining cost ETF funds that is hopefully gaining at least % in interest every single at least % in interest every single at least % in interest every single year give or take the market conditions year give or take the market conditions year give or take the market conditions so there's varying takes on the fire so there's varying takes on the fire so there's varying takes on the fire method but one thing that I've heard in method but one thing that I've heard in method but one thing that I've heard in a recent video is that % actually might a recent video is that % actually might a recent video is that % actually might be a little bit too high especially the be a little bit too high especially the be a little bit too high especially the younger that you retire so in this one younger that you retire so in this one younger that you retire so in this one calculation the the studies show that calculation the the studies show that calculation the the studies show that you actually should only be spending you actually should only be spending you actually should only be spending about . percent of your investment about . percent of your investment about . percent of your investment account every single year if you have account every single year if you have account every single year if you have retired really really early like some retired really really early like some retired really really early like some people do and they're in the fire method people do and they're in the fire method people do and they're in the fire method so I'm sure you're wondering what I the so I'm sure you're wondering what I the so I'm sure you're wondering what I the focus vendor ever followed the fire focus vendor ever followed the fire focus vendor ever followed the fire method and I could say that you know method and I could say that you know method and I could say that you know with everything I love to see what with everything I love to see what with everything I love to see what people are doing I love to see what goes people are doing I love to see what goes people are doing I love to see what goes into something and that I like to steal into something and that I like to steal into something and that I like to steal bits and pieces of it so personally bits and pieces of it so personally bits and pieces of it so personally saving % of my current income would be saving % of my current income would be saving % of my current income would be a stretch like I don't I don't know how a stretch like I don't I don't know how a stretch like I don't I don't know how I would do it I'm not actually looking I would do it I'm not actually looking I would do it I'm not actually looking to try I invent to try I invent to try I invent about to percent of my current about to percent of my current about to percent of my current income and that's just in my investment income and that's just in my investment income and that's just in my investment accounts and I do save another portion accounts and I do save another portion accounts and I do save another portion but the savings that I have for the most but the savings that I have for the most but the savings that I have for the most part is I'm saving it in sinking funds part is I'm saving it in sinking funds part is I'm saving it in sinking funds so that I could you know set the money so that I could you know set the money so that I could you know set the money aside for spending so it's not like this aside for spending so it's not like this aside for spending so it's not like this like the traditional savings where I'm like the traditional savings where I'm like the traditional savings where I'm just saving it forever and ever and ever just saving it forever and ever and ever just saving it forever and ever and ever for a rainy day because I do have my for a rainy day because I do have my for a rainy day because I do have my emergency fund for that rainy day if I emergency fund for that rainy day if I emergency fund for that rainy day if I ever tried the fire method I don't ever tried the fire method I don't ever tried the fire method I don't really see myself going the lien route really see myself going the lien route really see myself going the lien route where you're drastically reducing your where you're drastically reducing your where you're drastically reducing your expenditures I do love to find a good expenditures I do love to find a good expenditures I do love to find a good deal I do love to save money well I'm deal I do love to save money well I'm deal I do love to save money well I'm sure some people will disagree I don't sure some people will disagree I don't sure some people will disagree I don't feel like I'm an extremely frugal person feel like I'm an extremely frugal person feel like I'm an extremely frugal person I love to save money but I'm not doing I love to save money but I'm not doing I love to save money but I'm not doing anything drastic in order to do so so I anything drastic in order to do so so I anything drastic in order to do so so I think if I was to do the fire method I think if I was to do the fire method I think if I was to do the fire method I would have to do the fad fire method would have to do the fad fire method would have to do the fad fire method which is to increase my income like you which is to increase my income like you which is to increase my income like you know make my job for a raise or find a know make my job for a raise or find a know make my job for a raise or find a new job I'm not looking pretty job but new job I'm not looking pretty job but new job I'm not looking pretty job but find a new job that's gonna pay me a lot find a new job that's gonna pay me a lot find a new job that's gonna pay me a lot more money or you know do a video every more money or you know do a video every more money or you know do a video every single day so that I can drastically single day so that I can drastically single day so that I can drastically increase my youtube revenue so I think I increase my youtube revenue so I think I increase my youtube revenue so I think I would have to follow the fad method would have to follow the fad method would have to follow the fad method because I'm someone that actually is because I'm someone that actually is because I'm someone that actually is pretty good at keeping my expenses the pretty good at keeping my expenses the pretty good at keeping my expenses the same no matter how high my income gets same no matter how high my income gets same no matter how high my income gets so if I did it that's the method I would so if I did it that's the method I would so if I did it that's the method I would do personally I do think I'm gonna be do personally I do think I'm gonna be do personally I do think I'm gonna be able to retire early I just don't see able to retire early I just don't see able to retire early I just don't see myself retiring in my s and I think myself retiring in my s and I think myself retiring in my s and I think that's okay because I do like working I that's okay because I do like working I that's okay because I do like working I do I like what I do so I'm not like I do I like what I do so I'm not like I do I like what I do so I'm not like I don't feel that pressure to just quit my don't feel that pressure to just quit my don't feel that pressure to just quit my job and do a passion project or travel job and do a passion project or travel job and do a passion project or travel or anything like that so I don't see or anything like that so I don't see or anything like that so I don't see myself completely changing up my life myself completely changing up my life myself completely changing up my life today just to follow this movement but I today just to follow this movement but I today just to follow this movement but I am gonna steal some bits and pieces and am gonna steal some bits and pieces and am gonna steal some bits and pieces and because I'd love to see what people are because I'd love to see what people are because I'd love to see what people are doing and I love to try out things for doing and I love to try out things for doing and I love to try out things for myself let me know in the comments if myself let me know in the comments if myself let me know in the comments if you've heard of the fire movement if you you've heard of the fire movement if you you've heard of the fire movement if you try it out yourself if this is something try it out yourself if this is something try it out yourself if this is something that you're interested to seeing and that you're interested to seeing and that you're interested to seeing and learning more about I'll see you in the learning more about I'll see you in the learning more about I'll see you in the next video thanks bye bye WEBVTT Kind: captions Language: en [Music] [Music] [Music] you can port anything but not everything you can port anything but not everything you can port anything but not everything every choice is a trade-off against every choice is a trade-off against every choice is a trade-off against something else saying yes to one thing something else saying yes to one thing something else saying yes to one thing implicitly means saying no to something implicitly means saying no to something implicitly means saying no to something else and that doesn't just apply to your else and that doesn't just apply to your else and that doesn't just apply to your money it applies to your time your money it applies to your time your money it applies to your time your energy your focus your attention energy your focus your attention energy your focus your attention anything in your life it's a scarce or anything in your life it's a scarce or anything in your life it's a scarce or limited resource and so the questions limited resource and so the questions limited resource and so the questions become twofold number one what's most become twofold number one what's most become twofold number one what's most important to you what do you truly value important to you what do you truly value important to you what do you truly value and number two how do you make daily and number two how do you make daily and number two how do you make daily decisions accordingly how do your decisions accordingly how do your decisions accordingly how do your day-to-day actions reflect what you day-to-day actions reflect what you day-to-day actions reflect what you value the most answering these two value the most answering these two value the most answering these two questions requires a lifetime of daily questions requires a lifetime of daily questions requires a lifetime of daily practice and this podcast is here to practice and this podcast is here to practice and this podcast is here to help facilitate that my name is Paulo help facilitate that my name is Paulo help facilitate that my name is Paulo pant I'm the host of the afford anything pant I'm the host of the afford anything pant I'm the host of the afford anything podcast and the founder of afford podcast and the founder of afford podcast and the founder of afford anything calm today we have an anything calm today we have an anything calm today we have an incredibly special episode Suze Orman is incredibly special episode Suze Orman is incredibly special episode Suze Orman is on the show with us today on the show with us today on the show with us today Suze is one of the most well unknown Suze is one of the most well unknown Suze is one of the most well unknown financial education voices in America financial education voices in America financial education voices in America for many years she hosted the Suze Orman for many years she hosted the Suze Orman for many years she hosted the Suze Orman show on CNBC she's written show on CNBC she's written show on CNBC she's written best-selling books and she's been on best-selling books and she's been on best-selling books and she's been on Oprah Oprah Oprah Susie and I recently spent an hour Susie and I recently spent an hour Susie and I recently spent an hour talking about money and you're about to talking about money and you're about to talking about money and you're about to hear that conversation hear that conversation hear that conversation Suze has a very strong opinion about the Suze has a very strong opinion about the Suze has a very strong opinion about the fire movement which is stands for fire movement which is stands for fire movement which is stands for financial independence retire early we financial independence retire early we financial independence retire early we discussed that for about half of the discussed that for about half of the discussed that for about half of the interview many of you are going to be interview many of you are going to be interview many of you are going to be upset by what you're about to hear and upset by what you're about to hear and upset by what you're about to hear and so before we play this interview I would so before we play this interview I would so before we play this interview I would like to make a few things clear number like to make a few things clear number like to make a few things clear number one these do not represent my opinions one these do not represent my opinions one these do not represent my opinions as Paula pant nor do they represent the as Paula pant nor do they represent the as Paula pant nor do they represent the opinions of the afford anything podcast opinions of the afford anything podcast opinions of the afford anything podcast I am the interviewer my role is to ask I am the interviewer my role is to ask I am the interviewer my role is to ask questions my rule is not to argue but questions my rule is not to argue but questions my rule is not to argue but rather to listen and to ask questions rather to listen and to ask questions rather to listen and to ask questions number two I believe strongly in the number two I believe strongly in the number two I believe strongly in the value of listening to people who have value of listening to people who have value of listening to people who have opinions that are different than your opinions that are different than your opinions that are different than your own we talk a lot on this podcast about own we talk a lot on this podcast about own we talk a lot on this podcast about the importance of the importance of the importance of not staying inside of an echo chamber not staying inside of an echo chamber not staying inside of an echo chamber about the importance of not only about the importance of not only about the importance of not only listening to the voices that fuel your listening to the voices that fuel your listening to the voices that fuel your confirmation bias the following confirmation bias the following confirmation bias the following interview is not gonna fuel your interview is not gonna fuel your interview is not gonna fuel your confirmation bias it will do the confirmation bias it will do the confirmation bias it will do the opposite I know that this episode is opposite I know that this episode is opposite I know that this episode is going to be controversial I know that going to be controversial I know that going to be controversial I know that there will be a backlash and so that there will be a backlash and so that there will be a backlash and so that leads us to point number three there are leads us to point number three there are leads us to point number three there are three places in which I encourage you to three places in which I encourage you to three places in which I encourage you to leave your comments and remarks about leave your comments and remarks about leave your comments and remarks about today's episode number one are the show today's episode number one are the show today's episode number one are the show notes which are available at afford notes which are available at afford notes which are available at afford anything comm slash episode one five anything comm slash episode one five anything comm slash episode one five three there is a place in the show notes three there is a place in the show notes three there is a place in the show notes to leave comments and I encourage you to to leave comments and I encourage you to to leave comments and I encourage you to leave comments and to comment on other leave comments and to comment on other leave comments and to comment on other people's comments turn it into a forum people's comments turn it into a forum people's comments turn it into a forum turn it 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as a favor and I'm trusting you to consider this and I'm trusting you to consider this and I'm trusting you to consider this please do not leave this entire show a please do not leave this entire show a please do not leave this entire show a negative review as a result of this negative review as a result of this negative review as a result of this interview that you're about to hear interview that you're about to hear interview that you're about to hear sometimes when we bring a guest on our sometimes when we bring a guest on our sometimes when we bring a guest on our show and somebody doesn't like that show and somebody doesn't like that show and somebody doesn't like that particular individual guest it results particular individual guest it results particular individual guest it results in the entire show all episodes and in the entire show all episodes and in the entire show all episodes and many many hundreds more to come getting many many hundreds more to come getting many many 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episode even though that was only one episode out of and my fear about releasing out of and my fear about releasing out of and my fear about releasing today's episode is that I don't want the today's episode is that I don't want the today's episode is that I don't want the entire show to suffer this show that has entire show to suffer this show that has entire show to suffer this show that has existed since I don't want the existed since I don't want the existed since I don't want the ratings of this whole show to plummet ratings of this whole show to plummet ratings of this whole show to plummet because of one strongly because of one strongly because of one strongly opinionated polarizing guests who makes opinionated polarizing guests who makes opinionated polarizing guests who makes what you are about to hear are very what you are about to hear are very what you are about to hear are very controversial remarks that I personally controversial remarks that I personally controversial remarks that I personally do not agree with but that I think are do not agree with but that I think are do not agree with but that I think are important to hear now with that being important to hear now with that being important to hear now with that being said that disclaimer out of the way I said that disclaimer out of the way I said that disclaimer out of the way I hope you enjoy the next hour the hope you enjoy the next hour the hope you enjoy the next hour the conversation that's about to unfold conversation that's about to unfold conversation that's about to unfold about why Suze Orman hates the fire about why Suze Orman hates the fire about why Suze Orman hates the fire movement hi Susie hi Paula how are you movement hi Susie hi Paula how are you movement hi Susie hi Paula how are you I'm excellent how are you doing fabulous I'm excellent how are you doing fabulous I'm excellent how are you doing fabulous thank you Susie when we connected when I thank you Susie when we connected when I thank you Susie when we connected when I knew that you were going to be on this knew that you were going to be on this knew that you were going to be on this podcast I did something a little unusual podcast I did something a little unusual podcast I did something a little unusual I went to my audience I went to Facebook I went to my audience I went to Facebook I went to my audience I went to Facebook and Twitter and I asked them hey Susie and Twitter and I asked them hey Susie and Twitter and I asked them hey Susie Orman is gonna be on the show what do Orman is gonna be on the show what do Orman is gonna be on the show what do you want me to ask her so I normally you want me to ask her so I normally you want me to ask her so I normally don't crowdsource my interviews but this don't crowdsource my interviews but this don't crowdsource my interviews but this one this one is crowd-sourced are you one this one is crowd-sourced are you one this one is crowd-sourced are you ready I'm ready ready I'm ready ready I'm ready gofer excellent all right there is by gofer excellent all right there is by gofer excellent all right there is by far and away one question that was the far and away one question that was the far and away one question that was the most popular it was so popular in fact most popular it was so popular in fact most popular it was so popular in fact that an entire ancillary discussion that an entire ancillary discussion that an entire ancillary discussion broke out about what people speculated broke out about what people speculated broke out about what people speculated your answer might be have you heard of your answer might be have you heard of your answer might be have you heard of the fire movement yes yes of course I the fire movement yes yes of course I the fire movement yes yes of course I have and I hate it really I hate it I have and I hate it really I hate it I have and I hate it really I hate it I hate it I hate it and let me tell you hate it I hate it and let me tell you hate it I hate it and let me tell you why okay listen everybody I know you why okay listen everybody I know you why okay listen everybody I know you want to retire at at and but want to retire at at and but want to retire at at and but here is the problem as I speak to you as here is the problem as I speak to you as here is the problem as I speak to you as at years of age approaching as at years of age approaching as at years of age approaching as you get older things happen not only do you get older things happen not only do you get older things happen not only do things happen is you get older things things happen is you get older things things happen is you get older things happen when you are younger you're hit happen when you are younger you're hit happen when you are younger you're hit by a car you fall down on the ice you by a car you fall down on the ice you by a car you fall down on the ice you get sick you get cancer things happen get sick you get cancer things happen get sick you get cancer things happen and if you don't have a significant and if you don't have a significant and if you don't have a significant amount of money listen if you have amount of money listen if you have amount of money listen if you have or million dollars be like me or million dollars be like me or million dollars be like me okay do you have that kind of money and okay do you have that kind of money and okay do you have that kind of money and you want to retire fine but if you only you want to retire fine but if you only you want to retire fine but if you only have a few hundred thousand dollars or a have a few hundred thousand dollars or a have a few hundred thousand dollars or a million or two million dollars I'm here million or two million dollars I'm here million or two million dollars I'm here to tell you I doubt high to tell you I doubt high to tell you I doubt high illy that when you no longer have a illy that when you no longer have a illy that when you no longer have a paycheck coming in and you've invested paycheck coming in and you've invested paycheck coming in and you've invested that money and maybe it's making some that money and maybe it's making some that money and maybe it's making some interest for you or dividends or interest for you or dividends or interest for you or dividends or whatever if a catastrophe happens if whatever if a catastrophe happens if whatever if a catastrophe happens if something goes wrong what are you going something goes wrong what are you going something goes wrong what are you going to do you are going to burn up alive to do you are going to burn up alive to do you are going to burn up alive because you won't have the money to do because you won't have the money to do because you won't have the money to do it listen when my mom got older I was it listen when my mom got older I was it listen when my mom got older I was responsible for her I spent on her in responsible for her I spent on her in responsible for her I spent on her in seven years over two and a half million seven years over two and a half million seven years over two and a half million dollars and here's what the fire people dollars and here's what the fire people dollars and here's what the fire people you are not thinking about so I'm gonna you are not thinking about so I'm gonna you are not thinking about so I'm gonna give it to you straight here now give it to you straight here now give it to you straight here now artificial intelligence is coming in big artificial intelligence is coming in big artificial intelligence is coming in big time do not be surprised if by the year time do not be surprised if by the year time do not be surprised if by the year there is a % unemployment rate there is a % unemployment rate there is a % unemployment rate and how that affects you is this when and how that affects you is this when and how that affects you is this when people are no longer working because people are no longer working because people are no longer working because machines have replaced all of us machines have replaced all of us machines have replaced all of us there is nobody paying into the tax there is nobody paying into the tax there is nobody paying into the tax structure when nobody is paying into structure when nobody is paying into structure when nobody is paying into taxes tax brackets will have no choice taxes tax brackets will have no choice taxes tax brackets will have no choice but to go up there will not be the money but to go up there will not be the money but to go up there will not be the money there for Social Security because now there for Social Security because now there for Social Security because now who's gonna be paying into the Social who's gonna be paying into the Social who's gonna be paying into the Social Security system to take care of all the Security system to take care of all the Security system to take care of all the million baby boomers that are all million baby boomers that are all million baby boomers that are all retiring and into Medicare and to all retiring and into Medicare and to all retiring and into Medicare and to all these things all these programs will these things all these programs will these things all these programs will collapse we already have trillion collapse we already have trillion collapse we already have trillion dollars of debt we have all of this dollars of debt we have all of this dollars of debt we have all of this stuff going on so now you're making the stuff going on so now you're making the stuff going on so now you're making the same amount of money maybe you're making same amount of money maybe you're making same amount of money maybe you're making now but you're only keeping a little bit now but you're only keeping a little bit now but you're only keeping a little bit of it because of what because of tax of it because of what because of tax of it because of what because of tax brackets and the interest may to go down brackets and the interest may to go down brackets and the interest may to go down at the same time who knows what can at the same time who knows what can at the same time who knows what can happen are you kidding me listen I am happen are you kidding me listen I am happen are you kidding me listen I am years of age and I've said it before I'm years of age and I've said it before I'm years of age and I've said it before I'm gonna say it again I fly on a private gonna say it again I fly on a private gonna say it again I fly on a private plane I live on a private island I'd go plane I live on a private island I'd go plane I live on a private island I'd go anywhere and do anything in at I anywhere and do anything in at I anywhere and do anything in at I still feel like I am and I am I still feel like I am and I am I still feel like I am and I am I travel the world I have a good time I travel the world I have a good time I travel the world I have a good time I work when I want to when I don't want to work when I want to when I don't want to work when I want to when I don't want to work I don't work but I get to live work I don't work but I get to live work I don't work but I get to live forever and I will never live long forever and I will never live long forever and I will never live long enough to out spend my money it is now enough to out spend my money it is now enough to out spend my money it is now almost impossible so if you think you're almost impossible so if you think you're almost impossible so if you think you're having a good time at just wait you having a good time at just wait you having a good time at just wait you better be having a good time all the way better be having a good time all the way better be having a good time all the way when you're and do you know when you're and do you know when you're and do you know most people are living now until most people are living now until most people are living now until five to a hundred are you sure your five to a hundred are you sure your five to a hundred are you sure your money's gonna last you that long when money's gonna last you that long when money's gonna last you that long when you get sick you spend more money big you get sick you spend more money big you get sick you spend more money big time especially when you get older time especially when you get older time especially when you get older really everybody that's what I think really everybody that's what I think really everybody that's what I think about it there are some people whose about it there are some people whose about it there are some people whose response to that might be that fire response to that might be that fire response to that might be that fire gives you the option to stop working if gives you the option to stop working if gives you the option to stop working if you were to choose to do so but not the you were to choose to do so but not the you were to choose to do so but not the obligation to so a person might reach obligation to so a person might reach obligation to so a person might reach fire but then choose to go into lower fire but then choose to go into lower fire but then choose to go into lower paying work like and that's fine I don't paying work like and that's fine I don't paying work like and that's fine I don't have a problem with that but really what have a problem with that but really what have a problem with that but really what is the definition of financial is the definition of financial is the definition of financial independence retire early how do you independence retire early how do you independence retire early how do you define that define that define that you own your home outright maybe you you own your home outright maybe you you own your home outright maybe you live in a little home you're fully live in a little home you're fully live in a little home you're fully funded in your retirement account it funded in your retirement account it funded in your retirement account it will it generate enough income for you will it generate enough income for you will it generate enough income for you when when can even take that income when when can even take that income when when can even take that income because you can't take it till you're because you can't take it till you're because you can't take it till you're older depending on what type of older depending on what type of older depending on what type of retirement account you have so really retirement account you have so really retirement account you have so really how do you do that Paul oh really how how do you do that Paul oh really how how do you do that Paul oh really how you know are we talking about how much you know are we talking about how much you know are we talking about how much money are these people accumulating money are these people accumulating money are these people accumulating because here's the real problem if because here's the real problem if because here's the real problem if you've achieved financial independence you've achieved financial independence you've achieved financial independence and you're no longer now putting money and you're no longer now putting money and you're no longer now putting money into your retirement accounts you are into your retirement accounts you are into your retirement accounts you are losing the compounding years of your losing the compounding years of your losing the compounding years of your life now what do I mean by that when life now what do I mean by that when life now what do I mean by that when you're younger and you lose this as you you're younger and you lose this as you you're younger and you lose this as you get older you put hundred dollars a get older you put hundred dollars a get older you put hundred dollars a month into a Roth IRA and you put it month into a Roth IRA and you put it month into a Roth IRA and you put it into a good Standard & Poor's index into a good Standard & Poor's index into a good Standard & Poor's index fund and you do so every single month fund and you do so every single month fund and you do so every single month until you are for years now you'll until you are for years now you'll until you are for years now you'll have a million dollars with a % annual have a million dollars with a % annual have a million dollars with a % annual average rate of return but you wait till average rate of return but you wait till average rate of return but you wait till you're to start and you'd put in a you're to start and you'd put in a you're to start and you'd put in a hundred dollars every month that's only hundred dollars every month that's only hundred dollars every month that's only a , dollar difference over ten a , dollar difference over ten a , dollar difference over ten years years years at sixty-five you'd have only $, at sixty-five you'd have only $, at sixty-five you'd have only $, those years cost you $, so when those years cost you $, so when those years cost you $, so when you are younger your money that you you are younger your money that you you are younger your money that you invest makes money and that money makes invest makes money and that money makes invest makes money and that money makes money and that money makes money and money and that money makes money and money and that money makes money and your money compounds and you cannot make your money compounds and you cannot make your money compounds and you cannot make up for that with sums of money later on up for that with sums of money later on up for that with sums of money later on in life so when you stop in life so when you stop in life so when you stop working early and you're now not able to working early and you're now not able to working early and you're now not able to continue to contribute because you're continue to contribute because you're continue to contribute because you're not having income coming in now you're not having income coming in now you're not having income coming in now you're you know financially independent you've you know financially independent you've you know financially independent you've retired so now you're living off of the retired so now you're living off of the retired so now you're living off of the money that you have if you want to be money that you have if you want to be money that you have if you want to be how do you take advantage of your how do you take advantage of your how do you take advantage of your compounding years so rather than having compounding years so rather than having compounding years so rather than having millions and millions and millions of millions and millions and millions of millions and millions and millions of dollars when you're older maybe you have dollars when you're older maybe you have dollars when you're older maybe you have a million maybe half a million really a million maybe half a million really a million maybe half a million really I'm telling you you can do it you won't I'm telling you you can do it you won't I'm telling you you can do it you won't you can do it if you want people but you can do it if you want people but you can do it if you want people but I've lived enough listen nobody has I've lived enough listen nobody has I've lived enough listen nobody has talked to more people about money than talked to more people about money than talked to more people about money than me anywhere in this world you know we me anywhere in this world you know we me anywhere in this world you know we would get , emails a week and I would get , emails a week and I would get , emails a week and I have seen it all and when everything was have seen it all and when everything was have seen it all and when everything was going great for somebody and then you going great for somebody and then you going great for somebody and then you know they were not accident they were know they were not accident they were know they were not accident they were riding a horse they got thrown off they riding a horse they got thrown off they riding a horse they got thrown off they were in a car and a pole goes through were in a car and a pole goes through were in a car and a pole goes through the front of the car off of a truck in the front of the car off of a truck in the front of the car off of a truck in front of them and you know totally front of them and you know totally front of them and you know totally paralyzes them they get hit by a bus paralyzes them they get hit by a bus paralyzes them they get hit by a bus walking down the street of New York and walking down the street of New York and walking down the street of New York and on and on and on if you think these on and on and on if you think these on and on and on if you think these things can't happen I have a bridge to things can't happen I have a bridge to things can't happen I have a bridge to sell you sell you sell you so if they happen to happen you better so if they happen to happen you better so if they happen to happen you better have enough money if you never can work have enough money if you never can work have enough money if you never can work again that you can support yourself no again that you can support yourself no again that you can support yourself no matter what happens how much do you matter what happens how much do you matter what happens how much do you think that is what would be a safe think that is what would be a safe think that is what would be a safe amount at which a person can say all amount at which a person can say all amount at which a person can say all right at this point given my the size of right at this point given my the size of right at this point given my the size of my portfolio I'm comfortable enough that my portfolio I'm comfortable enough that my portfolio I'm comfortable enough that if I did get hit by a bus I would be if I did get hit by a bus I would be if I did get hit by a bus I would be fine it would have to be in the millions fine it would have to be in the millions fine it would have to be in the millions how many million it depends where you how many million it depends where you how many million it depends where you live you know what your other expenses live you know what your other expenses live you know what your other expenses are do you own a home outright so what are do you own a home outright so what are do you own a home outright so what are your expenses but just think about are your expenses but just think about are your expenses but just think about it logically let's say you need help and it logically let's say you need help and it logically let's say you need help and everything remember I took care of my everything remember I took care of my everything remember I took care of my mother and it cost me like I said it was mother and it cost me like I said it was mother and it cost me like I said it was $, a month thirty thousand a month $, a month thirty thousand a month $, a month thirty thousand a month so you're talking about very possibly so you're talking about very possibly so you're talking about very possibly for full-time help and everything for full-time help and everything for full-time help and everything because good luck getting insurance and because good luck getting insurance and because good luck getting insurance and things to pay for it now but it's you things to pay for it now but it's you things to pay for it now but it's you know so you're talking about maybe know so you're talking about maybe know so you're talking about maybe thousand a year all right so I'm thousand a year all right so I'm thousand a year all right so I'm wrong you're talking about a quarter wrong you're talking about a quarter wrong you're talking about a quarter million dollars a year there now you million dollars a year there now you million dollars a year there now you have other expenses and food and have other expenses and food and have other expenses and food and everything and let's just say you need everything and let's just say you need everything and let's just say you need another hundred thousand a year to live another hundred thousand a year to live another hundred thousand a year to live because of other things that you need so because of other things that you need so because of other things that you need so now you need three hundred fifty now you need three hundred fifty now you need three hundred fifty thousand dollars a year after taxes if thousand dollars a year after taxes if thousand dollars a year after taxes if you have money even if you have a you have money even if you have a you have money even if you have a million dollars right now and and you're million dollars right now and and you're million dollars right now and and you're getting a four percent yield that's getting a four percent yield that's getting a four percent yield that's thousand dollars right yeah a forty thousand dollars right yeah a forty thousand dollars right yeah a forty thousand a year so you need at least thousand a year so you need at least thousand a year so you need at least five million dollars six million dollars five million dollars six million dollars five million dollars six million dollars so that five percent and that's before so that five percent and that's before so that five percent and that's before tax mm-hmm so you need a % after yale tax mm-hmm so you need a % after yale tax mm-hmm so you need a % after yale tax the municipal bonds to yield you tax the municipal bonds to yield you tax the municipal bonds to yield you $, so really you might need ten $, so really you might need ten $, so really you might need ten million dollars just so you if you're million dollars just so you if you're million dollars just so you if you're making you know five percent on that making you know five percent on that making you know five percent on that money and after tax you'll be fine money and after tax you'll be fine money and after tax you'll be fine without touching your principal because without touching your principal because without touching your principal because you don't know how long you're gonna you don't know how long you're gonna you don't know how long you're gonna live and because you've done it when live and because you've done it when live and because you've done it when you're so young now you have all this you're so young now you have all this you're so young now you have all this money and if you start spending three money and if you start spending three money and if you start spending three hundred fifty thousand a million dollars hundred fifty thousand a million dollars hundred fifty thousand a million dollars a year in not that many years all your a year in not that many years all your a year in not that many years all your money's gone hmm money's gone hmm money's gone hmm but do you understand why it doesn't but do you understand why it doesn't but do you understand why it doesn't really make sense there are people who really make sense there are people who really make sense there are people who would state that assuming that you can would state that assuming that you can would state that assuming that you can work certainly if you're in an accident work certainly if you're in an accident work certainly if you're in an accident that's so bad that you lose the ability that's so bad that you lose the ability that's so bad that you lose the ability to work that's a different can of where to work that's a different can of where to work that's a different can of where it happens all the time all the time it happens all the time all the time it happens all the time all the time there are people who would state that there are people who would state that there are people who would state that achieving fire let's say you build a achieving fire let's say you build a achieving fire let's say you build a portfolio of million at the % portfolio of million at the % portfolio of million at the % withdrawal rate it's $, that , withdrawal rate it's $, that , withdrawal rate it's $, that , annually plus an attitude that is frugal annually plus an attitude that is frugal annually plus an attitude that is frugal and flexible and willing to do some and flexible and willing to do some and flexible and willing to do some part-time work some gig economy work how part-time work some gig economy work how part-time work some gig economy work how would you feel about a person who who would you feel about a person who who would you feel about a person who who had that as their life plan I think that had that as their life plan I think that had that as their life plan I think that in the long run $, especially after in the long run $, especially after in the long run $, especially after taxes and as you get older is not going taxes and as you get older is not going taxes and as you get older is not going to be enough you may think it's gonna be to be enough you may think it's gonna be to be enough you may think it's gonna be enough but it's just not enough but it's just not enough but it's just not I'm telling you especially if income tax I'm telling you especially if income tax I'm telling you especially if income tax brackets go up if inflation comes back brackets go up if inflation comes back brackets go up if inflation comes back if all these other things happen you can if all these other things happen you can if all these other things happen you can do it if you want to I personally think do it if you want to I personally think do it if you want to I personally think it is the biggest mistake financially it is the biggest mistake financially it is the biggest mistake financially you will ever ever make in your lifetime you will ever ever make in your lifetime you will ever ever make in your lifetime Wow mm-hmm I think it's just ridiculous Wow mm-hmm I think it's just ridiculous Wow mm-hmm I think it's just ridiculous because I have seen people retire at because I have seen people retire at because I have seen people retire at at and then they call me back at at and then they call me back at at and then they call me back at and they go why did you let me do that I and they go why did you let me do that I and they go why did you let me do that I said I tried to talk you out of it don't said I tried to talk you out of it don't said I tried to talk you out of it don't you remember I denied you on my show you remember I denied you on my show you remember I denied you on my show because as you get older I am Telling because as you get older I am Telling because as you get older I am Telling You when you're if you need to You when you're if you need to You when you're if you need to go into a nursing home Oh it'll be go into a nursing home Oh it'll be go into a nursing home Oh it'll be , a month if you need help as you , a month if you need help as you , a month if you need help as you get older you know it's great when get older you know it's great when get older you know it's great when you're young and you think I was young you're young and you think I was young you're young and you think I was young I'm not young anymore everybody but I am I'm not young anymore everybody but I am I'm not young anymore everybody but I am sure smart and I am seriously rich sure smart and I am seriously rich sure smart and I am seriously rich because I compounded my money I lived in because I compounded my money I lived in because I compounded my money I lived in small houses I didn't spend money that I small houses I didn't spend money that I small houses I didn't spend money that I shouldn't I lived below my means but shouldn't I lived below my means but shouldn't I lived below my means but within my needs you know I made the most within my needs you know I made the most within my needs you know I made the most out of every single penny and I watched out of every single penny and I watched out of every single penny and I watched those pennies turn into dollars and turn those pennies turn into dollars and turn those pennies turn into dollars and turn into million million million into million million million into million million million million million million and on I million million million and on I million million million and on I saw it I created it and you know here saw it I created it and you know here saw it I created it and you know here I'm somebody who was a waitress till I I'm somebody who was a waitress till I I'm somebody who was a waitress till I was years of age for seven years was years of age for seven years was years of age for seven years making $ a month so I didn't come making $ a month so I didn't come making $ a month so I didn't come from money and look at me today when from money and look at me today when from money and look at me today when you're older is when you want a you're older is when you want a you're older is when you want a hundred million dollars two million hundred million dollars two million hundred million dollars two million dollars when you're in your s you may dollars when you're in your s you may dollars when you're in your s you may think that is a lot and you can live on think that is a lot and you can live on think that is a lot and you can live on thousand and you can have a good time thousand and you can have a good time thousand and you can have a good time for two years three years four years for two years three years four years for two years three years four years five years and hopefully nothing will go five years and hopefully nothing will go five years and hopefully nothing will go wrong but I promise you as things get wrong but I promise you as things get wrong but I promise you as things get older in your life as hopefully you will older in your life as hopefully you will older in your life as hopefully you will if you think thousand dollars a year if you think thousand dollars a year if you think thousand dollars a year as you get older is going to make it for as you get older is going to make it for as you get older is going to make it for you before taxes I have a bridge to sell you before taxes I have a bridge to sell you before taxes I have a bridge to sell you you you other than medical expenses what other other than medical expenses what other other than medical expenses what other expenses have you seen that come up in expenses have you seen that come up in expenses have you seen that come up in what we'll say at the age of plus what we'll say at the age of plus what we'll say at the age of plus plus sometimes believe it or not as you plus sometimes believe it or not as you plus sometimes believe it or not as you get older get older get older and you're no longer having any income and you're no longer having any income and you're no longer having any income and all you have is the , a year and all you have is the , a year and all you have is the , a year coming in and I'm assuming that $, coming in and I'm assuming that $, coming in and I'm assuming that $, is before tax so or if you're just is before tax so or if you're just is before tax so or if you're just taking two million at a time you know taking two million at a time you know taking two million at a time you know you have to be careful because the you have to be careful because the you have to be careful because the markets can go down what is your money markets can go down what is your money markets can go down what is your money invested in is it just invested in invested in is it just invested in invested in is it just invested in dividend yielding stocks that pay a cash dividend yielding stocks that pay a cash dividend yielding stocks that pay a cash dividend there are a lot of people that dividend there are a lot of people that dividend there are a lot of people that had a % % dividend yield on their had a % % dividend yield on their had a % % dividend yield on their IBM's in those stocks and when the IBM's in those stocks and when the IBM's in those stocks and when the market crashed guess what they did they market crashed guess what they did they market crashed guess what they did they took away the dividends they come the took away the dividends they come the took away the dividends they come the dividends in half some of them took away dividends in half some of them took away dividends in half some of them took away all of the dividend so if you're using all of the dividend so if you're using all of the dividend so if you're using up % of your money and it's not up % of your money and it's not up % of your money and it's not yielding you that anymore or if all of a yielding you that anymore or if all of a yielding you that anymore or if all of a sudden your portfolio has gone down and sudden your portfolio has gone down and sudden your portfolio has gone down and now you own a home and now you not just now you own a home and now you not just now you own a home and now you not just need , to live on now you're in need , to live on now you're in need , to live on now you're in your s you've owned your house forever your s you've owned your house forever your s you've owned your house forever now you need a new roof $, that now you need a new roof $, that now you need a new roof $, that wasn't part of the equation oh you need wasn't part of the equation oh you need wasn't part of the equation oh you need a new car you need whatever it may be oh a new car you need whatever it may be oh a new car you need whatever it may be oh now you have kids and now the kids get now you have kids and now the kids get now you have kids and now the kids get in trouble or the kids need to live with in trouble or the kids need to live with in trouble or the kids need to live with you and now your expenses increase or you and now your expenses increase or you and now your expenses increase or you want to send your kids to school or you want to send your kids to school or you want to send your kids to school or you've signed for your kids college you've signed for your kids college you've signed for your kids college education or whatever it may be or your education or whatever it may be or your education or whatever it may be or your mother no longer can work and now a lot mother no longer can work and now a lot mother no longer can work and now a lot of year olds are saying mommy didn't of year olds are saying mommy didn't of year olds are saying mommy didn't save enough money and so now I have to save enough money and so now I have to save enough money and so now I have to support my mother and that happens and support my mother and that happens and support my mother and that happens and when mommy comes a-calling you're gonna when mommy comes a-calling you're gonna when mommy comes a-calling you're gonna have to be there for her those are all have to be there for her those are all have to be there for her those are all the things none of you are thinking the things none of you are thinking the things none of you are thinking about your spouse gets ill your kid gets about your spouse gets ill your kid gets about your spouse gets ill your kid gets ill you know mommy whatever it may be ill you know mommy whatever it may be ill you know mommy whatever it may be things have been you know even in the things have been you know even in the things have been you know even in the stock market how many crashes have I stock market how many crashes have I stock market how many crashes have I seen from the s all the way till now seen from the s all the way till now seen from the s all the way till now well you think you have it all together well you think you have it all together well you think you have it all together and a company totally goes belly-up and and a company totally goes belly-up and and a company totally goes belly-up and that money's gone you know there are that money's gone you know there are that money's gone you know there are people who invested in really great people who invested in really great people who invested in really great companies and those companies just companies and those companies just companies and those companies just disappeared just disappeared gone disappeared just disappeared gone disappeared just disappeared gone totally bankrupt so you better know how totally bankrupt so you better know how totally bankrupt so you better know how to invest to invest to invest you better know how to watch it you you better know how to watch it you you better know how to watch it you better know what to do if they cut their better know what to do if they cut their better know what to do if they cut their dividends you better know what to do if dividends you better know what to do if dividends you better know what to do if they stop paying the interest on they stop paying the interest on they stop paying the interest on municipal bonds look what happened to municipal bonds look what happened to municipal bonds look what happened to Puerto Rico bonds they stopped paying Puerto Rico bonds they stopped paying Puerto Rico bonds they stopped paying the interest that were % then millions the interest that were % then millions the interest that were % then millions of people purchased thinking it was a of people purchased thinking it was a of people purchased thinking it was a guaranteed % yield and all of a sudden guaranteed % yield and all of a sudden guaranteed % yield and all of a sudden it stopped alright just telling you you it stopped alright just telling you you it stopped alright just telling you you will get burned if you play with fire will get burned if you play with fire will get burned if you play with fire strong words and you know you can go strong words and you know you can go strong words and you know you can go ahead and you can think I'm crazy and ahead and you can think I'm crazy and ahead and you can think I'm crazy and you can just go ahead and do it but when you can just go ahead and do it but when you can just go ahead and do it but when you get older one day you remember you get older one day you remember you get older one day you remember hearing me on this show listen everybody hearing me on this show listen everybody hearing me on this show listen everybody I have a new book out called women and I have a new book out called women and I have a new book out called women and money and the whole goal of this book money and the whole goal of this book money and the whole goal of this book especially for women is to make you especially for women is to make you especially for women is to make you strong smart and secure to give you a strong smart and secure to give you a strong smart and secure to give you a financial empowerment plan for you to financial empowerment plan for you to financial empowerment plan for you to follow so that later on in life whatever follow so that later on in life whatever follow so that later on in life whatever it may be you can live the life that you it may be you can live the life that you it may be you can live the life that you want to live you know this retiring at want to live you know this retiring at want to live you know this retiring at what are you gonna do with your life what are you gonna do with your life what are you gonna do with your life in ten years you think you're not gonna in ten years you think you're not gonna in ten years you think you're not gonna get bored you think you're just gonna get bored you think you're just gonna get bored you think you're just gonna travel around and everything will be travel around and everything will be travel around and everything will be fine forever alright and you can work if fine forever alright and you can work if fine forever alright and you can work if you want to but if you don't want to you you want to but if you don't want to you you want to but if you don't want to you don't have to but again the biggest don't have to but again the biggest don't have to but again the biggest mistake you're making is time these are mistake you're making is time these are mistake you're making is time these are your compounding years and you should be your compounding years and you should be your compounding years and you should be putting every penny you have into putting every penny you have into putting every penny you have into investments so they can compound I gave investments so they can compound I gave investments so they can compound I gave you an example have just a hundred you an example have just a hundred you an example have just a hundred dollars a month will cost you seven dollars a month will cost you seven dollars a month will cost you seven hundred thousand dollars five hundred hundred thousand dollars five hundred hundred thousand dollars five hundred dollars a month would cost you three and dollars a month would cost you three and dollars a month would cost you three and a half million dollars if you waited ten a half million dollars if you waited ten a half million dollars if you waited ten years you want to be a multi-millionaire years you want to be a multi-millionaire years you want to be a multi-millionaire do not do not insult the beauty of do not do not insult the beauty of do not do not insult the beauty of compound interest what if a person were compound interest what if a person were compound interest what if a person were to have a strategy let's say they have a to have a strategy let's say they have a to have a strategy let's say they have a two million dollar portfolio invested two million dollar portfolio invested two million dollar portfolio invested / in equities and bonds and they tap / in equities and bonds and they tap / in equities and bonds and they tap it at a more conservative three percent it at a more conservative three percent it at a more conservative three percent but will action so we'll make it a three but will action so we'll make it a three but will action so we'll make it a three million dollar portfolio they tap it at million dollar portfolio they tap it at million dollar portfolio they tap it at a more conservative three percent a more conservative three percent a more conservative three percent withdrawal rate wouldn't that still withdrawal rate wouldn't that still withdrawal rate wouldn't that still allow the bulk of their portfolio to allow the bulk of their portfolio to allow the bulk of their portfolio to continue compounding continue compounding continue compounding as long as nothing goes wrong Paula I as long as nothing goes wrong Paula I as long as nothing goes wrong Paula I have to tell you I have thousands of have to tell you I have thousands of have to tell you I have thousands of letters as I told you before of things letters as I told you before of things letters as I told you before of things that went wrong with people who are that went wrong with people who are that went wrong with people who are healthy young vital that never expected healthy young vital that never expected healthy young vital that never expected something to go wrong something to go wrong something to go wrong and if you're you're gonna do that then and if you're you're gonna do that then and if you're you're gonna do that then besides your investment portfolios you besides your investment portfolios you besides your investment portfolios you better have disability insurance but better have disability insurance but better have disability insurance but you're not gonna be able to get you're not gonna be able to get you're not gonna be able to get disability insurance because you're not disability insurance because you're not disability insurance because you're not even working so there's nothing for them even working so there's nothing for them even working so there's nothing for them to be able to insure so there's no way to be able to insure so there's no way to be able to insure so there's no way to ensure the income from your portfolio to ensure the income from your portfolio to ensure the income from your portfolio that you know nothing goes wrong at this that you know nothing goes wrong at this that you know nothing goes wrong at this point in time if you withdrawing point in time if you withdrawing point in time if you withdrawing principal and everything like that principal and everything like that principal and everything like that you know maybe eventually there'll be you know maybe eventually there'll be you know maybe eventually there'll be investments out there that will investments out there that will investments out there that will guarantee you an income but whether you guarantee you an income but whether you guarantee you an income but whether you do that or not you have no way of do that or not you have no way of do that or not you have no way of knowing that the income that you are knowing that the income that you are knowing that the income that you are getting now and a plan to get forever getting now and a plan to get forever getting now and a plan to get forever will be able to meet your needs will be able to meet your needs will be able to meet your needs I've seen it with happen with friends I've seen it with happen with friends I've seen it with happen with friends and I see what happens when they don't and I see what happens when they don't and I see what happens when they don't have the money to pay their bills I've have the money to pay their bills I've have the money to pay their bills I've seen them take guns and put it to their seen them take guns and put it to their seen them take guns and put it to their head not seeing it but you know head not seeing it but you know head not seeing it but you know obviously experienced it because I got obviously experienced it because I got obviously experienced it because I got news that they're dead because they ran news that they're dead because they ran news that they're dead because they ran out of money they thought they would be out of money they thought they would be out of money they thought they would be ok ok ok they were living their dream one of them they were living their dream one of them they were living their dream one of them is my cousin who did it a month ago and is my cousin who did it a month ago and is my cousin who did it a month ago and so I have seen it now I pray that all of so I have seen it now I pray that all of so I have seen it now I pray that all of you that do this that nothing ever goes you that do this that nothing ever goes you that do this that nothing ever goes wrong in your life that you're always wrong in your life that you're always wrong in your life that you're always okay no matter what happens but I'm sure okay no matter what happens but I'm sure okay no matter what happens but I'm sure all the people that were on that duck all the people that were on that duck all the people that were on that duck boat in somewhere where they all went boat in somewhere where they all went boat in somewhere where they all went down and they drown I'm sure nothing and down and they drown I'm sure nothing and down and they drown I'm sure nothing and the only one that lived was one one the only one that lived was one one the only one that lived was one one person and they lost what nine family person and they lost what nine family person and they lost what nine family members oh I'm sure she never thought members oh I'm sure she never thought members oh I'm sure she never thought any of that was gonna happen I am any of that was gonna happen I am any of that was gonna happen I am Telling You don't be naive don't test Telling You don't be naive don't test Telling You don't be naive don't test faith faith faith you should work as long as you possibly you should work as long as you possibly you should work as long as you possibly can in an area that you love so you can in an area that you love so you can in an area that you love so you don't feel that it's work love your don't feel that it's work love your don't feel that it's work love your professional life love your personal professional life love your personal professional life love your personal life but the answer is not just life but the answer is not just life but the answer is not just accumulating two million dollars two accumulating two million dollars two accumulating two million dollars two million dollars is nothing it's nothing million dollars is nothing it's nothing million dollars is nothing it's nothing it's pennies in today's world to tell it's pennies in today's world to tell it's pennies in today's world to tell you the truth so the next question is you the truth so the next question is you the truth so the next question is I'm sure there are some people who are I'm sure there are some people who are I'm sure there are some people who are listening to this who do not have fire listening to this who do not have fire listening to this who do not have fire as an ambition but in their full time as an ambition but in their full time as an ambition but in their full time line of work they earn , or , line of work they earn , or , line of work they earn , or , dollars and they are let's say in their dollars and they are let's say in their dollars and they are let's say in their s or s and in an industry that's s or s and in an industry that's s or s and in an industry that's contracting what would you say then contracting what would you say then contracting what would you say then because one of the themes that has kept because one of the themes that has kept because one of the themes that has kept coming up during this interview is how coming up during this interview is how coming up during this interview is how you'll you'll need more than that you'll you'll need more than that you'll you'll need more than that particularly as you age what would you particularly as you age what would you particularly as you age what would you say to all of the households that have a say to all of the households that have a say to all of the households that have a household income of , a year you household income of , a year you household income of , a year you want to know what I learned years ago I want to know what I learned years ago I want to know what I learned years ago I did all the retirement planning for did all the retirement planning for did all the retirement planning for Pacific Gas & Electric which is the Pacific Gas & Electric which is the Pacific Gas & Electric which is the utility company for Northern California utility company for Northern California utility company for Northern California and , people would retire and they'd and , people would retire and they'd and , people would retire and they'd all see me right I would I did all the all see me right I would I did all the all see me right I would I did all the retirement planning most of those years retirement planning most of those years retirement planning most of those years for them and what was fascinating is for them and what was fascinating is for them and what was fascinating is that people who made or thousand a that people who made or thousand a that people who made or thousand a year who were the line workers the gas year who were the line workers the gas year who were the line workers the gas meter readers - all of that they had meter readers - all of that they had meter readers - all of that they had more than enough money to retire versus more than enough money to retire versus more than enough money to retire versus the executives that had millions in the executives that had millions in the executives that had millions in their k was gonna get a pension of their k was gonna get a pension of their k was gonna get a pension of $, a month and blah blah blah blah $, a month and blah blah blah blah $, a month and blah blah blah blah and what I learned from all that is that and what I learned from all that is that and what I learned from all that is that when you make a lot of money the more when you make a lot of money the more when you make a lot of money the more money usually you make the more money money usually you make the more money money usually you make the more money you spend you don't save it you don't you spend you don't save it you don't you spend you don't save it you don't invest it you're not wise with it invest it you're not wise with it invest it you're not wise with it and when you don't make a lot of money and when you don't make a lot of money and when you don't make a lot of money normally you don't spend like you have a normally you don't spend like you have a normally you don't spend like you have a lot of money because you don't so you lot of money because you don't so you lot of money because you don't so you tend to stay out of credit card debt tend to stay out of credit card debt tend to stay out of credit card debt you'll have a house that you can afford you'll have a house that you can afford you'll have a house that you can afford all of those things so if you can set all of those things so if you can set all of those things so if you can set yourself up in a yourself up in a yourself up in a situation where if you own a home that situation where if you own a home that situation where if you own a home that you have hopefully you haven't spent a you have hopefully you haven't spent a you have hopefully you haven't spent a fortune on it that you follow my rules fortune on it that you follow my rules fortune on it that you follow my rules which is live below your means but which is live below your means but which is live below your means but within your needs and that house is paid within your needs and that house is paid within your needs and that house is paid for it you make it your number one for it you make it your number one for it you make it your number one priority that after you fund your k priority that after you fund your k priority that after you fund your k or your B or your TSP you know if or your B or your TSP you know if or your B or your TSP you know if they match you you fund it up to the they match you you fund it up to the they match you you fund it up to the point of the match you make sure that point of the match you make sure that point of the match you make sure that you have a Roth k or b or TSP or a you have a Roth k or b or TSP or a you have a Roth k or b or TSP or a Roth IRA if they don't match or all of Roth IRA if they don't match or all of Roth IRA if they don't match or all of those the Roth k and a Roth IRA and those the Roth k and a Roth IRA and those the Roth k and a Roth IRA and you make sure that your home is then you make sure that your home is then you make sure that your home is then paid for all extra money goes assuming paid for all extra money goes assuming paid for all extra money goes assuming your auto credit card debt you have your your auto credit card debt you have your your auto credit card debt you have your car paid off you keep your car for car paid off you keep your car for car paid off you keep your car for years you take good care of it but years you take good care of it but years you take good care of it but your extra money then goes to paying your extra money then goes to paying your extra money then goes to paying down the mortgage on your home so that down the mortgage on your home so that down the mortgage on your home so that when you do retire you don't have a when you do retire you don't have a when you do retire you don't have a mortgage anymore you and now that your mortgage anymore you and now that your mortgage anymore you and now that your money's in the Roth retirement accounts money's in the Roth retirement accounts money's in the Roth retirement accounts now when you go to take them out you now when you go to take them out you now when you go to take them out you don't pay taxes on that money so that don't pay taxes on that money so that don't pay taxes on that money so that you don't have to worry if the you don't have to worry if the you don't have to worry if the government raises taxes on everybody to government raises taxes on everybody to government raises taxes on everybody to fund the future of the government fund the future of the government fund the future of the government because nobody's working anymore and you because nobody's working anymore and you because nobody's working anymore and you set yourself up in a situation where you set yourself up in a situation where you set yourself up in a situation where you only buy needs versus once ask yourself only buy needs versus once ask yourself only buy needs versus once ask yourself the question before you spend a penny is the question before you spend a penny is the question before you spend a penny is this a want or is this a need and if you this a want or is this a need and if you this a want or is this a need and if you only buy needs from this point on and only buy needs from this point on and only buy needs from this point on and once in a while let yourself have some once in a while let yourself have some once in a while let yourself have some once and you'd like I said live below once and you'd like I said live below once and you'd like I said live below your means but within your needs and you your means but within your needs and you your means but within your needs and you do that by only buying needs versus once do that by only buying needs versus once do that by only buying needs versus once and you get as much pleasure out of and you get as much pleasure out of and you get as much pleasure out of saving as you do spending I think you're saving as you do spending I think you're saving as you do spending I think you're gonna be just fine gonna be just fine gonna be just fine you don't need millions of dollars at you don't need millions of dollars at you don't need millions of dollars at that point then if you have everything that point then if you have everything that point then if you have everything taken care of and then as you're getting taken care of and then as you're getting taken care of and then as you're getting older you've built up money and you're older you've built up money and you're older you've built up money and you're doing okay and you have hopefully Social doing okay and you have hopefully Social doing okay and you have hopefully Social Security it whenever they let you have Security it whenever they let you have Security it whenever they let you have it it may be Medicare or if that's still it it may be Medicare or if that's still it it may be Medicare or if that's still around and hopefully the government will around and hopefully the government will around and hopefully the government will figure that out figure that out figure that out okay you gave it your best and you wait okay you gave it your best and you wait okay you gave it your best and you wait till you're to take Social Security till you're to take Social Security till you're to take Social Security if there is any and those things and you if there is any and those things and you if there is any and those things and you just keep doing the best you possibly just keep doing the best you possibly just keep doing the best you possibly can but the key is putting money away so can but the key is putting money away so can but the key is putting money away so help me understand this because I I'm a help me understand this because I I'm a help me understand this because I I'm a little confused about something yeah I little confused about something yeah I little confused about something yeah I mean both of those cases you've got mean both of those cases you've got mean both of those cases you've got person a and person B know where you're person a and person B know where you're person a and person B know where you're going yeah Bob yeah they both have fully going yeah Bob yeah they both have fully going yeah Bob yeah they both have fully paid off houses they both live below paid off houses they both live below paid off houses they both live below their means they both have accumulate their means they both have accumulate their means they both have accumulate one is a line worker a meter reader who one is a line worker a meter reader who one is a line worker a meter reader who makes k a year and the other is a makes k a year and the other is a makes k a year and the other is a software developer who makes k a year software developer who makes k a year software developer who makes k a year at but with a huge savings rate and they at but with a huge savings rate and they at but with a huge savings rate and they both have overtime but different both have overtime but different both have overtime but different increments of time accumulated three increments of time accumulated three increments of time accumulated three million dollar portfolios plus a fully million dollar portfolios plus a fully million dollar portfolios plus a fully paid off home what's the difference paid off home what's the difference paid off home what's the difference frankly what is it different I'll tell frankly what is it different I'll tell frankly what is it different I'll tell you the one that has continued to work you the one that has continued to work you the one that has continued to work most likely will not retire until most likely will not retire until most likely will not retire until they're at least seventy years of age they're at least seventy years of age they're at least seventy years of age and therefore they will not be drawing and therefore they will not be drawing and therefore they will not be drawing down on any of their portfolios during down on any of their portfolios during down on any of their portfolios during the years that they are working and the years that they are working and the years that they are working and possibly and probably they're covered by possibly and probably they're covered by possibly and probably they're covered by disability insurance if they're working disability insurance if they're working disability insurance if they're working for a corporation maybe they're covered for a corporation maybe they're covered for a corporation maybe they're covered by a health insurance plan from their by a health insurance plan from their by a health insurance plan from their corporation maybe all of those things corporation maybe all of those things corporation maybe all of those things and they're offered a health savings and they're offered a health savings and they're offered a health savings account from their corporation which account from their corporation which account from their corporation which also they can save tax-free for their also they can save tax-free for their also they can save tax-free for their future and everything like that the future and everything like that the future and everything like that the worker that retires at the age of if worker that retires at the age of if worker that retires at the age of if something goes wrong from to now something goes wrong from to now something goes wrong from to now they're in trouble the other worker is they're in trouble the other worker is they're in trouble the other worker is probably covered by the things of probably covered by the things of probably covered by the things of whereby the policies and everything that whereby the policies and everything that whereby the policies and everything that is at work once they retire and they're is at work once they retire and they're is at work once they retire and they're at now all right if something goes at now all right if something goes at now all right if something goes wrong they still have all of their wrong they still have all of their wrong they still have all of their portfolios they haven't drawn them down portfolios they haven't drawn them down portfolios they haven't drawn them down all of the money they possibly could all of the money they possibly could all of the money they possibly could accumulate is there and if something accumulate is there and if something accumulate is there and if something goes wrong between now and they'll be goes wrong between now and they'll be goes wrong between now and they'll be covered by something at work covered by something at work covered by something at work it's when you're not covered then you it's when you're not covered then you it's when you're not covered then you don't have a choice to continue working don't have a choice to continue working don't have a choice to continue working or maybe you do think you have a choice or maybe you do think you have a choice or maybe you do think you have a choice but you stopped working and now it's but you stopped working and now it's but you stopped working and now it's hard because now everybody wants to know hard because now everybody wants to know hard because now everybody wants to know well what did you do when is there a job well what did you do when is there a job well what did you do when is there a job for you and whatever it may be it's just for you and whatever it may be it's just for you and whatever it may be it's just you're taking it more of a risk if you you're taking it more of a risk if you you're taking it more of a risk if you stop earlier you have more years that stop earlier you have more years that stop earlier you have more years that something can go wrong with no way for something can go wrong with no way for something can go wrong with no way for you to correct it mmm okay Paula are you you to correct it mmm okay Paula are you you to correct it mmm okay Paula are you one of these people that want to stop one of these people that want to stop one of these people that want to stop working at at or whatever age you working at at or whatever age you working at at or whatever age you are oh I have zero ambition to ever stop are oh I have zero ambition to ever stop are oh I have zero ambition to ever stop working even when I'm years old working even when I'm years old working even when I'm years old right but I like the idea of having right but I like the idea of having right but I like the idea of having enough money that I could if I wanted to enough money that I could if I wanted to enough money that I could if I wanted to yeah yeah yeah but you want to know it's also funny but you want to know it's also funny but you want to know it's also funny mm-hmm you know people always think that mm-hmm you know people always think that mm-hmm you know people always think that when you have as much money as some of when you have as much money as some of when you have as much money as some of these people your Bill Gates's your these people your Bill Gates's your these people your Bill Gates's your Warren Buffett's even your Suze Orman's Warren Buffett's even your Suze Orman's Warren Buffett's even your Suze Orman's why do we continue to work when we don't why do we continue to work when we don't why do we continue to work when we don't have to because we work because we love have to because we work because we love have to because we work because we love what we do we don't work for money what we do we don't work for money what we do we don't work for money anymore it's fun to make the money but anymore it's fun to make the money but anymore it's fun to make the money but who cares about it really I don't care who cares about it really I don't care who cares about it really I don't care if I never make another penny in my life if I never make another penny in my life if I never make another penny in my life but I love doing what I do and it's that but I love doing what I do and it's that but I love doing what I do and it's that passion that keeps me going so hopefully passion that keeps me going so hopefully passion that keeps me going so hopefully if you do retire early you have a if you do retire early you have a if you do retire early you have a passion that keeps you going you have a passion that keeps you going you have a passion that keeps you going you have a love of something that you wake up for love of something that you wake up for love of something that you wake up for every morning the friends that I have every morning the friends that I have every morning the friends that I have that are that make me look poor to tell that are that make me look poor to tell that are that make me look poor to tell you the truth they're all Multi multi you the truth they're all Multi multi you the truth they're all Multi multi billionaires they work harder than I billionaires they work harder than I billionaires they work harder than I ever were because they love what they do ever were because they love what they do ever were because they love what they do and they would laugh they would look at and they would laugh they would look at and they would laugh they would look at this movement and they would go whatever this movement and they would go whatever this movement and they would go whatever and they would feel sorry for the people and they would feel sorry for the people and they would feel sorry for the people that want to retire early because they that want to retire early because they that want to retire early because they don't have a passion they just want to don't have a passion they just want to don't have a passion they just want to retire so maybe you have a passion maybe retire so maybe you have a passion maybe retire so maybe you have a passion maybe you want to be an artist maybe you want you want to be an artist maybe you want you want to be an artist maybe you want to be this maybe you want to be that but to be this maybe you want to be that but to be this maybe you want to be that but just sitting and doing nothing will get just sitting and doing nothing will get just sitting and doing nothing will get to you after a while it will I'm telling to you after a while it will I'm telling to you after a while it will I'm telling you I just did it for three years on my you I just did it for three years on my you I just did it for three years on my private island I retired at I shut private island I retired at I shut private island I retired at I shut down the Suze Orman show I sold five down the Suze Orman show I sold five down the Suze Orman show I sold five homes homes homes I got rid of five cars I stopped going I got rid of five cars I stopped going I got rid of five cars I stopped going on QVC I stopped writing for Oprah's on QVC I stopped writing for Oprah's on QVC I stopped writing for Oprah's magazine I stopped giving talks I magazine I stopped giving talks I magazine I stopped giving talks I stopped doing everything and I had a stopped doing everything and I had a stopped doing everything and I had a great time for three years I learned how great time for three years I learned how great time for three years I learned how to fish I've learned how to win to fish I've learned how to win to fish I've learned how to win tournaments I learned how to be the tournaments I learned how to be the tournaments I learned how to be the captain and on my bone and office and it captain and on my bone and office and it captain and on my bone and office and it was like oh there's still stuff for me was like oh there's still stuff for me was like oh there's still stuff for me to do now I was in a field that to do now I was in a field that to do now I was in a field that everybody welcomed me back when I came everybody welcomed me back when I came everybody welcomed me back when I came back hmm they were excited to see me in back hmm they were excited to see me in back hmm they were excited to see me in the halls of NBC and MSNBC and the halls of NBC and MSNBC and the halls of NBC and MSNBC and everywhere that I went this past week everywhere that I went this past week everywhere that I went this past week and on the stage of the Apollo we sold and on the stage of the Apollo we sold and on the stage of the Apollo we sold out seats in a short period of time out seats in a short period of time out seats in a short period of time without any paid advertising at all by without any paid advertising at all by without any paid advertising at all by the way that show has been taped and the way that show has been taped and the way that show has been taped and will be shown on The Oprah Winfrey will be shown on The Oprah Winfrey will be shown on The Oprah Winfrey Network October st at : p.m. that Network October st at : p.m. that Network October st at : p.m. that all of you should be watching men and all of you should be watching men and all of you should be watching men and women alike they welcomed me back and women alike they welcomed me back and women alike they welcomed me back and they were like where were you Suzy they were like where were you Suzy they were like where were you Suzy there's nobody else out there that'd be there's nobody else out there that'd be there's nobody else out there that'd be our money matriarch teach us Suzy we our money matriarch teach us Suzy we our money matriarch teach us Suzy we need to learn I don't know if you just need to learn I don't know if you just need to learn I don't know if you just retire and you don't have that type of retire and you don't have that type of retire and you don't have that type of ability to just come back when you want ability to just come back when you want ability to just come back when you want you should all think about it because you should all think about it because you should all think about it because then what do you do what do you do to then what do you do what do you do to then what do you do what do you do to fill up your hours in your days once fill up your hours in your days once fill up your hours in your days once you've traveled the world and you've you've traveled the world and you've you've traveled the world and you've done all this and there's no my other done all this and there's no my other done all this and there's no my other place for you to go and it's what do you place for you to go and it's what do you place for you to go and it's what do you do what do you do to fill your days up do what do you do to fill your days up do what do you do to fill your days up telling you four or five years into it telling you four or five years into it telling you four or five years into it you're gonna go I need to do something you're gonna go I need to do something you're gonna go I need to do something and then you can hopefully long as and then you can hopefully long as and then you can hopefully long as nothing's gone wrong in the meantime nothing's gone wrong in the meantime nothing's gone wrong in the meantime you've been talking about money for you've been talking about money for you've been talking about money for decades is yes any tip or piece of decades is yes any tip or piece of decades is yes any tip or piece of advice this is a question from a an advice this is a question from a an advice this is a question from a an audience member called rich and regular audience member called rich and regular audience member called rich and regular is there a tip or a piece of advice that is there a tip or a piece of advice that is there a tip or a piece of advice that people consistently undervalue or under people consistently undervalue or under people consistently undervalue or under appreciate yeah themselves especially appreciate yeah themselves especially appreciate yeah themselves especially women women when you undervalue what you women women when you undervalue what you women women when you undervalue what you do the world undervalues who you are and do the world undervalues who you are and do the world undervalues who you are and when you undervalue who you are the when you undervalue who you are the when you undervalue who you are the world undervalues what you do you put world undervalues what you do you put world undervalues what you do you put yourself on sale most of the time women yourself on sale most of the time women yourself on sale most of the time women we are very very different than men we are very very different than men we are very very different than men most of us will tend to say yes out of most of us will tend to say yes out of most of us will tend to say yes out of fear that somebody won't like us or fear that somebody won't like us or fear that somebody won't like us or somebody will be mad at us versus no out somebody will be mad at us versus no out somebody will be mad at us versus no out of love for ourselves we care more about of love for ourselves we care more about of love for ourselves we care more about our children's our parents our spouse our children's our parents our spouse our children's our parents our spouse our brothers our sisters our employers our brothers our sisters our employers our brothers our sisters our employers our employees our pets in our plans our employees our pets in our plans our employees our pets in our plans before we give to ourselves we need to before we give to ourselves we need to before we give to ourselves we need to learn to give to ourselves as much as we learn to give to ourselves as much as we learn to give to ourselves as much as we give of ourselves because otherwise give of ourselves because otherwise give of ourselves because otherwise you're gonna be great you're you're gonna be great you're you're gonna be great you're years of age and all of a sudden you're years of age and all of a sudden you're years of age and all of a sudden you're gonna find out that you forgot all about gonna find out that you forgot all about gonna find out that you forgot all about yourself yourself yourself and you know are you gonna get divorced and you know are you gonna get divorced and you know are you gonna get divorced are you gonna stay together what's gonna are you gonna stay together what's gonna are you gonna stay together what's gonna happen so it's important that you start happen so it's important that you start happen so it's important that you start giving to yourselves right here and giving to yourselves right here and giving to yourselves right here and right now and so yeah what we undervalue right now and so yeah what we undervalue right now and so yeah what we undervalue is who we are ladies more than anything is who we are ladies more than anything is who we are ladies more than anything else in this world on the topic of women else in this world on the topic of women else in this world on the topic of women there are a lot of women who and men who there are a lot of women who and men who there are a lot of women who and men who become stay-at-home parents yes and I've become stay-at-home parents yes and I've become stay-at-home parents yes and I've heard a lot of people in my audience say heard a lot of people in my audience say heard a lot of people in my audience say that their motivation for fire is that that their motivation for fire is that that their motivation for fire is that they want to become a stay-at-home they want to become a stay-at-home they want to become a stay-at-home parent a full-time staff and I don't parent a full-time staff and I don't parent a full-time staff and I don't have a problem with that so if you have have a problem with that so if you have have a problem with that so if you have the money there's nothing more important the money there's nothing more important the money there's nothing more important than being able to stay at home with than being able to stay at home with than being able to stay at home with your child you know I have a say in your child you know I have a say in your child you know I have a say in people first then money then things and people first then money then things and people first then money then things and having a child have mother and father having a child have mother and father having a child have mother and father mother mother father father contact is mother mother father father contact is mother mother father father contact is essential in development if you have the essential in development if you have the essential in development if you have the luxury of being able to do so but there luxury of being able to do so but there luxury of being able to do so but there will come a time at that point then when will come a time at that point then when will come a time at that point then when your child starts to go to school your your child starts to go to school your your child starts to go to school your child gets older and now you're sitting child gets older and now you're sitting child gets older and now you're sitting at home waiting for the kid to come back at home waiting for the kid to come back at home waiting for the kid to come back and then you're gonna wonder alright and then you're gonna wonder alright and then you're gonna wonder alright where do I get my value from where do I where do I get my value from where do I where do I get my value from where do I get my worth from you know I have a get my worth from you know I have a get my worth from you know I have a podcast women and money that's starting podcast women and money that's starting podcast women and money that's starting up again on Westwood one you can hear up again on Westwood one you can hear up again on Westwood one you can hear some of the episodes on iTunes and Sarah some of the episodes on iTunes and Sarah some of the episodes on iTunes and Sarah my co-host the reason I'm co-hosting my co-host the reason I'm co-hosting my co-host the reason I'm co-hosting with Sarah is because she's years of with Sarah is because she's years of with Sarah is because she's years of age was a very powerful young woman and age was a very powerful young woman and age was a very powerful young woman and has a lot of money to her name she could has a lot of money to her name she could has a lot of money to her name she could easily do fire if she wanted to easily do fire if she wanted to easily do fire if she wanted to and had a baby little girl by the name and had a baby little girl by the name and had a baby little girl by the name of Charlie and it was very difficult for of Charlie and it was very difficult for of Charlie and it was very difficult for Sara coming off powerful jobs and making Sara coming off powerful jobs and making Sara coming off powerful jobs and making all of this money and then taking the all of this money and then taking the all of this money and then taking the role of just a mother it was very role of just a mother it was very role of just a mother it was very difficult for her personally speaking difficult for her personally speaking difficult for her personally speaking and so she then started to divide it and so she then started to divide it and so she then started to divide it between her and her husband Kevin and between her and her husband Kevin and between her and her husband Kevin and it's been working out great but Sara now it's been working out great but Sara now it's been working out great but Sara now has a new passion called women and money has a new passion called women and money has a new passion called women and money and this whole thing that I'm on you can and this whole thing that I'm on you can and this whole thing that I'm on you can see the fire in her eyes now and her see the fire in her eyes now and her see the fire in her eyes now and her passion about what she's doing and so passion about what she's doing and so passion about what she's doing and so she was just with me in New York for a she was just with me in New York for a she was just with me in New York for a number of days loved to come back for number of days loved to come back for number of days loved to come back for Charlie and Kevin was with the baby Charlie and Kevin was with the baby Charlie and Kevin was with the baby whilst Sarah was gone now Kevin is in whilst Sarah was gone now Kevin is in whilst Sarah was gone now Kevin is in Australia doing his thing Sarah's with Australia doing his thing Sarah's with Australia doing his thing Sarah's with the baby and it's working fabulous so if the baby and it's working fabulous so if the baby and it's working fabulous so if you can work it out and you're okay but you can work it out and you're okay but you can work it out and you're okay but like I said there comes a time when you like I said there comes a time when you like I said there comes a time when you really love what you're doing you now really love what you're doing you now really love what you're doing you now give it up you're now with your child give it up you're now with your child give it up you're now with your child you just kind of make sure that you're you just kind of make sure that you're you just kind of make sure that you're also fulfilled and a lot of people need also fulfilled and a lot of people need also fulfilled and a lot of people need to go back to work to go back to work to go back to work so it just all depends on who you are so it just all depends on who you are so it just all depends on who you are and how you feel and do you have a and how you feel and do you have a and how you feel and do you have a passionate job and there's no one answer passionate job and there's no one answer passionate job and there's no one answer to it but I don't have a problem with to it but I don't have a problem with to it but I don't have a problem with that whatsoever so it sounds like that whatsoever so it sounds like that whatsoever so it sounds like there's seasons in a person's life of there's seasons in a person's life of there's seasons in a person's life of course there is there's stages in a course there is there's stages in a course there is there's stages in a person's life person's life person's life how you feel about something when you're how you feel about something when you're how you feel about something when you're is very different than how you felt is very different than how you felt is very different than how you felt about it when you're and having a about it when you're and having a about it when you're and having a child is a highlight but a child is also child is a highlight but a child is also child is a highlight but a child is also very expensive it's not just the daycare very expensive it's not just the daycare very expensive it's not just the daycare when they're young and making sure when they're young and making sure when they're young and making sure they're okay all of a sudden are they they're okay all of a sudden are they they're okay all of a sudden are they gonna go to a private school and are gonna go to a private school and are gonna go to a private school and are they healthy and does anything go wrong they healthy and does anything go wrong they healthy and does anything go wrong with them or are you gonna send them to with them or are you gonna send them to with them or are you gonna send them to a public school and if you're gonna send a public school and if you're gonna send a public school and if you're gonna send them to a private school now we're them to a private school now we're them to a private school now we're talking about thirty five thousand fifty talking about thirty five thousand fifty talking about thirty five thousand fifty thousand a year even for high schools thousand a year even for high schools thousand a year even for high schools and ten or twenty thousand dollars a and ten or twenty thousand dollars a and ten or twenty thousand dollars a year for grammar schools and then do you year for grammar schools and then do you year for grammar schools and then do you want to send them to college and do they want to send them to college and do they want to send them to college and do they want to go to Harvard do they want to go want to go to Harvard do they want to go want to go to Harvard do they want to go whatever and now we're looking at two whatever and now we're looking at two whatever and now we're looking at two hundred fifty thousand dollars to go to hundred fifty thousand dollars to go to hundred fifty thousand dollars to go to a college right now let alone later on a college right now let alone later on a college right now let alone later on it will probably be four or five hundred it will probably be four or five hundred it will probably be four or five hundred thousand dollars thousand dollars thousand dollars so what aspect do you want to play in so what aspect do you want to play in so what aspect do you want to play in your kid's life and do you want to put your kid's life and do you want to put your kid's life and do you want to put all of that on them or you're gonna want all of that on them or you're gonna want all of that on them or you're gonna want to help them with that because you don't to help them with that because you don't to help them with that because you don't want them to graduate with all these want them to graduate with all these want them to graduate with all these loans and all of it gets very very loans and all of it gets very very loans and all of it gets very very complicated a lot of the parents really complicated a lot of the parents really complicated a lot of the parents really choose to spend their money rather than choose to spend their money rather than choose to spend their money rather than them retiring and them having a good them retiring and them having a good them retiring and them having a good time to making sure that they've put time to making sure that they've put time to making sure that they've put away enough money so their kids graduate away enough money so their kids graduate away enough money so their kids graduate without student loan debt so their kids without student loan debt so their kids without student loan debt so their kids graduate with the best education graduate with the best education graduate with the best education possible in the hopes to get the best possible in the hopes to get the best possible in the hopes to get the best future for their kids but can you do future for their kids but can you do future for their kids but can you do fire and be married and have kids and fire and be married and have kids and fire and be married and have kids and raise them can you I don't know but I raise them can you I don't know but I raise them can you I don't know but I don't think $, a year is gonna pay don't think $, a year is gonna pay don't think $, a year is gonna pay for a private education in high school for a private education in high school for a private education in high school or college or whatever it may be so then or college or whatever it may be so then or college or whatever it may be so then you have to start schooling your kids if you have to start schooling your kids if you have to start schooling your kids if you have children you're gonna have to you have children you're gonna have to you have children you're gonna have to do it on your own you're gonna have to do it on your own you're gonna have to do it on your own you're gonna have to get scholarships you're gonna have to do get scholarships you're gonna have to do get scholarships you're gonna have to do loans oh but then Direct Loans will not loans oh but then Direct Loans will not loans oh but then Direct Loans will not pay $, a year for a college pay $, a year for a college pay $, a year for a college education so then you're either going to education so then you're either going to education so then you're either going to have to sign Parent PLUS loans or the have to sign Parent PLUS loans or the have to sign Parent PLUS loans or the kids gonna have to get a private student kids gonna have to get a private student kids gonna have to get a private student loan and you're gonna have to cosign for loan and you're gonna have to cosign for loan and you're gonna have to cosign for it because they're not gonna be able to it because they're not gonna be able to it because they're not gonna be able to qualify for it and then here we go with qualify for it and then here we go with qualify for it and then here we go with student loans and that you can't get rid student loans and that you can't get rid student loans and that you can't get rid of with bankruptcy speaking of being a of with bankruptcy speaking of being a of with bankruptcy speaking of being a student being in your twenties when student being in your twenties when student being in your twenties when you're in your twenties you dropped out you're in your twenties you dropped out you're in your twenties you dropped out of college jumped into a converted van of college jumped into a converted van of college jumped into a converted van drove across the country you had some drove across the country you had some drove across the country you had some great adventures and then you moved to great adventures and then you moved to great adventures and then you moved to Berkeley and became a waitress and Berkeley and became a waitress and Berkeley and became a waitress and during that time you didn't make much during that time you didn't make much during that time you didn't make much money you made $ a month that's right money you made $ a month that's right money you made $ a month that's right looking back on that since we discussed looking back on that since we discussed looking back on that since we discussed the importance of compounding the importance of compounding the importance of compounding particularly when you're young do you particularly when you're young do you particularly when you're young do you regret the opportunity cost regret the opportunity cost regret the opportunity cost the monetary opportunity cost utterly the monetary opportunity cost utterly the monetary opportunity cost utterly more mm-hmm more mm-hmm more mm-hmm I used to when I was just a financial I used to when I was just a financial I used to when I was just a financial adviser and seeing clients and I had adviser and seeing clients and I had adviser and seeing clients and I had some money but not a lot of money right some money but not a lot of money right some money but not a lot of money right because you all have to start somewhere because you all have to start somewhere because you all have to start somewhere it's when I realized because remember I it's when I realized because remember I it's when I realized because remember I became a stockbroker at I did not became a stockbroker at I did not became a stockbroker at I did not write my first book till and many of write my first book till and many of write my first book till and many of the stockbrokers already had millions of the stockbrokers already had millions of the stockbrokers already had millions of dollars at the age of dollars at the age of dollars at the age of and I would go hot and I would go hot and I would go hot do that they had been investing for do that they had been investing for do that they had been investing for years and they had been compounding and years and they had been compounding and years and they had been compounding and they put a lot of money away every month they put a lot of money away every month they put a lot of money away every month and they had a they had not one they and they had a they had not one they and they had a they had not one they didn't actually a lot of them have didn't actually a lot of them have didn't actually a lot of them have k's but they had individual investment k's but they had individual investment k's but they had individual investment accounts and i was like oh my god accounts and i was like oh my god accounts and i was like oh my god and i was just in awe of all the money and i was just in awe of all the money and i was just in awe of all the money that it was mainly men that all these that it was mainly men that all these that it was mainly men that all these men had and i kept thinking wow but i men had and i kept thinking wow but i men had and i kept thinking wow but i didn't have that opportunity cuz all i didn't have that opportunity cuz all i didn't have that opportunity cuz all i was making was $ a month i always was making was $ a month i always was making was $ a month i always said well you know if i can make ten said well you know if i can make ten said well you know if i can make ten thousand a year i could really start thousand a year i could really start thousand a year i could really start saving money but then you go from five saving money but then you go from five saving money but then you go from five thousand a year to ten thousand and the thousand a year to ten thousand and the thousand a year to ten thousand and the more money you make the more money you more money you make the more money you more money you make the more money you spend and then you tend not to save that spend and then you tend not to save that spend and then you tend not to save that much and you think it's okay i don't much and you think it's okay i don't much and you think it's okay i don't need to do it this year i'm still young need to do it this year i'm still young need to do it this year i'm still young i'd rather go on this trip I'd rather i'd rather go on this trip I'd rather i'd rather go on this trip I'd rather buy this BMW to impress everybody I'll buy this BMW to impress everybody I'll buy this BMW to impress everybody I'll do this I'll do that and now I don't do this I'll do that and now I don't do this I'll do that and now I don't regret it because of how much money I regret it because of how much money I regret it because of how much money I have now but if I didn't have any money have now but if I didn't have any money have now but if I didn't have any money and I had just been every day working and I had just been every day working and I had just been every day working and making a hundred thousand or two and making a hundred thousand or two and making a hundred thousand or two hundred thousand a year or whatever it hundred thousand a year or whatever it hundred thousand a year or whatever it was yeah you bet I would have regretted was yeah you bet I would have regretted was yeah you bet I would have regretted it so would you recommend to people who it so would you recommend to people who it so would you recommend to people who are listening to this who are in who are are listening to this who are in who are are listening to this who are in who are twenty years old or in their early s twenty years old or in their early s twenty years old or in their early s if they were contemplating taking a if they were contemplating taking a if they were contemplating taking a couple of years to go have an adventure couple of years to go have an adventure couple of years to go have an adventure go travel go see the Grand Canyon would go travel go see the Grand Canyon would go travel go see the Grand Canyon would you recommend that they do that or would you recommend that they do that or would you recommend that they do that or would you recommend that they put that aside you recommend that they put that aside you recommend that they put that aside and go straight into the workforce I and go straight into the workforce I and go straight into the workforce I would recommend they put that aside and would recommend they put that aside and would recommend they put that aside and go right into the workforce and start go right into the workforce and start go right into the workforce and start saving start investing the max in your saving start investing the max in your saving start investing the max in your Roth IRAs I absolutely contribute to the Roth IRAs I absolutely contribute to the Roth IRAs I absolutely contribute to the match the max of your retirement plan if match the max of your retirement plan if match the max of your retirement plan if you work for an employer that offers you work for an employer that offers you work for an employer that offers that you should be putting every penny that you should be putting every penny that you should be putting every penny you can away right here and right now you can away right here and right now you can away right here and right now and hoping that these markets go down and hoping that these markets go down and hoping that these markets go down down down do not want these markets to down down do not want these markets to down down do not want these markets to go up because when you put money away go up because when you put money away go up because when you put money away every month you are doing a technique every month you are doing a technique every month you are doing a technique called dollar cost averaging and as the called dollar cost averaging and as the called dollar cost averaging and as the stock market goes down the shares of stock market goes down the shares of stock market goes down the shares of what you're investing in go down and what you're investing in go down and what you're investing in go down and your dollars buy more shares if it goes your dollars buy more shares if it goes your dollars buy more shares if it goes up your dollars buy less shares but over up your dollars buy less shares but over up your dollars buy less shares but over time you're averaging the cost of what time you're averaging the cost of what time you're averaging the cost of what you're buying you're buying you're buying with your dollars and you don't lose big with your dollars and you don't lose big with your dollars and you don't lose big you don't gain big but over time you you don't gain big but over time you you don't gain big but over time you will make a fortune so take a sum of will make a fortune so take a sum of will make a fortune so take a sum of money max out everything now if you're money max out everything now if you're money max out everything now if you're maxing out everything and you don't have maxing out everything and you don't have maxing out everything and you don't have any credit card debt and you have at any credit card debt and you have at any credit card debt and you have at least an eight-month emergency fund least an eight-month emergency fund least an eight-month emergency fund outside of your retirement accounts and outside of your retirement accounts and outside of your retirement accounts and you're maxing your k you're maxing you're maxing your k you're maxing you're maxing your k you're maxing your Roth IRA you're maxing your Roth your Roth IRA you're maxing your Roth your Roth IRA you're maxing your Roth k and everything like that and k and everything like that and k and everything like that and alright you want to take two weeks or alright you want to take two weeks or alright you want to take two weeks or six weeks or whatever you'll get on six weeks or whatever you'll get on six weeks or whatever you'll get on vacation you can do that no problem but vacation you can do that no problem but vacation you can do that no problem but you need to max out everything during you need to max out everything during you need to max out everything during the years we need to start a movement the years we need to start a movement the years we need to start a movement called max you know where you make the called max you know where you make the called max you know where you make the most out of your money you really go for most out of your money you really go for most out of your money you really go for it you know I used to do this thing that it you know I used to do this thing that it you know I used to do this thing that and I don't have the numbers in my head and I don't have the numbers in my head and I don't have the numbers in my head anymore but if you contributed to an IRA anymore but if you contributed to an IRA anymore but if you contributed to an IRA with maximum amounts of money from with maximum amounts of money from with maximum amounts of money from almost from to or whatever it is I almost from to or whatever it is I almost from to or whatever it is I should do these numbers for you again should do these numbers for you again should do these numbers for you again and you left that money alone all the and you left that money alone all the and you left that money alone all the way till you were it's almost as if way till you were it's almost as if way till you were it's almost as if you would have more money than if you you would have more money than if you you would have more money than if you started at and did it all the way started at and did it all the way started at and did it all the way till you're now those numbers aren't till you're now those numbers aren't till you're now those numbers aren't accurate but there's some age in there accurate but there's some age in there accurate but there's some age in there that if you just started young and that if you just started young and that if you just started young and invested to the max and then just left invested to the max and then just left invested to the max and then just left that money and never touched it for a that money and never touched it for a that money and never touched it for a number of years you would have more than number of years you would have more than number of years you would have more than if you started at your ending point and if you started at your ending point and if you started at your ending point and you did it every maxed out every year you did it every maxed out every year you did it every maxed out every year until you were but given that I can't until you were but given that I can't until you were but given that I can't remember what those numbers are what do remember what those numbers are what do remember what those numbers are what do I know speaking of the years in which I know speaking of the years in which I know speaking of the years in which you were a stockbroker at Merrill Lynch you were a stockbroker at Merrill Lynch you were a stockbroker at Merrill Lynch now many of us know about Randi from now many of us know about Randi from now many of us know about Randi from Merrill Lynch yes other than that what Merrill Lynch yes other than that what Merrill Lynch yes other than that what was your biggest money mistake and how was your biggest money mistake and how was your biggest money mistake and how did you overcome it I learned that I did you overcome it I learned that I did you overcome it I learned that I really needed to listen to my own gut really needed to listen to my own gut really needed to listen to my own gut over what Merrill Lynch was telling me over what Merrill Lynch was telling me over what Merrill Lynch was telling me to buy for people that sometimes the to buy for people that sometimes the to buy for people that sometimes the brokerage firm has the clients interest brokerage firm has the clients interest brokerage firm has the clients interest at heart and sometimes I'm not sure they at heart and sometimes I'm not sure they at heart and sometimes I'm not sure they do at least when I was a do at least when I was a do at least when I was a stockbroker now I don't know if they stockbroker now I don't know if they stockbroker now I don't know if they still do this or not they would offer still do this or not they would offer still do this or not they would offer these these stocks from their portfolios these these stocks from their portfolios these these stocks from their portfolios and let's just say it was an IBM and and let's just say it was an IBM and and let's just say it was an IBM and let's just say IBM was selling at $ a let's just say IBM was selling at $ a let's just say IBM was selling at $ a share in the open market they would have share in the open market they would have share in the open market they would have a meeting and they would say to you a meeting and they would say to you a meeting and they would say to you listen your clients can buy IBM at $ a listen your clients can buy IBM at $ a listen your clients can buy IBM at $ a share and we'll pay you $ for every share and we'll pay you $ for every share and we'll pay you $ for every share that you sell your client makes share that you sell your client makes share that you sell your client makes off like a bandit you make off cuz let's off like a bandit you make off cuz let's off like a bandit you make off cuz let's just say the normal Commission was just say the normal Commission was just say the normal Commission was cents a share just let's say that's true cents a share just let's say that's true cents a share just let's say that's true right and I would go oh my god what a right and I would go oh my god what a right and I would go oh my god what a fabulous deal and I would call my fabulous deal and I would call my fabulous deal and I would call my clients and I would say by IBM you're clients and I would say by IBM you're clients and I would say by IBM you're buying it at a discount and it's a net buying it at a discount and it's a net buying it at a discount and it's a net sale no Commission to you and bla bla sale no Commission to you and bla bla sale no Commission to you and bla bla bla bla and the clients would do it and bla bla and the clients would do it and bla bla and the clients would do it and great here we were IB IB M was at $ a great here we were IB IB M was at $ a great here we were IB IB M was at $ a share before you knew it IBM was at $ share before you knew it IBM was at $ share before you knew it IBM was at $ a share mmm I started to learn that they a share mmm I started to learn that they a share mmm I started to learn that they would offload stocks that they had in would offload stocks that they had in would offload stocks that they had in their own portfolio on the brokers I their own portfolio on the brokers I their own portfolio on the brokers I learned many lessons about when I got learned many lessons about when I got learned many lessons about when I got advice and when they would tell me advice and when they would tell me advice and when they would tell me something was okay and when they would something was okay and when they would something was okay and when they would have a Buy rating on something and there have a Buy rating on something and there have a Buy rating on something and there were sometimes reasons outside of that were sometimes reasons outside of that were sometimes reasons outside of that the stock was just gonna go up that's the stock was just gonna go up that's the stock was just gonna go up that's when I really learned that they didn't when I really learned that they didn't when I really learned that they didn't care they didn't care and I learned that care they didn't care and I learned that care they didn't care and I learned that over and over again in many different over and over again in many different over and over again in many different ways and that's when I started my own ways and that's when I started my own ways and that's when I started my own firm in I had a very unusual way of firm in I had a very unusual way of firm in I had a very unusual way of charging people money I let them pay me charging people money I let them pay me charging people money I let them pay me what they thought their services were what they thought their services were what they thought their services were worth I never sold anybody a loaded worth I never sold anybody a loaded worth I never sold anybody a loaded mutual fund I never sold a bond fund to mutual fund I never sold a bond fund to mutual fund I never sold a bond fund to anybody because I knew that when anybody because I knew that when anybody because I knew that when interest rates went up and they were interest rates went up and they were interest rates went up and they were pushing these bond funds at a four and a pushing these bond funds at a four and a pushing these bond funds at a four and a half five percent commission to the half five percent commission to the half five percent commission to the stock broker while I was selling people stock broker while I was selling people stock broker while I was selling people Treasury notes and Treasury bonds that Treasury notes and Treasury bonds that Treasury notes and Treasury bonds that would pay me $ even if somebody put a would pay me $ even if somebody put a would pay me $ even if somebody put a million dollars into them million dollars into them million dollars into them because I knew that if interest rates because I knew that if interest rates because I knew that if interest rates went up the value of these bond funds went up the value of these bond funds went up the value of these bond funds would go down and that the interest rate would go down and that the interest rate would go down and that the interest rate in the bond fund would not go up and in the bond fund would not go up and in the bond fund would not go up and people would lose their money when they people would lose their money when they people would lose their money when they were supposed to be conservative and were supposed to be conservative and were supposed to be conservative and then when these target-date mutual funds then when these target-date mutual funds then when these target-date mutual funds came out that were the rage of all the came out that were the rage of all the came out that were the rage of all the ks I knew not to put anybody's money ks I knew not to put anybody's money ks I knew not to put anybody's money in them because you never invest in them because you never invest in them because you never invest according to your age you invest according to your age you invest according to your age you invest according to what's happening in the according to what's happening in the according to what's happening in the stock market and with interest rates and stock market and with interest rates and stock market and with interest rates and you would never want to put money in a you would never want to put money in a you would never want to put money in a mutual fund anyway unless it was an mutual fund anyway unless it was an mutual fund anyway unless it was an index fund and you just needed you know index fund and you just needed you know index fund and you just needed you know a no load index fund or a spider ETF a no load index fund or a spider ETF a no load index fund or a spider ETF because people need a diversification because people need a diversification because people need a diversification and then they could do that on their own and then they could do that on their own and then they could do that on their own but if you were gonna be managing money but if you were gonna be managing money but if you were gonna be managing money for somebody why would you put their for somebody why would you put their for somebody why would you put their money in a mutual fund where you got a money in a mutual fund where you got a money in a mutual fund where you got a loan you got paid a nice Commission for loan you got paid a nice Commission for loan you got paid a nice Commission for it but then they all had to pay expense it but then they all had to pay expense it but then they all had to pay expense ratios and charges to the portfolio ratios and charges to the portfolio ratios and charges to the portfolio manager managing the mutual fund why manager managing the mutual fund why manager managing the mutual fund why wouldn't I just invest their money wouldn't I just invest their money wouldn't I just invest their money themselves and then I learned about when themselves and then I learned about when themselves and then I learned about when I became a registered investment advisor I became a registered investment advisor I became a registered investment advisor that they wanted everybody's money into that they wanted everybody's money into that they wanted everybody's money into one account so I could charge them a % one account so I could charge them a % one account so I could charge them a % fee or whatever it was on all of their fee or whatever it was on all of their fee or whatever it was on all of their money when I didn't want to do that I money when I didn't want to do that I money when I didn't want to do that I would put their bond money where I would put their bond money where I would put their bond money where I bought individual bonds for them which bought individual bonds for them which bought individual bonds for them which always were better than bond funds and I always were better than bond funds and I always were better than bond funds and I put that into an account where it wasn't put that into an account where it wasn't put that into an account where it wasn't a managed account because you never a managed account because you never a managed account because you never bought and sold those bonds you just bought and sold those bonds you just bought and sold those bonds you just left them there and I only put the money left them there and I only put the money left them there and I only put the money that would we would be buying and that would we would be buying and that would we would be buying and selling or trading with or whatever into selling or trading with or whatever into selling or trading with or whatever into another account and then I learned another account and then I learned another account and then I learned doesn't even pay to trade if you just doesn't even pay to trade if you just doesn't even pay to trade if you just buy great quality stocks and you just buy great quality stocks and you just buy great quality stocks and you just leave them over the long run oh my god leave them over the long run oh my god leave them over the long run oh my god are you kidding are you kidding are you kidding you know you bought Facebook at and you know you bought Facebook at and you know you bought Facebook at and then it went down to where I bought then it went down to where I bought then it went down to where I bought it by the way you know and then it goes it by the way you know and then it goes it by the way you know and then it goes all of a sudden up to again and you all of a sudden up to again and you all of a sudden up to again and you go oh my god and you sell it but no you go oh my god and you sell it but no you go oh my god and you sell it but no you keep good quality stocks not that I keep good quality stocks not that I keep good quality stocks not that I necessarily would keep Facebook here by necessarily would keep Facebook here by necessarily would keep Facebook here by the way people I've sold my facebook now the way people I've sold my facebook now the way people I've sold my facebook now if you want to know but stacks like if you want to know but stacks like if you want to know but stacks like Amazon I remember when it first came out Amazon I remember when it first came out Amazon I remember when it first came out and then it went up and blah blah blah and then it went up and blah blah blah and then it went up and blah blah blah and I thought oh we made a fortune and and I thought oh we made a fortune and and I thought oh we made a fortune and now if I just kept it look now if I just kept it look now if I just kept it look are you kidding so you never really are you kidding so you never really are you kidding so you never really outsmart this market you can't time this outsmart this market you can't time this outsmart this market you can't time this market but if you're in this market for market but if you're in this market for market but if you're in this market for the long haul you buy stocks that are the long haul you buy stocks that are the long haul you buy stocks that are fabulous and as long as something hasn't fabulous and as long as something hasn't fabulous and as long as something hasn't happened in the management like with happened in the management like with happened in the management like with Tesla in my opinion I sold all my Tesla Tesla in my opinion I sold all my Tesla Tesla in my opinion I sold all my Tesla stock I thought I was gonna keep that stock I thought I was gonna keep that stock I thought I was gonna keep that stock forever stock forever stock forever but I don't like what I see happening but I don't like what I see happening but I don't like what I see happening with management so I didn't sell the with management so I didn't sell the with management so I didn't sell the stock because it went up or down I saw stock because it went up or down I saw stock because it went up or down I saw the stock as I didn't like the the stock as I didn't like the the stock as I didn't like the management anymore management anymore management anymore no there's just something about smoking no there's just something about smoking no there's just something about smoking weed on air that I just don't think is weed on air that I just don't think is weed on air that I just don't think is cool cool cool and I could go on and on about things and I could go on and on about things and I could go on and on about things that I saw happening and going this that I saw happening and going this that I saw happening and going this isn't about making money for people this isn't about making money for people this isn't about making money for people this is about making money for me and making is about making money for me and making is about making money for me and making money for the brokerage firm that's not money for the brokerage firm that's not money for the brokerage firm that's not the goal of money my goal was to make the goal of money my goal was to make the goal of money my goal was to make people as independent from people like people as independent from people like people as independent from people like me as possible and I never had a lack of me as possible and I never had a lack of me as possible and I never had a lack of clients I didn't have to want my clients clients I didn't have to want my clients clients I didn't have to want my clients to stick with me so I had them all open to stick with me so I had them all open to stick with me so I had them all open up when I had my own firm accounts at up when I had my own firm accounts at up when I had my own firm accounts at Charles Schwab and I told them what to Charles Schwab and I told them what to Charles Schwab and I told them what to do and I told them how to do it without do and I told them how to do it without do and I told them how to do it without Commission and everything like that they Commission and everything like that they Commission and everything like that they didn't need me and I didn't want them to didn't need me and I didn't want them to didn't need me and I didn't want them to come back to me cuz I couldn't even meet come back to me cuz I couldn't even meet come back to me cuz I couldn't even meet the need of all the people that wanted the need of all the people that wanted the need of all the people that wanted to come see me it was fabulous to come see me it was fabulous to come see me it was fabulous and is that what made you decide when and is that what made you decide when and is that what made you decide when you were in your mid-s to write your you were in your mid-s to write your you were in your mid-s to write your first book that you wanted to teach first book that you wanted to teach first book that you wanted to teach people oh no I simply wanted to impress people oh no I simply wanted to impress people oh no I simply wanted to impress my clients with the book oh how neat my clients with the book oh how neat my clients with the book oh how neat could it be if I wrote a book and here's could it be if I wrote a book and here's could it be if I wrote a book and here's the other example I did all remember my the other example I did all remember my the other example I did all remember my degrees in Social Work and geriatrics degrees in Social Work and geriatrics degrees in Social Work and geriatrics and so I always specialized in and so I always specialized in and so I always specialized in retirement planning and that's what I retirement planning and that's what I retirement planning and that's what I was known for which is why PG&E came to was known for which is why PG&E came to was known for which is why PG&E came to me and I and made all these people all me and I and made all these people all me and I and made all these people all this money within their k plans they this money within their k plans they this money within their k plans they didn't have Roth's necessarily at that didn't have Roth's necessarily at that didn't have Roth's necessarily at that time and then a client had a stroke or a time and then a client had a stroke or a time and then a client had a stroke or a heart attack and ended up in a nursing heart attack and ended up in a nursing heart attack and ended up in a nursing home and then what happened is they home and then what happened is they home and then what happened is they needed money from their K to pay for needed money from their K to pay for needed money from their K to pay for the expense of the nursing home because the expense of the nursing home because the expense of the nursing home because it was five or ten thousand a month even it was five or ten thousand a month even it was five or ten thousand a month even back then and back then and back then and and we had to take out $, a month and we had to take out $, a month and we had to take out $, a month if it were , cuz after taxes that's if it were , cuz after taxes that's if it were , cuz after taxes that's what we had to do right and then the what we had to do right and then the what we had to do right and then the person uses all the money in the k person uses all the money in the k person uses all the money in the k and now because the woman at home it was and now because the woman at home it was and now because the woman at home it was usually the woman is now needing the usually the woman is now needing the usually the woman is now needing the money as well because now things have money as well because now things have money as well because now things have gone wrong and now the person in the gone wrong and now the person in the gone wrong and now the person in the nursing home dies no money is left in nursing home dies no money is left in nursing home dies no money is left in the k and with the death of that the k and with the death of that the k and with the death of that person person person one Social Security check was lost the one Social Security check was lost the one Social Security check was lost the pension plan at times was decreased and pension plan at times was decreased and pension plan at times was decreased and even if it wasn't decreased now I have a even if it wasn't decreased now I have a even if it wasn't decreased now I have a spouse that didn't you know is living on spouse that didn't you know is living on spouse that didn't you know is living on one Social Security check all the money one Social Security check all the money one Social Security check all the money in the k plan is gone and their in the k plan is gone and their in the k plan is gone and their pension you know is still there but it pension you know is still there but it pension you know is still there but it was a mess was a mess was a mess and I thought oh my god I need to learn and I thought oh my god I need to learn and I thought oh my god I need to learn about long-term care insurance so I about long-term care insurance so I about long-term care insurance so I started to become the nation's expert on started to become the nation's expert on started to become the nation's expert on long-term care insurance and I thought I long-term care insurance and I thought I long-term care insurance and I thought I know I'll write a book called keeping know I'll write a book called keeping know I'll write a book called keeping your gold in the golden years about what your gold in the golden years about what your gold in the golden years about what can go wrong so by fluke cent no can go wrong so by fluke cent no can go wrong so by fluke cent no publisher wanted a book by a woman on publisher wanted a book by a woman on publisher wanted a book by a woman on Finance in and so I was introduced Finance in and so I was introduced Finance in and so I was introduced to this woman Esther Margolis who by the to this woman Esther Margolis who by the to this woman Esther Margolis who by the way the women in money book is dedicated way the women in money book is dedicated way the women in money book is dedicated to because everybody has an ester in to because everybody has an ester in to because everybody has an ester in their life that looked at me and went oh their life that looked at me and went oh their life that looked at me and went oh I'll buy your book from you for ten I'll buy your book from you for ten I'll buy your book from you for ten thousand dollars I'm go you're gonna pay thousand dollars I'm go you're gonna pay thousand dollars I'm go you're gonna pay me $, to write this book and I'll me $, to write this book and I'll me $, to write this book and I'll give you copies to give your clients I give you copies to give your clients I give you copies to give your clients I thought I haven't made in the shade I thought I haven't made in the shade I thought I haven't made in the shade I don't want to be an author authors don't don't want to be an author authors don't don't want to be an author authors don't make money yeah I'm a financial adviser make money yeah I'm a financial adviser make money yeah I'm a financial adviser I in my own firm I'm doing great what I in my own firm I'm doing great what I in my own firm I'm doing great what are you talking about then she told me I are you talking about then she told me I are you talking about then she told me I had to go on a City book tour I'm had to go on a City book tour I'm had to go on a City book tour I'm like why I didn't do this to go on book like why I didn't do this to go on book like why I didn't do this to go on book tour well to make a long story short tour well to make a long story short tour well to make a long story short Esther went with me and knew more about Esther went with me and knew more about Esther went with me and knew more about me than I knew about myself got me on me than I knew about myself got me on me than I knew about myself got me on television shows got me on QVC whatever television shows got me on QVC whatever television shows got me on QVC whatever and before you knew it we sold , and before you knew it we sold , and before you knew it we sold , copies of you've earned it don't lose it copies of you've earned it don't lose it copies of you've earned it don't lose it in hardback for those of you who don't in hardback for those of you who don't in hardback for those of you who don't know a really good sale for a hardback know a really good sale for a hardback know a really good sale for a hardback book for an author is usually , book for an author is usually , book for an author is usually , copies and that's copies and that's copies and that's and then it goes too soft back now I'm and then it goes too soft back now I'm and then it goes too soft back now I'm getting a reputation of an author then getting a reputation of an author then getting a reputation of an author then the next book was nine steps to the next book was nine steps to the next book was nine steps to financial freedom and that book went on financial freedom and that book went on financial freedom and that book went on to sell millions of copies there was a to sell millions of copies there was a to sell millions of copies there was a month that it sold a million copies in month that it sold a million copies in month that it sold a million copies in hardback and now all of a sudden I'm hardback and now all of a sudden I'm hardback and now all of a sudden I'm making millions and millions of dollars making millions and millions of dollars making millions and millions of dollars selling books before you know it I have selling books before you know it I have selling books before you know it I have another book nine steps was on the another book nine steps was on the another book nine steps was on the bestseller list for one years the bestseller list for one years the bestseller list for one years the top-selling book you know the number one top-selling book you know the number one top-selling book you know the number one nonfiction hardback book in America in nonfiction hardback book in America in nonfiction hardback book in America in and now I write another book called and now I write another book called and now I write another book called courage to be rich that knocks nine courage to be rich that knocks nine courage to be rich that knocks nine steps to financial freedom off the list steps to financial freedom off the list steps to financial freedom off the list to number two and now I'm selling to number two and now I'm selling to number two and now I'm selling millions and millions of books now I'm millions and millions of books now I'm millions and millions of books now I'm offered TV shows and everybody wants me offered TV shows and everybody wants me offered TV shows and everybody wants me on the air with them and done it on I on the air with them and done it on I on the air with them and done it on I learned how to do television by going on learned how to do television by going on learned how to do television by going on and doing little hits promoting my book and doing little hits promoting my book and doing little hits promoting my book and the rest is history and the rest is history and the rest is history - what do you attribute the success of - what do you attribute the success of - what do you attribute the success of those books particularly the first one I those books particularly the first one I those books particularly the first one I don't have an explanation other than I don't have an explanation other than I don't have an explanation other than I just got out there and I spoke in truths just got out there and I spoke in truths just got out there and I spoke in truths I don't speak in words I speak in truths I don't speak in words I speak in truths I don't speak in words I speak in truths you can hear the passion in my voice and you can hear the passion in my voice and you can hear the passion in my voice and I have been now on podcast since I have been now on podcast since I have been now on podcast since o'clock this morning one after another o'clock this morning one after another o'clock this morning one after another after another after another after another after another after another after another I just left one interview you know it I just left one interview you know it I just left one interview you know it week of interviews from early in the week of interviews from early in the week of interviews from early in the morning to late at night in New York morning to late at night in New York morning to late at night in New York giving one talk after another talk after giving one talk after another talk after giving one talk after another talk after another talk and you can still maybe another talk and you can still maybe another talk and you can still maybe hearing in my voice is a little hoarse hearing in my voice is a little hoarse hearing in my voice is a little hoarse now but you can still hear the passion now but you can still hear the passion now but you can still hear the passion in my voice you know we were supposed to in my voice you know we were supposed to in my voice you know we were supposed to do a minute as you said or a half an do a minute as you said or a half an do a minute as you said or a half an hour thing and I'm still going with you hour thing and I'm still going with you hour thing and I'm still going with you and I'm like go we can go until my next and I'm like go we can go until my next and I'm like go we can go until my next one at seven because I'm another one one at seven because I'm another one one at seven because I'm another one after this you can hear it mm-hmm after this you can hear it mm-hmm after this you can hear it mm-hmm this is my passion people I want all of this is my passion people I want all of this is my passion people I want all of you to let me be your teacher you to let me be your teacher you to let me be your teacher I am the money matriarch of the world I am the money matriarch of the world I am the money matriarch of the world most people say I'm the personal finance most people say I'm the personal finance most people say I'm the personal finance expert of the world because I just don't expert of the world because I just don't expert of the world because I just don't do this here I do it worldwide so listen do this here I do it worldwide so listen do this here I do it worldwide so listen to me let me be your teacher pick up to me let me be your teacher pick up to me let me be your teacher pick up be of the women and money book take be of the women and money book take be of the women and money book take advantage of the offers that are in advantage of the offers that are in advantage of the offers that are in there the free course everything that there the free course everything that there the free course everything that you need to make sure that your life is you need to make sure that your life is you need to make sure that your life is protected and get other women and men to protected and get other women and men to protected and get other women and men to buy that book and create a movement buy that book and create a movement buy that book and create a movement where you can stand up for yourself and where you can stand up for yourself and where you can stand up for yourself and be secure in every possible way no be secure in every possible way no be secure in every possible way no matter what happens that's the movement matter what happens that's the movement matter what happens that's the movement I'm out just start here how do you know I'm out just start here how do you know I'm out just start here how do you know when you're secure you're secure when when you're secure you're secure when when you're secure you're secure when you really don't have to worry about if you really don't have to worry about if you really don't have to worry about if you have a job or you don't have a job you have a job or you don't have a job you have a job or you don't have a job you're absolutely fine no matter what you're absolutely fine no matter what you're absolutely fine no matter what can happen in your life when you're out can happen in your life when you're out can happen in your life when you're out of debt when you own your home out right of debt when you own your home out right of debt when you own your home out right when you're fine no matter what when you're fine no matter what when you're fine no matter what catastrophe comes your way catastrophe comes your way catastrophe comes your way because remember you can own your home because remember you can own your home because remember you can own your home outright and it can be blown away by a outright and it can be blown away by a outright and it can be blown away by a hurricane by a flood and a lot of these hurricane by a flood and a lot of these hurricane by a flood and a lot of these houses that you see now that are houses that you see now that are houses that you see now that are suffering flood damage because of the suffering flood damage because of the suffering flood damage because of the hurricane do you think they're covered hurricane do you think they're covered hurricane do you think they're covered with flood insurance or do you think with flood insurance or do you think with flood insurance or do you think they have lost all of the money that they have lost all of the money that they have lost all of the money that they had in their home uh-huh you better they had in their home uh-huh you better they had in their home uh-huh you better think about that because when the think about that because when the think about that because when the floodwaters go away mold comes in and floodwaters go away mold comes in and floodwaters go away mold comes in and now your house has to be destroyed and now your house has to be destroyed and now your house has to be destroyed and most of your policies will not cover you most of your policies will not cover you most of your policies will not cover you for mold but then it's alright you're for mold but then it's alright you're for mold but then it's alright you're part of the fire movement you don't have part of the fire movement you don't have part of the fire movement you don't have to worry about it do you I've seen to worry about it do you I've seen to worry about it do you I've seen people who had millions and millions and people who had millions and millions and people who had millions and millions and millions of dollars in real estate that millions of dollars in real estate that millions of dollars in real estate that was generating income for them and then was generating income for them and then was generating income for them and then the floods came and their real estate the floods came and their real estate the floods came and their real estate fell into a sinkhole or off a cliff in fell into a sinkhole or off a cliff in fell into a sinkhole or off a cliff in California or the muds that went through California or the muds that went through California or the muds that went through Santa Monica and killed seven people Santa Monica and killed seven people Santa Monica and killed seven people that I happen to know in multi-million that I happen to know in multi-million that I happen to know in multi-million dollar homes their homes are gone dollar homes their homes are gone dollar homes their homes are gone they're gone which means the Social they're gone which means the Social they're gone which means the Social Security is gone which means everything Security is gone which means everything Security is gone which means everything is gone not that they needed it and now is gone not that they needed it and now is gone not that they needed it and now what do their families do I've seen it what do their families do I've seen it what do their families do I've seen it happen with people who are in their s happen with people who are in their s happen with people who are in their s and they had a kid and now mommy and and they had a kid and now mommy and and they had a kid and now mommy and everybody is gone and the kid is there everybody is gone and the kid is there everybody is gone and the kid is there all by themselves do you have a will do all by themselves do you have a will do all by themselves do you have a will do you have a trust you have a trust you have a trust do you have an advanced directive do you do you have an advanced directive do you do you have an advanced directive do you have a durable power of attorney for have a durable power of attorney for have a durable power of attorney for health care have you taken care of what health care have you taken care of what health care have you taken care of what would happen if something happened to would happen if something happened to would happen if something happened to you who's gonna pay your bills who will you who's gonna pay your bills who will you who's gonna pay your bills who will be write your check a will isn't going be write your check a will isn't going be write your check a will isn't going to help you minors can't inherit money to help you minors can't inherit money to help you minors can't inherit money all your money will go into a blocked all your money will go into a blocked all your money will go into a blocked account if you left it to your kids account if you left it to your kids account if you left it to your kids until they're and then at the age of until they're and then at the age of until they're and then at the age of there are now no longer minors and if there are now no longer minors and if there are now no longer minors and if you don't have an advance directive and you don't have an advance directive and you don't have an advance directive and durable power of attorney for health durable power of attorney for health durable power of attorney for health care for them that they've signed over care for them that they've signed over care for them that they've signed over for you if they need your help and for you if they need your help and for you if they need your help and they're in an accident or get sick you they're in an accident or get sick you they're in an accident or get sick you can't make any decisions for them these can't make any decisions for them these can't make any decisions for them these are all the things besides just are all the things besides just are all the things besides just accumulating money that you best all accumulating money that you best all accumulating money that you best all know about given all of the warnings know about given all of the warnings know about given all of the warnings that we've heard the story of you that we've heard the story of you that we've heard the story of you supporting your mom at a cost of $, supporting your mom at a cost of $, supporting your mom at a cost of $, per month I mean how do we know there per month I mean how do we know there per month I mean how do we know there might be times the insurance won't be might be times the insurance won't be might be times the insurance won't be there when the floods come when an aging there when the floods come when an aging there when the floods come when an aging parent needs that kind of care how do we parent needs that kind of care how do we parent needs that kind of care how do we protect ourselves and plan for it on a protect ourselves and plan for it on a protect ourselves and plan for it on a middle-class income yeah you get middle-class income yeah you get middle-class income yeah you get long-term care insurance when it's long-term care insurance when it's long-term care insurance when it's affordable my mother refused to get it affordable my mother refused to get it affordable my mother refused to get it because she told me she would never ever because she told me she would never ever because she told me she would never ever ever need it my aunt and uncle got it I ever need it my aunt and uncle got it I ever need it my aunt and uncle got it I got them the best policy out there got them the best policy out there got them the best policy out there wasn't that much money at the time it wasn't that much money at the time it wasn't that much money at the time it was only two or three thousand a year was only two or three thousand a year was only two or three thousand a year and my mother refused to sign the papers and my mother refused to sign the papers and my mother refused to sign the papers the five times even though I was gonna the five times even though I was gonna the five times even though I was gonna pay for it she wouldn't do it so you be pay for it she wouldn't do it so you be pay for it she wouldn't do it so you be smart with your money you make sure that smart with your money you make sure that smart with your money you make sure that you get long-term care insurance when you get long-term care insurance when you get long-term care insurance when you can afford it if you think that you you can afford it if you think that you you can afford it if you think that you can afford it all the way from the time can afford it all the way from the time can afford it all the way from the time that you get it all the way into your that you get it all the way into your that you get it all the way into your s you make sure that you have s you make sure that you have s you make sure that you have disability insurance you make sure that disability insurance you make sure that disability insurance you make sure that you have flood insurance that if you you have flood insurance that if you you have flood insurance that if you live in areas that possibly could have live in areas that possibly could have live in areas that possibly could have rivers swell and things like that you rivers swell and things like that you rivers swell and things like that you just get it but just get it but just get it but then your $, a year on fire you then your $, a year on fire you then your $, a year on fire you better have that all those things better have that all those things better have that all those things included you know if you own your home included you know if you own your home included you know if you own your home outright you better make sure will your outright you better make sure will your outright you better make sure will your hurricane insurance do you even are you hurricane insurance do you even are you hurricane insurance do you even are you even having hurricane insurance or even having hurricane insurance or even having hurricane insurance or tornadoes or what are your risks how do tornadoes or what are your risks how do tornadoes or what are your risks how do your policies work all of that I was in your policies work all of that I was in your policies work all of that I was in the Oakland Hills when the , homes the Oakland Hills when the , homes the Oakland Hills when the , homes burnt down thank God mine didn't but all burnt down thank God mine didn't but all burnt down thank God mine didn't but all the people that came to me because their the people that came to me because their the people that came to me because their insurance policies weren't updated and insurance policies weren't updated and insurance policies weren't updated and everything and they were underinsured everything and they were underinsured everything and they were underinsured they were over it whatever it may be and they were over it whatever it may be and they were over it whatever it may be and it didn't pay to rebuild their homes and it didn't pay to rebuild their homes and it didn't pay to rebuild their homes and so all of these things you just need to so all of these things you just need to so all of these things you just need to check you need to know about which is check you need to know about which is check you need to know about which is why I write the books that I write so why I write the books that I write so why I write the books that I write so they tell you about all these things so they tell you about all these things so they tell you about all these things so you know what you can do so you know if you know what you can do so you know if you know what you can do so you know if you have a home that isn't that you have a home that isn't that you have a home that isn't that expensive then it's not that expensive expensive then it's not that expensive expensive then it's not that expensive for you to get the proper type of for you to get the proper type of for you to get the proper type of insurance to make sure that it's okay if insurance to make sure that it's okay if insurance to make sure that it's okay if something happens to it because I just something happens to it because I just something happens to it because I just want you to know this if you aren't want you to know this if you aren't want you to know this if you aren't properly insured and now your home is properly insured and now your home is properly insured and now your home is destroyed and you still have a mortgage destroyed and you still have a mortgage destroyed and you still have a mortgage payment guess what you have to continue payment guess what you have to continue payment guess what you have to continue to pay that mortgage payment why you to pay that mortgage payment why you to pay that mortgage payment why you aren't living in that home did you know aren't living in that home did you know aren't living in that home did you know that yeah it's still a debt that you owe that yeah it's still a debt that you owe that yeah it's still a debt that you owe yeah it's still a debt that you owe you yeah it's still a debt that you owe you yeah it's still a debt that you owe you know and then if you have to claim know and then if you have to claim know and then if you have to claim bankruptcy because you don't want to do bankruptcy because you don't want to do bankruptcy because you don't want to do that and now all right to claim that and now all right to claim that and now all right to claim bankruptcy if you have any other money bankruptcy if you have any other money bankruptcy if you have any other money oh they'll come after the other money oh they'll come after the other money oh they'll come after the other money that you have do you see these are all that you have do you see these are all that you have do you see these are all things that I know you never think are things that I know you never think are things that I know you never think are gonna happen to you everybody and I know gonna happen to you everybody and I know gonna happen to you everybody and I know you got a Suzy slap down for the fire you got a Suzy slap down for the fire you got a Suzy slap down for the fire movement and I know you don't want me to movement and I know you don't want me to movement and I know you don't want me to ruin your dreams and have them go all up ruin your dreams and have them go all up ruin your dreams and have them go all up in smoke I'm just telling you over the in smoke I'm just telling you over the in smoke I'm just telling you over the almost years that I've been doing almost years that I've been doing almost years that I've been doing this I have seen it all and I have seen this I have seen it all and I have seen this I have seen it all and I have seen things that have made me want to vomit things that have made me want to vomit things that have made me want to vomit that it made me cry that it made me feel that it made me cry that it made me feel that it made me cry that it made me feel like God why would you do this to these like God why would you do this to these like God why would you do this to these people are you kidding me just know that people are you kidding me just know that people are you kidding me just know that I say it with the knowledge and I say it with the knowledge and I say it with the knowledge and vision of things that I've seen and I've vision of things that I've seen and I've vision of things that I've seen and I've heard and I've read that I wish to God heard and I've read that I wish to God heard and I've read that I wish to God my eyes have never had to glance upon my eyes have never had to glance upon my eyes have never had to glance upon well thank you Susie well thank you Susie well thank you Susie you are welcome Paula and remember you are welcome Paula and remember you are welcome Paula and remember everybody October st at p.m. on the everybody October st at p.m. on the everybody October st at p.m. on the Oprah Winfrey Network men or boys Oprah Winfrey Network men or boys Oprah Winfrey Network men or boys whoever you are you should be watching whoever you are you should be watching whoever you are you should be watching in it as well because you can learn a in it as well because you can learn a in it as well because you can learn a lot when you watch the hour of the money lot when you watch the hour of the money lot when you watch the hour of the money matriarch and money thank you so much matriarch and money thank you so much matriarch and money thank you so much Susie anytime Paula an interesting Susie anytime Paula an interesting Susie anytime Paula an interesting interview that was unlike anything I interview that was unlike anything I interview that was unlike anything I have ever experienced in my three years have ever experienced in my three years have ever experienced in my three years as a podcast host as I said this is a as a podcast host as I said this is a as a podcast host as I said this is a very special episode this is different very special episode this is different very special episode this is different than what we normally produce typically than what we normally produce typically than what we normally produce typically after interviews I give key takeaways after interviews I give key takeaways after interviews I give key takeaways that have come out of the interview that have come out of the interview that have come out of the interview today I'm going to do something a little today I'm going to do something a little today I'm going to do something a little different I will briefly give my take different I will briefly give my take different I will briefly give my take and then I wouldn't like to open this up and then I wouldn't like to open this up and then I wouldn't like to open this up for discussion so let's begin number one for discussion so let's begin number one for discussion so let's begin number one I carry the impression that Susie may I carry the impression that Susie may I carry the impression that Susie may not fully understand the nuances of the not fully understand the nuances of the not fully understand the nuances of the fire movement at a surface level it may fire movement at a surface level it may fire movement at a surface level it may seem as though the fire movement is seem as though the fire movement is seem as though the fire movement is dedicated towards building a portfolio dedicated towards building a portfolio dedicated towards building a portfolio of million dollars in index funds as of million dollars in index funds as of million dollars in index funds as fast as you can so that you can retire fast as you can so that you can retire fast as you can so that you can retire at live on grand a year and do at live on grand a year and do at live on grand a year and do that for the rest of your life and never that for the rest of your life and never that for the rest of your life and never earn a penny of income again ever from earn a penny of income again ever from earn a penny of income again ever from the age of onward right at first the age of onward right at first the age of onward right at first blush that's what the fire movement blush that's what the fire movement blush that's what the fire movement might appear to be but once a person might appear to be but once a person might appear to be but once a person begins to learn about that movement it begins to learn about that movement it begins to learn about that movement it is far more nuanced than that and I'm is far more nuanced than that and I'm is far more nuanced than that and I'm preaching to the choir here because as preaching to the choir here because as preaching to the choir here because as most of you know financial independence most of you know financial independence most of you know financial independence is the point at which your potential is the point at which your potential is the point at which your potential passive income typically through passive income typically through passive income typically through investments are sufficient enough that investments are sufficient enough that investments are sufficient enough that you do not have to worry about your you do not have to worry about your you do not have to worry about your basic cost of living that is financial basic cost of living that is financial basic cost of living that is financial independence but just because a person independence but just because a person independence but just because a person achieves financial independence does achieves financial independence does achieves financial independence does necessarily mean that they retire and if necessarily mean that they retire and if necessarily mean that they retire and if and when a person does retire that does and when a person does retire that does and when a person does retire that does not necessarily mean that they stop not necessarily mean that they stop not necessarily mean that they stop earning income the fire movement has a earning income the fire movement has a earning income the fire movement has a very broad definition and an often very broad definition and an often very broad definition and an often debated definition of the word debated definition of the word debated definition of the word retirement to some people retirement retirement to some people retirement retirement to some people retirement means quitting a full-time nine-to-five means quitting a full-time nine-to-five means quitting a full-time nine-to-five salaried position so that they can salaried position so that they can salaried position so that they can pursue hobbies that earn money for pursue hobbies that earn money for pursue hobbies that earn money for example if you're a lawyer but you example if you're a lawyer but you example if you're a lawyer but you really want to be a podcaster then quote really want to be a podcaster then quote really want to be a podcaster then quote unquote retirement might allow you to do unquote retirement might allow you to do unquote retirement might allow you to do that and maybe in year one or year two that and maybe in year one or year two that and maybe in year one or year two of your podcast you might not make any of your podcast you might not make any of your podcast you might not make any money but by year three or four money but by year three or four money but by year three or four hopefully if things go well it'll start hopefully if things go well it'll start hopefully if things go well it'll start to pick up in that regard I've heard to pick up in that regard I've heard to pick up in that regard I've heard some people refer to fires brand of some people refer to fires brand of some people refer to fires brand of retirement as really a almost analogous retirement as really a almost analogous retirement as really a almost analogous to entrepreneurship with a safety net or to entrepreneurship with a safety net or to entrepreneurship with a safety net or self-employment with a safety net or the self-employment with a safety net or the self-employment with a safety net or the gig economy I don't think that anybody gig economy I don't think that anybody gig economy I don't think that anybody in the fire movement inside of the fire in the fire movement inside of the fire in the fire movement inside of the fire movement would argue that just because a movement would argue that just because a movement would argue that just because a person is retired that person is person is retired that person is person is retired that person is obligated to never earn a penny again obligated to never earn a penny again obligated to never earn a penny again and if they do earn a penny that means and if they do earn a penny that means and if they do earn a penny that means that they're not quote unquote really that they're not quote unquote really that they're not quote unquote really retired the whole concept of the retired the whole concept of the retired the whole concept of the internet retirement police well you're internet retirement police well you're internet retirement police well you're not really retired you work hours a not really retired you work hours a not really retired you work hours a week as a guitar instructor that's the week as a guitar instructor that's the week as a guitar instructor that's the attitude of the internet retirement attitude of the internet retirement attitude of the internet retirement police but that attitude as I think police but that attitude as I think police but that attitude as I think people in the fire movement understand people in the fire movement understand people in the fire movement understand is a load of BS and you can absolutely is a load of BS and you can absolutely is a load of BS and you can absolutely earn money after you're retired and so earn money after you're retired and so earn money after you're retired and so that addresses the second aspect of her that addresses the second aspect of her that addresses the second aspect of her objection which was part of her objection which was part of her objection which was part of her objection to fire is that you are no objection to fire is that you are no objection to fire is that you are no longer making contributions to your longer making contributions to your longer making contributions to your portfolio during your young years during portfolio during your young years during portfolio during your young years during your s and s and s however as she your s and s and s however as she your s and s and s however as she herself later said later in this same herself later said later in this same herself later said later in this same interview if you number one if you interview if you number one if you interview if you number one if you sufficiently fund your portfolio when sufficiently fund your portfolio when sufficiently fund your portfolio when you're young you could theoretically you're young you could theoretically you're young you could theoretically never put in another dime and still have never put in another dime and still have never put in another dime and still have a seven-figure sum when you are older a seven-figure sum when you are older a seven-figure sum when you are older and in addition to that just because you and in addition to that just because you and in addition to that just because you reach fire does not mean that you are reach fire does not mean that you are reach fire does not mean that you are going to necessarily draw down your going to necessarily draw down your going to necessarily draw down your portfolio that's portfolio that's portfolio that's why I say that the definition of passive why I say that the definition of passive why I say that the definition of passive income to me is that your potential income to me is that your potential income to me is that your potential passive income is enough because passive income is enough because passive income is enough because oftentimes the people who are ambitious oftentimes the people who are ambitious oftentimes the people who are ambitious enough to reach fire never actually end enough to reach fire never actually end enough to reach fire never actually end up drawing down their portfolio or never up drawing down their portfolio or never up drawing down their portfolio or never actually end up living on the income actually end up living on the income actually end up living on the income from their rental properties last year from their rental properties last year from their rental properties last year my income properties grossed , and my income properties grossed , and my income properties grossed , and netted forty three thousand dollars netted forty three thousand dollars netted forty three thousand dollars could I live on that absolutely am i could I live on that absolutely am i could I live on that absolutely am i living on that not even remotely I'm living on that not even remotely I'm living on that not even remotely I'm reinvesting all of it so I would reinvesting all of it so I would reinvesting all of it so I would consider myself financially independent consider myself financially independent consider myself financially independent because my passive income is enough that because my passive income is enough that because my passive income is enough that it could cover my basic cost of living it could cover my basic cost of living it could cover my basic cost of living but I don't want to sit on the couch but I don't want to sit on the couch but I don't want to sit on the couch doing nothing all day I want to write doing nothing all day I want to write doing nothing all day I want to write and teach and speak and host this and teach and speak and host this and teach and speak and host this podcast and grow a company I want to do podcast and grow a company I want to do podcast and grow a company I want to do that I think that's exciting as a result that I think that's exciting as a result that I think that's exciting as a result I make money from doing that which means I make money from doing that which means I make money from doing that which means that I don't actually need the income that I don't actually need the income that I don't actually need the income from the rental properties which means from the rental properties which means from the rental properties which means all of that gets reinvested I think that all of that gets reinvested I think that all of that gets reinvested I think that that addresses the second aspect of that addresses the second aspect of that addresses the second aspect of Suzy's objection her objection being Suzy's objection her objection being Suzy's objection her objection being drawing down from your portfolio when drawing down from your portfolio when drawing down from your portfolio when you're young could be a mistake and my you're young could be a mistake and my you're young could be a mistake and my response being fire does not necessarily response being fire does not necessarily response being fire does not necessarily mean that you are going to draw down and mean that you are going to draw down and mean that you are going to draw down and fire does not necessarily mean that you fire does not necessarily mean that you fire does not necessarily mean that you are going to stop making contributions are going to stop making contributions are going to stop making contributions all it means is that you could you heard all it means is that you could you heard all it means is that you could you heard her say people first then money then her say people first then money then her say people first then money then things well the point of fire is people things well the point of fire is people things well the point of fire is people first the point of fire is that if you first the point of fire is that if you first the point of fire is that if you have a family member with a terminal have a family member with a terminal have a family member with a terminal illness or if your children are young or illness or if your children are young or illness or if your children are young or if there is some circumstance in your if there is some circumstance in your if there is some circumstance in your life for which you need to or want to life for which you need to or want to life for which you need to or want to drop everything so that you can focus on drop everything so that you can focus on drop everything so that you can focus on family or friends or self-care so that family or friends or self-care so that family or friends or self-care so that you can focus on something that matters you can focus on something that matters you can focus on something that matters more than money the point of fire is more than money the point of fire is more than money the point of fire is that you have the ability to do that that you have the ability to do that that you have the ability to do that without getting bankrupted by that if without getting bankrupted by that if without getting bankrupted by that if you need to take time out to be able to you need to take time out to be able to you need to take time out to be able to focus on your health whether that's focus on your health whether that's focus on your health whether that's physical mental physical mental physical mental emotional or the health of somebody that emotional or the health of somebody that emotional or the health of somebody that you love you can do that and you're not you love you can do that and you're not you love you can do that and you're not gonna accumulate debt by virtue of doing gonna accumulate debt by virtue of doing gonna accumulate debt by virtue of doing that that's the purpose of fire and that that that's the purpose of fire and that that that's the purpose of fire and that is aligned with people first then money is aligned with people first then money is aligned with people first then money then things then things then things remember fire does not obligate you to remember fire does not obligate you to remember fire does not obligate you to stop working stop working stop working it does not obligate you to quit your it does not obligate you to quit your it does not obligate you to quit your job and if you do quit your job you are job and if you do quit your job you are job and if you do quit your job you are not under any obligation to draw down not under any obligation to draw down not under any obligation to draw down from your portfolio or to stop making from your portfolio or to stop making from your portfolio or to stop making contributions all of that is optional contributions all of that is optional contributions all of that is optional that's the purpose of fire is that it that's the purpose of fire is that it that's the purpose of fire is that it gives you options that's all it does and gives you options that's all it does and gives you options that's all it does and so sometimes it's hard for me to so sometimes it's hard for me to so sometimes it's hard for me to understand how anybody could be anti understand how anybody could be anti understand how anybody could be anti having more options but then when I having more options but then when I having more options but then when I listen to the objections to fire it listen to the objections to fire it listen to the objections to fire it becomes clear to me that the people who becomes clear to me that the people who becomes clear to me that the people who object to fire are ones who object to fire are ones who object to fire are ones who misunderstand it and I suppose as one of misunderstand it and I suppose as one of misunderstand it and I suppose as one of the voices out there who advocates for the voices out there who advocates for the voices out there who advocates for fire I am partially responsible for that fire I am partially responsible for that fire I am partially responsible for that apparently I'm not explaining fire as apparently I'm not explaining fire as apparently I'm not explaining fire as well as I could be apparently this well as I could be apparently this well as I could be apparently this message is getting distorted somewhere message is getting distorted somewhere message is getting distorted somewhere along the way I know my mission now I am along the way I know my mission now I am along the way I know my mission now I am going to keep advocating for fire going to keep advocating for fire going to keep advocating for fire because fire gives you choices and why because fire gives you choices and why because fire gives you choices and why would you not want choices so that is would you not want choices so that is would you not want choices so that is Paula's take I'd love to know what you Paula's take I'd love to know what you Paula's take I'd love to know what you think here are three places where you think here are three places where you think here are three places where you can join in this conversation number one can join in this conversation number one can join in this conversation number one go to afford anything calm slash episode go to afford anything calm slash episode go to afford anything calm slash episode that's where you'll find the show that's where you'll find the show that's where you'll find the show notes for today's episode and I invite notes for today's episode and I invite notes for today's episode and I invite you to please leave comments start a you to please leave comments start a you to please leave comments start a discussion in those show notes number discussion in those show notes number discussion in those show notes number if you go to facebook.com slash afford if you go to facebook.com slash afford if you go to facebook.com slash afford anything that is the afford anything anything that is the afford anything anything that is the afford anything page on Facebook we're gonna have a page on Facebook we're gonna have a page on Facebook we're gonna have a thread about this please let's have a thread about this please let's have a thread about this please let's have a discussion there and number on discussion there and number on discussion there and number on Instagram there will be a post with a Instagram there will be a post with a Instagram there will be a post with a photo of Suzy Orman please leave photo of Suzy Orman please leave photo of Suzy Orman please leave comments remarks let's have a discussion comments remarks let's have a discussion comments remarks let's have a discussion there too so those are three places the there too so those are three places the there too so those are three places the show notes Facebook Instagram to leave show notes Facebook Instagram to leave show notes Facebook Instagram to leave your remarks about what you like to and your remarks about what you like to and your remarks about what you like to and what you didn't what made you happy what what you didn't what made you happy what what you didn't what made you happy what made you upset what did you think and made you upset what did you think and made you upset what did you think and how did this make you feel I would love how did this make you feel I would love how did this make you feel I would love to know and this whole community can to know and this whole community can to know and this whole community can create a conversation create a conversation create a conversation and that conversation that comes from and that conversation that comes from and that conversation that comes from this community will be amplified and this community will be amplified and this community will be amplified and will over time help spread the fire the will over time help spread the fire the will over time help spread the fire the fire movement is small and misunderstood fire movement is small and misunderstood fire movement is small and misunderstood it's growing but it is still small it is it's growing but it is still small it is it's growing but it is still small it is still a niche a subculture you are the still a niche a subculture you are the still a niche a subculture you are the Trailblazers Trailblazers Trailblazers let's keep blazing the trail let's keep let's keep blazing the trail let's keep let's keep blazing the trail let's keep spreading this fire my name is paula spreading this fire my name is paula spreading this fire my name is paula pant I'm the host of the afford anything pant I'm the host of the afford anything pant I'm the host of the afford anything podcast I'll catch you in the next podcast I'll catch you in the next podcast I'll catch you in the next episode episode episode [Music] WEBVTT Kind: captions Language: en [Music] you can afford anything but not you can afford anything but not you can afford anything but not everything every decision that you make everything every decision that you make everything every decision that you make is a trade-off against something else is a trade-off against something else is a trade-off against something else and that doesn't just apply to your and that doesn't just apply to your and that doesn't just apply to your money it applies to your time you focus money it applies to your time you focus money it applies to your time you focus your energy your attention anything in your energy your attention anything in your energy your attention anything in your life that's a scarce or limited your life that's a scarce or limited your life that's a scarce or limited resource and so the questions become resource and so the questions become resource and so the questions become twofold twofold twofold number one what matters most and number number one what matters most and number number one what matters most and number two how do you align your daily two how do you align your daily two how do you align your daily decisions to reflect those priorities by decisions to reflect those priorities by decisions to reflect those priorities by the way I'm just gonna say if you choose the way I'm just gonna say if you choose the way I'm just gonna say if you choose to spend money in one way that means you to spend money in one way that means you to spend money in one way that means you are choosing not to spend time in a are choosing not to spend time in a are choosing not to spend time in a different way you've heard the different way you've heard the different way you've heard the expression time is money right so you expression time is money right so you expression time is money right so you can trade time for money or you can can trade time for money or you can can trade time for money or you can trade money for time and that is an trade money for time and that is an trade money for time and that is an underlying premise behind the concept of underlying premise behind the concept of underlying premise behind the concept of financial independence which we're going financial independence which we're going financial independence which we're going to dive into in today's episode because to dive into in today's episode because to dive into in today's episode because there was an interesting precursor there was an interesting precursor there was an interesting precursor episode to this one episode to this one episode to this one my name is Paula Pam I'm the host of the my name is Paula Pam I'm the host of the my name is Paula Pam I'm the host of the afford anything podcast and if you afford anything podcast and if you afford anything podcast and if you haven't listened to the episode that haven't listened to the episode that haven't listened to the episode that came out a few days ago I encouraged came out a few days ago I encouraged came out a few days ago I encouraged that you actually stop listening to this that you actually stop listening to this that you actually stop listening to this one and go back and listen to that one one and go back and listen to that one one and go back and listen to that one instead because that episode is the instead because that episode is the instead because that episode is the preamble for everything you're about to preamble for everything you're about to preamble for everything you're about to hear now a few days ago in episode I hear now a few days ago in episode I hear now a few days ago in episode I interviewed personal finance guru Suze interviewed personal finance guru Suze interviewed personal finance guru Suze Orman Suze is one of the most famous Orman Suze is one of the most famous Orman Suze is one of the most famous names in the world of personal finance names in the world of personal finance names in the world of personal finance from until she hosted the Suze from until she hosted the Suze from until she hosted the Suze Orman show on CNBC one of the most Orman show on CNBC one of the most Orman show on CNBC one of the most famous aspects of that show is when famous aspects of that show is when famous aspects of that show is when callers would call in with a question or callers would call in with a question or callers would call in with a question or suggestion and she would oftentimes give suggestion and she would oftentimes give suggestion and she would oftentimes give it what she referred to as the Suze it what she referred to as the Suze it what she referred to as the Suze smackdown well on the most recent smackdown well on the most recent smackdown well on the most recent episode episode of this podcast she episode episode of this podcast she episode episode of this podcast she gave the fire movement the Suze gave the fire movement the Suze gave the fire movement the Suze smackdown so in today's episode we're smackdown so in today's episode we're smackdown so in today's episode we're gonna talk about what happened and gonna talk about what happened and gonna talk about what happened and processed through some thoughts that processed through some thoughts that processed through some thoughts that came about from that episode now came about from that episode now came about from that episode now normally were a weekly show we release normally were a weekly show we release normally were a weekly show we release an episode once a week every Monday an episode once a week every Monday an episode once a week every Monday morning but once a month on the first morning but once a month on the first morning but once a month on the first Friday of the month we release a first Friday of the month we release a first Friday of the month we release a first Friday bonus episode and so the timing Friday bonus episode and so the timing Friday bonus episode and so the timing of the Suze Orman episode couldn't have of the Suze Orman episode couldn't have of the Suze Orman episode couldn't have been better we released it Monday been better we released it Monday been better we released it Monday October st and then October st and then October st and then just following four days on the heels of just following four days on the heels of just following four days on the heels of that this is the first Friday bonus that this is the first Friday bonus that this is the first Friday bonus episode in which we review WTF so here's episode in which we review WTF so here's episode in which we review WTF so here's what we're gonna do in today's episode what we're gonna do in today's episode what we're gonna do in today's episode first if you haven't heard the interview first if you haven't heard the interview first if you haven't heard the interview I'm going to briefly summarize it then I'm going to briefly summarize it then I'm going to briefly summarize it then we're gonna go over some of the we're gonna go over some of the we're gonna go over some of the community reaction to the interview community reaction to the interview community reaction to the interview after that I'll share my own personal after that I'll share my own personal after that I'll share my own personal experience and thought process around experience and thought process around experience and thought process around this and finally we'll close out with this and finally we'll close out with this and finally we'll close out with some more words from the community here some more words from the community here some more words from the community here we go I launched into the interview by we go I launched into the interview by we go I launched into the interview by asking Susie if she was familiar with asking Susie if she was familiar with asking Susie if she was familiar with the fire movement financial independence the fire movement financial independence the fire movement financial independence retire early and this was her response retire early and this was her response retire early and this was her response have you heard of the fire movement yes have you heard of the fire movement yes have you heard of the fire movement yes yes of course I have and I hate it yes of course I have and I hate it yes of course I have and I hate it really I hate it I hate it I hate it and really I hate it I hate it I hate it and really I hate it I hate it I hate it and let me tell you why well then at that let me tell you why well then at that let me tell you why well then at that point she explains why and the following point she explains why and the following point she explains why and the following is her position listen if you have is her position listen if you have is her position listen if you have or million dollars be like me or million dollars be like me or million dollars be like me okay do you have that kind of money and okay do you have that kind of money and okay do you have that kind of money and you want to retire fine but if you only you want to retire fine but if you only you want to retire fine but if you only have a few hundred thousand dollars or a have a few hundred thousand dollars or a have a few hundred thousand dollars or a million or two million dollars I'm here million or two million dollars I'm here million or two million dollars I'm here to tell you I doubt highly that when you to tell you I doubt highly that when you to tell you I doubt highly that when you no longer have a paycheck coming in and no longer have a paycheck coming in and no longer have a paycheck coming in and you've invested that money and maybe you've invested that money and maybe you've invested that money and maybe it's making some interest for you or it's making some interest for you or it's making some interest for you or dividends or whatever if a catastrophe dividends or whatever if a catastrophe dividends or whatever if a catastrophe happens if something goes wrong what are happens if something goes wrong what are happens if something goes wrong what are you going to do you are going to burn up you going to do you are going to burn up you going to do you are going to burn up alive because you won't have the money alive because you won't have the money alive because you won't have the money to do it to do it to do it oh that's concerning okay well Susie oh that's concerning okay well Susie oh that's concerning okay well Susie gives many reasons why she believes that gives many reasons why she believes that gives many reasons why she believes that two million dollars is insufficient two million dollars is insufficient two million dollars is insufficient those reasons are the following number those reasons are the following number those reasons are the following number one lack of long-term disability one lack of long-term disability one lack of long-term disability coverage Susie is concerned that the coverage Susie is concerned that the coverage Susie is concerned that the high cost of disability care could high cost of disability care could high cost of disability care could exceed exceed exceed the passive income generated from an the passive income generated from an the passive income generated from an early retirees portfolio so for example early retirees portfolio so for example early retirees portfolio so for example let's say that you retire at the age of let's say that you retire at the age of let's say that you retire at the age of or or and you are no longer or or and you are no longer or or and you are no longer covered by a workplace long term covered by a workplace long term covered by a workplace long term disability care plan your primary source disability care plan your primary source disability care plan your primary source of income in this hypothetical scenario of income in this hypothetical scenario of income in this hypothetical scenario are the withdrawals from your portfolio are the withdrawals from your portfolio are the withdrawals from your portfolio or rental property income and as a or rental property income and as a or rental property income and as a result you can no longer perform what's result you can no longer perform what's result you can no longer perform what's known in the insurance world as known in the insurance world as known in the insurance world as activities of daily living so the activities of daily living so the activities of daily living so the ability to brush your teeth put your ability to brush your teeth put your ability to brush your teeth put your shirt on go to the toilet by yourself shirt on go to the toilet by yourself shirt on go to the toilet by yourself without assistance you can no longer do without assistance you can no longer do without assistance you can no longer do those things and let's say in this those things and let's say in this those things and let's say in this example that you also don't have family example that you also don't have family example that you also don't have family that's able to step in and and take care that's able to step in and and take care that's able to step in and and take care of you at least they can't be full-time of you at least they can't be full-time of you at least they can't be full-time caretakers around the clock days a caretakers around the clock days a caretakers around the clock days a year year year so you need to hire outside assistance so you need to hire outside assistance so you need to hire outside assistance to come take care of you but you don't to come take care of you but you don't to come take care of you but you don't have any type of insurance coverage that have any type of insurance coverage that have any type of insurance coverage that could do that could do that could do that Susie cites that as a reason why she is Susie cites that as a reason why she is Susie cites that as a reason why she is concerned about early retirement but the concerned about early retirement but the concerned about early retirement but the answer is not just accumulating two answer is not just accumulating two answer is not just accumulating two million dollars two million dollars is million dollars two million dollars is million dollars two million dollars is nothing it's nothing it's pennies in nothing it's nothing it's pennies in nothing it's nothing it's pennies in today's world particularly she's today's world particularly she's today's world particularly she's concerned that we may not have concerned that we may not have concerned that we may not have adequately considered the financial adequately considered the financial adequately considered the financial ramifications of extreme Black Swan ramifications of extreme Black Swan ramifications of extreme Black Swan events now that example that I just events now that example that I just events now that example that I just shared long-term disability was one of shared long-term disability was one of shared long-term disability was one of the points that she brought up but she the points that she brought up but she the points that she brought up but she also brought up other forms of also brought up other forms of also brought up other forms of catastrophic coverage so that's point catastrophic coverage so that's point catastrophic coverage so that's point number two other catastrophic events number two other catastrophic events number two other catastrophic events that could take place include massive that could take place include massive that could take place include massive flooding earthquakes tornadoes medical flooding earthquakes tornadoes medical flooding earthquakes tornadoes medical bills all of which in theory should be bills all of which in theory should be bills all of which in theory should be covered by insurance but what happens if covered by insurance but what happens if covered by insurance but what happens if your insurance company does not grant your insurance company does not grant your insurance company does not grant your claim what if they deny your claim your claim what if they deny your claim your claim what if they deny your claim then what I am Telling You don't be then what I am Telling You don't be then what I am Telling You don't be naive don't test faith you should work naive don't test faith you should work naive don't test faith you should work as long as you possibly can in an area as long as you possibly can in an area as long as you possibly can in an area that you love so you don't feel that that you love so you don't feel that that you love so you don't feel that it's work so that is a second point that it's work so that is a second point that it's work so that is a second point that Suzy brings up in terms of her concern Suzy brings up in terms of her concern Suzy brings up in terms of her concern of of of the fire movement the third point that the fire movement the third point that the fire movement the third point that she brings up that an early retiree may she brings up that an early retiree may she brings up that an early retiree may not have the ability to sustain not have the ability to sustain not have the ability to sustain themselves via passive income alone in themselves via passive income alone in themselves via passive income alone in an extreme high tax environment here's an extreme high tax environment here's an extreme high tax environment here's what the fire people you are not what the fire people you are not what the fire people you are not thinking about so I'm gonna give it to thinking about so I'm gonna give it to thinking about so I'm gonna give it to you straight here now artificial you straight here now artificial you straight here now artificial intelligence is coming in big time do intelligence is coming in big time do intelligence is coming in big time do not be surprised if by the year not be surprised if by the year not be surprised if by the year there is a twenty five percent there is a twenty five percent there is a twenty five percent unemployment rate and how that affects unemployment rate and how that affects unemployment rate and how that affects you is this when people are no longer you is this when people are no longer you is this when people are no longer working because machines have replaced working because machines have replaced working because machines have replaced all of us all of us all of us there is nobody paying into the tax there is nobody paying into the tax there is nobody paying into the tax structure when nobody is paying into structure when nobody is paying into structure when nobody is paying into taxes tax brackets will have no choice taxes tax brackets will have no choice taxes tax brackets will have no choice but to go up according to Suzy she but to go up according to Suzy she but to go up according to Suzy she believes that artificial intelligence AI believes that artificial intelligence AI believes that artificial intelligence AI specifically might trigger a collapse in specifically might trigger a collapse in specifically might trigger a collapse in the workforce which could lead to an the workforce which could lead to an the workforce which could lead to an extremely high tax situation for extremely high tax situation for extremely high tax situation for everybody in the nation and if the everybody in the nation and if the everybody in the nation and if the drawdown on a portfolio is forty drawdown on a portfolio is forty drawdown on a portfolio is forty thousand pre-tax or sixty thousand or thousand pre-tax or sixty thousand or thousand pre-tax or sixty thousand or eighty thousand then if we live in a eighty thousand then if we live in a eighty thousand then if we live in a very extremely high tax environment very extremely high tax environment very extremely high tax environment those taxes might be crippling to the those taxes might be crippling to the those taxes might be crippling to the point at which those portfolio point at which those portfolio point at which those portfolio withdrawals can no longer cover a basic withdrawals can no longer cover a basic withdrawals can no longer cover a basic cost of living so that was point number cost of living so that was point number cost of living so that was point number three that Suzy made I'm telling you three that Suzy made I'm telling you three that Suzy made I'm telling you especially if income tax brackets go up especially if income tax brackets go up especially if income tax brackets go up if inflation comes back if all these if inflation comes back if all these if inflation comes back if all these other things happen eighty thousand other things happen eighty thousand other things happen eighty thousand dollars especially after taxes and as dollars especially after taxes and as dollars especially after taxes and as you get older is not going to be enough you get older is not going to be enough you get older is not going to be enough and finally point number four is that and finally point number four is that and finally point number four is that Suzy voiced a concern about the ability Suzy voiced a concern about the ability Suzy voiced a concern about the ability of an earlier tyree to be able to find a of an earlier tyree to be able to find a of an earlier tyree to be able to find a job if that person did need to return to job if that person did need to return to job if that person did need to return to full-time paid work many moms and dads full-time paid work many moms and dads full-time paid work many moms and dads who exit the workforce face a stiff who exit the workforce face a stiff who exit the workforce face a stiff career penalty when they attempt to career penalty when they attempt to career penalty when they attempt to re-enter the workforce and earlier re-enter the workforce and earlier re-enter the workforce and earlier Tyrese according to Suzy may face an Tyrese according to Suzy may face an Tyrese according to Suzy may face an even greater career penalty if their even greater career penalty if their even greater career penalty if their exit has been longer if their exit has exit has been longer if their exit has exit has been longer if their exit has been decades and so those four reasons been decades and so those four reasons been decades and so those four reasons lack of long-term disability planning lack of long-term disability planning lack of long-term disability planning lack of planning for other lack of planning for other lack of planning for other catastrophes the ability to sustain catastrophes the ability to sustain catastrophes the ability to sustain yourself in a high tax environment and yourself in a high tax environment and yourself in a high tax environment and the ability to find a job if you do need the ability to find a job if you do need the ability to find a job if you do need to re-enter the workforce those four to re-enter the workforce those four to re-enter the workforce those four reasons among others are some of the reasons among others are some of the reasons among others are some of the concerns that Suzie voiced around the concerns that Suzie voiced around the concerns that Suzie voiced around the notion of fire except well Suzie didn't notion of fire except well Suzie didn't notion of fire except well Suzie didn't exactly voice it like that look at me exactly voice it like that look at me exactly voice it like that look at me today when you're older is when you want today when you're older is when you want today when you're older is when you want forty fifty a hundred million dollars forty fifty a hundred million dollars forty fifty a hundred million dollars two million dollars when you're in your two million dollars when you're in your two million dollars when you're in your s you may think that is a lot and you s you may think that is a lot and you s you may think that is a lot and you can live on thousand and you can have can live on thousand and you can have can live on thousand and you can have a good time for two years three years a good time for two years three years a good time for two years three years four years five years and hopefully four years five years and hopefully four years five years and hopefully nothing will go wrong but I promise you nothing will go wrong but I promise you nothing will go wrong but I promise you as things get older in your life as as things get older in your life as as things get older in your life as hopefully you will if you think $, hopefully you will if you think $, hopefully you will if you think $, a year as you get older it's going to a year as you get older it's going to a year as you get older it's going to make it for you before taxes I have a make it for you before taxes I have a make it for you before taxes I have a bridge to sell you if I had said hey bridge to sell you if I had said hey bridge to sell you if I had said hey Suzy are you familiar with the fire Suzy are you familiar with the fire Suzy are you familiar with the fire movement and she had replied you know I movement and she had replied you know I movement and she had replied you know I am Paula I am familiar with it and I'm am Paula I am familiar with it and I'm am Paula I am familiar with it and I'm concerned that the people within this concerned that the people within this concerned that the people within this movement are not adequately mitigating movement are not adequately mitigating movement are not adequately mitigating risk okay if she had said that number risk okay if she had said that number risk okay if she had said that number one that would have been a reasonable one that would have been a reasonable one that would have been a reasonable remark because then the ensuing remark because then the ensuing remark because then the ensuing discussion could have been alright are discussion could have been alright are discussion could have been alright are we or are we not adequately planning for we or are we not adequately planning for we or are we not adequately planning for catastrophic or Black Swan events and catastrophic or Black Swan events and catastrophic or Black Swan events and that would have been a perfectly that would have been a perfectly that would have been a perfectly reasonable conversation to have and we reasonable conversation to have and we reasonable conversation to have and we could deep dive down that rabbit hole could deep dive down that rabbit hole could deep dive down that rabbit hole but that's not what she said what she but that's not what she said what she but that's not what she said what she said was I hate it I hate it I hate it said was I hate it I hate it I hate it said was I hate it I hate it I hate it and let me tell you why I kind of want and let me tell you why I kind of want and let me tell you why I kind of want to make that my ringtone okay so we have to make that my ringtone okay so we have to make that my ringtone okay so we have established that Suzy hates the fire established that Suzy hates the fire established that Suzy hates the fire movement and I have to give her credit movement and I have to give her credit movement and I have to give her credit Suzy is a master of money media in the Suzy is a master of money media in the Suzy is a master of money media in the words of PT Phil Taylor she knows that words of PT Phil Taylor she knows that words of PT Phil Taylor she knows that if she had phrased her concerns in a if she had phrased her concerns in a if she had phrased her concerns in a diplomatic and nuanced way there once diplomatic and nuanced way there once diplomatic and nuanced way there once you've been a major headline if she had you've been a major headline if she had you've been a major headline if she had said it she won't have been Suzy Orman said it she won't have been Suzy Orman said it she won't have been Suzy Orman because she knows that quote Suzy hates because she knows that quote Suzy hates because she knows that quote Suzy hates the fire movement hates it hates that the fire movement hates it hates that the fire movement hates it hates that hates it is a much hates it is a much hates it is a much stronger headline it's a much more stronger headline it's a much more stronger headline it's a much more clickbait headline than susie questions clickbait headline than susie questions clickbait headline than susie questions our risk mitigation strategy now in our risk mitigation strategy now in our risk mitigation strategy now in fairness I realized that I have just fairness I realized that I have just fairness I realized that I have just given a rather sympathetic account of given a rather sympathetic account of given a rather sympathetic account of what transpired in that interview what transpired in that interview what transpired in that interview because it would be equally accurate to because it would be equally accurate to because it would be equally accurate to say the Suzy also threw out some prices say the Suzy also threw out some prices say the Suzy also threw out some prices and ideas and quote unquote needs that and ideas and quote unquote needs that and ideas and quote unquote needs that were a little extreme a child is also were a little extreme a child is also were a little extreme a child is also very expensive it's not just the daycare very expensive it's not just the daycare very expensive it's not just the daycare when they're young and making sure when they're young and making sure when they're young and making sure they're okay they're okay they're okay all of a sudden are they gonna go to a all of a sudden are they gonna go to a all of a sudden are they gonna go to a private school and are they healthy and private school and are they healthy and private school and are they healthy and does anything go wrong with them or are does anything go wrong with them or are does anything go wrong with them or are you gonna send them to a public school you gonna send them to a public school you gonna send them to a public school and if you're gonna send them to a and if you're gonna send them to a and if you're gonna send them to a private school now we're talking about private school now we're talking about private school now we're talking about thirty five thousand fifty thousand a thirty five thousand fifty thousand a thirty five thousand fifty thousand a year even for high schools and ten or year even for high schools and ten or year even for high schools and ten or twenty thousand dollars a year for twenty thousand dollars a year for twenty thousand dollars a year for grammar schools and then do you want to grammar schools and then do you want to grammar schools and then do you want to send them to college and do they want to send them to college and do they want to send them to college and do they want to go to Harvard do they want to go go to Harvard do they want to go go to Harvard do they want to go whatever and now we're looking at two whatever and now we're looking at two whatever and now we're looking at two hundred fifty thousand dollars to go to hundred fifty thousand dollars to go to hundred fifty thousand dollars to go to a college right now let alone later on a college right now let alone later on a college right now let alone later on it will probably be four or five hundred it will probably be four or five hundred it will probably be four or five hundred thousand dollars she also talked about thousand dollars she also talked about thousand dollars she also talked about how the cost of caring for her aging how the cost of caring for her aging how the cost of caring for her aging mother came to . million dollars and mother came to . million dollars and mother came to . million dollars and so when I asked her how much money a so when I asked her how much money a so when I asked her how much money a person might need in order to retire person might need in order to retire person might need in order to retire early the ballpark estimate that she early the ballpark estimate that she early the ballpark estimate that she gave was somewhere around to gave was somewhere around to gave was somewhere around to million as a minimum and she estimated million as a minimum and she estimated million as a minimum and she estimated that a person might need to plan to live that a person might need to plan to live that a person might need to plan to live on approximately three hundred three on approximately three hundred three on approximately three hundred three hundred fifty thousand dollars per year hundred fifty thousand dollars per year hundred fifty thousand dollars per year just think about it logically let's say just think about it logically let's say just think about it logically let's say you need help and everything remember I you need help and everything remember I you need help and everything remember I took care of my mother and it cost me took care of my mother and it cost me took care of my mother and it cost me like I said it was thirty thousand like I said it was thirty thousand like I said it was thirty thousand dollars a month dollars a month dollars a month thirty thousand a month so you're thirty thousand a month so you're thirty thousand a month so you're talking about very possibly for talking about very possibly for talking about very possibly for full-time help and everything because full-time help and everything because full-time help and everything because good luck getting insurance and things good luck getting insurance and things good luck getting insurance and things to pay for it now but it's you know so to pay for it now but it's you know so to pay for it now but it's you know so you're talking about maybe three four you're talking about maybe three four you're talking about maybe three four hundred thousand a year all right so I'm hundred thousand a year all right so I'm hundred thousand a year all right so I'm wrong you're talking about a quarter wrong you're talking about a quarter wrong you're talking about a quarter million dollars a year there now you million dollars a year there now you million dollars a year there now you have other have other have other chances in food in everything and let's chances in food in everything and let's chances in food in everything and let's just say you need another hundred just say you need another hundred just say you need another hundred thousand a year to live because of other thousand a year to live because of other thousand a year to live because of other things that you need so now you need things that you need so now you need things that you need so now you need three hundred fifty thousand dollars a three hundred fifty thousand dollars a three hundred fifty thousand dollars a year after taxes if you have money even year after taxes if you have money even year after taxes if you have money even if you have a million dollars right now if you have a million dollars right now if you have a million dollars right now and and you're getting a four percent and and you're getting a four percent and and you're getting a four percent yield that's forty thousand dollars yield that's forty thousand dollars yield that's forty thousand dollars right right right yeah a forty thousand a year so you need yeah a forty thousand a year so you need yeah a forty thousand a year so you need at least five million dollars six at least five million dollars six at least five million dollars six million dollars so that five percent and million dollars so that five percent and million dollars so that five percent and that's before tax mm-hmm so you need a that's before tax mm-hmm so you need a that's before tax mm-hmm so you need a % after yale tax a municipal bonds to % after yale tax a municipal bonds to % after yale tax a municipal bonds to yield you three hundred thousand dollars yield you three hundred thousand dollars yield you three hundred thousand dollars so really you might need ten million so really you might need ten million so really you might need ten million dollars just so you if you're making you dollars just so you if you're making you dollars just so you if you're making you know five percent on that money and know five percent on that money and know five percent on that money and after tax you'll be fine without after tax you'll be fine without after tax you'll be fine without touching your principal naturally those touching your principal naturally those touching your principal naturally those statements led to the obvious question statements led to the obvious question statements led to the obvious question what about the vast majority of what about the vast majority of what about the vast majority of americans who don't make six figures how americans who don't make six figures how americans who don't make six figures how will they ever afford to exist and so I will they ever afford to exist and so I will they ever afford to exist and so I asked her about person a and person B asked her about person a and person B asked her about person a and person B person a is a traditional retiree with a person a is a traditional retiree with a person a is a traditional retiree with a two million portfolio person B is an two million portfolio person B is an two million portfolio person B is an early retiree with a two million early retiree with a two million early retiree with a two million portfolio what is the difference between portfolio what is the difference between portfolio what is the difference between the two according to Suzy the fact that the two according to Suzy the fact that the two according to Suzy the fact that person a continues working until the age person a continues working until the age person a continues working until the age of sixty-five or seventy means that they of sixty-five or seventy means that they of sixty-five or seventy means that they have greater insurance coverage have greater insurance coverage have greater insurance coverage throughout their career including throughout their career including throughout their career including disability insurance which covers them disability insurance which covers them disability insurance which covers them in the event of those extreme Black Swan in the event of those extreme Black Swan in the event of those extreme Black Swan scenarios so it sounded to me from what scenarios so it sounded to me from what scenarios so it sounded to me from what I'm hearing as though Suzy's criticism I'm hearing as though Suzy's criticism I'm hearing as though Suzy's criticism of the fire movement is lack of adequate of the fire movement is lack of adequate of the fire movement is lack of adequate insurance coverage and if that is the insurance coverage and if that is the insurance coverage and if that is the crux of the concern that's deal with crux of the concern that's deal with crux of the concern that's deal with able you may or may not agree that that able you may or may not agree that that able you may or may not agree that that is actually a concern and there's is actually a concern and there's is actually a concern and there's certainly a valid argument to be made certainly a valid argument to be made certainly a valid argument to be made that fear is expensive and perhaps we that fear is expensive and perhaps we that fear is expensive and perhaps we don't need to be as worried about that don't need to be as worried about that don't need to be as worried about that as Suzy thinks that we should be but as Suzy thinks that we should be but as Suzy thinks that we should be but regardless of where you fall on the to regardless of where you fall on the to regardless of where you fall on the to over insure or not to over insurer over insure or not to over insurer over insure or not to over insurer question the fundamental fact remains question the fundamental fact remains question the fundamental fact remains that a conversation that says I have that a conversation that says I have that a conversation that says I have insurance related concerns is very insurance related concerns is very insurance related concerns is very different than a conversation that says different than a conversation that says different than a conversation that says I personally think it is the biggest I personally think it is the biggest I personally think it is the biggest mistake financially speaking you will mistake financially speaking you will mistake financially speaking you will ever ever make in your lifetime so I ever ever make in your lifetime so I ever ever make in your lifetime so I invited the community to discuss this invited the community to discuss this invited the community to discuss this episode on social media and on the blog episode on social media and on the blog episode on social media and on the blog and on the podcast show notes we got and on the podcast show notes we got and on the podcast show notes we got some amazing comments I want to share some amazing comments I want to share some amazing comments I want to share some step many of those with you right some step many of those with you right some step many of those with you right now now now my personal favorite came from mister my personal favorite came from mister my personal favorite came from mister money mustache who tweeted oMG listen to money mustache who tweeted oMG listen to money mustache who tweeted oMG listen to this prominent financial guru hating on this prominent financial guru hating on this prominent financial guru hating on the idea of financial independence like the idea of financial independence like the idea of financial independence like a Disney villain major props to afford a Disney villain major props to afford a Disney villain major props to afford anything for capturing this classic anything for capturing this classic anything for capturing this classic moment in an interview it's like getting moment in an interview it's like getting moment in an interview it's like getting your biggest foes to admit that they your biggest foes to admit that they your biggest foes to admit that they hate puppies and then my favorite hate puppies and then my favorite hate puppies and then my favorite response to that was one of his response to that was one of his response to that was one of his followers tweeted their reply eat followers tweeted their reply eat followers tweeted their reply eat puppies let's share some of the other puppies let's share some of the other puppies let's share some of the other comments on Twitter comments on Twitter comments on Twitter senior crown says work until your bank senior crown says work until your bank senior crown says work until your bank account looks like a phone number I account looks like a phone number I account looks like a phone number I think that's basically what she says COO think that's basically what she says COO think that's basically what she says COO Bert at abandoned cubicle says I feel so Bert at abandoned cubicle says I feel so Bert at abandoned cubicle says I feel so small Suzy should I aim for million small Suzy should I aim for million small Suzy should I aim for million two hundred million and Daniel Parker two hundred million and Daniel Parker two hundred million and Daniel Parker says what this is interesting so work says what this is interesting so work says what this is interesting so work until we're old and can't enjoy it until we're old and can't enjoy it until we're old and can't enjoy it rather than taking a calculated risk and rather than taking a calculated risk and rather than taking a calculated risk and Nate flies chimes in with based on all Nate flies chimes in with based on all Nate flies chimes in with based on all the examples Suzy gave of bad things the examples Suzy gave of bad things the examples Suzy gave of bad things happening to her friends I never want to happening to her friends I never want to happening to her friends I never want to be her friend so the theme of a lot of be her friend so the theme of a lot of be her friend so the theme of a lot of the comments seems to be she is the comments seems to be she is the comments seems to be she is cherry-picking anecdotal examples of cherry-picking anecdotal examples of cherry-picking anecdotal examples of extreme Black Swan events to make it extreme Black Swan events to make it extreme Black Swan events to make it sound as though we need an impossible sound as though we need an impossible sound as though we need an impossible amount of money to be able to retire and amount of money to be able to retire and amount of money to be able to retire and on Twitter nomads with a vision said it on Twitter nomads with a vision said it on Twitter nomads with a vision said it very well when they said just listen to very well when they said just listen to very well when they said just listen to afford anything Suze Orman interview I afford anything Suze Orman interview I afford anything Suze Orman interview I agree that it's good to consider agree that it's good to consider agree that it's good to consider opposing opposing opposing opinions but it's quite obvious that opinions but it's quite obvious that opinions but it's quite obvious that Susy has done a little research into the Susy has done a little research into the Susy has done a little research into the fire movement and engages a straw man fire movement and engages a straw man fire movement and engages a straw man fallacy her argument has more holes than fallacy her argument has more holes than fallacy her argument has more holes than Swiss cheese Swiss cheese Swiss cheese I think that's wonderfully said it's I think that's wonderfully said it's I think that's wonderfully said it's great to listen to opposing viewpoints great to listen to opposing viewpoints great to listen to opposing viewpoints it would make a stronger case if those it would make a stronger case if those it would make a stronger case if those opposing viewpoints were a delivered in opposing viewpoints were a delivered in opposing viewpoints were a delivered in a more diplomatic and rational manner a more diplomatic and rational manner a more diplomatic and rational manner and B if they followed a logical and B if they followed a logical and B if they followed a logical construct that's what I'm really looking construct that's what I'm really looking construct that's what I'm really looking for here can can we have a conversation for here can can we have a conversation for here can can we have a conversation in which somebody comes on the show and in which somebody comes on the show and in which somebody comes on the show and says all right if a then B if B then says all right if a then B if B then says all right if a then B if B then either C or D and if D then either G E either C or D and if D then either G E either C or D and if D then either G E or F and if F then you're right if we or F and if F then you're right if we or F and if F then you're right if we were to have a conversation like that were to have a conversation like that were to have a conversation like that and we could trace the logical flow then and we could trace the logical flow then and we could trace the logical flow then sure we can talk about what might happen sure we can talk about what might happen sure we can talk about what might happen in the event that that set of in the event that that set of in the event that that set of circumstances unfolds we can talk about circumstances unfolds we can talk about circumstances unfolds we can talk about expected value and risk of ruin we can expected value and risk of ruin we can expected value and risk of ruin we can discuss risk mitigation we can discuss discuss risk mitigation we can discuss discuss risk mitigation we can discuss probabilities we can talk logic I would probabilities we can talk logic I would probabilities we can talk logic I would be so happy to have that conversation be so happy to have that conversation be so happy to have that conversation that is very different than an that is very different than an that is very different than an emotionally charged argument that uses emotionally charged argument that uses emotionally charged argument that uses fear in order to make slash distract fear in order to make slash distract fear in order to make slash distract from what might otherwise be valid from what might otherwise be valid from what might otherwise be valid points because remember you can own your points because remember you can own your points because remember you can own your home outright and it can be blown away home outright and it can be blown away home outright and it can be blown away by a hurricane by a flood and a lot of by a hurricane by a flood and a lot of by a hurricane by a flood and a lot of these houses that you see now that are these houses that you see now that are these houses that you see now that are suffering flood damage because of the suffering flood damage because of the suffering flood damage because of the hurricane do you think they're covered hurricane do you think they're covered hurricane do you think they're covered with flood insurance or do you think with flood insurance or do you think with flood insurance or do you think they have lost all of the money that they have lost all of the money that they have lost all of the money that they had in their home uh-huh you better they had in their home uh-huh you better they had in their home uh-huh you better think about that because when the think about that because when the think about that because when the floodwaters go away mold comes in and floodwaters go away mold comes in and floodwaters go away mold comes in and now your house has to be destroyed and now your house has to be destroyed and now your house has to be destroyed and most of your policies will not cover you most of your policies will not cover you most of your policies will not cover you for mold but then it's alright you're for mold but then it's alright you're for mold but then it's alright you're part of the fire movement you don't have part of the fire movement you don't have part of the fire movement you don't have to worry about it do you another member to worry about it do you another member to worry about it do you another member of our community on Twitter Brandon Hill of our community on Twitter Brandon Hill of our community on Twitter Brandon Hill says I thought it was a great interview says I thought it was a great interview says I thought it was a great interview and I really hope your listeners keep an and I really hope your listeners keep an and I really hope your listeners keep an open mind while I am striving for fire open mind while I am striving for fire open mind while I am striving for fire and while she likely over and while she likely over and while she likely over dated how much money people need it dated how much money people need it dated how much money people need it serves as a good reminder to build in a serves as a good reminder to build in a serves as a good reminder to build in a margin of safety in one's financial life margin of safety in one's financial life margin of safety in one's financial life Brendan that is such a mature response Brendan that is such a mature response Brendan that is such a mature response it's such a grown-up response and it's it's such a grown-up response and it's it's such a grown-up response and it's one of many I was incredibly impressed one of many I was incredibly impressed one of many I was incredibly impressed by this community at how so many people by this community at how so many people by this community at how so many people within this community were able to cut within this community were able to cut within this community were able to cut through the noise and find the nuggets through the noise and find the nuggets through the noise and find the nuggets of wisdom within her interview that were of wisdom within her interview that were of wisdom within her interview that were easily buried by an intentionally easily buried by an intentionally easily buried by an intentionally incendiary delivery I was incredibly incendiary delivery I was incredibly incendiary delivery I was incredibly impressed with the intellectual caliber impressed with the intellectual caliber impressed with the intellectual caliber of this audience afford anything has of this audience afford anything has of this audience afford anything has attracted an impressively smart attracted an impressively smart attracted an impressively smart community and many of you have the community and many of you have the community and many of you have the wisdom to be able to put your own wisdom to be able to put your own wisdom to be able to put your own emotional reactivity aside zoom out and emotional reactivity aside zoom out and emotional reactivity aside zoom out and focus on the bigger picture and ask focus on the bigger picture and ask focus on the bigger picture and ask yourself okay yourself okay yourself okay what is she really saying and can I what is she really saying and can I what is she really saying and can I learn from this can I find any kernel of learn from this can I find any kernel of learn from this can I find any kernel of truth within this I was extremely truth within this I was extremely truth within this I was extremely impressed by the maturity of the impressed by the maturity of the impressed by the maturity of the responses let's go through a few more responses let's go through a few more responses let's go through a few more responses at Luna whisper says ask responses at Luna whisper says ask responses at Luna whisper says ask someone who has a fairly expensive someone who has a fairly expensive someone who has a fairly expensive chronic condition I can really chronic condition I can really chronic condition I can really appreciate that she pushed the appreciate that she pushed the appreciate that she pushed the healthcare and catastrophic unforeseen healthcare and catastrophic unforeseen healthcare and catastrophic unforeseen issues that could arise with such a big issues that could arise with such a big issues that could arise with such a big time frame with fire I don't agree with time frame with fire I don't agree with time frame with fire I don't agree with everything she said but she had a good everything she said but she had a good everything she said but she had a good point Thank You Luna for sharing that point Thank You Luna for sharing that point Thank You Luna for sharing that mr. prairie fire from Canada says I mr. prairie fire from Canada says I mr. prairie fire from Canada says I found it interesting little disappointed found it interesting little disappointed found it interesting little disappointed with the ad hominem attacks of Suze with the ad hominem attacks of Suze with the ad hominem attacks of Suze Orman instead of challenging her Orman instead of challenging her Orman instead of challenging her arguments kudos to afford anything for arguments kudos to afford anything for arguments kudos to afford anything for the interview and the guts to put this the interview and the guts to put this the interview and the guts to put this out there once again she does the fire out there once again she does the fire out there once again she does the fire community a great service Thank You mr. community a great service Thank You mr. community a great service Thank You mr. prairie fire MS money nerd says I really prairie fire MS money nerd says I really prairie fire MS money nerd says I really enjoyed this interview and how it enjoyed this interview and how it enjoyed this interview and how it challenged a lot of the ideas the fire challenged a lot of the ideas the fire challenged a lot of the ideas the fire community takes for granted I don't community takes for granted I don't community takes for granted I don't agree with everything said but I do agree with everything said but I do agree with everything said but I do think there are something in the think there are something in the think there are something in the unexpected costs that come with age unexpected costs that come with age unexpected costs that come with age which are often underestimated and the which are often underestimated and the which are often underestimated and the perspective after do you see what I perspective after do you see what I perspective after do you see what I mean how impressed I am about the mean how impressed I am about the mean how impressed I am about the intellectual caliber of this intellectual caliber of this intellectual caliber of this audience I mean you were able to take audience I mean you were able to take audience I mean you were able to take this I hate it I hate it I hate it you this I hate it I hate it I hate it you this I hate it I hate it I hate it you were able to look past that and find the were able to look past that and find the were able to look past that and find the kernel of truth find the wisdom kernel of truth find the wisdom kernel of truth find the wisdom underneath it as hard as that might be underneath it as hard as that might be underneath it as hard as that might be to dig up that is the mark of a wise to dig up that is the mark of a wise to dig up that is the mark of a wise mature intelligent community I'm so mature intelligent community I'm so mature intelligent community I'm so impressed with this community in fact if impressed with this community in fact if impressed with this community in fact if I have one key takeaway from this entire I have one key takeaway from this entire I have one key takeaway from this entire episode it's the you guys are awesome episode it's the you guys are awesome episode it's the you guys are awesome let's cover more of the feedback this let's cover more of the feedback this let's cover more of the feedback this one comes from Graham Dursley on one comes from Graham Dursley on one comes from Graham Dursley on Facebook who says she does have a decent Facebook who says she does have a decent Facebook who says she does have a decent point about the ultra frugal ists point about the ultra frugal ists point about the ultra frugal ists retiring at with , and planning retiring at with , and planning retiring at with , and planning to live indefinitely off of k not a to live indefinitely off of k not a to live indefinitely off of k not a lot of room there for error but I also lot of room there for error but I also lot of room there for error but I also agree with Paula agree with Paula agree with Paula it seems Suze does not have a nuanced it seems Suze does not have a nuanced it seems Suze does not have a nuanced understanding of fire she definitely understanding of fire she definitely understanding of fire she definitely contradicted herself when she said an contradicted herself when she said an contradicted herself when she said an early retiree would struggle to get by early retiree would struggle to get by early retiree would struggle to get by on a TK but then was very optimistic on a TK but then was very optimistic on a TK but then was very optimistic about the K a year laborer doing just about the K a year laborer doing just about the K a year laborer doing just fine as long as they work until age fine as long as they work until age fine as long as they work until age yeah I agree there was a massive yeah I agree there was a massive yeah I agree there was a massive contradiction in her person a compared contradiction in her person a compared contradiction in her person a compared to person B example on one hand she was to person B example on one hand she was to person B example on one hand she was cautioning that you can't retire with cautioning that you can't retire with cautioning that you can't retire with anything less than to million anything less than to million anything less than to million dollars and then on the other hand she dollars and then on the other hand she dollars and then on the other hand she was also stating that you could be a was also stating that you could be a was also stating that you could be a laborer and have a median u.s. income laborer and have a median u.s. income laborer and have a median u.s. income and as long as you live below your means and as long as you live below your means and as long as you live below your means you'll be okay like the two ideas just you'll be okay like the two ideas just you'll be okay like the two ideas just did not jive how is it that the did not jive how is it that the did not jive how is it that the blue-collar worker who lives below their blue-collar worker who lives below their blue-collar worker who lives below their means can have a secure retirement but means can have a secure retirement but means can have a secure retirement but the early retiree needs , in case the early retiree needs , in case the early retiree needs , in case the floods come anyway I'm the floods come anyway I'm the floods come anyway I'm editorializing so let's take it back to editorializing so let's take it back to editorializing so let's take it back to community responses community reaction community responses community reaction community responses community reaction here's one that came on the podcast show here's one that came on the podcast show here's one that came on the podcast show notes from Mary who says awesome podcast notes from Mary who says awesome podcast notes from Mary who says awesome podcast Paula thanks for taking a risk and Paula thanks for taking a risk and Paula thanks for taking a risk and bringing on a contrarian to the fire bringing on a contrarian to the fire bringing on a contrarian to the fire movement movement movement is it just me or did it sound like Suzy is it just me or did it sound like Suzy is it just me or did it sound like Suzy agrees with many of the tenants of fire agrees with many of the tenants of fire agrees with many of the tenants of fire I heard her say things like be sure to I heard her say things like be sure to I heard her say things like be sure to max out your retirement savings vehicles max out your retirement savings vehicles max out your retirement savings vehicles do something you love consider do something you love consider do something you love consider unexpected expenses considered unexpected expenses considered unexpected expenses considered disability insurance and long-term care disability insurance and long-term care disability insurance and long-term care and how those things may affect your and how those things may affect your and how those things may affect your finances all of the points she made were finances all of the points she made were finances all of the points she made were things that I take carefully into things that I take carefully into things that I take carefully into consideration when planning a fire consideration when planning a fire consideration when planning a fire number and date I will say the number and date I will say the number and date I will say the fear-mongering was laid on a bit thick fear-mongering was laid on a bit thick fear-mongering was laid on a bit thick but she does have her own brand and but she does have her own brand and but she does have her own brand and product to promote and I do appreciate product to promote and I do appreciate product to promote and I do appreciate the added insight from someone who is the added insight from someone who is the added insight from someone who is not only at a different point in her own not only at a different point in her own not only at a different point in her own life but has had the opportunity to hear life but has had the opportunity to hear life but has had the opportunity to hear from so many others having said all this from so many others having said all this from so many others having said all this the podcast has had an effect on me I the podcast has had an effect on me I the podcast has had an effect on me I will definitely continue to grow assets will definitely continue to grow assets will definitely continue to grow assets beyond fire Wow Mary thank you do you beyond fire Wow Mary thank you do you beyond fire Wow Mary thank you do you see why I'm so impressed with this see why I'm so impressed with this see why I'm so impressed with this community also on the podcast show notes community also on the podcast show notes community also on the podcast show notes AJ says quote I am the money matriarch AJ says quote I am the money matriarch AJ says quote I am the money matriarch of the world I used to watch her show of the world I used to watch her show of the world I used to watch her show every week and I've read one of her every week and I've read one of her every week and I've read one of her books she definitely wasn't my favorite books she definitely wasn't my favorite books she definitely wasn't my favorite money person but I liked her show enough money person but I liked her show enough money person but I liked her show enough to watch it I didn't like the book but to watch it I didn't like the book but to watch it I didn't like the book but she just seemed completely out of touch she just seemed completely out of touch she just seemed completely out of touch and full of herself and full of herself and full of herself in this interview even condescending and in this interview even condescending and in this interview even condescending and as someone else already pointed out she as someone else already pointed out she as someone else already pointed out she was using fear as a motivator and was was using fear as a motivator and was was using fear as a motivator and was just generally pushing her brand and just generally pushing her brand and just generally pushing her brand and self the whole interview AJ continues self the whole interview AJ continues self the whole interview AJ continues while I agree that one needs to be while I agree that one needs to be while I agree that one needs to be prepared for such things in life and prepared for such things in life and prepared for such things in life and unexpected things will happen unexpected things will happen unexpected things will happen parenthesis I have chronic illness and a parenthesis I have chronic illness and a parenthesis I have chronic illness and a disabled sibling so I get it that fear disabled sibling so I get it that fear disabled sibling so I get it that fear shouldn't rule your life and life isn't shouldn't rule your life and life isn't shouldn't rule your life and life isn't all about money all about money all about money my health problems are actually one of my health problems are actually one of my health problems are actually one of the reasons we are into fire I know I the reasons we are into fire I know I the reasons we are into fire I know I may not always be able to work full time may not always be able to work full time may not always be able to work full time and that led to my husband and I not and that led to my husband and I not and that led to my husband and I not wanting to be dependent on our incomes I wanting to be dependent on our incomes I wanting to be dependent on our incomes I still want to work of course and plan to still want to work of course and plan to still want to work of course and plan to but I want the security of knowing we'll but I want the security of knowing we'll but I want the security of knowing we'll be okay if I can't for a while or if I be okay if I can't for a while or if I be okay if I can't for a while or if I need to cut back so I think she's got it need to cut back so I think she's got it need to cut back so I think she's got it completely backwards a lot of fire completely backwards a lot of fire completely backwards a lot of fire people have absolutely thought of those people have absolutely thought of those people have absolutely thought of those things had I not had health issues I things had I not had health issues I things had I not had health issues I seriously doubt we would have gone down seriously doubt we would have gone down seriously doubt we would have gone down this path other motivators for me are this path other motivators for me are this path other motivators for me are being able to have children and actually being able to have children and actually being able to have children and actually spend time with them and to be able to spend time with them and to be able to spend time with them and to be able to help my disabled sibling and be there help my disabled sibling and be there help my disabled sibling and be there for him and I would guess that most for him and I would guess that most for him and I would guess that most people that are into fire have similar people that are into fire have similar people that are into fire have similar reasons and stressors that pushed them reasons and stressors that pushed them reasons and stressors that pushed them to wanting financial freedom AJ that was to wanting financial freedom AJ that was to wanting financial freedom AJ that was so beautifully said thank you thank you so beautifully said thank you thank you so beautifully said thank you thank you meanwhile Peter G says Paula I've been meanwhile Peter G says Paula I've been meanwhile Peter G says Paula I've been listening to your show for a while and I listening to your show for a while and I listening to your show for a while and I thought I loved it boy was I wrong I had thought I loved it boy was I wrong I had thought I loved it boy was I wrong I had no idea that matriarch of money was out no idea that matriarch of money was out no idea that matriarch of money was out there she is now my queen and she will there she is now my queen and she will there she is now my queen and she will surely lead me to the promised land surely lead me to the promised land surely lead me to the promised land don't get me wrong don't get me wrong don't get me wrong new shows cute but her friends have new shows cute but her friends have new shows cute but her friends have billions and billions and billions of billions and billions and billions of billions and billions and billions of dollars I would buy her books as soon as dollars I would buy her books as soon as dollars I would buy her books as soon as I stopped typing I will brand my chest I stopped typing I will brand my chest I stopped typing I will brand my chest with an S for Suzy my new aim in life is with an S for Suzy my new aim in life is with an S for Suzy my new aim in life is to find her and lick her toes that I to find her and lick her toes that I to find her and lick her toes that I gathered from the show is what she gathered from the show is what she gathered from the show is what she expects from your old listeners her new expects from your old listeners her new expects from your old listeners her new readers are jokes aside I really enjoyed readers are jokes aside I really enjoyed readers are jokes aside I really enjoyed this episode thanks to Suzy for coming this episode thanks to Suzy for coming this episode thanks to Suzy for coming on the show something I'd love to ask on the show something I'd love to ask on the show something I'd love to ask her is what dollar value she would put her is what dollar value she would put her is what dollar value she would put on a year of her life in her s if she on a year of her life in her s if she on a year of her life in her s if she could buy back a year of -year old could buy back a year of -year old could buy back a year of -year old health would she and for how much Peter health would she and for how much Peter health would she and for how much Peter that was amazing I'm giving you a high that was amazing I'm giving you a high that was amazing I'm giving you a high five through the airwaves right now the five through the airwaves right now the five through the airwaves right now the highest of fives also on the podcast highest of fives also on the podcast highest of fives also on the podcast show notes Dave accidental fire says so show notes Dave accidental fire says so show notes Dave accidental fire says so for people who have two million saved for people who have two million saved for people who have two million saved and want to retire early things happen and want to retire early things happen and want to retire early things happen and you won't be ready for it but the and you won't be ready for it but the and you won't be ready for it but the median net worth of those people aged median net worth of those people aged median net worth of those people aged to is about $, so what about to is about $, so what about to is about $, so what about those folks well I'll tell you Susie fi those folks well I'll tell you Susie fi those folks well I'll tell you Susie fi folks are times better able to handle folks are times better able to handle folks are times better able to handle that disaster so what she's saying is that disaster so what she's saying is that disaster so what she's saying is that everyone might not be prepared when that everyone might not be prepared when that everyone might not be prepared when disaster happens well life is risk Susie disaster happens well life is risk Susie disaster happens well life is risk Susie every time you get in a car on the road every time you get in a car on the road every time you get in a car on the road you are seriously risking your life you are seriously risking your life you are seriously risking your life should we not drive on Instagram should we not drive on Instagram should we not drive on Instagram Becky Neubauer says Paula thanks for Becky Neubauer says Paula thanks for Becky Neubauer says Paula thanks for asking good questions and for keeping asking good questions and for keeping asking good questions and for keeping the conversation going I can see how the conversation going I can see how the conversation going I can see how this interview might have been a tough this interview might have been a tough this interview might have been a tough one for you I actually said Wow out loud one for you I actually said Wow out loud one for you I actually said Wow out loud at the same time of you after one of her at the same time of you after one of her at the same time of you after one of her particularly strongly worded points I particularly strongly worded points I particularly strongly worded points I did want to point out the hypocrisy of did want to point out the hypocrisy of did want to point out the hypocrisy of her adamantly stating anything can her adamantly stating anything can her adamantly stating anything can happen you just don't know you could get happen you just don't know you could get happen you just don't know you could get hit by a bus tomorrow but also hit by a bus tomorrow but also hit by a bus tomorrow but also vehemently arguing that it is a waste of vehemently arguing that it is a waste of vehemently arguing that it is a waste of time for anyone to take time off in time for anyone to take time off in time for anyone to take time off in their s to take a trip or learn about their s to take a trip or learn about their s to take a trip or learn about themselves when they should be working themselves when they should be working themselves when they should be working hard and saving I feel the opposite if I hard and saving I feel the opposite if I hard and saving I feel the opposite if I could get hit by a bus tomorrow I don't could get hit by a bus tomorrow I don't could get hit by a bus tomorrow I don't want to spend today chained to a cubicle want to spend today chained to a cubicle want to spend today chained to a cubicle hating every second of my life I'd hating every second of my life I'd hating every second of my life I'd rather actually live because as Susie rather actually live because as Susie rather actually live because as Susie says you never know what's going to says you never know what's going to says you never know what's going to happen like your two favorite quotes happen like your two favorite quotes happen like your two favorite quotes Paula life is short and life is long in Paula life is short and life is long in Paula life is short and life is long in the end I think it all comes down to the end I think it all comes down to the end I think it all comes down to balance Becky that's a great insight balance Becky that's a great insight balance Becky that's a great insight because Susie did make both of those because Susie did make both of those because Susie did make both of those statements she did say anything can statements she did say anything can statements she did say anything can happen a catastrophe can strike at any happen a catastrophe can strike at any happen a catastrophe can strike at any moment and she also said don't travel in moment and she also said don't travel in moment and she also said don't travel in your s or s don't go live in a van your s or s don't go live in a van your s or s don't go live in a van and tour the national parks don't go and tour the national parks don't go and tour the national parks don't go backpacking around the world don't go do backpacking around the world don't go do backpacking around the world don't go do all of these things that you really want all of these things that you really want all of these things that you really want to do because it's more important to to do because it's more important to to do because it's more important to work and save and compile a bunch of work and save and compile a bunch of work and save and compile a bunch of compounding interest that's true she compounding interest that's true she compounding interest that's true she made both of those statements a few made both of those statements a few made both of those statements a few other comments that I'd like to share on other comments that I'd like to share on other comments that I'd like to share on Facebook William Dwight says I'm half Facebook William Dwight says I'm half Facebook William Dwight says I'm half way through it and Wow way through it and Wow way through it and Wow all say peacock feathers all say peacock feathers all say peacock feathers Paula does a masterful job of conducting Paula does a masterful job of conducting Paula does a masterful job of conducting this interview with calm respect on the this interview with calm respect on the this interview with calm respect on the other hand there Susie not sure if I've other hand there Susie not sure if I've other hand there Susie not sure if I've heard anyone come off so condescending heard anyone come off so condescending heard anyone come off so condescending close-minded conceited and pessimistic close-minded conceited and pessimistic close-minded conceited and pessimistic the irony is that so many of the habits the irony is that so many of the habits the irony is that so many of the habits Susie extols are perfectly consistent Susie extols are perfectly consistent Susie extols are perfectly consistent with fire with fire with fire Susie raises some good food for thought Susie raises some good food for thought Susie raises some good food for thought around disability and health insurance around disability and health insurance around disability and health insurance otherwise you think she'd embraced the otherwise you think she'd embraced the otherwise you think she'd embraced the values of the fire movement it's pretty values of the fire movement it's pretty values of the fire movement it's pretty sad sad sad it's definitely good radio but morning it's definitely good radio but morning it's definitely good radio but morning you may find yourself punching your you may find yourself punching your you may find yourself punching your radio while listening on Twitter radio while listening on Twitter radio while listening on Twitter mr. burrito bowl which by the way is an mr. burrito bowl which by the way is an mr. burrito bowl which by the way is an awesome Twitter name mr. burrito bowl awesome Twitter name mr. burrito bowl awesome Twitter name mr. burrito bowl says afford anything did a great job at says afford anything did a great job at says afford anything did a great job at not losing her cool at Suze Orman's not losing her cool at Suze Orman's not losing her cool at Suze Orman's condescending tone yes she made good condescending tone yes she made good condescending tone yes she made good points about health insurance etc but points about health insurance etc but points about health insurance etc but she acted like she's the first one to she acted like she's the first one to she acted like she's the first one to think of that literally everyone think of that literally everyone think of that literally everyone pursuing Fi has thought about health pursuing Fi has thought about health pursuing Fi has thought about health care costs which is an excellent point care costs which is an excellent point care costs which is an excellent point and being determined on Twitter also and being determined on Twitter also and being determined on Twitter also echoed that by saying I think Paula echoed that by saying I think Paula echoed that by saying I think Paula explained very well what the fire explained very well what the fire explained very well what the fire movement is all about at the end of the movement is all about at the end of the movement is all about at the end of the show but I heard from Suze Orman is that show but I heard from Suze Orman is that show but I heard from Suze Orman is that she doesn't understand how the fire she doesn't understand how the fire she doesn't understand how the fire advocates manage risk at every stage of advocates manage risk at every stage of advocates manage risk at every stage of their lives that's absolutely true and their lives that's absolutely true and their lives that's absolutely true and that includes as somebody pointed out that includes as somebody pointed out that includes as somebody pointed out earlier that includes managing the risk earlier that includes managing the risk earlier that includes managing the risk of not being able to live the life you of not being able to live the life you of not being able to live the life you want in your s due to either family want in your s due to either family want in your s due to either family obligations or health considerations we obligations or health considerations we obligations or health considerations we are or due to the risk that some of us are or due to the risk that some of us are or due to the risk that some of us might not make it to our s by virtue might not make it to our s by virtue might not make it to our s by virtue of living in the way that we want today of living in the way that we want today of living in the way that we want today we are managing the risk of the complete we are managing the risk of the complete we are managing the risk of the complete unknown of the tomorrow unknown of the tomorrow unknown of the tomorrow now risk isn't only monetary you can do now risk isn't only monetary you can do now risk isn't only monetary you can do anything but not everything and that anything but not everything and that anything but not everything and that includes your time includes your time includes your time your focus your attention your focus your attention your focus your attention so I absolutely agree with Suzy about so I absolutely agree with Suzy about so I absolutely agree with Suzy about the importance of managing risk and that the importance of managing risk and that the importance of managing risk and that includes the risk that our future is includes the risk that our future is includes the risk that our future is unknown we might not make it to the age unknown we might not make it to the age unknown we might not make it to the age at which we hope to make it to that's at which we hope to make it to that's at which we hope to make it to that's why I often say that I believe in why I often say that I believe in why I often say that I believe in retiring both early and often retiring both early and often retiring both early and often I believe in enjoying little mini I believe in enjoying little mini I believe in enjoying little mini retirements before you're financially retirements before you're financially retirements before you're financially independent take sabbaticals take breaks independent take sabbaticals take breaks independent take sabbaticals take breaks before you reach fi take mini before you reach fi take mini before you reach fi take mini retirements on your way to an early retirements on your way to an early retirements on your way to an early retirement because if you're starting retirement because if you're starting retirement because if you're starting your fi journey today well guess what your fi journey today well guess what your fi journey today well guess what ten years from now everything might be ten years from now everything might be ten years from now everything might be different it's funny because when Suzy different it's funny because when Suzy different it's funny because when Suzy says that it does come off sounding to says that it does come off sounding to says that it does come off sounding to many people like fear-mongering when I many people like fear-mongering when I many people like fear-mongering when I say it I mean it as a message of hope we say it I mean it as a message of hope we say it I mean it as a message of hope we truly do not know how much time we've truly do not know how much time we've truly do not know how much time we've been granted and that means that it is been granted and that means that it is been granted and that means that it is critical that we enjoy our todays enjoy critical that we enjoy our todays enjoy critical that we enjoy our todays enjoy the journey to fi fi is not a the journey to fi fi is not a the journey to fi fi is not a destination enjoy the entire unfolding destination enjoy the entire unfolding destination enjoy the entire unfolding of it enjoy the process when you go of it enjoy the process when you go of it enjoy the process when you go hiking you don't slog through the entire hiking you don't slog through the entire hiking you don't slog through the entire hike just so you can make it to the hike just so you can make it to the hike just so you can make it to the mountaintop you enjoy the whole hike you mountaintop you enjoy the whole hike you mountaintop you enjoy the whole hike you enjoy every step that gets you there the enjoy every step that gets you there the enjoy every step that gets you there the fact that you happen to summit you fact that you happen to summit you fact that you happen to summit you happen to reach the peak is nice but if happen to reach the peak is nice but if happen to reach the peak is nice but if you had to turn around before you reach you had to turn around before you reach you had to turn around before you reach the mountaintop you would still have the mountaintop you would still have the mountaintop you would still have enjoyed the hike that's the journey to enjoyed the hike that's the journey to enjoyed the hike that's the journey to fi and that is the journey through life fi and that is the journey through life fi and that is the journey through life so please retire early retire often the so please retire early retire often the so please retire early retire often the fact is that the future is unknown and fact is that the future is unknown and fact is that the future is unknown and that can either be a cause for fear or that can either be a cause for fear or that can either be a cause for fear or an inspiration to celebrate I'd like to an inspiration to celebrate I'd like to an inspiration to celebrate I'd like to share with you a quote that I read share with you a quote that I read share with you a quote that I read yesterday it's a quote from a year yesterday it's a quote from a year yesterday it's a quote from a year old novelist named Erica Zhang she says old novelist named Erica Zhang she says old novelist named Erica Zhang she says if you don't risk anything you risk even if you don't risk anything you risk even if you don't risk anything you risk even more if you don't risk anything you more if you don't risk anything you more if you don't risk anything you even more that is my answer to Susie's even more that is my answer to Susie's even more that is my answer to Susie's position about risk mitigation I agree position about risk mitigation I agree position about risk mitigation I agree let's manage some risk as an interviewer let's manage some risk as an interviewer let's manage some risk as an interviewer there are a few notes and observations there are a few notes and observations there are a few notes and observations that I've made during this experience that I've made during this experience that I've made during this experience number one according to the feedback number one according to the feedback number one according to the feedback that I got about % of the feedback I that I got about % of the feedback I that I got about % of the feedback I received was praise from people who said received was praise from people who said received was praise from people who said that they liked my calm professional and that they liked my calm professional and that they liked my calm professional and patient manner in fact I got a great patient manner in fact I got a great patient manner in fact I got a great tweet from a Twitter feed called tweet from a Twitter feed called tweet from a Twitter feed called international podcast day that said Wow international podcast day that said Wow international podcast day that said Wow want to see a podcast host navigate a want to see a podcast host navigate a want to see a podcast host navigate a difficult situation check out a Ford difficult situation check out a Ford difficult situation check out a Ford anythings latest episode amazing work anythings latest episode amazing work anythings latest episode amazing work palo hashtag podcasting thank you so % palo hashtag podcasting thank you so % palo hashtag podcasting thank you so % of the remarks that I got were people of the remarks that I got were people of the remarks that I got were people saying thank you for handling it in such saying thank you for handling it in such saying thank you for handling it in such a calm manner in such a professional a calm manner in such a professional a calm manner in such a professional manner thank you for being patient but I manner thank you for being patient but I manner thank you for being patient but I did get some feedback from people who did get some feedback from people who did get some feedback from people who said I would have liked it if you had said I would have liked it if you had said I would have liked it if you had argued with her I wanted a debate argued with her I wanted a debate argued with her I wanted a debate I did not want your facilitation there I did not want your facilitation there I did not want your facilitation there were people who said that they wanted me were people who said that they wanted me were people who said that they wanted me to explain slash debate fire with Susie to explain slash debate fire with Susie to explain slash debate fire with Susie I get that I get the desire for a debate I get that I get the desire for a debate I get that I get the desire for a debate I get that that is what is most commonly I get that that is what is most commonly I get that that is what is most commonly done on a lot of cable news shows but done on a lot of cable news shows but done on a lot of cable news shows but that's not me that's not me that's not me I don't like to interrupt people I don't I don't like to interrupt people I don't I don't like to interrupt people I don't like to cut people off and rather than like to cut people off and rather than like to cut people off and rather than debate somebody I like to ask probing debate somebody I like to ask probing debate somebody I like to ask probing questions remember I'm a journalist my questions remember I'm a journalist my questions remember I'm a journalist my background is a newspaper reporter I background is a newspaper reporter I background is a newspaper reporter I like to ask questions and listen I don't like to ask questions and listen I don't like to ask questions and listen I don't like to fight I would prefer to deeply like to fight I would prefer to deeply like to fight I would prefer to deeply understand another person's perspective understand another person's perspective understand another person's perspective and one observation that I've made as a and one observation that I've made as a and one observation that I've made as a result of this interview is that Fame result of this interview is that Fame result of this interview is that Fame and power can give a person carte and power can give a person carte and power can give a person carte blanche to act in ways that a different blanche to act in ways that a different blanche to act in ways that a different person who could not and I realized that person who could not and I realized that person who could not and I realized that sounds like it's like straight from the sounds like it's like straight from the sounds like it's like straight from the school school school duh like oh gee Paulo you're saying Fame duh like oh gee Paulo you're saying Fame duh like oh gee Paulo you're saying Fame and power give people additional and power give people additional and power give people additional privileges fascinating tell me more privileges fascinating tell me more privileges fascinating tell me more but if you think about it the tone the but if you think about it the tone the but if you think about it the tone the tenor of Susie's remarks about the fire tenor of Susie's remarks about the fire tenor of Susie's remarks about the fire community were made more acceptable by community were made more acceptable by community were made more acceptable by the fact that she's one of the most well the fact that she's one of the most well the fact that she's one of the most well known personal finance voices on the known personal finance voices on the known personal finance voices on the planet there are very few people more planet there are very few people more planet there are very few people more famous than her in the world of personal famous than her in the world of personal famous than her in the world of personal finance and money management and that finance and money management and that finance and money management and that gives her the power to come on a podcast gives her the power to come on a podcast gives her the power to come on a podcast and speak in a tone that would not be and speak in a tone that would not be and speak in a tone that would not be tolerated by a lot of other people tolerated by a lot of other people tolerated by a lot of other people imagine if Emma who was a previous guest imagine if Emma who was a previous guest imagine if Emma who was a previous guest on this podcast imagine if she came on on this podcast imagine if she came on on this podcast imagine if she came on the podcast and spoke in that tone that the podcast and spoke in that tone that the podcast and spoke in that tone that wouldn't fly if a lesser-known person wouldn't fly if a lesser-known person wouldn't fly if a lesser-known person says that they hate the fire movement says that they hate the fire movement says that they hate the fire movement that's trolling but when a celebrity that's trolling but when a celebrity that's trolling but when a celebrity does it that's a headline so in does it that's a headline so in does it that's a headline so in reflecting on the week that was one reflecting on the week that was one reflecting on the week that was one thing that struck me and that leads to thing that struck me and that leads to thing that struck me and that leads to an observation that my friend JD Roth an observation that my friend JD Roth an observation that my friend JD Roth made here's what he wrote on his blog made here's what he wrote on his blog made here's what he wrote on his blog get rich slowly in response to the get rich slowly in response to the get rich slowly in response to the interview and I'm quoting quote while a interview and I'm quoting quote while a interview and I'm quoting quote while a lot of folks are focusing on the content lot of folks are focusing on the content lot of folks are focusing on the content of Susie's comments what I find of Susie's comments what I find of Susie's comments what I find fascinating is what her comments fascinating is what her comments fascinating is what her comments represent why do you think Suze hates represent why do you think Suze hates represent why do you think Suze hates the fire movement somebody asked me last the fire movement somebody asked me last the fire movement somebody asked me last Thursday night parentheses a few of us Thursday night parentheses a few of us Thursday night parentheses a few of us knew this interview was coming and we knew this interview was coming and we knew this interview was coming and we knew what was going to be said we could knew what was going to be said we could knew what was going to be said we could guess what the audience reaction would guess what the audience reaction would guess what the audience reaction would be I think she feels threatened be I think she feels threatened be I think she feels threatened I said Susie represents not only the old I said Susie represents not only the old I said Susie represents not only the old financial media but also the world of financial media but also the world of financial media but also the world of traditional financial advice the fire traditional financial advice the fire traditional financial advice the fire movement is an organic thing one that's movement is an organic thing one that's movement is an organic thing one that's being led by bloggers and podcasters and being led by bloggers and podcasters and being led by bloggers and podcasters and youtubers and a big part of our platform youtubers and a big part of our platform youtubers and a big part of our platform is that you can do this yourself that is that you can do this yourself that is that you can do this yourself that you don't need help from the Suze you don't need help from the Suze you don't need help from the Suze Orman's of the world end quote Orman's of the world end quote Orman's of the world end quote and so what he's saying there in that and so what he's saying there in that and so what he's saying there in that snippet from his blog post is that snippet from his blog post is that snippet from his blog post is that possibly the fire movement might be possibly the fire movement might be possibly the fire movement might be threatening to the establishment I don't threatening to the establishment I don't threatening to the establishment I don't know I don't know if it is I'm not gonna know I don't know if it is I'm not gonna know I don't know if it is I'm not gonna speculate I'm not gonna put thoughts or speculate I'm not gonna put thoughts or speculate I'm not gonna put thoughts or ideas into people's heads again I'm a ideas into people's heads again I'm a ideas into people's heads again I'm a I'm a question asker because that's I'm a question asker because that's I'm a question asker because that's where learning comes from learning comes where learning comes from learning comes where learning comes from learning comes from asking questions and as I've stated from asking questions and as I've stated from asking questions and as I've stated before on this podcast my purpose in before on this podcast my purpose in before on this podcast my purpose in life is to learn the more you're talking life is to learn the more you're talking life is to learn the more you're talking the less you're listening which I the less you're listening which I the less you're listening which I realize is an ironic thing to say after realize is an ironic thing to say after realize is an ironic thing to say after you've been talking to yourself into a you've been talking to yourself into a you've been talking to yourself into a microphone in an empty room for an hour microphone in an empty room for an hour microphone in an empty room for an hour but you get my drift but you get my drift but you get my drift you know to be perfectly honest when I you know to be perfectly honest when I you know to be perfectly honest when I got off that Skype call I was shaking my got off that Skype call I was shaking my got off that Skype call I was shaking my hands were literally shaking and I was hands were literally shaking and I was hands were literally shaking and I was so full of adrenaline that I didn't know so full of adrenaline that I didn't know so full of adrenaline that I didn't know what to do I got up and I paced around what to do I got up and I paced around what to do I got up and I paced around my condo like kind of like a dog that my condo like kind of like a dog that my condo like kind of like a dog that really needs to go for a walk I was just really needs to go for a walk I was just really needs to go for a walk I was just pacing in circles around my living room pacing in circles around my living room pacing in circles around my living room and I texted Joe from stacking benjamins and I texted Joe from stacking benjamins and I texted Joe from stacking benjamins and then I went on Facebook and I wrote and then I went on Facebook and I wrote and then I went on Facebook and I wrote a post that was almost incoherent that a post that was almost incoherent that a post that was almost incoherent that it was basically just me writing into it was basically just me writing into it was basically just me writing into Facebook the word Wow over and over like Facebook the word Wow over and over like Facebook the word Wow over and over like times or I was like wow this times or I was like wow this times or I was like wow this interview I just recorded it and Wow interview I just recorded it and Wow interview I just recorded it and Wow oh my goodness I want to release this I oh my goodness I want to release this I oh my goodness I want to release this I don't have anything to say because I don't have anything to say because I don't have anything to say because I just Wow just Wow just Wow I wrote this incredibly incoherent I wrote this incredibly incoherent I wrote this incredibly incoherent Facebook post and then put that down and Facebook post and then put that down and Facebook post and then put that down and continued shaking and pacing around my continued shaking and pacing around my continued shaking and pacing around my condo it was hard to record it was is condo it was hard to record it was is condo it was hard to record it was is sometimes it is really hard to ask sometimes it is really hard to ask sometimes it is really hard to ask questions with an open mind it's a value questions with an open mind it's a value questions with an open mind it's a value of mine but values are sometimes of mine but values are sometimes of mine but values are sometimes different than actions you know I know different than actions you know I know different than actions you know I know that for many of you it was hard to that for many of you it was hard to that for many of you it was hard to listen to Elena listen to Elena listen to Elena left to comment on the blog that said left to comment on the blog that said left to comment on the blog that said that was rough I made it halfway through that was rough I made it halfway through that was rough I made it halfway through the interview and I couldn't listen the interview and I couldn't listen the interview and I couldn't listen anymore Elena thank you I I completely anymore Elena thank you I I completely anymore Elena thank you I I completely understand understand understand Susan FII Diaz says Paula I applaud you Susan FII Diaz says Paula I applaud you Susan FII Diaz says Paula I applaud you and your patient and your patient and your patient for hosting someone that most of us for hosting someone that most of us for hosting someone that most of us disagree with I find that refreshing in disagree with I find that refreshing in disagree with I find that refreshing in our divisive world you were so kind I our divisive world you were so kind I our divisive world you were so kind I could not have had the discipline to not could not have had the discipline to not could not have had the discipline to not pounce and yet I believe you simply gave pounce and yet I believe you simply gave pounce and yet I believe you simply gave her enough rope to hang herself living her enough rope to hang herself living her enough rope to hang herself living on and yes I did on and yes I did on and yes I did living on an island clearly she is living on an island clearly she is living on an island clearly she is clueless of the true genius of the clueless of the true genius of the clueless of the true genius of the shared ideas in the FI community we are shared ideas in the FI community we are shared ideas in the FI community we are so aware of the pitfalls and possible so aware of the pitfalls and possible so aware of the pitfalls and possible emergencies in our future and our acting emergencies in our future and our acting emergencies in our future and our acting much much more responsibly than most much much more responsibly than most much much more responsibly than most other people in society yes I absolutely other people in society yes I absolutely other people in society yes I absolutely agree with that I think one of the most agree with that I think one of the most agree with that I think one of the most refreshing things about the FI community refreshing things about the FI community refreshing things about the FI community is how deliberately we think through our is how deliberately we think through our is how deliberately we think through our finances and our lives finances and our lives finances and our lives Samantha cook says hi Paula thanks for Samantha cook says hi Paula thanks for Samantha cook says hi Paula thanks for having the courage to have a dissenting having the courage to have a dissenting having the courage to have a dissenting viewpoint on your podcast I like most viewpoint on your podcast I like most viewpoint on your podcast I like most other fire peeps disagree vociferously other fire peeps disagree vociferously other fire peeps disagree vociferously with Susie's under-informed take on the with Susie's under-informed take on the with Susie's under-informed take on the fire movement and also found her fire movement and also found her fire movement and also found her relentless self aggrandizing relentless self aggrandizing relentless self aggrandizing off-putting however I agree that it's off-putting however I agree that it's off-putting however I agree that it's important for us to listen to viewpoints important for us to listen to viewpoints important for us to listen to viewpoints like hers because some of the echos very like hers because some of the echos very like hers because some of the echos very strongly the most common fears that keep strongly the most common fears that keep strongly the most common fears that keep others from embracing the sense of hope others from embracing the sense of hope others from embracing the sense of hope and empowerment that will lead them to and empowerment that will lead them to and empowerment that will lead them to fire her most salient and maybe really fire her most salient and maybe really fire her most salient and maybe really her only point is the very real her only point is the very real her only point is the very real possibility of long-term illness or possibility of long-term illness or possibility of long-term illness or catastrophic injury whether it be to catastrophic injury whether it be to catastrophic injury whether it be to ourselves to our loved ones or to our ourselves to our loved ones or to our ourselves to our loved ones or to our families I have to admit that does worry families I have to admit that does worry families I have to admit that does worry me somewhat as I look to create safety me somewhat as I look to create safety me somewhat as I look to create safety margins in my nest egg maybe we could margins in my nest egg maybe we could margins in my nest egg maybe we could have discussions about those things have discussions about those things have discussions about those things because as long as we live in the u.s. because as long as we live in the u.s. because as long as we live in the u.s. and that is something we need to plan and that is something we need to plan and that is something we need to plan for however I was a GOG at some of the for however I was a GOG at some of the for however I was a GOG at some of the figures she dropped , a month for figures she dropped , a month for figures she dropped , a month for her mother's care where is she putting her mother's care where is she putting her mother's care where is she putting her up Canyon Ranch , for a new her up Canyon Ranch , for a new her up Canyon Ranch , for a new roof sheesh obviously she's not roof sheesh obviously she's not roof sheesh obviously she's not economizing the way a seasoned economizing the way a seasoned economizing the way a seasoned a person would which takes a lot of a person would which takes a lot of a person would which takes a lot of credibility out of her claims still we credibility out of her claims still we credibility out of her claims still we all know that nursing home and long-term all know that nursing home and long-term all know that nursing home and long-term care costs can run up very high very care costs can run up very high very care costs can run up very high very quickly it's a shame that she doesn't quickly it's a shame that she doesn't quickly it's a shame that she doesn't understand that fire people are not understand that fire people are not understand that fire people are not necessarily looking to spend -plus necessarily looking to spend -plus necessarily looking to spend -plus years on the couch her short period of years on the couch her short period of years on the couch her short period of retirement seems to have a lot in common retirement seems to have a lot in common retirement seems to have a lot in common with that of regular Fi folk well man is with that of regular Fi folk well man is with that of regular Fi folk well man is the friggin private island of course a the friggin private island of course a the friggin private island of course a few years or months or whatever of rest few years or months or whatever of rest few years or months or whatever of rest rejuvenation and soul-searching and then rejuvenation and soul-searching and then rejuvenation and soul-searching and then back into something that you now know back into something that you now know back into something that you now know for certain you want to do that's the for certain you want to do that's the for certain you want to do that's the whole point really to have the choice whole point really to have the choice whole point really to have the choice whether to make money or not to have the whether to make money or not to have the whether to make money or not to have the time to figure yourself out and decide time to figure yourself out and decide time to figure yourself out and decide what is truly important to you Susie got what is truly important to you Susie got what is truly important to you Susie got to do that why can't the rest of us to do that why can't the rest of us to do that why can't the rest of us Thank You Samantha Thank You Samantha Thank You Samantha excellent beautiful point thank you one excellent beautiful point thank you one excellent beautiful point thank you one of my favorite remarks comes from BK who of my favorite remarks comes from BK who of my favorite remarks comes from BK who brought up a point that I almost brought brought up a point that I almost brought brought up a point that I almost brought up in the outro of the Suze Orman up in the outro of the Suze Orman up in the outro of the Suze Orman episode at the last minute I didn't want episode at the last minute I didn't want episode at the last minute I didn't want to include quotes in the outro of that to include quotes in the outro of that to include quotes in the outro of that episode in the in the key takeaways episode in the in the key takeaways episode in the in the key takeaways wrap-up but if I had this is what I wrap-up but if I had this is what I wrap-up but if I had this is what I would have brought up and BK brings this would have brought up and BK brings this would have brought up and BK brings this up in the comments on my blog BK says I up in the comments on my blog BK says I up in the comments on my blog BK says I especially loved a question you posed especially loved a question you posed especially loved a question you posed near the end after almost an hour of near the end after almost an hour of near the end after almost an hour of Susie going off about how crazy fire is Susie going off about how crazy fire is Susie going off about how crazy fire is and BK quotes that here but I'm just and BK quotes that here but I'm just and BK quotes that here but I'm just gonna play this quote for you gonna play this quote for you gonna play this quote for you because it's so perfect how do you know because it's so perfect how do you know because it's so perfect how do you know when you're secure you're secure when when you're secure you're secure when when you're secure you're secure when you really don't have to worry about if you really don't have to worry about if you really don't have to worry about if you have a job or you don't have a job you have a job or you don't have a job you have a job or you don't have a job you're absolutely fine no matter what you're absolutely fine no matter what you're absolutely fine no matter what can happen in your life when you're out can happen in your life when you're out can happen in your life when you're out of debt when you own your home out right of debt when you own your home out right of debt when you own your home out right when you're fine no matter what when you're fine no matter what when you're fine no matter what catastrophe comes your way so based on catastrophe comes your way so based on catastrophe comes your way so based on that quote is she in support of fi after that quote is she in support of fi after that quote is she in support of fi after all because that sure sounds an all all because that sure sounds an all all because that sure sounds an all a lot like Fi doesn't it BK pointed that a lot like Fi doesn't it BK pointed that a lot like Fi doesn't it BK pointed that out and thank you for pointing it out out and thank you for pointing it out out and thank you for pointing it out because I I was smiling when she said because I I was smiling when she said because I I was smiling when she said that finally I'd like to close out with that finally I'd like to close out with that finally I'd like to close out with this incredibly heartfelt note from a this incredibly heartfelt note from a this incredibly heartfelt note from a member of our community named bien way member of our community named bien way member of our community named bien way to go Paula this couldn't have been easy to go Paula this couldn't have been easy to go Paula this couldn't have been easy and yet you maintained with all the calm and yet you maintained with all the calm and yet you maintained with all the calm professionalism we would have liked to professionalism we would have liked to professionalism we would have liked to hear from Susie Susie's point to prepare hear from Susie Susie's point to prepare hear from Susie Susie's point to prepare for the worst is not a terrible one to for the worst is not a terrible one to for the worst is not a terrible one to begin a conversation and to that end I begin a conversation and to that end I begin a conversation and to that end I appreciate the policies that diverse appreciate the policies that diverse appreciate the policies that diverse opinions can be valuable and published opinions can be valuable and published opinions can be valuable and published the episode well my own parents who are the episode well my own parents who are the episode well my own parents who are her age did everything Susie's way it her age did everything Susie's way it her age did everything Susie's way it still didn't work dad worked his working still didn't work dad worked his working still didn't work dad worked his working years in a psychologically demanding years in a psychologically demanding years in a psychologically demanding career long hours never saw his kids career long hours never saw his kids career long hours never saw his kids only taking one vacation with us over only taking one vacation with us over only taking one vacation with us over plus years and spent every summer taking plus years and spent every summer taking plus years and spent every summer taking on long hour overtime shifts he on long hour overtime shifts he on long hour overtime shifts he stashed all the extra maxed out his stashed all the extra maxed out his stashed all the extra maxed out his retirement funds investments pension retirement funds investments pension retirement funds investments pension health insurance paid off the house all health insurance paid off the house all health insurance paid off the house all the stuff she says to do he worked the stuff she says to do he worked the stuff she says to do he worked endlessly but never reached her endlessly but never reached her endlessly but never reached her million a few brief years post million a few brief years post million a few brief years post retirement he was diagnosed with retirement he was diagnosed with retirement he was diagnosed with Alzheimer's when he ends up on full-time Alzheimer's when he ends up on full-time Alzheimer's when he ends up on full-time care that'll run a smooth $, a care that'll run a smooth $, a care that'll run a smooth $, a month added to their current expenses month added to their current expenses month added to their current expenses since mom has to live somewhere too in since mom has to live somewhere too in since mom has to live somewhere too in the current family home needless to say the current family home needless to say the current family home needless to say all those brutal years working and all those brutal years working and all those brutal years working and saving for the golden years didn't pay saving for the golden years didn't pay saving for the golden years didn't pay off playing it safe doing everything off playing it safe doing everything off playing it safe doing everything Susie would have suggested once they Susie would have suggested once they Susie would have suggested once they start paying for full-time care their start paying for full-time care their start paying for full-time care their accounts would dwindle away trying to be accounts would dwindle away trying to be accounts would dwindle away trying to be open-minded I listened to this episode open-minded I listened to this episode open-minded I listened to this episode thinking number one she's right that thinking number one she's right that thinking number one she's right that anything can happen and it does my anything can happen and it does my anything can happen and it does my family is living proof the longer you family is living proof the longer you family is living proof the longer you live the bigger chance that something live the bigger chance that something live the bigger chance that something unexpected unexpected unexpected rattles the best-laid plans number two rattles the best-laid plans number two rattles the best-laid plans number two however in all honesty dad's the reason however in all honesty dad's the reason however in all honesty dad's the reason why I do strive for Fi I've learned a why I do strive for Fi I've learned a why I do strive for Fi I've learned a lot through him about the value of time lot through him about the value of time lot through him about the value of time and quality of life I refuse to work and quality of life I refuse to work and quality of life I refuse to work like he did out of fear of not having like he did out of fear of not having like he did out of fear of not having enough and then not having enough anyway enough and then not having enough anyway enough and then not having enough anyway bien thank you for sharing that with the bien thank you for sharing that with the bien thank you for sharing that with the community because it so perfectly community because it so perfectly community because it so perfectly highlights exactly why fire matters it highlights exactly why fire matters it highlights exactly why fire matters it highlights that what we are doing is highlights that what we are doing is highlights that what we are doing is perhaps the most meaningful pursuit that perhaps the most meaningful pursuit that perhaps the most meaningful pursuit that anyone could possibly chase because what anyone could possibly chase because what anyone could possibly chase because what is more meaningful than recapturing the is more meaningful than recapturing the is more meaningful than recapturing the hours of your one precious short but hours of your one precious short but hours of your one precious short but long but short life thank you so much long but short life thank you so much long but short life thank you so much for joining me on this podcast my name for joining me on this podcast my name for joining me on this podcast my name is Paulo pant if you enjoyed this is Paulo pant if you enjoyed this is Paulo pant if you enjoyed this episode would you please do me a really episode would you please do me a really episode would you please do me a really big favor do you remember that big favor do you remember that big favor do you remember that disclaimer that I gave at the beginning disclaimer that I gave at the beginning disclaimer that I gave at the beginning of the suze orman episode when I said of the suze orman episode when I said of the suze orman episode when I said please don't leave us a one-star review please don't leave us a one-star review please don't leave us a one-star review because you disagree with Susie well at because you disagree with Susie well at because you disagree with Susie well at least one person did I gave this whole least one person did I gave this whole least one person did I gave this whole disclaimer and somebody gave us a disclaimer and somebody gave us a disclaimer and somebody gave us a one-star review and the review says one-star review and the review says one-star review and the review says first of all Suze Orman's scammed the first of all Suze Orman's scammed the first of all Suze Orman's scammed the poor in middle class with her credit poor in middle class with her credit poor in middle class with her credit card deal only $. a month give me a card deal only $. a month give me a card deal only $. a month give me a break now she says work until what a break now she says work until what a break now she says work until what a crock crock crock so yeah sure got a one-star review so yeah sure got a one-star review so yeah sure got a one-star review because somebody didn't like Suze Orman because somebody didn't like Suze Orman because somebody didn't like Suze Orman fortunately thank you thank you thank fortunately thank you thank you thank fortunately thank you thank you thank you thank you thank you you thank you thank you you thank you thank you that was outweighed by six people who that was outweighed by six people who that was outweighed by six people who gave us five-star reviews because they gave us five-star reviews because they gave us five-star reviews because they heard that disclaimer and they knew that heard that disclaimer and they knew that heard that disclaimer and they knew that for every one star we need a for every one star we need a for every one star we need a counterbalance it with five five stars counterbalance it with five five stars counterbalance it with five five stars so that we so that the average doesn't so that we so that the average doesn't so that we so that the average doesn't get brought down and so that new people get brought down and so that new people get brought down and so that new people who are coming to this community who are who are coming to this community who are who are coming to this community who are scrolling through the reviews don't get scrolling through the reviews don't get scrolling through the reviews don't get misled misled misled so please would you do me a favor if you so please would you do me a favor if you so please would you do me a favor if you have not done so yet please go to iTunes have not done so yet please go to iTunes have not done so yet please go to iTunes and leave us a review here's a great and leave us a review here's a great and leave us a review here's a great review from rich review from rich review from rich Schmidt who says I've been listening Schmidt who says I've been listening Schmidt who says I've been listening since the beginning and it just keeps since the beginning and it just keeps since the beginning and it just keeps getting better getting better getting better Paula does a great job of helping Paula does a great job of helping Paula does a great job of helping listeners learn about finance and about listeners learn about finance and about listeners learn about finance and about life in general keep up the good work life in general keep up the good work life in general keep up the good work Paula thank you rich I really I Paula thank you rich I really I Paula thank you rich I really I appreciate that and I know you've been appreciate that and I know you've been appreciate that and I know you've been reading afford anything since the reading afford anything since the reading afford anything since the beginning you've been a blog reader beginning you've been a blog reader beginning you've been a blog reader since before I launch this podcast so I since before I launch this podcast so I since before I launch this podcast so I really appreciate you being part of this really appreciate you being part of this really appreciate you being part of this community for so many years menlo guy community for so many years menlo guy community for so many years menlo guy says I'm a longtime listener and just says I'm a longtime listener and just says I'm a longtime listener and just heard the podcast with Suze Orman heard the podcast with Suze Orman heard the podcast with Suze Orman Paula mentioned that some users might Paula mentioned that some users might Paula mentioned that some users might completely disagree with Orman and give completely disagree with Orman and give completely disagree with Orman and give her a one-star review which funnily her a one-star review which funnily her a one-star review which funnily enough happened right after he said that enough happened right after he said that enough happened right after he said that so I'm doing the opposite and giving the so I'm doing the opposite and giving the so I'm doing the opposite and giving the podcast a five-star review afford podcast a five-star review afford podcast a five-star review afford anything is honest they don't tell you anything is honest they don't tell you anything is honest they don't tell you life is easy and that get-rich-quick life is easy and that get-rich-quick life is easy and that get-rich-quick schemes exist instead it teaches schemes exist instead it teaches schemes exist instead it teaches time-tested principles like budgeting time-tested principles like budgeting time-tested principles like budgeting saving diversifying and due diligence saving diversifying and due diligence saving diversifying and due diligence it's content is primarily 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Spotify whatever it is Google Play apps Spotify whatever it is Google Play apps Spotify whatever it is that you use hit that subscribe button that you use hit that subscribe button that you use hit that subscribe button [Music] [Music] [Music] thank you so much for tuning in and I thank you so much for tuning in and I thank you so much for tuning in and I will catch you on Monday take care will catch you on Monday take care will catch you on Monday take care [Music] I hate it I hate it I hate it and let me I hate it I hate it I hate it and let me I hate it I hate it I hate it and let me tell you why I seriously want to make tell you why I seriously want to make tell you why I seriously want to make this a ringtone does anyone know how to this a ringtone does anyone know how to this a ringtone does anyone know how to turn this into a ringtone is is that turn this into a ringtone is is that turn this into a ringtone is is that even a viable idea if you know anything even a viable idea if you know anything even a viable idea if you know anything about that please reach out to me about that please reach out to me about that please reach out to me because I would love to turn that into a because I would love to turn that into a because I would love to turn that into a ringtone and give it away for free to ringtone and give it away for free to ringtone and give it away for free to the whole community that would be the whole community that would be the whole community that would be hilarious WEBVTT Kind: captions Language: en if you have spent any time researching if you have spent any time researching if you have spent any time researching retirement planning online you have retirement planning online you have retirement planning online you have heard of the percent rule if you heard of the percent rule if you heard of the percent rule if you haven't heard of it haven't heard of it haven't heard of it the four percent rule suggests that if the four percent rule suggests that if the four percent rule suggests that if you spend percent of your assets in you spend percent of your assets in you spend percent of your assets in your initial year retirement and then your initial year retirement and then your initial year retirement and then adjust for inflation each year going adjust for inflation each year going adjust for inflation each year going forward you will be unlikely to run out forward you will be unlikely to run out forward you will be unlikely to run out of money to put some numbers to it if of money to put some numbers to it if of money to put some numbers to it if you wanted to retire and spend $, you wanted to retire and spend $, you wanted to retire and spend $, per year adjusted for inflation from per year adjusted for inflation from per year adjusted for inflation from your portfolio you would need to retire your portfolio you would need to retire your portfolio you would need to retire with million dollars to adhere to the with million dollars to adhere to the with million dollars to adhere to the % rule this rule is alternatively % rule this rule is alternatively % rule this rule is alternatively described as the requirement to have described as the requirement to have described as the requirement to have years worth of spending in your years worth of spending in your years worth of spending in your portfolio to afford retirement over portfolio to afford retirement over portfolio to afford retirement over equals % it's the same rule well it is equals % it's the same rule well it is equals % it's the same rule well it is simple and elegant the % rule is simple and elegant the % rule is simple and elegant the % rule is probably not the best way to plan for probably not the best way to plan for probably not the best way to plan for retirement especially if you plan on retirement especially if you plan on retirement especially if you plan on retiring early I'm Ben Felix associate retiring early I'm Ben Felix associate retiring early I'm Ben Felix associate portfolio manager at PWL capital in this portfolio manager at PWL capital in this portfolio manager at PWL capital in this episode of common sense investing I'm episode of common sense investing I'm episode of common sense investing I'm going to tell you why the % rule is not going to tell you why the % rule is not going to tell you why the % rule is not a rule to live by a rule to live by a rule to live by [Music] [Music] [Music] the % rule originated in William the % rule originated in William the % rule originated in William beggins October study published in beggins October study published in beggins October study published in the Journal of financial planning the Journal of financial planning the Journal of financial planning vengan was a financial planner he wanted vengan was a financial planner he wanted vengan was a financial planner he wanted to find a realistic safely draw rate to to find a realistic safely draw rate to to find a realistic safely draw rate to recommend to his retired clients beggins recommend to his retired clients beggins recommend to his retired clients beggins breakthrough in determining a safe breakthrough in determining a safe breakthrough in determining a safe withdrawal rate came from modeling withdrawal rate came from modeling withdrawal rate came from modeling spending over -year periods in the US spending over -year periods in the US spending over -year periods in the US market history rather than the common market history rather than the common market history rather than the common practice at the time of simply using practice at the time of simply using practice at the time of simply using historical average returns using data historical average returns using data historical average returns using data for a hypothetical portfolio consisting for a hypothetical portfolio consisting for a hypothetical portfolio consisting of percent S&P index and % of percent S&P index and % of percent S&P index and % intermediate term US government bonds he intermediate term US government bonds he intermediate term US government bonds he looked at rolling year periods looked at rolling year periods looked at rolling year periods starting in ending in so the starting in ending in so the starting in ending in so the periods were to followed by periods were to followed by periods were to followed by to etc ending with to to etc ending with to to etc ending with to the maximum safe withdrawal rate in the maximum safe withdrawal rate in the maximum safe withdrawal rate in the worst year period ended up being the worst year period ended up being the worst year period ended up being just over % from this simple but just over % from this simple but just over % from this simple but innovative analysis the % rule was born innovative analysis the % rule was born innovative analysis the % rule was born more recently baingan has adjusted his more recently baingan has adjusted his more recently baingan has adjusted his spending rule to .% based on the spending rule to .% based on the spending rule to .% based on the inclusion of small cap stocks in the inclusion of small cap stocks in the inclusion of small cap stocks in the hypothetical historical portfolio hypothetical historical portfolio hypothetical historical portfolio well the % rule and the . percent well the % rule and the . percent well the % rule and the . percent rule may have basis in historical US rule may have basis in historical US rule may have basis in historical US data there are substantial problems with data there are substantial problems with data there are substantial problems with these rules in general and specifically these rules in general and specifically these rules in general and specifically in the case of a retirement period in the case of a retirement period in the case of a retirement period longer than years in his book longer than years in his book longer than years in his book how much can I spend in retirement how much can I spend in retirement how much can I spend in retirement Wade foul PhD CFA looked at years Wade foul PhD CFA looked at years Wade foul PhD CFA looked at years safe withdrawal rates in both the US and safe withdrawal rates in both the US and safe withdrawal rates in both the US and non-us markets using the dimpsons march non-us markets using the dimpsons march non-us markets using the dimpsons march stanton global returns data set and stanton global returns data set and stanton global returns data set and assuming a portfolio of % stocks and assuming a portfolio of % stocks and assuming a portfolio of % stocks and % bills he found that the u.s. at % bills he found that the u.s. at % bills he found that the u.s. at three point nine percent canada at four three point nine percent canada at four three point nine percent canada at four percent new zealand at three point eight percent new zealand at three point eight percent new zealand at three point eight percent and denmark at three point seven percent and denmark at three point seven percent and denmark at three point seven percent were the only countries in the percent were the only countries in the percent were the only countries in the data set that would have historically data set that would have historically data set that would have historically supported something close to the four supported something close to the four supported something close to the four percent rule the aggregate global percent rule the aggregate global percent rule the aggregate global portfolio of stocks and bills had a much portfolio of stocks and bills had a much portfolio of stocks and bills had a much lower -year safe withdrawal rate of lower -year safe withdrawal rate of lower -year safe withdrawal rate of .% considering returns other than u.s. .% considering returns other than u.s. .% considering returns other than u.s. historical returns as important but in historical returns as important but in historical returns as important but in my opinion one of the most important my opinion one of the most important my opinion one of the most important assumptions to be aware of in the % assumptions to be aware of in the % assumptions to be aware of in the % rule is the -year retirement period rule is the -year retirement period rule is the -year retirement period used by Beggan people are living longer used by Beggan people are living longer used by Beggan people are living longer and many of the bloggers citing the % and many of the bloggers citing the % and many of the bloggers citing the % are focused on fire financial are focused on fire financial are focused on fire financial independence retire early in beggin independence retire early in beggin independence retire early in beggin study the % rule with a fifty percent study the % rule with a fifty percent study the % rule with a fifty percent stock % bond portfolio was shown to stock % bond portfolio was shown to stock % bond portfolio was shown to have a zero percent chance of failure have a zero percent chance of failure have a zero percent chance of failure over year historical periods in the over year historical periods in the over year historical periods in the US that chance of failure increases to US that chance of failure increases to US that chance of failure increases to around % over year periods and around % over year periods and around % over year periods and closer to percent over year closer to percent over year closer to percent over year periods fire likely means retirement periods fire likely means retirement periods fire likely means retirement periods longer than years modeling periods longer than years modeling periods longer than years modeling longer time periods using historical longer time periods using historical longer time periods using historical sampling becomes problematic because we sampling becomes problematic because we sampling becomes problematic because we have data for a limited number of have data for a limited number of have data for a limited number of historical year periods one way to historical year periods one way to historical year periods one way to address this issue is with Monte Carlo address this issue is with Monte Carlo address this issue is with Monte Carlo simulation Monte Carlo is a technique simulation Monte Carlo is a technique simulation Monte Carlo is a technique where an unlimited number of sample data where an unlimited number of sample data where an unlimited number of sample data sets can be simulated to model sets can be simulated to model sets can be simulated to model uncertainty without relying on uncertainty without relying on uncertainty without relying on historical periods even with Monte Carlo historical periods even with Monte Carlo historical periods even with Monte Carlo simulation there is an obvious risk to simulation there is an obvious risk to simulation there is an obvious risk to using historical data to build using historical data to build using historical data to build expectations about the future the world expectations about the future the world expectations about the future the world today is different than it was in the today is different than it was in the today is different than it was in the past interest rates are low and stock past interest rates are low and stock past interest rates are low and stock prices are relatively high well it may prices are relatively high well it may prices are relatively high well it may be reasonable to expect relative be reasonable to expect relative be reasonable to expect relative outcomes to persist such as stocks and outcomes to persist such as stocks and outcomes to persist such as stocks and performing bonds small stocks performing bonds small stocks performing bonds small stocks outperforming large stocks and value outperforming large stocks and value outperforming large stocks and value stocks outperforming growth stocks the stocks outperforming growth stocks the stocks outperforming growth stocks the magnitude of future returns are unknown magnitude of future returns are unknown magnitude of future returns are unknown and unknowable to address this for and unknowable to address this for and unknowable to address this for financial planning PWL capital uses a financial planning PWL capital uses a financial planning PWL capital uses a combination of equilibrium cost of combination of equilibrium cost of combination of equilibrium cost of capital and current market conditions to capital and current market conditions to capital and current market conditions to build an estimate for future expected build an estimate for future expected build an estimate for future expected returns this process is outlined in the returns this process is outlined in the returns this process is outlined in the paper great expectations using the paper great expectations using the paper great expectations using the December of pwl capital expected December of pwl capital expected December of pwl capital expected returns for a percent stock returns for a percent stock returns for a percent stock percent bond portfolio we are able to percent bond portfolio we are able to percent bond portfolio we are able to model the safe withdrawal rate for model the safe withdrawal rate for model the safe withdrawal rate for varying durations of retirement using varying durations of retirement using varying durations of retirement using Monte Carlo simulation we will assume Monte Carlo simulation we will assume Monte Carlo simulation we will assume that a % success rate over , that a % success rate over , that a % success rate over , trials is sufficient to be called a safe trials is sufficient to be called a safe trials is sufficient to be called a safe withdraw rate for a -year retirement withdraw rate for a -year retirement withdraw rate for a -year retirement period our Monte Carlo simulation gives period our Monte Carlo simulation gives period our Monte Carlo simulation gives us a . percent safe withdraw rate us a . percent safe withdraw rate us a . percent safe withdraw rate pretty close to the original % roll and pretty close to the original % roll and pretty close to the original % roll and spot on with Wade fowl revision of spot on with Wade fowl revision of spot on with Wade fowl revision of beggins analysis now let's say a year beggins analysis now let's say a year beggins analysis now let's say a year old wants to retire today and assume old wants to retire today and assume old wants to retire today and assume life until age that is a year life until age that is a year life until age that is a year retirement period the safe of draw rate retirement period the safe of draw rate retirement period the safe of draw rate .% I think that this is such an .% I think that this is such an .% I think that this is such an important message the % rule falls important message the % rule falls important message the % rule falls apart apart apart longer retirement periods so far we have longer retirement periods so far we have longer retirement periods so far we have talked about spending a consistent talked about spending a consistent talked about spending a consistent inflation-adjusted amount each year in inflation-adjusted amount each year in inflation-adjusted amount each year in retirement one way to increase the retirement one way to increase the retirement one way to increase the amount that you can spend overall is amount that you can spend overall is amount that you can spend overall is allowing for variable spending in allowing for variable spending in allowing for variable spending in general this means spending more when general this means spending more when general this means spending more when markets are good and spending less when markets are good and spending less when markets are good and spending less when markets are bad the result is more markets are bad the result is more markets are bad the result is more spending overall with a lower spending overall with a lower spending overall with a lower probability of running out of money the probability of running out of money the probability of running out of money the catch of course is that you have to live catch of course is that you have to live catch of course is that you have to live with a variable income or have the with a variable income or have the with a variable income or have the ability to generate additional income ability to generate additional income ability to generate additional income from say working to fill in the gaps from say working to fill in the gaps from say working to fill in the gaps when markets are not doing well we also when markets are not doing well we also when markets are not doing well we also need to talk about fees fees reduce need to talk about fees fees reduce need to talk about fees fees reduce returns fees may be negligible if you're returns fees may be negligible if you're returns fees may be negligible if you're using low-cost ETFs but they become using low-cost ETFs but they become using low-cost ETFs but they become extremely important if you're using high extremely important if you're using high extremely important if you're using high fee mutual funds or if you were paying fee mutual funds or if you were paying fee mutual funds or if you were paying for financial advice the safe withdrawal for financial advice the safe withdrawal for financial advice the safe withdrawal rate in the worst year period in the rate in the worst year period in the rate in the worst year period in the u.s. drops to three point five six u.s. drops to three point five six u.s. drops to three point five six percent with a % fee making the % rule percent with a % fee making the % rule percent with a % fee making the % rule more like the three point five percent more like the three point five percent more like the three point five percent rule after a % fee adding a % fee to rule after a % fee adding a % fee to rule after a % fee adding a % fee to the Monte Carlo simulation reduces the the Monte Carlo simulation reduces the the Monte Carlo simulation reduces the safe withdrawal rates by around zero safe withdrawal rates by around zero safe withdrawal rates by around zero point five zero percent on average in point five zero percent on average in point five zero percent on average in both cases this is a meaningful both cases this is a meaningful both cases this is a meaningful reduction in spending of course fees reduction in spending of course fees reduction in spending of course fees need to be considered alongside the need to be considered alongside the need to be considered alongside the value being received in exchange for the value being received in exchange for the value being received in exchange for the fee this value should be heavily tied to fee this value should be heavily tied to fee this value should be heavily tied to behavioral coaching and financial behavioral coaching and financial behavioral coaching and financial decision making there have been two decision making there have been two decision making there have been two well-known attempts to quantify the well-known attempts to quantify the well-known attempts to quantify the value of financial advice one by value of financial advice one by value of financial advice one by Vanguard and one by Morningstar Vanguard Vanguard and one by Morningstar Vanguard Vanguard and one by Morningstar Vanguard estimated that between building a estimated that between building a estimated that between building a customized investment plan minimizing customized investment plan minimizing customized investment plan minimizing risks and tax impacts and behavioral risks and tax impacts and behavioral risks and tax impacts and behavioral coaching good financial advice can add coaching good financial advice can add coaching good financial advice can add an average of around % per year to an average of around % per year to an average of around % per year to returns returns returns Morningstar looked at withdrawal Morningstar looked at withdrawal Morningstar looked at withdrawal strategies asset allocation tax strategies asset allocation tax strategies asset allocation tax efficiency liability relative efficiency liability relative efficiency liability relative optimization annuity allocation and optimization annuity allocation and optimization annuity allocation and timing of Social Security or CPP in timing of Social Security or CPP in timing of Social Security or CPP in Canada to arrive at a value add of two Canada to arrive at a value add of two Canada to arrive at a value add of two point three four percent per year PWL point three four percent per year PWL point three four percent per year PWL capitals Raymond kazar Howe has also capitals Raymond kazar Howe has also capitals Raymond kazar Howe has also written on this topic finding an written on this topic finding an written on this topic finding an estimated value out of just over % per estimated value out of just over % per estimated value out of just over % per year based on these analyses one could year based on these analyses one could year based on these analyses one could argue that paying % for a good argue that paying % for a good argue that paying % for a good financial advice could even increase financial advice could even increase financial advice could even increase your safe withdraw rate I would not go your safe withdraw rate I would not go your safe withdraw rate I would not go that far but the point is that while that far but the point is that while that far but the point is that while fees are a consideration fees are a consideration fees are a consideration maybe worthwhile in exchange for good maybe worthwhile in exchange for good maybe worthwhile in exchange for good advice of course if you can stay advice of course if you can stay advice of course if you can stay disciplined take the time to educate disciplined take the time to educate disciplined take the time to educate yourself in financial planning keep up yourself in financial planning keep up yourself in financial planning keep up to date with tax laws and investment to date with tax laws and investment to date with tax laws and investment products and maintain your cognitive products and maintain your cognitive products and maintain your cognitive abilities into old age you may be able abilities into old age you may be able abilities into old age you may be able to make your own good financial to make your own good financial to make your own good financial decisions without paying a fee for decisions without paying a fee for decisions without paying a fee for advice the % role is a constant advice the % role is a constant advice the % role is a constant inflation adjusted spending strategy it inflation adjusted spending strategy it inflation adjusted spending strategy it may have worked over the worst year may have worked over the worst year may have worked over the worst year period in US history period in US history period in US history but confidence in the rule starts to but confidence in the rule starts to but confidence in the rule starts to decrease when we consider international decrease when we consider international decrease when we consider international data longer retirement periods expected data longer retirement periods expected data longer retirement periods expected feature returns investment fees and the feature returns investment fees and the feature returns investment fees and the ability of humans to make good financial ability of humans to make good financial ability of humans to make good financial decisions in a -year fire situation a decisions in a -year fire situation a decisions in a -year fire situation a safe withdraw rate might be closer to % safe withdraw rate might be closer to % safe withdraw rate might be closer to % before fees are taken into account fees before fees are taken into account fees before fees are taken into account fees are a consideration in determining a are a consideration in determining a are a consideration in determining a safe withdrawal rate all else equal safe withdrawal rate all else equal safe withdrawal rate all else equal lower fees mean a higher withdrawal rate lower fees mean a higher withdrawal rate lower fees mean a higher withdrawal rate however there are many financial however there are many financial however there are many financial decisions along the way that could decisions along the way that could decisions along the way that could impact sustainable lifetime spending impact sustainable lifetime spending impact sustainable lifetime spending have you ever thought about applying the have you ever thought about applying the have you ever thought about applying the % rule to your own retirement has the % rule to your own retirement has the % rule to your own retirement has the information in this video made you information in this video made you information in this video made you rethink let's discuss it in the comments rethink let's discuss it in the comments rethink let's discuss it in the comments thanks for watching my name is Ben Felix thanks for watching my name is Ben Felix thanks for watching my name is Ben Felix of PWL capital and this is common sense of PWL capital and this is common sense of PWL capital and this is common sense investing I will be talking about a new investing I will be talking about a new investing I will be talking about a new common sense investing topic every two common sense investing topic every two common sense investing topic every two weeks so subscribe click the bell for weeks so subscribe click the bell for weeks so subscribe click the bell for updates [Music] [Music] WEBVTT Kind: captions Language: en what's up you guys sasha here now how what's up you guys sasha here now how what's up you guys sasha here now how much do you know about the fire movement much do you know about the fire movement much do you know about the fire movement maybe you know a lot about it maybe you maybe you know a lot about it maybe you maybe you know a lot about it maybe you are part of it maybe you know nothing are part of it maybe you know nothing are part of it maybe you know nothing about it whatsoever it doesn't really about it whatsoever it doesn't really about it whatsoever it doesn't really matter because what i'm gonna do in this matter because what i'm gonna do in this matter because what i'm gonna do in this video is i will tell you what video is i will tell you what video is i will tell you what fire movement is as briefly as i fire movement is as briefly as i fire movement is as briefly as i possibly can and then i will tell you possibly can and then i will tell you possibly can and then i will tell you what what what i think the big problem with it is in i think the big problem with it is in i think the big problem with it is in fact there's more than one fact there's more than one fact there's more than one but stick around because i'm gonna go but stick around because i'm gonna go but stick around because i'm gonna go into the details later on into the details later on into the details later on first let's just explain what the fire first let's just explain what the fire first let's just explain what the fire movement is movement is movement is the acronym fire stands for financial the acronym fire stands for financial the acronym fire stands for financial independence retire early independence retire early independence retire early and it sounds like a really great idea and it sounds like a really great idea and it sounds like a really great idea when you first hear it it says when you first hear it it says when you first hear it it says you need to gain enough financial you need to gain enough financial you need to gain enough financial dependence for you to be able to quit dependence for you to be able to quit dependence for you to be able to quit the rat race for you to be able to not the rat race for you to be able to not the rat race for you to be able to not have to go to work have to go to work have to go to work so that you can live off the money that so that you can live off the money that so that you can live off the money that you've earned for the rest of your life you've earned for the rest of your life you've earned for the rest of your life essentially retire essentially retire essentially retire when you are able to not when the when you are able to not when the when you are able to not when the government says you're allowed to when government says you're allowed to when government says you're allowed to when you're in your s or s you're in your s or s you're in your s or s the objective is reasonably the objective is reasonably the objective is reasonably straightforward it says that you need to straightforward it says that you need to straightforward it says that you need to go and save up go and save up go and save up as much money as possible as quickly as as much money as possible as quickly as as much money as possible as quickly as possible so that then that money can be possible so that then that money can be possible so that then that money can be used used used in order to fund the lifestyle that you in order to fund the lifestyle that you in order to fund the lifestyle that you want to have once you've gone want to have once you've gone want to have once you've gone past the retirement point this movement past the retirement point this movement past the retirement point this movement has become surprisingly popular with has become surprisingly popular with has become surprisingly popular with younger people younger people younger people one youtuber after another professes its one youtuber after another professes its one youtuber after another professes its virtues and tells you that they're going virtues and tells you that they're going virtues and tells you that they're going to retire in their s in their s to retire in their s in their s to retire in their s in their s in some cases in their s and this in some cases in their s and this in some cases in their s and this creates a lot of pressure on some people creates a lot of pressure on some people creates a lot of pressure on some people who feel like they need to be part of who feel like they need to be part of who feel like they need to be part of the same game they need to make sure the same game they need to make sure the same game they need to make sure that that that they do what these other people are they do what these other people are they do what these other people are doing they need to retire when they're doing they need to retire when they're doing they need to retire when they're they don't need to wait till they don't need to wait till they don't need to wait till because because because why should you go and work your entire why should you go and work your entire why should you go and work your entire life when you can go and do this life when you can go and do this life when you can go and do this fire thing instead now let's dive a fire thing instead now let's dive a fire thing instead now let's dive a little bit into the detail and i'm going little bit into the detail and i'm going little bit into the detail and i'm going to begin talking about some of the to begin talking about some of the to begin talking about some of the things that i'm not so certain with things that i'm not so certain with things that i'm not so certain with when it comes to the fire movement when it comes to the fire movement when it comes to the fire movement concept now first a lot of people who concept now first a lot of people who concept now first a lot of people who talk about it talk about it talk about it talk about it from a position of massive talk about it from a position of massive talk about it from a position of massive negativity negativity negativity it talks about everyone hating their it talks about everyone hating their it talks about everyone hating their jobs it must be the case that if you jobs it must be the case that if you jobs it must be the case that if you have a job you hate it you don't want to have a job you hate it you don't want to have a job you hate it you don't want to do it you don't want to go there do it you don't want to go there do it you don't want to go there you want to quit as soon as possible so you want to quit as soon as possible so you want to quit as soon as possible so that you don't have to go and do that that you don't have to go and do that that you don't have to go and do that job job job any longer it says that you need to set any longer it says that you need to set any longer it says that you need to set a goal and that goal needs to be the a goal and that goal needs to be the a goal and that goal needs to be the point at which you're going to be able point at which you're going to be able point at which you're going to be able to retire and that goal is going to be to retire and that goal is going to be to retire and that goal is going to be based on based on based on something called the fire number the something called the fire number the something called the fire number the fire number is basically the amount of fire number is basically the amount of fire number is basically the amount of money that you need to have saved up in money that you need to have saved up in money that you need to have saved up in order for you to be able to retire and order for you to be able to retire and order for you to be able to retire and never have to work never have to work never have to work again now to keep it really simple and again now to keep it really simple and again now to keep it really simple and i'm not going to go into a huge amount i'm not going to go into a huge amount i'm not going to go into a huge amount of detail here of detail here of detail here that number is basically something like that number is basically something like that number is basically something like times times times the amount that you want to be able to the amount that you want to be able to the amount that you want to be able to draw from that amount of money every draw from that amount of money every draw from that amount of money every single year so single year so single year so if you want to earn a year if you want to earn a year if you want to earn a year you will need about a million dollars you will need about a million dollars you will need about a million dollars saved up before you can hit that saved up before you can hit that saved up before you can hit that retirement point retirement point retirement point the reason that applies is because the reason that applies is because the reason that applies is because typically speaking you can draw about typically speaking you can draw about typically speaking you can draw about four percent from your retirement fund four percent from your retirement fund four percent from your retirement fund every single year every single year every single year without the size of that retirement fund without the size of that retirement fund without the size of that retirement fund going down on average over time going down on average over time going down on average over time if you're having your investments in if you're having your investments in if you're having your investments in stocks and shares then on average you're stocks and shares then on average you're stocks and shares then on average you're probably expecting somewhere in the six probably expecting somewhere in the six probably expecting somewhere in the six to seven percent return to seven percent return to seven percent return over time on that stocks and shares over time on that stocks and shares over time on that stocks and shares portfolio if you then account for a portfolio if you then account for a portfolio if you then account for a two percent inflation say on average two percent inflation say on average two percent inflation say on average over the same period over the same period over the same period then drawing four percent roughly keeps then drawing four percent roughly keeps then drawing four percent roughly keeps that million dollars in check and it that million dollars in check and it that million dollars in check and it doesn't go doesn't go doesn't go up or down and you can continue drawing up or down and you can continue drawing up or down and you can continue drawing the same the same the same every single year year after year of every single year year after year of every single year year after year of course course course one million dollars is a huge amount of one million dollars is a huge amount of one million dollars is a huge amount of money for most people it will take money for most people it will take money for most people it will take many many years and in some cases many many years and in some cases many many years and in some cases decades even if you follow decades even if you follow decades even if you follow every single rule of the book in order every single rule of the book in order every single rule of the book in order to save it to save it to save it to get to the place where you actually to get to the place where you actually to get to the place where you actually have it sitting in a bank account or in have it sitting in a bank account or in have it sitting in a bank account or in an investment portfolio an investment portfolio an investment portfolio sure compound interest plays a role but sure compound interest plays a role but sure compound interest plays a role but i'm going to show you how it's not quite i'm going to show you how it's not quite i'm going to show you how it's not quite as as as much of a role as you might think when much of a role as you might think when much of a role as you might think when you're first thinking about it so let's you're first thinking about it so let's you're first thinking about it so let's cover the fire plan cover the fire plan cover the fire plan first you're going to spend the next first you're going to spend the next first you're going to spend the next to years living to years living to years living as cheaply as possible you will cut out as cheaply as possible you will cut out as cheaply as possible you will cut out all non-essential costs all non-essential costs all non-essential costs you will sell your car and you will buy you will sell your car and you will buy you will sell your car and you will buy another one which will cost you as another one which will cost you as another one which will cost you as little money as possible maybe little money as possible maybe little money as possible maybe and that car will not have aircon it and that car will not have aircon it and that car will not have aircon it will not have will not have will not have any niceties it's just a vehicle to get any niceties it's just a vehicle to get any niceties it's just a vehicle to get you from point a to point b you will you from point a to point b you will you from point a to point b you will live in the smallest live in the smallest live in the smallest cheapest apartment in a very cheap cheapest apartment in a very cheap cheapest apartment in a very cheap location location location to make sure you can set the money aside to make sure you can set the money aside to make sure you can set the money aside instead of paying to live somewhere instead of paying to live somewhere instead of paying to live somewhere you will have no holidays you will have you will have no holidays you will have you will have no holidays you will have no nights out you will buy the cheapest no nights out you will buy the cheapest no nights out you will buy the cheapest food from the cheapest grocery store food from the cheapest grocery store food from the cheapest grocery store that you can find that you can find that you can find and every single penny that you save is and every single penny that you save is and every single penny that you save is going to go towards going to go towards going to go towards building that fire number but here is an building that fire number but here is an building that fire number but here is an issue with that issue with that issue with that even if you assume a average even if you assume a average even if you assume a average investment per year on the investments investment per year on the investments investment per year on the investments that you're making while you're saving that you're making while you're saving that you're making while you're saving your money your money your money and even if you're putting aside and even if you're putting aside and even if you're putting aside per year every single year because you per year every single year because you per year every single year because you managed to save so much managed to save so much managed to save so much and not spend anything it's still going and not spend anything it's still going and not spend anything it's still going to take you to take you to take you years to get to that million so that years to get to that million so that years to get to that million so that then at the end of that then at the end of that then at the end of that you can live on a year for the you can live on a year for the you can live on a year for the rest of your life rest of your life rest of your life people will work every single hour of people will work every single hour of people will work every single hour of the day they will drive for uber they'll the day they will drive for uber they'll the day they will drive for uber they'll do do do part-time jobs they'll work weekends part-time jobs they'll work weekends part-time jobs they'll work weekends they will not be able to overpay their they will not be able to overpay their they will not be able to overpay their mortgage and pay down more quickly mortgage and pay down more quickly mortgage and pay down more quickly because because because they are putting every single penny that they are putting every single penny that they are putting every single penny that they have towards building their fire they have towards building their fire they have towards building their fire number so in many cases you probably number so in many cases you probably number so in many cases you probably will never will never will never actually go and get a mortgage in the actually go and get a mortgage in the actually go and get a mortgage in the first place so you'll never actually own first place so you'll never actually own first place so you'll never actually own a home you'll continue renting because a home you'll continue renting because a home you'll continue renting because that is the cheapest way that is the cheapest way that is the cheapest way and that ensures that the most amount of and that ensures that the most amount of and that ensures that the most amount of your disposable income can go your disposable income can go your disposable income can go towards your savings now let's get to towards your savings now let's get to towards your savings now let's get to the problem that i have with it and the problem that i have with it and the problem that i have with it and actually actually actually i don't have just one problem i have i don't have just one problem i have i don't have just one problem i have three the first one is really really three the first one is really really three the first one is really really simple and it is this simple and it is this simple and it is this if you go down this route if you're if you go down this route if you're if you go down this route if you're and you decide that you want to go and you decide that you want to go and you decide that you want to go down this route and pursue this strategy down this route and pursue this strategy down this route and pursue this strategy you're basically saying to yourself that you're basically saying to yourself that you're basically saying to yourself that you're going to waste the best part of you're going to waste the best part of you're going to waste the best part of your life your life your life doing absolutely nothing fun investing doing absolutely nothing fun investing doing absolutely nothing fun investing in nothing that will make you happy not in nothing that will make you happy not in nothing that will make you happy not spending spending spending any money in any way that is not the any money in any way that is not the any money in any way that is not the cheapest possible way cheapest possible way cheapest possible way in order to be able to retire and enjoy in order to be able to retire and enjoy in order to be able to retire and enjoy a slightly less stressful life or a a slightly less stressful life or a a slightly less stressful life or a slightly more free life when you're in slightly more free life when you're in slightly more free life when you're in your s and s your s and s your s and s and that seems to me like a trade-off and that seems to me like a trade-off and that seems to me like a trade-off that just isn't that just isn't that just isn't the right way of thinking about it yes the right way of thinking about it yes the right way of thinking about it yes being frugal is great i being frugal is great i being frugal is great i personally advocated as well yes personally advocated as well yes personally advocated as well yes financial minimalism is amazing financial minimalism is amazing financial minimalism is amazing and can be extremely fruitful for people and can be extremely fruitful for people and can be extremely fruitful for people sorting their finances and thinking sorting their finances and thinking sorting their finances and thinking about them in the right way but what about them in the right way but what about them in the right way but what about your friends what about your about your friends what about your about your friends what about your family what about family what about family what about enjoying life what about the memories enjoying life what about the memories enjoying life what about the memories that you can build by that you can build by that you can build by traveling a little by just doing some traveling a little by just doing some traveling a little by just doing some things that sometimes will cost a little things that sometimes will cost a little things that sometimes will cost a little bit more money bit more money bit more money i'm not saying you should go and splurge i'm not saying you should go and splurge i'm not saying you should go and splurge all the time but i'm saying all the time but i'm saying all the time but i'm saying being so completely cheap that you spend being so completely cheap that you spend being so completely cheap that you spend absolutely nothing absolutely nothing absolutely nothing so that you can go and achieve this so that you can go and achieve this so that you can go and achieve this number it's probably going to number it's probably going to number it's probably going to seriously impact the quality of life seriously impact the quality of life seriously impact the quality of life you're going to have for this entire you're going to have for this entire you're going to have for this entire period when you're old when you're on period when you're old when you're on period when you're old when you're on your deathbed and you're thinking back your deathbed and you're thinking back your deathbed and you're thinking back on your life on your life on your life are you going to be pleased that that is are you going to be pleased that that is are you going to be pleased that that is the choice that you've made that you've the choice that you've made that you've the choice that you've made that you've decided to not live your life decided to not live your life decided to not live your life so that you can go and save every single so that you can go and save every single so that you can go and save every single penny penny penny i don't think everyone would is it worth i don't think everyone would is it worth i don't think everyone would is it worth going through years of having an going through years of having an going through years of having an incredibly miserable life in many ways incredibly miserable life in many ways incredibly miserable life in many ways because of the choices that you're because of the choices that you're because of the choices that you're making making making so that then you can have a potentially so that then you can have a potentially so that then you can have a potentially maybe slightly happier life maybe slightly happier life maybe slightly happier life at some point in the distant future now at some point in the distant future now at some point in the distant future now problem number two that i have with it problem number two that i have with it problem number two that i have with it is the retire is the retire is the retire early part of this mnemonic it is the early part of this mnemonic it is the early part of this mnemonic it is the last two letters i last two letters i last two letters i generally have a massive problem with it generally have a massive problem with it generally have a massive problem with it and that is and that is and that is what is it that you want to do now a lot what is it that you want to do now a lot what is it that you want to do now a lot of youtube videos a lot of people out of youtube videos a lot of people out of youtube videos a lot of people out there will say hey there will say hey there will say hey it is amazing you can go and retire in it is amazing you can go and retire in it is amazing you can go and retire in your s and you will never have to do a your s and you will never have to do a your s and you will never have to do a day of work in your life again day of work in your life again day of work in your life again and i'm sitting there thinking if i go and i'm sitting there thinking if i go and i'm sitting there thinking if i go on a on a on a day or a week holiday i am eager to day or a week holiday i am eager to day or a week holiday i am eager to get back into working get back into working get back into working i get bored now i know that different i get bored now i know that different i get bored now i know that different people have different ways of going people have different ways of going people have different ways of going about things but about things but about things but i'm pretty certain that if the average i'm pretty certain that if the average i'm pretty certain that if the average person goes and sits on their backside person goes and sits on their backside person goes and sits on their backside for for for three or four decades in a row they're three or four decades in a row they're three or four decades in a row they're probably going to get probably going to get probably going to get incredibly bored they might not realize incredibly bored they might not realize incredibly bored they might not realize it but they're definitely going to be it but they're definitely going to be it but they're definitely going to be bored bored bored doing nothing is actually pretty bad for doing nothing is actually pretty bad for doing nothing is actually pretty bad for your health it is bad for your mental your health it is bad for your mental your health it is bad for your mental health it is bad for your health it is bad for your health it is bad for your cognitive abilities it is bad for the cognitive abilities it is bad for the cognitive abilities it is bad for the way that you think about stuff way that you think about stuff way that you think about stuff and this is the point where people say and this is the point where people say and this is the point where people say well sure but you can go and do some well sure but you can go and do some well sure but you can go and do some kind of work in your spare time you can kind of work in your spare time you can kind of work in your spare time you can go and go and go and enjoy your passions but why not change enjoy your passions but why not change enjoy your passions but why not change the rhetoric and instead of talking the rhetoric and instead of talking the rhetoric and instead of talking about retirement about retirement about retirement talk about focusing on things that you talk about focusing on things that you talk about focusing on things that you find more fulfilling find more fulfilling find more fulfilling focus on things that you find more focus on things that you find more focus on things that you find more interesting focus on things that are interesting focus on things that are interesting focus on things that are closer to your passions closer to your passions closer to your passions maybe those things are not going to earn maybe those things are not going to earn maybe those things are not going to earn you as much money maybe those things are you as much money maybe those things are you as much money maybe those things are not going to take you to the same career not going to take you to the same career not going to take you to the same career progression heights as progression heights as progression heights as some other avenues would but why do you some other avenues would but why do you some other avenues would but why do you have to talk about retirement when you have to talk about retirement when you have to talk about retirement when you can talk about just can talk about just can talk about just doing things that you enjoy more which doing things that you enjoy more which doing things that you enjoy more which don't come with the necessity to take don't come with the necessity to take don't come with the necessity to take to years of your life to years of your life to years of your life of doing absolutely nothing fun not of doing absolutely nothing fun not of doing absolutely nothing fun not spending any money on spending any money on spending any money on anything problem number three is anything problem number three is anything problem number three is something kind of interesting and that something kind of interesting and that something kind of interesting and that is is is the principles of the fire movement the principles of the fire movement the principles of the fire movement don't actually go hand in hand don't actually go hand in hand don't actually go hand in hand with the general way that you should with the general way that you should with the general way that you should think about building wealth nobody think about building wealth nobody think about building wealth nobody builds wealth nobody becomes builds wealth nobody becomes builds wealth nobody becomes extremely rich by just saving money it's extremely rich by just saving money it's extremely rich by just saving money it's impossible i have a whole video that i'm impossible i have a whole video that i'm impossible i have a whole video that i'm gonna reference gonna reference gonna reference in the link below where i talk in the link below where i talk in the link below where i talk specifically about this concept specifically about this concept specifically about this concept but the fire movement generally but the fire movement generally but the fire movement generally advocates that this is exactly what advocates that this is exactly what advocates that this is exactly what people do people do people do this is exactly why it will take you this is exactly why it will take you this is exactly why it will take you to years of going down this path of to years of going down this path of to years of going down this path of saving every single penny in order for saving every single penny in order for saving every single penny in order for the compound interest to take you the compound interest to take you the compound interest to take you towards that one million mark towards that one million mark towards that one million mark and this is exactly why people who go and this is exactly why people who go and this is exactly why people who go down this road will have to live down this road will have to live down this road will have to live on a salary of or on a salary of or on a salary of or for the rest of their lives when they for the rest of their lives when they for the rest of their lives when they retire they'll never be able to earn retire they'll never be able to earn retire they'll never be able to earn more than that because of the choices more than that because of the choices more than that because of the choices that they have made rich people don't that they have made rich people don't that they have made rich people don't become rich by exchanging time for money become rich by exchanging time for money become rich by exchanging time for money and exchanging a lot more of their time and exchanging a lot more of their time and exchanging a lot more of their time for money for a period of to years for money for a period of to years for money for a period of to years rich people become rich because they rich people become rich because they rich people become rich because they build successful and high performing build successful and high performing build successful and high performing machines that make money on their behalf machines that make money on their behalf machines that make money on their behalf without them having to exchange time without them having to exchange time without them having to exchange time directly for directly for directly for making the money in the first place they making the money in the first place they making the money in the first place they can spend their time can spend their time can spend their time improving honing and making the machine improving honing and making the machine improving honing and making the machine better at making money better at making money better at making money that's called making a business that's that's called making a business that's that's called making a business that's called making a passive income stream called making a passive income stream called making a passive income stream that is the way that people become rich that is the way that people become rich that is the way that people become rich it isn't by working every single hour it isn't by working every single hour it isn't by working every single hour and saving as much of that money as and saving as much of that money as and saving as much of that money as possible possible possible now don't get me wrong i'm generally a now don't get me wrong i'm generally a now don't get me wrong i'm generally a massive fan of being frugal of financial massive fan of being frugal of financial massive fan of being frugal of financial minimalism minimalism minimalism of saving money and of being really of saving money and of being really of saving money and of being really smart with your finances smart with your finances smart with your finances i am probably for the vast majority of i am probably for the vast majority of i am probably for the vast majority of the way that these people think the way that these people think the way that these people think i just think the literal interpretation i just think the literal interpretation i just think the literal interpretation and the way that this movement and the way that this movement and the way that this movement explains how you should structure your explains how you should structure your explains how you should structure your life is fundamentally life is fundamentally life is fundamentally not actually good for the majority of not actually good for the majority of not actually good for the majority of people it is potentially going to send people it is potentially going to send people it is potentially going to send people down the wrong path people down the wrong path people down the wrong path it's going to make them make decisions it's going to make them make decisions it's going to make them make decisions that are probably going to be that are probably going to be that are probably going to be disadvantageous to their mental health disadvantageous to their mental health disadvantageous to their mental health to the way that they build relationships to the way that they build relationships to the way that they build relationships with people that they love with people that they love with people that they love i generally think that not being able to i generally think that not being able to i generally think that not being able to spend any money on things like holidays spend any money on things like holidays spend any money on things like holidays on enjoying yourself on things that are on enjoying yourself on things that are on enjoying yourself on things that are not necessarily not necessarily not necessarily the most frugal option ever the most frugal option ever the most frugal option ever is actually not healthy it stops you is actually not healthy it stops you is actually not healthy it stops you from understanding the different avenues from understanding the different avenues from understanding the different avenues of life it stops you from understanding of life it stops you from understanding of life it stops you from understanding the way that you can lead life in the way that you can lead life in the way that you can lead life in different ways it stops you from different ways it stops you from different ways it stops you from really actually living and there's really actually living and there's really actually living and there's living a life that is slightly more free living a life that is slightly more free living a life that is slightly more free and not having to go to work in years and not having to go to work in years and not having to go to work in years time worth it time worth it time worth it i would argue it isn't i'm sure a lot of i would argue it isn't i'm sure a lot of i would argue it isn't i'm sure a lot of people are going to disagree with me i'm people are going to disagree with me i'm people are going to disagree with me i'm sure this video is going to get a huge sure this video is going to get a huge sure this video is going to get a huge amount of dislikes amount of dislikes amount of dislikes make sure if you do like this video that make sure if you do like this video that make sure if you do like this video that you do go and hit that like button you do go and hit that like button you do go and hit that like button because i will need some people to because i will need some people to because i will need some people to counteract all the dislikes counteract all the dislikes counteract all the dislikes this video is going to get if you're this video is going to get if you're this video is going to get if you're interested in the fire movement and i interested in the fire movement and i interested in the fire movement and i completely miss the point and you want completely miss the point and you want completely miss the point and you want to educate me on it to educate me on it to educate me on it make sure you go and leave a comment make sure you go and leave a comment make sure you go and leave a comment below and tell me exactly what i got below and tell me exactly what i got below and tell me exactly what i got wrong and exactly how you're approaching wrong and exactly how you're approaching wrong and exactly how you're approaching it it it if you're interested in topics about if you're interested in topics about if you're interested in topics about personal finance about money about personal finance about money about personal finance about money about managing money about managing money about managing money about investments and all that kind of good investments and all that kind of good investments and all that kind of good stuff make sure you subscribe to this stuff make sure you subscribe to this stuff make sure you subscribe to this channel that is exactly what i talk channel that is exactly what i talk channel that is exactly what i talk about about about on this channel three times a week on a on this channel three times a week on a on this channel three times a week on a monday wednesday and friday monday wednesday and friday monday wednesday and friday make sure you hit the bell so you get make sure you hit the bell so you get make sure you hit the bell so you get notifications every single time one of notifications every single time one of notifications every single time one of my videos comes out my videos comes out my videos comes out and i'll see you guys later and i'll see you guys later and i'll see you guys later you WEBVTT Kind: captions Language: en it's brian preston the money guy it's brian preston the money guy it's brian preston the money guy and here's the thing when you have a and here's the thing when you have a and here's the thing when you have a -year retirement you can handle a few -year retirement you can handle a few -year retirement you can handle a few bumps and bruises bumps and bruises bumps and bruises and even market volatility absolutely and even market volatility absolutely and even market volatility absolutely but man does it look different but man does it look different but man does it look different when it's a -year plus retirement i when it's a -year plus retirement i when it's a -year plus retirement i think that's so interesting on a -year think that's so interesting on a -year think that's so interesting on a -year time frame bumps and bruises are time frame bumps and bruises are time frame bumps and bruises are just that on a -year time horizon a just that on a -year time horizon a just that on a -year time horizon a bump or a bruise could mean like bump or a bruise could mean like bump or a bruise could mean like having to cut off a limb it can be that having to cut off a limb it can be that having to cut off a limb it can be that severe over that long of a time well severe over that long of a time well severe over that long of a time well it's not even just it's not even just it's not even just market gyrations because let's face it market gyrations because let's face it market gyrations because let's face it when you retire when you're plus when you retire when you're plus when you retire when you're plus you probably have already bought your you probably have already bought your you probably have already bought your final house you probably know what you final house you probably know what you final house you probably know what you want out of life you've had all your want out of life you've had all your want out of life you've had all your children children children you got them out of the nest most likely you got them out of the nest most likely you got them out of the nest most likely a lot of life has already occurred sure a lot of life has already occurred sure a lot of life has already occurred sure when you retire in your s s and even when you retire in your s s and even when you retire in your s s and even s s s there's a lot of life it's not just the there's a lot of life it's not just the there's a lot of life it's not just the volatility of the marketplace it's also volatility of the marketplace it's also volatility of the marketplace it's also the life that you have to that you're the life that you have to that you're the life that you have to that you're building building building for yourself as you're making it through for yourself as you're making it through for yourself as you're making it through the journey there was actually someone the journey there was actually someone the journey there was actually someone out there out there out there in the financial world who we're in the financial world who we're in the financial world who we're familiar with uh pretty popular out familiar with uh pretty popular out familiar with uh pretty popular out there in the fire movement there in the fire movement there in the fire movement and he had an article that came out i and he had an article that came out i and he had an article that came out i think it was in december think it was in december think it was in december of last year is that right and this is of last year is that right and this is of last year is that right and this is what it said it said as a year old what it said it said as a year old what it said it said as a year old millionaire millionaire millionaire i tried to retire early at i tried to retire early at i tried to retire early at but failed here's what went wrong so i but failed here's what went wrong so i but failed here's what went wrong so i think i think this is pretty think i think this is pretty think i think this is pretty i love it when people are i love it when people are i love it when people are self-reflective and kind of look at this self-reflective and kind of look at this self-reflective and kind of look at this is financial samurai is financial samurai is financial samurai a lot of you guys have if you're in the a lot of you guys have if you're in the a lot of you guys have if you're in the fire movement you've followed sam fire movement you've followed sam fire movement you've followed sam for years he writes good content um for years he writes good content um for years he writes good content um and you can see he's now it's so and you can see he's now it's so and you can see he's now it's so interesting because he's out there on interesting because he's out there on interesting because he's out there on the west coast the west coast the west coast and i think when he started out he had a and i think when he started out he had a and i think when he started out he had a portfolio of over three million dollars portfolio of over three million dollars portfolio of over three million dollars in assets and he in assets and he in assets and he and he originally when he was years and he originally when he was years and he originally when he was years of age this seemed like it was going to of age this seemed like it was going to of age this seemed like it was going to be enough be enough be enough but sam has come out and been very but sam has come out and been very but sam has come out and been very transparent transparent transparent that he might have missed a few things that he might have missed a few things that he might have missed a few things when he actually left at when he actually left at when he actually left at to the point that he's now back in the to the point that he's now back in the to the point that he's now back in the workforce at workforce at workforce at what are those big learning experiences what are those big learning experiences what are those big learning experiences he has yeah so obviously you can go read he has yeah so obviously you can go read he has yeah so obviously you can go read the article but we kind of pulled out the article but we kind of pulled out the article but we kind of pulled out here are some of the things he said that here are some of the things he said that here are some of the things he said that really affected his fire plan number one really affected his fire plan number one really affected his fire plan number one he had a child i can't in my mind he had a child i can't in my mind he had a child i can't in my mind fathom thinking about being in fathom thinking about being in fathom thinking about being in retirement off the workforce retirement off the workforce retirement off the workforce completely relying on my portfolio completely relying on my portfolio completely relying on my portfolio before kids even entered in the equation before kids even entered in the equation before kids even entered in the equation because because because when you have a kid things just change when you have a kid things just change when you have a kid things just change financially and otherwise financially and otherwise financially and otherwise life is very different at least in my life is very different at least in my life is very different at least in my perspective post-child perspective post-child perspective post-child than it was pre-child it reminds me of than it was pre-child it reminds me of than it was pre-child it reminds me of the the famous mike tyson quote that the the famous mike tyson quote that the the famous mike tyson quote that everybody has a plan until they get everybody has a plan until they get everybody has a plan until they get punched in the mouth that's right punched in the mouth that's right punched in the mouth that's right it's kind of the same way everybody has it's kind of the same way everybody has it's kind of the same way everybody has a plan until you have a kiddo a plan until you have a kiddo a plan until you have a kiddo yep and then you rise man these things yep and then you rise man these things yep and then you rise man these things cause a lot of chaos so just be prepared cause a lot of chaos so just be prepared cause a lot of chaos so just be prepared children children children change things the second thing that sam change things the second thing that sam change things the second thing that sam noted is that he underestimated how low noted is that he underestimated how low noted is that he underestimated how low interest rates would go interest rates would go interest rates would go yeah this is something that we as yeah this is something that we as yeah this is something that we as financial advisors have to be very very financial advisors have to be very very financial advisors have to be very very careful of because we tell clients right careful of because we tell clients right careful of because we tell clients right now they're thinking hey now they're thinking hey now they're thinking hey should i refinance or what's going to should i refinance or what's going to should i refinance or what's going to happen to my savings account or where happen to my savings account or where happen to my savings account or where should i put my cash and we say look we should i put my cash and we say look we should i put my cash and we say look we know that know that know that historically rates are really really low historically rates are really really low historically rates are really really low right now right now right now but no one has a crystal ball certainly but no one has a crystal ball certainly but no one has a crystal ball certainly sam did not have his sam did not have his sam did not have his crystal ball pre-retirement nor do we crystal ball pre-retirement nor do we crystal ball pre-retirement nor do we have ours now have ours now have ours now so the financial markets can do some so the financial markets can do some so the financial markets can do some things that we things that we things that we might not expect yeah and this is a big might not expect yeah and this is a big might not expect yeah and this is a big thing and i know why sam put this on thing and i know why sam put this on thing and i know why sam put this on there it's because there it's because there it's because for retirees you're counting on yield for retirees you're counting on yield for retirees you're counting on yield this is how you're supposed to get this is how you're supposed to get this is how you're supposed to get safe returns is from you know having safe returns is from you know having safe returns is from you know having bonds and bonds and bonds and your savings accounts generate some your savings accounts generate some your savings accounts generate some yield on the interest that they're yield on the interest that they're yield on the interest that they're paying you paying you paying you you don't have to take a lot of risk and you don't have to take a lot of risk and you don't have to take a lot of risk and you can build some income coming in you can build some income coming in you can build some income coming in every year yep the problem also here's every year yep the problem also here's every year yep the problem also here's the second the second the second bad side of this is when people cannot bad side of this is when people cannot bad side of this is when people cannot get yield get yield get yield out of their safe investments what do out of their safe investments what do out of their safe investments what do they do they tiptoe they do they tiptoe they do they tiptoe further out on the wrist spectrum further out on the wrist spectrum further out on the wrist spectrum absolutely and that absolutely and that absolutely and that you know that's great when you're you know that's great when you're you know that's great when you're getting returned it's very getting returned it's very getting returned it's very scary when you have the volatility of a scary when you have the volatility of a scary when you have the volatility of a down market i think covid uh down market i think covid uh down market i think covid uh brought a lot of that to life for folks brought a lot of that to life for folks brought a lot of that to life for folks because yeah i think you said it so because yeah i think you said it so because yeah i think you said it so beautifully beautifully beautifully they tiptoe no one ever plans oh i'm they tiptoe no one ever plans oh i'm they tiptoe no one ever plans oh i'm gonna go further out of the risk gonna go further out of the risk gonna go further out of the risk spectrum further out spectrum further out spectrum further out but you have three four five years of but you have three four five years of but you have three four five years of really solid market performance and really solid market performance and really solid market performance and you're not rebalancing appropriately you're not rebalancing appropriately you're not rebalancing appropriately you might not even realize how much more you might not even realize how much more you might not even realize how much more aggressive your portfolio is aggressive your portfolio is aggressive your portfolio is than it should be so that's a huge thing than it should be so that's a huge thing than it should be so that's a huge thing you have to be aware of you have to be aware of you have to be aware of the third thing that sam noted was the third thing that sam noted was the third thing that sam noted was rising health insurance premiums rising health insurance premiums rising health insurance premiums he had sort of budgeted hey this is how he had sort of budgeted hey this is how he had sort of budgeted hey this is how much i think healthcare would cost in much i think healthcare would cost in much i think healthcare would cost in retirement retirement retirement and it changed yeah and that's and it changed yeah and that's and it changed yeah and that's definitely i mean this is something definitely i mean this is something definitely i mean this is something we've noticed look i'm going to tell you we've noticed look i'm going to tell you we've noticed look i'm going to tell you this is a true concern for anybody who's this is a true concern for anybody who's this is a true concern for anybody who's retiring early i'm talking about retiring early i'm talking about retiring early i'm talking about somebody's in their s somebody's in their s somebody's in their s even years of age because you do even years of age because you do even years of age because you do not qualify for medicare not qualify for medicare not qualify for medicare until you reach and that's what a lot until you reach and that's what a lot until you reach and that's what a lot of people i mean you can be a great of people i mean you can be a great of people i mean you can be a great saver a great accumulator of wealth saver a great accumulator of wealth saver a great accumulator of wealth but if you don't have your health but if you don't have your health but if you don't have your health insurance it gets a little scary now insurance it gets a little scary now insurance it gets a little scary now look look look we know when um the affordable care act we know when um the affordable care act we know when um the affordable care act was passed it actually seemed like it was passed it actually seemed like it was passed it actually seemed like it was going to be a was going to be a was going to be a lifeline for early retirees well the lifeline for early retirees well the lifeline for early retirees well the cost is expensive cost is expensive cost is expensive the exchanges like i know here in the exchanges like i know here in the exchanges like i know here in tennessee we ran into a lot of problems tennessee we ran into a lot of problems tennessee we ran into a lot of problems where just a lot of the insurance where just a lot of the insurance where just a lot of the insurance providers opted out of even providers opted out of even providers opted out of even offering coverage on the exchange in offering coverage on the exchange in offering coverage on the exchange in tennessee it hasn't been everything we tennessee it hasn't been everything we tennessee it hasn't been everything we had hoped had hoped had hoped but i do i have optimism i'm always a but i do i have optimism i'm always a but i do i have optimism i'm always a glass half full glass half full glass half full i'm hopeful that health insurance i'm hopeful that health insurance i'm hopeful that health insurance becomes something becomes something becomes something that you can get in the future without that you can get in the future without that you can get in the future without necessarily working for an employer necessarily working for an employer necessarily working for an employer now all three of these in my mind were now all three of these in my mind were now all three of these in my mind were sort of quantitative right they were sort of quantitative right they were sort of quantitative right they were you know you can there were dollars and you know you can there were dollars and you know you can there were dollars and cents this fourth reason sam said he had cents this fourth reason sam said he had cents this fourth reason sam said he had to unretire to unretire to unretire the bliss of early retirement didn't the bliss of early retirement didn't the bliss of early retirement didn't last as long as he thought it would last as long as he thought it would last as long as he thought it would we all have these visions especially we all have these visions especially we all have these visions especially we're in our s and s of thinking man we're in our s and s of thinking man we're in our s and s of thinking man i'm just so ready to not have to show up i'm just so ready to not have to show up i'm just so ready to not have to show up to work and not have to work up early to work and not have to work up early to work and not have to work up early and not have to deal with that boss well a lot of times it's like the dog well a lot of times it's like the dog well a lot of times it's like the dog that chases the car once you that chases the car once you that chases the car once you catch the car you got to figure out all catch the car you got to figure out all catch the car you got to figure out all right what do i do with this now right what do i do with this now right what do i do with this now i think it's interesting now look i'm i think it's interesting now look i'm i think it's interesting now look i'm going to go ahead and tell you guys i going to go ahead and tell you guys i going to go ahead and tell you guys i have a bias for you have a bias for you have a bias for you and you probably saw me looking over my and you probably saw me looking over my and you probably saw me looking over my shoulder we actually have a book over shoulder we actually have a book over shoulder we actually have a book over here called here called here called tap dancing to work it's about warren tap dancing to work it's about warren tap dancing to work it's about warren buffett buffett buffett you know and he he loves what he does you know and he he loves what he does you know and he he loves what he does for a living for a living for a living i am in that same camp as i know that i i am in that same camp as i know that i i am in that same camp as i know that i am doing what i was put am doing what i was put am doing what i was put on this earth to do sure so i do have a on this earth to do sure so i do have a on this earth to do sure so i do have a bias in that but i do think that a lot bias in that but i do think that a lot bias in that but i do think that a lot of us of us of us we've seen this in our happiness studies we've seen this in our happiness studies we've seen this in our happiness studies when we've done shows on what creates when we've done shows on what creates when we've done shows on what creates happiness happiness happiness and where's the intersection between and where's the intersection between and where's the intersection between your financial life and your happy life your financial life and your happy life your financial life and your happy life the purpose of your work meaning that if the purpose of your work meaning that if the purpose of your work meaning that if you are getting fulfillment if you feel you are getting fulfillment if you feel you are getting fulfillment if you feel like in your own small way you're making like in your own small way you're making like in your own small way you're making the world a better place the world a better place the world a better place by waking up and going to work it does by waking up and going to work it does by waking up and going to work it does give you that fulfilled purpose-filled give you that fulfilled purpose-filled give you that fulfilled purpose-filled life life life and it's one of those things that i and it's one of those things that i and it's one of those things that i think people underestimate so be careful think people underestimate so be careful think people underestimate so be careful and make sure even if you are part of and make sure even if you are part of and make sure even if you are part of the fire movement the fire movement the fire movement while you're working make sure it's work while you're working make sure it's work while you're working make sure it's work that you enjoy now and don't don't that you enjoy now and don't don't that you enjoy now and don't don't mishear us mishear us mishear us there are a lot of folks who say i do there are a lot of folks who say i do there are a lot of folks who say i do want to check out of the workforce i want to check out of the workforce i want to check out of the workforce i want to travel the world and do all want to travel the world and do all want to travel the world and do all those things and that's great those things and that's great those things and that's great nothing wrong with that what we would nothing wrong with that what we would nothing wrong with that what we would encourage you to think about we tell encourage you to think about we tell encourage you to think about we tell retirees this all the time is retirees this all the time is retirees this all the time is don't just think about what you are don't just think about what you are don't just think about what you are retiring from retiring from retiring from know exactly what it is you are retiring know exactly what it is you are retiring know exactly what it is you are retiring to whether that be laying on the beach to whether that be laying on the beach to whether that be laying on the beach or volunteering or a second career or volunteering or a second career or volunteering or a second career that is especially true of fire movement that is especially true of fire movement that is especially true of fire movement folks because you have a folks because you have a folks because you have a lot longer to retire to someone than a lot longer to retire to someone than a lot longer to retire to someone than a traditional retiree traditional retiree traditional retiree i think that's a great point we have i think that's a great point we have i think that's a great point we have some clients that have actually fire some clients that have actually fire some clients that have actually fire participants participants participants retired in their s and the ones that retired in their s and the ones that retired in their s and the ones that have done it the best have done it the best have done it the best already kind of have the backup plan already kind of have the backup plan already kind of have the backup plan figured out i mean we have if you ever figured out i mean we have if you ever figured out i mean we have if you ever come to an office tour come to an office tour come to an office tour you're going to see some crazy pictures you're going to see some crazy pictures you're going to see some crazy pictures i mean we have um i mean we have um i mean we have um we have a client who is my age but he we have a client who is my age but he we have a client who is my age but he makes me feel bad about myself when i makes me feel bad about myself when i makes me feel bad about myself when i look at his pictures because he's look at his pictures because he's look at his pictures because he's actually actually actually lifeguarding playing dev david lifeguarding playing dev david lifeguarding playing dev david hasselhoff exactly right hasselhoff exactly right hasselhoff exactly right um is his you know backup very um is his you know backup very um is his you know backup very successful executive career and now he's successful executive career and now he's successful executive career and now he's a lifeguard a lifeguard a lifeguard good for him i mean he kind of knows good for him i mean he kind of knows good for him i mean he kind of knows where he went doing that where he went doing that where he went doing that so we thought these were four uh so we thought these were four uh so we thought these were four uh poignant points that sam put in his poignant points that sam put in his poignant points that sam put in his article but we thought you know just article but we thought you know just article but we thought you know just from our experience there are some other from our experience there are some other from our experience there are some other honorable mentions worth noting honorable mentions worth noting honorable mentions worth noting uh the first one you know sam and said uh the first one you know sam and said uh the first one you know sam and said hey i had a kid and it changed things hey i had a kid and it changed things hey i had a kid and it changed things i'd argue for a lot of retirees it's not i'd argue for a lot of retirees it's not i'd argue for a lot of retirees it's not just the front end of having a kid just the front end of having a kid just the front end of having a kid it's the entire time a kid is living in it's the entire time a kid is living in it's the entire time a kid is living in your house because we have your house because we have your house because we have cars and colleges and after school cars and colleges and after school cars and colleges and after school activities and all the things activities and all the things activities and all the things if you're trying to check out early if you're trying to check out early if you're trying to check out early there is some wild variability in what there is some wild variability in what there is some wild variability in what your kids have going on until they're your kids have going on until they're your kids have going on until they're truly out of the nest truly out of the nest truly out of the nest when i read this i was like sam you when i read this i was like sam you when i read this i was like sam you haven't seen nothing yet because haven't seen nothing yet because haven't seen nothing yet because he was complaining about the two he was complaining about the two he was complaining about the two thousand dollar a month daycare thousand dollar a month daycare thousand dollar a month daycare and preschool type expenses it's like oh and preschool type expenses it's like oh and preschool type expenses it's like oh just wait sam just wait sam just wait sam it gets even more um from there so it gets even more um from there so it gets even more um from there so kiddos are definitely something you kiddos are definitely something you kiddos are definitely something you gotta take into account gotta take into account gotta take into account the next one i thought that was the next one i thought that was the next one i thought that was interesting is housing now this is interesting is housing now this is interesting is housing now this is something uh i think back to year old something uh i think back to year old something uh i think back to year old bohansen bohansen bohansen if year old bohansen was going to if year old bohansen was going to if year old bohansen was going to name early retirement and what that name early retirement and what that name early retirement and what that would look like would look like would look like it would have looked very different than it would have looked very different than it would have looked very different than what in his mid-s bo hansen what in his mid-s bo hansen what in his mid-s bo hansen actually knows it would need because actually knows it would need because actually knows it would need because housing was different what made sense housing was different what made sense housing was different what made sense for me and my wife for me and my wife for me and my wife was like a sleeper sofa and a kitchen was like a sleeper sofa and a kitchen was like a sleeper sofa and a kitchen and a bathroom and a bathroom and a bathroom what makes sense now for our family four what makes sense now for our family four what makes sense now for our family four is very different than that so you have is very different than that so you have is very different than that so you have to recognize to recognize to recognize as life changes so too do your as life changes so too do your as life changes so too do your preferences on what you can accept for preferences on what you can accept for preferences on what you can accept for housing and that sort of thing yeah i housing and that sort of thing yeah i housing and that sort of thing yeah i think it's a it's a think it's a it's a think it's a it's a very notable difference if you're very notable difference if you're very notable difference if you're retiring for plus years retiring for plus years retiring for plus years there's gonna be a lot of life that will there's gonna be a lot of life that will there's gonna be a lot of life that will evolve it's not just the kiddos evolve it's not just the kiddos evolve it's not just the kiddos it's just that you're tasting your it's just that you're tasting your it's just that you're tasting your desires and what actually brings you desires and what actually brings you desires and what actually brings you fulfillment might evolve as well that's fulfillment might evolve as well that's fulfillment might evolve as well that's right uh and the other honorable mention right uh and the other honorable mention right uh and the other honorable mention that i thought that i thought that i thought was so interesting i wonder if we were was so interesting i wonder if we were was so interesting i wonder if we were to interview sam to interview sam to interview sam and say hey sam when you were doing your and say hey sam when you were doing your and say hey sam when you were doing your early retirement planning early retirement planning early retirement planning did you account for the fact that in the did you account for the fact that in the did you account for the fact that in the year there was going to be a global year there was going to be a global year there was going to be a global viral outbreak that was going to have a viral outbreak that was going to have a viral outbreak that was going to have a huge huge huge pandemic and the world economy was going pandemic and the world economy was going pandemic and the world economy was going to shut down and people weren't going to to shut down and people weren't going to to shut down and people weren't going to be able to leave their homes and people be able to leave their homes and people be able to leave their homes and people were going to lose their jobs was that were going to lose their jobs was that were going to lose their jobs was that built into your plan built into your plan built into your plan and i just have a feeling he's going to and i just have a feeling he's going to and i just have a feeling he's going to say no well say no well say no well nobody has i mean here's the thing over nobody has i mean here's the thing over nobody has i mean here's the thing over the next decade the next decade the next decade there will be two three maybe even four there will be two three maybe even four there will be two three maybe even four events events events nobody will foresee exactly i mean you nobody will foresee exactly i mean you nobody will foresee exactly i mean you can make a plan can make a plan can make a plan but plans are never going to be a but plans are never going to be a but plans are never going to be a hundred percent because you just don't hundred percent because you just don't hundred percent because you just don't know all the variables you don't know know all the variables you don't know know all the variables you don't know what inflation is going to be you don't what inflation is going to be you don't what inflation is going to be you don't know what market returns are going to be know what market returns are going to be know what market returns are going to be so you have to just kind of craft a plan so you have to just kind of craft a plan so you have to just kind of craft a plan and this is actually a great setup as we and this is actually a great setup as we and this is actually a great setup as we get into get into get into case studies is you try to take into all case studies is you try to take into all case studies is you try to take into all the data you the data you the data you do know that even accounts for all the do know that even accounts for all the do know that even accounts for all the unforeseen circumstances of the past unforeseen circumstances of the past unforeseen circumstances of the past so we can try to figure out what gives so we can try to figure out what gives so we can try to figure out what gives me the highest probability me the highest probability me the highest probability of making it through no matter what this of making it through no matter what this of making it through no matter what this crazy world throws at me that's right crazy world throws at me that's right crazy world throws at me that's right so that leads to let's kind of talk so that leads to let's kind of talk so that leads to let's kind of talk about about about case studies probability of success case studies probability of success case studies probability of success matters when we're talking about matters when we're talking about matters when we're talking about financial independence when you're financial independence when you're financial independence when you're retiring early retiring early retiring early with fire um and here's i was surprised with fire um and here's i was surprised with fire um and here's i was surprised as we started doing prep on with the as we started doing prep on with the as we started doing prep on with the case studies case studies case studies i have never seen retirement i have never seen retirement i have never seen retirement scenarios that had a zero percent chance scenarios that had a zero percent chance scenarios that had a zero percent chance of success i mean all of my retirement of success i mean all of my retirement of success i mean all of my retirement meetings i've been in meetings i've been in meetings i've been in in my i mean i'm in my third decade of in my i mean i'm in my third decade of in my i mean i'm in my third decade of doing financial planning doing financial planning doing financial planning i've never seen zero potential of i've never seen zero potential of i've never seen zero potential of success yeah so when we started running success yeah so when we started running success yeah so when we started running some of these hey i want to exit at some of these hey i want to exit at some of these hey i want to exit at and i need this level of living expense and i need this level of living expense and i need this level of living expense it wasn't like oh well you need the best it wasn't like oh well you need the best it wasn't like oh well you need the best market ever to make this work it was no market ever to make this work it was no market ever to make this work it was no there is a there is a there is a zero percent chance this money will last zero percent chance this money will last zero percent chance this money will last you so the end of your life you so the end of your life you so the end of your life uh if you're entertaining a scenario uh if you're entertaining a scenario uh if you're entertaining a scenario that even has that even has that even has that sort of opportunity it should cause that sort of opportunity it should cause that sort of opportunity it should cause you to pause and think for a second you to pause and think for a second you to pause and think for a second man what what am i actually looking at man what what am i actually looking at man what what am i actually looking at here yeah so that's why it's important here yeah so that's why it's important here yeah so that's why it's important we do this for all of our clients you we do this for all of our clients you we do this for all of our clients you got to stress test the plan you gotta got to stress test the plan you gotta got to stress test the plan you gotta what do what are you not accounting for what do what are you not accounting for what do what are you not accounting for and how do i get it in there and how do i get it in there and how do i get it in there and then also here's something i want to and then also here's something i want to and then also here's something i want to warn you guys because i i have warn you guys because i i have warn you guys because i i have enough clients and i've looked in enough enough clients and i've looked in enough enough clients and i've looked in enough forums forums forums that i worry a little bit about fire that i worry a little bit about fire that i worry a little bit about fire participants of fire and the fact that participants of fire and the fact that participants of fire and the fact that you get you in your own little echo you get you in your own little echo you get you in your own little echo chamber okay chamber okay chamber okay meaning that you go out there and you go meaning that you go out there and you go meaning that you go out there and you go to this forum you go to this blog to this forum you go to this blog to this forum you go to this blog they get you all hyped up and excited they get you all hyped up and excited they get you all hyped up and excited about the movement that you joined about the movement that you joined about the movement that you joined that it can kind of be nudging you in a that it can kind of be nudging you in a that it can kind of be nudging you in a direction direction direction and creating some blind spots of things and creating some blind spots of things and creating some blind spots of things you might not have even accounted for you might not have even accounted for you might not have even accounted for yeah i think one of the things yeah i think one of the things yeah i think one of the things you said as you think about early you said as you think about early you said as you think about early retirement exiting the workforce a lot retirement exiting the workforce a lot retirement exiting the workforce a lot of folks don't realize of folks don't realize of folks don't realize that depending on your vocation your that depending on your vocation your that depending on your vocation your career that path career that path career that path may just be one way yeah so it's um so may just be one way yeah so it's um so may just be one way yeah so it's um so here's what i also this is the last here's what i also this is the last here's what i also this is the last thing thing thing and this is take this because we're all and this is take this because we're all and this is take this because we're all shaped shaped shaped by the life we grew up in i grew up by the life we grew up in i grew up by the life we grew up in i grew up a lot of anybody's been watching the a lot of anybody's been watching the a lot of anybody's been watching the show long enough you know that my father show long enough you know that my father show long enough you know that my father lost his job in his early s i think he lost his job in his early s i think he lost his job in his early s i think he was years of age he had a middle was years of age he had a middle was years of age he had a middle level management job level management job level management job they got out of that market and they got out of that market and they got out of that market and basically just basically just basically just did an apple cart turnover of all their did an apple cart turnover of all their did an apple cart turnover of all their employees it is hard employees it is hard employees it is hard as a mid year old to go out there and as a mid year old to go out there and as a mid year old to go out there and get back into the workforce so get back into the workforce so get back into the workforce so for you to voluntarily leave for you to voluntarily leave for you to voluntarily leave choose that you're going to leave your choose that you're going to leave your choose that you're going to leave your job to retire job to retire job to retire make sure you measure twice cut once make sure you measure twice cut once make sure you measure twice cut once because here's what i'm worried about because here's what i'm worried about because here's what i'm worried about you're leaving the party if we think you're leaving the party if we think you're leaving the party if we think about the visualization about the visualization about the visualization of your cycle of earning potential over of your cycle of earning potential over of your cycle of earning potential over your life expectancy and the years that your life expectancy and the years that your life expectancy and the years that you're in the workforce you're in the workforce you're in the workforce if if we're thinking about this in terms if if we're thinking about this in terms if if we're thinking about this in terms of an analogy of a good of an analogy of a good of an analogy of a good party you've essentially gotten to the party you've essentially gotten to the party you've essentially gotten to the party it took a few years for party it took a few years for party it took a few years for you know the good songs to keep the good you know the good songs to keep the good you know the good songs to keep the good the cool kids to show up the dj to start the cool kids to show up the dj to start the cool kids to show up the dj to start playing your favorite songs and you know playing your favorite songs and you know playing your favorite songs and you know it's starting to heat up a little bit it's starting to heat up a little bit it's starting to heat up a little bit right as it heats up right as it heats up right as it heats up right as the party is starting to kind right as the party is starting to kind right as the party is starting to kind of gel of gel of gel like well guys i'm out this is great like well guys i'm out this is great like well guys i'm out this is great but i think i've had enough i'm out of but i think i've had enough i'm out of but i think i've had enough i'm out of here and you leave and what i mean by here and you leave and what i mean by here and you leave and what i mean by that is that that is that that is that this is the the years of your working this is the the years of your working this is the the years of your working career that you make career that you make career that you make peak maximum money you build the size of peak maximum money you build the size of peak maximum money you build the size of your shovel your shovel your shovel for building assets you're actually for building assets you're actually for building assets you're actually tapping out so if you retire at tapping out so if you retire at tapping out so if you retire at you haven't even climbed the mount all you haven't even climbed the mount all you haven't even climbed the mount all the way if you're leaving at the way if you're leaving at the way if you're leaving at still not there you know it's because still not there you know it's because still not there you know it's because you a lot of peak earning you a lot of peak earning you a lot of peak earning years are to years of age what i years are to years of age what i years are to years of age what i think is beautiful about this think is beautiful about this think is beautiful about this illustration that daniel put together is illustration that daniel put together is illustration that daniel put together is this shows the this shows the this shows the median income in this country and then median income in this country and then median income in this country and then it shows kind of where the if you're in it shows kind of where the if you're in it shows kind of where the if you're in the lower the lower the lower income brackets if you're in the of income brackets if you're in the of income brackets if you're in the of income or if you're in the percent of income or if you're in the percent of income or if you're in the percent of income you're in a higher income bracket income you're in a higher income bracket income you're in a higher income bracket which ages it kind of peaks i thought it which ages it kind of peaks i thought it which ages it kind of peaks i thought it was interesting was interesting was interesting all of them tend to peak in that to all of them tend to peak in that to all of them tend to peak in that to year range if you're someone who's year range if you're someone who's year range if you're someone who's exiting early exiting early exiting early there is a lot of opportunity cost there is a lot of opportunity cost there is a lot of opportunity cost that's going to be left on the table that's going to be left on the table that's going to be left on the table that's one of the things we'll kind of that's one of the things we'll kind of that's one of the things we'll kind of talk through talk through talk through in our case studies so it is worth in our case studies so it is worth in our case studies so it is worth repeating repeating repeating measure twice cut once because it might measure twice cut once because it might measure twice cut once because it might be harder it might be a one-way street be harder it might be a one-way street be harder it might be a one-way street so just make sure if you are leaving the so just make sure if you are leaving the so just make sure if you are leaving the workforce workforce workforce you don't assume it's going to be so you don't assume it's going to be so you don't assume it's going to be so easy to come right back into it you WEBVTT Kind: captions Language: en the biggest thing the fire movement gets the biggest thing the fire movement gets the biggest thing the fire movement gets wrong it's Brian wrong it's Brian wrong it's Brian Preston the bloody guy yeah Brian I'm I Preston the bloody guy yeah Brian I'm I Preston the bloody guy yeah Brian I'm I am really really excited about this am really really excited about this am really really excited about this because this is a you know we've talked because this is a you know we've talked because this is a you know we've talked about this a little bit we were worried about this a little bit we were worried about this a little bit we were worried that this could be boring show topic we that this could be boring show topic we that this could be boring show topic we were just arted kind of going through were just arted kind of going through were just arted kind of going through our ideas for it could be and then when our ideas for it could be and then when our ideas for it could be and then when we dove into it so no no this isn't we dove into it so no no this isn't we dove into it so no no this isn't boring this is actually exciting and boring this is actually exciting and boring this is actually exciting and this is stuff that the money guy family this is stuff that the money guy family this is stuff that the money guy family needs to know I think the fire movement needs to know I think the fire movement needs to know I think the fire movement in general and MO if you're brand new in general and MO if you're brand new in general and MO if you're brand new and you're like fire movement I've been and you're like fire movement I've been and you're like fire movement I've been a money guy fan but I saw this thing I a money guy fan but I saw this thing I a money guy fan but I saw this thing I didn't know what the this whole fire didn't know what the this whole fire didn't know what the this whole fire title meant it's financially independent title meant it's financially independent title meant it's financially independent and retire early these are people that and retire early these are people that and retire early these are people that are leaving the workforce before early are leaving the workforce before early are leaving the workforce before early retirement you know which is mid 's or retirement you know which is mid 's or retirement you know which is mid 's or so because most people count on a so because most people count on a so because most people count on a -year retirement but this is a new -year retirement but this is a new -year retirement but this is a new phenomenon a new movement where people phenomenon a new movement where people phenomenon a new movement where people are talking about leaving the workforce are talking about leaving the workforce are talking about leaving the workforce in their s or s and it's um even in in their s or s and it's um even in in their s or s and it's um even in the s and we'll talk about that and I the s and we'll talk about that and I the s and we'll talk about that and I always here's the thing when I hear always here's the thing when I hear always here's the thing when I hear people talk about the fire movement my people talk about the fire movement my people talk about the fire movement my first thought first thought first thought bless their heart on the fact that they bless their heart on the fact that they bless their heart on the fact that they focus on the fruit of where they're focus on the fruit of where they're focus on the fruit of where they're going and because Bo I put a few words going and because Bo I put a few words going and because Bo I put a few words on here can you read these words out on here can you read these words out on here can you read these words out loud to me okay so there are a few you loud to me okay so there are a few you loud to me okay so there are a few you me to say what what they don't say what me to say what what they don't say what me to say what what they don't say what they mine I'll just read it to me fat they mine I'll just read it to me fat they mine I'll just read it to me fat fire okay lean fire okay barista fire fire okay lean fire okay barista fire fire okay lean fire okay barista fire and then Coast fire so when I hear this and then Coast fire so when I hear this and then Coast fire so when I hear this list I feel like I'm standing in line at list I feel like I'm standing in line at list I feel like I'm standing in line at Starbucks and somebody is doing that you Starbucks and somebody is doing that you Starbucks and somebody is doing that you know hold the latte no foam or foam and know hold the latte no foam or foam and know hold the latte no foam or foam and I'm like oh my gosh what are we here at I'm like oh my gosh what are we here at I'm like oh my gosh what are we here at a coffee shop or are we doing something a coffee shop or are we doing something a coffee shop or are we doing something cos you guys and this is why I say bless cos you guys and this is why I say bless cos you guys and this is why I say bless your heart is the fact that I know what your heart is the fact that I know what your heart is the fact that I know what you want you want to make sure you have you want you want to make sure you have you want you want to make sure you have an army of dollar bills that covers you an army of dollar bills that covers you an army of dollar bills that covers you so you don't have to work as much with so you don't have to work as much with so you don't have to work as much with your hands your backs your brains you your hands your backs your brains you your hands your backs your brains you can go in a different direction and the can go in a different direction and the can go in a different direction and the thing is this is really the rocky plot thing is this is really the rocky plot thing is this is really the rocky plot on how you train is because that's on how you train is because that's on how you train is because that's because that's the one with Drago and because that's the one with Drago and because that's the one with Drago and rocky well because you think I think rocky well because you think I think rocky well because you think I think about this thing's is that you guys are about this thing's is that you guys are about this thing's is that you guys are focusing on the fruit the motivation and focusing on the fruit the motivation and focusing on the fruit the motivation and where you want to be but you need where you want to be but you need where you want to be but you need the old you've come to the old trainer the old you've come to the old trainer the old you've come to the old trainer that you know it's crocheting he's on that you know it's crocheting he's on that you know it's crocheting he's on the front porch yelling at kids and he's the front porch yelling at kids and he's the front porch yelling at kids and he's going to be the one it is me and I am going to be the one it is me and I am going to be the one it is me and I am going to be your bridge and we're going going to be your bridge and we're going going to be your bridge and we're going to talk about all the things that when I to talk about all the things that when I to talk about all the things that when I go read blogs about fire they they hit go read blogs about fire they they hit go read blogs about fire they they hit around these things or they go so deep around these things or they go so deep around these things or they go so deep that after you read it you go what did that after you read it you go what did that after you read it you go what did they just say or you know because it was they just say or you know because it was they just say or you know because it was just all these things there's a lot of just all these things there's a lot of just all these things there's a lot of fear and I get it you're measuring twice fear and I get it you're measuring twice fear and I get it you're measuring twice cutting once make sure you get it right cutting once make sure you get it right cutting once make sure you get it right I am that old guy I'm going to help you I am that old guy I'm going to help you I am that old guy I'm going to help you we know how to help people retire but we know how to help people retire but we know how to help people retire but that's why so even if you're not part of that's why so even if you're not part of that's why so even if you're not part of the fire moon if you're maybe just a the fire moon if you're maybe just a the fire moon if you're maybe just a normal person quickly approaching normal person quickly approaching normal person quickly approaching retirement this show is going to be the retirement this show is going to be the retirement this show is going to be the show that you're going to go show that you're going to go show that you're going to go I'm putting that in the greatest hits I'm putting that in the greatest hits I'm putting that in the greatest hits because they talked about some things because they talked about some things because they talked about some things that definitely impact anybody who's that definitely impact anybody who's that definitely impact anybody who's making that transition from saver making that transition from saver making that transition from saver accumulator and builder and now you need accumulator and builder and now you need accumulator and builder and now you need to know do I have enough and how do I to know do I have enough and how do I to know do I have enough and how do I would go from saver to spender we are would go from saver to spender we are would go from saver to spender we are going to be that bridge for you on going to be that bridge for you on going to be that bridge for you on today's show the thing that we care today's show the thing that we care today's show the thing that we care about is educating you guys so that you about is educating you guys so that you about is educating you guys so that you will have abundance in your life and one will have abundance in your life and one will have abundance in your life and one of the ways that you make sure you have of the ways that you make sure you have of the ways that you make sure you have abundance is you understand some of the abundance is you understand some of the abundance is you understand some of the concepts so we're gonna kind of go concepts so we're gonna kind of go concepts so we're gonna kind of go through today and so we're gonna walk through today and so we're gonna walk through today and so we're gonna walk through how fire participants can avoid through how fire participants can avoid through how fire participants can avoid running out of money the number one running out of money the number one running out of money the number one factor that can destroy your fire goals factor that can destroy your fire goals factor that can destroy your fire goals how to actually structure your accounts how to actually structure your accounts how to actually structure your accounts if you're thinking about fire even just if you're thinking about fire even just if you're thinking about fire even just how to structure be feeling about how to structure be feeling about how to structure be feeling about retirement in general and then we gonna retirement in general and then we gonna retirement in general and then we gonna even talk about some of the downsides to even talk about some of the downsides to even talk about some of the downsides to possibly exiting the workforce early if possibly exiting the workforce early if possibly exiting the workforce early if you're part of the fire mode and bowi you're part of the fire mode and bowi you're part of the fire mode and bowi don't don't take my grumpy old man don't don't take my grumpy old man don't don't take my grumpy old man yelling at you from the front porches yelling at you from the front porches yelling at you from the front porches I'm grumpy or against the fire movement I'm grumpy or against the fire movement I'm grumpy or against the fire movement in general matter of fact this show is in general matter of fact this show is in general matter of fact this show is inspired by one of our friends of the inspired by one of our friends of the inspired by one of our friends of the show Jason we don't give any more show Jason we don't give any more show Jason we don't give any more details on Jason but he is so tickled details on Jason but he is so tickled details on Jason but he is so tickled that we're doing this show so let's kind that we're doing this show so let's kind that we're doing this show so let's kind of without much more ado let's talk of without much more ado let's talk of without much more ado let's talk about number one how far participants about number one how far participants about number one how far participants can avoid running out of money yep so can avoid running out of money yep so can avoid running out of money yep so but I felt like this one needed a but I felt like this one needed a but I felt like this one needed a disclaimer okay if we were laying a disclaimer okay if we were laying a disclaimer okay if we were laying a disclaimer for because guess what we're disclaimer for because guess what we're disclaimer for because guess what we're about to do we're about to give about to do we're about to give about to do we're about to give benchmarks rules of thumbs things as you benchmarks rules of thumbs things as you benchmarks rules of thumbs things as you could should consider when you're trying could should consider when you're trying could should consider when you're trying to figure out how you should create a to figure out how you should create a to figure out how you should create a plan for building but what's what's the plan for building but what's what's the plan for building but what's what's the reality of what really goes on as a reality of what really goes on as a reality of what really goes on as a financial planner yeah so before you financial planner yeah so before you financial planner yeah so before you ever make a big decision ever make a big decision ever make a big decision and I gotta say leaving the workforces and I gotta say leaving the workforces and I gotta say leaving the workforces may be one of the biggest financial may be one of the biggest financial may be one of the biggest financial decisions you'll make in your entire decisions you'll make in your entire decisions you'll make in your entire life you have to make sure that you life you have to make sure that you life you have to make sure that you don't just measure once measure twice don't just measure once measure twice don't just measure once measure twice measure three times before you cut there measure three times before you cut there measure three times before you cut there are a number of things you need to look are a number of things you need to look are a number of things you need to look at to make sure before you take that at to make sure before you take that at to make sure before you take that leave before you let that water go down leave before you let that water go down leave before you let that water go down over that resonation where you turning over that resonation where you turning over that resonation where you turning that resignation letter you fully that resignation letter you fully that resignation letter you fully understand what you're getting into so I understand what you're getting into so I understand what you're getting into so I mean we talk about because there's mean we talk about because there's mean we talk about because there's several things all retirements are going several things all retirements are going several things all retirements are going to have a few things you need to you to have a few things you need to you to have a few things you need to you need to go through these inventory lists need to go through these inventory lists need to go through these inventory lists of you need to know what are you of you need to know what are you of you need to know what are you spending what's the actual household spending what's the actual household spending what's the actual household living expenses you need to know what's living expenses you need to know what's living expenses you need to know what's some income sources that will come on some income sources that will come on some income sources that will come on maybe they don't come on initially but maybe they don't come on initially but maybe they don't come on initially but it doesn't it wouldn't you know most of it doesn't it wouldn't you know most of it doesn't it wouldn't you know most of us have access to Social Security and us have access to Social Security and us have access to Social Security and most of us some of us who are a little most of us some of us who are a little most of us some of us who are a little bit older might have access to a pension bit older might have access to a pension bit older might have access to a pension of some sort those things will of some sort those things will of some sort those things will definitely have an impact and then both definitely have an impact and then both definitely have an impact and then both what we they consider foundational to what we they consider foundational to what we they consider foundational to building financial independence you're building financial independence you're building financial independence you're someone who wants to be on that journey someone who wants to be on that journey someone who wants to be on that journey of financial independence building you of financial independence building you of financial independence building you have to have to have to be tracking your have to have to have to be tracking your have to have to have to be tracking your net worth net worth net worth annually doing an annual net worth annually doing an annual net worth annually doing an annual net worth statement we think it is the cornerstone statement we think it is the cornerstone statement we think it is the cornerstone of sound financial management so you've of sound financial management so you've of sound financial management so you've got to be doing that got to be making got to be doing that got to be making got to be doing that got to be making sure you understand where you are now so sure you understand where you are now so sure you understand where you are now so that you can really have a picture for that you can really have a picture for that you can really have a picture for where you're moving to and then the last where you're moving to and then the last where you're moving to and then the last thing in disclaimer is that we're about thing in disclaimer is that we're about thing in disclaimer is that we're about to give you these guidelines realize to give you these guidelines realize to give you these guidelines realize this is an entertainment / educational this is an entertainment / educational this is an entertainment / educational show we think before anybody makes a big show we think before anybody makes a big show we think before anybody makes a big decision go get a full analysis fit with decision go get a full analysis fit with decision go get a full analysis fit with Monte Carlo simulations so you that it's Monte Carlo simulations so you that it's Monte Carlo simulations so you that it's do specifically custom-designed for your do specifically custom-designed for your do specifically custom-designed for your life situations you know with that let's life situations you know with that let's life situations you know with that let's jump into here's the biggest thing that jump into here's the biggest thing that jump into here's the biggest thing that I think fire people need some guidance I think fire people need some guidance I think fire people need some guidance on and I think we are the perfect tour on and I think we are the perfect tour on and I think we are the perfect tour guides for this but we are going to be guides for this but we are going to be guides for this but we are going to be the ones to help you navigate how to the ones to help you navigate how to the ones to help you navigate how to make it through this treacherous trail make it through this treacherous trail make it through this treacherous trail is the safe withdrawal rate so is is the safe withdrawal rate so is is the safe withdrawal rate so is immediately when you say that I think immediately when you say that I think immediately when you say that I think about okay if we're gonna have a term about okay if we're gonna have a term about okay if we're gonna have a term that maybe people aren't familiar with that maybe people aren't familiar with that maybe people aren't familiar with let's define that so what is a let's define that so what is a let's define that so what is a withdrawal rate which are already some withdrawal rate which are already some withdrawal rate which are already some of the percentage of your nest egg you of the percentage of your nest egg you of the percentage of your nest egg you take every year to live off of its kind take every year to live off of its kind take every year to live off of its kind of you can think of it as your salary in of you can think of it as your salary in of you can think of it as your salary in retirement it's what you're pulling off retirement it's what you're pulling off retirement it's what you're pulling off your portfolio to pay for your living your portfolio to pay for your living your portfolio to pay for your living expenses and I always like I like people expenses and I always like I like people expenses and I always like I like people to think about this is that if you do it to think about this is that if you do it to think about this is that if you do it right I think a lot you know because we right I think a lot you know because we right I think a lot you know because we talk about army of dollar bills we want talk about army of dollar bills we want talk about army of dollar bills we want your you to save and accumulate do that your you to save and accumulate do that your you to save and accumulate do that through that concept of deferred through that concept of deferred through that concept of deferred gratification gratification gratification that you build up your assets enough that you build up your assets enough that you build up your assets enough that they can generate income and if you that they can generate income and if you that they can generate income and if you do this right there's a good chance do this right there's a good chance do this right there's a good chance you're living off of the money your you're living off of the money your you're living off of the money your portfolio is creating and it perpetually portfolio is creating and it perpetually portfolio is creating and it perpetually could grow forever idea of living off could grow forever idea of living off could grow forever idea of living off the interest your withdrawal rate is the interest your withdrawal rate is the interest your withdrawal rate is essentially that interest that you're essentially that interest that you're essentially that interest that you're pulling off the portfolio so that leads pulling off the portfolio so that leads pulling off the portfolio so that leads to whenever you research withdrawal rate to whenever you research withdrawal rate to whenever you research withdrawal rate it's probably as soon as Google pulls it it's probably as soon as Google pulls it it's probably as soon as Google pulls it up it's probably no reference this up it's probably no reference this up it's probably no reference this number the goldens gold rule standard number the goldens gold rule standard number the goldens gold rule standard for withdrawal rate is typically around for withdrawal rate is typically around for withdrawal rate is typically around % yep but walk them through what is % yep but walk them through what is % yep but walk them through what is that based off of there has to be that based off of there has to be that based off of there has to be something they did somebody just didn't something they did somebody just didn't something they did somebody just didn't say you know what I think % is the say you know what I think % is the say you know what I think % is the perfect you know percentage to base your perfect you know percentage to base your perfect you know percentage to base your income off of what you've accumulated a income off of what you've accumulated a income off of what you've accumulated a lot of people think that it's like some lot of people think that it's like some lot of people think that it's like some really complex complicated mathematics really complex complicated mathematics really complex complicated mathematics it's really not the average retirement it's really not the average retirement it's really not the average retirement is thought to be somewhere around to is thought to be somewhere around to is thought to be somewhere around to years so if you think about a years so if you think about a years so if you think about a percent portfolio if you were to just percent portfolio if you were to just percent portfolio if you were to just pull off percent every year pull off percent every year pull off percent every year essentially you had your money in a essentially you had your money in a essentially you had your money in a coffee can you pull out percent every coffee can you pull out percent every coffee can you pull out percent every year you could do that for years so year you could do that for years so year you could do that for years so the % withdrawal rate really equates to the % withdrawal rate really equates to the % withdrawal rate really equates to a very traditional to year a very traditional to year a very traditional to year retirement yeah and that's what it was retirement yeah and that's what it was retirement yeah and that's what it was designed for a -year retirement is all designed for a -year retirement is all designed for a -year retirement is all the research shows that there was all the research shows that there was all the research shows that there was all kind of things that went into that kind of things that went into that kind of things that went into that decision and it makes sense and in it decision and it makes sense and in it decision and it makes sense and in it shows if you go back and look at shows if you go back and look at shows if you go back and look at historical performance of markets historical performance of markets historical performance of markets diversification % is your friend the diversification % is your friend the diversification % is your friend the problem is is now we have fire movements problem is is now we have fire movements problem is is now we have fire movements right they're not looking at a -year right they're not looking at a -year right they're not looking at a -year retirement we have people looking at retirement we have people looking at retirement we have people looking at year retirements year retirements year retirements year retirements year retirements year retirements that obviously can cause tremendous that obviously can cause tremendous that obviously can cause tremendous stress because let's use the same logic stress because let's use the same logic stress because let's use the same logic you just did you said okay a % you just did you said okay a % you just did you said okay a % withdrawal rate if you take it by you withdrawal rate if you take it by you withdrawal rate if you take it by you have a hundred percent of your assets have a hundred percent of your assets have a hundred percent of your assets what you're pulling out if you're what you're pulling out if you're what you're pulling out if you're pulling out % a year that means you pulling out % a year that means you pulling out % a year that means you have years that you can repeat this have years that you can repeat this have years that you can repeat this exercise so if you have somebody who's exercise so if you have somebody who's exercise so if you have somebody who's say you go to a you know you're only go say you go to a you know you're only go say you go to a you know you're only go do a -year retirement cuz you're older do a -year retirement cuz you're older do a -year retirement cuz you're older you waited until you were you know mid you waited until you were you know mid you waited until you were you know mid I mean late and maybe mid s right I mean late and maybe mid s right I mean late and maybe mid s right tire you might only have to plan for for tire you might only have to plan for for tire you might only have to plan for for years right so if you years you years right so if you years you years right so if you years you could probably do the math on a hundred could probably do the math on a hundred could probably do the math on a hundred you come up with five cents so you can you come up with five cents so you can you come up with five cents so you can see the older you see the older you see the older you get the more aggressive you can get so get the more aggressive you can get so get the more aggressive you can get so this makes me think what happens if this makes me think what happens if this makes me think what happens if you're retiring when you're yeah you're retiring when you're yeah you're retiring when you're yeah that's right you know it's definitely that's right you know it's definitely that's right you know it's definitely one of those things that it's not one of those things that it's not one of those things that it's not designed for you know a % might cause designed for you know a % might cause designed for you know a % might cause you some issues so we pivoted in and you some issues so we pivoted in and you some issues so we pivoted in and here's the thing we have found and we here's the thing we have found and we here's the thing we have found and we did a lot of show prep on this but I did a lot of show prep on this but I did a lot of show prep on this but I think it's okay if we share this I want think it's okay if we share this I want think it's okay if we share this I want to go in the weeds you pulled me out of to go in the weeds you pulled me out of to go in the weeds you pulled me out of the ditch and said do not go in the the ditch and said do not go in the the ditch and said do not go in the weeds no no no weeds does not accurately weeds no no no weeds does not accurately weeds no no no weeds does not accurately describe what we had in our pre-show describe what we had in our pre-show describe what we had in our pre-show prep it was like deep Amazon jungle that prep it was like deep Amazon jungle that prep it was like deep Amazon jungle that the money guy got into but it was a the money guy got into but it was a the money guy got into but it was a fantastic exercise because what we were fantastic exercise because what we were fantastic exercise because what we were to do is were able to pull out of those to do is were able to pull out of those to do is were able to pull out of those weeds weeds weeds some very useful tangible information some very useful tangible information some very useful tangible information that we're gonna be able to share yeah that we're gonna be able to share yeah that we're gonna be able to share yeah so cuz what we would what I was and this so cuz what we would what I was and this so cuz what we would what I was and this is where maybe I am a little nerdy er is is where maybe I am a little nerdy er is is where maybe I am a little nerdy er is that I wanted us to actually base it off that I wanted us to actually base it off that I wanted us to actually base it off of what is the research show on what a of what is the research show on what a of what is the research show on what a perpetual rate of return that you could perpetual rate of return that you could perpetual rate of return that you could expect so you never touch tourists or expect so you never touch tourists or expect so you never touch tourists or the investment and then what is a safe the investment and then what is a safe the investment and then what is a safe withdrawal rate which is the purpose of withdrawal rate which is the purpose of withdrawal rate which is the purpose of this whole segment of the show so you this whole segment of the show so you this whole segment of the show so you just used two big words there what's one just used two big words there what's one just used two big words there what's one thing living off the interest and never thing living off the interest and never thing living off the interest and never abiding in to essentially your nest egg abiding in to essentially your nest egg abiding in to essentially your nest egg versus the other okay well I don't want versus the other okay well I don't want versus the other okay well I don't want to die and leave behind my whole nest to die and leave behind my whole nest to die and leave behind my whole nest egg what happens if I pull money off and egg what happens if I pull money off and egg what happens if I pull money off and I actually pull some of the prints could I actually pull some of the prints could I actually pull some of the prints could I have a successful retirement and no I have a successful retirement and no I have a successful retirement and no doubt so what do we find we can we took doubt so what do we find we can we took doubt so what do we find we can we took the research and we said let's create a the research and we said let's create a the research and we said let's create a tool that will be useful this is a tool tool that will be useful this is a tool tool that will be useful this is a tool that we came up with so what we that we came up with so what we that we came up with so what we determine is we want to look at by each determine is we want to look at by each determine is we want to look at by each age and we did this by decade sorta what age and we did this by decade sorta what age and we did this by decade sorta what kind of withdrawal rates should you be kind of withdrawal rates should you be kind of withdrawal rates should you be thinking about pulling off of your thinking about pulling off of your thinking about pulling off of your portfolio so the very first one and portfolio so the very first one and portfolio so the very first one and these are I don't even know what is this these are I don't even know what is this these are I don't even know what is this called fast fire like what are the folks called fast fire like what are the folks called fast fire like what are the folks in their s what are they like they're in their s what are they like they're in their s what are they like they're like super speedy fire or like anyway I like super speedy fire or like anyway I like super speedy fire or like anyway I think you would call it people who don't think you would call it people who don't think you would call it people who don't like their job people who don't like like their job people who don't like like their job people who don't like your if you're tired of it at you your if you're tired of it at you your if you're tired of it at you don't like your job so keep going so don't like your job so keep going so don't like your job so keep going so this is what we determined if you're this is what we determined if you're this is what we determined if you're someone in your s and you're thinking someone in your s and you're thinking someone in your s and you're thinking about entering into a retirement about entering into a retirement about entering into a retirement lifestyle we're gonna live off your lifestyle we're gonna live off your lifestyle we're gonna live off your portfolio we think realistically you portfolio we think realistically you portfolio we think realistically you need to think about it withdrawal rate need to think about it withdrawal rate need to think about it withdrawal rate of about % so that is so let's go panic of about % so that is so let's go panic of about % so that is so let's go panic some some some yes let's go ahead and talk about it yes let's go ahead and talk about it yes let's go ahead and talk about it that means if you have a million dollars that means if you have a million dollars that means if you have a million dollars that you've accumulated by the time that you've accumulated by the time that you've accumulated by the time you're in your s you can only count you're in your s you can only count you're in your s you can only count that it's go generate about thirty that it's go generate about thirty that it's go generate about thirty thousand dollars a year and by the way thousand dollars a year and by the way thousand dollars a year and by the way it's kind of a hard thing to do to it's kind of a hard thing to do to it's kind of a hard thing to do to accumulate a million dollars by your s accumulate a million dollars by your s accumulate a million dollars by your s right you just haven't had a lot of right you just haven't had a lot of right you just haven't had a lot of working years to let your army of working years to let your army of working years to let your army of dollars work for you but we already dollars work for you but we already dollars work for you but we already mentioned that as we age it gets little mentioned that as we age it gets little mentioned that as we age it gets little bit better so in your s if you think bit better so in your s if you think bit better so in your s if you think about retiring we think that you can about retiring we think that you can about retiring we think that you can actually increase your draw rate to actually increase your draw rate to actually increase your draw rate to about three and a half percent and your about three and a half percent and your about three and a half percent and your aunt anecdotal studies have kind of aunt anecdotal studies have kind of aunt anecdotal studies have kind of shown that but before you move on to the shown that but before you move on to the shown that but before you move on to the next I will tell you I think anybody if next I will tell you I think anybody if next I will tell you I think anybody if you if you're on the conservative side you if you're on the conservative side you if you're on the conservative side and your thing about fire three and a and your thing about fire three and a and your thing about fire three and a half percent is instead of the four half percent is instead of the four half percent is instead of the four percent golden rule that everybody talks percent golden rule that everybody talks percent golden rule that everybody talks about I think three and a half percent about I think three and a half percent about I think three and a half percent is kind of the ding-ding-ding winner for is kind of the ding-ding-ding winner for is kind of the ding-ding-ding winner for me for the fire people and we do this me for the fire people and we do this me for the fire people and we do this for clients when they come to us they for clients when they come to us they for clients when they come to us they tell us they're leaving the workforce in tell us they're leaving the workforce in tell us they're leaving the workforce in their late s early s their late s early s their late s early s this is the number I want them to kind this is the number I want them to kind this is the number I want them to kind of get in their head to really feel like of get in their head to really feel like of get in their head to really feel like they're in safe zone to get them through they're in safe zone to get them through they're in safe zone to get them through retirement that's right now if you were retirement that's right now if you were retirement that's right now if you were trying in your s s is still trying in your s s is still trying in your s s is still considered early retirement but we think considered early retirement but we think considered early retirement but we think it has to be broken up by the decade be it has to be broken up by the decade be it has to be broken up by the decade be broken break the decade in half if broken break the decade in half if broken break the decade in half if you're retiring from age to we you're retiring from age to we you're retiring from age to we think that that golden standard that % think that that golden standard that % think that that golden standard that % withdrawal rate is probably still withdrawal rate is probably still withdrawal rate is probably still something that you should consider now something that you should consider now something that you should consider now that probably is gonna have you eating that probably is gonna have you eating that probably is gonna have you eating into your principle value it's not gonna into your principle value it's not gonna into your principle value it's not gonna be like a living off the interest or be like a living off the interest or be like a living off the interest or your entire retirement but that's okay your entire retirement but that's okay your entire retirement but that's okay for some of the reasons we mentioned for some of the reasons we mentioned for some of the reasons we mentioned pensions Social Security that sort of pensions Social Security that sort of pensions Social Security that sort of thing when you get to age to we do thing when you get to age to we do thing when you get to age to we do think that you can tick up your think that you can tick up your think that you can tick up your withdrawal rate to four and a half withdrawal rate to four and a half withdrawal rate to four and a half percent what we found is if you're percent what we found is if you're percent what we found is if you're someone who retires in your s or later someone who retires in your s or later someone who retires in your s or later a % withdrawal rate is most likely a % withdrawal rate is most likely a % withdrawal rate is most likely going to be the safe withdrawal rate to going to be the safe withdrawal rate to going to be the safe withdrawal rate to keep you in between the lanes I thought keep you in between the lanes I thought keep you in between the lanes I thought it was because there's going to be it was because there's going to be it was because there's going to be people out there watching I know we fish people out there watching I know we fish people out there watching I know we fish out the same waters they're gonna say out the same waters they're gonna say out the same waters they're gonna say wait a minute I know Dave Ramsey says wait a minute I know Dave Ramsey says wait a minute I know Dave Ramsey says eight percent is a reasonable withdrawal eight percent is a reasonable withdrawal eight percent is a reasonable withdrawal rate so I want to tell you in this deep rate so I want to tell you in this deep rate so I want to tell you in this deep dive that BOE pulled me out of the ditch dive that BOE pulled me out of the ditch dive that BOE pulled me out of the ditch and said don't you dare go that will and said don't you dare go that will and said don't you dare go that will spend minutes going through this one spend minutes going through this one spend minutes going through this one chart chart you will spend your time chart chart you will spend your time chart chart you will spend your time explaining all the research that you've explaining all the research that you've explaining all the research that you've come up with we found from looking at come up with we found from looking at come up with we found from looking at all the historic performance you could all the historic performance you could all the historic performance you could if you're years of age you could push if you're years of age you could push if you're years of age you could push your withdrawal rate up to your withdrawal rate up to your withdrawal rate up to % and you know because you could % and you know because you could % and you know because you could consume it it doesn't mean that you consume it it doesn't mean that you consume it it doesn't mean that you won't touch corpus or principal it just won't touch corpus or principal it just won't touch corpus or principal it just means that you would not die without you means that you would not die without you means that you would not die without you know that's right running out of money know that's right running out of money know that's right running out of money in retirement so I don't know that I in retirement so I don't know that I in retirement so I don't know that I would count on that but okay so all would count on that but okay so all would count on that but okay so all everything we just shared is kind of everything we just shared is kind of everything we just shared is kind of academia it sort of theory what we know academia it sort of theory what we know academia it sort of theory what we know is cuz we've been doing this for decades is cuz we've been doing this for decades is cuz we've been doing this for decades now helping people navigate and work now helping people navigate and work now helping people navigate and work through retirement is that in practice through retirement is that in practice through retirement is that in practice it actually looks a little bit different it actually looks a little bit different it actually looks a little bit different because there are some sweeteners and because there are some sweeteners and because there are some sweeteners and some adjustments that naturally tend to some adjustments that naturally tend to some adjustments that naturally tend to take place when you work through take place when you work through take place when you work through retirement so let's talk about some of retirement so let's talk about some of retirement so let's talk about some of these things that I think will impact these things that I think will impact these things that I think will impact withdrawal rings safe withdrawal rates withdrawal rings safe withdrawal rates withdrawal rings safe withdrawal rates because these things do not happen because these things do not happen because these things do not happen exactly what Bose said in a vacuum exactly what Bose said in a vacuum exactly what Bose said in a vacuum human nature definitely comes into play human nature definitely comes into play human nature definitely comes into play because when we're going and we even go because when we're going and we even go because when we're going and we even go doing a minute we're going to show you doing a minute we're going to show you doing a minute we're going to show you assuming that you are a robot in assuming that you are a robot in assuming that you are a robot in retirement and you pull no matter what retirement and you pull no matter what retirement and you pull no matter what and because I think it's important to and because I think it's important to and because I think it's important to give that reference and data points but give that reference and data points but give that reference and data points but the truth of the matter is and think the truth of the matter is and think the truth of the matter is and think about why do recessions exist in the about why do recessions exist in the about why do recessions exist in the first place what happens is is that first place what happens is is that first place what happens is is that markets go through and the economy goes markets go through and the economy goes markets go through and the economy goes through cycles and when we hit downturns through cycles and when we hit downturns through cycles and when we hit downturns part of what exasperates and makes part of what exasperates and makes part of what exasperates and makes things worse is we all as herd animals things worse is we all as herd animals things worse is we all as herd animals act the same way so when the market goes act the same way so when the market goes act the same way so when the market goes down or the economy slows down I should down or the economy slows down I should down or the economy slows down I should say because they're all interrelated say because they're all interrelated say because they're all interrelated it's people go oh my god Mabel we're not it's people go oh my god Mabel we're not it's people go oh my god Mabel we're not buying a washing machine this year Mabel buying a washing machine this year Mabel buying a washing machine this year Mabel no way you're getting that car I mean no way you're getting that car I mean no way you're getting that car I mean it's just it's just that people cuz it's just it's just that people cuz it's just it's just that people cuz remember old man on the porch is you remember old man on the porch is you remember old man on the porch is you know central you know what everybody know central you know what everybody know central you know what everybody living in the center part of the country living in the center part of the country living in the center part of the country they're thinking I'm not I'm not they're thinking I'm not I'm not they're thinking I'm not I'm not spending it you gotta tighten down the spending it you gotta tighten down the spending it you gotta tighten down the hatches you gotta really tighten the hatches you gotta really tighten the hatches you gotta really tighten the belt consumer spending just drops it belt consumer spending just drops it belt consumer spending just drops it happens naturally happens naturally happens naturally so that's naturally gonna help you with so that's naturally gonna help you with so that's naturally gonna help you with your draw now one thing that we always your draw now one thing that we always your draw now one thing that we always do and this is we said this before do and this is we said this before do and this is we said this before before you get in their time you need to before you get in their time you need to before you get in their time you need to measure two three four times one of the measure two three four times one of the measure two three four times one of the things we do we work with clients and things we do we work with clients and things we do we work with clients and help them decide can they retire or they help them decide can they retire or they help them decide can they retire or they move in there is we assume they are move in there is we assume they are move in there is we assume they are robots we try to design it where you robots we try to design it where you robots we try to design it where you don't have to make those decisions if we don't have to make those decisions if we don't have to make those decisions if we go through it down so we're trying to go through it down so we're trying to go through it down so we're trying to break it exactly we don't want you to break it exactly we don't want you to break it exactly we don't want you to have to eat cat food hamburger patties have to eat cat food hamburger patties have to eat cat food hamburger patties in retirement I just say potatoes we in retirement I just say potatoes we in retirement I just say potatoes we don't actually tell clients to eat cat don't actually tell clients to eat cat don't actually tell clients to eat cat food but we do tell them this is to keep food but we do tell them this is to keep food but we do tell them this is to keep you from even you from even you from even so that you can see how our client so that you can see how our client so that you can see how our client meetings go a little bit different but meetings go a little bit different but meetings go a little bit different but it's thinking they're gonna be eating in it's thinking they're gonna be eating in it's thinking they're gonna be eating in reality lunch but we do make that reality lunch but we do make that reality lunch but we do make that adjustment as we move through time and adjustment as we move through time and adjustment as we move through time and so so that's one thing is the behavioral so so that's one thing is the behavioral so so that's one thing is the behavioral side the other sweetener that we like to side the other sweetener that we like to side the other sweetener that we like to talk about is is that look I know these talk about is is that look I know these talk about is is that look I know these things won't happen immediately but things won't happen immediately but things won't happen immediately but Social Security and Pensions likely Social Security and Pensions likely Social Security and Pensions likely there is some type of future cash flow there is some type of future cash flow there is some type of future cash flow that will mitigate what you have to pull that will mitigate what you have to pull that will mitigate what you have to pull from your portfolio at some point so from your portfolio at some point so from your portfolio at some point so that can go into so that also takes a that can go into so that also takes a that can go into so that also takes a little pressure off of this safe little pressure off of this safe little pressure off of this safe withdrawal rate yep when you're withdrawal rate yep when you're withdrawal rate yep when you're analyzing it and then but you talked analyzing it and then but you talked analyzing it and then but you talked about because you mentioned it kind of about because you mentioned it kind of about because you mentioned it kind of in the intro for this section the hybrid in the intro for this section the hybrid in the intro for this section the hybrid approach what is actually the hybrid approach what is actually the hybrid approach what is actually the hybrid approach and how do we apply just like approach and how do we apply just like approach and how do we apply just like you can kind of tighten your belt when you can kind of tighten your belt when you can kind of tighten your belt when things get nervous and uncertain you can things get nervous and uncertain you can things get nervous and uncertain you can kind of do the opposite when it's flush kind of do the opposite when it's flush kind of do the opposite when it's flush ears when the markets doing really well ears when the markets doing really well ears when the markets doing really well it's okay if you do want to maybe pull a it's okay if you do want to maybe pull a it's okay if you do want to maybe pull a little more off your portfolio or take little more off your portfolio or take little more off your portfolio or take that trip or buy that thing or upgrade that trip or buy that thing or upgrade that trip or buy that thing or upgrade the house or whatever it may be when the the house or whatever it may be when the the house or whatever it may be when the portfolio substantiates pulling out a portfolio substantiates pulling out a portfolio substantiates pulling out a little bit more that's okay so long as little bit more that's okay so long as little bit more that's okay so long as you're willing when the market does kind you're willing when the market does kind you're willing when the market does kind of get hurt and we do hit a downturn of get hurt and we do hit a downturn of get hurt and we do hit a downturn you're willing to tighten up it's okay you're willing to tighten up it's okay you're willing to tighten up it's okay to have a fluid withdrawal rate so long to have a fluid withdrawal rate so long to have a fluid withdrawal rate so long as you understand what your portfolio as you understand what your portfolio as you understand what your portfolio truly can subway numbers that so in a truly can subway numbers that so in a truly can subway numbers that so in a year like like so far knock on wood year like like so far knock on wood year like like so far knock on wood is shaping us in a great year I think is shaping us in a great year I think is shaping us in a great year I think most people are making well over ten most people are making well over ten most people are making well over ten percent yeah it's probably okay to be percent yeah it's probably okay to be percent yeah it's probably okay to be planning for the big vacation it's right planning for the big vacation it's right planning for the big vacation it's right yeah because you've probably Eve yeah because you've probably Eve yeah because you've probably Eve over you've had a good year of returns over you've had a good year of returns over you've had a good year of returns being better than baited however look being better than baited however look being better than baited however look back historically you hit a period of back historically you hit a period of back historically you hit a period of like and not the year to be going like and not the year to be going like and not the year to be going thinking about going to Australia and thinking about going to Australia and thinking about going to Australia and taking everybody on a Disney cruise taking everybody on a Disney cruise taking everybody on a Disney cruise that's just not it doesn't work so you that's just not it doesn't work so you that's just not it doesn't work so you but here's the thing I tell you this but here's the thing I tell you this but here's the thing I tell you this instant we laugh about it human nature instant we laugh about it human nature instant we laugh about it human nature dictates a lot of this stuff naturally dictates a lot of this stuff naturally dictates a lot of this stuff naturally so typically when we go through these so typically when we go through these so typically when we go through these paths patches of bad stuff people are paths patches of bad stuff people are paths patches of bad stuff people are there they're not doing it it's just a there they're not doing it it's just a there they're not doing it it's just a natural human nature it's amazing that natural human nature it's amazing that natural human nature it's amazing that car that you had to replace all of a car that you had to replace all of a car that you had to replace all of a sudden our kid gets a little shaky that sudden our kid gets a little shaky that sudden our kid gets a little shaky that car can get you another , miles car can get you another , miles car can get you another , miles they can get you another year out and they can get you another year out and they can get you another year out and then one last thing to kind of close then one last thing to kind of close then one last thing to kind of close this section out is that realize you the this section out is that realize you the this section out is that realize you the reason we always do all plans reason we always do all plans reason we always do all plans conservatively try conservatively try conservatively try to break them is that you could always to break them is that you could always to break them is that you could always adjust up so the meeting that you go adjust up so the meeting that you go adjust up so the meeting that you go through your first five to six years of through your first five to six years of through your first five to six years of retirement and you find out that your retirement and you find out that your retirement and you find out that your assets are building and accumulating or assets are building and accumulating or assets are building and accumulating or you're not pulling down as fast as you you're not pulling down as fast as you you're not pulling down as fast as you thought you can always adjust this up so thought you can always adjust this up so thought you can always adjust this up so these things realize that it can be these things realize that it can be these things realize that it can be adjusted up so don't think that you get adjusted up so don't think that you get adjusted up so don't think that you get you're locking yourself in I'd rather you're locking yourself in I'd rather you're locking yourself in I'd rather you be conservative then too ambitious you be conservative then too ambitious you be conservative then too ambitious and overestimate what you think your and overestimate what you think your and overestimate what you think your portfolio can do that's a beautiful portfolio can do that's a beautiful portfolio can do that's a beautiful beautiful point Brian you would much beautiful point Brian you would much beautiful point Brian you would much rather in retirement adjust up then have rather in retirement adjust up then have rather in retirement adjust up then have to adjust down and if you plan well you to adjust down and if you plan well you to adjust down and if you plan well you can put yourself in that situation so can put yourself in that situation so can put yourself in that situation so let's move on to the next thing that I let's move on to the next thing that I let's move on to the next thing that I think the fire movement and spoils think the fire movement and spoils think the fire movement and spoils anybody who's considering making the anybody who's considering making the anybody who's considering making the transition from being saver to consumer transition from being saver to consumer transition from being saver to consumer slash spender is the number one factor slash spender is the number one factor slash spender is the number one factor that can destroy your fire goal yeah that can destroy your fire goal yeah that can destroy your fire goal yeah that number one factor we think is that number one factor we think is that number one factor we think is sequence of return risk and if you go sequence of return risk and if you go sequence of return risk and if you go look out there in the blogosphere or the look out there in the blogosphere or the look out there in the blogosphere or the podcasts those sphere and you look at podcasts those sphere and you look at podcasts those sphere and you look at all the folks who this is the thing that all the folks who this is the thing that all the folks who this is the thing that they really want to camp on and they they really want to camp on and they they really want to camp on and they really want to go deep and down and really want to go deep and down and really want to go deep and down and dirty on right mi madre by the way I'd dirty on right mi madre by the way I'd dirty on right mi madre by the way I'd put it is that when I would started put it is that when I would started put it is that when I would started researching the fire movement and seeing researching the fire movement and seeing researching the fire movement and seeing what people are concerned about what do what people are concerned about what do what people are concerned about what do they consider what are they waking up they consider what are they waking up they consider what are they waking up and they're going oh my goodness is and they're going oh my goodness is and they're going oh my goodness is there something hiding under the bed there something hiding under the bed there something hiding under the bed is there something is the boogeyman over is there something is the boogeyman over is there something is the boogeyman over there in that closet they're talking there in that closet they're talking there in that closet they're talking about sequence of return risks this is about sequence of return risks this is about sequence of return risks this is really there's so many blog posts that really there's so many blog posts that really there's so many blog posts that are talking about sequence of return are talking about sequence of return are talking about sequence of return risk that I want to know is this really risk that I want to know is this really risk that I want to know is this really the boogeyman or is this something that the boogeyman or is this something that the boogeyman or is this something that if you just it's something you just had if you just it's something you just had if you just it's something you just had to plan for and you can overcome so to plan for and you can overcome so to plan for and you can overcome so again whenever we throw out a vocabulary again whenever we throw out a vocabulary again whenever we throw out a vocabulary word let's talk about what the actual word let's talk about what the actual word let's talk about what the actual definition is so when we ask what is definition is so when we ask what is definition is so when we ask what is sequence of return risk it's the danger sequence of return risk it's the danger sequence of return risk it's the danger that the timing of a draws from a that the timing of a draws from a that the timing of a draws from a retirement account will have a negative retirement account will have a negative retirement account will have a negative impact on the overall rate of return impact on the overall rate of return impact on the overall rate of return available to the investor meaning you available to the investor meaning you available to the investor meaning you start pulling out money at a really bad start pulling out money at a really bad start pulling out money at a really bad time and it impacts your long-term time and it impacts your long-term time and it impacts your long-term sustainability in a negative way it's sustainability in a negative way it's sustainability in a negative way it's the exact opposite of dollar cost and is the exact opposite of dollar cost and is the exact opposite of dollar cost and is that what you're worried about is is that what you're worried about is is that what you're worried about is is that you retire the market gets beaten that you retire the market gets beaten that you retire the market gets beaten up your portfolio gets beaten up and now up your portfolio gets beaten up and now up your portfolio gets beaten up and now you're starting to take some of that you're starting to take some of that you're starting to take some of that very important very important very important principle of your investment that will principle of your investment that will principle of your investment that will you know it's a loss your army of dollar you know it's a loss your army of dollar you know it's a loss your army of dollar bills is being spent instead of being bills is being spent instead of being bills is being spent instead of being left to save and grow through you in the left to save and grow through you in the left to save and grow through you in the future so that's the biggest risk so we future so that's the biggest risk so we future so that's the biggest risk so we kind of we did some research I should kind of we did some research I should kind of we did some research I should say with the help of Daniel of course say with the help of Daniel of course say with the help of Daniel of course course intern Daniel Hook this and this course intern Daniel Hook this and this course intern Daniel Hook this and this this is this was great this is one of this is this was great this is one of this is this was great this is one of those things and this is what I like those things and this is what I like those things and this is what I like about this because I'm so excited to about this because I'm so excited to about this because I'm so excited to show this is it is going to answer the show this is it is going to answer the show this is it is going to answer the age-old question of is this going to be age-old question of is this going to be age-old question of is this going to be something that destroys your fire plant something that destroys your fire plant something that destroys your fire plant that's right and the answer is it all that's right and the answer is it all that's right and the answer is it all depends on how well you plan so let's go depends on how well you plan so let's go depends on how well you plan so let's go ahead and jump into the data and see ahead and jump into the data and see ahead and jump into the data and see what we did and what did Daniel go and what we did and what did Daniel go and what we did and what did Daniel go and find for us yeah so if you remember find for us yeah so if you remember find for us yeah so if you remember we've done a show a number a number of we've done a show a number a number of we've done a show a number a number of months years it kind of runs all months years it kind of runs all months years it kind of runs all together we did like Bob the worst together we did like Bob the worst together we did like Bob the worst investor ever we looked at what happens investor ever we looked at what happens investor ever we looked at what happens if you invested at the worst time if you invested at the worst time if you invested at the worst time possible we said okay what if Bob got possible we said okay what if Bob got possible we said okay what if Bob got down this investing career and then what down this investing career and then what down this investing career and then what if he retired it kind of the worst time if he retired it kind of the worst time if he retired it kind of the worst time possible how does that look and so we possible how does that look and so we possible how does that look and so we wanted to look at an illustration going wanted to look at an illustration going wanted to look at an illustration going from all the way through from all the way through from all the way through present-day and said what happens if present-day and said what happens if present-day and said what happens if someone retired at the beginning before someone retired at the beginning before someone retired at the beginning before the dot-com bubble well the reason we the dot-com bubble well the reason we the dot-com bubble well the reason we chose this time though is because Daniel chose this time though is because Daniel chose this time though is because Daniel and when we were doing the show notes and when we were doing the show notes and when we were doing the show notes and prep as a team he found over the and prep as a team he found over the and prep as a team he found over the last sixty year period this is the worst last sixty year period this is the worst last sixty year period this is the worst time you could have retired from a time you could have retired from a time you could have retired from a sequence of return risk and the reason sequence of return risk and the reason sequence of return risk and the reason is is cuz think about it dot-com bubble is is cuz think about it dot-com bubble is is cuz think about it dot-com bubble of and then you recovery on whoo of and then you recovery on whoo of and then you recovery on whoo whoo glad we made it through that whoo glad we made it through that whoo glad we made it through that was a good year you know you poke was a good year you know you poke was a good year you know you poke around then I was on around then I was on around then I was on Kabam happens and it pops you again Kabam happens and it pops you again Kabam happens and it pops you again oh my goodness you know so this is what oh my goodness you know so this is what oh my goodness you know so this is what you have to prepare yourself so over the you have to prepare yourself so over the you have to prepare yourself so over the last year plus period this was the last year plus period this was the last year plus period this was the worst period you could have retired if worst period you could have retired if worst period you could have retired if you're thinking about it from sequence you're thinking about it from sequence you're thinking about it from sequence of returns and so we looked at is a of returns and so we looked at is a of returns and so we looked at is a / portfolio and for the we just / portfolio and for the we just / portfolio and for the we just used the S&P the we just looked used the S&P the we just looked used the S&P the we just looked at the -year Treasury and we said what at the -year Treasury and we said what at the -year Treasury and we said what happens if we start with a retirement happens if we start with a retirement happens if we start with a retirement value of two million dollars yeah and value of two million dollars yeah and value of two million dollars yeah and what happens if we want to live off of what happens if we want to live off of what happens if we want to live off of $, a % % % withdraw right how $, a % % % withdraw right how $, a % % % withdraw right how does this play out in the real world if does this play out in the real world if does this play out in the real world if that's what our portfolio looks like that's what our portfolio looks like that's what our portfolio looks like Wow a picture says a thousand words so Wow a picture says a thousand words so Wow a picture says a thousand words so or maybe even a million words so I know or maybe even a million words so I know or maybe even a million words so I know we have a lot of podcast listeners so I we have a lot of podcast listeners so I we have a lot of podcast listeners so I want to go hang out let Bo go into even want to go hang out let Bo go into even want to go hang out let Bo go into even greater detail but the first thing that greater detail but the first thing that greater detail but the first thing that people are going to notice because we people are going to notice because we people are going to notice because we have a line that's going down over time have a line that's going down over time have a line that's going down over time that's you pulling money out of the that's you pulling money out of the that's you pulling money out of the portfolio and by the way this Chi I dia portfolio and by the way this Chi I dia portfolio and by the way this Chi I dia did not come from just let's put this did not come from just let's put this did not come from just let's put this line going down we know when we do our line going down we know when we do our line going down we know when we do our quarterly reports for clients yea we quarterly reports for clients yea we quarterly reports for clients yea we actually show this for retirees we show actually show this for retirees we show actually show this for retirees we show them what their principle amount that them what their principle amount that them what their principle amount that they invested with us what the market they invested with us what the market they invested with us what the market value is and I'm always amazed I have value is and I'm always amazed I have value is and I'm always amazed I have even come into your office and I said I even come into your office and I said I even come into your office and I said I can't believe this person's been pulling can't believe this person's been pulling can't believe this person's been pulling off this portfolio so long look they off this portfolio so long look they off this portfolio so long look they don't really have any money invested don't really have any money invested don't really have any money invested anymore but because they're army of anymore but because they're army of anymore but because they're army of dollar bills kept growing they still dollar bills kept growing they still dollar bills kept growing they still have a portfolio that's worth this much have a portfolio that's worth this much have a portfolio that's worth this much so this is how this idea came to us so this is how this idea came to us so this is how this idea came to us because you'll notice there's a slope because you'll notice there's a slope because you'll notice there's a slope line where the withdrawals are occurring line where the withdrawals are occurring line where the withdrawals are occurring taking away principal from the portfolio taking away principal from the portfolio taking away principal from the portfolio but yet you have the market value but but yet you have the market value but but yet you have the market value but here's what's very troubling about this here's what's very troubling about this here's what's very troubling about this chart that Daniel created is that right chart that Daniel created is that right chart that Daniel created is that right in those first four to five years that in those first four to five years that in those first four to five years that this portfolio was set up in retirement this portfolio was set up in retirement this portfolio was set up in retirement you're you can see the market value is you're you can see the market value is you're you can see the market value is actually less it when the initial actually less it when the initial actually less it when the initial investment so you are consuming when investment so you are consuming when investment so you are consuming when you're pulling money out you're you're pulling money out you're you're pulling money out you're consuming your initial investment so I'm consuming your initial investment so I'm consuming your initial investment so I'm gonna say that even differently not only gonna say that even differently not only gonna say that even differently not only is the portfolio losing value you are is the portfolio losing value you are is the portfolio losing value you are pulling money out so it is a double dip pulling money out so it is a double dip pulling money out so it is a double dip a double whammy a double ouch that's the a double whammy a double ouch that's the a double whammy a double ouch that's the worst case scenario you think about when worst case scenario you think about when worst case scenario you think about when I retire I start pulling mountain money I retire I start pulling mountain money I retire I start pulling mountain money out and the market has a hiccup that's out and the market has a hiccup that's out and the market has a hiccup that's not what you want so fast forward though not what you want so fast forward though not what you want so fast forward though because this is this is I like it it's because this is this is I like it it's because this is this is I like it it's kind of like a Disney movie it has a kind of like a Disney movie it has a kind of like a Disney movie it has a happy ending happy ending happy ending so what what okay so before we go to the so what what okay so before we go to the so what what okay so before we go to the next illustration what I think is really next illustration what I think is really next illustration what I think is really interesting here is this person even interesting here is this person even interesting here is this person even though that happened because I stayed though that happened because I stayed though that happened because I stayed the course they didn't go to cash they the course they didn't go to cash they the course they didn't go to cash they didn't freak out they didn't pull their didn't freak out they didn't pull their didn't freak out they didn't pull their money out by the recovery of maybe money out by the recovery of maybe money out by the recovery of maybe for --is-- even though they were pulling for --is-- even though they were pulling for --is-- even though they were pulling money out their portfolio went positive money out their portfolio went positive money out their portfolio went positive and then it actually made money from and then it actually made money from and then it actually made money from and all the way until the and all the way until the and all the way until the Great Recession the Great Recession Great Recession the Great Recession Great Recession the Great Recession happened but they still stayed in the happened but they still stayed in the happened but they still stayed in the black even though they were pulling black even though they were pulling black even though they were pulling money out they had more portfolio value money out they had more portfolio value money out they had more portfolio value than they actually had money corpus than they actually had money corpus than they actually had money corpus invested so invested so invested so when they actually work through what is when they actually work through what is when they actually work through what is this an year period that we're this an year period that we're this an year period that we're looking at they started their retirement looking at they started their retirement looking at they started their retirement with two million dollars they got to the with two million dollars they got to the with two million dollars they got to the end years later now and their end years later now and their end years later now and their terminal value of the portfolio was . terminal value of the portfolio was . terminal value of the portfolio was . million dollars this is what I say it is million dollars this is what I say it is million dollars this is what I say it is a happy ending is the fact that they a happy ending is the fact that they a happy ending is the fact that they invested two million dollars they even invested two million dollars they even invested two million dollars they even consume some of that because just they consume some of that because just they consume some of that because just they got unlucky on when they retired but yet got unlucky on when they retired but yet got unlucky on when they retired but yet the happy ending is that even though the happy ending is that even though the happy ending is that even though they have a full retirement of enjoying they have a full retirement of enjoying they have a full retirement of enjoying % withdrawal rates which is pretty % withdrawal rates which is pretty % withdrawal rates which is pretty aggressive they still ended up in the aggressive they still ended up in the aggressive they still ended up in the future at . million dollars I'd say future at . million dollars I'd say future at . million dollars I'd say that this is starting to look a lot like that this is starting to look a lot like that this is starting to look a lot like success exactly even though and here's success exactly even though and here's success exactly even though and here's what here's what you can also glean from what here's what you can also glean from what here's what you can also glean from this doing this exercise if they kiss this doing this exercise if they kiss this doing this exercise if they kiss was substantially better from a was substantially better from a was substantially better from a market return standpoint than even market return standpoint than even market return standpoint than even was but if you look at this was but if you look at this was but if you look at this because they had from all the way because they had from all the way because they had from all the way to to have a recovery years to to have a recovery years to to have a recovery years that's about the insulation you need so that's about the insulation you need so that's about the insulation you need so that your portfolio gets a running start that your portfolio gets a running start that your portfolio gets a running start to hit retirement exactly we structured to hit retirement exactly we structured to hit retirement exactly we structured this on purpose to break it and pull this on purpose to break it and pull this on purpose to break it and pull corpus out from the beginning but I'm corpus out from the beginning but I'm corpus out from the beginning but I'm telling you if you can just even if you telling you if you can just even if you telling you if you can just even if you hit a bad time you're going to be ok if hit a bad time you're going to be ok if hit a bad time you're going to be ok if you measure twice cut once and got that you measure twice cut once and got that you measure twice cut once and got that with that safe withdrawal rate right on with that safe withdrawal rate right on with that safe withdrawal rate right on the front end so don't let sequence of the front end so don't let sequence of the front end so don't let sequence of return risk think you you know put you return risk think you you know put you return risk think you you know put you in a box where you think that just go in a box where you think that just go in a box where you think that just go blow up your retirement it's right so blow up your retirement it's right so blow up your retirement it's right so this was the this is the worst case this was the this is the worst case this was the this is the worst case right I said well what if you know not right I said well what if you know not right I said well what if you know not everyone is gonna get that let's just everyone is gonna get that let's just everyone is gonna get that let's just call it unlucky because you can't call it unlucky because you can't call it unlucky because you can't control what the markets are gonna do control what the markets are gonna do control what the markets are gonna do what happens if we just change our what happens if we just change our what happens if we just change our timeframe you know just a little bit timeframe you know just a little bit timeframe you know just a little bit what's it like if we shift in so we said what's it like if we shift in so we said what's it like if we shift in so we said okay what if instead of retiring right okay what if instead of retiring right okay what if instead of retiring right before the dot-com bubble bursted what before the dot-com bubble bursted what before the dot-com bubble bursted what happens if you made the decision to happens if you made the decision to happens if you made the decision to retire after the recovery kind of came retire after the recovery kind of came retire after the recovery kind of came back Yeah right back Yeah right back Yeah right so we said exact same illustration but so we said exact same illustration but so we said exact same illustration but now you retire shifted about three years now you retire shifted about three years now you retire shifted about three years three years January first of three years January first of three years January first of exact same portfolio exact same behavior exact same portfolio exact same behavior exact same portfolio exact same behavior nothing else change except for the date nothing else change except for the date nothing else change except for the date of retirement well now you start with of retirement well now you start with of retirement well now you start with two million dollars and years later two million dollars and years later two million dollars and years later as you as you as you move through your retirement your value move through your retirement your value move through your retirement your value on January st of is . million on January st of is . million on January st of is . million dollars you see the big part of this is dollars you see the big part of this is dollars you see the big part of this is is because there's not a single time is because there's not a single time is because there's not a single time where the fair market value dipped below where the fair market value dipped below where the fair market value dipped below the initial investment meaning your army the initial investment meaning your army the initial investment meaning your army of dollar bills was working very strong of dollar bills was working very strong of dollar bills was working very strong really well it was healthy you had really well it was healthy you had really well it was healthy you had enough of a head start to let they get enough of a head start to let they get enough of a head start to let they get it you know to let the money grow bigger it you know to let the money grow bigger it you know to let the money grow bigger than you're pulling out but it is one of than you're pulling out but it is one of than you're pulling out but it is one of those things where this is guys when you those things where this is guys when you those things where this is guys when you retire remember what I said when I gave retire remember what I said when I gave retire remember what I said when I gave the legal disclaimer at the beginning I the legal disclaimer at the beginning I the legal disclaimer at the beginning I want anybody who's actually thinking want anybody who's actually thinking want anybody who's actually thinking about turning in the resonation letter about turning in the resonation letter about turning in the resonation letter and pivoting in their career to consider and pivoting in their career to consider and pivoting in their career to consider you know doing a Monte Carlo simulation you know doing a Monte Carlo simulation you know doing a Monte Carlo simulation because look what we just did was what because look what we just did was what because look what we just did was what these software is actually doing when these software is actually doing when these software is actually doing when they're running thousands upon thousands they're running thousands upon thousands they're running thousands upon thousands of illustrations is we showed you the of illustrations is we showed you the of illustrations is we showed you the top % we showed you the bottom % and top % we showed you the bottom % and top % we showed you the bottom % and the reality of your retirement it's the reality of your retirement it's the reality of your retirement it's probably going to be somewhere in probably going to be somewhere in probably going to be somewhere in between that but that's why if you can between that but that's why if you can between that but that's why if you can just do that measure twice cut once and just do that measure twice cut once and just do that measure twice cut once and plan ahead to make sure you have a plan ahead to make sure you have a plan ahead to make sure you have a reasonable safe withdrawal rate you reasonable safe withdrawal rate you reasonable safe withdrawal rate you don't have to be fearful of sequence of don't have to be fearful of sequence of don't have to be fearful of sequence of return risk right it is something that return risk right it is something that return risk right it is something that totally can be planned for accounted for totally can be planned for accounted for totally can be planned for accounted for and driven through so just make sure you and driven through so just make sure you and driven through so just make sure you do the hard work that to make it a do the hard work that to make it a do the hard work that to make it a success well set so let's move on to the success well set so let's move on to the success well set so let's move on to the next segment is how do structure your next segment is how do structure your next segment is how do structure your accounts for retirement especially for accounts for retirement especially for accounts for retirement especially for somebody who's in the fire movement so somebody who's in the fire movement so somebody who's in the fire movement so you're not leaving a stone unturned on you're not leaving a stone unturned on you're not leaving a stone unturned on this no I think it's so interesting bran this no I think it's so interesting bran this no I think it's so interesting bran we talked about out there in the we talked about out there in the we talked about out there in the blogosphere and the podcast ou sphere blogosphere and the podcast ou sphere blogosphere and the podcast ou sphere and the YouTube us fear people all the and the YouTube us fear people all the and the YouTube us fear people all the words you'll make I'm gonna I'm gonna words you'll make I'm gonna I'm gonna words you'll make I'm gonna I'm gonna have like three more before the end how have like three more before the end how have like three more before the end how many times we see people talk about many times we see people talk about many times we see people talk about sequence of return or withdrawal rates sequence of return or withdrawal rates sequence of return or withdrawal rates and but how often is this miss yes box and but how often is this miss yes box and but how often is this miss yes box about this this is some money guys about this this is some money guys about this this is some money guys special sauce I think yeah we and and I special sauce I think yeah we and and I special sauce I think yeah we and and I think bow came up with this as you can think bow came up with this as you can think bow came up with this as you can tell he's amazing he's in the mood to tell he's amazing he's in the mood to tell he's amazing he's in the mood to make up Webster try to give us in make up Webster try to give us in make up Webster try to give us in Webster but he's got sequence of Webster but he's got sequence of Webster but he's got sequence of distribution risk and really what he's distribution risk and really what he's distribution risk and really what he's talking about here is tax or account talking about here is tax or account talking about here is tax or account location exactly right so cuz this is location exactly right so cuz this is location exactly right so cuz this is important because we all know and let me important because we all know and let me important because we all know and let me give you the the big three give you the the big three give you the the big three you've got your after-tax accounts which you've got your after-tax accounts which you've got your after-tax accounts which is this is your normal taxable brokerage is this is your normal taxable brokerage is this is your normal taxable brokerage account that you could set up for account that you could set up for account that you could set up for yourself or jointly yourself or jointly yourself or jointly anything usually you have and this is anything usually you have and this is anything usually you have and this is gonna be your bigger one it's like your gonna be your bigger one it's like your gonna be your bigger one it's like your tax-deferred this is all your retirement tax-deferred this is all your retirement tax-deferred this is all your retirement accounts that and what's cool about a accounts that and what's cool about a accounts that and what's cool about a tax-deferred is that you get a tax tax-deferred is that you get a tax tax-deferred is that you get a tax deduction when you put the money in but deduction when you put the money in but deduction when you put the money in but when you pull it out unfortunately it's when you pull it out unfortunately it's when you pull it out unfortunately it's going to pay ordinary income tax rates going to pay ordinary income tax rates going to pay ordinary income tax rates and then our favorite one is the and then our favorite one is the and then our favorite one is the tax-free bucket so you hear these those tax-free bucket so you hear these those tax-free bucket so you hear these those three things so when we talk about asset three things so when we talk about asset three things so when we talk about asset allocation is how you spread your money allocation is how you spread your money allocation is how you spread your money between the large cap international cash between the large cap international cash between the large cap international cash bonds nobody ever talks about tax bonds nobody ever talks about tax bonds nobody ever talks about tax diversification of your account types so diversification of your account types so diversification of your account types so we actually created some money guys we actually created some money guys we actually created some money guys rules of success for each one of these rules of success for each one of these rules of success for each one of these so but let's kind of jump into them why so but let's kind of jump into them why so but let's kind of jump into them why don't you talk them talk to them about don't you talk them talk to them about don't you talk them talk to them about after-tax and taxable brokerage accounts after-tax and taxable brokerage accounts after-tax and taxable brokerage accounts yes so the unique thing about each one yes so the unique thing about each one yes so the unique thing about each one of these accounts you already mentioned of these accounts you already mentioned of these accounts you already mentioned this they're kind of taxed at different this they're kind of taxed at different this they're kind of taxed at different you have access to the accounts at you have access to the accounts at you have access to the accounts at different points in time they're taxed different points in time they're taxed different points in time they're taxed at different points so what you hold at different points so what you hold at different points so what you hold inside of them should be different inside of them should be different inside of them should be different because of that so when you look at your because of that so when you look at your because of that so when you look at your taxable investment accounts they're taxable investment accounts they're taxable investment accounts they're often taxed at favorable capital gains often taxed at favorable capital gains often taxed at favorable capital gains rates if you have long term holdings and rates if you have long term holdings and rates if you have long term holdings and you want to sell a holding you pay a you want to sell a holding you pay a you want to sell a holding you pay a capital gain rate instead of ordinary capital gain rate instead of ordinary capital gain rate instead of ordinary income you can also have qualified income you can also have qualified income you can also have qualified dividends that payout at a more dividends that payout at a more dividends that payout at a more favorable rate so the types of assets favorable rate so the types of assets favorable rate so the types of assets that you want to hold inside of your that you want to hold inside of your that you want to hold inside of your taxable account would not be like taxable account would not be like taxable account would not be like ordinary income producing assets it ordinary income producing assets it ordinary income producing assets it might not be thing like bonds they're might not be thing like bonds they're might not be thing like bonds they're gonna spit out dividend payments to you gonna spit out dividend payments to you gonna spit out dividend payments to you that don't get qualified treatment the that don't get qualified treatment the that don't get qualified treatment the other thing that's beautiful about other thing that's beautiful about other thing that's beautiful about after-tax assets is that you actually after-tax assets is that you actually after-tax assets is that you actually can access those dollars before fifty can access those dollars before fifty can access those dollars before fifty nine and a half you know with most IRAs nine and a half you know with most IRAs nine and a half you know with most IRAs and ks you have to wait until you get and ks you have to wait until you get and ks you have to wait until you get to age and a half or else you're to age and a half or else you're to age and a half or else you're gonna have to pay a % penalty with gonna have to pay a % penalty with gonna have to pay a % penalty with your after-tax assets a lot of times your after-tax assets a lot of times your after-tax assets a lot of times especially for fire folks that's the especially for fire folks that's the especially for fire folks that's the bridge money to get you to that magical bridge money to get you to that magical bridge money to get you to that magical and a half age where you can start and a half age where you can start and a half age where you can start getting to some of your other assets and getting to some of your other assets and getting to some of your other assets and resources yeah I mean it is totally this resources yeah I mean it is totally this resources yeah I mean it is totally this is your liquid easiest access money you is your liquid easiest access money you is your liquid easiest access money you can get now well I want to give one can get now well I want to give one can get now well I want to give one cautionary tells because we all want to cautionary tells because we all want to cautionary tells because we all want to take advantage of the capital gains we take advantage of the capital gains we take advantage of the capital gains we wanna take advantage of the dividends wanna take advantage of the dividends wanna take advantage of the dividends because we low love that lower tax rate because we low love that lower tax rate because we low love that lower tax rate but here's the word of caution if you're but here's the word of caution if you're but here's the word of caution if you're quickly approaching retirement and you quickly approaching retirement and you quickly approaching retirement and you want to be at that stage where you are want to be at that stage where you are want to be at that stage where you are living off of these resources be careful living off of these resources be careful living off of these resources be careful of making sure you don't have just one of making sure you don't have just one of making sure you don't have just one total portfolio of appreciated holdings total portfolio of appreciated holdings total portfolio of appreciated holdings right that's a great chair right that's a great chair right that's a great chair planning opportunity but as you get planning opportunity but as you get planning opportunity but as you get closer to retirement I'm talking about closer to retirement I'm talking about closer to retirement I'm talking about three to seven years from retirement three to seven years from retirement three to seven years from retirement make sure you have something that's make sure you have something that's make sure you have something that's where you probably would want to bring where you probably would want to bring where you probably would want to bring on those things that aren't as tax on those things that aren't as tax on those things that aren't as tax efficient like bonds or keeping a little efficient like bonds or keeping a little efficient like bonds or keeping a little extra cash in there because you're gonna extra cash in there because you're gonna extra cash in there because you're gonna need some money that you can actually need some money that you can actually need some money that you can actually pull out without creating more taxes if pull out without creating more taxes if pull out without creating more taxes if you want to manage your after-tax you want to manage your after-tax you want to manage your after-tax account well one of the things you can account well one of the things you can account well one of the things you can do is you can Tax manage it through time do is you can Tax manage it through time do is you can Tax manage it through time here's a really great example that's here's a really great example that's here's a really great example that's practical and kind of recent to memory practical and kind of recent to memory practical and kind of recent to memory in the fourth quarter of last year the in the fourth quarter of last year the in the fourth quarter of last year the market really got hit hard I think SMP market really got hit hard I think SMP market really got hit hard I think SMP was down like % we made the decision was down like % we made the decision was down like % we made the decision as a firm for our clients we were gonna as a firm for our clients we were gonna as a firm for our clients we were gonna go in and change the investment go in and change the investment go in and change the investment allocations and try to batten down the allocations and try to batten down the allocations and try to batten down the hatches because we think it makes sense hatches because we think it makes sense hatches because we think it makes sense to get risk right on the front end one to get risk right on the front end one to get risk right on the front end one thing we were able to do though for our thing we were able to do though for our thing we were able to do though for our clients who have taxable assets is we're clients who have taxable assets is we're clients who have taxable assets is we're able to go and do loss harvesting in the able to go and do loss harvesting in the able to go and do loss harvesting in the fourth quarter not changing the fourth quarter not changing the fourth quarter not changing the composition of their portfolio but going composition of their portfolio but going composition of their portfolio but going and capitalizing on those losses and capitalizing on those losses and capitalizing on those losses harvesting those using that to offset harvesting those using that to offset harvesting those using that to offset some of those embedded gains that have some of those embedded gains that have some of those embedded gains that have been long-term so that over the life of been long-term so that over the life of been long-term so that over the life of that clients retirement or accumulation that clients retirement or accumulation that clients retirement or accumulation stage we can tax manage that so when stage we can tax manage that so when stage we can tax manage that so when they get to retirement they don't just they get to retirement they don't just they get to retirement they don't just have a bunch of holdings then have huge have a bunch of holdings then have huge have a bunch of holdings then have huge embedded gains and are gonna be costly embedded gains and are gonna be costly embedded gains and are gonna be costly to get to and it's the same thing the to get to and it's the same thing the to get to and it's the same thing the charitable giving just hitting on that charitable giving just hitting on that charitable giving just hitting on that again is if you do it right if you're a again is if you do it right if you're a again is if you do it right if you're a person that's tithing or giving a decent person that's tithing or giving a decent person that's tithing or giving a decent sum every year there's ways if you have sum every year there's ways if you have sum every year there's ways if you have appreciated holdings that we can over appreciated holdings that we can over appreciated holdings that we can over time push up the tax basis right by time push up the tax basis right by time push up the tax basis right by using a giving strategy so that by the using a giving strategy so that by the using a giving strategy so that by the time you actually hit retirement you time you actually hit retirement you time you actually hit retirement you have easier access to your after-tax have easier access to your after-tax have easier access to your after-tax money without uncle getting a big money without uncle getting a big money without uncle getting a big portion of it right so let's move on to portion of it right so let's move on to portion of it right so let's move on to the biggest pot that most people have the biggest pot that most people have the biggest pot that most people have because when you know you read like because when you know you read like because when you know you read like books like every day millionaires chris books like every day millionaires chris books like every day millionaires chris hogan talks about your biggest account hogan talks about your biggest account hogan talks about your biggest account that most people have that makes them a that most people have that makes them a that most people have that makes them a millionaire is their for work k so millionaire is their for work k so millionaire is their for work k so they're talking about these pre-tax tax they're talking about these pre-tax tax they're talking about these pre-tax tax deferred accounts and the reason these deferred accounts and the reason these deferred accounts and the reason these accounts get so big is it's not only accounts get so big is it's not only accounts get so big is it's not only good behavior from you the individual good behavior from you the individual good behavior from you the individual because a lot of times your employer because a lot of times your employer because a lot of times your employer will say you give us six or eight will say you give us six or eight will say you give us six or eight percent we'll give you cents on the percent we'll give you cents on the percent we'll give you cents on the dollar even a hundred percent dollar for dollar even a hundred percent dollar for dollar even a hundred percent dollar for dollar match aka free money free money dollar match aka free money free money dollar match aka free money free money you guys are you're not fools there's a you guys are you're not fools there's a you guys are you're not fools there's a reason you're watching the show so reason you're watching the show so reason you're watching the show so you're automatically creating that you're automatically creating that you're automatically creating that behavior of saving every month behavior of saving every month behavior of saving every month whether the markets going up whether the whether the markets going up whether the whether the markets going up whether the markets going down you're buying and markets going down you're buying and markets going down you're buying and then voila then voila then voila it's like magic it's like you know jack it's like magic it's like you know jack it's like magic it's like you know jack and his magic beans you look later and and his magic beans you look later and and his magic beans you look later and go holy cow how did this thing get so go holy cow how did this thing get so go holy cow how did this thing get so big it really is this is why these big it really is this is why these big it really is this is why these pre-tax tax deferred accounts get so pre-tax tax deferred accounts get so pre-tax tax deferred accounts get so huge it's great behavior so just like we huge it's great behavior so just like we huge it's great behavior so just like we talked about how you don't want to own talked about how you don't want to own talked about how you don't want to own assets that generate ordinary income assets that generate ordinary income assets that generate ordinary income inside of your taxable account the exact inside of your taxable account the exact inside of your taxable account the exact opposite is true inside of your tax opposite is true inside of your tax opposite is true inside of your tax deferred account if you do have a bond deferred account if you do have a bond deferred account if you do have a bond allocation or fixed income allocation or allocation or fixed income allocation or allocation or fixed income allocation or holdings that generate a lot of ordinary holdings that generate a lot of ordinary holdings that generate a lot of ordinary income a great place to hold those is income a great place to hold those is income a great place to hold those is inside of your k or inside of your inside of your k or inside of your inside of your k or inside of your IRA so that you're not having to pay tax IRA so that you're not having to pay tax IRA so that you're not having to pay tax on that income that's generated every on that income that's generated every on that income that's generated every year as you're building up your asset year as you're building up your asset year as you're building up your asset now if you've done this the traditional now if you've done this the traditional now if you've done this the traditional way which is tax deferred mean you took way which is tax deferred mean you took way which is tax deferred mean you took a tax deduction when you made the a tax deduction when you made the a tax deduction when you made the contribution but when you pull it out contribution but when you pull it out contribution but when you pull it out you know you go pay ordinary income tax you know you go pay ordinary income tax you know you go pay ordinary income tax rate that's going to create some big rate that's going to create some big rate that's going to create some big taxes as especially when you reach taxes as especially when you reach taxes as especially when you reach and a half because the government makes and a half because the government makes and a half because the government makes you yep it's and a half take those you yep it's and a half take those you yep it's and a half take those required minimum distributions however required minimum distributions however required minimum distributions however both you said you know because this our both you said you know because this our both you said you know because this our newer generation I guess this has been newer generation I guess this has been newer generation I guess this has been around probably going on a decade now around probably going on a decade now around probably going on a decade now maybe a little over a decade a lot of maybe a little over a decade a lot of maybe a little over a decade a lot of employer plans like I was even working employer plans like I was even working employer plans like I was even working on something for a family member they on something for a family member they on something for a family member they have a Roth k account option walk have a Roth k account option walk have a Roth k account option walk them through because I know we've done them through because I know we've done them through because I know we've done shows on but it's worth just giving a shows on but it's worth just giving a shows on but it's worth just giving a throw out well how we deal with that so throw out well how we deal with that so throw out well how we deal with that so we absolutely love Roth that's love Roth we absolutely love Roth that's love Roth we absolutely love Roth that's love Roth assets love building Roth assets inside assets love building Roth assets inside assets love building Roth assets inside of like a k retirement plan however of like a k retirement plan however of like a k retirement plan however Roth is not always the best decision and Roth is not always the best decision and Roth is not always the best decision and we think there's a really easy rule of we think there's a really easy rule of we think there's a really easy rule of thumb that you can deploy or employ to thumb that you can deploy or employ to thumb that you can deploy or employ to determine if you should be doing Roth determine if you should be doing Roth determine if you should be doing Roth contributions or pre-tax it really contributions or pre-tax it really contributions or pre-tax it really depends on where your tax rate falls if depends on where your tax rate falls if depends on where your tax rate falls if you look at your federal tax rate and you look at your federal tax rate and you look at your federal tax rate and your state tax rate then you add those your state tax rate then you add those your state tax rate then you add those two up and it's above % then odds are two up and it's above % then odds are two up and it's above % then odds are you ought to be doing pre-tax because you ought to be doing pre-tax because you ought to be doing pre-tax because that is a very very attractive tax that is a very very attractive tax that is a very very attractive tax benefit in the current year because the benefit in the current year because the benefit in the current year because the thought is when you retire you can buy thought is when you retire you can buy thought is when you retire you can buy there's a good potential you'll be in a there's a good potential you'll be in a there's a good potential you'll be in a lower tax bracket so it's a it's a lower tax bracket so it's a it's a lower tax bracket so it's a it's a measurement of those two either save tax measurement of those two either save tax measurement of those two either save tax now at this rate and pay tax later at now at this rate and pay tax later at now at this rate and pay tax later at this rate rebe I'm using my hands I see this rate rebe I'm using my hands I see this rate rebe I'm using my hands I see it but if you're someone who you add up it but if you're someone who you add up it but if you're someone who you add up your federal rate and you add your federal rate and you add your federal rate and you add your state rate and they are less than your state rate and they are less than your state rate and they are less than % well now you can make the argument % well now you can make the argument % well now you can make the argument especially if you're someone who's especially if you're someone who's especially if you're someone who's younger that building up those Roth younger that building up those Roth younger that building up those Roth assets can be huge if you're early in assets can be huge if you're early in assets can be huge if you're early in your career there's a chance that you your career there's a chance that you your career there's a chance that you might have higher income in retirement might have higher income in retirement might have higher income in retirement then building up those Roth assets is then building up those Roth assets is then building up those Roth assets is something you definitely want to something you definitely want to something you definitely want to consider and look at if you're between consider and look at if you're between consider and look at if you're between that to that's where it gets a that to that's where it gets a that to that's where it gets a little bit more nuanced and maybe you little bit more nuanced and maybe you little bit more nuanced and maybe you might would do a splitting strategy you might would do a splitting strategy you might would do a splitting strategy you have to take into account timing of have to take into account timing of have to take into account timing of retirement age risk tolerance account retirement age risk tolerance account retirement age risk tolerance account structure tax code in the state that you structure tax code in the state that you structure tax code in the state that you live in because a lot of states will live in because a lot of states will live in because a lot of states will give retirement exclusions together so give retirement exclusions together so give retirement exclusions together so and I want to do one last planning thing and I want to do one last planning thing and I want to do one last planning thing before we move on to tax free my before we move on to tax free my before we move on to tax free my favorite one is that guys especially favorite one is that guys especially favorite one is that guys especially fire movement you guys are leaving the fire movement you guys are leaving the fire movement you guys are leaving the workforce well before and a half and workforce well before and a half and workforce well before and a half and that's what you need to know two key that's what you need to know two key that's what you need to know two key dates when you're looking at retirement dates when you're looking at retirement dates when you're looking at retirement accounts you need to know fifteen and a accounts you need to know fifteen and a accounts you need to know fifteen and a half because that's the age that the half because that's the age that the half because that's the age that the government lets you get access to IRAs government lets you get access to IRAs government lets you get access to IRAs ks well for one case might be ks well for one case might be ks well for one case might be would separation service but a half would separation service but a half would separation service but a half is a key date know when that date is and is a key date know when that date is and is a key date know when that date is and then the other one to know is and a then the other one to know is and a then the other one to know is and a half that's when the government's go to half that's when the government's go to half that's when the government's go to require you to start taking minimum require you to start taking minimum require you to start taking minimum distributions they want you to pay taxes distributions they want you to pay taxes distributions they want you to pay taxes on all those benefits you've got all on all those benefits you've got all on all those benefits you've got all those years well you guys in the fire those years well you guys in the fire those years well you guys in the fire movement you might have to years movement you might have to years movement you might have to years before the government mandates you to before the government mandates you to before the government mandates you to take those distributions and there might take those distributions and there might take those distributions and there might be a way to manipulate how much taxes be a way to manipulate how much taxes be a way to manipulate how much taxes you pay depending upon how much you pay depending upon how much you pay depending upon how much after-tax money how much tax-free money after-tax money how much tax-free money after-tax money how much tax-free money you have so if you're in that you have so if you're in that you have so if you're in that opportunity all that period before opportunity all that period before opportunity all that period before seventeen half you might be able to do seventeen half you might be able to do seventeen half you might be able to do Roth conversions to maximize those lower Roth conversions to maximize those lower Roth conversions to maximize those lower tax rates so make sure you're tax rates so make sure you're tax rates so make sure you're considering that and you're taking an considering that and you're taking an considering that and you're taking an account now look I know that that just account now look I know that that just account now look I know that that just added a lot of variables so that's one added a lot of variables so that's one added a lot of variables so that's one of those reasons why we say it was when of those reasons why we say it was when of those reasons why we say it was when you get to these higher stages that you you get to these higher stages that you you get to these higher stages that you probably want to consider talking to a probably want to consider talking to a probably want to consider talking to a financial adviser or somebody to help financial adviser or somebody to help financial adviser or somebody to help you navigate some of these more complex you navigate some of these more complex you navigate some of these more complex matters and it can make a huge matters and it can make a huge matters and it can make a huge difference over the life of your difference over the life of your difference over the life of your portfolio probably more than sequence of portfolio probably more than sequence of portfolio probably more than sequence of return risk and that's what it created return risk and that's what it created return risk and that's what it created they call that the boogeyman they call that the boogeyman they call that the boogeyman but this is really that getting into the but this is really that getting into the but this is really that getting into the weeds is what really causes trouble for weeds is what really causes trouble for weeds is what really causes trouble for people let's talk about quickly tax-free people let's talk about quickly tax-free people let's talk about quickly tax-free Roth assets now here's the thing I love Roth assets now here's the thing I love Roth assets now here's the thing I love tax-free Roth assets the only catch tax-free Roth assets the only catch tax-free Roth assets the only catch is that the government no matter how you is that the government no matter how you is that the government no matter how you structure these things they do not give structure these things they do not give structure these things they do not give you a deduction when you make the you a deduction when you make the you a deduction when you make the contribution whether it's a your Roth contribution whether it's a your Roth contribution whether it's a your Roth k no deduction currently Roth IRA no k no deduction currently Roth IRA no k no deduction currently Roth IRA no deduction currently because they're deduction currently because they're deduction currently because they're giving you the promise that you put this giving you the promise that you put this giving you the promise that you put this money in it will be completely tax-free money in it will be completely tax-free money in it will be completely tax-free when it pulls out well we know from our when it pulls out well we know from our when it pulls out well we know from our research compounding growth especially research compounding growth especially research compounding growth especially for young people is huge so that's a for young people is huge so that's a for young people is huge so that's a winning proposition that the government winning proposition that the government winning proposition that the government setting up for you but this benefit is setting up for you but this benefit is setting up for you but this benefit is so good that they put income limitations so good that they put income limitations so good that they put income limitations it's also so good that truthfully you it's also so good that truthfully you it's also so good that truthfully you probably never ever ever actually want probably never ever ever actually want probably never ever ever actually want to touch these assets now you probably to touch these assets now you probably to touch these assets now you probably like way too I'm not gonna touch it this like way too I'm not gonna touch it this like way too I'm not gonna touch it this is why the benefit is so good is that is why the benefit is so good is that is why the benefit is so good is that these counts now Bo you Tom because you these counts now Bo you Tom because you these counts now Bo you Tom because you talk about sometimes people are you know talk about sometimes people are you know talk about sometimes people are you know get in pickles yeah and medical expenses get in pickles yeah and medical expenses get in pickles yeah and medical expenses let's tell them I'll let you be the bad let's tell them I'll let you be the bad let's tell them I'll let you be the bad guy and tell him when they can use them guy and tell him when they can use them guy and tell him when they can use them all else equal you'd want to leave your all else equal you'd want to leave your all else equal you'd want to leave your Roth assets in there as long as possible Roth assets in there as long as possible Roth assets in there as long as possible so they can compound however all things so they can compound however all things so they can compound however all things aren't always eco sometimes you may have aren't always eco sometimes you may have aren't always eco sometimes you may have a large living expense need in a large living expense need in a large living expense need in retirement and you may be pulling out of retirement and you may be pulling out of retirement and you may be pulling out of your IRA you may be pulling out of your your IRA you may be pulling out of your your IRA you may be pulling out of your taxable account but you might not you taxable account but you might not you taxable account but you might not you might need more money and it might not might need more money and it might not might need more money and it might not make sense for you to go generate taxes make sense for you to go generate taxes make sense for you to go generate taxes that might be a great time for you to that might be a great time for you to that might be a great time for you to pull out of your Roth assets because pull out of your Roth assets because pull out of your Roth assets because they are tax-free or maybe you're not they are tax-free or maybe you're not they are tax-free or maybe you're not quite at that and a half age and you quite at that and a half age and you quite at that and a half age and you have retired early and you have a bridge have retired early and you have a bridge have retired early and you have a bridge you need to get to one of the really you need to get to one of the really you need to get to one of the really unique things about Ross is that they unique things about Ross is that they unique things about Ross is that they can serve not should serve I want that can serve not should serve I want that can serve not should serve I want that that's an important distinction they can that's an important distinction they can that's an important distinction they can serve as an emergency piggy bank because serve as an emergency piggy bank because serve as an emergency piggy bank because you can always get to the money you put you can always get to the money you put you can always get to the money you put into your Roth tax-free and penalty-free into your Roth tax-free and penalty-free into your Roth tax-free and penalty-free if you've been making contributions if if you've been making contributions if if you've been making contributions if you've been growing that pot of money you've been growing that pot of money you've been growing that pot of money you should not do that because you were you should not do that because you were you should not do that because you were taking your soldiers out of the war way taking your soldiers out of the war way taking your soldiers out of the war way too early but it's there as an emergency too early but it's there as an emergency too early but it's there as an emergency if you need it so let me tell you if you need it so let me tell you if you need it so let me tell you because I was right you can out get because I was right you can out get because I was right you can out get access to the principal after you access to the principal after you access to the principal after you understand five year rules and all those understand five year rules and all those understand five year rules and all those things that go into it but here's why things that go into it but here's why things that go into it but here's why you never ever-- you never ever-- you never ever-- even in retirement probably never ever even in retirement probably never ever even in retirement probably never ever ever want to touch your Roth assets is ever want to touch your Roth assets is ever want to touch your Roth assets is because these things are a state because these things are a state because these things are a state planning gold if you know that when you planning gold if you know that when you planning gold if you know that when you die you're probably not dying broke I die you're probably not dying broke I die you're probably not dying broke I mean I think I'm at that point of mean I think I'm at that point of mean I think I'm at that point of accumulation that now I'm you know you accumulation that now I'm you know you accumulation that now I'm you know you building up your nest building up your nest building up your nest but you because you want to get that but you because you want to get that but you because you want to get that withdrawal that safe withdrawal rate withdrawal that safe withdrawal rate withdrawal that safe withdrawal rate right but you know you're gleaming right but you know you're gleaming right but you know you're gleaming something behind to the kids because you something behind to the kids because you something behind to the kids because you just built up you're too good at just built up you're too good at just built up you're too good at building the army of dollar bills building the army of dollar bills building the army of dollar bills remember how I told you with the tax remember how I told you with the tax remember how I told you with the tax deferred accounts they required seventy deferred accounts they required seventy deferred accounts they required seventy and a half you to take a portion and and a half you to take a portion and and a half you to take a portion and start paying taxes they go man thank you start paying taxes they go man thank you start paying taxes they go man thank you to take it Roth IRAs so even if you have to take it Roth IRAs so even if you have to take it Roth IRAs so even if you have a Roth k when you retire you can roll a Roth k when you retire you can roll a Roth k when you retire you can roll that into a Roth IRA there is no I that into a Roth IRA there is no I that into a Roth IRA there is no I repeat that there is no required minimum repeat that there is no required minimum repeat that there is no required minimum distribution remember what we said distribution remember what we said distribution remember what we said compounding growth is what makes these compounding growth is what makes these compounding growth is what makes these powerful we talk about all the time that powerful we talk about all the time that powerful we talk about all the time that a year old who puts money away $ a year old who puts money away $ a year old who puts money away $ when they're years of age could grow when they're years of age could grow when they're years of age could grow to become dollars by the time they're to become dollars by the time they're to become dollars by the time they're years of age well think about this if years of age well think about this if years of age well think about this if you're a person even if you're a year you're a person even if you're a year you're a person even if you're a year old who retires at but you have money old who retires at but you have money old who retires at but you have money in a Roth there's a chance you're not in a Roth there's a chance you're not in a Roth there's a chance you're not leaving this planet until you're to a leaving this planet until you're to a leaving this planet until you're to a hundred you could have the same benefit hundred you could have the same benefit hundred you could have the same benefit that a year old house on every dollar that a year old house on every dollar that a year old house on every dollar that's in these Roth accounts because that's in these Roth accounts because that's in these Roth accounts because there's no required benefit and then there's no required benefit and then there's no required benefit and then catch this you die with a Roth account catch this you die with a Roth account catch this you die with a Roth account that never had a required minimum that never had a required minimum that never had a required minimum distribution even though you were distribution even though you were distribution even though you were getting old you know years old getting old you know years old getting old you know years old this money still growing tax-free you this money still growing tax-free you this money still growing tax-free you still have the potential for your kids still have the potential for your kids still have the potential for your kids to be named on there and they only have to be named on there and they only have to be named on there and they only have to take distributions over their life to take distributions over their life to take distributions over their life expectancy you have now stretched this expectancy you have now stretched this expectancy you have now stretched this benefit for your kids your grandkids and benefit for your kids your grandkids and benefit for your kids your grandkids and it's not taxable to them when they take it's not taxable to them when they take it's not taxable to them when they take this just huge huge huge huge huge this this just huge huge huge huge huge this this just huge huge huge huge huge this is why it's a it's an account that you is why it's a it's an account that you is why it's a it's an account that you can look up but truthfully you don't can look up but truthfully you don't can look up but truthfully you don't break the glass on it and that's just break the glass on it and that's just break the glass on it and that's just what you really have to so let's move to what you really have to so let's move to what you really have to so let's move to the last thing and this is the section I the last thing and this is the section I the last thing and this is the section I can already see you know when when can already see you know when when can already see you know when when Morpheus and Rebbie are naming this this Morpheus and Rebbie are naming this this Morpheus and Rebbie are naming this this is going to be the segment the highlight is going to be the segment the highlight is going to be the segment the highlight clip that gets the most comment right is clip that gets the most comment right is clip that gets the most comment right is the downside of the fire movement I can the downside of the fire movement I can the downside of the fire movement I can already hear them they're coming out you already hear them they're coming out you already hear them they're coming out you can practically hear the stampede of can practically hear the stampede of can practically hear the stampede of them running towards the door the keys them running towards the door the keys them running towards the door the keys chirping on the console so let's go chirping on the console so let's go chirping on the console so let's go through these the first one and I add through these the first one and I add through these the first one and I add you because this is part of the measure you because this is part of the measure you because this is part of the measure twice cut once it's not that I'm against twice cut once it's not that I'm against twice cut once it's not that I'm against you leaving the workforce I'm making you leaving the workforce I'm making you leaving the workforce I'm making this change early it's just that I want this change early it's just that I want this change early it's just that I want to make sure you turned over every stone to make sure you turned over every stone to make sure you turned over every stone so you don't make a mistake and have so you don't make a mistake and have so you don't make a mistake and have regret the first one is so think about regret the first one is so think about regret the first one is so think about this this this oh gosh this is the because I thought oh gosh this is the because I thought oh gosh this is the because I thought about a apprecia is that you go to it about a apprecia is that you go to it about a apprecia is that you go to it because we all go to parties okay because we all go to parties okay because we all go to parties okay and you you're like should I get there and you you're like should I get there and you you're like should I get there early should I get there right at time early should I get there right at time early should I get there right at time do I get there early do I get there a do I get there early do I get there a do I get there early do I get there a little late let the fire get one why do little late let the fire get one why do little late let the fire get one why do why is it called fashionably late why do why is it called fashionably late why do why is it called fashionably late why do you show up at parties because you know you show up at parties because you know you show up at parties because you know the beginning of all parties it's going the beginning of all parties it's going the beginning of all parties it's going to be lame somebody is going to be lame to be lame somebody is going to be lame to be lame somebody is going to be lame cuz you get there you're gonna help the cuz you get there you're gonna help the cuz you get there you're gonna help the host set up some stuff and then you know host set up some stuff and then you know host set up some stuff and then you know and it really is even with an adults it and it really is even with an adults it and it really is even with an adults it kind of becomes like th grade and th kind of becomes like th grade and th kind of becomes like th grade and th grade dances because the guys are gonna grade dances because the guys are gonna grade dances because the guys are gonna be on one side of the room the girls go be on one side of the room the girls go be on one side of the room the girls go be on the other side it's a lame party be on the other side it's a lame party be on the other side it's a lame party and that's kind of how you're if you and that's kind of how you're if you and that's kind of how you're if you looking at the analogy of life and your looking at the analogy of life and your looking at the analogy of life and your work force that's kind of how things work force that's kind of how things work force that's kind of how things happen early so the music starts deejay happen early so the music starts deejay happen early so the music starts deejay starts playing music that everybody starts playing music that everybody starts playing music that everybody likes the girls come from the left the likes the girls come from the left the likes the girls come from the left the guys come from the right and they get guys come from the right and they get guys come from the right and they get together and start dance and go the together and start dance and go the together and start dance and go the party starts heating up you fire people party starts heating up you fire people party starts heating up you fire people I just want you to measure twice cut I just want you to measure twice cut I just want you to measure twice cut once once once cuz you're kind of people like well cuz you're kind of people like well cuz you're kind of people like well they're dancing together now time to go they're dancing together now time to go they're dancing together now time to go home because what I'm saying about home because what I'm saying about home because what I'm saying about here's the point of this your peak here's the point of this your peak here's the point of this your peak earning years are forty-five to sixty earning years are forty-five to sixty earning years are forty-five to sixty four I pulled that from the Bureau of four I pulled that from the Bureau of four I pulled that from the Bureau of Labor Statistics and and the thing is is Labor Statistics and and the thing is is Labor Statistics and and the thing is is that I just want you to think about the that I just want you to think about the that I just want you to think about the fact that that is a huge stat you're fact that that is a huge stat you're fact that that is a huge stat you're making your biggest money forty-five to making your biggest money forty-five to making your biggest money forty-five to sixty four but there's a lot of you who sixty four but there's a lot of you who sixty four but there's a lot of you who are saying I'm out of here are saying I'm out of here are saying I'm out of here yeah you know and that's right as the yeah you know and that's right as the yeah you know and that's right as the party's heating up you're walking away party's heating up you're walking away party's heating up you're walking away so you need to make sure you are okay so you need to make sure you are okay so you need to make sure you are okay with that young you've thought about with that young you've thought about with that young you've thought about that and don't miss hearest and think that and don't miss hearest and think that and don't miss hearest and think that we're saying that making the most that we're saying that making the most that we're saying that making the most amount of money is the thing you ought amount of money is the thing you ought amount of money is the thing you ought to do it's just it's water that once he to do it's just it's water that once he to do it's just it's water that once he gets down the hill you might not be able gets down the hill you might not be able gets down the hill you might not be able to get it back up the hill so make sure to get it back up the hill so make sure to get it back up the hill so make sure that you understand the repercussion of that you understand the repercussion of that you understand the repercussion of making that decision to exit early well making that decision to exit early well making that decision to exit early well and that's why I'm gonna do these a and that's why I'm gonna do these a and that's why I'm gonna do these a little out of order because I think you little out of order because I think you little out of order because I think you just made a great transition point I had just made a great transition point I had just made a great transition point I had a father I've told you guys this a father I've told you guys this a father I've told you guys this impacted my whole way I think about the impacted my whole way I think about the impacted my whole way I think about the money way I think about money the way I money way I think about money the way I money way I think about money the way I think about success is I had a father think about success is I had a father think about success is I had a father who's laid off in the eighth grade who's laid off in the eighth grade who's laid off in the eighth grade rocked our world and what I remember dad rocked our world and what I remember dad rocked our world and what I remember dad being so stressed about was he got laid being so stressed about was he got laid being so stressed about was he got laid off so this was an involuntary layoff off so this was an involuntary layoff off so this was an involuntary layoff because they were moving in a completely because they were moving in a completely because they were moving in a completely different direction that got out of the different direction that got out of the different direction that got out of the business that he was a manager in business that he was a manager in business that he was a manager in and he was in his mid-s and I remember and he was in his mid-s and I remember and he was in his mid-s and I remember him lamenting who wants a year old him lamenting who wants a year old him lamenting who wants a year old who was making this much money so that's who was making this much money so that's who was making this much money so that's why it is one of those things there is why it is one of those things there is why it is one of those things there is maybe there's no turning back when you maybe there's no turning back when you maybe there's no turning back when you make this decision not only on your peak make this decision not only on your peak make this decision not only on your peak earning years but there's a chance that earning years but there's a chance that earning years but there's a chance that once you go through this transition once you go through this transition once you go through this transition gateway you won't be able to get back to gateway you won't be able to get back to gateway you won't be able to get back to where you are because even like IT where you are because even like IT where you are because even like IT people there's a lot of people in IT or people there's a lot of people in IT or people there's a lot of people in IT or so for a year and a half two years the so for a year and a half two years the so for a year and a half two years the technology has changed changed on you so technology has changed changed on you so technology has changed changed on you so - so think about those things and that - so think about those things and that - so think about those things and that leads to and this is a great segue I leads to and this is a great segue I leads to and this is a great segue I didn't plan for this we should have done didn't plan for this we should have done didn't plan for this we should have done this in pro a preprint I had it all up this in pro a preprint I had it all up this in pro a preprint I had it all up here this was all imperfect but here's here this was all imperfect but here's here this was all imperfect but here's the other thing I will tell you guys I the other thing I will tell you guys I the other thing I will tell you guys I am now old enough I'm in getting to be am now old enough I'm in getting to be am now old enough I'm in getting to be in my mid to late s and I've been in in my mid to late s and I've been in in my mid to late s and I've been in the industry I'm in my third decade of the industry I'm in my third decade of the industry I'm in my third decade of doing this and we talk about , doing this and we talk about , doing this and we talk about , hours , hours to become get mastery hours , hours to become get mastery hours , hours to become get mastery to become an expert for some professions to become an expert for some professions to become an expert for some professions that require you know education that require you know education that require you know education experience you might not be able to experience you might not be able to experience you might not be able to actually start making your footprint actually start making your footprint actually start making your footprint stand out or your fingerprints all over stand out or your fingerprints all over stand out or your fingerprints all over the industry as a whole until you're the industry as a whole until you're the industry as a whole until you're twenty years inside twenty-five years twenty years inside twenty-five years twenty years inside twenty-five years and I finally feel like my voice is and I finally feel like my voice is and I finally feel like my voice is making an impact in the financial world making an impact in the financial world making an impact in the financial world so I don't know that I have and this is so I don't know that I have and this is so I don't know that I have and this is this is just a philosophical thing I this is just a philosophical thing I this is just a philosophical thing I won't people think about if this matters won't people think about if this matters won't people think about if this matters to you if you're working in some type of to you if you're working in some type of to you if you're working in some type of field where you have impact on as an field where you have impact on as an field where you have impact on as an expert in the profession is it okay that expert in the profession is it okay that expert in the profession is it okay that you're walking away from that I mean you're walking away from that I mean you're walking away from that I mean that's just something I think people that's just something I think people that's just something I think people ought to consider again you got to think ought to consider again you got to think ought to consider again you got to think about what's the you know you have to about what's the you know you have to about what's the you know you have to define what's the purpose you're here on define what's the purpose you're here on define what's the purpose you're here on this earth and you might have something this earth and you might have something this earth and you might have something that's worth sharing something really that's worth sharing something really that's worth sharing something really high impact expert and yes you might be high impact expert and yes you might be high impact expert and yes you might be now going to go teach at school or be a now going to go teach at school or be a now going to go teach at school or be a tutor or some but if you were actually tutor or some but if you were actually tutor or some but if you were actually shaping the direction of this field is shaping the direction of this field is shaping the direction of this field is it better it's just something to it better it's just something to it better it's just something to measuring this about and then we talked measuring this about and then we talked measuring this about and then we talked about in it I'll let you lead into this about in it I'll let you lead into this about in it I'll let you lead into this one because you got into trouble last one because you got into trouble last one because you got into trouble last time with this are cons this is maybe time with this are cons this is maybe time with this are cons this is maybe the most controversial downside to fire the most controversial downside to fire the most controversial downside to fire and you know here's the big question and you know here's the big question and you know here's the big question that we have to ask is if you're a that we have to ask is if you're a that we have to ask is if you're a participant fine you exit the workforce participant fine you exit the workforce participant fine you exit the workforce early are there negative health impacts early are there negative health impacts early are there negative health impacts associated with that that maybe would associated with that that maybe would associated with that that maybe would have been a better way for us to a have been a better way for us to a have been a better way for us to a framed the question framed the question framed the question baby than the way that we did if you baby than the way that we did if you baby than the way that we did if you retire early you're gonna die die that's retire early you're gonna die die that's retire early you're gonna die die that's not really what we're trying to say not really what we're trying to say not really what we're trying to say however you know anecdotally we both however you know anecdotally we both however you know anecdotally we both have personal stories we've worked with have personal stories we've worked with have personal stories we've worked with clients we have loved ones of family clients we have loved ones of family clients we have loved ones of family members you have to make sure that you members you have to make sure that you members you have to make sure that you measure again measure twice two three measure again measure twice two three measure again measure twice two three four times to understand what it is that four times to understand what it is that four times to understand what it is that you're retiring to not just what it is you're retiring to not just what it is you're retiring to not just what it is you're retiring away from because if you you're retiring away from because if you you're retiring away from because if you retire to nothing yeah there might be retire to nothing yeah there might be retire to nothing yeah there might be some unintended consequences whether it some unintended consequences whether it some unintended consequences whether it be cognitively or motivationally or be cognitively or motivationally or be cognitively or motivationally or whatever you need to understand what whatever you need to understand what whatever you need to understand what those impacts are and how that's going those impacts are and how that's going those impacts are and how that's going to affect the enjoyment that you're able to affect the enjoyment that you're able to affect the enjoyment that you're able to experience throughout your retirement to experience throughout your retirement to experience throughout your retirement life the stat that I think people get life the stat that I think people get life the stat that I think people get upset about it makes their the hair upset about it makes their the hair upset about it makes their the hair stand up on their neck is that there's a stand up on their neck is that there's a stand up on their neck is that there's a study out there that if you take your study out there that if you take your study out there that if you take your Social Security early men especially Social Security early men especially Social Security early men especially there's a % more increase in mortality there's a % more increase in mortality there's a % more increase in mortality right but here's what I think these right but here's what I think these right but here's what I think these stats don't tell you you don't know that stats don't tell you you don't know that stats don't tell you you don't know that these people take Social Security early these people take Social Security early these people take Social Security early because they knew they were already because they knew they were already because they knew they were already saying something was wrong they already saying something was wrong they already saying something was wrong they already you know is their lifestyle things that you know is their lifestyle things that you know is their lifestyle things that were already impacted because I think were already impacted because I think were already impacted because I think that stat can be very misleading but it that stat can be very misleading but it that stat can be very misleading but it does lead to you said it perfectly beau does lead to you said it perfectly beau does lead to you said it perfectly beau is that everybody needs the kind of what is that everybody needs the kind of what is that everybody needs the kind of what wakes you up in the morning and gives wakes you up in the morning and gives wakes you up in the morning and gives you purpose we had Fritz on from the you purpose we had Fritz on from the you purpose we had Fritz on from the retirement manifesto and he was so retirement manifesto and he was so retirement manifesto and he was so generous to us that if you go out to generous to us that if you go out to generous to us that if you go out to money guy calm we have a brand new money guy calm we have a brand new money guy calm we have a brand new resource section and Fritz shared with resource section and Fritz shared with resource section and Fritz shared with us the tin can commandments of us the tin can commandments of us the tin can commandments of retirement you got to go download that retirement you got to go download that retirement you got to go download that if this is something you're considering if this is something you're considering if this is something you're considering because it talks about one of them is because it talks about one of them is because it talks about one of them is know what you're retiring to and even know what you're retiring to and even know what you're retiring to and even get into hobbies and other things before get into hobbies and other things before get into hobbies and other things before you retire so you're not just waking up you retire so you're not just waking up you retire so you're not just waking up thinking a good retirement plan is not thinking a good retirement plan is not thinking a good retirement plan is not the first two months I plan on watching the first two months I plan on watching the first two months I plan on watching all Judge Judy all the time not going to all Judge Judy all the time not going to all Judge Judy all the time not going to be a fulfilling retirement you got to be a fulfilling retirement you got to be a fulfilling retirement you got to know what you're working towards and Bo know what you're working towards and Bo know what you're working towards and Bo that's probably a great segue it's kind that's probably a great segue it's kind that's probably a great segue it's kind of talking about what we're doing and of talking about what we're doing and of talking about what we're doing and now we have some some pretty big now we have some some pretty big now we have some some pretty big announcements yeah we we have created announcements yeah we we have created announcements yeah we we have created something new and something exciting and something new and something exciting and something new and something exciting and something that is live for you guys now something that is live for you guys now something that is live for you guys now do you want to do a pre-show drumroll do you want to do a pre-show drumroll do you want to do a pre-show drumroll please we create charts and please we create charts and please we create charts and illustrations and graphs and checklist illustrations and graphs and checklist illustrations and graphs and checklist and spreadsheets and all these different and spreadsheets and all these different and spreadsheets and all these different things things things resources that we think can help you add resources that we think can help you add resources that we think can help you add abundance to your financial life and abundance to your financial life and abundance to your financial life and they are all now available on our they are all now available on our they are all now available on our website you can go out to money guide website you can go out to money guide website you can go out to money guide com com com you can click on our resource page you you can click on our resource page you you can click on our resource page you can see all of the resources that we can see all of the resources that we can see all of the resources that we currently have made available and we're currently have made available and we're currently have made available and we're going to be adding to them as we come up going to be adding to them as we come up going to be adding to them as we come up with new ideas as we have new with new ideas as we have new with new ideas as we have new illustrations we think that are valuable illustrations we think that are valuable illustrations we think that are valuable for you guys we're gonna put them out for you guys we're gonna put them out for you guys we're gonna put them out there so go out to money guide com click there so go out to money guide com click there so go out to money guide com click on our resource page there's gonna be a on our resource page there's gonna be a on our resource page there's gonna be a great way for you to get your hand on great way for you to get your hand on great way for you to get your hand on the free content it's gonna help you the free content it's gonna help you the free content it's gonna help you impact your financial life for the impact your financial life for the impact your financial life for the better yeah we've already mentioned two better yeah we've already mentioned two better yeah we've already mentioned two ten commandments of retirement from ten commandments of retirement from ten commandments of retirement from fritz and retirement manifestos going to fritz and retirement manifestos going to fritz and retirement manifestos going to be on there a lot of this stuff when I be on there a lot of this stuff when I be on there a lot of this stuff when I talk about the dollar turn into you talk about the dollar turn into you talk about the dollar turn into you know the power of compounding that know the power of compounding that know the power of compounding that stuff's out there there's so many things stuff's out there there's so many things stuff's out there there's so many things that you got to go to money calm and get that you got to go to money calm and get that you got to go to money calm and get this resource this also helps us we this resource this also helps us we this resource this also helps us we logically sending out the email updates logically sending out the email updates logically sending out the email updates this is so much better if you just get this is so much better if you just get this is so much better if you just get it on your own time when you want it it on your own time when you want it it on your own time when you want it instead of creating some process and instead of creating some process and instead of creating some process and burying it in your email inbox somewhere burying it in your email inbox somewhere burying it in your email inbox somewhere now you just all / seven days a week now you just all / seven days a week now you just all / seven days a week I mean we're like Waffle House the I mean we're like Waffle House the I mean we're like Waffle House the resources are there so keep it going resources are there so keep it going resources are there so keep it going then that leads to well you you said use then that leads to well you you said use then that leads to well you you said use the word abundance we have this whole the word abundance we have this whole the word abundance we have this whole thing internally we talk about the thing internally we talk about the thing internally we talk about the abundance cycle where you come here we abundance cycle where you come here we abundance cycle where you come here we completely give it away I had to troll completely give it away I had to troll completely give it away I had to troll this it just got crawled out of a bridge this it just got crawled out of a bridge this it just got crawled out of a bridge was beating up on us and I was like was beating up on us and I was like was beating up on us and I was like guess what checks in the mail I'm guess what checks in the mail I'm guess what checks in the mail I'm sending you the refund check for what sending you the refund check for what sending you the refund check for what you paid you know I can say that very you paid you know I can say that very you paid you know I can say that very comfortably because we give away tons of comfortably because we give away tons of comfortably because we give away tons of free advice this is your resource you free advice this is your resource you free advice this is your resource you come and it's part of the abundance come and it's part of the abundance come and it's part of the abundance cycle we give it away for free on cycle we give it away for free on cycle we give it away for free on purpose because we want you to come purpose because we want you to come purpose because we want you to come learn apply aggro and then at some point learn apply aggro and then at some point learn apply aggro and then at some point you reach such a level of success you go you reach such a level of success you go you reach such a level of success you go I can't do this on my on my own anymore I can't do this on my on my own anymore I can't do this on my on my own anymore and that's when you'll say I need to and that's when you'll say I need to and that's when you'll say I need to have somebody to help me do this measure have somebody to help me do this measure have somebody to help me do this measure twice cut once you gonna think about the twice cut once you gonna think about the twice cut once you gonna think about the money guys show and the financial money guys show and the financial money guys show and the financial planners from abound West right and planners from abound West right and planners from abound West right and that's that does complete the abundance that's that does complete the abundance that's that does complete the abundance cycle and we could not do this without cycle and we could not do this without cycle and we could not do this without you guys and we feel so appreciative you guys and we feel so appreciative you guys and we feel so appreciative thank you thank you thank you and we thank you thank you thank you and we thank you thank you thank you and we started this in it continues to started this in it continues to started this in it continues to bear fruit it started as an online bear fruit it started as an online bear fruit it started as an online classroom but it is turned out to be a classroom but it is turned out to be a classroom but it is turned out to be a great way for us to meet people all great way for us to meet people all great way for us to meet people all across the country so thank you thank across the country so thank you thank across the country so thank you thank you you you I'm brown Preston my co-host mr. I'm brown Preston my co-host mr. I'm brown Preston my co-host mr. Bohannon Bohannon Bohannon sin money got team out WEBVTT Kind: captions Language: en all right guys it's time to talk about all right guys it's time to talk about all right guys it's time to talk about it there's an elephant in the room Dave it there's an elephant in the room Dave it there's an elephant in the room Dave Ramsey fire community which one do I Ramsey fire community which one do I Ramsey fire community which one do I follow who do I think is right who is follow who do I think is right who is follow who do I think is right who is right who's wrong yeah let's let's talk right who's wrong yeah let's let's talk right who's wrong yeah let's let's talk about it be friends Oh gonna freedom in about it be friends Oh gonna freedom in about it be friends Oh gonna freedom in a budget I'm Kelly thank you so much for a budget I'm Kelly thank you so much for a budget I'm Kelly thank you so much for stopping by my channel I am teaming up stopping by my channel I am teaming up stopping by my channel I am teaming up with jayjay Buckner today I am so pumped with jayjay Buckner today I am so pumped with jayjay Buckner today I am so pumped for this JJ and I haven't friends for for this JJ and I haven't friends for for this JJ and I haven't friends for quite a while now and it is time that we quite a while now and it is time that we quite a while now and it is time that we team up and do a collab together so if team up and do a collab together so if team up and do a collab together so if you're coming over from JJ's channel and you're coming over from JJ's channel and you're coming over from JJ's channel and Kelly and my channel is all about living Kelly and my channel is all about living Kelly and my channel is all about living life well on a budget and living your life well on a budget and living your life well on a budget and living your full great life with the aid of a budget full great life with the aid of a budget full great life with the aid of a budget and it doesn't have to be constricting and it doesn't have to be constricting and it doesn't have to be constricting and you can't do anything and no you can and you can't do anything and no you can and you can't do anything and no you can have a really fun full life on a budget have a really fun full life on a budget have a really fun full life on a budget we're going to Alaska this year like we're going to Alaska this year like we're going to Alaska this year like that's crazy we catch float a car catch that's crazy we catch float a car catch that's crazy we catch float a car catch a little wedding going to Alaska you can a little wedding going to Alaska you can a little wedding going to Alaska you can do so many amazing fun at things with do so many amazing fun at things with do so many amazing fun at things with your life when you put your money to your life when you put your money to your life when you put your money to good use and when you are in control of good use and when you are in control of good use and when you are in control of your money versus your money in control your money versus your money in control your money versus your money in control of you so that's what my channel is all of you so that's what my channel is all of you so that's what my channel is all about I love sharing tips and tricks and about I love sharing tips and tricks and about I love sharing tips and tricks and just my life and what my husband and I just my life and what my husband and I just my life and what my husband and I are doing it's so much fun so if you're are doing it's so much fun so if you're are doing it's so much fun so if you're new at please subscribe to my channel I new at please subscribe to my channel I new at please subscribe to my channel I also have a blog that they'll have also have a blog that they'll have also have a blog that they'll have linked down below for you guys as well linked down below for you guys as well linked down below for you guys as well so an Instagram I'm on Instagram a lot so an Instagram I'm on Instagram a lot so an Instagram I'm on Instagram a lot so please check me out everything will so please check me out everything will so please check me out everything will be down below in the description and be down below in the description and be down below in the description and guys if you don't know JJ Buckner you guys if you don't know JJ Buckner you guys if you don't know JJ Buckner you are missing out he is incredible he has are missing out he is incredible he has are missing out he is incredible he has done it so many amazing things with done it so many amazing things with done it so many amazing things with YouTube he actually hit a thousand YouTube he actually hit a thousand YouTube he actually hit a thousand subscribers on my channel and there was subscribers on my channel and there was subscribers on my channel and there was a clip that he did it we did a a clip that he did it we did a a clip that he did it we did a livestream and he played this song it livestream and he played this song it livestream and he played this song it was dancing was so much fun it was was dancing was so much fun it was was dancing was so much fun it was probably the highlight of my youtube probably the highlight of my youtube probably the highlight of my youtube career and amazing so I wanted to play career and amazing so I wanted to play career and amazing so I wanted to play the clip for you but JJ you're a newbie the clip for you but JJ you're a newbie the clip for you but JJ you're a newbie and he didn't know about copyright music and he didn't know about copyright music and he didn't know about copyright music and how that works so we did this song and how that works so we did this song and how that works so we did this song that was not top-grade approved so I that was not top-grade approved so I that was not top-grade approved so I cannot play the clip because I don't cannot play the clip because I don't cannot play the clip because I don't want to get D monetized but here's a want to get D monetized but here's a want to get D monetized but here's a screenshot of it and you can tell we screenshot of it and you can tell we screenshot of it and you can tell we were having fun and JJ was dancing so were having fun and JJ was dancing so were having fun and JJ was dancing so I'll try to find that live streaming I'll try to find that live streaming I'll try to find that live streaming link you down below as well but JJ his link you down below as well but JJ his link you down below as well but JJ his channel is incredible so go check him channel is incredible so go check him channel is incredible so go check him out it is my goal to get him to , out it is my goal to get him to , out it is my goal to get him to , subscribers from this collab he's really subscribers from this collab he's really subscribers from this collab he's really close only a cup close only a cup close only a cup thousand away so my goal is to get him thousand away so my goal is to get him thousand away so my goal is to get him to ten thousand he hit a thousand on my to ten thousand he hit a thousand on my to ten thousand he hit a thousand on my channel and my goal is to hit for him to channel and my goal is to hit for him to channel and my goal is to hit for him to hit ten thousand because of this hit ten thousand because of this hit ten thousand because of this collapse so go check him out subscribe collapse so go check him out subscribe collapse so go check him out subscribe to his channel let him know that Kelly to his channel let him know that Kelly to his channel let him know that Kelly from freedom in a budget sent you he's from freedom in a budget sent you he's from freedom in a budget sent you he's also doing a video on this topic it's also doing a video on this topic it's also doing a video on this topic it's gonna be awesome he does a lot of gonna be awesome he does a lot of gonna be awesome he does a lot of investing he does saving money saving investing he does saving money saving investing he does saving money saving tips he does even a couple meals it's tips he does even a couple meals it's tips he does even a couple meals it's awesome so his son is super cute his awesome so his son is super cute his awesome so his son is super cute his wife is amazing go check him out let him wife is amazing go check him out let him wife is amazing go check him out let him know that Kelly from freedom in a budget know that Kelly from freedom in a budget know that Kelly from freedom in a budget sent you alright so we're gonna jump sent you alright so we're gonna jump sent you alright so we're gonna jump into this this is gonna be an into this this is gonna be an into this this is gonna be an interesting video like said Gigi is also interesting video like said Gigi is also interesting video like said Gigi is also doing a video on his channel and we're doing a video on his channel and we're doing a video on his channel and we're gonna talk about the fire community gonna talk about the fire community gonna talk about the fire community versus Dave Ramsey and kind of compare versus Dave Ramsey and kind of compare versus Dave Ramsey and kind of compare and contrast the two now disclaimer and contrast the two now disclaimer and contrast the two now disclaimer disclaimer this is not going to be a disclaimer this is not going to be a disclaimer this is not going to be a bad-mouthing video I'm not gonna throw bad-mouthing video I'm not gonna throw bad-mouthing video I'm not gonna throw shade on either of the communities I shade on either of the communities I shade on either of the communities I respect them both so much I personally respect them both so much I personally respect them both so much I personally started my personal finance journey started my personal finance journey started my personal finance journey through Dave Ramsey and he is my through Dave Ramsey and he is my through Dave Ramsey and he is my foundation of how I got it a debt and foundation of how I got it a debt and foundation of how I got it a debt and all of that stuff and now I'm learning all of that stuff and now I'm learning all of that stuff and now I'm learning more and more about the fire community more and more about the fire community more and more about the fire community and it's so cool to see how the and it's so cool to see how the and it's so cool to see how the communities are very similar but they do communities are very similar but they do communities are very similar but they do differ in some ways so we're going to differ in some ways so we're going to differ in some ways so we're going to break it down if you are hearing about break it down if you are hearing about break it down if you are hearing about the fire community if you're hearing the fire community if you're hearing the fire community if you're hearing about Dave Ramsey here in one community about Dave Ramsey here in one community about Dave Ramsey here in one community and confused about the other this is a and confused about the other this is a and confused about the other this is a great video great video great video JJ's videos gonna be great as well of JJ's videos gonna be great as well of JJ's videos gonna be great as well of kind of just breaking it down and kind kind of just breaking it down and kind kind of just breaking it down and kind of comparing contrasting a movie doing a of comparing contrasting a movie doing a of comparing contrasting a movie doing a kind of Venn diagram or going back to kind of Venn diagram or going back to kind of Venn diagram or going back to like middle school Venn diagram what's like middle school Venn diagram what's like middle school Venn diagram what's different what's similar in the middle different what's similar in the middle different what's similar in the middle and just kind of bring it down so before and just kind of bring it down so before and just kind of bring it down so before we get into everything too much is there we get into everything too much is there we get into everything too much is there is the two communities like I said is the two communities like I said is the two communities like I said there's the Dave Ramsey community you there's the Dave Ramsey community you there's the Dave Ramsey community you guys know what he's about he's all about guys know what he's about he's all about guys know what he's about he's all about paying off debts no credit cards paying off debts no credit cards paying off debts no credit cards everything like that of living really everything like that of living really everything like that of living really really frugally and below your means so really frugally and below your means so really frugally and below your means so that you can pay off all of your debt that you can pay off all of your debt that you can pay off all of your debt and then eventually build wealth and and then eventually build wealth and and then eventually build wealth and give then there's the fire community give then there's the fire community give then there's the fire community which has two different parts its which has two different parts its which has two different parts its financial independence retire early fi financial independence retire early fi financial independence retire early fi re two different parts but they all come re two different parts but they all come re two different parts but they all come together and a lot of those people are together and a lot of those people are together and a lot of those people are like mister money mustache and choose fi like mister money mustache and choose fi like mister money mustache and choose fi those are the really big ones that those are the really big ones that those are the really big ones that now in my head and I know there's tons now in my head and I know there's tons now in my head and I know there's tons more but those are the big ones in my more but those are the big ones in my more but those are the big ones in my that I'm learning everything from and that I'm learning everything from and that I'm learning everything from and the fire community is all about early the fire community is all about early the fire community is all about early retirement and we're gonna get into a retirement and we're gonna get into a retirement and we're gonna get into a little deeper of that in a little bit so little deeper of that in a little bit so little deeper of that in a little bit so first thing is both communities are first thing is both communities are first thing is both communities are really big on debt paths you cannot get really big on debt paths you cannot get really big on debt paths you cannot get ahead successfully and everything if ahead successfully and everything if ahead successfully and everything if you're if you're in this lump of you're if you're in this lump of you're if you're in this lump of consumer debt and it's just a weighing consumer debt and it's just a weighing consumer debt and it's just a weighing on your shoulders both communities are on your shoulders both communities are on your shoulders both communities are really big I'll just get rid of the debt really big I'll just get rid of the debt really big I'll just get rid of the debt pay it off and if there's the debt pay it off and if there's the debt pay it off and if there's the debt snowball method the de avalanche method snowball method the de avalanche method snowball method the de avalanche method it's there's two different types of ways it's there's two different types of ways it's there's two different types of ways of doing it of doing it of doing it both are great different philosophies on both are great different philosophies on both are great different philosophies on both ones I'll have a video link down both ones I'll have a video link down both ones I'll have a video link down below on which one it's how they work below on which one it's how they work below on which one it's how they work and which one would be best for you I and which one would be best for you I and which one would be best for you I think it's a really big personal think it's a really big personal think it's a really big personal decision decision decision so both communities are big on debt so both communities are big on debt so both communities are big on debt payoff and just getting rid of your debt payoff and just getting rid of your debt payoff and just getting rid of your debt in the day for MC baby steps he has in the day for MC baby steps he has in the day for MC baby steps he has seven baby steps seven baby steps seven baby steps the first one is thousand-dollar the first one is thousand-dollar the first one is thousand-dollar emergency fund number two is pay off all emergency fund number two is pay off all emergency fund number two is pay off all of your non mortgage debt with the debt of your non mortgage debt with the debt of your non mortgage debt with the debt snowball number three is three to six snowball number three is three to six snowball number three is three to six months of emergency expenses there's months of emergency expenses there's months of emergency expenses there's kind of a b in that is safer a down kind of a b in that is safer a down kind of a b in that is safer a down payment payment payment baby step four is invest fifteen percent baby step four is invest fifteen percent baby step four is invest fifteen percent of your income baby step is safe for of your income baby step is safe for of your income baby step is safe for college for your kids college number six college for your kids college number six college for your kids college number six is to pay off your home early number is to pay off your home early number is to pay off your home early number seven is build wealth and give so those seven is build wealth and give so those seven is build wealth and give so those are the Dave rooms the baby steps I'm are the Dave rooms the baby steps I'm are the Dave rooms the baby steps I'm sure you guys have heard of them now sure you guys have heard of them now sure you guys have heard of them now similar to the baby steps the fire similar to the baby steps the fire similar to the baby steps the fire community also has the ten pillars of FI community also has the ten pillars of FI community also has the ten pillars of FI this I have from the choose Fi website this I have from the choose Fi website this I have from the choose Fi website which will have it linked down below which will have it linked down below which will have it linked down below there's a whole blog post which breaks there's a whole blog post which breaks there's a whole blog post which breaks them down even more but we're just going them down even more but we're just going them down even more but we're just going to list the ten here so the first one is to list the ten here so the first one is to list the ten here so the first one is low-cost index funds low-cost index funds low-cost index funds number two low-cost housing number three number two low-cost housing number three number two low-cost housing number three buy used cars number four crush your buy used cars number four crush your buy used cars number four crush your grocery bill number five tax grocery bill number five tax grocery bill number five tax optimization which is about rough optimization which is about rough optimization which is about rough conversion ladder and capital gains conversion ladder and capital gains conversion ladder and capital gains harvesting number six college hacking harvesting number six college hacking harvesting number six college hacking number seven travel awards number eight number seven travel awards number eight number seven travel awards number eight cut the cord and cell phone hacking and cut the cord and cell phone hacking and cut the cord and cell phone hacking and cable number nine side hustle and number cable number nine side hustle and number cable number nine side hustle and number ten savings right in the % rule so ten savings right in the % rule so ten savings right in the % rule so those are the big ten those are the big ten those are the big ten FFI that true spy has listed on their FFI that true spy has listed on their FFI that true spy has listed on their blog and I think they're the ones that blog and I think they're the ones that blog and I think they're the ones that came up with I'm not % sure but I came up with I'm not % sure but I came up with I'm not % sure but I think so and it's I love this I love think so and it's I love this I love think so and it's I love this I love this breakdown of it and this is really this breakdown of it and this is really this breakdown of it and this is really a great beginner's guide to financial a great beginner's guide to financial a great beginner's guide to financial independence is these ten steps it's independence is these ten steps it's independence is these ten steps it's going to really help you just like the going to really help you just like the going to really help you just like the seven baby steps really helps you to seven baby steps really helps you to seven baby steps really helps you to build that wealth that get to that point build that wealth that get to that point build that wealth that get to that point where you can build wealth and give so where you can build wealth and give so where you can build wealth and give so one thing to remember is Dave Ramsey's one thing to remember is Dave Ramsey's one thing to remember is Dave Ramsey's plan is very specific it is very cut and plan is very specific it is very cut and plan is very specific it is very cut and dry there's not much room for a gray and dry there's not much room for a gray and dry there's not much room for a gray and you have the die-hard Dave Ramsey plan you have the die-hard Dave Ramsey plan you have the die-hard Dave Ramsey plan the people that are super in it they're the people that are super in it they're the people that are super in it they're super this is the way to do it no super this is the way to do it no super this is the way to do it no varying from any of it and my thing is varying from any of it and my thing is varying from any of it and my thing is he's speaking to the masses you know he he's speaking to the masses you know he he's speaking to the masses you know he has to be very specific because if he has to be very specific because if he has to be very specific because if he gives people an inch they're gonna take gives people an inch they're gonna take gives people an inch they're gonna take a mile and they're gonna run with it and a mile and they're gonna run with it and a mile and they're gonna run with it and be like well Dave Ramsey told me I can be like well Dave Ramsey told me I can be like well Dave Ramsey told me I can do this so he has to be very specific do this so he has to be very specific do this so he has to be very specific and in that and so just remember that and in that and so just remember that and in that and so just remember that he's speaking to the masses and you know he's speaking to the masses and you know he's speaking to the masses and you know one little thing you may have to tweak one little thing you may have to tweak one little thing you may have to tweak to work you with you and your husband or to work you with you and your husband or to work you with you and your husband or you and your spouse's budget but that you and your spouse's budget but that you and your spouse's budget but that doesn't mean you're doing it wrong you doesn't mean you're doing it wrong you doesn't mean you're doing it wrong you know you have to do what's gonna be best know you have to do what's gonna be best know you have to do what's gonna be best for your your plan and your financial for your your plan and your financial for your your plan and your financial future for your family and the fire future for your family and the fire future for your family and the fire community is more able to be customized community is more able to be customized community is more able to be customized to you the fire community is a very big to you the fire community is a very big to you the fire community is a very big on what's gonna work best for you how on what's gonna work best for you how on what's gonna work best for you how can we optimize this to be you know for can we optimize this to be you know for can we optimize this to be you know for your family for your budget and they your family for your budget and they your family for your budget and they kind of dig deeper and a lot of things kind of dig deeper and a lot of things kind of dig deeper and a lot of things so Dave is very broad and we're gonna so Dave is very broad and we're gonna so Dave is very broad and we're gonna dig deeper into how he's brought in how dig deeper into how he's brought in how dig deeper into how he's brought in how the fire community kind of digs in the fire community kind of digs in the fire community kind of digs in like for example baby step three is safe like for example baby step three is safe like for example baby step three is safe three to six months that's always said three to six months that's always said three to six months that's always said it's a safe three to six months okay it's a safe three to six months okay it's a safe three to six months okay what am I doing with it where am I what am I doing with it where am I what am I doing with it where am I putting it how do I make the most of putting it how do I make the most of putting it how do I make the most of those three to six months that's where those three to six months that's where those three to six months that's where the fire community is a little bit more the fire community is a little bit more the fire community is a little bit more detailed how about some high-yield detailed how about some high-yield detailed how about some high-yield savings accounts like a liar Capital One savings accounts like a liar Capital One savings accounts like a liar Capital One guys those are great savings guys those are great savings guys those are great savings accounts that you can dig in and you can accounts that you can dig in and you can accounts that you can dig in and you can get a return on your money Dave doesn't get a return on your money Dave doesn't get a return on your money Dave doesn't really go into that in detail whereas really go into that in detail whereas really go into that in detail whereas the fire community kind of gives some of the fire community kind of gives some of the fire community kind of gives some of those further steps where they can dig those further steps where they can dig those further steps where they can dig in a little bit and give in a little bit and give in a little bit and give more detail another example that they more detail another example that they more detail another example that they differ is okay let's take an example for differ is okay let's take an example for differ is okay let's take an example for my Jeep you guys know I just bought a my Jeep you guys know I just bought a my Jeep you guys know I just bought a jeep I paid cash for it my dream car jeep I paid cash for it my dream car jeep I paid cash for it my dream car it's amazing I still love it had it for it's amazing I still love it had it for it's amazing I still love it had it for six months now and it's amazing best car six months now and it's amazing best car six months now and it's amazing best car ever it was loaned by far it's a ever it was loaned by far it's a ever it was loaned by far it's a twenty-five thousand dollar Jeep I paid twenty-five thousand dollar Jeep I paid twenty-five thousand dollar Jeep I paid it bought it used but I feel like it's it bought it used but I feel like it's it bought it used but I feel like it's like a hundred thousand dollar car it is like a hundred thousand dollar car it is like a hundred thousand dollar car it is such a step up for any previous car but such a step up for any previous car but such a step up for any previous car but Dave Ramsey one hundred percent pay cash Dave Ramsey one hundred percent pay cash Dave Ramsey one hundred percent pay cash no questions asked and a lot of people no questions asked and a lot of people no questions asked and a lot of people refer to this as their Dave car so this refer to this as their Dave car so this refer to this as their Dave car so this is the car that they buy when they've is the car that they buy when they've is the car that they buy when they've gotten out of debt there's a lot gotten out of debt there's a lot gotten out of debt there's a lot misconception on a deep car some people misconception on a deep car some people misconception on a deep car some people think it's the like beater that gives think it's the like beater that gives think it's the like beater that gives barely chugging getting down the road barely chugging getting down the road barely chugging getting down the road you can you bought for five hundred you can you bought for five hundred you can you bought for five hundred dollars and it's what's gonna get you dollars and it's what's gonna get you dollars and it's what's gonna get you out of debt no your Dave car is your car out of debt no your Dave car is your car out of debt no your Dave car is your car that you worked hard for and you're able that you worked hard for and you're able that you worked hard for and you're able to pay cash so that's what that is to pay cash so that's what that is to pay cash so that's what that is now we followed this the Dave Ramsey now we followed this the Dave Ramsey now we followed this the Dave Ramsey method now the fire community they may method now the fire community they may method now the fire community they may take a different spin they may say okay take a different spin they may say okay take a different spin they may say okay let's run some numbers what if you had a let's run some numbers what if you had a let's run some numbers what if you had a nice down payment so the cars twenty nice down payment so the cars twenty nice down payment so the cars twenty five thousand dollars five thousand dollars five thousand dollars what if you saved ten thousand dollars what if you saved ten thousand dollars what if you saved ten thousand dollars for a good down payment and then the for a good down payment and then the for a good down payment and then the other fifteen you took out a loan for other fifteen you took out a loan for other fifteen you took out a loan for but you invested it so you've saved but you invested it so you've saved but you invested it so you've saved twenty five thousand dollars total but twenty five thousand dollars total but twenty five thousand dollars total but that other fifteen thousand you put into that other fifteen thousand you put into that other fifteen thousand you put into investments is making a higher return investments is making a higher return investments is making a higher return than the payment so the payment may have than the payment so the payment may have than the payment so the payment may have three percent interest but you're three percent interest but you're three percent interest but you're getting six percent interest in your getting six percent interest in your getting six percent interest in your investments so they're kind of more of investments so they're kind of more of investments so they're kind of more of leveraging that dead and they say that leveraging that dead and they say that leveraging that dead and they say that there may be good dead Dave is very anti there may be good dead Dave is very anti there may be good dead Dave is very anti debt there is no such thing as good day debt there is no such thing as good day debt there is no such thing as good day the the fire committee says you may be the the fire committee says you may be the the fire committee says you may be able to leverage some stuff you may be able to leverage some stuff you may be able to leverage some stuff you may be able to make more money on your able to make more money on your able to make more money on your investments then the then the car investments then the then the car investments then the then the car payment is where as Davis says no he payment is where as Davis says no he payment is where as Davis says no he says you know your slate to the lender says you know your slate to the lender says you know your slate to the lender and I personally kind of fall more into and I personally kind of fall more into and I personally kind of fall more into that I don't like to I don't like having that I don't like to I don't like having that I don't like to I don't like having car loans or anything like that I just car loans or anything like that I just car loans or anything like that I just wanted to pay cash for so that's a big wanted to pay cash for so that's a big wanted to pay cash for so that's a big difference between the fire community difference between the fire community difference between the fire community and Dave Ramsey community another one is and Dave Ramsey community another one is and Dave Ramsey community another one is still investing while you're paying off still investing while you're paying off still investing while you're paying off debt Dave Ramsey very untie i investing debt Dave Ramsey very untie i investing debt Dave Ramsey very untie i investing while you were in baby cept - and even while you were in baby cept - and even while you were in baby cept - and even three that he wants every single penny three that he wants every single penny three that he wants every single penny that you can put towards your debt or that you can put towards your debt or that you can put towards your debt or your student loans or anything you have your student loans or anything you have your student loans or anything you have to that and not be investing you can to that and not be investing you can to that and not be investing you can catch up you can invest extra but while catch up you can invest extra but while catch up you can invest extra but while you are paying off your debt no you are paying off your debt no you are paying off your debt no investing stop it the you can make up investing stop it the you can make up investing stop it the you can make up that difference where's the fire that difference where's the fire that difference where's the fire community is is different in that they community is is different in that they community is is different in that they say no do it at least get at your say no do it at least get at your say no do it at least get at your company match you want to be at least company match you want to be at least company match you want to be at least contributing to your K if they have contributing to your K if they have contributing to your K if they have a company match and start that process a company match and start that process a company match and start that process so earlier that you can start investing so earlier that you can start investing so earlier that you can start investing the more traction you'll be able to make the more traction you'll be able to make the more traction you'll be able to make later on and a big part of their later on and a big part of their later on and a big part of their community is investing and we're going community is investing and we're going community is investing and we're going to get into that a little bit with the to get into that a little bit with the to get into that a little bit with the % rule but the more money that you can % rule but the more money that you can % rule but the more money that you can put into your investments in your future put into your investments in your future put into your investments in your future the better another difference is what the better another difference is what the better another difference is what are you doing with your investments you are you doing with your investments you are you doing with your investments you know Dave is big on foreign k IRA mutual know Dave is big on foreign k IRA mutual know Dave is big on foreign k IRA mutual funds whereas the fire community is more funds whereas the fire community is more funds whereas the fire community is more about low-cost index funds and about low-cost index funds and about low-cost index funds and maximizing that and also doing IRA and maximizing that and also doing IRA and maximizing that and also doing IRA and everything but they really get into the everything but they really get into the everything but they really get into the dirt of investing and talk about dirt of investing and talk about dirt of investing and talk about different strategies and and really different strategies and and really different strategies and and really break it all down whereas Dave is just break it all down whereas Dave is just break it all down whereas Dave is just kind of cut and dry it doesn't give too kind of cut and dry it doesn't give too kind of cut and dry it doesn't give too much detail on it on how to do it but much detail on it on how to do it but much detail on it on how to do it but there for our community really goes into there for our community really goes into there for our community really goes into a lot of detail on investing if you want a lot of detail on investing if you want a lot of detail on investing if you want to learn how to open up IRA you can get to learn how to open up IRA you can get to learn how to open up IRA you can get the information if you want to learn how the information if you want to learn how the information if you want to learn how to do this and all the different types to do this and all the different types to do this and all the different types of investing I'm still really new to of investing I'm still really new to of investing I'm still really new to investing and still learning on investing and still learning on investing and still learning on investing but they really dig into it investing but they really dig into it investing but they really dig into it and they really give you so much and they really give you so much and they really give you so much information there's so much knowledge information there's so much knowledge information there's so much knowledge out there on how to invest how to make out there on how to invest how to make out there on how to invest how to make the most of your investments right now the most of your investments right now the most of your investments right now two-thirds of Millennials have not two-thirds of Millennials have not two-thirds of Millennials have not started saving for their retirement to started saving for their retirement to started saving for their retirement to me that's really scary that is my me that's really scary that is my me that's really scary that is my generation and that's scary that they generation and that's scary that they generation and that's scary that they don't have anything save for retirement don't have anything save for retirement don't have anything save for retirement I just turned and I wish that I had I just turned and I wish that I had I just turned and I wish that I had started investing years and years and started investing years and years and started investing years and years and years ago the biggest regret that people years ago the biggest regret that people years ago the biggest regret that people have about retirement is that they have about retirement is that they have about retirement is that they didn't start early enough so that is a didn't start early enough so that is a didn't start early enough so that is a big difference between the fire big difference between the fire big difference between the fire community and Dave Dave Ramsey is Davis community and Dave Dave Ramsey is Davis community and Dave Dave Ramsey is Davis wait until you're out of debt which wait until you're out of debt which wait until you're out of debt which could be till you're but the fire could be till you're but the fire could be till you're but the fire committee says no Starkey hunks start committee says no Starkey hunks start committee says no Starkey hunks start early JJ Buckner he's already bought early JJ Buckner he's already bought early JJ Buckner he's already bought stocks for his son and his son is one to stocks for his son and his son is one to stocks for his son and his son is one to me me like that's so cool that he is me me like that's so cool that he is me me like that's so cool that he is already getting stocks for his son in already getting stocks for his son in already getting stocks for his son in starting his investments now while he's starting his investments now while he's starting his investments now while he's so young that it like imagine what so young that it like imagine what so young that it like imagine what that's gonna be when he's and that's gonna be when he's and that's gonna be when he's and years old that's incredible apps years old that's incredible apps years old that's incredible apps incredible back to leveraging debt so incredible back to leveraging debt so incredible back to leveraging debt so the fire community is really big on the fire community is really big on the fire community is really big on leveraging it and making sure that leveraging it and making sure that leveraging it and making sure that you're getting the most out of your debt you're getting the most out of your debt you're getting the most out of your debt and your investments and they say there and your investments and they say there and your investments and they say there are some things as good debt and they're are some things as good debt and they're are some things as good debt and they're really big on house hacking so that is really big on house hacking so that is really big on house hacking so that is something that is so cool and what that something that is so cool and what that something that is so cool and what that is is buying a duplex or triplex or quad is is buying a duplex or triplex or quad is is buying a duplex or triplex or quad Plex and living in one of the units and Plex and living in one of the units and Plex and living in one of the units and then having the mortgage being paid for then having the mortgage being paid for then having the mortgage being paid for your tenants or paid for by your tenants your tenants or paid for by your tenants your tenants or paid for by your tenants so that your tenants are paying your so that your tenants are paying your so that your tenants are paying your mortgage paying for your house your mortgage paying for your house your mortgage paying for your house your living for free and making money and living for free and making money and living for free and making money and then it's just going on and on and on then it's just going on and on and on then it's just going on and on and on and having multiple rental properties in and having multiple rental properties in and having multiple rental properties in rental property is a great way to build rental property is a great way to build rental property is a great way to build wealth fast rental properties are best wealth fast rental properties are best wealth fast rental properties are best ways to build wealth according to the ways to build wealth according to the ways to build wealth according to the fire community now dave is very anti fire community now dave is very anti fire community now dave is very anti having a loan you know baby step six is having a loan you know baby step six is having a loan you know baby step six is paying off your house early he wants paying off your house early he wants paying off your house early he wants that out of there and because it's dead that out of there and because it's dead that out of there and because it's dead and so he is okay with getting a house and so he is okay with getting a house and so he is okay with getting a house while you are in debt if you can do it while you are in debt if you can do it while you are in debt if you can do it within under percent of your within under percent of your within under percent of your take-home pay and making sure that you take-home pay and making sure that you take-home pay and making sure that you are not buying too much house but in the are not buying too much house but in the are not buying too much house but in the long run that you want to pay off your long run that you want to pay off your long run that you want to pay off your house early so that you can leverage house early so that you can leverage house early so that you can leverage that and build wealth from it now what that and build wealth from it now what that and build wealth from it now what are the things that is really big in the are the things that is really big in the are the things that is really big in the fire community and financial fire community and financial fire community and financial independence is the four percent rule independence is the four percent rule independence is the four percent rule now I'm gonna preface this by saying I'm now I'm gonna preface this by saying I'm now I'm gonna preface this by saying I'm still learning about it it's I'm still still learning about it it's I'm still still learning about it it's I'm still very new to it but I'm so fascinated very new to it but I'm so fascinated very new to it but I'm so fascinated with the concept so the four percent with the concept so the four percent with the concept so the four percent rule is kind of confusing to stay with rule is kind of confusing to stay with rule is kind of confusing to stay with me it is taking your annual expenses not me it is taking your annual expenses not me it is taking your annual expenses not salary but expenses putting that into salary but expenses putting that into salary but expenses putting that into investments once you have reached investments once you have reached investments once you have reached times your annual expenses you can live times your annual expenses you can live times your annual expenses you can live off of that by only taking four percent off of that by only taking four percent off of that by only taking four percent of each year so when you have that of each year so when you have that of each year so when you have that times your annual expenses and times your annual expenses and times your annual expenses and investments you can take that out investments you can take that out investments you can take that out tax-free with no tax penalties at four tax-free with no tax penalties at four tax-free with no tax penalties at four percent of it each year and live off of percent of it each year and live off of percent of it each year and live off of that for the rest of your life like that for the rest of your life like that for the rest of your life like that's crazy cool how they did the math that's crazy cool how they did the math that's crazy cool how they did the math for that so once you have that four for that so once you have that four for that so once you have that four percent into your investment you're able percent into your investment you're able percent into your investment you're able to take that out without any tax to take that out without any tax to take that out without any tax penalties and live off of it for the penalties and live off of it for the penalties and live off of it for the rest of your life a lot of people in the rest of your life a lot of people in the rest of your life a lot of people in the fire committee are reaching this at fire committee are reaching this at fire committee are reaching this at really young ages they're reaching it at really young ages they're reaching it at really young ages they're reaching it at whatever it may be and then when whatever it may be and then when whatever it may be and then when they reach it okay what am I going to do they reach it okay what am I going to do they reach it okay what am I going to do sit on a beach and just sit cocktails no sit on a beach and just sit cocktails no sit on a beach and just sit cocktails no they're going out and they're doing they're going out and they're doing they're going out and they're doing passionate projects they're going out passionate projects they're going out passionate projects they're going out and doing things that are meaningful and and doing things that are meaningful and and doing things that are meaningful and can they work so yeah absolutely but can they work so yeah absolutely but can they work so yeah absolutely but they're not tied to that job they're not they're not tied to that job they're not they're not tied to that job they're not tied to having to go in work they're tied to having to go in work they're tied to having to go in work they're able to do things that they want to if able to do things that they want to if able to do things that they want to if you're interested in getting more you're interested in getting more you're interested in getting more information on both of these I want to information on both of these I want to information on both of these I want to recommend two books for you so the first recommend two books for you so the first recommend two books for you so the first one is playing with fire and this is one is playing with fire and this is one is playing with fire and this is obviously for the fire community and obviously for the fire community and obviously for the fire community and then also the Total Money Makeover so then also the Total Money Makeover so then also the Total Money Makeover so I'll have my Amazon affiliate links down I'll have my Amazon affiliate links down I'll have my Amazon affiliate links down below for both of them so you can go below for both of them so you can go below for both of them so you can go check them out if you're interested check them out if you're interested check them out if you're interested audio book or digital copy whatever you audio book or digital copy whatever you audio book or digital copy whatever you want or paperback copy they'll be down want or paperback copy they'll be down want or paperback copy they'll be down below in the description I think that's below in the description I think that's below in the description I think that's gonna really give you a lot of more gonna really give you a lot of more gonna really give you a lot of more information there's also a documentary information there's also a documentary information there's also a documentary coming out called playing with fire that coming out called playing with fire that coming out called playing with fire that is coming out and I think July different is coming out and I think July different is coming out and I think July different cities I'm going to be going to the cities I'm going to be going to the cities I'm going to be going to the viewing here in South Florida I'm so viewing here in South Florida I'm so viewing here in South Florida I'm so pumped for it but it's gonna be really pumped for it but it's gonna be really pumped for it but it's gonna be really cool to see the community and what comes cool to see the community and what comes cool to see the community and what comes from this all right here's the next one from this all right here's the next one from this all right here's the next one credit cards credit cards credit card is credit cards credit cards credit card is credit cards credit cards credit card is this gonna be a hot topic I'm nervous this gonna be a hot topic I'm nervous this gonna be a hot topic I'm nervous but it's okay Dave Ramsey no cut them up but it's okay Dave Ramsey no cut them up but it's okay Dave Ramsey no cut them up get rid of them no credit cards get rid of them no credit cards get rid of them no credit cards whatsoever power can be credit card whatsoever power can be credit card whatsoever power can be credit card hacking credit card hacking is awesome hacking credit card hacking is awesome hacking credit card hacking is awesome according to the fire community credit according to the fire community credit according to the fire community credit card happening hacking is really big on card happening hacking is really big on card happening hacking is really big on getting free travel and optimizing the getting free travel and optimizing the getting free travel and optimizing the rewards points the cash back deals the rewards points the cash back deals the rewards points the cash back deals the the flights and the points and the miles the flights and the points and the miles the flights and the points and the miles and all of that they're really big on and all of that they're really big on and all of that they're really big on credit card happening now I like to credit card happening now I like to credit card happening now I like to describe credit cards like alcohol now describe credit cards like alcohol now describe credit cards like alcohol now stay with me interesting analogy I look stay with me interesting analogy I look stay with me interesting analogy I look at credit cards like alcohol some people at credit cards like alcohol some people at credit cards like alcohol some people have one sip one swipe a credit card and have one sip one swipe a credit card and have one sip one swipe a credit card and they go crazy they get drunk they go they go crazy they get drunk they go they go crazy they get drunk they go just hog wild go shopping and just just hog wild go shopping and just just hog wild go shopping and just everything and it just does not work out everything and it just does not work out everything and it just does not work out well at all well at all well at all they cannot handle it they cannot do it they cannot handle it they cannot do it they cannot handle it they cannot do it credit cards are no no that's you follow credit cards are no no that's you follow credit cards are no no that's you follow Dave Ramsey follow his method you cannot Dave Ramsey follow his method you cannot Dave Ramsey follow his method you cannot handle them you cannot do them other handle them you cannot do them other handle them you cannot do them other people with card savvy drink or two people with card savvy drink or two people with card savvy drink or two they're fine they know their limits they they're fine they know their limits they they're fine they know their limits they know where the boundaries are know where the boundaries are know where the boundaries are and that maybe you with credit cards you and that maybe you with credit cards you and that maybe you with credit cards you can use your credit cards and pay them can use your credit cards and pay them can use your credit cards and pay them off every single month you don't have a off every single month you don't have a off every single month you don't have a balance you just use them the same way balance you just use them the same way balance you just use them the same way you would a debit card and you're just you would a debit card and you're just you would a debit card and you're just reaping the free ward's the free miles reaping the free ward's the free miles reaping the free ward's the free miles of free cash back deals and different of free cash back deals and different of free cash back deals and different things like that so if that's you then things like that so if that's you then things like that so if that's you then you can use credit cards responsibly you can use credit cards responsibly you can use credit cards responsibly remember what I said about the Dave remember what I said about the Dave remember what I said about the Dave Ramsey's speaking to the masses if he Ramsey's speaking to the masses if he Ramsey's speaking to the masses if he tells people you can use credit cards tells people you can use credit cards tells people you can use credit cards they're gonna say well Dave Ramsey told they're gonna say well Dave Ramsey told they're gonna say well Dave Ramsey told me I can so they're gonna use it and me I can so they're gonna use it and me I can so they're gonna use it and they're gonna they make a lot of control they're gonna they make a lot of control they're gonna they make a lot of control whereas the fire committee is no payoff whereas the fire committee is no payoff whereas the fire committee is no payoff your balances each month do you don't your balances each month do you don't your balances each month do you don't want to carry a balance on it you want want to carry a balance on it you want want to carry a balance on it you want to be paying something percent to be paying something percent to be paying something percent interest on them but if you can use them interest on them but if you can use them interest on them but if you can use them responsibly have jaco out have fun and responsibly have jaco out have fun and responsibly have jaco out have fun and go use them and pay your bills pay your go use them and pay your bills pay your go use them and pay your bills pay your car insurance pay whatever it may be get car insurance pay whatever it may be get car insurance pay whatever it may be get your groceries all of that and get some your groceries all of that and get some your groceries all of that and get some more me get some free travel so these more me get some free travel so these more me get some free travel so these are very different thought processes on are very different thought processes on are very different thought processes on credit cards that's all I'm gonna say on credit cards that's all I'm gonna say on credit cards that's all I'm gonna say on credit cards all right now I'm gonna end credit cards all right now I'm gonna end credit cards all right now I'm gonna end this on baby steps Senate so many people this on baby steps Senate so many people this on baby steps Senate so many people see this very differently so the fire see this very differently so the fire see this very differently so the fire community with baby step Dave Ramsey's community with baby step Dave Ramsey's community with baby step Dave Ramsey's baby step is they say okay so you're baby step is they say okay so you're baby step is they say okay so you're leaving me high and dry build wealth and leaving me high and dry build wealth and leaving me high and dry build wealth and give what the heck does that mean give what the heck does that mean give what the heck does that mean I paid off my student loans I save % I paid off my student loans I save % I paid off my student loans I save % my kids college is good I have months my kids college is good I have months my kids college is good I have months of expenses and my house is paid off so of expenses and my house is paid off so of expenses and my house is paid off so what am i doing now I'm just building what am i doing now I'm just building what am i doing now I'm just building wealth than giving okay what the heck wealth than giving okay what the heck wealth than giving okay what the heck does that mean to me when I first heard does that mean to me when I first heard does that mean to me when I first heard that on some podcast of them I just kind that on some podcast of them I just kind that on some podcast of them I just kind of like what the heck I was like no of like what the heck I was like no of like what the heck I was like no that's inspiring heck yeah I want to get that's inspiring heck yeah I want to get that's inspiring heck yeah I want to get to that point where I can build wealth to that point where I can build wealth to that point where I can build wealth and I can give I've been to on a lot of and I can give I've been to on a lot of and I can give I've been to on a lot of mission trips at that thing that is very mission trips at that thing that is very mission trips at that thing that is very near and dear to my heart it's near and dear to my heart it's near and dear to my heart it's supporting missionaries you guys see my supporting missionaries you guys see my supporting missionaries you guys see my budget you see that we're already doing budget you see that we're already doing budget you see that we're already doing that and I want to do that I'm a big that and I want to do that I'm a big that and I want to do that I'm a big gift I love giving and I love just gift I love giving and I love just gift I love giving and I love just spending my money on other people to me spending my money on other people to me spending my money on other people to me that's inspiring and but this is a far that's inspiring and but this is a far that's inspiring and but this is a far community what else so that's where community what else so that's where community what else so that's where they're reaching financial independence they're reaching financial independence they're reaching financial independence they're able to go out and do other they're able to go out and do other they're able to go out and do other things and they just kind of are big on things and they just kind of are big on things and they just kind of are big on okay this is what you're going to do okay this is what you're going to do okay this is what you're going to do with your money when you get to this with your money when you get to this with your money when you get to this point this is how you're going to you point this is how you're going to you point this is how you're going to you know build wealth and this is how you're know build wealth and this is how you're know build wealth and this is how you're going to retire early going to retire early going to retire early Travel and house hack and get rental Travel and house hack and get rental Travel and house hack and get rental properties and build more wealth and do properties and build more wealth and do properties and build more wealth and do good things with your money so they just good things with your money so they just good things with your money so they just kind of feel like they leave each other kind of feel like they leave each other kind of feel like they leave each other high and dry and yeah so guys I don't high and dry and yeah so guys I don't high and dry and yeah so guys I don't know if this was helpful I don't this know if this was helpful I don't this know if this was helpful I don't this was a rant was a rant was a rant I hope this made sense to you of just I hope this made sense to you of just I hope this made sense to you of just kind of comparing and contrasting Dave kind of comparing and contrasting Dave kind of comparing and contrasting Dave Ramsey compared to the furqan II like I Ramsey compared to the furqan II like I Ramsey compared to the furqan II like I said in the beginning I have so much said in the beginning I have so much said in the beginning I have so much respect for both communities I think respect for both communities I think respect for both communities I think both principles are amazing and I'm kind both principles are amazing and I'm kind both principles are amazing and I'm kind of picking you know what I choose for of picking you know what I choose for of picking you know what I choose for each one personally and I think it's each one personally and I think it's each one personally and I think it's awesome so let me know down below in the awesome so let me know down below in the awesome so let me know down below in the comments what are your thoughts let's comments what are your thoughts let's comments what are your thoughts let's keep it nice and go check out JJ's keep it nice and go check out JJ's keep it nice and go check out JJ's channel remember we're trying 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a here my social media handles and blog a here my social media handles and blog a big shoutout goes to Lynn Morris Lynn big shoutout goes to Lynn Morris Lynn big shoutout goes to Lynn Morris Lynn thank you so much for watching and I'll thank you so much for watching and I'll thank you so much for watching and I'll see you guys next time see you guys next time see you guys next time [Music] WEBVTT Kind: captions Language: en today we're gonna be tackling the fire today we're gonna be tackling the fire today we're gonna be tackling the fire movement what it is and what we think movement what it is and what we think movement what it is and what we think about it hi I'm Jeff and I'm Tasha with about it hi I'm Jeff and I'm Tasha with about it hi I'm Jeff and I'm Tasha with one big happy life and we help you find one big happy life and we help you find one big happy life and we help you find balance build wealth and live happy balance build wealth and live happy balance build wealth and live happy everything that you need to create the everything that you need to create the everything that you need to create the life that you want so today we're gonna life that you want so today we're gonna life that you want so today we're gonna be talking about the fire movement and be talking about the fire movement and be talking about the fire movement and it's something that we've been talking it's something that we've been talking it's something that we've been talking to each other about talking about but to each other about talking about but to each other about talking about but what prompted this video was last week what prompted this video was last week what prompted this video was last week on Instagram I didn't ask me anything on Instagram I didn't ask me anything on Instagram I didn't ask me anything and if you're not following us on and if you're not following us on and if you're not following us on Instagram it's out one big happy life Instagram it's out one big happy life Instagram it's out one big happy life and we got a question about well what do and we got a question about well what do and we got a question about well what do you guys think about the fire movement you guys think about the fire movement you guys think about the fire movement so I said hey let's scrap whatever video so I said hey let's scrap whatever video so I said hey let's scrap whatever video we were gonna do today and do this we were gonna do today and do this we were gonna do today and do this instead cuz we've been meaning to anyway instead cuz we've been meaning to anyway instead cuz we've been meaning to anyway now before we get into it there are a now before we get into it there are a now before we get into it there are a couple of disclaimers because we feel couple of disclaimers because we feel couple of disclaimers because we feel like this video is probably gonna catch like this video is probably gonna catch like this video is probably gonna catch some pretty you know strong opinions some pretty you know strong opinions some pretty you know strong opinions it's gonna catch fire but so with any it's gonna catch fire but so with any it's gonna catch fire but so with any major personal finance topic you cannot major personal finance topic you cannot major personal finance topic you cannot cover it in a to minute video or cover it in a to minute video or cover it in a to minute video or however long this one ends up being however long this one ends up being however long this one ends up being it is still just too short because it is still just too short because it is still just too short because there's too much nuance and you know there's too much nuance and you know there's too much nuance and you know room for a lot of discussion so you know room for a lot of discussion so you know room for a lot of discussion so you know take this video knowing that we cannot take this video knowing that we cannot take this video knowing that we cannot possibly cover every question or concern possibly cover every question or concern possibly cover every question or concern or objection an information point you or objection an information point you or objection an information point you know we're just gonna try to tackle a know we're just gonna try to tackle a know we're just gonna try to tackle a good portion and then secondly also good portion and then secondly also good portion and then secondly also remember that there is no one right way remember that there is no one right way remember that there is no one right way to live a good life and that each of us to live a good life and that each of us to live a good life and that each of us can make decisions that are in alignment can make decisions that are in alignment can make decisions that are in alignment with what feels good to us without with what feels good to us without with what feels good to us without calling into question whether or not calling into question whether or not calling into question whether or not those different choices are right for those different choices are right for those different choices are right for other people so we're gonna be talking other people so we're gonna be talking other people so we're gonna be talking about some general considerations about about some general considerations about about some general considerations about the fire movement and then we're also the fire movement and then we're also the fire movement and then we're also gonna be talking about applying the fire gonna be talking about applying the fire gonna be talking about applying the fire movement specifically to us and our movement specifically to us and our movement specifically to us and our thoughts on it for our lives lives life thoughts on it for our lives lives life thoughts on it for our lives lives life together together together so disclaimer it does a long enough so disclaimer it does a long enough so disclaimer it does a long enough disclaimer let's just get into it disclaimer let's just get into it disclaimer let's just get into it okay the okay the okay the fire movement it's an acronym it stands fire movement it's an acronym it stands fire movement it's an acronym it stands for financial independence retire early for financial independence retire early for financial independence retire early so essentially what this is is somebody so essentially what this is is somebody so essentially what this is is somebody who has enough money invested to live who has enough money invested to live who has enough money invested to live off of the passive income from that nest off of the passive income from that nest off of the passive income from that nest egg for the rest of their lives without egg for the rest of their lives without egg for the rest of their lives without having to do anything else and that having to do anything else and that having to do anything else and that allows them to retire early and so there allows them to retire early and so there allows them to retire early and so there the goal is to get this nest egg as soon the goal is to get this nest egg as soon the goal is to get this nest egg as soon as you can to retire as early as as you can to retire as early as as you can to retire as early as possible and then just you know live on possible and then just you know live on possible and then just you know live on the income for a really long time so the income for a really long time so the income for a really long time so there are different veins of the fire there are different veins of the fire there are different veins of the fire movement there's straight fire right and movement there's straight fire right and movement there's straight fire right and then there's lean fire which is like then there's lean fire which is like then there's lean fire which is like even so straight fire tends to be pretty even so straight fire tends to be pretty even so straight fire tends to be pretty frugal with a very high savings rate frugal with a very high savings rate frugal with a very high savings rate because like Joseph mentioned the goal because like Joseph mentioned the goal because like Joseph mentioned the goal is to amass that nest egg typically as is to amass that nest egg typically as is to amass that nest egg typically as quickly as possible so that you can quickly as possible so that you can quickly as possible so that you can retire very very early so for some retire very very early so for some retire very very early so for some people their s their s their s people their s their s their s people their s their s their s some people might even consider it s some people might even consider it s some people might even consider it s to be fired because traditional to be fired because traditional to be fired because traditional retirement is in their s but generally retirement is in their s but generally retirement is in their s but generally you get there by having a very high you get there by having a very high you get there by having a very high savings rate and living off of a very savings rate and living off of a very savings rate and living off of a very small portion of your income and so then small portion of your income and so then small portion of your income and so then there's lean fire which typically will there's lean fire which typically will there's lean fire which typically will be fired that's like under a million so be fired that's like under a million so be fired that's like under a million so you're living even leaner than your you're living even leaner than your you're living even leaner than your typical fire person which tends to start typical fire person which tends to start typical fire person which tends to start at million though it's really at million though it's really at million though it's really percent of times your living expenses percent of times your living expenses percent of times your living expenses and then there's fat fire for the people and then there's fat fire for the people and then there's fat fire for the people who want to live more luxuriously in who want to live more luxuriously in who want to live more luxuriously in their early retirement now are we in the their early retirement now are we in the their early retirement now are we in the fire movement we are not not technically fire movement we are not not technically fire movement we are not not technically so we do how we make a we we have good so we do how we make a we we have good so we do how we make a we we have good incomes between the two of us Josef's incomes between the two of us Josef's incomes between the two of us Josef's employment income and then my employment income and then my employment income and then my self-employment income and so we've self-employment income and so we've self-employment income and so we've always kept a minimum savings rate that always kept a minimum savings rate that always kept a minimum savings rate that would put us at hitting our first would put us at hitting our first would put us at hitting our first million by the time Joseph turns I'll million by the time Joseph turns I'll million by the time Joseph turns I'll be and so that's still kind of a be and so that's still kind of a be and so that's still kind of a longer time line for fire because a lot longer time line for fire because a lot longer time line for fire because a lot of people tend to look at it at like of people tend to look at it at like of people tend to look at it at like years and for us that's going to be more years and for us that's going to be more years and for us that's going to be more like years to our first million and like years to our first million and like years to our first million and once upon a time once upon a time once upon a time we were thinking hmm maybe we would just we were thinking hmm maybe we would just we were thinking hmm maybe we would just stop at a million but we've since stop at a million but we've since stop at a million but we've since discovered that we enjoy spending more discovered that we enjoy spending more discovered that we enjoy spending more than just $, a year and there are a than just $, a year and there are a than just $, a year and there are a lot of things that we want to do in our lot of things that we want to do in our lot of things that we want to do in our lives so we're not just gonna stop at a lives so we're not just gonna stop at a lives so we're not just gonna stop at a million in fact we plan on retiring at million in fact we plan on retiring at million in fact we plan on retiring at traditional retirement age with an traditional retirement age with an traditional retirement age with an eight-figure nest egg eight-figure nest egg eight-figure nest egg yeah and that's largely because we also yeah and that's largely because we also yeah and that's largely because we also intend to keep working generally that intend to keep working generally that intend to keep working generally that it's not that we anticipated just it's not that we anticipated just it's not that we anticipated just stopping all work altogether and because stopping all work altogether and because stopping all work altogether and because we knew that we were going to keep we knew that we were going to keep we knew that we were going to keep working well it doesn't make sense to working well it doesn't make sense to working well it doesn't make sense to then you know then you know then you know aggressively save where you just have a aggressively save where you just have a aggressively save where you just have a whole bunch of extra money when you know whole bunch of extra money when you know whole bunch of extra money when you know you're still gonna be working and you you're still gonna be working and you you're still gonna be working and you have that income that you can rely on have that income that you can rely on have that income that you can rely on and so that's that's another like it and so that's that's another like it and so that's that's another like it kind of violates the whole rules that if kind of violates the whole rules that if kind of violates the whole rules that if you if you keep working and you're I'm you if you keep working and you're I'm you if you keep working and you're I'm really retired in my opinion anyway yeah really retired in my opinion anyway yeah really retired in my opinion anyway yeah and so that's probably the biggest thing and so that's probably the biggest thing and so that's probably the biggest thing that people kind of complain about when that people kind of complain about when that people kind of complain about when it comes to the fire movement is that it comes to the fire movement is that it comes to the fire movement is that the people that represent the fire the people that represent the fire the people that represent the fire movement yes they have saved enough to movement yes they have saved enough to movement yes they have saved enough to reach financial independence but they reach financial independence but they reach financial independence but they didn't actually retire because they're didn't actually retire because they're didn't actually retire because they're still running their own businesses and still running their own businesses and still running their own businesses and yes they're doing it % on their own yes they're doing it % on their own yes they're doing it % on their own terms and they could stop working if terms and they could stop working if terms and they could stop working if they want to so I think you know it's they want to so I think you know it's they want to so I think you know it's that I would consider it to be a sort of that I would consider it to be a sort of that I would consider it to be a sort of misconception as long as they have misconception as long as they have misconception as long as they have enough money that they can retire if enough money that they can retire if enough money that they can retire if they want to even if they choose not to they want to even if they choose not to they want to even if they choose not to I think you've reached fire you don't I think you've reached fire you don't I think you've reached fire you don't have to point fingers at them for that have to point fingers at them for that have to point fingers at them for that but I also wish that there was more but I also wish that there was more but I also wish that there was more conversation around the fact that they conversation around the fact that they conversation around the fact that they are still making solid money even though are still making solid money even though are still making solid money even though they've retired and they tend not to do they've retired and they tend not to do they've retired and they tend not to do that they tend all they tend to say if that they tend all they tend to say if that they tend all they tend to say if you look in the fire media they just say you look in the fire media they just say you look in the fire media they just say oh I'm doing this because it's fun and oh I'm doing this because it's fun and oh I'm doing this because it's fun and I'm like there are a lot of things that I'm like there are a lot of things that I'm like there are a lot of things that are fun you're doing this because you are fun you're doing this because you are fun you're doing this because you enjoy making money like let's just be enjoy making money like let's just be enjoy making money like let's just be honest if you just wanted to pay it honest if you just wanted to pay it honest if you just wanted to pay it forward then you'd be donating all the forward then you'd be donating all the forward then you'd be donating all the proceeds that you're making to other proceeds that you're making to other proceeds that you're making to other causes but you're not you're pocketing causes but you're not you're pocketing causes but you're not you're pocketing some or all of that money so I think some or all of that money so I think some or all of that money so I think there could be there could stand to be there could be there could stand to be there could be there could stand to be more transparency within the fire more transparency within the fire more transparency within the fire community and I've seen several people community and I've seen several people community and I've seen several people actually say like let's have a actually say like let's have a actually say like let's have a transparent transparent transparent Paige in the fire community every person Paige in the fire community every person Paige in the fire community every person who is about fire should have that so who is about fire should have that so who is about fire should have that so that people understand what's really that people understand what's really that people understand what's really going on behind the scenes with them and going on behind the scenes with them and going on behind the scenes with them and in their business and how they're making in their business and how they're making in their business and how they're making money yeah I mean we've been really open money yeah I mean we've been really open money yeah I mean we've been really open with kind of how our business has has with kind of how our business has has with kind of how our business has has been going and we think that that I mean been going and we think that that I mean been going and we think that that I mean that's just really important as like a that's just really important as like a that's just really important as like a cultural aspect of the more information cultural aspect of the more information cultural aspect of the more information you have the better decisions that you you have the better decisions that you you have the better decisions that you can make and you don't need to be can make and you don't need to be can make and you don't need to be secretive about finances so like I I'm secretive about finances so like I I'm secretive about finances so like I I'm really on board with that to you so in really on board with that to you so in really on board with that to you so in terms of how we feel about the fire terms of how we feel about the fire terms of how we feel about the fire movement so I you know we may have with movement so I you know we may have with movement so I you know we may have with different people so we have different different people so we have different different people so we have different opinions so we'll each talk about how we opinions so we'll each talk about how we opinions so we'll each talk about how we feel about it and so I'll just start by feel about it and so I'll just start by feel about it and so I'll just start by saying that I think that it can be great saying that I think that it can be great saying that I think that it can be great right it just depends on what works for right it just depends on what works for right it just depends on what works for you in your own life and each person you in your own life and each person you in your own life and each person needs to be free to decide that and so needs to be free to decide that and so needs to be free to decide that and so to that end though the thing that I do to that end though the thing that I do to that end though the thing that I do not like about the fire movement is that not like about the fire movement is that not like about the fire movement is that when you read a lot of the literature when you read a lot of the literature when you read a lot of the literature especially if you look at some of the especially if you look at some of the especially if you look at some of the biggest players out there for example biggest players out there for example biggest players out there for example like mister money mustache you'll see like mister money mustache you'll see like mister money mustache you'll see that the way that he talks about people that the way that he talks about people that the way that he talks about people who choose differently is very who choose differently is very who choose differently is very judgmental it's very shame based it's judgmental it's very shame based it's judgmental it's very shame based it's very other ring and I don't think that very other ring and I don't think that very other ring and I don't think that it's necessary for you to try to make it's necessary for you to try to make it's necessary for you to try to make the other group seem bad or those other the other group seem bad or those other the other group seem bad or those other decisions as less desirable in order to decisions as less desirable in order to decisions as less desirable in order to say that what you are doing is good yeah say that what you are doing is good yeah say that what you are doing is good yeah so my first my first point about it was so my first my first point about it was so my first my first point about it was that it is definitely not for everybody that it is definitely not for everybody that it is definitely not for everybody and so while there are the people that and so while there are the people that and so while there are the people that that are promoting the fire movement that are promoting the fire movement that are promoting the fire movement that are kind of almost looking down on that are kind of almost looking down on that are kind of almost looking down on people who want to just go ahead and people who want to just go ahead and people who want to just go ahead and keep working and have have careers I keep working and have have careers I keep working and have have careers I mean I think you know personal finance mean I think you know personal finance mean I think you know personal finance is about taking the values and goals is about taking the values and goals is about taking the values and goals that you have for your life and then that you have for your life and then that you have for your life and then you're designing your finances around it you're designing your finances around it you're designing your finances around it and you know if you want to retire early and you know if you want to retire early and you know if you want to retire early then excellent the fire movement might then excellent the fire movement might then excellent the fire movement might be exactly what you need to be doing and be exactly what you need to be doing and be exactly what you need to be doing and want to be doing to be able to get to want to be doing to be able to get to want to be doing to be able to get to that but a lot of people it's not that that but a lot of people it's not that that but a lot of people it's not that they want to they want to they want to not work it's that they don't want to not work it's that they don't want to not work it's that they don't want to work and what they're currently doing work and what they're currently doing work and what they're currently doing and so the disconnect is from what and so the disconnect is from what and so the disconnect is from what they're actively doing in their current they're actively doing in their current they're actively doing in their current career to what they ultimately wish they career to what they ultimately wish they career to what they ultimately wish they were doing and that's just changing jobs were doing and that's just changing jobs were doing and that's just changing jobs that's not retiring early that's that's not retiring early that's that's not retiring early that's figuring out what drives you and then figuring out what drives you and then figuring out what drives you and then going and doing that in a way that you going and doing that in a way that you going and doing that in a way that you can then sustain your life in your life can then sustain your life in your life can then sustain your life in your life goals yeah it's it's really problematic goals yeah it's it's really problematic goals yeah it's it's really problematic that it's like people hate their jobs so that it's like people hate their jobs so that it's like people hate their jobs so ritai equals retire early but really ritai equals retire early but really ritai equals retire early but really people hate their jobs could also equal people hate their jobs could also equal people hate their jobs could also equal find a job that you're passionate about find a job that you're passionate about find a job that you're passionate about that pays you what you're worth that you that pays you what you're worth that you that pays you what you're worth that you enjoy doing that makes you feel really enjoy doing that makes you feel really enjoy doing that makes you feel really fulfilled and strangely enough when we fulfilled and strangely enough when we fulfilled and strangely enough when we were doing IVF and I were still doing were doing IVF and I were still doing were doing IVF and I were still doing IVF we're gonna do an update video about IVF we're gonna do an update video about IVF we're gonna do an update video about that I guess tomorrow but when I went to that I guess tomorrow but when I went to that I guess tomorrow but when I went to get do my first retrieval I was really get do my first retrieval I was really get do my first retrieval I was really scared because it was the first time scared because it was the first time scared because it was the first time that I had ever gone under and you know that I had ever gone under and you know that I had ever gone under and you know I was in a lot of pain by that point and I was in a lot of pain by that point and I was in a lot of pain by that point and I just remember and I talked about this I just remember and I talked about this I just remember and I talked about this in our video I just remember and I'm in our video I just remember and I'm in our video I just remember and I'm getting a little emotional about it getting a little emotional about it getting a little emotional about it just feeling it was so grateful that just feeling it was so grateful that just feeling it was so grateful that there were those people who loved at there were those people who loved at there were those people who loved at least seemed to thoroughly enjoy the least seemed to thoroughly enjoy the least seemed to thoroughly enjoy the work that they were doing and IVF is work that they were doing and IVF is work that they were doing and IVF is expensive and I felt like it was so expensive and I felt like it was so expensive and I felt like it was so worth it to compensate those people in a worth it to compensate those people in a worth it to compensate those people in a way that they deserved to be compensated way that they deserved to be compensated way that they deserved to be compensated because they were there supporting me at because they were there supporting me at because they were there supporting me at a very difficult moment and so you know a very difficult moment and so you know a very difficult moment and so you know I just don't like vilifying the I just don't like vilifying the I just don't like vilifying the nine-to-five because there are people nine-to-five because there are people nine-to-five because there are people out there doing amazing work and to try out there doing amazing work and to try out there doing amazing work and to try to say that there's something less than to say that there's something less than to say that there's something less than about doing work that you love is about doing work that you love is about doing work that you love is problematic mmm okay awkward now yeah problematic mmm okay awkward now yeah problematic mmm okay awkward now yeah and so I mean I I completely agree and so I mean I I completely agree and so I mean I I completely agree because you know the the nine to fivers because you know the the nine to fivers because you know the the nine to fivers you know scientists pre nine to fiver you know scientists pre nine to fiver you know scientists pre nine to fiver right here yeah but I mean but tons of right here yeah but I mean but tons of right here yeah but I mean but tons of work tons of valuable valuable work is work tons of valuable valuable work is work tons of valuable valuable work is done in a traditional setting done in a traditional setting done in a traditional setting and that kind of I mean that brings up and that kind of I mean that brings up and that kind of I mean that brings up one of my other issues with it generally one of my other issues with it generally one of my other issues with it generally it's that somebody has to be doing this it's that somebody has to be doing this it's that somebody has to be doing this work and so to say that that it's work and so to say that that it's work and so to say that that it's terrible if you're working it's like terrible if you're working it's like terrible if you're working it's like well somebody has to work but the one well somebody has to work but the one well somebody has to work but the one thing that does excite me so to turn thing that does excite me so to turn thing that does excite me so to turn this around because I think we went like this around because I think we went like this around because I think we went like far to one side and we're definitely not far to one side and we're definitely not far to one side and we're definitely not far to one side we're definitely very far to one side we're definitely very far to one side we're definitely very balanced as we kind of are in just about balanced as we kind of are in just about balanced as we kind of are in just about everything I love that there are people everything I love that there are people everything I love that there are people that can say okay this is the this I that can say okay this is the this I that can say okay this is the this I just want this much money and I'm good just want this much money and I'm good just want this much money and I'm good and then I'm gonna leave the workforce and then I'm gonna leave the workforce and then I'm gonna leave the workforce right because the reality is that you right because the reality is that you right because the reality is that you know the fewer workers there are the know the fewer workers there are the know the fewer workers there are the more and the employers still need more and the employers still need more and the employers still need workers the higher wages get so I'm workers the higher wages get so I'm workers the higher wages get so I'm that's a really great positive aspect of that's a really great positive aspect of that's a really great positive aspect of fire you know to kind of reduce the work fire you know to kind of reduce the work fire you know to kind of reduce the work force and increase wages for the people force and increase wages for the people force and increase wages for the people who are left behind which maybe will who are left behind which maybe will who are left behind which maybe will then help the rest of us also enjoy our then help the rest of us also enjoy our then help the rest of us also enjoy our jobs more because the compensations jobs more because the compensations jobs more because the compensations going up so that is very true as people going up so that is very true as people going up so that is very true as people do leave their work the workforce as do leave their work the workforce as do leave their work the workforce as long as they're actually leaving the long as they're actually leaving the long as they're actually leaving the workforce then and that's true then that workforce then and that's true then that workforce then and that's true then that is one of the one of the benefits now so is one of the one of the benefits now so is one of the one of the benefits now so I'm gonna flip it a little bit I'm gonna flip it a little bit I'm gonna flip it a little bit differently so as everybody is saving differently so as everybody is saving differently so as everybody is saving and investing the returns that we're and investing the returns that we're and investing the returns that we're getting on in the market are really getting on in the market are really getting on in the market are really dependent on you know how how the stock dependent on you know how how the stock dependent on you know how how the stock market increases or decreases in price market increases or decreases in price market increases or decreases in price or whatever value the work that all or whatever value the work that all or whatever value the work that all these companies are doing in aggregate these companies are doing in aggregate these companies are doing in aggregate how that value fluctuates you know how that value fluctuates you know how that value fluctuates you know affects our returns and as we invest affects our returns and as we invest affects our returns and as we invest more money than we also bid up the price more money than we also bid up the price more money than we also bid up the price of all those stocks and so they're going of all those stocks and so they're going of all those stocks and so they're going to keep continue to produce as much as to keep continue to produce as much as to keep continue to produce as much as as they can as fast as they can and get as they can as fast as they can and get as they can as fast as they can and get the most profits regardless of their the most profits regardless of their the most profits regardless of their stock price but as we bid it up that stock price but as we bid it up that stock price but as we bid it up that means that the returns that we're means that the returns that we're means that the returns that we're getting are actually going to be lower getting are actually going to be lower getting are actually going to be lower over time and so the more people that over time and so the more people that over time and so the more people that save faster and faster it's good save faster and faster it's good save faster and faster it's good individually but then an aggregate our individually but then an aggregate our individually but then an aggregate our overall returns actually might go down overall returns actually might go down overall returns actually might go down and then that means you have to save it and then that means you have to save it and then that means you have to save it even more money to reach those nest egg even more money to reach those nest egg even more money to reach those nest egg goals goals goals and then to add on to that when people and then to add on to that when people and then to add on to that when people don't buy things our economy doesn't do don't buy things our economy doesn't do don't buy things our economy doesn't do as well so that's the other thing to as well so that's the other thing to as well so that's the other thing to consider so the fire people actually do consider so the fire people actually do consider so the fire people actually do they depend on people like us who are they depend on people like us who are they depend on people like us who are consumers who actually make a conscious consumers who actually make a conscious consumers who actually make a conscious choice not to exit the market but to choice not to exit the market but to choice not to exit the market but to save and also to consume so it's save and also to consume so it's save and also to consume so it's actually a great synergy between the actually a great synergy between the actually a great synergy between the fire people need us and why don't and we fire people need us and why don't and we fire people need us and why don't and we need them to exit the market so we can need them to exit the market so we can need them to exit the market so we can all make more money - so I think there's all make more money - so I think there's all make more money - so I think there's a great synergy there but in terms of a great synergy there but in terms of a great synergy there but in terms of just to wrap this all up why we just to wrap this all up why we just to wrap this all up why we specifically chose not to fire because specifically chose not to fire because specifically chose not to fire because we did think about it and at one point we did think about it and at one point we did think about it and at one point we were going to do it and we just we were going to do it and we just we were going to do it and we just decided we actually liked spending more decided we actually liked spending more decided we actually liked spending more money we liked having nice things we money we liked having nice things we money we liked having nice things we liked the impact of like that our goals liked the impact of like that our goals liked the impact of like that our goals will allow us to have in the world will allow us to have in the world will allow us to have in the world because our goal is to grow our business because our goal is to grow our business because our goal is to grow our business - not just multiple seven but multiple - not just multiple seven but multiple - not just multiple seven but multiple eight-figure to a multiple eight figure eight-figure to a multiple eight figure eight-figure to a multiple eight figure business so that we can employ people business so that we can employ people business so that we can employ people who are making amazing salaries with who are making amazing salaries with who are making amazing salaries with amazing benefits that we can spread this amazing benefits that we can spread this amazing benefits that we can spread this our positive and happy message and that our positive and happy message and that our positive and happy message and that we can do philanthropic philanthropic we can do philanthropic philanthropic we can do philanthropic philanthropic works both here in the United States and works both here in the United States and works both here in the United States and around the world like we want to have a around the world like we want to have a around the world like we want to have a big impact and the way that you have a big impact and the way that you have a big impact and the way that you have a big impact is frankly with a lot of big impact is frankly with a lot of big impact is frankly with a lot of money yeah I mean I just had one more money yeah I mean I just had one more money yeah I mean I just had one more thing that I would love to see a big thing that I would love to see a big thing that I would love to see a big movement not so much with the Ritz fire movement not so much with the Ritz fire movement not so much with the Ritz fire being retire early but kind of you know being retire early but kind of you know being retire early but kind of you know financially independence and I couldn't financially independence and I couldn't financially independence and I couldn't think of a really good acronym on the think of a really good acronym on the think of a really good acronym on the spot but something about creating a spot but something about creating a spot but something about creating a business or creating jobs so you become business or creating jobs so you become business or creating jobs so you become financially independent and then kind of financially independent and then kind of financially independent and then kind of pay it forward by creating jobs or pay it forward by creating jobs or pay it forward by creating jobs or creating whatever it is you felt was creating whatever it is you felt was creating whatever it is you felt was missing in the world or the workplace missing in the world or the workplace missing in the world or the workplace which is why you wanted to leave it and which is why you wanted to leave it and which is why you wanted to leave it and instead of just leaving it creating it instead of just leaving it creating it instead of just leaving it creating it because now you're financially because now you're financially because now you're financially independent you can do that and so I'd independent you can do that and so I'd independent you can do that and so I'd really like to see that kind of a really like to see that kind of a really like to see that kind of a movement going on yeah and that's movement going on yeah and that's movement going on yeah and that's actually a really good point about the actually a really good point about the actually a really good point about the financial independence part we are all financial independence part we are all financial independence part we are all about financial independence but what we about financial independence but what we about financial independence but what we would like to see you do is would like to see you do is would like to see you do is create a balanced and happy life along create a balanced and happy life along create a balanced and happy life along the way to achieving financial the way to achieving financial the way to achieving financial independence you do not have to wait to independence you do not have to wait to independence you do not have to wait to be happy to live your life to feel full be happy to live your life to feel full be happy to live your life to feel full and empowered and like loving every day and empowered and like loving every day and empowered and like loving every day you don't have to wait for financial you don't have to wait for financial you don't have to wait for financial independence for that to happen you independence for that to happen you independence for that to happen you don't have to wait for debt freedom for don't have to wait for debt freedom for don't have to wait for debt freedom for that to happen you can choose to live that to happen you can choose to live that to happen you can choose to live your life in alignment right now it just your life in alignment right now it just your life in alignment right now it just means you have to make different choices means you have to make different choices means you have to make different choices about the things that you don't like about the things that you don't like about the things that you don't like like leaving your job like moving to a like leaving your job like moving to a like leaving your job like moving to a different city or a different country different city or a different country different city or a different country all that okay so that will wrap it up all that okay so that will wrap it up all that okay so that will wrap it up and we'll just see how many comments or and we'll just see how many comments or and we'll just see how many comments or questions you have about the fire questions you have about the fire questions you have about the fire movement what you think about it are you movement what you think about it are you movement what you think about it are you in it and we imagine that we will have in it and we imagine that we will have in it and we imagine that we will have to redress some of the some of this in to redress some of the some of this in to redress some of the some of this in the future video which we are more than the future video which we are more than the future video which we are more than happy to do because anytime anyone has happy to do because anytime anyone has happy to do because anytime anyone has made videos or interviews recently about made videos or interviews recently about made videos or interviews recently about this topic it's been a you know a a this topic it's been a you know a a this topic it's been a you know a a conversation starter it's a firestorm conversation starter it's a firestorm conversation starter it's a firestorm alright guys we'll see you in the next alright guys we'll see you in the next alright guys we'll see you in the next video bye video bye video bye [Music] you WEBVTT Kind: captions Language: en it's brian preston the money guy it's brian preston the money guy it's brian preston the money guy i think what we're seeing here though i think what we're seeing here though i think what we're seeing here though and this is what we would try to explain and this is what we would try to explain and this is what we would try to explain to john and jane hey based on where you to john and jane hey based on where you to john and jane hey based on where you guys are guys are guys are wanting to be parts of the fire movement wanting to be parts of the fire movement wanting to be parts of the fire movement i don't know that the s is going to be i don't know that the s is going to be i don't know that the s is going to be your key your key your key i don't know that being able to live the i don't know that being able to live the i don't know that being able to live the way you want way you want way you want when you want how you want is going to when you want how you want is going to when you want how you want is going to be something that's attainable be something that's attainable be something that's attainable before years of age that's very before years of age that's very before years of age that's very similar to what sam similar to what sam similar to what sam financial samurai found out as well financial samurai found out as well financial samurai found out as well doing firing your s is going to be doing firing your s is going to be doing firing your s is going to be tough tough tough unless you've really invented something unless you've really invented something unless you've really invented something i'm talking about coding i'm talking about coding i'm talking about coding or literally made something up you came or literally made something up you came or literally made something up you came up with the up with the up with the the sponge that sold on shark tank and the sponge that sold on shark tank and the sponge that sold on shark tank and it set you up for life it set you up for life it set you up for life yeah i think so as we were kind of going yeah i think so as we were kind of going yeah i think so as we were kind of going through this okay what are some through this okay what are some through this okay what are some some tangible takeaways from this some tangible takeaways from this some tangible takeaways from this illustration what are the things illustration what are the things illustration what are the things that we want our folks to know that we that we want our folks to know that we that we want our folks to know that we want our folks to recognize want our folks to recognize want our folks to recognize is that fire is possible but you have to is that fire is possible but you have to is that fire is possible but you have to be be be realistic about that now what we did realistic about that now what we did realistic about that now what we did here was very very simplified when we here was very very simplified when we here was very very simplified when we actually do this with clients actually do this with clients actually do this with clients we don't just say okay well what are we don't just say okay well what are we don't just say okay well what are your living expenses we ask questions your living expenses we ask questions your living expenses we ask questions like okay well how often are you going like okay well how often are you going like okay well how often are you going to replace your cars how are you going to replace your cars how are you going to replace your cars how are you going to pay for health insurance to pay for health insurance to pay for health insurance what's your travel budget going to look what's your travel budget going to look what's your travel budget going to look like what are the weddings or colleges like what are the weddings or colleges like what are the weddings or colleges or other things you have to fund or other things you have to fund or other things you have to fund this was a very very simple illustration this was a very very simple illustration this was a very very simple illustration but what it but what it but what it showed me is that unrealistic showed me is that unrealistic showed me is that unrealistic expectations expectations expectations lead to not very high probability lead to not very high probability lead to not very high probability success success success outcomes well i think it's it's it's outcomes well i think it's it's it's outcomes well i think it's it's it's back to my measure twice cut once back to my measure twice cut once back to my measure twice cut once because because because think about if you could customize this think about if you could customize this think about if you could customize this where maybe you work years where maybe you work years where maybe you work years and then the other option is is what and then the other option is is what and then the other option is is what happens if happens if happens if you change what happens at age maybe you change what happens at age maybe you change what happens at age maybe yes you're still planning on limited yes you're still planning on limited yes you're still planning on limited mean but your living expenses go down mean but your living expenses go down mean but your living expenses go down significantly at . that's what i love significantly at . that's what i love significantly at . that's what i love about doing about doing about doing these type of stress test analysis these type of stress test analysis these type of stress test analysis especially when you can customize it especially when you can customize it especially when you can customize it because it lets you put in every because it lets you put in every because it lets you put in every scenario and nothing lights up a scenario and nothing lights up a scenario and nothing lights up a client's eyes bigger client's eyes bigger client's eyes bigger when we can build something completely when we can build something completely when we can build something completely custom and let them custom and let them custom and let them walk through what their life is going to walk through what their life is going to walk through what their life is going to look like i did have a few more look like i did have a few more look like i did have a few more takeaways okay go ahead takeaways okay go ahead takeaways okay go ahead fire is more of a to dream and i fire is more of a to dream and i fire is more of a to dream and i think that like i said think that like i said think that like i said i i think that financial samurai sam i i think that financial samurai sam i i think that financial samurai sam kind of alluded to that kind of alluded to that kind of alluded to that he realizes that because you need a lot he realizes that because you need a lot he realizes that because you need a lot you need a few more things it's kind of you need a few more things it's kind of you need a few more things it's kind of like like like putting a post in concrete you know if putting a post in concrete you know if putting a post in concrete you know if you if you if you try to you if you if you try to you if you if you try to to put weight or pressure on that fence to put weight or pressure on that fence to put weight or pressure on that fence that post before the concrete is set that post before the concrete is set that post before the concrete is set it's it's going to fail and that's the it's it's going to fail and that's the it's it's going to fail and that's the way so if you do this think about a way so if you do this think about a way so if you do this think about a year old year old year old they're trying to accelerate they're they're trying to accelerate they're they're trying to accelerate they're trying to do it too early and then they trying to do it too early and then they trying to do it too early and then they find out it's just find out it's just find out it's just it's not they didn't give enough time it's not they didn't give enough time it's not they didn't give enough time for their life to set the concrete of for their life to set the concrete of for their life to set the concrete of life and i'm talking about the kids life and i'm talking about the kids life and i'm talking about the kids i'm talking about the career i'm talking i'm talking about the career i'm talking i'm talking about the career i'm talking about the houses about the houses about the houses i'm talking about just making sure you i'm talking about just making sure you i'm talking about just making sure you know a lot of the variables there's know a lot of the variables there's know a lot of the variables there's still a lot of life that you're is going still a lot of life that you're is going still a lot of life that you're is going to be uncertain you're not going to be to be uncertain you're not going to be to be uncertain you're not going to be able to plan for able to plan for able to plan for but at least your life will be set in a but at least your life will be set in a but at least your life will be set in a lot of the different ways lot of the different ways lot of the different ways the second thing i found out is you the second thing i found out is you the second thing i found out is you better like your day job better like your day job better like your day job um you know and it actually will make it um you know and it actually will make it um you know and it actually will make it easier you know if you know you have to easier you know if you know you have to easier you know if you know you have to work to be work to be work to be or you have to work to or even or you have to work to or even or you have to work to or even because remember a year old who because remember a year old who because remember a year old who retires early retires early retires early you're still part of the fire movement you're still part of the fire movement you're still part of the fire movement you're still leaving early you're still leaving early you're still leaving early but you need to have work that gives you but you need to have work that gives you but you need to have work that gives you purpose so that you don't feel like purpose so that you don't feel like purpose so that you don't feel like you're just stuck you're just stuck you're just stuck just droning on every day in a job you just droning on every day in a job you just droning on every day in a job you don't like i don't don't like i don't don't like i don't spend a lot of time in the fire forums spend a lot of time in the fire forums spend a lot of time in the fire forums but i feel like that's one that gets but i feel like that's one that gets but i feel like that's one that gets missed a lot missed a lot missed a lot because i'll see these young folks who because i'll see these young folks who because i'll see these young folks who say you know what i'm going to go out to say you know what i'm going to go out to say you know what i'm going to go out to the west coast i'm going to go out to the west coast i'm going to go out to the west coast i'm going to go out to the northeast and i'm going to work the northeast and i'm going to work the northeast and i'm going to work hours a week and i'm going to make hours a week and i'm going to make hours a week and i'm going to make but man i'm gonna hate my life but man i'm gonna hate my life but man i'm gonna hate my life for the first or years for the first or years for the first or years you really ought to measure is it worth you really ought to measure is it worth you really ought to measure is it worth it or would you rather do something you it or would you rather do something you it or would you rather do something you enjoy enjoy enjoy more perhaps make less plan on working more perhaps make less plan on working more perhaps make less plan on working longer but have a better quality of life longer but have a better quality of life longer but have a better quality of life don't you feel like you see a lot of don't you feel like you see a lot of don't you feel like you see a lot of folks who do that well folks who do that well folks who do that well i've often told you because the i've often told you because the i've often told you because the financial industry is very similar in financial industry is very similar in financial industry is very similar in the fact that you can be the fact that you can be the fact that you can be a rock star or you can be a builder and a rock star or you can be a builder and a rock star or you can be a builder and what i mean by that is what i mean by that is what i mean by that is is that a lot of people in our industry is that a lot of people in our industry is that a lot of people in our industry come in and they you can make a come in and they you can make a come in and they you can make a gazillion dollars if you're willing to gazillion dollars if you're willing to gazillion dollars if you're willing to go go go sell sure and you know and go out there sell sure and you know and go out there sell sure and you know and go out there and knock on doors and and knock on doors and and knock on doors and and it's not always the best way i don't and it's not always the best way i don't and it's not always the best way i don't think it's healthy whereas we're kind of think it's healthy whereas we're kind of think it's healthy whereas we're kind of the slow we're the bridge builders where the slow we're the bridge builders where the slow we're the bridge builders where we build relationships over time and i we build relationships over time and i we build relationships over time and i think that's what you're alluding to is think that's what you're alluding to is think that's what you're alluding to is that that that yes you can go out there and work in a yes you can go out there and work in a yes you can go out there and work in a high-paying job you can code high-paying job you can code high-paying job you can code you can go do other things and work you can go do other things and work you can go do other things and work hours a week hours a week hours a week but you can only do that so long or take but you can only do that so long or take but you can only do that so long or take that's the west coast that's the west coast that's the west coast if you want to go east coast you could if you want to go east coast you could if you want to go east coast you could go work as a trader an analyst or go work as a trader an analyst or go work as a trader an analyst or somebody who's still going to work somebody who's still going to work somebody who's still going to work hours a week make great money hours a week make great money hours a week make great money but you're only going to be able to do but you're only going to be able to do but you're only going to be able to do that for so long whereas maybe that for so long whereas maybe that for so long whereas maybe like go like we're financial planners like go like we're financial planners like go like we're financial planners you don't make great money to start off you don't make great money to start off you don't make great money to start off but if you can start building that but if you can start building that but if you can start building that bridge before you know it bridge before you know it bridge before you know it you have the potential and this is you have the potential and this is you have the potential and this is actually a great segue into my next actually a great segue into my next actually a great segue into my next point point point the bigger your shovel the better now the bigger your shovel the better now the bigger your shovel the better now that look it's easy to get a big shovel that look it's easy to get a big shovel that look it's easy to get a big shovel meaning a big income going and doing meaning a big income going and doing meaning a big income going and doing some of these some of these some of these glamorous jobs with technology with you glamorous jobs with technology with you glamorous jobs with technology with you know know know biotech trading you know in wall street biotech trading you know in wall street biotech trading you know in wall street but man if you can't stick to it long but man if you can't stick to it long but man if you can't stick to it long enough to build it you know enough to build it you know enough to build it you know where your purpose is or build up the where your purpose is or build up the where your purpose is or build up the nest egg you might find that you're just nest egg you might find that you're just nest egg you might find that you're just miserable and you you put yourself in an miserable and you you put yourself in an miserable and you you put yourself in an unhealthy position unhealthy position unhealthy position where it's just it doesn't work out yeah where it's just it doesn't work out yeah where it's just it doesn't work out yeah a big shovel helps a ton when it comes a big shovel helps a ton when it comes a big shovel helps a ton when it comes to retiring early to retiring early to retiring early but you better be able to hold that but you better be able to hold that but you better be able to hold that shovel up and if it's so big that you shovel up and if it's so big that you shovel up and if it's so big that you can't stand the weight of it meaning the can't stand the weight of it meaning the can't stand the weight of it meaning the stress of whatever that thing is you're stress of whatever that thing is you're stress of whatever that thing is you're doing doing doing you might not be setting yourself up for you might not be setting yourself up for you might not be setting yourself up for a very enjoyable back half of your a very enjoyable back half of your a very enjoyable back half of your journey journey journey i didn't ask you to put it up and we're i didn't ask you to put it up and we're i didn't ask you to put it up and we're kind of past the point of pulling it up kind of past the point of pulling it up kind of past the point of pulling it up on the screen but i noticed i couldn't on the screen but i noticed i couldn't on the screen but i noticed i couldn't help but notice when you just showed the help but notice when you just showed the help but notice when you just showed the straight line straight line straight line of just six percent a year growth you of just six percent a year growth you of just six percent a year growth you know we know that's not the way life know we know that's not the way life know we know that's not the way life works but it was amazing just the the works but it was amazing just the the works but it was amazing just the the the sheer the sheer the sheer power of compounding interest absolutely power of compounding interest absolutely power of compounding interest absolutely is that is that is that that six percent by the time you get that six percent by the time you get that six percent by the time you get into years s into years s into years s you know it's huge what that six you know it's huge what that six you know it's huge what that six percent is per year meaning that percent is per year meaning that percent is per year meaning that if you leave early there's a huge if you leave early there's a huge if you leave early there's a huge opportunity cost opportunity cost opportunity cost so don't underestimate the power of time so don't underestimate the power of time so don't underestimate the power of time because that's the thing i think a lot because that's the thing i think a lot because that's the thing i think a lot of people of people of people it's all back to if you leave the it's all back to if you leave the it's all back to if you leave the workforce at workforce at workforce at you're taking out at least you're taking out at least you're taking out at least if not you know years that your if not you know years that your if not you know years that your money cannot only with money cannot only with money cannot only with what you're earning and saving and what you're earning and saving and what you're earning and saving and putting to work in the markets putting to work in the markets putting to work in the markets is building those army of dollar bills is building those army of dollar bills is building those army of dollar bills but also what you've already saved and but also what you've already saved and but also what you've already saved and invested invested invested is building in the background don't is building in the background don't is building in the background don't underestimate the power underestimate the power underestimate the power of letting your money work for you the of letting your money work for you the of letting your money work for you the reason that times over works and the reason that times over works and the reason that times over works and the reason we give away the koozies reason we give away the koozies reason we give away the koozies is because it's the time that allows is because it's the time that allows is because it's the time that allows that to happen it's the years that to happen it's the years that to happen it's the years that makes the happen not the dollars that makes the happen not the dollars that makes the happen not the dollars and so you have to keep that in mind and so you have to keep that in mind and so you have to keep that in mind when it comes to building towards when it comes to building towards when it comes to building towards financial independence so bo we're kind financial independence so bo we're kind financial independence so bo we're kind of closing out of closing out of closing out i'll be curious to see how far absorbs i'll be curious to see how far absorbs i'll be curious to see how far absorbs this show because this show because this show because this was one of those because i love the this was one of those because i love the this was one of those because i love the coaching the motivation and i love coaching the motivation and i love coaching the motivation and i love getting people excited and yes there was getting people excited and yes there was getting people excited and yes there was a little bit of that here a little bit of that here a little bit of that here but this one got into the weeds sure i but this one got into the weeds sure i but this one got into the weeds sure i mean this is this is kind of an mean this is this is kind of an mean this is this is kind of an experiment on our part is that we wanted experiment on our part is that we wanted experiment on our part is that we wanted to flex the power of some of the to flex the power of some of the to flex the power of some of the planning software planning software planning software but also give you guys who are but also give you guys who are but also give you guys who are considering your if you're part of this considering your if you're part of this considering your if you're part of this movement movement movement give you a taste of the analytics that give you a taste of the analytics that give you a taste of the analytics that go into what we're doing also go into what we're doing also go into what we're doing also because i really hope that you guys can because i really hope that you guys can because i really hope that you guys can absorb or you appreciate absorb or you appreciate absorb or you appreciate we try to give you some some we try to give you some some we try to give you some some illustrations here that you can illustrations here that you can illustrations here that you can internalize this and compare and internalize this and compare and internalize this and compare and contrast to what you're doing in your contrast to what you're doing in your contrast to what you're doing in your own own own you know retiring early journey if you you know retiring early journey if you you know retiring early journey if you saw this you're like man that's really saw this you're like man that's really saw this you're like man that's really interesting i interesting i interesting i i wish i knew more about that i'd like i wish i knew more about that i'd like i wish i knew more about that i'd like to think about the planning or i've been to think about the planning or i've been to think about the planning or i've been on this financial independence retire on this financial independence retire on this financial independence retire early journey and i'm i'm getting early journey and i'm i'm getting early journey and i'm i'm getting close and i want someone to help me spot close and i want someone to help me spot close and i want someone to help me spot check that i want to check that i want to check that i want to make sure that i'm doing all the things make sure that i'm doing all the things make sure that i'm doing all the things i'm supposed to be doing feel free to i'm supposed to be doing feel free to i'm supposed to be doing feel free to reach out to us that's the idea of the reach out to us that's the idea of the reach out to us that's the idea of the abundant cycle we want to abundant cycle we want to abundant cycle we want to load you guys up so that you can grow load you guys up so that you can grow load you guys up so that you can grow and grow and grow when it does become and grow and grow when it does become and grow and grow when it does become time time time for you to take it to the next level for you to take it to the next level for you to take it to the next level you'll remember the team that kind of you'll remember the team that kind of you'll remember the team that kind of helped you plant those seeds so if you helped you plant those seeds so if you helped you plant those seeds so if you haven't had a chance haven't had a chance haven't had a chance go to aboundwealth.com you can check out go to aboundwealth.com you can check out go to aboundwealth.com you can check out all of our advisory personnel here all of our advisory personnel here all of our advisory personnel here go to moneyguide.com you can see all of go to moneyguide.com you can see all of go to moneyguide.com you can see all of our free resources available out there our free resources available out there our free resources available out there for you guys to help you grow for you guys to help you grow for you guys to help you grow we want to make sure that whatever your we want to make sure that whatever your we want to make sure that whatever your financial dreams are financial dreams are financial dreams are we can help you get there guys that's we can help you get there guys that's we can help you get there guys that's the abundance cycle he just described by the abundance cycle he just described by the abundance cycle he just described by the way you come learn apply the way you come learn apply the way you come learn apply grow start off just absorb all the free grow start off just absorb all the free grow start off just absorb all the free advice we give but when you reach a advice we give but when you reach a advice we give but when you reach a level of success level of success level of success and complication we'll be here waiting and complication we'll be here waiting and complication we'll be here waiting for you absolutely the only thing i also for you absolutely the only thing i also for you absolutely the only thing i also would ask would ask would ask you see this ticker we are so close to a you see this ticker we are so close to a you see this ticker we are so close to a hundred thousand please hundred thousand please hundred thousand please go subscribe go tell some friends family go subscribe go tell some friends family go subscribe go tell some friends family we have a goal of a hundred thousand by we have a goal of a hundred thousand by we have a goal of a hundred thousand by a year and that's not gonna happen a year and that's not gonna happen a year and that's not gonna happen automatically we need your help automatically we need your help automatically we need your help so go subscribe on youtube so we can so go subscribe on youtube so we can so go subscribe on youtube so we can reach a hundred thousand reach a hundred thousand reach a hundred thousand continue to grow this incredible thing continue to grow this incredible thing continue to grow this incredible thing that we've been blessed to have that we've been blessed to have that we've been blessed to have started in so thank you thank you started in so thank you thank you started in so thank you thank you appreciate you going on this journey appreciate you going on this journey appreciate you going on this journey with us with us with us i'm your host brian preston mr bohansen i'm your host brian preston mr bohansen i'm your host brian preston mr bohansen money guy team out WEBVTT Kind: captions Language: en it's Brian Preston the money guy I can it's Brian Preston the money guy I can it's Brian Preston the money guy I can already see you know when when Morpheus already see you know when when Morpheus already see you know when when Morpheus and Rebbie are naming this this is going and Rebbie are naming this this is going and Rebbie are naming this this is going to be this segment the highlight clip to be this segment the highlight clip to be this segment the highlight clip that gets the most comment right is the that gets the most comment right is the that gets the most comment right is the downside of the fire movement I can downside of the fire movement I can downside of the fire movement I can already hear them they're coming out you already hear them they're coming out you already hear them they're coming out you can practically hear the stampede of can practically hear the stampede of can practically hear the stampede of them running towards the door the keys them running towards the door the keys them running towards the door the keys chirping on the console so let's go chirping on the console so let's go chirping on the console so let's go through these the first one and I add through these the first one and I add through these the first one and I add you because this is part of the measure you because this is part of the measure you because this is part of the measure twice cut once it's not that I'm against twice cut once it's not that I'm against twice cut once it's not that I'm against you leaving the workforce I'm making you leaving the workforce I'm making you leaving the workforce I'm making this change early it's just that I want this change early it's just that I want this change early it's just that I want to make sure you turned over every stone to make sure you turned over every stone to make sure you turned over every stone so you don't make a mistake and have her so you don't make a mistake and have her so you don't make a mistake and have her grip the first one is so think about grip the first one is so think about grip the first one is so think about this Oh God apprecia is that you go to this Oh God apprecia is that you go to this Oh God apprecia is that you go to it because we all go to parties okay and it because we all go to parties okay and it because we all go to parties okay and you you're like should I get there early you you're like should I get there early you you're like should I get there early should I get there right at time do I should I get there right at time do I should I get there right at time do I get there early do I get there a little get there early do I get there a little get there early do I get there a little late let the fire get when why do why is late let the fire get when why do why is late let the fire get when why do why is it called fashionably late why do you it called fashionably late why do you it called fashionably late why do you show up at parties because you know the show up at parties because you know the show up at parties because you know the beginning of all parties it's going to beginning of all parties it's going to beginning of all parties it's going to be lame somebody it is going to be lame be lame somebody it is going to be lame be lame somebody it is going to be lame cuz you get there you're gonna help the cuz you get there you're gonna help the cuz you get there you're gonna help the host set up some stuff and then you know host set up some stuff and then you know host set up some stuff and then you know and it really is even with an adults it and it really is even with an adults it and it really is even with an adults it kind of becomes like th grade and th kind of becomes like th grade and th kind of becomes like th grade and th grade dances because the guys are gonna grade dances because the guys are gonna grade dances because the guys are gonna be on one side of the room the girls go be on one side of the room the girls go be on one side of the room the girls go be on the other side it's a lame party be on the other side it's a lame party be on the other side it's a lame party and that's kind of how you're if you and that's kind of how you're if you and that's kind of how you're if you looking at the analogy of life and your looking at the analogy of life and your looking at the analogy of life and your work force that's kind of how things work force that's kind of how things work force that's kind of how things happen so the music starts deejay starts happen so the music starts deejay starts happen so the music starts deejay starts playing music that everybody likes the playing music that everybody likes the playing music that everybody likes the girls come from the left the guys come girls come from the left the guys come girls come from the left the guys come from the right and they get together and from the right and they get together and from the right and they get together and start dancing to go the party starts start dancing to go the party starts start dancing to go the party starts heating up you fire people I just want heating up you fire people I just want heating up you fire people I just want you to measure twice cut once you to measure twice cut once you to measure twice cut once cuz you're kind of people like well cuz you're kind of people like well cuz you're kind of people like well they're dancing together now time to go they're dancing together now time to go they're dancing together now time to go home because what I'm saying about home because what I'm saying about home because what I'm saying about here's the point of this your peak here's the point of this your peak here's the point of this your peak earning years are forty-five to sixty earning years are forty-five to sixty earning years are forty-five to sixty four I pulled that from the Bureau of four I pulled that from the Bureau of four I pulled that from the Bureau of Labor Statistics and and and the thing Labor Statistics and and and the thing Labor Statistics and and and the thing is is that I just want you to think is is that I just want you to think is is that I just want you to think about the fact that that is a huge stat about the fact that that is a huge stat about the fact that that is a huge stat you're making your biggest money to you're making your biggest money to you're making your biggest money to but there's a lot of you who are but there's a lot of you who are but there's a lot of you who are saying I'm out of here you know and saying I'm out of here you know and saying I'm out of here you know and that's right as the party's heating up that's right as the party's heating up that's right as the party's heating up you're walking away so you need to make you're walking away so you need to make you're walking away so you need to make sure you are okay with that young you've sure you are okay with that young you've sure you are okay with that young you've thought about that and don't miss a thought about that and don't miss a thought about that and don't miss a theorists and think that we're saying theorists and think that we're saying theorists and think that we're saying that making the most of my that making the most of my that making the most of my money's the thing you ought to do it's money's the thing you ought to do it's money's the thing you ought to do it's just it's water that once he gets down just it's water that once he gets down just it's water that once he gets down the hill you might not be able to get it the hill you might not be able to get it the hill you might not be able to get it back up the hill so make sure that you back up the hill so make sure that you back up the hill so make sure that you understand the repercussion of making understand the repercussion of making understand the repercussion of making that decision to exit early well and that decision to exit early well and that decision to exit early well and that's why I'm gonna do these a little that's why I'm gonna do these a little that's why I'm gonna do these a little out of order because I think you just out of order because I think you just out of order because I think you just made a great transition point I had a made a great transition point I had a made a great transition point I had a father I've told you guys this impacted father I've told you guys this impacted father I've told you guys this impacted my whole way I think about the money the my whole way I think about the money the my whole way I think about the money the way I think about money the way I think way I think about money the way I think way I think about money the way I think about success is I had a father who's about success is I had a father who's about success is I had a father who's laid off in the eighth grade rocked our laid off in the eighth grade rocked our laid off in the eighth grade rocked our world and what I remember dad being so world and what I remember dad being so world and what I remember dad being so stressed about was he got laid off so stressed about was he got laid off so stressed about was he got laid off so this was an involuntary layoff because this was an involuntary layoff because this was an involuntary layoff because they were moving in a completely they were moving in a completely they were moving in a completely different direction that got out of the different direction that got out of the different direction that got out of the business that he was a manager in and he business that he was a manager in and he business that he was a manager in and he was in his mid-s and I remember him was in his mid-s and I remember him was in his mid-s and I remember him lamenting who wants a year old who lamenting who wants a year old who lamenting who wants a year old who was making this much money so that's why was making this much money so that's why was making this much money so that's why it is one of those things there is maybe it is one of those things there is maybe it is one of those things there is maybe there's no turning back when you make there's no turning back when you make there's no turning back when you make this decision not only on your peak this decision not only on your peak this decision not only on your peak earning years but there's a chance that earning years but there's a chance that earning years but there's a chance that once you go through this transition once you go through this transition once you go through this transition gateway you won't be able to get back to gateway you won't be able to get back to gateway you won't be able to get back to where you are because even like IT where you are because even like IT where you are because even like IT people there's a lot of people in IT or people there's a lot of people in IT or people there's a lot of people in IT or so for a year and a half two years the so for a year and a half two years the so for a year and a half two years the technology has changed changed on you so technology has changed changed on you so technology has changed changed on you so think about those things and that leads think about those things and that leads think about those things and that leads to and this is a great segue I didn't to and this is a great segue I didn't to and this is a great segue I didn't plan for this we should have done this plan for this we should have done this plan for this we should have done this in pro to preprinted I had it all up in pro to preprinted I had it all up in pro to preprinted I had it all up here this was all on purpose but here's here this was all on purpose but here's here this was all on purpose but here's the other thing I will tell you guys I the other thing I will tell you guys I the other thing I will tell you guys I am now old enough I'm not getting to be am now old enough I'm not getting to be am now old enough I'm not getting to be in my mid to late s and I've been in in my mid to late s and I've been in in my mid to late s and I've been in the industry I'm in my third decade of the industry I'm in my third decade of the industry I'm in my third decade of doing this and look we talked about doing this and look we talked about doing this and look we talked about , hours , hours to become get , hours , hours to become get , hours , hours to become get mastery to become an expert for some mastery to become an expert for some mastery to become an expert for some professions that require you know professions that require you know professions that require you know education experience you might not be education experience you might not be education experience you might not be able to actually start making your able to actually start making your able to actually start making your footprint stand out or your fingerprints footprint stand out or your fingerprints footprint stand out or your fingerprints all over the industry as a whole until all over the industry as a whole until all over the industry as a whole until you're twenty years inside years and you're twenty years inside years and you're twenty years inside years and I finally feel like my voice is making I finally feel like my voice is making I finally feel like my voice is making an impact in the financial world so I an impact in the financial world so I an impact in the financial world so I don't know that I have and this is this don't know that I have and this is this don't know that I have and this is this is just a philosophical thing I won't is just a philosophical thing I won't is just a philosophical thing I won't people think about it this matters to people think about it this matters to people think about it this matters to you if you're working in some type of you if you're working in some type of you if you're working in some type of field where you have impact on as an field where you have impact on as an field where you have impact on as an expert in the profession is it okay that expert in the profession is it okay that expert in the profession is it okay that you're walking away from that I mean you're walking away from that I mean you're walking away from that I mean that's just something I think people that's just something I think people that's just something I think people ought to consider again you got to think ought to consider again you got to think ought to consider again you got to think about what's the you know you have to about what's the you know you have to about what's the you know you have to define what's the purpose you're here on define what's the purpose you're here on define what's the purpose you're here on this earth and you might have something this earth and you might have something this earth and you might have something that's worth sharing something that's worth sharing something that's worth sharing something impact expert and yes you might be now impact expert and yes you might be now impact expert and yes you might be now going to go teach at school or be a going to go teach at school or be a going to go teach at school or be a tutor or some but if you were actually tutor or some but if you were actually tutor or some but if you were actually shaping the direction of this field is shaping the direction of this field is shaping the direction of this field is it better it's just something to it better it's just something to it better it's just something to measuring the about and then we talked measuring the about and then we talked measuring the about and then we talked about in Nepal let you lead into this about in Nepal let you lead into this about in Nepal let you lead into this one because you got into trouble last one because you got into trouble last one because you got into trouble last time with this archons this is maybe the time with this archons this is maybe the time with this archons this is maybe the most controversial downside to fire and most controversial downside to fire and most controversial downside to fire and you know here's the big question that we you know here's the big question that we you know here's the big question that we have to ask is if you're a participant have to ask is if you're a participant have to ask is if you're a participant fine you exit the workforce early are fine you exit the workforce early are fine you exit the workforce early are there negative health impacts associated there negative health impacts associated there negative health impacts associated with that that maybe would have been a with that that maybe would have been a with that that maybe would have been a better way for us to a framed the better way for us to a framed the better way for us to a framed the question maybe than the way that we did question maybe than the way that we did question maybe than the way that we did hey if you retire early you're gonna die hey if you retire early you're gonna die hey if you retire early you're gonna die that's not really what we're trying to that's not really what we're trying to that's not really what we're trying to say say say however you know anecdotally we both however you know anecdotally we both however you know anecdotally we both have personal stories we've worked with have personal stories we've worked with have personal stories we've worked with clients we have loved ones and family clients we have loved ones and family clients we have loved ones and family members you have to make sure that you members you have to make sure that you members you have to make sure that you measure again measure twice two three measure again measure twice two three measure again measure twice two three four times to understand what it is that four times to understand what it is that four times to understand what it is that you're retiring to not just what it is you're retiring to not just what it is you're retiring to not just what it is you're retiring away from because if you you're retiring away from because if you you're retiring away from because if you retire to nothing yeah there might be retire to nothing yeah there might be retire to nothing yeah there might be some unintended consequences whether it some unintended consequences whether it some unintended consequences whether it be cognitively or motivationally or be cognitively or motivationally or be cognitively or motivationally or whatever you need to understand what whatever you need to understand what whatever you need to understand what those impacts are and how that's gonna those impacts are and how that's gonna those impacts are and how that's gonna affect the enjoyment that you're able to affect the enjoyment that you're able to affect the enjoyment that you're able to experience throughout your retirement experience throughout your retirement experience throughout your retirement life the stat that I think people get life the stat that I think people get life the stat that I think people get upset about makes their the hair stand upset about makes their the hair stand upset about makes their the hair stand up on their neck is that there's a study up on their neck is that there's a study up on their neck is that there's a study out there that if you take your Social out there that if you take your Social out there that if you take your Social Security early men especially there's a Security early men especially there's a Security early men especially there's a % more increase in mortality right but % more increase in mortality right but % more increase in mortality right but here's what I think these stats don't here's what I think these stats don't here's what I think these stats don't tell you you don't know that these tell you you don't know that these tell you you don't know that these people take Social Security early people take Social Security early people take Social Security early because they knew they were already because they knew they were already because they knew they were already saying something was wrong they already saying something was wrong they already saying something was wrong they already you know is their lifestyle things that you know is their lifestyle things that you know is their lifestyle things that were already impacted because I think were already impacted because I think were already impacted because I think that stat can be very misleading but it that stat can be very misleading but it that stat can be very misleading but it does lead to you said it perfectly beau does lead to you said it perfectly beau does lead to you said it perfectly beau is that everybody needs the kind of what is that everybody needs the kind of what is that everybody needs the kind of what wakes you up in the morning and gives wakes you up in the morning and gives wakes you up in the morning and gives you purpose we had Fritz on from the you purpose we had Fritz on from the you purpose we had Fritz on from the retirement manifesto and he was so retirement manifesto and he was so retirement manifesto and he was so generous to us that if you go out to generous to us that if you go out to generous to us that if you go out to money guy calm we have a brand new money guy calm we have a brand new money guy calm we have a brand new resource section and Fritz shared with resource section and Fritz shared with resource section and Fritz shared with us the tin can ten commandments of us the tin can ten commandments of us the tin can ten commandments of retirement you got to go download that retirement you got to go download that retirement you got to go download that if this is something you're considering if this is something you're considering if this is something you're considering because it talks about one of them is because it talks about one of them is because it talks about one of them is know what you're retiring to and even know what you're retiring to and even know what you're retiring to and even get into hobbies and other things before get into hobbies and other things before get into hobbies and other things before you retire so you're not just waking up you retire so you're not just waking up you retire so you're not just waking up a good retirement plan is not the first a good retirement plan is not the first a good retirement plan is not the first two months I plan on watching all Judge two months I plan on watching all Judge two months I plan on watching all Judge Judy all the time not going to be a Judy all the time not going to be a Judy all the time not going to be a fulfilling retirement you got to know fulfilling retirement you got to know fulfilling retirement you got to know what you're working towards and Bo what you're working towards and Bo what you're working towards and Bo that's probably a great segue it's kind that's probably a great segue it's kind that's probably a great segue it's kind of talking about what we're doing and of talking about what we're doing and of talking about what we're doing and now we have some some pretty big now we have some some pretty big now we have some some pretty big announcements yeah we we have created announcements yeah we we have created announcements yeah we we have created something new and something exciting and something new and something exciting and something new and something exciting and something that is live for you guys now something that is live for you guys now something that is live for you guys now do you want to do a pre-show drumroll do you want to do a pre-show drumroll do you want to do a pre-show drumroll please we create charts and please we create charts and please we create charts and illustrations and graphs and checklist illustrations and graphs and checklist illustrations and graphs and checklist and spreadsheets and all these different and spreadsheets and all these different and spreadsheets and all these different things resources that we think can help things resources that we think can help things resources that we think can help you add abundance to your financial life you add abundance to your financial life you add abundance to your financial life and they are all now available on our and they are all now available on our and they are all now available on our website you can go out to money guide website you can go out to money guide website you can go out to money guide calm you can click on our resource page calm you can click on our resource page calm you can click on our resource page you can see all of the resources that we you can see all of the resources that we you can see all of the resources that we currently have made available and we're currently have made available and we're currently have made available and we're going to be adding to them as we come up going to be adding to them as we come up going to be adding to them as we come up with new ideas as we have new with new ideas as we have new with new ideas as we have new illustrations we think that are valuable illustrations we think that are valuable illustrations we think that are valuable for you guys for you guys for you guys we're gonna put them out there so go out we're gonna put them out there so go out we're gonna put them out there so go out to money guide com click on our resource to money guide com click on our resource to money guide com click on our resource page there's gonna be a great way for page there's gonna be a great way for page there's gonna be a great way for you to get your hand on the free content you to get your hand on the free content you to get your hand on the free content it's gonna help you impact your it's gonna help you impact your it's gonna help you impact your financial life for the better yeah we've financial life for the better yeah we've financial life for the better yeah we've already mentioned two ten commandments already mentioned two ten commandments already mentioned two ten commandments of retirement from fritz and retirement of retirement from fritz and retirement of retirement from fritz and retirement manifestos going to be on there a lot of manifestos going to be on there a lot of manifestos going to be on there a lot of this stuff when I talk about the dollar this stuff when I talk about the dollar this stuff when I talk about the dollar turn into you know the power of turn into you know the power of turn into you know the power of compounding that stuff's out there compounding that stuff's out there compounding that stuff's out there there's so many things that you got to there's so many things that you got to there's so many things that you got to go to money calm and get this resource go to money calm and get this resource go to money calm and get this resource this also helps us we logically sending this also helps us we logically sending this also helps us we logically sending out the email updates this is so much out the email updates this is so much out the email updates this is so much better if you just get it on your own better if you just get it on your own better if you just get it on your own time when you want it instead of time when you want it instead of time when you want it instead of creating some process and burying it in creating some process and burying it in creating some process and burying it in your email inbox somewhere now you just your email inbox somewhere now you just your email inbox somewhere now you just all / seven days a week I mean we're all / seven days a week I mean we're all / seven days a week I mean we're like Waffle House the resources are like Waffle House the resources are like Waffle House the resources are there so keep it going then that leads there so keep it going then that leads there so keep it going then that leads to well you you said use the word to well you you said use the word to well you you said use the word abundance we had this whole thing abundance we had this whole thing abundance we had this whole thing internally we talked about the abundance internally we talked about the abundance internally we talked about the abundance cycle where you come here we completely cycle where you come here we completely cycle where you come here we completely give it away I had to troll this it just give it away I had to troll this it just give it away I had to troll this it just got crawled out of a bridge was beating got crawled out of a bridge was beating got crawled out of a bridge was beating up on us and I was like guess what up on us and I was like guess what up on us and I was like guess what checks in the mail I'm sending you the checks in the mail I'm sending you the checks in the mail I'm sending you the refund check for what you paid anything refund check for what you paid anything refund check for what you paid anything I can say that very comfortably because I can say that very comfortably because I can say that very comfortably because we give away tons of free advice this is we give away tons of free advice this is we give away tons of free advice this is your resource you come and it's part of your resource you come and it's part of your resource you come and it's part of the abundance cycle we give it away for the abundance cycle we give it away for the abundance cycle we give it away for free on purpose because we want you to free on purpose because we want you to free on purpose because we want you to learn apply aggro and then at some point learn apply aggro and then at some point learn apply aggro and then at some point you will reach such a level of success you will reach such a level of success you will reach such a level of success you go I can't do this on my on my own you go I can't do this on my on my own you go I can't do this on my on my own anymore anymore anymore and that's when you'll say I need to and that's when you'll say I need to and that's when you'll say I need to have somebody to help me do this measure have somebody to help me do this measure have somebody to help me do this measure twice cut once you gonna think about the twice cut once you gonna think about the twice cut once you gonna think about the money guys show and the financial money guys show and the financial money guys show and the financial planners from abound West right and planners from abound West right and planners from abound West right and that's that does complete the abundance that's that does complete the abundance that's that does complete the abundance cycle and we could not do this without cycle and we could not do this without cycle and we could not do this without you guys and we feel so appreciative you guys and we feel so appreciative you guys and we feel so appreciative thank you thank you thank you and we thank you thank you thank you and we thank you thank you thank you and we started this in it continues to started this in it continues to started this in it continues to bear fruit it started as an online bear fruit it started as an online bear fruit it started as an online classroom but it is turned out to be a classroom but it is turned out to be a classroom but it is turned out to be a great way for us to meet people all great way for us to meet people all great way for us to meet people all across the country so thank you thank across the country so thank you thank across the country so thank you thank you you you I'm bran Preston my co-host mr. beau I'm bran Preston my co-host mr. beau I'm bran Preston my co-host mr. beau handsome money got team out WEBVTT Kind: captions Language: en it's Brian Preston the money guy here's it's Brian Preston the money guy here's it's Brian Preston the money guy here's one I'm gonna throw it out there I'm one I'm gonna throw it out there I'm one I'm gonna throw it out there I'm gonna be the guy who's just gonna start gonna be the guy who's just gonna start gonna be the guy who's just gonna start the obvious con right it requires a the obvious con right it requires a the obvious con right it requires a whole lot of sacrifice now this is what whole lot of sacrifice now this is what whole lot of sacrifice now this is what I mean now I didn't realize I was a fire I mean now I didn't realize I was a fire I mean now I didn't realize I was a fire proponent when I first started my career proponent when I first started my career proponent when I first started my career you know wait way back in the mid you know wait way back in the mid you know wait way back in the mid when I got out of school I came up with when I got out of school I came up with when I got out of school I came up with this great idea right I went to public this great idea right I went to public this great idea right I went to public so there's the public's two minutes from so there's the public's two minutes from so there's the public's two minutes from a house and they would have a house and they would have a house and they would have buy-one-get-one cereal right you could buy-one-get-one cereal right you could buy-one-get-one cereal right you could get Lucky Charms or Golden Grahams or get Lucky Charms or Golden Grahams or get Lucky Charms or Golden Grahams or whatever that's not a that's not an whatever that's not a that's not an whatever that's not a that's not an endorsement they don't pay us endorsement they don't pay us endorsement they don't pay us you could go do that well what had to go you could go do that well what had to go you could go do that well what had to go do is I go by like boxes of cereal do is I go by like boxes of cereal do is I go by like boxes of cereal right book and I would just eat that for right book and I would just eat that for right book and I would just eat that for every single meal every single meal every single meal every single meal every single meal every single meal I was saving a ton of money on my I was saving a ton of money on my I was saving a ton of money on my grocery bill grocery bill but there was grocery bill grocery bill but there was grocery bill grocery bill but there was some sacrifice required to be able to do some sacrifice required to be able to do some sacrifice required to be able to do that a financial sacrifice should you that a financial sacrifice should you that a financial sacrifice should you probably sent the amount of money that probably sent the amount of money that probably sent the amount of money that you saved directly to a savings account you saved directly to a savings account you saved directly to a savings account knowing your personality absolutely but knowing your personality absolutely but knowing your personality absolutely but it probably had a negative impact on it probably had a negative impact on it probably had a negative impact on your overall happiness yeah maybe your your overall happiness yeah maybe your your overall happiness yeah maybe your health health health absolutely stuff that goes into that absolutely stuff that goes into that absolutely stuff that goes into that that you don't have to just be able to that you don't have to just be able to that you don't have to just be able to save as much as possible you have to save as much as possible you have to save as much as possible you have to really think about what your life looks really think about what your life looks really think about what your life looks like in your s or s and whether or like in your s or s and whether or like in your s or s and whether or not you have the mobility or the ability not you have the mobility or the ability not you have the mobility or the ability to tell you the things that you want to to tell you the things that you want to to tell you the things that you want to do the other thing I think that's a con do the other thing I think that's a con do the other thing I think that's a con is that it's hard right if you really is that it's hard right if you really is that it's hard right if you really want to be someone who does this there's want to be someone who does this there's want to be someone who does this there's no magic bullet so you can't just go no magic bullet so you can't just go no magic bullet so you can't just go start flipping houses or go buy Bitcoin start flipping houses or go buy Bitcoin start flipping houses or go buy Bitcoin or do trading options or whatever it is or do trading options or whatever it is or do trading options or whatever it is I think you're the one who said this you I think you're the one who said this you I think you're the one who said this you said it's a series of decisions you said it's a series of decisions you said it's a series of decisions you repeatedly may just save rather than repeatedly may just save rather than repeatedly may just save rather than span so it's not just like you wake up span so it's not just like you wake up span so it's not just like you wake up and say you know what today I'm gonna be and say you know what today I'm gonna be and say you know what today I'm gonna be fire I'm gonna do it today it's it fire I'm gonna do it today it's it fire I'm gonna do it today it's it actually goes into the fiber of who you actually goes into the fiber of who you actually goes into the fiber of who you are and you have to replicate that for are and you have to replicate that for are and you have to replicate that for days weeks months years decades right days weeks months years decades right days weeks months years decades right and if you really think about the beauty and if you really think about the beauty and if you really think about the beauty of compounding is it takes time you have of compounding is it takes time you have of compounding is it takes time you have to have time on your side for it to work to have time on your side for it to work to have time on your side for it to work is not something where that you can say is not something where that you can say is not something where that you can say okay I'm not gonna spend anything this okay I'm not gonna spend anything this okay I'm not gonna spend anything this week and I'm gonna be a part of this week and I'm gonna be a part of this week and I'm gonna be a part of this movement and then you do it big pat on movement and then you do it big pat on movement and then you do it big pat on the back next week you blow the budget the back next week you blow the budget the back next week you blow the budget out of proportion and spend more than out of proportion and spend more than out of proportion and spend more than you would have if you just would have you would have if you just would have you would have if you just would have went out about your regular table so went out about your regular table so went out about your regular table so it it does take some discipline it it does take some discipline it it does take some discipline absolutely and it does take small absolutely and it does take small absolutely and it does take small victories here and there that build up victories here and there that build up victories here and there that build up over time and then once you get really over time and then once you get really over time and then once you get really good at the practice part of it and good at the practice part of it and good at the practice part of it and you're able to continue doing those you're able to continue doing those you're able to continue doing those small victories now you add new small victories now you add new small victories now you add new victories in new small pick ups here and victories in new small pick ups here and victories in new small pick ups here and there then it just grows and compounds there then it just grows and compounds there then it just grows and compounds and you really figure out what's and you really figure out what's and you really figure out what's valuable Tim I love it valuable Tim I love it valuable Tim I love it this is what now it wouldn't be a money this is what now it wouldn't be a money this is what now it wouldn't be a money guy show right without the voice of guy show right without the voice of guy show right without the voice of Brian Preston now I'm not gonna do my Brian Preston now I'm not gonna do my Brian Preston now I'm not gonna do my best Brian press and impression but here best Brian press and impression but here best Brian press and impression but here with these notes because he wanted to with these notes because he wanted to with these notes because he wanted to kind of weigh in a little bit and he kind of weigh in a little bit and he kind of weigh in a little bit and he said you know this is the big con that I said you know this is the big con that I said you know this is the big con that I see when I think about the fire movement see when I think about the fire movement see when I think about the fire movement are you leaving the game right if you are you leaving the game right if you are you leaving the game right if you think about the game of your working think about the game of your working think about the game of your working career if you think about the the career if you think about the the career if you think about the the ability for you to generate income ability for you to generate income ability for you to generate income are you leaving at your most valuable are you leaving at your most valuable are you leaving at your most valuable earning years and potential but cause earning years and potential but cause earning years and potential but cause it's hard to get that water back up the it's hard to get that water back up the it's hard to get that water back up the hill and Brian said you know even some hill and Brian said you know even some hill and Brian said you know even some professions they don't even let you back professions they don't even let you back professions they don't even let you back in so if you make the chance to exit in so if you make the chance to exit in so if you make the chance to exit you're making your you're high starting you're making your you're high starting you're making your you're high starting years you may not ever be able to years you may not ever be able to years you may not ever be able to replicate that again yeah and it's very replicate that again yeah and it's very replicate that again yeah and it's very fair and I think a lot of our clients fair and I think a lot of our clients fair and I think a lot of our clients especially in the tech business do have especially in the tech business do have especially in the tech business do have a legitimate fear that as they grow more a legitimate fear that as they grow more a legitimate fear that as they grow more mature in their career short they might mature in their career short they might mature in their career short they might be replaced by younger cheaper workers be replaced by younger cheaper workers be replaced by younger cheaper workers and really might just get outgrown yeah and really might just get outgrown yeah and really might just get outgrown yeah you know and so not trying to throw any you know and so not trying to throw any you know and so not trying to throw any shade there but it is a fear that if you shade there but it is a fear that if you shade there but it is a fear that if you hop off the wagon for five or six years hop off the wagon for five or six years hop off the wagon for five or six years and realize hey that was a lot of fun and realize hey that was a lot of fun and realize hey that was a lot of fun let me get back on the ability and the let me get back on the ability and the let me get back on the ability and the opportunity that you had when you left opportunity that you had when you left opportunity that you had when you left it might not be available to you so it might not be available to you so it might not be available to you so that's a big con that you make this that's a big con that you make this that's a big con that you make this decision and maybe maybe irrevocable if decision and maybe maybe irrevocable if decision and maybe maybe irrevocable if you actually make the decision to step you actually make the decision to step you actually make the decision to step away this is one that I think is to a away this is one that I think is to a away this is one that I think is to a lot of folks who pursue the fire lot of folks who pursue the fire lot of folks who pursue the fire movement it's a game they want to say movement it's a game they want to say movement it's a game they want to say can I do it can I win the game it's can I do it can I win the game it's can I do it can I win the game it's really easy to think about what it is really easy to think about what it is really easy to think about what it is that you're retiring from I work a that you're retiring from I work a that you're retiring from I work a hundred hours a week I you know don't hundred hours a week I you know don't hundred hours a week I you know don't see my kids I want to my family I want see my kids I want to my family I want see my kids I want to my family I want to get away from that but a lot of to get away from that but a lot of to get away from that but a lot of people don't put the time in to really people don't put the time in to really people don't put the time in to really think about what am i retiring to if you think about what am i retiring to if you think about what am i retiring to if you haven't listened episode we do a Fritz haven't listened episode we do a Fritz haven't listened episode we do a Fritz Gilbert retirement manifesto it was Gilbert retirement manifesto it was Gilbert retirement manifesto it was phenomenal phenomenal phenomenal and this is one of the things that Fritz and this is one of the things that Fritz and this is one of the things that Fritz really drives home is you have to have really drives home is you have to have really drives home is you have to have defined what is it that defined what is it that defined what is it that thing that you're retiring to it needs thing that you're retiring to it needs thing that you're retiring to it needs to be more about just winning the game to be more about just winning the game to be more about just winning the game can I do it okay once I if I'm that dog can I do it okay once I if I'm that dog can I do it okay once I if I'm that dog and I've chased a car and I've caught it and I've chased a car and I've caught it and I've chased a car and I've caught it what am I actually gonna do now that what am I actually gonna do now that what am I actually gonna do now that I've caught the car it's a big leap I've caught the car it's a big leap I've caught the car it's a big leap because think about people that have because think about people that have because think about people that have saved so much of their income for so saved so much of their income for so saved so much of their income for so long to just flip a switch yep it just long to just flip a switch yep it just long to just flip a switch yep it just does not happen that easy and have the does not happen that easy and have the does not happen that easy and have the confidence to be able to do it there's a confidence to be able to do it there's a confidence to be able to do it there's a lot of jitters you know stepping from lot of jitters you know stepping from lot of jitters you know stepping from the warm up box or circle now on-deck the warm up box or circle now on-deck the warm up box or circle now on-deck circle I guess for you baseball players circle I guess for you baseball players circle I guess for you baseball players to the batter's box yeah I mean it's to the batter's box yeah I mean it's to the batter's box yeah I mean it's it's real now absolutely you know it's real now absolutely you know it's real now absolutely you know another thing that we talk about is another thing that we talk about is another thing that we talk about is there are some probably some physical there are some probably some physical there are some probably some physical right and maybe some mental things that right and maybe some mental things that right and maybe some mental things that happened to Maria Fitzpatrick who's an happened to Maria Fitzpatrick who's an happened to Maria Fitzpatrick who's an associate professor Cornell found that associate professor Cornell found that associate professor Cornell found that men who retire at have an increased men who retire at have an increased men who retire at have an increased mortality risk of about % so just mortality risk of about % so just mortality risk of about % so just folks who retire five you know three to folks who retire five you know three to folks who retire five you know three to five years earlier than normal five years earlier than normal five years earlier than normal retirement age have increased mortality retirement age have increased mortality retirement age have increased mortality risk truth be told we don't know the risk truth be told we don't know the risk truth be told we don't know the number for fire statistics but I think number for fire statistics but I think number for fire statistics but I think we've all seen whether it be parents or we've all seen whether it be parents or we've all seen whether it be parents or grandparents or folks that we know once grandparents or folks that we know once grandparents or folks that we know once they leave the working world working they leave the working world working they leave the working world working professional recruiters there's just as professional recruiters there's just as professional recruiters there's just as some natural cognitive decline when some natural cognitive decline when some natural cognitive decline when you're if you're not continuing to sort you're if you're not continuing to sort you're if you're not continuing to sort of advance and figure that sort of stuff of advance and figure that sort of stuff of advance and figure that sort of stuff out we don't really know what the out we don't really know what the out we don't really know what the long-term effects are on someone if they long-term effects are on someone if they long-term effects are on someone if they are retired for years that's are retired for years that's are retired for years that's the fear if you don't find that passion the fear if you don't find that passion the fear if you don't find that passion project if you don't find the project if you don't find the project if you don't find the fulfillment you're looking for in fulfillment you're looking for in fulfillment you're looking for in retirement what do you do yeah you know retirement what do you do yeah you know retirement what do you do yeah you know and that's the thing that Brian and that's the thing that Brian and that's the thing that Brian mentioned before in show prep he said mentioned before in show prep he said mentioned before in show prep he said you know work is food for the Soul yep you know work is food for the Soul yep you know work is food for the Soul yep that's right there is a part of working that's right there is a part of working that's right there is a part of working that does keep you young that's right that does keep you young that's right that does keep you young that's right and then I think about the other you and then I think about the other you and then I think about the other you know again this is just because I like I know again this is just because I like I know again this is just because I like I like to think about the economics of it like to think about the economics of it like to think about the economics of it it seems like on a large scale there's a it seems like on a large scale there's a it seems like on a large scale there's a large population shift from producers large population shift from producers large population shift from producers folks in the workforce folks creating folks in the workforce folks creating folks in the workforce folks creating goods driving capital markets and then goods driving capital markets and then goods driving capital markets and then there's a huge shift to consumers there's a huge shift to consumers there's a huge shift to consumers without folks to replace them that seems without folks to replace them that seems without folks to replace them that seems like it could be problematic and we've like it could be problematic and we've like it could be problematic and we've actually seen that play out on some actually seen that play out on some actually seen that play out on some economies globally where there are just economies globally where there are just economies globally where there are just aging populations there are more people aging populations there are more people aging populations there are more people that are not working men that are that are not working men that are that are not working men that are working you know economically that can working you know economically that can working you know economically that can have some issues and some headwinds as have some issues and some headwinds as have some issues and some headwinds as well well social security well well social security well well social security you retire early in Millennials by the you retire early in Millennials by the you retire early in Millennials by the way don't believe it's gonna be there way don't believe it's gonna be there way don't believe it's gonna be there for them anyway as fewer people paying for them anyway as fewer people paying for them anyway as fewer people paying into the pot that's exactly and more into the pot that's exactly and more into the pot that's exactly and more people were retiring that are dependent people were retiring that are dependent people were retiring that are dependent on that yep okay so here's some on that yep okay so here's some on that yep okay so here's some questions we want to think about or we questions we want to think about or we questions we want to think about or we want you to think about it as you want you to think about it as you want you to think about it as you consider the fire movement is you're consider the fire movement is you're consider the fire movement is you're kind of reflecting on this so I'm gonna kind of reflecting on this so I'm gonna kind of reflecting on this so I'm gonna ask you these questions question over ask you these questions question over ask you these questions question over one game just fire only pertain to one game just fire only pertain to one game just fire only pertain to people that look at their occupation as people that look at their occupation as people that look at their occupation as a job versus career purpose and visit a job versus career purpose and visit a job versus career purpose and visit the found what they were put on this the found what they were put on this the found what they were put on this earth to do I think some do okay I think earth to do I think some do okay I think earth to do I think some do okay I think that there is an association of you know that there is an association of you know that there is an association of you know this is what brings me happiness this is this is what brings me happiness this is this is what brings me happiness this is what's fulfilling I think that that's what's fulfilling I think that that's what's fulfilling I think that that's probably the camp that I fall into it is probably the camp that I fall into it is probably the camp that I fall into it is magical seeing a plan come together and magical seeing a plan come together and magical seeing a plan come together and seeing people really reach those seeing people really reach those seeing people really reach those milestones they've been working so hard milestones they've been working so hard milestones they've been working so hard for but that's not true across the board for but that's not true across the board for but that's not true across the board so everyone might not get that same type so everyone might not get that same type so everyone might not get that same type of fulfillment or their nine-to-five I of fulfillment or their nine-to-five I of fulfillment or their nine-to-five I think that said perfectly because think that said perfectly because think that said perfectly because frankly I don't think I'm ever gonna frankly I don't think I'm ever gonna frankly I don't think I'm ever gonna retire I can never be part of the fire retire I can never be part of the fire retire I can never be part of the fire movement cuz I never want to do the movement cuz I never want to do the movement cuz I never want to do the retire part there's just too much fun retire part there's just too much fun retire part there's just too much fun getting to do this show getting to getting to do this show getting to getting to do this show getting to connect with clients getting to talk to connect with clients getting to talk to connect with clients getting to talk to the folks the money got family it's just the folks the money got family it's just the folks the money got family it's just too much fun I don't think I ever want too much fun I don't think I ever want too much fun I don't think I ever want to step away for it but I know for a to step away for it but I know for a to step away for it but I know for a fact this is what I was put on this fact this is what I was put on this fact this is what I was put on this planet to do I think the win is if you planet to do I think the win is if you planet to do I think the win is if you can find that thing and still have the can find that thing and still have the can find that thing and still have the life balance where you can spin the time life balance where you can spin the time life balance where you can spin the time with a family and have the time I think with a family and have the time I think with a family and have the time I think that's the big win I think some people that's the big win I think some people that's the big win I think some people that if they're just not in that they that if they're just not in that they that if they're just not in that they believe that they can't find that believe that they can't find that believe that they can't find that without completely stepping away right without completely stepping away right without completely stepping away right no you're absolutely right and so I no you're absolutely right and so I no you're absolutely right and so I think that a lot of times clients do think that a lot of times clients do think that a lot of times clients do have to Orton take clients fire have to Orton take clients fire have to Orton take clients fire advocates or followers do you have to advocates or followers do you have to advocates or followers do you have to sometimes take a step back and go okay sometimes take a step back and go okay sometimes take a step back and go okay what do I do now yeah I've been working what do I do now yeah I've been working what do I do now yeah I've been working in this grind for so long yep I might in this grind for so long yep I might in this grind for so long yep I might have been putting in those hour work have been putting in those hour work have been putting in those hour work weeks or hour work weeks I have all weeks or hour work weeks I have all weeks or hour work weeks I have all of these resources I've accumulated of these resources I've accumulated of these resources I've accumulated because I've done this how do I turn it because I've done this how do I turn it because I've done this how do I turn it off yeah yeah yeah how do I go from off yeah yeah yeah how do I go from off yeah yeah yeah how do I go from - sorry to like that yeah it's - sorry to like that yeah it's - sorry to like that yeah it's exactly and I think we've even seen exactly and I think we've even seen exactly and I think we've even seen statistically there are a lot of folks statistically there are a lot of folks statistically there are a lot of folks who have to walk that back right so ii who have to walk that back right so ii who have to walk that back right so ii they do the I think knows it's they do the I think knows it's they do the I think knows it's just doesn't stick I've got to change just doesn't stick I've got to change just doesn't stick I've got to change this okay so what are some things that this okay so what are some things that this okay so what are some things that are required are required are required to be successful if you leave the to be successful if you leave the to be successful if you leave the workforce early we've already said you workforce early we've already said you workforce early we've already said you have to have a high savings rate and if have to have a high savings rate and if have to have a high savings rate and if you're a high income earner that doesn't you're a high income earner that doesn't you're a high income earner that doesn't hurt right so obviously the higher your hurt right so obviously the higher your hurt right so obviously the higher your income is the higher you can say without income is the higher you can say without income is the higher you can say without having a sacrifice standards living % having a sacrifice standards living % having a sacrifice standards living % is sort of the bellwether that's sort of is sort of the bellwether that's sort of is sort of the bellwether that's sort of the thing that you want to march towards the thing that you want to march towards the thing that you want to march towards right right right you said trimming the fat getting rid of you said trimming the fat getting rid of you said trimming the fat getting rid of any financial burden that's not a any financial burden that's not a any financial burden that's not a necessity cable car replacements fancy necessity cable car replacements fancy necessity cable car replacements fancy wardrobes cut the things that you don't wardrobes cut the things that you don't wardrobes cut the things that you don't need need need don't spend what you can't what you don't spend what you can't what you don't spend what you can't what you won't save on what you don't need right won't save on what you don't need right won't save on what you don't need right sure sure sure Vicki Robin would say don't buy that Vicki Robin would say don't buy that Vicki Robin would say don't buy that thing if it does not bring you value if thing if it does not bring you value if thing if it does not bring you value if it doesn't provide you know that a happy it doesn't provide you know that a happy it doesn't provide you know that a happy factor okay I'm gonna put you on the factor okay I'm gonna put you on the factor okay I'm gonna put you on the spot here cuz I don't watch that yet but spot here cuz I don't watch that yet but spot here cuz I don't watch that yet but what's Marie Kondo you know she's there what's Marie Kondo you know she's there what's Marie Kondo you know she's there what's the thing that she says do you what's the thing that she says do you what's the thing that she says do you know what she says morph what's that know what she says morph what's that know what she says morph what's that does it this is part is a spark joy is does it this is part is a spark joy is does it this is part is a spark joy is that it I don't know she says something that it I don't know she says something that it I don't know she says something you guys can tell me in the comments you guys can tell me in the comments you guys can tell me in the comments because I totally just butchered that because I totally just butchered that because I totally just butchered that but that's what she made me yeah what but that's what she made me yeah what but that's what she made me yeah what may be sound and sound like what you may be sound and sound like what you may be sound and sound like what you made me think of you needed to find the made me think of you needed to find the made me think of you needed to find the amount you need for leisure before amount you need for leisure before amount you need for leisure before decided to quit your job you had said decided to quit your job you had said decided to quit your job you had said this so if you are somebody's working this so if you are somebody's working this so if you are somebody's working hours a week and you want to step away hours a week and you want to step away hours a week and you want to step away from that you got a prom because you're from that you got a prom because you're from that you got a prom because you're gonna do something that hours and gonna do something that hours and gonna do something that hours and there's a chance that something might there's a chance that something might there's a chance that something might cost money right yeah work might be cost money right yeah work might be cost money right yeah work might be relatively cheap depending your relatively cheap depending your relatively cheap depending your retirement goals are and to think about retirement goals are and to think about retirement goals are and to think about it if you're just planning to save it if you're just planning to save it if you're just planning to save enough to cover your basic utilities enough to cover your basic utilities enough to cover your basic utilities your mortgage your grocery bills what do your mortgage your grocery bills what do your mortgage your grocery bills what do you do for fun yeah you know I've got to you do for fun yeah you know I've got to you do for fun yeah you know I've got to factor that in and it might and be real factor that in and it might and be real factor that in and it might and be real with yourself if it's $, a month or with yourself if it's $, a month or with yourself if it's $, a month or $, a month really figure out what $, a month really figure out what $, a month really figure out what it takes it takes it takes yep for you to occupy your time and be yep for you to occupy your time and be yep for you to occupy your time and be happy so this is one and I'm trying not happy so this is one and I'm trying not happy so this is one and I'm trying not to pay attention to the comments I'm how to pay attention to the comments I'm how to pay attention to the comments I'm how the way it is spark joy I'm try not to the way it is spark joy I'm try not to the way it is spark joy I'm try not to pay attention to comments but I've seen pay attention to comments but I've seen pay attention to comments but I've seen a lot of folks might talk about a lot of folks might talk about a lot of folks might talk about withdrawal rate so I think this would withdrawal rate so I think this would withdrawal rate so I think this would not be a money guy episode unless we not be a money guy episode unless we not be a money guy episode unless we talked about that because you and I said talked about that because you and I said talked about that because you and I said and we've we've we've mentioned this in and we've we've we've mentioned this in and we've we've we've mentioned this in the show the most basic rule of rule of the show the most basic rule of rule of the show the most basic rule of rule of thumb in retirement is you want to have thumb in retirement is you want to have thumb in retirement is you want to have a % withdrawal rate of your portfolio a % withdrawal rate of your portfolio a % withdrawal rate of your portfolio let's take your total portfolio let's take your total portfolio let's take your total portfolio portfolio amount multiplied it by % portfolio amount multiplied it by % portfolio amount multiplied it by % that's kind of the amount that you can that's kind of the amount that you can that's kind of the amount that you can plan on living off of now we think plan on living off of now we think plan on living off of now we think that's what's that's what's that's what's for normal retirees or maybe I'm gonna for normal retirees or maybe I'm gonna for normal retirees or maybe I'm gonna say maybe some fat retirees or some say maybe some fat retirees or some say maybe some fat retirees or some longer in the tooth early retirees right longer in the tooth early retirees right longer in the tooth early retirees right so social security credits or yeah so social security credits or yeah so social security credits or yeah exactly so if you're someone who thinks exactly so if you're someone who thinks exactly so if you're someone who thinks you want to exit earlier we think you you want to exit earlier we think you you want to exit earlier we think you ought to revise that and this is our ought to revise that and this is our ought to revise that and this is our take we want you to shoot for a take we want you to shoot for a take we want you to shoot for a withdrawal rate of three and a half withdrawal rate of three and a half withdrawal rate of three and a half percent if you're leaving the workforce percent if you're leaving the workforce percent if you're leaving the workforce before -ish and if you're one of those before -ish and if you're one of those before -ish and if you're one of those folks that are leaving in your s right folks that are leaving in your s right folks that are leaving in your s right you probably want to think about a % you probably want to think about a % you probably want to think about a % withdrawal rate for your portfolio withdrawal rate for your portfolio withdrawal rate for your portfolio obviously the spread between rate of obviously the spread between rate of obviously the spread between rate of return and withdrawal rate is the thing return and withdrawal rate is the thing return and withdrawal rate is the thing that matters right that's what's gonna that matters right that's what's gonna that matters right that's what's gonna Altima affect the longevity of your plan Altima affect the longevity of your plan Altima affect the longevity of your plan but you don't necessarily get to control but you don't necessarily get to control but you don't necessarily get to control that so it's really how conservative or that so it's really how conservative or that so it's really how conservative or aggressive you are and what your aggressive you are and what your aggressive you are and what your expenditures are really matters if you expenditures are really matters if you expenditures are really matters if you know that you know that you know that know that you know that you know that know that you know that you know that you know that you need $, a month to you know that you need $, a month to you know that you need $, a month to live off of but there's a downturn in live off of but there's a downturn in live off of but there's a downturn in the market and you can't make it where the market and you can't make it where the market and you can't make it where you live off of $, a month you might you live off of $, a month you might you live off of $, a month you might have some problems if you play in that have some problems if you play in that have some problems if you play in that Lenalee and in talking about the Lenalee and in talking about the Lenalee and in talking about the analysis that goes behind it is we do analysis that goes behind it is we do analysis that goes behind it is we do stress test those portfolios and so stress test those portfolios and so stress test those portfolios and so we're looking at what happens if you we're looking at what happens if you we're looking at what happens if you keep money in a plan in a that's keep money in a plan in a that's keep money in a plan in a that's right and anytime that you don't spend right and anytime that you don't spend right and anytime that you don't spend what you thought you were gonna spend what you thought you were gonna spend what you thought you were gonna spend probability success goes up yep because probability success goes up yep because probability success goes up yep because you're not taking that linear' no no you're not taking that linear' no no you're not taking that linear' no no this was something that you pointed out this was something that you pointed out this was something that you pointed out in the article I think I missed the in the article I think I missed the in the article I think I missed the first time that I read through it this first time that I read through it this first time that I read through it this isn't the money piece so so for someone isn't the money piece so so for someone isn't the money piece so so for someone they said the price of regular goods and they said the price of regular goods and they said the price of regular goods and services it roughly doubles every services it roughly doubles every services it roughly doubles every years or so right that's right through years or so right that's right through years or so right that's right through inflation so the cost of a Coca Cola in inflation so the cost of a Coca Cola in inflation so the cost of a Coca Cola in years I made that up not an years I made that up not an years I made that up not an endorsement will be worth probably endorsement will be worth probably endorsement will be worth probably roughly double that right years so roughly double that right years so roughly double that right years so someone in their s they could see like someone in their s they could see like someone in their s they could see like a three or fourfold increase in their a three or fourfold increase in their a three or fourfold increase in their lifetime in the price of their goods lifetime in the price of their goods lifetime in the price of their goods right inflation is real and when you right inflation is real and when you right inflation is real and when you start manipulating inflation inside of a start manipulating inflation inside of a start manipulating inflation inside of a plan when you talking about stress plan when you talking about stress plan when you talking about stress testing and everything else a small testing and everything else a small testing and everything else a small change on an annual basis can make a big change on an annual basis can make a big change on an annual basis can make a big difference and the outcome because if difference and the outcome because if difference and the outcome because if you think about it you spend a hundred you think about it you spend a hundred you think about it you spend a hundred thousand a day making numbers easy three thousand a day making numbers easy three thousand a day making numbers easy three percent inflation percent inflation percent inflation next year's or put get a hundred and next year's or put get a hundred and next year's or put get a hundred and three out let's say you're pulling that three out let's say you're pulling that three out let's say you're pulling that from a retirement account you guys think from a retirement account you guys think from a retirement account you guys think about taxes Absalon that extra three about taxes Absalon that extra three about taxes Absalon that extra three and dollars and so now it's not just and dollars and so now it's not just and dollars and so now it's not just coming out hundred three plus tax coming out hundred three plus tax coming out hundred three plus tax exactly right WEBVTT Kind: captions Language: en well the IP is I wanted to share with well the IP is I wanted to share with well the IP is I wanted to share with you a did you know there's a a movement you a did you know there's a a movement you a did you know there's a a movement sort of speak going on out there and I sort of speak going on out there and I sort of speak going on out there and I wanted to kind of spend some time wanted to kind of spend some time wanted to kind of spend some time talking to it you know I told people talking to it you know I told people talking to it you know I told people that retirement it's not an age it's uh that retirement it's not an age it's uh that retirement it's not an age it's uh hopefully you said financial number okay hopefully you said financial number okay hopefully you said financial number okay cuz you made me feel fuzzy I know you cuz you made me feel fuzzy I know you cuz you made me feel fuzzy I know you said it cuz I know you read the book but said it cuz I know you read the book but said it cuz I know you read the book but it's not about getting to a certain age it's not about getting to a certain age it's not about getting to a certain age but here's the thing I want people to but here's the thing I want people to but here's the thing I want people to focus on building for their financial focus on building for their financial focus on building for their financial future because I want people to have future because I want people to have future because I want people to have options you see I want you to be in options you see I want you to be in options you see I want you to be in control of your future I don't want control of your future I don't want control of your future I don't want other people making decisions for you I other people making decisions for you I other people making decisions for you I don't want other people giving you half don't want other people giving you half don't want other people giving you half juice I want you to enjoy some get twos juice I want you to enjoy some get twos juice I want you to enjoy some get twos and so that's this whole other mindset and so that's this whole other mindset and so that's this whole other mindset well there's a movement out there and well there's a movement out there and well there's a movement out there and you know that's that's called the fire you know that's that's called the fire you know that's that's called the fire movement okay now the fire movement movement okay now the fire movement movement okay now the fire movement these are people that are on a mission these are people that are on a mission these are people that are on a mission as they say on a on a path to blazed a as they say on a on a path to blazed a as they say on a on a path to blazed a new trail but this is what fire stands new trail but this is what fire stands new trail but this is what fire stands for it's an acronym f ir e it stands for for it's an acronym f ir e it stands for for it's an acronym f ir e it stands for financial independence retire early well financial independence retire early well financial independence retire early well I mean you can write you can see all of I mean you can write you can see all of I mean you can write you can see all of those those factors right there I mean those those factors right there I mean those those factors right there I mean those are something I I firmly believe those are something I I firmly believe those are something I I firmly believe in this but I want people I spent some in this but I want people I spent some in this but I want people I spent some time digging into this and wrote an time digging into this and wrote an time digging into this and wrote an article about it on my website Chris article about it on my website Chris article about it on my website Chris Hogan but I wanted to kind of share Hogan but I wanted to kind of share Hogan but I wanted to kind of share some pros and cons with you with this some pros and cons with you with this some pros and cons with you with this pros are obviously focusing on dreaming pros are obviously focusing on dreaming pros are obviously focusing on dreaming and planning for retirement you all know and planning for retirement you all know and planning for retirement you all know me I'm big on talking about the high me I'm big on talking about the high me I'm big on talking about the high definition dream I want people to see definition dream I want people to see definition dream I want people to see the details I want you to visualize the details I want you to visualize the details I want you to visualize yourself standing on that place that you yourself standing on that place that you yourself standing on that place that you want to go visit or writing that check want to go visit or writing that check want to go visit or writing that check for that charity that you believe in I for that charity that you believe in I for that charity that you believe in I want you to see the details of that want you to see the details of that want you to see the details of that that's a big thing but another Pro of that's a big thing but another Pro of that's a big thing but another Pro of the fire movement is finding creative the fire movement is finding creative the fire movement is finding creative ways to reduce expenses well again I ways to reduce expenses well again I ways to reduce expenses well again I think that's a good thing I think it's think that's a good thing I think it's think that's a good thing I think it's smart for us to understand how much are smart for us to understand how much are smart for us to understand how much are we spending on food and to be able to do we spending on food and to be able to do we spending on food and to be able to do that in a better way or what we're that in a better way or what we're that in a better way or what we're spending on transportation or whatever spending on transportation or whatever spending on transportation or whatever so that's positive looking for ways to so that's positive looking for ways to so that's positive looking for ways to boost income well bringing in extra boost income well bringing in extra boost income well bringing in extra money allows us to make extra progress money allows us to make extra progress money allows us to make extra progress if we stay focused and we're doing it if we stay focused and we're doing it if we stay focused and we're doing it the right way the right way the right way the final pro of it is making savings the final pro of it is making savings the final pro of it is making savings and investing and investing and investing priority well I I mean those those are priority well I I mean those those are priority well I I mean those those are all good things but here's the other all good things but here's the other all good things but here's the other ones here's some cons dunk dunk Tom you ones here's some cons dunk dunk Tom you ones here's some cons dunk dunk Tom you know I was gonna do that that's like know I was gonna do that that's like know I was gonna do that that's like they did back in the old days with the they did back in the old days with the they did back in the old days with the bad people but I I'm just going to give bad people but I I'm just going to give bad people but I I'm just going to give you some cons of the situation so here you some cons of the situation so here you some cons of the situation so here it is the cons in looking at it from it is the cons in looking at it from it is the cons in looking at it from that movement you need a fairly large that movement you need a fairly large that movement you need a fairly large income in order to be able to pull it income in order to be able to pull it income in order to be able to pull it off and by that what I'm saying is off and by that what I'm saying is off and by that what I'm saying is there's a lot of margin to be able to do there's a lot of margin to be able to do there's a lot of margin to be able to do a lot of things quickly well here's the a lot of things quickly well here's the a lot of things quickly well here's the my issue with that not everyone has a my issue with that not everyone has a my issue with that not everyone has a large income the average income right large income the average income right large income the average income right now is hovering I think at around to now is hovering I think at around to now is hovering I think at around to mm per year but again I don't think mm per year but again I don't think mm per year but again I don't think that it's about the income that you have that it's about the income that you have that it's about the income that you have I think it's about the progress and plan I think it's about the progress and plan I think it's about the progress and plan that you're making so that's my that's that you're making so that's my that's that you're making so that's my that's an issue that I have with it let's call an issue that I have with it let's call an issue that I have with it let's call it that there's issues another issue I it that there's issues another issue I it that there's issues another issue I have with it is many of the fire have with it is many of the fire have with it is many of the fire movements they promote using credit movements they promote using credit movements they promote using credit cards for points and rewards okay yeah cards for points and rewards okay yeah cards for points and rewards okay yeah yeah I'm not even gonna get started on yeah I'm not even gonna get started on yeah I'm not even gonna get started on that whole point thing okay yes I am that whole point thing okay yes I am that whole point thing okay yes I am cuz I'm round up today all right listen cuz I'm round up today all right listen cuz I'm round up today all right listen to me that I oh I get I get frustrated I to me that I oh I get I get frustrated I to me that I oh I get I get frustrated I get irritated because that means you're get irritated because that means you're get irritated because that means you're trying to tell me that I can't count trying to tell me that I can't count trying to tell me that I can't count credit card company you think I'm a credit card company you think I'm a credit card company you think I'm a village idiot right to sign up for the village idiot right to sign up for the village idiot right to sign up for the % card so you can give me two points % card so you can give me two points % card so you can give me two points right I don't know I'm from Kentucky I'm right I don't know I'm from Kentucky I'm right I don't know I'm from Kentucky I'm not the sharpest knife in the drawer but not the sharpest knife in the drawer but not the sharpest knife in the drawer but people I know how to count right people I know how to count right people I know how to count right percent for two points you're kidding me percent for two points you're kidding me percent for two points you're kidding me right no not I'm not falling for that right no not I'm not falling for that right no not I'm not falling for that stuff and so again I point out you know stuff and so again I point out you know stuff and so again I point out you know what I talk to over , millionaires what I talk to over , millionaires what I talk to over , millionaires I over , of them you know how many I over , of them you know how many I over , of them you know how many told me credit card points and reward told me credit card points and reward told me credit card points and reward points is what put them over the hump do points is what put them over the hump do points is what put them over the hump do you know how many look at my face those you know how many look at my face those you know how many look at my face those you watch on YouTube zero not one person you watch on YouTube zero not one person you watch on YouTube zero not one person brought up a credit card point or reward brought up a credit card point or reward brought up a credit card point or reward system they didn't so it's not a factor system they didn't so it's not a factor system they didn't so it's not a factor in helping me understand to be able to in helping me understand to be able to in helping me understand to be able to build wealth ain't falling for that build wealth ain't falling for that build wealth ain't falling for that chunk anymore and here it is the other chunk anymore and here it is the other chunk anymore and here it is the other one is is that they really talk about one is is that they really talk about one is is that they really talk about this and this is kind of at one of the this and this is kind of at one of the this and this is kind of at one of the bigger bigger issues I have with it it bigger bigger issues I have with it it bigger bigger issues I have with it it says don't do the fire movement just says don't do the fire movement just says don't do the fire movement just asking asking asking a job that you hate okay now I'm saying a job that you hate okay now I'm saying a job that you hate okay now I'm saying this because oftentimes it's really this because oftentimes it's really this because oftentimes it's really targeted toward people getting out of targeted toward people getting out of targeted toward people getting out of career they don't love or a job that career they don't love or a job that career they don't love or a job that they hate and you know what I'm sorry they hate and you know what I'm sorry they hate and you know what I'm sorry but I don't want people sacrificing but I don't want people sacrificing but I don't want people sacrificing to years for a job or career that to years for a job or career that to years for a job or career that they don't like like I don't I don't they don't like like I don't I don't they don't like like I don't I don't want that that's that's too much of a want that that's that's too much of a want that that's that's too much of a sacrifice of a mental headspace and sacrifice of a mental headspace and sacrifice of a mental headspace and number of years in your life and the number of years in your life and the number of years in your life and the number of hours that you spend no I number of hours that you spend no I number of hours that you spend no I don't want you doing that I would much don't want you doing that I would much don't want you doing that I would much rather you pursue something you're rather you pursue something you're rather you pursue something you're passionate about something you believe passionate about something you believe passionate about something you believe in and you make a living because guess in and you make a living because guess in and you make a living because guess what you're gonna wake up you're gonna what you're gonna wake up you're gonna what you're gonna wake up you're gonna be excited about going to work gonna be be excited about going to work gonna be be excited about going to work gonna be excited about working with people to do excited about working with people to do excited about working with people to do this thing that you believe in so anyway this thing that you believe in so anyway this thing that you believe in so anyway I want you to read more about this it's I want you to read more about this it's I want you to read more about this it's the fire movement and there's an article the fire movement and there's an article the fire movement and there's an article again at my website Chris Hogan calm again at my website Chris Hogan calm again at my website Chris Hogan calm what is the fire movement and I don't what is the fire movement and I don't what is the fire movement and I don't want that to be taken out of context I want that to be taken out of context I want that to be taken out of context I want people to be able to retire early want people to be able to retire early want people to be able to retire early and to be able to do the things that and to be able to do the things that and to be able to do the things that they want it's just some some issues they want it's just some some issues they want it's just some some issues with approach but bottom line don't with approach but bottom line don't with approach but bottom line don't don't get me wrong I want more people don't get me wrong I want more people don't get me wrong I want more people having options to live the life that having options to live the life that having options to live the life that they want to live and to be able to do they want to live and to be able to do they want to live and to be able to do the things that they want to do for the things that they want to do for the things that they want to do for their family so anyway I want you to their family so anyway I want you to their family so anyway I want you to read it I want you to understand what read it I want you to understand what read it I want you to understand what this movement is but I also there's some this movement is but I also there's some this movement is but I also there's some positives of it of helping people to get positives of it of helping people to get positives of it of helping people to get motivated and to dig in to really engage motivated and to dig in to really engage motivated and to dig in to really engage this thing because you and I know the this thing because you and I know the this thing because you and I know the government's not gonna save the day did government's not gonna save the day did government's not gonna save the day did what did you hear me yeah the what did you hear me yeah the what did you hear me yeah the government's not gonna save the day government's not gonna save the day government's not gonna save the day have you seen that debt clock Amanda I have you seen that debt clock Amanda I have you seen that debt clock Amanda I want to get a graphic of that thing I want to get a graphic of that thing I want to get a graphic of that thing I want people to see it there are more want people to see it there are more want people to see it there are more commas in that thing than I've ever seen commas in that thing than I've ever seen commas in that thing than I've ever seen in my life right it's trillions of in my life right it's trillions of in my life right it's trillions of dollars in debt they're in it and the dollars in debt they're in it and the dollars in debt they're in it and the little cart just keeps ticket it's just little cart just keeps ticket it's just little cart just keeps ticket it's just going up and up and up and up I've seen going up and up and up and up I've seen going up and up and up and up I've seen it when I was up in New York the bottom it when I was up in New York the bottom it when I was up in New York the bottom line is this we got a we got a spending line is this we got a we got a spending line is this we got a we got a spending habit from a government level and you habit from a government level and you habit from a government level and you know we need we need a plan on our know we need we need a plan on our know we need we need a plan on our personal level and that's what we need personal level and that's what we need personal level and that's what we need to do is to take control of our to do is to take control of our to do is to take control of our financial future by being serious and financial future by being serious and financial future by being serious and making decisions that impact us as well making decisions that impact us as well making decisions that impact us as well as our family all right as our family all right as our family all right see look boy y'all got me riled up today see look boy y'all got me riled up today see look boy y'all got me riled up today but it's okay that's all right because but it's okay that's all right because but it's okay that's all right because people need to know the truth because I people need to know the truth because I people need to know the truth because I don't want people falling for those same don't want people falling for those same don't want people falling for those same old tricks anymore I old tricks anymore I old tricks anymore I met some good people as I travel around met some good people as I travel around met some good people as I travel around and I sit in airports and I talk to and I sit in airports and I talk to and I sit in airports and I talk to people I want to know about their people I want to know about their people I want to know about their journey I want to know about what journey I want to know about what journey I want to know about what they've done and met a lot of they've done and met a lot of they've done and met a lot of hard-working men and women that I wish hard-working men and women that I wish hard-working men and women that I wish they would have had this information a they would have had this information a they would have had this information a lot sooner I've met some people that lot sooner I've met some people that lot sooner I've met some people that have told me that they wish they would have told me that they wish they would have told me that they wish they would have known and so that's why you're have known and so that's why you're have known and so that's why you're gonna hear me tell you the truth and gonna hear me tell you the truth and gonna hear me tell you the truth and speak up because all we have to snap out speak up because all we have to snap out speak up because all we have to snap out of this the only way we're gonna win is of this the only way we're gonna win is of this the only way we're gonna win is if we get our own capes and the more if we get our own capes and the more if we get our own capes and the more capes we put on ourselves the more we're capes we put on ourselves the more we're capes we put on ourselves the more we're gonna be able to be blessing to other gonna be able to be blessing to other gonna be able to be blessing to other people down the road that's the truth people down the road that's the truth people down the road that's the truth and the whole truth WEBVTT Kind: captions Language: en this video is sponsored by skillshare this video is sponsored by skillshare this video is sponsored by skillshare the first people to click the link the first people to click the link the first people to click the link in the description below in the description below in the description below will get a free trial of skillshare's will get a free trial of skillshare's will get a free trial of skillshare's premium membership premium membership premium membership so what if i told you that you could so what if i told you that you could so what if i told you that you could retire in your s there's no way that's retire in your s there's no way that's retire in your s there's no way that's possible it just doesn't seem possible it just doesn't seem possible it just doesn't seem feasible right believe it or not there's feasible right believe it or not there's feasible right believe it or not there's actually countless people out there actually countless people out there actually countless people out there who have in fact retired as early as who have in fact retired as early as who have in fact retired as early as years old years old years old today we are here to tell you that we today we are here to tell you that we today we are here to tell you that we are financially independent are financially independent are financially independent and have retired early in today's video and have retired early in today's video and have retired early in today's video i'm going to show you how you can go i'm going to show you how you can go i'm going to show you how you can go from from from zero dollars at just years old to zero dollars at just years old to zero dollars at just years old to being retired by . being retired by . being retired by . and i'll go over exactly what you need and i'll go over exactly what you need and i'll go over exactly what you need to do to be able to retire by years to do to be able to retire by years to do to be able to retire by years old old old so you've probably seen a video or two so you've probably seen a video or two so you've probably seen a video or two talking about the fire movement talking about the fire movement talking about the fire movement which stands for financial independence which stands for financial independence which stands for financial independence retire early retire early retire early the idea that by saving aggressively the idea that by saving aggressively the idea that by saving aggressively through your career you can reach a through your career you can reach a through your career you can reach a point at which your investments point at which your investments point at which your investments cover your expenditures allowing you to cover your expenditures allowing you to cover your expenditures allowing you to spend the rest of your life spend the rest of your life spend the rest of your life traveling the world or doing whatever traveling the world or doing whatever traveling the world or doing whatever without without without needing to work you'll find plenty of needing to work you'll find plenty of needing to work you'll find plenty of youtube videos on the topic youtube videos on the topic youtube videos on the topic sharing stories tips and tricks around sharing stories tips and tricks around sharing stories tips and tricks around fire fire fire and while this isn't to discredit people and while this isn't to discredit people and while this isn't to discredit people who have achieved fire who have achieved fire who have achieved fire the idea does serve a healthy dose of the idea does serve a healthy dose of the idea does serve a healthy dose of skepticism skepticism skepticism retirement is after all something most retirement is after all something most retirement is after all something most of us only expect to achieve in our s of us only expect to achieve in our s of us only expect to achieve in our s and even that is an impossibility for and even that is an impossibility for and even that is an impossibility for some a federal reserve study from some a federal reserve study from some a federal reserve study from showed that only percent of showed that only percent of showed that only percent of non-retirees in their s non-retirees in their s non-retirees in their s believed their savings were on track for believed their savings were on track for believed their savings were on track for retirement with retirement with retirement with having no retirement savings whatsoever having no retirement savings whatsoever having no retirement savings whatsoever but but but advocates argue that by doing some advocates argue that by doing some advocates argue that by doing some simple math following important simple math following important simple math following important strategies strategies strategies and abiding by the famous four percent and abiding by the famous four percent and abiding by the famous four percent rule or rule or rule or some variant financial freedom is some variant financial freedom is some variant financial freedom is achievable achievable achievable earlier than most expect so is early earlier than most expect so is early earlier than most expect so is early retirement retirement retirement possible well yeah possible well yeah possible well yeah actually but there's a pretty big actually but there's a pretty big actually but there's a pretty big asterisk that comes with that asterisk that comes with that asterisk that comes with that choir is arguably achievable for the choir is arguably achievable for the choir is arguably achievable for the average show average show average show but there are many misconceptions of but there are many misconceptions of but there are many misconceptions of what early retirement actually looks what early retirement actually looks what early retirement actually looks like like like and likewise many risks not often and likewise many risks not often and likewise many risks not often explained by fire promoters explained by fire promoters explained by fire promoters that's not to say there aren't positive that's not to say there aren't positive that's not to say there aren't positive aspects to the strategy indeed aspects to the strategy indeed aspects to the strategy indeed many of us could learn a thing or two many of us could learn a thing or two many of us could learn a thing or two from the fire movement but from the fire movement but from the fire movement but retiring early probably won't be the retiring early probably won't be the retiring early probably won't be the partying on private beaches you might partying on private beaches you might partying on private beaches you might be expecting be expecting be expecting so before you decide to say deuces to so before you decide to say deuces to so before you decide to say deuces to your boss let's go over how you can your boss let's go over how you can your boss let's go over how you can retire early retire early retire early and why you might not actually want to and why you might not actually want to and why you might not actually want to on today's plane bagel when it comes to regular retirement the when it comes to regular retirement the when it comes to regular retirement the general idea is to save enough money general idea is to save enough money general idea is to save enough money throughout your career throughout your career throughout your career so that when you reach your s you can so that when you reach your s you can so that when you reach your s you can stop working and live off the amount stop working and live off the amount stop working and live off the amount you've accumulated you've accumulated you've accumulated this amount is often referred to as your this amount is often referred to as your this amount is often referred to as your nest egg nest egg nest egg and if you know your desired retirement and if you know your desired retirement and if you know your desired retirement age your life expectancy age your life expectancy age your life expectancy and how much you plan on spending on an and how much you plan on spending on an and how much you plan on spending on an annual basis in your retirement annual basis in your retirement annual basis in your retirement you can actually estimate how much you can actually estimate how much you can actually estimate how much you'll need for example if you expect to you'll need for example if you expect to you'll need for example if you expect to retire at the age of retire at the age of retire at the age of live until you've reached and you live until you've reached and you live until you've reached and you need need need a year for living expenses then with a a year for living expenses then with a a year for living expenses then with a few assumptions few assumptions few assumptions you can calculate the nest egg you need you can calculate the nest egg you need you can calculate the nest egg you need to reach by age to reach by age to reach by age in this case in this case in this case of course the assumptions you use here of course the assumptions you use here of course the assumptions you use here play a critical role in the calculation play a critical role in the calculation play a critical role in the calculation and variables like your investment and variables like your investment and variables like your investment returns and inflation returns and inflation returns and inflation will likely vary from what you assume will likely vary from what you assume will likely vary from what you assume not to mention this approach not to mention this approach not to mention this approach grossly oversimplifies the taxes grossly oversimplifies the taxes grossly oversimplifies the taxes involved but involved but involved but at the very least this provides a rough at the very least this provides a rough at the very least this provides a rough idea of how much you've got to put aside idea of how much you've got to put aside idea of how much you've got to put aside over time over time over time if you want to continue your current if you want to continue your current if you want to continue your current lifestyle after you've left your job lifestyle after you've left your job lifestyle after you've left your job also as a quick aside for this video also as a quick aside for this video also as a quick aside for this video i'll be tossing out some hypothetical i'll be tossing out some hypothetical i'll be tossing out some hypothetical figures for the purpose of providing figures for the purpose of providing figures for the purpose of providing a running example but i have no idea a running example but i have no idea a running example but i have no idea whether whether whether is enough or too little for your own is enough or too little for your own is enough or too little for your own retirement needs retirement needs retirement needs so don't use these numbers as a basis so don't use these numbers as a basis so don't use these numbers as a basis for your own retirement plan for your own retirement plan for your own retirement plan if you really need help in terms of if you really need help in terms of if you really need help in terms of formulating something for your own formulating something for your own formulating something for your own financial situation financial situation financial situation seek out the advice of a professional seek out the advice of a professional seek out the advice of a professional now just like regular retirement now just like regular retirement now just like regular retirement the objective of the fire movement is to the objective of the fire movement is to the objective of the fire movement is to build a nest egg that you can live off build a nest egg that you can live off build a nest egg that you can live off of of of this means quickly paying off any and this means quickly paying off any and this means quickly paying off any and all debts that you've accumulated all debts that you've accumulated all debts that you've accumulated saving money from each paycheck and saving money from each paycheck and saving money from each paycheck and investing investing investing typically in passive index funds to fuel typically in passive index funds to fuel typically in passive index funds to fuel the growth of your wealth the growth of your wealth the growth of your wealth but fire followers aim to achieve their but fire followers aim to achieve their but fire followers aim to achieve their nest egg much earlier on in life nest egg much earlier on in life nest egg much earlier on in life often at some point in their s that often at some point in their s that often at some point in their s that means a lot less time to reach the means a lot less time to reach the means a lot less time to reach the needed amount needed amount needed amount and a larger nest egg required since and a larger nest egg required since and a larger nest egg required since you'll be living off of it for much you'll be living off of it for much you'll be living off of it for much longer longer longer to make things even trickier true to make things even trickier true to make things even trickier true financial independence financial independence financial independence means living off of the income from your means living off of the income from your means living off of the income from your investments and investments and investments and not needing to draw on your capital to not needing to draw on your capital to not needing to draw on your capital to fund expenditures fund expenditures fund expenditures so whereas our prior calculation assumes so whereas our prior calculation assumes so whereas our prior calculation assumes that you deplete your savings by the that you deplete your savings by the that you deplete your savings by the time you reach time you reach time you reach many fire followers look instead to many fire followers look instead to many fire followers look instead to follow the four percent rule follow the four percent rule follow the four percent rule the four percent rule is something that the four percent rule is something that the four percent rule is something that came from a research paper came from a research paper came from a research paper known as the trinity study which known as the trinity study which known as the trinity study which demonstrated that if someone only demonstrated that if someone only demonstrated that if someone only withdrew four percent annually withdrew four percent annually withdrew four percent annually from their investment portfolio it was from their investment portfolio it was from their investment portfolio it was unlikely for them to exhaust their unlikely for them to exhaust their unlikely for them to exhaust their capital capital capital over a -year period with investment over a -year period with investment over a -year period with investment returns returns returns sustaining the withdrawal requirements sustaining the withdrawal requirements sustaining the withdrawal requirements in other words in other words in other words if you're able to live off four percent if you're able to live off four percent if you're able to live off four percent of your investment portfolio of your investment portfolio of your investment portfolio then your savings should be able to fund then your savings should be able to fund then your savings should be able to fund your retirement for your retirement for your retirement for at least a -year period now early at least a -year period now early at least a -year period now early retirement obviously calls for a retirement obviously calls for a retirement obviously calls for a much longer retirement period so in much longer retirement period so in much longer retirement period so in practice many people will actually try practice many people will actually try practice many people will actually try to limit their withdrawals to limit their withdrawals to limit their withdrawals to only three percent of their portfolio to only three percent of their portfolio to only three percent of their portfolio the handy thing about this approach the handy thing about this approach the handy thing about this approach is that it could theoretically fund your is that it could theoretically fund your is that it could theoretically fund your retirement forever retirement forever retirement forever something that's important for someone something that's important for someone something that's important for someone looking to spend most of their life looking to spend most of their life looking to spend most of their life retired retired retired and it's pretty simple to figure out how and it's pretty simple to figure out how and it's pretty simple to figure out how much you'll need to save much you'll need to save much you'll need to save using this rule since you simply divide using this rule since you simply divide using this rule since you simply divide your desired retirement income your desired retirement income your desired retirement income by three percent problem is it means by three percent problem is it means by three percent problem is it means you'll need a much you'll need a much you'll need a much larger nest egg to avoid drawing on your larger nest egg to avoid drawing on your larger nest egg to avoid drawing on your capital capital capital for a retirement income of a year for a retirement income of a year for a retirement income of a year you'll need to save roughly . you'll need to save roughly . you'll need to save roughly . million dollars by your mid-s million dollars by your mid-s million dollars by your mid-s now unless you've locked out by starting now unless you've locked out by starting now unless you've locked out by starting a successful business early on in life a successful business early on in life a successful business early on in life or or or making it big on youtube because your making it big on youtube because your making it big on youtube because your viewers smash the like button and viewers smash the like button and viewers smash the like button and subscribe most people simply don't make enough most people simply don't make enough most people simply don't make enough money to achieve this goal money to achieve this goal money to achieve this goal even if you are able to earn an after even if you are able to earn an after even if you are able to earn an after tax and inflation investment return of tax and inflation investment return of tax and inflation investment return of six percent which is pretty impressive six percent which is pretty impressive six percent which is pretty impressive it would require that you save it would require that you save it would require that you save a year or roughly a year or roughly a year or roughly a month starting at the age of . a month starting at the age of . a month starting at the age of . so rather than trying to get rich quick so rather than trying to get rich quick so rather than trying to get rich quick and boost things on the income side of and boost things on the income side of and boost things on the income side of the equation the equation the equation many fire followers look instead to many fire followers look instead to many fire followers look instead to lower their costs lower their costs lower their costs through frugality both during their work through frugality both during their work through frugality both during their work years and years and years and in retirement by lowering how much they in retirement by lowering how much they in retirement by lowering how much they expect to spend in their retirement expect to spend in their retirement expect to spend in their retirement say from fifty thousand dollars a year say from fifty thousand dollars a year say from fifty thousand dollars a year to twenty five thousand dollars to twenty five thousand dollars to twenty five thousand dollars individuals can decrease the amount individuals can decrease the amount individuals can decrease the amount required for their nest egg required for their nest egg required for their nest egg in this case from one point seven in this case from one point seven in this case from one point seven million dollars to eight hundred and million dollars to eight hundred and million dollars to eight hundred and thirty three thousand dollars thirty three thousand dollars thirty three thousand dollars meanwhile spending less now will mean meanwhile spending less now will mean meanwhile spending less now will mean more money from each paycheck that can more money from each paycheck that can more money from each paycheck that can be put towards this goal be put towards this goal be put towards this goal so many fire hopefuls will save so many fire hopefuls will save so many fire hopefuls will save aggressively when they're still working aggressively when they're still working aggressively when they're still working and when i say aggressively i mean it and when i say aggressively i mean it and when i say aggressively i mean it whereas a conventional budget may put whereas a conventional budget may put whereas a conventional budget may put aside aside aside something around of one's salary for something around of one's salary for something around of one's salary for retirement retirement retirement fire followers look to bank the vast fire followers look to bank the vast fire followers look to bank the vast majority of their income majority of their income majority of their income sometimes as much as percent of what sometimes as much as percent of what sometimes as much as percent of what they bring in they bring in they bring in which makes sense because even with which makes sense because even with which makes sense because even with their smaller nest egg you'll still need their smaller nest egg you'll still need their smaller nest egg you'll still need to save roughly a year or to save roughly a year or to save roughly a year or a month using our prior assumptions a month using our prior assumptions a month using our prior assumptions and really this aggressive frugality is and really this aggressive frugality is and really this aggressive frugality is what makes the fire movement the what makes the fire movement the what makes the fire movement the community it is these saving objectives community it is these saving objectives community it is these saving objectives are are are tough and people have come together to tough and people have come together to tough and people have come together to form forums form forums form forums blogs and websites dedicated to sharing blogs and websites dedicated to sharing blogs and websites dedicated to sharing these tips and tricks these tips and tricks these tips and tricks with fire hopefuls there's even a bit of with fire hopefuls there's even a bit of with fire hopefuls there's even a bit of a culture behind the movement a culture behind the movement a culture behind the movement with many although certainly not all with many although certainly not all with many although certainly not all fire followers fire followers fire followers broadly rejecting consumerism and debt broadly rejecting consumerism and debt broadly rejecting consumerism and debt in favor of minimalism in favor of minimalism in favor of minimalism placing less value on paid for products placing less value on paid for products placing less value on paid for products and experiences and experiences and experiences and quite frankly there's a lot to be and quite frankly there's a lot to be and quite frankly there's a lot to be learned from that mindset learned from that mindset learned from that mindset sure i'm a capitalist at heart myself sure i'm a capitalist at heart myself sure i'm a capitalist at heart myself but most of us will agree that we could but most of us will agree that we could but most of us will agree that we could all benefit from reigning in our all benefit from reigning in our all benefit from reigning in our spending to some degree spending to some degree spending to some degree and fire strategies like paying yourself and fire strategies like paying yourself and fire strategies like paying yourself first and eating out less are first and eating out less are first and eating out less are incredibly powerful tactics for incredibly powerful tactics for incredibly powerful tactics for discipline saving discipline saving discipline saving that are sure to benefit anyone trying that are sure to benefit anyone trying that are sure to benefit anyone trying to retire but there are a lot of people to retire but there are a lot of people to retire but there are a lot of people who misrepresent what who misrepresent what who misrepresent what early retirement actually looks like as early retirement actually looks like as early retirement actually looks like as you can see you can see you can see frugality is at the heart of the frugality is at the heart of the frugality is at the heart of the approach and it's something that approach and it's something that approach and it's something that continues continues continues well into your retirement so you can well into your retirement so you can well into your retirement so you can probably forget about ever leasing a probably forget about ever leasing a probably forget about ever leasing a brand new car again brand new car again brand new car again or any extravagant vacation plans that or any extravagant vacation plans that or any extravagant vacation plans that you might see other people enjoying you might see other people enjoying you might see other people enjoying online online online there are also a lot of risks with fire there are also a lot of risks with fire there are also a lot of risks with fire that are often that are often that are often overlooked for example while the four overlooked for example while the four overlooked for example while the four percent rule is helpful in gauging how percent rule is helpful in gauging how percent rule is helpful in gauging how much you need to retire much you need to retire much you need to retire it doesn't guarantee a lifetime of it doesn't guarantee a lifetime of it doesn't guarantee a lifetime of passive income even a nest egg based on passive income even a nest egg based on passive income even a nest egg based on the three percent rule the three percent rule the three percent rule is susceptible to market and inflation is susceptible to market and inflation is susceptible to market and inflation risk and if your portfolio experiences risk and if your portfolio experiences risk and if your portfolio experiences large losses early on it will see its large losses early on it will see its large losses early on it will see its longevity greatly impaired longevity greatly impaired longevity greatly impaired there are also more personal factors there are also more personal factors there are also more personal factors that may throw rent in your fire plans that may throw rent in your fire plans that may throw rent in your fire plans being laid off from your job a being laid off from your job a being laid off from your job a disability that prevents you from disability that prevents you from disability that prevents you from pursuing meaningful work pursuing meaningful work pursuing meaningful work an unexpected expense that forces you to an unexpected expense that forces you to an unexpected expense that forces you to spend more now spend more now spend more now than you've budgeted for and while than you've budgeted for and while than you've budgeted for and while living off of living off of living off of a year might sound great on paper in a year might sound great on paper in a year might sound great on paper in practice it can be practice it can be practice it can be a lot trickier to pull off which is why a lot trickier to pull off which is why a lot trickier to pull off which is why many early retirees many early retirees many early retirees actually continue to work that's right actually continue to work that's right actually continue to work that's right as counterintuitive as it sounds as counterintuitive as it sounds as counterintuitive as it sounds achieving fire doesn't usually involve a achieving fire doesn't usually involve a achieving fire doesn't usually involve a complete exit from the workforce complete exit from the workforce complete exit from the workforce in fact i would go as far as to say that in fact i would go as far as to say that in fact i would go as far as to say that the fire movement isn't the fire movement isn't the fire movement isn't actually about reaching a point where actually about reaching a point where actually about reaching a point where you get to sit on the couch all day and you get to sit on the couch all day and you get to sit on the couch all day and do do do nothing many early retirees still end up nothing many early retirees still end up nothing many early retirees still end up working to some capacity working to some capacity working to some capacity after they've left their day job often after they've left their day job often after they've left their day job often taking on a part-time taking on a part-time taking on a part-time casual role or pursuing passion projects casual role or pursuing passion projects casual role or pursuing passion projects with the potential of making money with the potential of making money with the potential of making money but the idea is that they'll have a lot but the idea is that they'll have a lot but the idea is that they'll have a lot more flexibility to work more flexibility to work more flexibility to work when they want to work and do what they when they want to work and do what they when they want to work and do what they want to do want to do want to do if they don't rely as heavily on their if they don't rely as heavily on their if they don't rely as heavily on their regular employment income regular employment income regular employment income for some there's a lot of value in that for some there's a lot of value in that for some there's a lot of value in that someone who hates their day job someone who hates their day job someone who hates their day job may be willing to accept a less may be willing to accept a less may be willing to accept a less frivolous lifestyle frivolous lifestyle frivolous lifestyle if it means they can do something more if it means they can do something more if it means they can do something more casual casual casual while still paying the bills on time but while still paying the bills on time but while still paying the bills on time but the point i'm trying to get at here is the point i'm trying to get at here is the point i'm trying to get at here is that early retirement that early retirement that early retirement isn't as glamorous as it's sometimes isn't as glamorous as it's sometimes isn't as glamorous as it's sometimes made out to be and made out to be and made out to be and that's okay none of this is to that's okay none of this is to that's okay none of this is to discourage fire hopefuls from discourage fire hopefuls from discourage fire hopefuls from chasing an early retirement and if you chasing an early retirement and if you chasing an early retirement and if you believe that you have the capacity to believe that you have the capacity to believe that you have the capacity to reach a sufficient nest egg earlier on reach a sufficient nest egg earlier on reach a sufficient nest egg earlier on in life than most in life than most in life than most awesome but too often i'll see someone awesome but too often i'll see someone awesome but too often i'll see someone promoting fire as something that comes promoting fire as something that comes promoting fire as something that comes down more to down more to down more to mindset than your circumstance as though mindset than your circumstance as though mindset than your circumstance as though it's something available to it's something available to it's something available to everyone and i personally just don't everyone and i personally just don't everyone and i personally just don't believe that believe that believe that of course attitude plays an important of course attitude plays an important of course attitude plays an important role and there are people out there who role and there are people out there who role and there are people out there who could greatly could greatly could greatly improve their financial well-being with improve their financial well-being with improve their financial well-being with some adjustments to their lifestyle some adjustments to their lifestyle some adjustments to their lifestyle i've seen that firsthand but fire is i've seen that firsthand but fire is i've seen that firsthand but fire is not exactly accessible to everyone where not exactly accessible to everyone where not exactly accessible to everyone where you're born you're born you're born your upbringing and the opportunities your upbringing and the opportunities your upbringing and the opportunities available to you all greatly impact your available to you all greatly impact your available to you all greatly impact your chances of achieving fire chances of achieving fire chances of achieving fire again all the power to anyone who is again all the power to anyone who is again all the power to anyone who is able to retire early able to retire early able to retire early and enjoy the life that they want and and enjoy the life that they want and and enjoy the life that they want and there's nothing wrong with picking up a there's nothing wrong with picking up a there's nothing wrong with picking up a few tips from youtubers on the topic few tips from youtubers on the topic few tips from youtubers on the topic i'll even leave some links to the videos i'll even leave some links to the videos i'll even leave some links to the videos i referenced at the beginning i referenced at the beginning i referenced at the beginning but be wary of anyone enjoying an but be wary of anyone enjoying an but be wary of anyone enjoying an extravagant retired life extravagant retired life extravagant retired life trying to convince you that you can do trying to convince you that you can do trying to convince you that you can do the same especially if they're selling the same especially if they're selling the same especially if they're selling some sort of course or some sort of course or some sort of course or product to get you there so it's up to product to get you there so it's up to product to get you there so it's up to you if you want to pursue fire you if you want to pursue fire you if you want to pursue fire but keep these points in mind before you but keep these points in mind before you but keep these points in mind before you make a decision fire often comes with make a decision fire often comes with make a decision fire often comes with changing one's lifestyle and spending changing one's lifestyle and spending changing one's lifestyle and spending less than you would be able to less than you would be able to less than you would be able to at a standard retirement age since a at a standard retirement age since a at a standard retirement age since a later retirement means more time to save later retirement means more time to save later retirement means more time to save and and and more time to let your salary grow more time to let your salary grow more time to let your salary grow there's also risks involved with there's also risks involved with there's also risks involved with relying on a pool of investments to fund relying on a pool of investments to fund relying on a pool of investments to fund your lifestyle your lifestyle your lifestyle so you may need to return to work to so you may need to return to work to so you may need to return to work to cover your expenses cover your expenses cover your expenses and of course there's no guaranteed and of course there's no guaranteed and of course there's no guaranteed method for achieving fire method for achieving fire method for achieving fire so while attitude is important you can so while attitude is important you can so while attitude is important you can only do so much within your only do so much within your only do so much within your circumstances circumstances circumstances and there's no get rich quick course and there's no get rich quick course and there's no get rich quick course that will change that that will change that that will change that whether it's worth taking on these risks whether it's worth taking on these risks whether it's worth taking on these risks and downsides comes down to your and downsides comes down to your and downsides comes down to your own values i myself am lucky enough to own values i myself am lucky enough to own values i myself am lucky enough to enjoy the work i do enjoy the work i do enjoy the work i do so i'm not passionate about leaving my so i'm not passionate about leaving my so i'm not passionate about leaving my job early and pursuing fire job early and pursuing fire job early and pursuing fire but if someone can't stand their job and but if someone can't stand their job and but if someone can't stand their job and would easily trade off some would easily trade off some would easily trade off some discretionary income for discretionary income for discretionary income for less stressful work that's their less stressful work that's their less stressful work that's their decision to make decision to make decision to make just ensure that you cover your bases just ensure that you cover your bases just ensure that you cover your bases and reassess your position regularly and reassess your position regularly and reassess your position regularly either way frugality is something we can either way frugality is something we can either way frugality is something we can all agree is sure to help your all agree is sure to help your all agree is sure to help your retirement retirement retirement so even if you don't plan on retiring so even if you don't plan on retiring so even if you don't plan on retiring early it can be helpful to pretend like early it can be helpful to pretend like early it can be helpful to pretend like you're going to you're going to you're going to live like a student as some people put live like a student as some people put live like a student as some people put it and use the many it and use the many it and use the many free resources available to you to help free resources available to you to help free resources available to you to help keep track of your savings and your keep track of your savings and your keep track of your savings and your progress towards this goal progress towards this goal progress towards this goal but if you're going to play with fire be but if you're going to play with fire be but if you're going to play with fire be careful not to get burned careful not to get burned careful not to get burned craig wanted me to add that that's his craig wanted me to add that that's his craig wanted me to add that that's his fault you can blame him for that one fault you can blame him for that one fault you can blame him for that one what are your thoughts on the fire what are your thoughts on the fire what are your thoughts on the fire movement and is it something you're movement and is it something you're movement and is it something you're interested in pursuing yourself or is it interested in pursuing yourself or is it interested in pursuing yourself or is it something that you think something that you think something that you think is more of a pipe dream let me know in is more of a pipe dream let me know in is more of a pipe dream let me know in the comments down below the comments down below the comments down below of course make sure to like and of course make sure to like and of course make sure to like and subscribe so that i can pursue my own subscribe so that i can pursue my own subscribe so that i can pursue my own vacation vacation vacation and check out the plain bagel mug for and check out the plain bagel mug for and check out the plain bagel mug for the plain bagel my name is richard the plain bagel my name is richard the plain bagel my name is richard kaufman kaufman kaufman i'll see you at the beach today's video i'll see you at the beach today's video i'll see you at the beach today's video is sponsored by skillshare is sponsored by skillshare is sponsored by skillshare as mentioned there's not really any as mentioned there's not really any as mentioned there's not really any course out there that can promise to course out there that can promise to course out there that can promise to generate you passive income so you can generate you passive income so you can generate you passive income so you can achieve fire achieve fire achieve fire but if you're looking to learn a skill but if you're looking to learn a skill but if you're looking to learn a skill or hone one you already have for or hone one you already have for or hone one you already have for other reasons then skillshare is a other reasons then skillshare is a other reasons then skillshare is a platform you might want to check out platform you might want to check out platform you might want to check out skillshare is a learning platform with skillshare is a learning platform with skillshare is a learning platform with videos covering a range of skills videos covering a range of skills videos covering a range of skills both professional and well less so both professional and well less so both professional and well less so i for example have recently gone through i for example have recently gone through i for example have recently gone through advanced video editing with adobe advanced video editing with adobe advanced video editing with adobe premiere pro premiere pro premiere pro which helped me improve my editing which helped me improve my editing which helped me improve my editing capabilities quite a bit for the channel capabilities quite a bit for the channel capabilities quite a bit for the channel i've also really been into home i've also really been into home i've also really been into home renovations lately and how to give your renovations lately and how to give your renovations lately and how to give your bathroom a makeover was a really bathroom a makeover was a really bathroom a makeover was a really interesting course that gave a lot of interesting course that gave a lot of interesting course that gave a lot of insight into design insight into design insight into design and colors that quite frankly i don't and colors that quite frankly i don't and colors that quite frankly i don't have a great eye for naturally have a great eye for naturally have a great eye for naturally it's a service that i've personally it's a service that i've personally it's a service that i've personally turned to for a lot of different areas turned to for a lot of different areas turned to for a lot of different areas and for under a month you get and for under a month you get and for under a month you get unlimited access to their library of unlimited access to their library of unlimited access to their library of videos videos videos but if you remain skeptical you can try but if you remain skeptical you can try but if you remain skeptical you can try it out for free by clicking the link in it out for free by clicking the link in it out for free by clicking the link in the description below the description below the description below the first people will get a trial the first people will get a trial the first people will get a trial of skillshare's premium membership of skillshare's premium membership of skillshare's premium membership anyway it's there if you'd like to try anyway it's there if you'd like to try anyway it's there if you'd like to try it out and support the channel and hey it out and support the channel and hey it out and support the channel and hey if you're going to retire early you're if you're going to retire early you're if you're going to retire early you're going to need something to do with all going to need something to do with all going to need something to do with all that free time that free time that free time right yeah anyway thanks skillshare for right yeah anyway thanks skillshare for right yeah anyway thanks skillshare for sponsoring today's video sponsoring today's video sponsoring today's video [Music] you WEBVTT Kind: captions Language: en the fire movement what is it who's doing the fire movement what is it who's doing the fire movement what is it who's doing it should I do it is it good or bad how it should I do it is it good or bad how it should I do it is it good or bad how do I do it all that and more on today's do I do it all that and more on today's do I do it all that and more on today's money guy money guy money guy it's Brian Preston the bloody guy I got it's Brian Preston the bloody guy I got it's Brian Preston the bloody guy I got to stop giving Brian such a hard time to stop giving Brian such a hard time to stop giving Brian such a hard time because that's actually a lot harder because that's actually a lot harder because that's actually a lot harder than it looks I wasn't planning on like than it looks I wasn't planning on like than it looks I wasn't planning on like having an issue with it but I kind of having an issue with it but I kind of having an issue with it but I kind of got froze up and nervous and should work got froze up and nervous and should work got froze up and nervous and should work should i redo is it okay okay morph says should i redo is it okay okay morph says should i redo is it okay okay morph says it sucks because we're live before if it sucks because we're live before if it sucks because we're live before if you're on YouTube watching and so you're on YouTube watching and so you're on YouTube watching and so there's not really like a warmup period there's not really like a warmup period there's not really like a warmup period because there's a little bit of chatter because there's a little bit of chatter because there's a little bit of chatter before the show that's right and so you before the show that's right and so you before the show that's right and so you kind of hit the countdown thing and kind of hit the countdown thing and kind of hit the countdown thing and then you just have to go if you are then you just have to go if you are then you just have to go if you are joining in with us today this is the joining in with us today this is the joining in with us today this is the very first time you're interact with the very first time you're interact with the very first time you're interact with the money guys show you're in for a little money guys show you're in for a little money guys show you're in for a little bit a treat because this is not the bit a treat because this is not the bit a treat because this is not the normal cast of characters the money guy normal cast of characters the money guy normal cast of characters the money guy himself Brian Preston is actually not himself Brian Preston is actually not himself Brian Preston is actually not with us right now he is out in the with us right now he is out in the with us right now he is out in the middle of the ocean with his very middle of the ocean with his very middle of the ocean with his very favorite Mouse but he didn't want us to favorite Mouse but he didn't want us to favorite Mouse but he didn't want us to forget about him so he wanted us to forget about him so he wanted us to forget about him so he wanted us to share this with you guys up on the share this with you guys up on the share this with you guys up on the screen you can see there he is Brian and screen you can see there he is Brian and screen you can see there he is Brian and his lovely wife Jennifer and then also I his lovely wife Jennifer and then also I his lovely wife Jennifer and then also I think that's Brian with his doppelganger think that's Brian with his doppelganger think that's Brian with his doppelganger Buzz Lightyear and his daughter as well Buzz Lightyear and his daughter as well Buzz Lightyear and his daughter as well and they're having just a wonderful time and they're having just a wonderful time and they're having just a wonderful time and so he said you know what guys it and so he said you know what guys it and so he said you know what guys it rather than me trying to reschedule our rather than me trying to reschedule our rather than me trying to reschedule our recording rather than they're trying to recording rather than they're trying to recording rather than they're trying to shift this around you know we have a shift this around you know we have a shift this around you know we have a really unique thing going on with Gabe really unique thing going on with Gabe really unique thing going on with Gabe and our office in kind of the way that and our office in kind of the way that and our office in kind of the way that he has sort of evolved in terms of he has sort of evolved in terms of he has sort of evolved in terms of working as advisors are affirmed and working as advisors are affirmed and working as advisors are affirmed and sort of a specialty that he has so why sort of a specialty that he has so why sort of a specialty that he has so why don't I step out and why don't I let don't I step out and why don't I let don't I step out and why don't I let Gabe answer a question and talk through Gabe answer a question and talk through Gabe answer a question and talk through something we've been dealing with a lot something we've been dealing with a lot something we've been dealing with a lot over the past couple years yep over the past couple years yep over the past couple years yep definitely growing in popularity this definitely growing in popularity this definitely growing in popularity this whole movement right this whole fire whole movement right this whole fire whole movement right this whole fire thing so today just kind of trying to thing so today just kind of trying to thing so today just kind of trying to talk you through what it is what it talk you through what it is what it talk you through what it is what it looks like things you should think about looks like things you should think about looks like things you should think about if it's something you're interested in if it's something you're interested in if it's something you're interested in and the steps you need to be taking now and the steps you need to be taking now and the steps you need to be taking now to get prepared yeah I think what's to get prepared yeah I think what's to get prepared yeah I think what's really interesting to me and what was really interesting to me and what was really interesting to me and what was hard is if you go out there do any sort hard is if you go out there do any sort hard is if you go out there do any sort of googling on the fire movement there of googling on the fire movement there of googling on the fire movement there are just tomes of information and no one are just tomes of information and no one are just tomes of information and no one does it the same no one defines it the does it the same no one defines it the does it the same no one defines it the same so we try to distill it down to six same so we try to distill it down to six same so we try to distill it down to six things and I had to give myself a sticky things and I had to give myself a sticky things and I had to give myself a sticky note because we started doing the notes note because we started doing the notes note because we started doing the notes and in true money guy fashion our notes and in true money guy fashion our notes and in true money guy fashion our notes went from one page to to two pages to went from one page to to two pages to went from one page to to two pages to four four pages four four pages four four pages eight and so we said okay well we got to eight and so we said okay well we got to eight and so we said okay well we got to figure out how we can distill this whole figure out how we can distill this whole figure out how we can distill this whole thing down to make it useful to not only thing down to make it useful to not only thing down to make it useful to not only folks in the fire movement folks who folks in the fire movement folks who folks in the fire movement folks who know about it but folks who've never know about it but folks who've never know about it but folks who've never heard of it and even the folks who might heard of it and even the folks who might heard of it and even the folks who might be in the fire movement that don't know be in the fire movement that don't know be in the fire movement that don't know they're in the fire movement cuz that they're in the fire movement cuz that they're in the fire movement cuz that was one that I thought was kind of was one that I thought was kind of was one that I thought was kind of remark sure so we're gonna talk about remark sure so we're gonna talk about remark sure so we're gonna talk about what is it who does it is it good or bad what is it who does it is it good or bad what is it who does it is it good or bad some things to consider if you want to some things to consider if you want to some things to consider if you want to be part of the fire movement how to be part of the fire movement how to be part of the fire movement how to prepare for the fire movement and then prepare for the fire movement and then prepare for the fire movement and then we're going to close out with our take we're going to close out with our take we're going to close out with our take on it what does the money guy family on it what does the money guy family on it what does the money guy family what is our firm say about the fire what is our firm say about the fire what is our firm say about the fire movement and whether you should do it movement and whether you should do it movement and whether you should do it and so Gabe you are an advisor here at and so Gabe you are an advisor here at and so Gabe you are an advisor here at the firm you work with a number of the firm you work with a number of the firm you work with a number of clients and I don't know if this is clients and I don't know if this is clients and I don't know if this is purposeful or not but somehow you sort purposeful or not but somehow you sort purposeful or not but somehow you sort of developed a niche with folks who of developed a niche with folks who of developed a niche with folks who subscribe to the fire movement right subscribe to the fire movement right subscribe to the fire movement right that's right yep so I do work with a lot that's right yep so I do work with a lot that's right yep so I do work with a lot of our younger clients and a lot of of our younger clients and a lot of of our younger clients and a lot of people come to us nowadays and they're people come to us nowadays and they're people come to us nowadays and they're interested in what it takes to really interested in what it takes to really interested in what it takes to really control their time figure out at what control their time figure out at what control their time figure out at what point is enough enough and what am I point is enough enough and what am I point is enough enough and what am I really working for and so what we help really working for and so what we help really working for and so what we help them with is developing a strategy to them with is developing a strategy to them with is developing a strategy to help them get from point A to point B as help them get from point A to point B as help them get from point A to point B as quickly as safely as possible that's quickly as safely as possible that's quickly as safely as possible that's right and and if you're unfamiliar with right and and if you're unfamiliar with right and and if you're unfamiliar with what the acronym is its financial what the acronym is its financial what the acronym is its financial independence retire early so it's the independence retire early so it's the independence retire early so it's the folks who want to build to a level of folks who want to build to a level of folks who want to build to a level of financial independence as quickly as financial independence as quickly as financial independence as quickly as possible then step away from the possible then step away from the possible then step away from the traditional workforce now one thing that traditional workforce now one thing that traditional workforce now one thing that I found when I was going through all the I found when I was going through all the I found when I was going through all the research and I'm even seeing some of the research and I'm even seeing some of the research and I'm even seeing some of the questions come in is how young how old questions come in is how young how old questions come in is how young how old do you have to be do I qualify for fire do you have to be do I qualify for fire do you have to be do I qualify for fire do I not qualify for fire here's what I do I not qualify for fire here's what I do I not qualify for fire here's what I think is really interesting that I found think is really interesting that I found think is really interesting that I found and I want to see if you agree with this and I want to see if you agree with this and I want to see if you agree with this if you're someone who wants to retire if you're someone who wants to retire if you're someone who wants to retire before traditional retirement age and before traditional retirement age and before traditional retirement age and I'm gonna call traditional retirement I'm gonna call traditional retirement I'm gonna call traditional retirement age somewhere around to because age somewhere around to because age somewhere around to because that's when Social Security kicks in so that's when Social Security kicks in so that's when Social Security kicks in so if you're someone who wants your time if you're someone who wants your time if you're someone who wants your time your early s late s mid s early your early s late s mid s early your early s late s mid s early s late s mid s early footage of so s late s mid s early footage of so s late s mid s early footage of so on on on you probably fall into the fire movement you probably fall into the fire movement you probably fall into the fire movement yeah I would agree with that and Social yeah I would agree with that and Social yeah I would agree with that and Social Security would as well okay the Security would as well okay the Security would as well okay the administration would say you know administration would say you know administration would say you know depending on what year you were born depending on what year you were born depending on what year you were born that's somewhere between and yeah that's somewhere between and yeah that's somewhere between and yeah right now and then most pensions define right now and then most pensions define right now and then most pensions define is for retirement age so if that is is for retirement age so if that is is for retirement age so if that is your barometer for what a normal your barometer for what a normal your barometer for what a normal retirement age looks like anything retirement age looks like anything retirement age looks like anything before that would be considered retiring before that would be considered retiring before that would be considered retiring early early early but I think the majority of people that but I think the majority of people that but I think the majority of people that would fall into the fire camp are those would fall into the fire camp are those would fall into the fire camp are those people that are trying to really move people that are trying to really move people that are trying to really move the needle back okay they're looking to the needle back okay they're looking to the needle back okay they're looking to get in maybe the mid-s okay early s get in maybe the mid-s okay early s get in maybe the mid-s okay early s some people are willing to sacrifice so some people are willing to sacrifice so some people are willing to sacrifice so much that they want to retire in their much that they want to retire in their much that they want to retire in their mid s late s and that's up that's so mid s late s and that's up that's so mid s late s and that's up that's so we're gonna talk about that is that a we're gonna talk about that is that a we're gonna talk about that is that a good thing is that a bad thing and so good thing is that a bad thing and so good thing is that a bad thing and so one of the things we started doing some one of the things we started doing some one of the things we started doing some research on is where did the fire research on is where did the fire research on is where did the fire movement really come from and brought movement really come from and brought movement really come from and brought Gabe you found a fantastic article this Gabe you found a fantastic article this Gabe you found a fantastic article this was from April th of titled a was from April th of titled a was from April th of titled a growing cult of Millennials is obsessed growing cult of Millennials is obsessed growing cult of Millennials is obsessed with early retirement and there's a with early retirement and there's a with early retirement and there's a year old there's no likely inspiration year old there's no likely inspiration year old there's no likely inspiration for this right so Vicki Robin wrote this for this right so Vicki Robin wrote this for this right so Vicki Robin wrote this book your money or your life back in the book your money or your life back in the book your money or your life back in the s I think it was yeah right so at s I think it was yeah right so at s I think it was yeah right so at the time she was talking about how you the time she was talking about how you the time she was talking about how you separated your job from your income separated your job from your income separated your job from your income source or maybe what brings you source or maybe what brings you source or maybe what brings you satisfaction in life from the way that satisfaction in life from the way that satisfaction in life from the way that you make money okay so it's kind of been you make money okay so it's kind of been you make money okay so it's kind of been picked recently to Millennials because picked recently to Millennials because picked recently to Millennials because those are the people that are really those are the people that are really those are the people that are really starting to pick up on it and fit the starting to pick up on it and fit the starting to pick up on it and fit the mold of what retirement early or mold of what retirement early or mold of what retirement early or retiring early could look like but it's retiring early could look like but it's retiring early could look like but it's really anybody you could be a gen Xer really anybody you could be a gen Xer really anybody you could be a gen Xer you could be a Gen Y asset is a you could be a Gen Y asset is a you could be a Gen Y asset is a millennial say now even Gen Z there's millennial say now even Gen Z there's millennial say now even Gen Z there's nothing to creep into the workforce more nothing to creep into the workforce more nothing to creep into the workforce more for their djinns ears now that are for their djinns ears now that are for their djinns ears now that are working okay I didn't even know that I working okay I didn't even know that I working okay I didn't even know that I didn't know that was a thing and here's didn't know that was a thing and here's didn't know that was a thing and here's here's so one of the reasons that people here's so one of the reasons that people here's so one of the reasons that people say okay well why is this become because say okay well why is this become because say okay well why is this become because this book was written in so it's this book was written in so it's this book was written in so it's nothing new nothing new nothing new why are Millennials the one who grabbed why are Millennials the one who grabbed why are Millennials the one who grabbed hold of it I was one of the questions hold of it I was one of the questions hold of it I was one of the questions that we wanted to answer and we found that we wanted to answer and we found that we wanted to answer and we found out some things that I thought were a out some things that I thought were a out some things that I thought were a little interesting one little interesting one little interesting one Millennials are great savers that's Millennials are great savers that's Millennials are great savers that's right contrary to popular opinion we're right contrary to popular opinion we're right contrary to popular opinion we're gonna we're gonna share some cuz when we gonna we're gonna share some cuz when we gonna we're gonna share some cuz when we think about Millennials and sort of some think about Millennials and sort of some think about Millennials and sort of some of the things that you read out there of the things that you read out there of the things that you read out there the popular media negative connotations the popular media negative connotations the popular media negative connotations very negative connotation so we want to very negative connotation so we want to very negative connotation so we want to talk about some actuals to statistic to talk about some actuals to statistic to talk about some actuals to statistic to support that yeah another thing that you support that yeah another thing that you support that yeah another thing that you and I talked about in priya is that and I talked about in priya is that and I talked about in priya is that Millennials are the post Great Recession Millennials are the post Great Recession Millennials are the post Great Recession generation so they kind of they saw generation so they kind of they saw generation so they kind of they saw their parents go through or maybe they their parents go through or maybe they their parents go through or maybe they themselves went through early on the themselves went through early on the themselves went through early on the - Great Recession so that's - Great Recession so that's - Great Recession so that's their first kind of interaction with their first kind of interaction with their first kind of interaction with financial markets and saving money and financial markets and saving money and financial markets and saving money and building wealth it's really interesting building wealth it's really interesting building wealth it's really interesting we think about the comparison of we think about the comparison of we think about the comparison of Millennials coming to the Great Millennials coming to the Great Millennials coming to the Great Recession to Recession to Recession to some of our to some of like the some of our to some of like the some of our to some of like the Depression era folks having lifted the Depression era folks having lifted the Depression era folks having lifted the Great Depression and that being what Great Depression and that being what Great Depression and that being what informs their money behaviors and habits informs their money behaviors and habits informs their money behaviors and habits well even thinking about what securing well even thinking about what securing well even thinking about what securing your financial future looks like is your financial future looks like is your financial future looks like is different when you move from you know different when you move from you know different when you move from you know your parents generation pensions don't your parents generation pensions don't your parents generation pensions don't really exist in that's right and so the really exist in that's right and so the really exist in that's right and so the burden for retirement savings has really burden for retirement savings has really burden for retirement savings has really fallen on the employee right which fallen on the employee right which fallen on the employee right which doesn't help here and there from the doesn't help here and there from the doesn't help here and there from the employer and so people are taking it employer and so people are taking it employer and so people are taking it really serious to start accumulating and really serious to start accumulating and really serious to start accumulating and being able to reach their goals being able to reach their goals being able to reach their goals early on in their career and so I think early on in their career and so I think early on in their career and so I think the drive for a lot of Millennials to the drive for a lot of Millennials to the drive for a lot of Millennials to get grouped into the fire movement is get grouped into the fire movement is get grouped into the fire movement is really due to the internet and read it I really due to the internet and read it I really due to the internet and read it I hate to throw that out there yeah but hate to throw that out there yeah but hate to throw that out there yeah but there are big change sub reddits there are big change sub reddits there are big change sub reddits on the fire movement what people are on the fire movement what people are on the fire movement what people are doing the things to think about and all doing the things to think about and all doing the things to think about and all of that stuff and the majority of those of that stuff and the majority of those of that stuff and the majority of those guys and gals are kind of throwing it guys and gals are kind of throwing it guys and gals are kind of throwing it all out there and say hey this is where all out there and say hey this is where all out there and say hey this is where we're at in life this is how much we we're at in life this is how much we we're at in life this is how much we make this is how much we save this is make this is how much we save this is make this is how much we save this is how much we spend and really opening it how much we spend and really opening it how much we spend and really opening it up for everyone else to see and this up for everyone else to see and this up for everyone else to see and this it's a huge community I think I mean to it's a huge community I think I mean to it's a huge community I think I mean to the hunt to the tune of hundreds of the hunt to the tune of hundreds of the hunt to the tune of hundreds of thousands of people's in these subreddit thousands of people's in these subreddit thousands of people's in these subreddit communities and then here's the other communities and then here's the other communities and then here's the other thing that's really unique about thing that's really unique about thing that's really unique about Millennials that I discovered as we were Millennials that I discovered as we were Millennials that I discovered as we were doing some research they're known as the doing some research they're known as the doing some research they're known as the do-it-yourself generation mr. ha they do-it-yourself generation mr. ha they do-it-yourself generation mr. ha they feel like they can go out and reframe feel like they can go out and reframe feel like they can go out and reframe redefine what retirement even means what redefine what retirement even means what redefine what retirement even means what financial independence even means financial independence even means financial independence even means because anything they want to know they because anything they want to know they because anything they want to know they can go to YouTube figure out how to do can go to YouTube figure out how to do can go to YouTube figure out how to do it they try to do it themselves we'll it they try to do it themselves we'll it they try to do it themselves we'll talk a little bit more about that in a talk a little bit more about that in a talk a little bit more about that in a second and whether that's a good thing second and whether that's a good thing second and whether that's a good thing or bad thing and how we can kind of or bad thing and how we can kind of or bad thing and how we can kind of approach that and I think you told me approach that and I think you told me approach that and I think you told me this and I thought it was so great and I this and I thought it was so great and I this and I thought it was so great and I said well Gabe if you could distill said well Gabe if you could distill said well Gabe if you could distill Vicky's robit Vicki Robbins book down Vicky's robit Vicki Robbins book down Vicky's robit Vicki Robbins book down into like one idea or one concept or into like one idea or one concept or into like one idea or one concept or give me like one really easy example give me like one really easy example give me like one really easy example what would that be to help me kind of what would that be to help me kind of what would that be to help me kind of grasp what your money your life is about grasp what your money your life is about grasp what your money your life is about yeah it's really defining what your yeah it's really defining what your yeah it's really defining what your time's worth and what you're willing to time's worth and what you're willing to time's worth and what you're willing to sacrifice your time for in exchange for sacrifice your time for in exchange for sacrifice your time for in exchange for money material goods possessions or just money material goods possessions or just money material goods possessions or just experiences general so that's the real experiences general so that's the real experiences general so that's the real thing that we were looking at you know thing that we were looking at you know thing that we were looking at you know and not to simplify things too much but and not to simplify things too much but and not to simplify things too much but a lot of people are really getting out a lot of people are really getting out a lot of people are really getting out on the ledge but the things are willing on the ledge but the things are willing on the ledge but the things are willing to cut back on and like you mentioned to cut back on and like you mentioned to cut back on and like you mentioned with YouTube yep the things are willing with YouTube yep the things are willing with YouTube yep the things are willing to fix and you I think you had said this to fix and you I think you had said this to fix and you I think you had said this and then I can remember view came up and then I can remember view came up and then I can remember view came up with this I'm gonna give you credit for with this I'm gonna give you credit for with this I'm gonna give you credit for it you may have just ripped it from it you may have just ripped it from it you may have just ripped it from Vicki if you did that's cool Vicki we're Vicki if you did that's cool Vicki we're Vicki if you did that's cool Vicki we're so sorry we're ripping this from you so sorry we're ripping this from you so sorry we're ripping this from you but it was like if you make $ a day but it was like if you make $ a day but it was like if you make $ a day right right and you want to go by $ right right and you want to go by $ right right and you want to go by $ pair of shoes is that pair of shoes pair of shoes is that pair of shoes pair of shoes is that pair of shoes worth one third of your day I think worth one third of your day I think worth one third of your day I think that's the way you framed it - that's that's the way you framed it - that's that's the way you framed it - that's right yep yep so and for everyone that right yep yep so and for everyone that right yep yep so and for everyone that answer might be a little bit different answer might be a little bit different answer might be a little bit different because you might see a bigger utility because you might see a bigger utility because you might see a bigger utility out of the shoe than the next person in out of the shoe than the next person in out of the shoe than the next person in line right so $ pair of shoes might line right so $ pair of shoes might line right so $ pair of shoes might last you sitting in an office right last you sitting in an office right last you sitting in an office right you're your regular tennis shoes or you're your regular tennis shoes or you're your regular tennis shoes or because you do kind of wear shoes what's because you do kind of wear shoes what's because you do kind of wear shoes what's funny is okay yeah I am wearing shorts funny is okay yeah I am wearing shorts funny is okay yeah I am wearing shorts today because that's kind of what I do today because that's kind of what I do today because that's kind of what I do on podcast days you're not supposed to on podcast days you're not supposed to on podcast days you're not supposed to like double take when you look down to like double take when you look down to like double take when you look down to see my shorts to be fair there are nice see my shorts to be fair there are nice see my shorts to be fair there are nice dress shoes but they have the tennis dress shoes but they have the tennis dress shoes but they have the tennis shoes sole yeah but those shoes might shoes sole yeah but those shoes might shoes sole yeah but those shoes might last six seven years maybe if you take last six seven years maybe if you take last six seven years maybe if you take good care of them only wear them at work good care of them only wear them at work good care of them only wear them at work and special occasions and so maybe it and special occasions and so maybe it and special occasions and so maybe it does make sense for you to trade that does make sense for you to trade that does make sense for you to trade that hundred dollars or a third of a workday hundred dollars or a third of a workday hundred dollars or a third of a workday you know for your pair of shoes but if you know for your pair of shoes but if you know for your pair of shoes but if you're someone who's replacing their you're someone who's replacing their you're someone who's replacing their shoes because you're in a chemical area shoes because you're in a chemical area shoes because you're in a chemical area or there's something that were that the or there's something that were that the or there's something that were that the lifespan of your typical shoe just lifespan of your typical shoe just lifespan of your typical shoe just doesn't last that long you probably doesn't last that long you probably doesn't last that long you probably shouldn't be looking at spending shouldn't be looking at spending shouldn't be looking at spending bucks a pop so it's when you think about bucks a pop so it's when you think about bucks a pop so it's when you think about how you consume how you use dollars how you consume how you use dollars how you consume how you use dollars you're assigning you're just being very you're assigning you're just being very you're assigning you're just being very strategic and how you're doing that and strategic and how you're doing that and strategic and how you're doing that and how you're approaching that that's right how you're approaching that that's right how you're approaching that that's right so okay so we know kind of what the fire so okay so we know kind of what the fire so okay so we know kind of what the fire movement is let's talk a little bit movement is let's talk a little bit movement is let's talk a little bit about the people who participate in and about the people who participate in and about the people who participate in and do it it's it's not all Millennials I do it it's it's not all Millennials I do it it's it's not all Millennials I want to put that out there because you want to put that out there because you want to put that out there because you know we have our money got families know we have our money got families know we have our money got families comprised of people as young as we have comprised of people as young as we have comprised of people as young as we have people in their mid teens that listen people in their mid teens that listen people in their mid teens that listen the show all the way to people well into the show all the way to people well into the show all the way to people well into their 's that listen to this show so their 's that listen to this show so their 's that listen to this show so it's a wide gamut and what I thought was it's a wide gamut and what I thought was it's a wide gamut and what I thought was really interesting is the fire movement really interesting is the fire movement really interesting is the fire movement is not solely concentrated to is not solely concentrated to is not solely concentrated to Millennials but there are some Millennials but there are some Millennials but there are some interesting stats about Millennials we interesting stats about Millennials we interesting stats about Millennials we want to share because they are the ones want to share because they are the ones want to share because they are the ones I think you've probably made it popular I think you've probably made it popular I think you've probably made it popular this there was an article in Fortune this there was an article in Fortune this there was an article in Fortune magazine this was back in January of magazine this was back in January of magazine this was back in January of last year and they just gave some last year and they just gave some last year and they just gave some interesting stats that I think fly in interesting stats that I think fly in interesting stats that I think fly in the face of what I would normally the face of what I would normally the face of what I would normally subscribe to millennial behavior subscribe to millennial behavior subscribe to millennial behavior one in six Millennials right so one in one in six Millennials right so one in one in six Millennials right so one in six have at least $, saved between six have at least $, saved between six have at least $, saved between IRAs ks checking and savings not bad IRAs ks checking and savings not bad IRAs ks checking and savings not bad that's sort of unbelievable because we that's sort of unbelievable because we that's sort of unbelievable because we know that know that know that there was a go banking rates article there was a go banking rates article there was a go banking rates article that found and this was in January of that found and this was in January of that found and this was in January of last year percent of all Americans last year percent of all Americans last year percent of all Americans would you look at the entire American would you look at the entire American would you look at the entire American population can't come up with a thousand population can't come up with a thousand population can't come up with a thousand dollars for an emergency right now dollars for an emergency right now dollars for an emergency right now yeah and again the negative connotation yeah and again the negative connotation yeah and again the negative connotation that the millennial generation gets from that the millennial generation gets from that the millennial generation gets from a financial perspective is that you a financial perspective is that you a financial perspective is that you normally might live with your parents a normally might live with your parents a normally might live with your parents a little longer but you might wait a little longer but you might wait a little longer but you might wait a little longer to get married you might little longer to get married you might little longer to get married you might delay that house purchase or whatever it delay that house purchase or whatever it delay that house purchase or whatever it might be or you might just be just might be or you might just be just might be or you might just be just drowning in student loan debt what we're drowning in student loan debt what we're drowning in student loan debt what we're seeing from a statistical standpoint seeing from a statistical standpoint seeing from a statistical standpoint once some of these surveys are actually once some of these surveys are actually once some of these surveys are actually starting to have some measurable data starting to have some measurable data starting to have some measurable data behind them is that Millennials are behind them is that Millennials are behind them is that Millennials are actually really good financial decision actually really good financial decision actually really good financial decision makers and willing to carry the load makers and willing to carry the load makers and willing to carry the load that is required to be financially that is required to be financially that is required to be financially successful right so the it so maybe successful right so the it so maybe successful right so the it so maybe their behavior is a little bit different their behavior is a little bit different their behavior is a little bit different or maybe the way that they're reacting or maybe the way that they're reacting or maybe the way that they're reacting to the way that the that common public to the way that the that common public to the way that the that common public perceives their behavior what they're perceives their behavior what they're perceives their behavior what they're doing with that is a little bit doing with that is a little bit doing with that is a little bit different right and just setting them up different right and just setting them up different right and just setting them up on some really unique foundational on some really unique foundational on some really unique foundational footing the statistics also that footing the statistics also that footing the statistics also that two-thirds of Millennials are planning two-thirds of Millennials are planning two-thirds of Millennials are planning to rely on their savings accounts for to rely on their savings accounts for to rely on their savings accounts for retirement that's in contrast percent retirement that's in contrast percent retirement that's in contrast percent of Generation Xers are gonna rely on of Generation Xers are gonna rely on of Generation Xers are gonna rely on their ks and a majority of baby their ks and a majority of baby their ks and a majority of baby boomers say they're gonna rely on sole boomers say they're gonna rely on sole boomers say they're gonna rely on sole securities and pensions to pay for otama securities and pensions to pay for otama securities and pensions to pay for otama so even when Millennials think about so even when Millennials think about so even when Millennials think about retirement they're not thinking about retirement they're not thinking about retirement they're not thinking about ks is the thing that are gonna bridge ks is the thing that are gonna bridge ks is the thing that are gonna bridge the gap for retirement for that or even the gap for retirement for that or even the gap for retirement for that or even thinking about pensions of the thing thinking about pensions of the thing thinking about pensions of the thing that's gonna solve the problem for them that's gonna solve the problem for them that's gonna solve the problem for them yeah definitely not pensions and in fact yeah definitely not pensions and in fact yeah definitely not pensions and in fact not a lot of Social Security not a lot not a lot of Social Security not a lot not a lot of Social Security not a lot of Millennials think so Social Security of Millennials think so Social Security of Millennials think so Social Security will be around in the way that we're will be around in the way that we're will be around in the way that we're accumulating assets might be might not accumulating assets might be might not accumulating assets might be might not be the traditional way that a gen Xer be the traditional way that a gen Xer be the traditional way that a gen Xer would accumulate assets so sure the would accumulate assets so sure the would accumulate assets so sure the K is probably happening but they're K is probably happening but they're K is probably happening but they're probably assets that are being set aside probably assets that are being set aside probably assets that are being set aside maybe in a savings account for that maybe in a savings account for that maybe in a savings account for that special purchase like a new car or a special purchase like a new car or a special purchase like a new car or a house or just sitting in a taxable house or just sitting in a taxable house or just sitting in a taxable account for general investing for account for general investing for account for general investing for whatever life looks like at so whatever life looks like at so whatever life looks like at so immediately my money guy spidey-senses immediately my money guy spidey-senses immediately my money guy spidey-senses start going off when I think about okay start going off when I think about okay start going off when I think about okay well these Millennials and you know I well these Millennials and you know I well these Millennials and you know I didn't hear us say like Roth IRAs or didn't hear us say like Roth IRAs or didn't hear us say like Roth IRAs or ks are taking advantage so promise me ks are taking advantage so promise me ks are taking advantage so promise me that we're gonna talk about if you are that we're gonna talk about if you are that we're gonna talk about if you are going to pursue this however how do you going to pursue this however how do you going to pursue this however how do you still be a fire person but not not give still be a fire person but not not give still be a fire person but not not give up some like financial like how do you up some like financial like how do you up some like financial like how do you still follow the money guy order opera still follow the money guy order opera still follow the money guy order opera and be a fire person because I think and be a fire person because I think and be a fire person because I think you're gonna propose that that's still you're gonna propose that that's still you're gonna propose that that's still possible right it is and you really do possible right it is and you really do possible right it is and you really do have to look at the order of operations have to look at the order of operations have to look at the order of operations and where you're at in life so if you're and where you're at in life so if you're and where you're at in life so if you're still in that high-paying job you're still in that high-paying job you're still in that high-paying job you're making six figures maybe you're making making six figures maybe you're making making six figures maybe you're making high double digits and you're single high double digits and you're single high double digits and you're single you're not married so you still need to you're not married so you still need to you're not married so you still need to be reaping the tax rewards that are be reaping the tax rewards that are be reaping the tax rewards that are available to you today because they're available to you today because they're available to you today because they're super beneficial so and so the way that super beneficial so and so the way that super beneficial so and so the way that you accumulate maxing out the ks you accumulate maxing out the ks you accumulate maxing out the ks taking advantage of the Roth IRA we're taking advantage of the Roth IRA we're taking advantage of the Roth IRA we're eligible you know it's all gonna eligible you know it's all gonna eligible you know it's all gonna compound and grow for you through time compound and grow for you through time compound and grow for you through time so that you're maximizing things now so that you're maximizing things now so that you're maximizing things now when you're at maybe the top end of that when you're at maybe the top end of that when you're at maybe the top end of that ladder on the tax bracket sign of things ladder on the tax bracket sign of things ladder on the tax bracket sign of things remember you want to spend as little remember you want to spend as little remember you want to spend as little time as possible at the top right and as time as possible at the top right and as time as possible at the top right and as much time as possible down at the bottom much time as possible down at the bottom much time as possible down at the bottom when strategizing for your retirement when strategizing for your retirement when strategizing for your retirement savings so so accumulation take the tax savings so so accumulation take the tax savings so so accumulation take the tax benefits because you're probably in that benefits because you're probably in that benefits because you're probably in that high-income type of situation and then high-income type of situation and then high-income type of situation and then once you do retire early or maybe you once you do retire early or maybe you once you do retire early or maybe you start working part-time then the start working part-time then the start working part-time then the opportunity presents itself to start opportunity presents itself to start opportunity presents itself to start maybe shifting the way that you're maybe shifting the way that you're maybe shifting the way that you're receiving income while you're in those receiving income while you're in those receiving income while you're in those lower rungs yep and you said something a lower rungs yep and you said something a lower rungs yep and you said something a second ago in terms of like Millennials second ago in terms of like Millennials second ago in terms of like Millennials the thing that we always hear like to the thing that we always hear like to the thing that we always hear like to joke about Millennials is you know they joke about Millennials is you know they joke about Millennials is you know they go off to college they come back and go off to college they come back and go off to college they come back and they go back into their parents they go back into their parents they go back into their parents basements and in right % of basements and in right % of basements and in right % of adults aged to were married and adults aged to were married and adults aged to were married and living in their own household right so living in their own household right so living in their own household right so to that's squared the millennial to that's squared the millennial to that's squared the millennial face % in you know let's go back face % in you know let's go back face % in you know let's go back years that number was percent years that number was percent years that number was percent of folks to were married and of folks to were married and of folks to were married and living outside the household that might living outside the household that might living outside the household that might have something to do with the value have something to do with the value have something to do with the value system it might be something to do with system it might be something to do with system it might be something to do with just the cost of college maybe just the cost of college maybe just the cost of college maybe recuperating some of those costs that recuperating some of those costs that recuperating some of those costs that you kind of put out there on the front you kind of put out there on the front you kind of put out there on the front end or might just be a pure saving end or might just be a pure saving end or might just be a pure saving strategy because how much could you strategy because how much could you strategy because how much could you accumulate just in your Roth or your accumulate just in your Roth or your accumulate just in your Roth or your k or what are the things you could do k or what are the things you could do k or what are the things you could do if you didn't pay for rent a mortgage if you didn't pay for rent a mortgage if you didn't pay for rent a mortgage your groceries show all of your your groceries show all of your your groceries show all of your groceries maybe you still buy a nice groceries maybe you still buy a nice groceries maybe you still buy a nice meal out here and there but think if you meal out here and there but think if you meal out here and there but think if you could save that two thousand three could save that two thousand three could save that two thousand three thousand dollars a month it adds up thousand dollars a month it adds up thousand dollars a month it adds up really quick know and I'm with you now really quick know and I'm with you now really quick know and I'm with you now again I'm sitting here thinking because again I'm sitting here thinking because again I'm sitting here thinking because you and I both have young children and you and I both have young children and you and I both have young children and I'm like man do I do I want to be part I'm like man do I do I want to be part I'm like man do I do I want to be part of my my kids financial independence or of my my kids financial independence or of my my kids financial independence or our early movement but our early movement but our early movement but I'm just letting him stay in the house I'm just letting him stay in the house I'm just letting him stay in the house and save all their money while I'm and save all their money while I'm and save all their money while I'm subsidizing is it reciprocating back - subsidizing is it reciprocating back - subsidizing is it reciprocating back - yeah I guess I guess that'd be the yeah I guess I guess that'd be the yeah I guess I guess that'd be the ultimate question because then that's ultimate question because then that's ultimate question because then that's come you how do you balance having a come you how do you balance having a come you how do you balance having a fire child versus having an economic fire child versus having an economic fire child versus having an economic outpatient parent like how do you marry outpatient parent like how do you marry outpatient parent like how do you marry those those two ideas I thought this was those those two ideas I thought this was those those two ideas I thought this was interesting - and again it's just more interesting - and again it's just more interesting - and again it's just more of a behavioral thing the median age of of a behavioral thing the median age of of a behavioral thing the median age of married folks in the s was in married folks in the s was in married folks in the s was in it was so Millennials are also it was so Millennials are also it was so Millennials are also not only that they leaving the nest not only that they leaving the nest not only that they leaving the nest later yeah they're getting married later later yeah they're getting married later later yeah they're getting married later - for those that are getting married so - for those that are getting married so - for those that are getting married so that's an interesting thing and then you that's an interesting thing and then you that's an interesting thing and then you know I think that the common thought and know I think that the common thought and know I think that the common thought and this is what I think the wording is so this is what I think the wording is so this is what I think the wording is so interesting its financial independence interesting its financial independence interesting its financial independence retire early I think if the fire retire early I think if the fire retire early I think if the fire movement from my understanding if they movement from my understanding if they movement from my understanding if they could reword this they would have come could reword this they would have come could reword this they would have come up with something different because up with something different because up with something different because according to the stats we found % of according to the stats we found % of according to the stats we found % of Millennials who would participate in the Millennials who would participate in the Millennials who would participate in the fire movement expect to do some kind of fire movement expect to do some kind of fire movement expect to do some kind of work in retirement right right so you work in retirement right right so you work in retirement right right so you have to think about the attractiveness have to think about the attractiveness have to think about the attractiveness of the term fire right in the acronym of the term fire right in the acronym of the term fire right in the acronym that kind of generation because if I that kind of generation because if I that kind of generation because if I kind of had to peg it to what we see kind of had to peg it to what we see kind of had to peg it to what we see when we work with clients and the things when we work with clients and the things when we work with clients and the things that I plan for for our own household that I plan for for our own household that I plan for for our own household it's probably a lot longer acronym like it's probably a lot longer acronym like it's probably a lot longer acronym like financial independence to do what I want financial independence to do what I want financial independence to do what I want when I want and I'm only working for fun when I want and I'm only working for fun when I want and I'm only working for fun and because I enjoy it and you know and because I enjoy it and you know and because I enjoy it and you know you've already lost me trying to sound you've already lost me trying to sound you've already lost me trying to sound out yeah so fire sounds a lot better out yeah so fire sounds a lot better out yeah so fire sounds a lot better fire sounds a lot better but I do think fire sounds a lot better but I do think fire sounds a lot better but I do think that's that's interesting because and I that's that's interesting because and I that's that's interesting because and I think that's gonna be a lot about what think that's gonna be a lot about what think that's gonna be a lot about what we're talking about financial it appends we're talking about financial it appends we're talking about financial it appends is one thing retire early is a whole is one thing retire early is a whole is one thing retire early is a whole different thing and maybe that misses different thing and maybe that misses different thing and maybe that misses the mark a little bit I thought this was the mark a little bit I thought this was the mark a little bit I thought this was interesting I never I did not know this interesting I never I did not know this interesting I never I did not know this the mill the millennial generation now the mill the millennial generation now the mill the millennial generation now represents the largest portion of the US represents the largest portion of the US represents the largest portion of the US workforce according to Pew Research yeah workforce according to Pew Research yeah workforce according to Pew Research yeah that's crazy to think about so this is that's crazy to think about so this is that's crazy to think about so this is just something I want you guys to kind just something I want you guys to kind just something I want you guys to kind of postulate after the money guy of postulate after the money guy of postulate after the money guy audience if if the largest segment of audience if if the largest segment of audience if if the largest segment of the working force right now is the the working force right now is the the working force right now is the Millennial Generation and they're also a Millennial Generation and they're also a Millennial Generation and they're also a segment that's talking about exiting the segment that's talking about exiting the segment that's talking about exiting the workforce early what does that mean workforce early what does that mean workforce early what does that mean ultimately for a capitalistic economy ultimately for a capitalistic economy ultimately for a capitalistic economy what does that ultimately mean for the what does that ultimately mean for the what does that ultimately mean for the country we'll kind of talk a little bit country we'll kind of talk a little bit country we'll kind of talk a little bit about that as well about that as well about that as well but I think it's important right where but I think it's important right where but I think it's important right where he said not all fire participants are he said not all fire participants are he said not all fire participants are Millennials so we said okay if we Millennials so we said okay if we Millennials so we said okay if we think about the clients that we work think about the clients that we work think about the clients that we work with the folks that we get to see who with the folks that we get to see who with the folks that we get to see who fall into this and just as well as the fall into this and just as well as the fall into this and just as well as the research we've done what are some common research we've done what are some common research we've done what are some common traits amongst fire participants what traits amongst fire participants what traits amongst fire participants what are some things that they do here's are some things that they do here's are some things that they do here's here's one that I thought was sort of here's one that I thought was sort of here's one that I thought was sort of across the board they tend to be across the board they tend to be across the board they tend to be successful high income earners who are successful high income earners who are successful high income earners who are analytical by nature I'm gonna I'm gonna analytical by nature I'm gonna I'm gonna analytical by nature I'm gonna I'm gonna paraphrase this they're already paraphrase this they're already paraphrase this they're already spreadsheet people is that true I think spreadsheet people is that true I think spreadsheet people is that true I think so yep some of the spreadsheets that so yep some of the spreadsheets that so yep some of the spreadsheets that I've seen from clients they're kind of I've seen from clients they're kind of I've seen from clients they're kind of involved probably a little deeper than involved probably a little deeper than involved probably a little deeper than what's actually necessary but if that's what's actually necessary but if that's what's actually necessary but if that's what kind of gets them going and that's what kind of gets them going and that's what kind of gets them going and that's what they enjoy doing and it's what what they enjoy doing and it's what what they enjoy doing and it's what keeps them motivated and on track then I keeps them motivated and on track then I keeps them motivated and on track then I can't really fall but what's interesting can't really fall but what's interesting can't really fall but what's interesting it's not folks that are what you know it's not folks that are what you know it's not folks that are what you know it's when I think about financial it's when I think about financial it's when I think about financial independence or tirely I'm thinking independence or tirely I'm thinking independence or tirely I'm thinking about the folks who just kind of want to about the folks who just kind of want to about the folks who just kind of want to be flighty and go float around and like be flighty and go float around and like be flighty and go float around and like hang out in in like the grass these are hang out in in like the grass these are hang out in in like the grass these are like smart analytical high skilled folks like smart analytical high skilled folks like smart analytical high skilled folks who generally participate in this who generally participate in this who generally participate in this movement yeah and from a bunch of movement yeah and from a bunch of movement yeah and from a bunch of different professions so software different professions so software different professions so software engineers pharmacists yeah yeah I think engineers pharmacists yeah yeah I think engineers pharmacists yeah yeah I think like in the tech business huh there's a like in the tech business huh there's a like in the tech business huh there's a lot of P startup folks consultants they lot of P startup folks consultants they lot of P startup folks consultants they are generally committed when you think are generally committed when you think are generally committed when you think about folks who do the financial about folks who do the financial about folks who do the financial independence or Tyler movement they're independence or Tyler movement they're independence or Tyler movement they're generally committed to saving percent generally committed to saving percent generally committed to saving percent or more of their income now I think we or more of their income now I think we or more of their income now I think we have to just pause on that for a second have to just pause on that for a second have to just pause on that for a second these folks save percent if you've these folks save percent if you've these folks save percent if you've listened to us or any number of time you listened to us or any number of time you listened to us or any number of time you know that we tell you if you want to be know that we tell you if you want to be know that we tell you if you want to be on track for financial independence your on track for financial independence your on track for financial independence your goal should be to save to percent goal should be to save to percent goal should be to save to percent of your gross income that's the money of your gross income that's the money of your gross income that's the money guy prescription that will lead you to guy prescription that will lead you to guy prescription that will lead you to success if you start early if you start success if you start early if you start success if you start early if you start later if to make it up these fire folks later if to make it up these fire folks later if to make it up these fire folks come out of the gate shooting for a % come out of the gate shooting for a % come out of the gate shooting for a % savings rate savings rate savings rate yeah incident that requires a lot of yeah incident that requires a lot of yeah incident that requires a lot of sacrifice either a really high income sacrifice either a really high income sacrifice either a really high income sure that saving percent still allows sure that saving percent still allows sure that saving percent still allows you to have the luxury that you're you to have the luxury that you're you to have the luxury that you're looking for or you have to make looking for or you have to make looking for or you have to make sacrifices somewhere yep and so there sacrifices somewhere yep and so there sacrifices somewhere yep and so there are a number of different ways to do are a number of different ways to do are a number of different ways to do that whether that subscription services that whether that subscription services that whether that subscription services the amount of times you wash your the amount of times you wash your the amount of times you wash your clothes oh yeah we'll talk about that clothes oh yeah we'll talk about that clothes oh yeah we'll talk about that one in a second but tell me as I like one in a second but tell me as I like one in a second but tell me as I like turn it inside out and wear it again is turn it inside out and wear it again is turn it inside out and wear it again is that the practice here is that by that the practice here is that by that the practice here is that by forcing yourself to save such a large forcing yourself to save such a large forcing yourself to save such a large percentage of your income it kind of percentage of your income it kind of percentage of your income it kind of requires you to live on requires you to live on requires you to live on okay you really kind of figure out what okay you really kind of figure out what okay you really kind of figure out what life looks like on the bare essentials life looks like on the bare essentials life looks like on the bare essentials okay so and that's another thing I think okay so and that's another thing I think okay so and that's another thing I think we're gonna talk about is a lot of the we're gonna talk about is a lot of the we're gonna talk about is a lot of the fire movement is not getting caught in fire movement is not getting caught in fire movement is not getting caught in excesses just staying down the bare excesses just staying down the bare excesses just staying down the bare necessity need another common trait of necessity need another common trait of necessity need another common trait of fire folks and we we we got lost for fire folks and we we we got lost for fire folks and we we we got lost for like an hour going through this one sure like an hour going through this one sure like an hour going through this one sure they prefer to do it yourself for they prefer to do it yourself for they prefer to do it yourself for anything and everything you can because anything and everything you can because anything and everything you can because one of the things I want to do is they one of the things I want to do is they one of the things I want to do is they want to keep costs as low as possible want to keep costs as low as possible want to keep costs as low as possible living expense as low as possible living expense as low as possible living expense as low as possible so as such they choose to do DIY so as such they choose to do DIY so as such they choose to do DIY anything and everything they can now I anything and everything they can now I anything and everything they can now I don't know that you would call yourself don't know that you would call yourself don't know that you would call yourself a fire person necessarily however this a fire person necessarily however this a fire person necessarily however this describes you in my opinion yeah to all describes you in my opinion yeah to all describes you in my opinion yeah to all of our clients out there we're not of our clients out there we're not of our clients out there we're not planning on going anywhere I think I can planning on going anywhere I think I can planning on going anywhere I think I can speak for both of us there's no speak for both of us there's no speak for both of us there's no intention to retire early but I'm not intention to retire early but I'm not intention to retire early but I'm not gonna pay the air-conditioner guy like gonna pay the air-conditioner guy like gonna pay the air-conditioner guy like , bucks to replace a little motor , bucks to replace a little motor , bucks to replace a little motor thingy that I can buy on Amazon for $ thingy that I can buy on Amazon for $ thingy that I can buy on Amazon for $ and I learned how to replace it like and I learned how to replace it like and I learned how to replace it like minutes on YouTube so no so I'm gonna minutes on YouTube so no so I'm gonna minutes on YouTube so no so I'm gonna look it more for it cuz that okay is look it more for it cuz that okay is look it more for it cuz that okay is that terrifies me so I think about my that terrifies me so I think about my that terrifies me so I think about my air conditioner right cuz I know I don't air conditioner right cuz I know I don't air conditioner right cuz I know I don't know if you guys have been there before know if you guys have been there before know if you guys have been there before but middle of the summer we live down but middle of the summer we live down but middle of the summer we live down here in the south here in the south here in the south it gets hot your a/c goes out and you're it gets hot your a/c goes out and you're it gets hot your a/c goes out and you're like sweating and you got your wife's like sweating and you got your wife's like sweating and you got your wife's wet and your kids are crying and wet and your kids are crying and wet and your kids are crying and screaming at you and all that stuff's screaming at you and all that stuff's screaming at you and all that stuff's going on I don't know that I'm willing going on I don't know that I'm willing going on I don't know that I'm willing to risk taking apart that thing or a to risk taking apart that thing or a to risk taking apart that thing or a place in that motor that scares me but place in that motor that scares me but place in that motor that scares me but you say you feel perfectly comfortable you say you feel perfectly comfortable you say you feel perfectly comfortable going in and doing that and making that going in and doing that and making that going in and doing that and making that repair no problem well we're the repair no problem well we're the repair no problem well we're the disclaimer so it was a Saturday like two disclaimer so it was a Saturday like two disclaimer so it was a Saturday like two Saturdays ago in the AC just blew out so Saturdays ago in the AC just blew out so Saturdays ago in the AC just blew out so there was a there was a way I knew I was there was a there was a way I knew I was there was a there was a way I knew I was like okay there's maybe a few checks like okay there's maybe a few checks like okay there's maybe a few checks that I can do without pulling open the that I can do without pulling open the that I can do without pulling open the guts of this system and I'm not an guts of this system and I'm not an guts of this system and I'm not an electric electrician electro electric electric electrician electro electric electric electrician electro electric Olinda near by any stretch so I wasn't Olinda near by any stretch so I wasn't Olinda near by any stretch so I wasn't about to touch any wires or do anything about to touch any wires or do anything about to touch any wires or do anything like that like that like that I couldn't diagnose it and my family had I couldn't diagnose it and my family had I couldn't diagnose it and my family had to get out of the house cuz it was to get out of the house cuz it was to get out of the house cuz it was getting up to like the mid s really getting up to like the mid s really getting up to like the mid s really fast right and so I did I paid the fast right and so I did I paid the fast right and so I did I paid the convenience charge the extra surcharge convenience charge the extra surcharge convenience charge the extra surcharge to come out on a Saturday okay and it to come out on a Saturday okay and it to come out on a Saturday okay and it was a little switch you know in was a little switch you know in was a little switch you know in hindsight is twenty-twenty five knew it hindsight is twenty-twenty five knew it hindsight is twenty-twenty five knew it was a switch I probably wouldn't yeah was a switch I probably wouldn't yeah was a switch I probably wouldn't yeah okay but I didn't have the expertise to okay but I didn't have the expertise to okay but I didn't have the expertise to go Tesla on the electrical circuits you go Tesla on the electrical circuits you go Tesla on the electrical circuits you know it's one thing that's really know it's one thing that's really know it's one thing that's really interesting is I think about like folks interesting is I think about like folks interesting is I think about like folks who do the funny who do the funny who do the funny so the fire movement they started really so the fire movement they started really so the fire movement they started really early right so these folks did in their early right so these folks did in their early right so these folks did in their s and s that say I want to exit s and s that say I want to exit s and s that say I want to exit early they create some some behaviors early they create some some behaviors early they create some some behaviors early on I'll use DIY as an example I'm early on I'll use DIY as an example I'm early on I'll use DIY as an example I'm gonna I'm gonna kind of self-professed I gonna I'm gonna kind of self-professed I gonna I'm gonna kind of self-professed I used to always do all of my yard work I used to always do all of my yard work I used to always do all of my yard work I have a fantastic neighbor he and I would have a fantastic neighbor he and I would have a fantastic neighbor he and I would make a Saturday up we go get some mulch make a Saturday up we go get some mulch make a Saturday up we go get some mulch we'd spread it ourselves we'd load up we'd spread it ourselves we'd load up we'd spread it ourselves we'd load up his pickup truck we'd do that and it was his pickup truck we'd do that and it was his pickup truck we'd do that and it was kind of fun but now that I've got kids kind of fun but now that I've got kids kind of fun but now that I've got kids and in the weekend time is so valuable and in the weekend time is so valuable and in the weekend time is so valuable it's really hard for me to justify going it's really hard for me to justify going it's really hard for me to justify going and doing all that where I can actually and doing all that where I can actually and doing all that where I can actually just have some guys show up a mulch and just have some guys show up a mulch and just have some guys show up a mulch and spread it and I can save saviors of my spread it and I can save saviors of my spread it and I can save saviors of my life life life does that completely disqualify me from does that completely disqualify me from does that completely disqualify me from being a fire person because of that no I being a fire person because of that no I being a fire person because of that no I think it actually ties back in nicely to think it actually ties back in nicely to think it actually ties back in nicely to one of the key parts of being in the one of the key parts of being in the one of the key parts of being in the fire movement or at least controlling fire movement or at least controlling fire movement or at least controlling your money is that you have to identify your money is that you have to identify your money is that you have to identify what your time's worth and what you what your time's worth and what you what your time's worth and what you should spend your time on so it might should spend your time on so it might should spend your time on so it might have actually made sense for you if it have actually made sense for you if it have actually made sense for you if it wasn't cost prohibitive to go out hire wasn't cost prohibitive to go out hire wasn't cost prohibitive to go out hire that person to come in and do that thing that person to come in and do that thing that person to come in and do that thing right so that you want to spend your right so that you want to spend your right so that you want to spend your time doing it because your time is more time doing it because your time is more time doing it because your time is more valuable doing other things and spending valuable doing other things and spending valuable doing other things and spending it with your family and here's what's it with your family and here's what's it with your family and here's what's really interesting I think you know in really interesting I think you know in really interesting I think you know in when I was in my s my time wasn't more when I was in my s my time wasn't more when I was in my s my time wasn't more valuable than that and now my time is valuable than that and now my time is valuable than that and now my time is more valuable in that it's interesting I more valuable in that it's interesting I more valuable in that it's interesting I just again and we'll kind of talk about just again and we'll kind of talk about just again and we'll kind of talk about this a little bit in a second what do this a little bit in a second what do this a little bit in a second what do you think about these folks who are you think about these folks who are you think about these folks who are retiring for like and years that retiring for like and years that retiring for like and years that the vet not the time value of money but the vet not the time value of money but the vet not the time value of money but the money value of time I just made that the money value of time I just made that the money value of time I just made that up changes over time right like so it up changes over time right like so it up changes over time right like so it changes as you so if you if you make a changes as you so if you if you make a changes as you so if you if you make a plan that works when you're years old plan that works when you're years old plan that works when you're years old there are some pitfalls you have to make there are some pitfalls you have to make there are some pitfalls you have to make sure still that you don't fall into and sure still that you don't fall into and sure still that you don't fall into and you're years old right right you're years old right right you're years old right right inflation is the easiest thing to throw inflation is the easiest thing to throw inflation is the easiest thing to throw out there is you don't know what life's out there is you don't know what life's out there is you don't know what life's gonna look like at but you also don't gonna look like at but you also don't gonna look like at but you also don't know what you want your lifestyle look know what you want your lifestyle look know what you want your lifestyle look like at because there's a lot of life like at because there's a lot of life like at because there's a lot of life that will happen from the time you're that will happen from the time you're that will happen from the time you're until you're sure until you're sure until you're sure so figuring out how to adjust so figuring out how to adjust so figuring out how to adjust accordingly as you go through that time accordingly as you go through that time accordingly as you go through that time period maybe it does mean going back to period maybe it does mean going back to period maybe it does mean going back to work or maybe you don't do as many trips work or maybe you don't do as many trips work or maybe you don't do as many trips so that you can have the life you want so that you can have the life you want so that you can have the life you want to do later down the road depending on to do later down the road depending on to do later down the road depending on what your spending does to your overall what your spending does to your overall what your spending does to your overall savings accounts and you would also put savings accounts and you would also put savings accounts and you would also put this and you've said this a few times this and you've said this a few times this and you've said this a few times fire folks they only buy necessities fire folks they only buy necessities fire folks they only buy necessities your money or your life Vicky's book your money or your life Vicky's book your money or your life Vicky's book talks about lower cost of lifestyle that talks about lower cost of lifestyle that talks about lower cost of lifestyle that requires less maintenance and one of the requires less maintenance and one of the requires less maintenance and one of the beautiful side effects of doing that is beautiful side effects of doing that is beautiful side effects of doing that is it does allow you to avoid lifestyle it does allow you to avoid lifestyle it does allow you to avoid lifestyle creep yes and I think you even said you creep yes and I think you even said you creep yes and I think you even said you have some clients so you say do this to have some clients so you say do this to have some clients so you say do this to a tee do this perfectly there are a tee do this perfectly there are a tee do this perfectly there are clients that have like specific rules on clients that have like specific rules on clients that have like specific rules on their thermostat and they'll say you their thermostat and they'll say you their thermostat and they'll say you have to fall into all of these things have to fall into all of these things have to fall into all of these things before you can adjust the heat setting before you can adjust the heat setting before you can adjust the heat setting in the winter so like do you have a in the winter so like do you have a in the winter so like do you have a sweater on sweater on sweater on have you put socks on you have a have you put socks on you have a have you put socks on you have a sweatshirt you know a blanket whatever sweatshirt you know a blanket whatever sweatshirt you know a blanket whatever if you answered yes do you pay the bills if you answered yes do you pay the bills if you answered yes do you pay the bills in the household that's a big one oh man in the household that's a big one oh man in the household that's a big one oh man I just met one I wouldn't I would never I just met one I wouldn't I would never I just met one I wouldn't I would never said it to my wife but I just imagine said it to my wife but I just imagine said it to my wife but I just imagine one day looking at my little girls and one day looking at my little girls and one day looking at my little girls and telling them that and they're like daddy telling them that and they're like daddy telling them that and they're like daddy no you better go turn that AC down no you better go turn that AC down no you better go turn that AC down there's something about having kids in there's something about having kids in there's something about having kids in my opinion and we don't pay as much my opinion and we don't pay as much my opinion and we don't pay as much attention to that's any more I used to attention to that's any more I used to attention to that's any more I used to freak out about it I used to play a game freak out about it I used to play a game freak out about it I used to play a game to see how cold we could get it in the to see how cold we could get it in the to see how cold we could get it in the winter and how hot we could survive in winter and how hot we could survive in winter and how hot we could survive in the Sun just to keep the electric bill the Sun just to keep the electric bill the Sun just to keep the electric bill down yeah now it's like if it's an extra down yeah now it's like if it's an extra down yeah now it's like if it's an extra bucks not a big deal that's okay so bucks not a big deal that's okay so bucks not a big deal that's okay so here's something I want to talk about here's something I want to talk about here's something I want to talk about for a second because I did not I didn't for a second because I did not I didn't for a second because I did not I didn't know this so I think one of the things know this so I think one of the things know this so I think one of the things that I was trying to figure out I was that I was trying to figure out I was that I was trying to figure out I was going through this is all right who is going through this is all right who is going through this is all right who is fire who is not fire what is it how to fire who is not fire what is it how to fire who is not fire what is it how to fall into it there are actually fall into it there are actually fall into it there are actually different strains of the fire movement different strains of the fire movement different strains of the fire movement right right and I think we had distilled right right and I think we had distilled right right and I think we had distilled another four right so the very first one another four right so the very first one another four right so the very first one is regular fire what are the who are the is regular fire what are the who are the is regular fire what are the who are the regular fire folks yeah I think that regular fire folks yeah I think that regular fire folks yeah I think that again if you drop the re the retired again if you drop the re the retired again if you drop the re the retired early part off of is the who are the early part off of is the who are the early part off of is the who are the financially independent like motivated financially independent like motivated financially independent like motivated type of people those are the people that type of people those are the people that type of people those are the people that are willing to still have some of the are willing to still have some of the are willing to still have some of the creature comfort a day all right still creature comfort a day all right still creature comfort a day all right still go out to eat have a regular lifestyle go out to eat have a regular lifestyle go out to eat have a regular lifestyle but are very committed savers and don't but are very committed savers and don't but are very committed savers and don't really buy into like a fluffy or frothy really buy into like a fluffy or frothy really buy into like a fluffy or frothy lifestyle okay so that that's someone lifestyle okay so that that's someone lifestyle okay so that that's someone who might I would say fall into the the who might I would say fall into the the who might I would say fall into the the regular fire camp tonight so they're not regular fire camp tonight so they're not regular fire camp tonight so they're not like pinching every single penny but like pinching every single penny but like pinching every single penny but they also they are extreme savers they also they are extreme savers they also they are extreme savers they're probably gonna have that higher they're probably gonna have that higher they're probably gonna have that higher savings rate but they're not gonna be savings rate but they're not gonna be savings rate but they're not gonna be the folks who are trying to like make the folks who are trying to like make the folks who are trying to like make their own home soap that's right yeah their own home soap that's right yeah their own home soap that's right yeah they might actually still got to eat they might actually still got to eat they might actually still got to eat once a month okay twice a year so that's once a month okay twice a year so that's once a month okay twice a year so that's regular fire second strand of fire the regular fire second strand of fire the regular fire second strand of fire the we uncovered were the barista fires so we uncovered were the barista fires so we uncovered were the barista fires so these are the people that are probably these are the people that are probably these are the people that are probably looking at burnout in their career okay looking at burnout in their career okay looking at burnout in their career okay they have a high-stress job with that they have a high-stress job with that they have a high-stress job with that might come a high reward system but might come a high reward system but might come a high reward system but they're not in that ground don't want to they're not in that ground don't want to they're not in that ground don't want to be a part of that lifestyle for a very be a part of that lifestyle for a very be a part of that lifestyle for a very long time and so they're willing to long time and so they're willing to long time and so they're willing to maybe slow down what their working life maybe slow down what their working life maybe slow down what their working life looks like and have kind of a semi looks like and have kind of a semi looks like and have kind of a semi retirement yeah this one is one other retirement yeah this one is one other retirement yeah this one is one other thought was really interesting I did not thought was really interesting I did not thought was really interesting I did not realize this was part of the fire realize this was part of the fire realize this was part of the fire movement because we have a lot of movement because we have a lot of movement because we have a lot of clients who are very high earning been clients who are very high earning been clients who are very high earning been very successful and maybe they're very successful and maybe they're very successful and maybe they're working towards one big project or one working towards one big project or one working towards one big project or one big payout and they've actually done big payout and they've actually done big payout and they've actually done this very thing we have a client just this very thing we have a client just this very thing we have a client just recently who stepped away from a very recently who stepped away from a very recently who stepped away from a very lucrative job that he was incredibly lucrative job that he was incredibly lucrative job that he was incredibly successful at he said hey I wouldn't did successful at he said hey I wouldn't did successful at he said hey I wouldn't did two things because of where he listed I two things because of where he listed I two things because of where he listed I went to see if I could be a lifeguard on went to see if I could be a lifeguard on went to see if I could be a lifeguard on the beach because I thought that sounded the beach because I thought that sounded the beach because I thought that sounded awesome he cuz I've been driving uber awesome he cuz I've been driving uber awesome he cuz I've been driving uber and he says what's so funny is I'm and he says what's so funny is I'm and he says what's so funny is I'm drivin uber and I've got to get past drivin uber and I've got to get past drivin uber and I've got to get past like the the the social aspect of it but like the the the social aspect of it but like the the the social aspect of it but it's so fun it's just I get to meet it's so fun it's just I get to meet it's so fun it's just I get to meet people and do it and I don't think he people and do it and I don't think he people and do it and I don't think he would know that he's a member of the would know that he's a member of the would know that he's a member of the barista fire movement but that perfectly barista fire movement but that perfectly barista fire movement but that perfectly describes kind of where he is right now describes kind of where he is right now describes kind of where he is right now right and we do like I'm missing the right and we do like I'm missing the right and we do like I'm missing the pharmacist saying earlier there are pharmacist saying earlier there are pharmacist saying earlier there are clients that we work with who say hey clients that we work with who say hey clients that we work with who say hey I'm gonna do full-time right now I don't I'm gonna do full-time right now I don't I'm gonna do full-time right now I don't have kids I'm young early on I'm gonna have kids I'm young early on I'm gonna have kids I'm young early on I'm gonna just knock it out of the park just knock it out of the park just knock it out of the park yeah and then down the road I'm gonna go yeah and then down the road I'm gonna go yeah and then down the road I'm gonna go part-time sure and I'm gonna define my part-time sure and I'm gonna define my part-time sure and I'm gonna define my schedule and the intention there is I'll schedule and the intention there is I'll schedule and the intention there is I'll work from a living expense right work from a living expense right work from a living expense right whatever they are at the time and then whatever they are at the time and then whatever they are at the time and then when I'm ready to fully step away I've when I'm ready to fully step away I've when I'm ready to fully step away I've got all of these resources available to got all of these resources available to got all of these resources available to me that have been working for me since I me that have been working for me since I me that have been working for me since I was in my late twenties so it's not like was in my late twenties so it's not like was in my late twenties so it's not like a barista five thing for all of a barista five thing for all of a barista five thing for all of financial independence just for like the financial independence just for like the financial independence just for like the first stage so it's like almost like a first stage so it's like almost like a first stage so it's like almost like a stage to deal they're working in that's stage to deal they're working in that's stage to deal they're working in that's right yep and and they're slowly right yep and and they're slowly right yep and and they're slowly transitioning into retirement to really transitioning into retirement to really transitioning into retirement to really test the waters before they get there test the waters before they get there test the waters before they get there now this next one this is the one that I now this next one this is the one that I now this next one this is the one that I think of when I think of fire and you I think of when I think of fire and you I think of when I think of fire and you I think aptly called it frugal fire who think aptly called it frugal fire who think aptly called it frugal fire who are the frugal fire folks these are are the frugal fire folks these are are the frugal fire folks these are these are the guys that fall into the these are the guys that fall into the these are the guys that fall into the camp of potentially only running their camp of potentially only running their camp of potentially only running their dishwasher once a month or washing their dishwasher once a month or washing their dishwasher once a month or washing their bath towels every other week okay and bath towels every other week okay and bath towels every other week okay and see how far they can stretch it to save see how far they can stretch it to save see how far they can stretch it to save the energy cost associated with running the energy cost associated with running the energy cost associated with running the washer and dryer okay the washer and dryer okay the washer and dryer okay the water bill that the water bill that the water bill that with running the washing machine or the with running the washing machine or the with running the washing machine or the dishwasher you know they're willing to dishwasher you know they're willing to dishwasher you know they're willing to do the things to really batten down the do the things to really batten down the do the things to really batten down the hatches so to create as much as pause hatches so to create as much as pause hatches so to create as much as pause these are like I'm gonna throw some some these are like I'm gonna throw some some these are like I'm gonna throw some some tiny home folks maybe some folks who tiny home folks maybe some folks who tiny home folks maybe some folks who like subscribe to like the minimalism like subscribe to like the minimalism like subscribe to like the minimalism movement right that kind of thing and movement right that kind of thing and movement right that kind of thing and they're you know there's one that I'm they're you know there's one that I'm they're you know there's one that I'm thinking of right who's kind of the he thinking of right who's kind of the he thinking of right who's kind of the he was or maybe is her became the poster was or maybe is her became the poster was or maybe is her became the poster child for this type of fire person the child for this type of fire person the child for this type of fire person the the the one that did the foreword for the the one that did the foreword for the the one that did the foreword for the newly renovated and revised your the newly renovated and revised your the newly renovated and revised your money or life version that I read it was money or life version that I read it was money or life version that I read it was posed in mister money mustache I posed in mister money mustache I posed in mister money mustache I think when he started his journey he was think when he started his journey he was think when he started his journey he was a part of the frugal farm America I a part of the frugal farm America I a part of the frugal farm America I think that he still probably advised by think that he still probably advised by think that he still probably advised by a lot of those practices but I don't a lot of those practices but I don't a lot of those practices but I don't know that I would necessarily say that know that I would necessarily say that know that I would necessarily say that he's fully retired right right right he's fully retired right right right he's fully retired right right right because he's do it this is now let into because he's do it this is now let into because he's do it this is now let into a whole different career opportunities a whole different career opportunities a whole different career opportunities another thing that we're gonna talk another thing that we're gonna talk another thing that we're gonna talk about that we think is maybe a better about that we think is maybe a better about that we think is maybe a better way to think about fire I think mister way to think about fire I think mister way to think about fire I think mister money mustache is actually in fact done money mustache is actually in fact done money mustache is actually in fact done that thing with gift out without that thing with gift out without that thing with gift out without realizing that and then here's the last realizing that and then here's the last realizing that and then here's the last one I'll take this one one I'll take this one one I'll take this one because I think this one is the fun one because I think this one is the fun one because I think this one is the fun one that I did not know about so we research that I did not know about so we research that I did not know about so we research of this these are the fad fire folks did of this these are the fad fire folks did of this these are the fad fire folks did you did you know about fat fire I had no you did you know about fat fire I had no you did you know about fat fire I had no idea this was a thing so these are those idea this was a thing so these are those idea this was a thing so these are those folks who desire more more who save more folks who desire more more who save more folks who desire more more who save more more quickly so they can have a higher more quickly so they can have a higher more quickly so they can have a higher standard of living in retirement that standard of living in retirement that standard of living in retirement that frugal fire this is for entrepreneurs frugal fire this is for entrepreneurs frugal fire this is for entrepreneurs high income professionals that choose high income professionals that choose high income professionals that choose not to choose not shoot to choose not to not to choose not shoot to choose not to not to choose not shoot to choose not to fully embrace frugality so that they can fully embrace frugality so that they can fully embrace frugality so that they can enjoy a higher standard of living in enjoy a higher standard of living in enjoy a higher standard of living in retirement so these are the folks who retirement so these are the folks who retirement so these are the folks who don't want to pinch pennies don't want don't want to pinch pennies don't want don't want to pinch pennies don't want to live on low incomes they miss they to live on low incomes they miss they to live on low incomes they miss they still may want to have high six-figure still may want to have high six-figure still may want to have high six-figure incomes in retirement but in order to do incomes in retirement but in order to do incomes in retirement but in order to do that they're gonna save incredibly that they're gonna save incredibly that they're gonna save incredibly aggressively very early on yeah that is aggressively very early on yeah that is aggressively very early on yeah that is each their own I guess is that I would each their own I guess is that I would each their own I guess is that I would say that probably steps away from the say that probably steps away from the say that probably steps away from the your money your life short train of your money your life short train of your money your life short train of thought if you're like toeing the line thought if you're like toeing the line thought if you're like toeing the line with the practices that they preach in with the practices that they preach in with the practices that they preach in that book yeah because they would say that book yeah because they would say that book yeah because they would say would you really be willing to delay the would you really be willing to delay the would you really be willing to delay the retirement date by two years to have retirement date by two years to have retirement date by two years to have that extra spin short you get there I that extra spin short you get there I that extra spin short you get there I think what's interesting we feel it think what's interesting we feel it think what's interesting we feel it because again what we get to do because again what we get to do because again what we get to do for a day a day job is we are fiown Li for a day a day job is we are fiown Li for a day a day job is we are fiown Li financial advisor so we work with folks financial advisor so we work with folks financial advisor so we work with folks all over the country helping them figure all over the country helping them figure all over the country helping them figure out how to get to attain and achieve out how to get to attain and achieve out how to get to attain and achieve financial independence right I think financial independence right I think financial independence right I think that you would say probably a number of that you would say probably a number of that you would say probably a number of the folks that you work with number the the folks that you work with number the the folks that you work with number the folks you specialize are probably folks you specialize are probably folks you specialize are probably somewhere between the regular fire fat somewhere between the regular fire fat somewhere between the regular fire fat fire folks right yeah fire folks right yeah fire folks right yeah and I think that a number of the folks and I think that a number of the folks and I think that a number of the folks that come to us and the money guys show that come to us and the money guys show that come to us and the money guys show that we've been talking to for the last that we've been talking to for the last that we've been talking to for the last decade are these fat fire people they're decade are these fat fire people they're decade are these fat fire people they're the folks who say you know what I've had the folks who say you know what I've had the folks who say you know what I've had a great career I've had a tremendous a great career I've had a tremendous a great career I've had a tremendous success I'm just naturally a saver I success I'm just naturally a saver I success I'm just naturally a saver I want to build up these assets now and I want to build up these assets now and I want to build up these assets now and I want to exit the workforce in my s s want to exit the workforce in my s s want to exit the workforce in my s s s these aren't the folks that are s these aren't the folks that are s these aren't the folks that are trying to leave at whether the folks trying to leave at whether the folks trying to leave at whether the folks who do want to do something else later who do want to do something else later who do want to do something else later in life in life in life guys right okay so if that's who you are guys right okay so if that's who you are guys right okay so if that's who you are and that's you know kind of where you and that's you know kind of where you and that's you know kind of where you fall out I think the question we have to fall out I think the question we have to fall out I think the question we have to have to have is is fire a good thing or have to have is is fire a good thing or have to have is is fire a good thing or is fire a bad thing and rather than is fire a bad thing and rather than is fire a bad thing and rather than trying to just answer that question we trying to just answer that question we trying to just answer that question we wanted to list out some pros and some wanted to list out some pros and some wanted to list out some pros and some cons of the fire movement in the fire cons of the fire movement in the fire cons of the fire movement in the fire mentality in the fire the fire thought mentality in the fire the fire thought mentality in the fire the fire thought process so here's sort of the pros to process so here's sort of the pros to process so here's sort of the pros to start with ultimately what the fire start with ultimately what the fire start with ultimately what the fire movement causes you to do is think about movement causes you to do is think about movement causes you to do is think about your time differently right that's right your time differently right that's right your time differently right that's right yeah it's associating that the thing yeah it's associating that the thing yeah it's associating that the thing that you do to make your money is might that you do to make your money is might that you do to make your money is might not be the thing that defines you or not be the thing that defines you or not be the thing that defines you or brings you happiness and so instead you brings you happiness and so instead you brings you happiness and so instead you use your working life in exchange to buy use your working life in exchange to buy use your working life in exchange to buy you time credits for the future and so you time credits for the future and so you time credits for the future and so that's really it allows you to open up that's really it allows you to open up that's really it allows you to open up the lens a little bit dig into the the lens a little bit dig into the the lens a little bit dig into the budget see what works for you what's budget see what works for you what's budget see what works for you what's required to actually sustain in life on required to actually sustain in life on required to actually sustain in life on a comfortable level and then really a comfortable level and then really a comfortable level and then really drill down into that budget and cut out drill down into that budget and cut out drill down into that budget and cut out all the waste so what I think is all the waste so what I think is all the waste so what I think is beautiful is I was on a flight to San beautiful is I was on a flight to San beautiful is I was on a flight to San Diego a couple couple weeks ago and Diego a couple couple weeks ago and Diego a couple couple weeks ago and there's an Amazon Prime documentary I there's an Amazon Prime documentary I there's an Amazon Prime documentary I can't remember the name of it but it was can't remember the name of it but it was can't remember the name of it but it was about it was about wealth and about it was about wealth and about it was about wealth and consumerism and that sort of thing and consumerism and that sort of thing and consumerism and that sort of thing and it's really interesting to think about I it's really interesting to think about I it's really interesting to think about I think it's huge Pro what the fire think it's huge Pro what the fire think it's huge Pro what the fire movement does is it does help fight off movement does is it does help fight off movement does is it does help fight off and combat some of that and I think we and combat some of that and I think we and combat some of that and I think we kind of we can be plagued with that sort kind of we can be plagued with that sort kind of we can be plagued with that sort of the society in which we live and the of the society in which we live and the of the society in which we live and the things that we see in the way that things that we see in the way that things that we see in the way that products are pushed it does sort of products are pushed it does sort of products are pushed it does sort of focus you to focus on sound financial focus you to focus on sound financial focus you to focus on sound financial management so prou number one - the fire management so prou number one - the fire management so prou number one - the fire caused you to think about money and time caused you to think about money and time caused you to think about money and time and the value of time and the value of time and the value of time little bit differently and I think you little bit differently and I think you little bit differently and I think you said this rather than your letting it be said this rather than your letting it be said this rather than your letting it be used to buy material possessions used to buy material possessions used to buy material possessions you know it's seen as a way to buy buy you know it's seen as a way to buy buy you know it's seen as a way to buy buy time another thing I think is really time another thing I think is really time another thing I think is really interesting a pro is and you're the interesting a pro is and you're the interesting a pro is and you're the first one I heard say this is it causes first one I heard say this is it causes first one I heard say this is it causes people to change the way they ask the people to change the way they ask the people to change the way they ask the question about how much should I be question about how much should I be question about how much should I be saving right it does because you really saving right it does because you really saving right it does because you really you know we've always kind of backdoored you know we've always kind of backdoored you know we've always kind of backdoored into the savings requirement because you into the savings requirement because you into the savings requirement because you ask somebody their retirement age and ask somebody their retirement age and ask somebody their retirement age and what they want retirement to look like what they want retirement to look like what they want retirement to look like and you can kind of with some and you can kind of with some and you can kind of with some assumptions figure out what it takes to assumptions figure out what it takes to assumptions figure out what it takes to get there from now until then this get there from now until then this get there from now until then this method actually takes the alternate path method actually takes the alternate path method actually takes the alternate path of saying this is how much I need to of saying this is how much I need to of saying this is how much I need to spend to be happy this is how much is spend to be happy this is how much is spend to be happy this is how much is left over and then we have to look at left over and then we have to look at left over and then we have to look at ways to really grow the nest egg as ways to really grow the nest egg as ways to really grow the nest egg as efficiently as possible moving forward efficiently as possible moving forward efficiently as possible moving forward without kind of betting the farm yeah without kind of betting the farm yeah without kind of betting the farm yeah and I think well and you said that the and I think well and you said that the and I think well and you said that the example was because a lot of people ask example was because a lot of people ask example was because a lot of people ask us hey how much should I be saving we us hey how much should I be saving we us hey how much should I be saving we say okay well if you save to say okay well if you save to say okay well if you save to percent of your gross income you're percent of your gross income you're percent of your gross income you're gonna set yourself up that by the time gonna set yourself up that by the time gonna set yourself up that by the time you get to retirement age you'll you get to retirement age you'll you get to retirement age you'll probably be in a pretty good place right probably be in a pretty good place right probably be in a pretty good place right the fire folks say hey ah this is my the fire folks say hey ah this is my the fire folks say hey ah this is my standard of living this is the thing standard of living this is the thing standard of living this is the thing that I want to achieve how much is it that I want to achieve how much is it that I want to achieve how much is it safe to get there and by the way if I safe to get there and by the way if I safe to get there and by the way if I can't save that much how much more don't can't save that much how much more don't can't save that much how much more don't need to earn you'll be able to do that need to earn you'll be able to do that need to earn you'll be able to do that that's right so a lot of clients they'll that's right so a lot of clients they'll that's right so a lot of clients they'll come to us and they might be in their come to us and they might be in their come to us and they might be in their mid s or late s and they'll say hey mid s or late s and they'll say hey mid s or late s and they'll say hey for me the thing that would bring me for me the thing that would bring me for me the thing that would bring me happiness is being able to go to the car happiness is being able to go to the car happiness is being able to go to the car rider line and pick up my kids sure I rider line and pick up my kids sure I rider line and pick up my kids sure I want to be able to spend more time at want to be able to spend more time at want to be able to spend more time at home doing the things that I care about home doing the things that I care about home doing the things that I care about that bring me the value so if I want to that bring me the value so if I want to that bring me the value so if I want to spend fifty thousand dollars a year when spend fifty thousand dollars a year when spend fifty thousand dollars a year when I turn I turn I turn what do I need to do today to get there what do I need to do today to get there what do I need to do today to get there and if I can't get there under the and if I can't get there under the and if I can't get there under the assumptions that we have to live with in assumptions that we have to live with in assumptions that we have to live with in what changes do I need to make it so what changes do I need to make it so what changes do I need to make it so that I can slow down and step away to be that I can slow down and step away to be that I can slow down and step away to be in the car rider line every day at : in the car rider line every day at : in the car rider line every day at : perfect and so that I think that does perfect and so that I think that does perfect and so that I think that does kind of blend over maybe into the kind of blend over maybe into the kind of blend over maybe into the barista fire if we're that you do create barista fire if we're that you do create barista fire if we're that you do create that side hustle where you have the that side hustle where you have the that side hustle where you have the consulting gig or maybe you're still consulting gig or maybe you're still consulting gig or maybe you're still loosely tied to your employer and are loosely tied to your employer and are loosely tied to your employer and are able to come in on special projects able to come in on special projects able to come in on special projects maybe during busy seasons throughout the maybe during busy seasons throughout the maybe during busy seasons throughout the year if there's like for us maybe a year if there's like for us maybe a year if there's like for us maybe a quarterly reporting sorry perfect or tax quarterly reporting sorry perfect or tax quarterly reporting sorry perfect or tax season or into the year planning season or into the year planning season or into the year planning together together together if you know the ins and the outs of that if you know the ins and the outs of that if you know the ins and the outs of that business then then yeah maybe you can business then then yeah maybe you can business then then yeah maybe you can work out arrangement so that you have work out arrangement so that you have work out arrangement so that you have some sort of passive or semi passive I some sort of passive or semi passive I some sort of passive or semi passive I use that term loosely right income use that term loosely right income use that term loosely right income stream so uh would you say that like so stream so uh would you say that like so stream so uh would you say that like so the the culmination is the big Pro to the the culmination is the big Pro to the the culmination is the big Pro to being a fire proponent is it causes you being a fire proponent is it causes you being a fire proponent is it causes you to approach money in a more I'm gonna to approach money in a more I'm gonna to approach money in a more I'm gonna say healthy but in a way that's gonna say healthy but in a way that's gonna say healthy but in a way that's gonna make you more successful from a make you more successful from a make you more successful from a financial standpoint agree okay all financial standpoint agree okay all financial standpoint agree okay all right so let's talk a little bit about right so let's talk a little bit about right so let's talk a little bit about some of the cons now here's one I'm some of the cons now here's one I'm some of the cons now here's one I'm gonna throw it out there I'm gonna be gonna throw it out there I'm gonna be gonna throw it out there I'm gonna be the guy who's just gonna start the the guy who's just gonna start the the guy who's just gonna start the obvious con right it requires a whole obvious con right it requires a whole obvious con right it requires a whole lot of sacrifice lot of sacrifice lot of sacrifice this is what I mean now I didn't realize this is what I mean now I didn't realize this is what I mean now I didn't realize I was a fire proponent when I first I was a fire proponent when I first I was a fire proponent when I first started my career you know wait way back started my career you know wait way back started my career you know wait way back in the mid when I got out of school in the mid when I got out of school in the mid when I got out of school I came up with this great idea right I I came up with this great idea right I I came up with this great idea right I went to public so there's a Publix two went to public so there's a Publix two went to public so there's a Publix two minutes from a house and they would have minutes from a house and they would have minutes from a house and they would have buy-one-get-one cereal right you give buy-one-get-one cereal right you give buy-one-get-one cereal right you give you a Lucky Charms or Golden Grahams or you a Lucky Charms or Golden Grahams or you a Lucky Charms or Golden Grahams or whatever it's not that's not an whatever it's not that's not an whatever it's not that's not an endorsement they don't pay us endorsement they don't pay us endorsement they don't pay us you could go do that well what I'd go do you could go do that well what I'd go do you could go do that well what I'd go do is I'd go by like fourteen sixteen boxes is I'd go by like fourteen sixteen boxes is I'd go by like fourteen sixteen boxes of cereal right book and I would just of cereal right book and I would just of cereal right book and I would just eat that for every single meal every eat that for every single meal every eat that for every single meal every single meal I was saving a ton of money single meal I was saving a ton of money single meal I was saving a ton of money on my grocery bill grocery bill but on my grocery bill grocery bill but on my grocery bill grocery bill but there was some sacrifice required to be there was some sacrifice required to be there was some sacrifice required to be able to do that a financial sacrifice able to do that a financial sacrifice able to do that a financial sacrifice cause you probably sent the amount of cause you probably sent the amount of cause you probably sent the amount of money that you saved directly to a money that you saved directly to a money that you saved directly to a savings account knowing your personality savings account knowing your personality savings account knowing your personality absolutely but it probably had a absolutely but it probably had a absolutely but it probably had a negative impact on your overall negative impact on your overall negative impact on your overall happiness yeah maybe your health happiness yeah maybe your health happiness yeah maybe your health absolutely stuff that goes into that absolutely stuff that goes into that absolutely stuff that goes into that that you don't have to just be able to that you don't have to just be able to that you don't have to just be able to save as much as possible you have to save as much as possible you have to save as much as possible you have to really think about what your life looks really think about what your life looks really think about what your life looks like in your s younger s and whether like in your s younger s and whether like in your s younger s and whether or not you have the mobility or the or not you have the mobility or the or not you have the mobility or the ability to do the things that you want ability to do the things that you want ability to do the things that you want to do the other thing I think that's a to do the other thing I think that's a to do the other thing I think that's a con is that it's hard right if you con is that it's hard right if you con is that it's hard right if you really want to be someone who does this really want to be someone who does this really want to be someone who does this there's no magic bullet so you can't there's no magic bullet so you can't there's no magic bullet so you can't just go start flipping houses or go buy just go start flipping houses or go buy just go start flipping houses or go buy Bitcoin or do trading options or Bitcoin or do trading options or Bitcoin or do trading options or whatever it is I think you're the one whatever it is I think you're the one whatever it is I think you're the one who said this you said it's a series of who said this you said it's a series of who said this you said it's a series of decisions you repeatedly may just save decisions you repeatedly may just save decisions you repeatedly may just save rather than spend so it's not just like rather than spend so it's not just like rather than spend so it's not just like you wake up and say you know what today you wake up and say you know what today you wake up and say you know what today I'm gonna be fire I'm gonna do it today I'm gonna be fire I'm gonna do it today I'm gonna be fire I'm gonna do it today it's it actually goes into the fiber of it's it actually goes into the fiber of it's it actually goes into the fiber of who you who you who you and you have to replicate that for days and you have to replicate that for days and you have to replicate that for days weeks months years decades right and if weeks months years decades right and if weeks months years decades right and if you really think about the beauty of you really think about the beauty of you really think about the beauty of compounding is it takes time you have to compounding is it takes time you have to compounding is it takes time you have to have time on your side for it to work is have time on your side for it to work is have time on your side for it to work is not something where that you can say not something where that you can say not something where that you can say okay I'm not gonna spend anything this okay I'm not gonna spend anything this okay I'm not gonna spend anything this week and I'm gonna be a part of this week and I'm gonna be a part of this week and I'm gonna be a part of this movement and then you do it big pat on movement and then you do it big pat on movement and then you do it big pat on the back next week you blow the budget the back next week you blow the budget the back next week you blow the budget out of proportion and spend more than out of proportion and spend more than out of proportion and spend more than you would have if you just would have you would have if you just would have you would have if you just would have went out about your regular table sure went out about your regular table sure went out about your regular table sure so it it does take some discipline so it it does take some discipline so it it does take some discipline absolutely and it does take small absolutely and it does take small absolutely and it does take small victories here and there that build up victories here and there that build up victories here and there that build up over time and then once you get really over time and then once you get really over time and then once you get really good at the practice part of it and good at the practice part of it and good at the practice part of it and you're able to continue doing those you're able to continue doing those you're able to continue doing those small victories right you add new small victories right you add new small victories right you add new victories in new small pick ups here and victories in new small pick ups here and victories in new small pick ups here and there then it just grows and compounds there then it just grows and compounds there then it just grows and compounds and you really figure out what's and you really figure out what's and you really figure out what's valuable Tim I love it valuable Tim I love it valuable Tim I love it this is what now it wouldn't be a money this is what now it wouldn't be a money this is what now it wouldn't be a money guy show right without the voice of guy show right without the voice of guy show right without the voice of Brian Preston now I'm not gonna do my Brian Preston now I'm not gonna do my Brian Preston now I'm not gonna do my best Brian press and impression but here best Brian press and impression but here best Brian press and impression but here were these notes because he wanted to were these notes because he wanted to were these notes because he wanted to kind of weigh in a little bit and he kind of weigh in a little bit and he kind of weigh in a little bit and he said you know this is the big con that I said you know this is the big con that I said you know this is the big con that I see when I think about the fire movement see when I think about the fire movement see when I think about the fire movement are you leaving the game right if you are you leaving the game right if you are you leaving the game right if you think about the game of your working think about the game of your working think about the game of your working career if you think about the the career if you think about the the career if you think about the the ability for you to generate income ability for you to generate income ability for you to generate income are you leaving at your most valuable are you leaving at your most valuable are you leaving at your most valuable earning years and potential but cause earning years and potential but cause earning years and potential but cause it's hard to get that water back up the it's hard to get that water back up the it's hard to get that water back up the hill hill hill and Brian said you know even some and Brian said you know even some and Brian said you know even some professions they won't even let you back professions they won't even let you back professions they won't even let you back in so if you make the chance to exit in so if you make the chance to exit in so if you make the chance to exit you're making your your high starting you're making your your high starting you're making your your high starting years you may not ever be able to years you may not ever be able to years you may not ever be able to replicate that again yeah and it's very replicate that again yeah and it's very replicate that again yeah and it's very fair and I think a lot of our clients fair and I think a lot of our clients fair and I think a lot of our clients especially in the tech business do have especially in the tech business do have especially in the tech business do have a legitimate fear that as they grow more a legitimate fear that as they grow more a legitimate fear that as they grow more mature in their career short they might mature in their career short they might mature in their career short they might be replaced by younger cheaper workers be replaced by younger cheaper workers be replaced by younger cheaper workers and really might just get outgrown yeah and really might just get outgrown yeah and really might just get outgrown yeah you know and so not trying to throw any you know and so not trying to throw any you know and so not trying to throw any shade there but it is a fear that if you shade there but it is a fear that if you shade there but it is a fear that if you hop off the wagon for five or six years hop off the wagon for five or six years hop off the wagon for five or six years and realize hey that was a lot of fun and realize hey that was a lot of fun and realize hey that was a lot of fun let me get back on the ability and the let me get back on the ability and the let me get back on the ability and the opportunity that you had when you left opportunity that you had when you left opportunity that you had when you left you might not be available to you so you might not be available to you so you might not be available to you so that's a big con that you make this that's a big con that you make this that's a big con that you make this decision and maybe it may be irrevocable decision and maybe it may be irrevocable decision and maybe it may be irrevocable if you actually make the decision to if you actually make the decision to if you actually make the decision to step away this is one that I think is to step away this is one that I think is to step away this is one that I think is to a lot of folks who pursue the fire a lot of folks who pursue the fire a lot of folks who pursue the fire movement it's a game they want to say movement it's a game they want to say movement it's a game they want to say you can you can you can do it can I win the game it's really do it can I win the game it's really do it can I win the game it's really easy to think about what it is that easy to think about what it is that easy to think about what it is that you're retiring from I work a hundred you're retiring from I work a hundred you're retiring from I work a hundred hours a week I you know don't see my hours a week I you know don't see my hours a week I you know don't see my kids I want to my family I want to get kids I want to my family I want to get kids I want to my family I want to get away from that but a lot of people don't away from that but a lot of people don't away from that but a lot of people don't put the time in to really think about put the time in to really think about put the time in to really think about what am i retiring to if you haven't what am i retiring to if you haven't what am i retiring to if you haven't listened episode we do a Fritz Gilbert listened episode we do a Fritz Gilbert listened episode we do a Fritz Gilbert retirement manifesto it was phenomenal retirement manifesto it was phenomenal retirement manifesto it was phenomenal and this is one of the things that Fritz and this is one of the things that Fritz and this is one of the things that Fritz really drives home is you have to have really drives home is you have to have really drives home is you have to have defined what is it that thing that defined what is it that thing that defined what is it that thing that you're retiring to it needs to be more you're retiring to it needs to be more you're retiring to it needs to be more about just winning the game can I do it about just winning the game can I do it about just winning the game can I do it okay once I if I'm that dog and I've okay once I if I'm that dog and I've okay once I if I'm that dog and I've chased the car and I've caught it what chased the car and I've caught it what chased the car and I've caught it what am I actually gonna do now that I've am I actually gonna do now that I've am I actually gonna do now that I've caught the car and it's a big leap caught the car and it's a big leap caught the car and it's a big leap because think about people that have because think about people that have because think about people that have saved so much of their income for so saved so much of their income for so saved so much of their income for so long to just flip a switch yep it just long to just flip a switch yep it just long to just flip a switch yep it just does not happen that easy does not happen that easy does not happen that easy and have the confidence to be able to do and have the confidence to be able to do and have the confidence to be able to do it there's a lot of jitters you know it there's a lot of jitters you know it there's a lot of jitters you know stepping from the warm up box or circle stepping from the warm up box or circle stepping from the warm up box or circle now on deck circle I guess for you now on deck circle I guess for you now on deck circle I guess for you baseball players to the batter's box baseball players to the batter's box baseball players to the batter's box yeah I mean it's it's real now yeah I mean it's it's real now yeah I mean it's it's real now absolutely you know another thing that absolutely you know another thing that absolutely you know another thing that we talk about is there are some probably we talk about is there are some probably we talk about is there are some probably some physical right and maybe some some physical right and maybe some some physical right and maybe some mental things that happened to Maria mental things that happened to Maria mental things that happened to Maria Fitzpatrick who's an associate professor Fitzpatrick who's an associate professor Fitzpatrick who's an associate professor Cornell found that men who retire at Cornell found that men who retire at Cornell found that men who retire at have an increased mortality risk of have an increased mortality risk of have an increased mortality risk of about % so just folks who retire five about % so just folks who retire five about % so just folks who retire five you know three to five years earlier you know three to five years earlier you know three to five years earlier than normal retirement age have than normal retirement age have than normal retirement age have increased mortality risk truth be told increased mortality risk truth be told increased mortality risk truth be told we don't know the number for fire we don't know the number for fire we don't know the number for fire statistics but I think we've all seen statistics but I think we've all seen statistics but I think we've all seen whether it be parents or grandparents or whether it be parents or grandparents or whether it be parents or grandparents or folks that we know once they leave the folks that we know once they leave the folks that we know once they leave the working world working professional working world working professional working world working professional recruiters there's just as some natural recruiters there's just as some natural recruiters there's just as some natural cognitive decline when you're if you're cognitive decline when you're if you're cognitive decline when you're if you're not continuing to sort of advance and not continuing to sort of advance and not continuing to sort of advance and figure that sort of stuff out we don't figure that sort of stuff out we don't figure that sort of stuff out we don't really know what the long-term effects really know what the long-term effects really know what the long-term effects are on someone if they are retired for are on someone if they are retired for are on someone if they are retired for years that's the fear if you years that's the fear if you years that's the fear if you don't find that passion project if you don't find that passion project if you don't find that passion project if you don't find the fulfillment you're don't find the fulfillment you're don't find the fulfillment you're looking for in retirement what do you do looking for in retirement what do you do looking for in retirement what do you do yeah you know and that's the thing that yeah you know and that's the thing that yeah you know and that's the thing that Brian mentioned before in the show prep Brian mentioned before in the show prep Brian mentioned before in the show prep he said you know work is food for the he said you know work is food for the he said you know work is food for the Soul yep that's right there is a part of Soul yep that's right there is a part of Soul yep that's right there is a part of working that does keep you young that's working that does keep you young that's working that does keep you young that's right and then I think about the other right and then I think about the other right and then I think about the other you know again this is just because I you know again this is just because I you know again this is just because I like I like to think about the economics like I like to think about the economics like I like to think about the economics of it of it of it it seems like on a large scale there's a it seems like on a large scale there's a it seems like on a large scale there's a large population shift from producer large population shift from producer large population shift from producer folks in the workforce folks creating folks in the workforce folks creating folks in the workforce folks creating goods driving capital markets and then goods driving capital markets and then goods driving capital markets and then there's a huge shift to consumers there's a huge shift to consumers there's a huge shift to consumers without folks to replace them that seems without folks to replace them that seems without folks to replace them that seems like it could be problematic and we've like it could be problematic and we've like it could be problematic and we've actually seen that play out on some actually seen that play out on some actually seen that play out on some economies globally where there are just economies globally where there are just economies globally where there are just aging populations there are more people aging populations there are more people aging populations there are more people that are not working men that are that are not working men that are that are not working men that are working you know economically that can working you know economically that can working you know economically that can have some issues and some headwinds as have some issues and some headwinds as have some issues and some headwinds as well well social security you retire well well social security you retire well well social security you retire early in Millennials by the way don't early in Millennials by the way don't early in Millennials by the way don't believe it's gonna be there for them believe it's gonna be there for them believe it's gonna be there for them anyway anyway anyway as fewer people paying into the pot as fewer people paying into the pot as fewer people paying into the pot that's exactly when more people are that's exactly when more people are that's exactly when more people are retiring that are dependent on that yep retiring that are dependent on that yep retiring that are dependent on that yep okay so here's some questions we want to okay so here's some questions we want to okay so here's some questions we want to think about or we want you to think think about or we want you to think think about or we want you to think about it as you consider the fire about it as you consider the fire about it as you consider the fire movement issue kind of reflecting on movement issue kind of reflecting on movement issue kind of reflecting on this so I'm gonna ask you these this so I'm gonna ask you these this so I'm gonna ask you these questions questions were one game just questions questions were one game just questions questions were one game just fire only pertain to people that look at fire only pertain to people that look at fire only pertain to people that look at their occupation as a job versus career their occupation as a job versus career their occupation as a job versus career purpose and visit the found what they purpose and visit the found what they purpose and visit the found what they were put on this earth to do I think were put on this earth to do I think were put on this earth to do I think some do okay I think that there is an some do okay I think that there is an some do okay I think that there is an association of you know this is what association of you know this is what association of you know this is what brings me happiness this is what's brings me happiness this is what's brings me happiness this is what's fulfilling I think that that's probably fulfilling I think that that's probably fulfilling I think that that's probably the camp that I fall into it is magical the camp that I fall into it is magical the camp that I fall into it is magical seeing a plan come together and seeing seeing a plan come together and seeing seeing a plan come together and seeing people really reach those milestones people really reach those milestones people really reach those milestones they've been working so hard for but they've been working so hard for but they've been working so hard for but that's not true across the board so that's not true across the board so that's not true across the board so everyone might not get that same type of everyone might not get that same type of everyone might not get that same type of fulfillment or their nine-to-five I fulfillment or their nine-to-five I fulfillment or their nine-to-five I think that said perfectly because think that said perfectly because think that said perfectly because frankly I don't think I'm ever gonna frankly I don't think I'm ever gonna frankly I don't think I'm ever gonna retire I can never be part of the fire retire I can never be part of the fire retire I can never be part of the fire movement cuz I never want to do the movement cuz I never want to do the movement cuz I never want to do the retire part there's just too much fun retire part there's just too much fun retire part there's just too much fun getting to do this show getting to getting to do this show getting to getting to do this show getting to connect with clients getting to talk to connect with clients getting to talk to connect with clients getting to talk to the folks the money got family it's just the folks the money got family it's just the folks the money got family it's just too much fun I don't think I ever want too much fun I don't think I ever want too much fun I don't think I ever want to step away for it but I know for a to step away for it but I know for a to step away for it but I know for a fact this is what I was put on this fact this is what I was put on this fact this is what I was put on this planet to do planet to do planet to do I think the win is if you can find that I think the win is if you can find that I think the win is if you can find that thing and still have the life balance thing and still have the life balance thing and still have the life balance where you can spend the time with a where you can spend the time with a where you can spend the time with a family and have the time I think that's family and have the time I think that's family and have the time I think that's the big win that's it I think some the big win that's it I think some the big win that's it I think some people if they're just not in that they people if they're just not in that they people if they're just not in that they believe that they can't find that believe that they can't find that believe that they can't find that without completely stepping away right without completely stepping away right without completely stepping away right no you're absolutely right and so I no you're absolutely right and so I no you're absolutely right and so I think that a lot of times clients do think that a lot of times clients do think that a lot of times clients do have to hurt them take clients fire have to hurt them take clients fire have to hurt them take clients fire advocates or followers do you have to advocates or followers do you have to advocates or followers do you have to sometimes take a step back and go okay sometimes take a step back and go okay sometimes take a step back and go okay what do I do now yeah I've been working what do I do now yeah I've been working what do I do now yeah I've been working in this grind for so long yep I might in this grind for so long yep I might in this grind for so long yep I might have been putting in those hour work have been putting in those hour work have been putting in those hour work weeks weeks weeks hour work weeks I have all of these hour work weeks I have all of these hour work weeks I have all of these resources I've accumulated because I've resources I've accumulated because I've resources I've accumulated because I've done this how do I turn it off done this how do I turn it off done this how do I turn it off yeah yeah yeah how do I go from - yeah yeah yeah how do I go from - yeah yeah yeah how do I go from - sorry to like that yeah it's exactly sorry to like that yeah it's exactly sorry to like that yeah it's exactly and I think we've even seen and I think we've even seen and I think we've even seen statistically there are a lot of folks statistically there are a lot of folks statistically there are a lot of folks who have to walk that back right so II who have to walk that back right so II who have to walk that back right so II they do the I think knows it's they do the I think knows it's they do the I think knows it's just doesn't stick I've got to change just doesn't stick I've got to change just doesn't stick I've got to change this okay so what are some things that this okay so what are some things that this okay so what are some things that are required to be successful if you are required to be successful if you are required to be successful if you leave the workforce early we've already leave the workforce early we've already leave the workforce early we've already said you have to have a high savings said you have to have a high savings said you have to have a high savings rate and if you're a high income earner rate and if you're a high income earner rate and if you're a high income earner that doesn't hurt right so obviously the that doesn't hurt right so obviously the that doesn't hurt right so obviously the higher your income is the higher you can higher your income is the higher you can higher your income is the higher you can say without having to sacrifice say without having to sacrifice say without having to sacrifice standards living % is sort of the standards living % is sort of the standards living % is sort of the bellwether that's sort of the thing that bellwether that's sort of the thing that bellwether that's sort of the thing that you want to march towards right you want to march towards right you want to march towards right you said trimming the fat getting rid of you said trimming the fat getting rid of you said trimming the fat getting rid of any financial burden that's not a any financial burden that's not a any financial burden that's not a necessity cable car replacements fancy necessity cable car replacements fancy necessity cable car replacements fancy wardrobes cut the things that you don't wardrobes cut the things that you don't wardrobes cut the things that you don't need don't spend what you can't what you need don't spend what you can't what you need don't spend what you can't what you won't save on what you don't need right won't save on what you don't need right won't save on what you don't need right sure Vicki Robin would say don't buy sure Vicki Robin would say don't buy sure Vicki Robin would say don't buy that thing if it does not bring you that thing if it does not bring you that thing if it does not bring you value if it doesn't provide you know value if it doesn't provide you know value if it doesn't provide you know that a happy factor okay I'm gonna put that a happy factor okay I'm gonna put that a happy factor okay I'm gonna put you on the spot here you on the spot here you on the spot here cuz I don't wanna watch that yet but cuz I don't wanna watch that yet but cuz I don't wanna watch that yet but what's Marie Kondo you know she's there what's Marie Kondo you know she's there what's Marie Kondo you know she's there what's the thing that she says do you what's the thing that she says do you what's the thing that she says do you know what she says morph what's the does know what she says morph what's the does know what she says morph what's the does it visit sparked is a Spartan joy is it visit sparked is a Spartan joy is it visit sparked is a Spartan joy is that it I don't know she says something that it I don't know she says something that it I don't know she says something you guys can tell me in the comments you guys can tell me in the comments you guys can tell me in the comments because I totally just butchered that because I totally just butchered that because I totally just butchered that but that's what you made me no but maybe but that's what you made me no but maybe but that's what you made me no but maybe sound and sound like what you made me sound and sound like what you made me sound and sound like what you made me think of you needed to find the amount think of you needed to find the amount think of you needed to find the amount you need for leisure before decided to you need for leisure before decided to you need for leisure before decided to quit your job you had said this so if quit your job you had said this so if quit your job you had said this so if you are somebody's working hours a you are somebody's working hours a you are somebody's working hours a week and you want to step away from that week and you want to step away from that week and you want to step away from that you got a prom because you're gonna do you got a prom because you're gonna do you got a prom because you're gonna do something that hours and there's a something that hours and there's a something that hours and there's a chance that something might cost money chance that something might cost money chance that something might cost money right yeah work might be relatively right yeah work might be relatively right yeah work might be relatively cheap but your your retirement goals are cheap but your your retirement goals are cheap but your your retirement goals are and to think about it if you're just and to think about it if you're just and to think about it if you're just planning to save enough to cover your planning to save enough to cover your planning to save enough to cover your basic utilities your mortgage your basic utilities your mortgage your basic utilities your mortgage your grocery bills what do you do for fun grocery bills what do you do for fun grocery bills what do you do for fun yeah you know I've got to factor that in yeah you know I've got to factor that in yeah you know I've got to factor that in and it might and be real with yourself and it might and be real with yourself and it might and be real with yourself if it's a thousand dollars a month or if it's a thousand dollars a month or if it's a thousand dollars a month or ten thousand dollars a month really ten thousand dollars a month really ten thousand dollars a month really figure out what it takes figure out what it takes figure out what it takes yep for you to occupy your time and be yep for you to occupy your time and be yep for you to occupy your time and be happy so this is one and I'm trying not happy so this is one and I'm trying not happy so this is one and I'm trying not to pay attention to the comments of how to pay attention to the comments of how to pay attention to the comments of how the way it is spark joy the way it is spark joy the way it is spark joy I'm try not to pay attention to comments I'm try not to pay attention to comments I'm try not to pay attention to comments but I've seen a lot of folks might talk but I've seen a lot of folks might talk but I've seen a lot of folks might talk about withdrawal rate so I think this about withdrawal rate so I think this about withdrawal rate so I think this would not be a money guy episode unless would not be a money guy episode unless would not be a money guy episode unless we talked about that because you and I we talked about that because you and I we talked about that because you and I said and we've we've we've mentioned said and we've we've we've mentioned said and we've we've we've mentioned this in the show the most basic rule of this in the show the most basic rule of this in the show the most basic rule of rule of thumb in retirement is you want rule of thumb in retirement is you want rule of thumb in retirement is you want to have a % withdrawal rate of your to have a % withdrawal rate of your to have a % withdrawal rate of your portfolio's take your total portfolio portfolio's take your total portfolio portfolio's take your total portfolio portfolio amount multiply it by portfolio amount multiply it by portfolio amount multiply it by percent that's kind of the amount that percent that's kind of the amount that percent that's kind of the amount that you can plan on living off of now we you can plan on living off of now we you can plan on living off of now we think that's what's true for normal think that's what's true for normal think that's what's true for normal retirees or maybe I'm gonna say maybe retirees or maybe I'm gonna say maybe retirees or maybe I'm gonna say maybe some fat retirees or some longer in the some fat retirees or some longer in the some fat retirees or some longer in the tooth early retirees right so social tooth early retirees right so social tooth early retirees right so social security credits or yeah exactly so if security credits or yeah exactly so if security credits or yeah exactly so if you're someone who thinks you want to you're someone who thinks you want to you're someone who thinks you want to exit earlier we think you ought to exit earlier we think you ought to exit earlier we think you ought to revise that and this is our take we want revise that and this is our take we want revise that and this is our take we want you to shoot for a withdrawal rate of you to shoot for a withdrawal rate of you to shoot for a withdrawal rate of three and a half percent if you're three and a half percent if you're three and a half percent if you're leaving the workforce before -ish leaving the workforce before -ish leaving the workforce before -ish and if you're one of those folks that and if you're one of those folks that and if you're one of those folks that are leaving in your s right you are leaving in your s right you are leaving in your s right you probably want to think about a % probably want to think about a % probably want to think about a % withdrawal rate for your portfolio withdrawal rate for your portfolio withdrawal rate for your portfolio obviously the spread between rate of obviously the spread between rate of obviously the spread between rate of return and withdrawal rate is the thing return and withdrawal rate is the thing return and withdrawal rate is the thing that matters right that's what's gonna that matters right that's what's gonna that matters right that's what's gonna altom utley affect the longevity of your altom utley affect the longevity of your altom utley affect the longevity of your plan but you don't necessarily get to plan but you don't necessarily get to plan but you don't necessarily get to control that so much right how control that so much right how control that so much right how conservative or aggressive you are and conservative or aggressive you are and conservative or aggressive you are and what your expenditures are really what your expenditures are really what your expenditures are really matters if you know that you know that matters if you know that you know that matters if you know that you know that you know that you know that you need you know that you know that you need you know that you know that you need $, a month to live off of but $, a month to live off of but $, a month to live off of but there's a downturn in the market and you there's a downturn in the market and you there's a downturn in the market and you can't make it where you live off of can't make it where you live off of can't make it where you live off of $, a month you might have some $, a month you might have some $, a month you might have some problems if you play in that Lane Lee problems if you play in that Lane Lee problems if you play in that Lane Lee and and talking about the analysis that and and talking about the analysis that and and talking about the analysis that goes behind it is we do stress test goes behind it is we do stress test goes behind it is we do stress test those portfolios yeah and so we're those portfolios yeah and so we're those portfolios yeah and so we're looking at what happens if you keep looking at what happens if you keep looking at what happens if you keep money in a plan in a that's right money in a plan in a that's right money in a plan in a that's right and anytime that you don't spend what and anytime that you don't spend what and anytime that you don't spend what you thought you were gonna spend you thought you were gonna spend you thought you were gonna spend probability success goes up yep because probability success goes up yep because probability success goes up yep because you're not taking that linear I now know you're not taking that linear I now know you're not taking that linear I now know it this was something that you pointed it this was something that you pointed it this was something that you pointed out in the article I think I missed the out in the article I think I missed the out in the article I think I missed the first time that I read through it this first time that I read through it this first time that I read through it this isn't the money piece so so for someone isn't the money piece so so for someone isn't the money piece so so for someone they said that the price of regular they said that the price of regular they said that the price of regular goods and services it roughly doubles goods and services it roughly doubles goods and services it roughly doubles every years or so right that's right every years or so right that's right every years or so right that's right through inflation so the cost of a through inflation so the cost of a through inflation so the cost of a coca-cola in years and made that out coca-cola in years and made that out coca-cola in years and made that out not an endorsement will be worth not an endorsement will be worth not an endorsement will be worth probably roughly double that right probably roughly double that right probably roughly double that right years so someone in their s they could years so someone in their s they could years so someone in their s they could see like a three see like a three see like a three or four-fold increase in their lifetime or four-fold increase in their lifetime or four-fold increase in their lifetime in the price of their goods right in the price of their goods right in the price of their goods right inflation is real and when you start inflation is real and when you start inflation is real and when you start manipulating inflation inside of a plan manipulating inflation inside of a plan manipulating inflation inside of a plan when you talking about stress testing when you talking about stress testing when you talking about stress testing and everything else a small change on an and everything else a small change on an and everything else a small change on an annual basis can make a big difference annual basis can make a big difference annual basis can make a big difference and the outcome because if you think and the outcome because if you think and the outcome because if you think about it you spend a hundred thousand a about it you spend a hundred thousand a about it you spend a hundred thousand a day making numbers easy % inflation day making numbers easy % inflation day making numbers easy % inflation next year's or put get a hundred and next year's or put get a hundred and next year's or put get a hundred and three out let's say you're pulling that three out let's say you're pulling that three out let's say you're pulling that from a retirement account you gotta from a retirement account you gotta from a retirement account you gotta think about taxes absalom that extra think about taxes absalom that extra think about taxes absalom that extra three thousand dollars and so now it's three thousand dollars and so now it's three thousand dollars and so now it's not just one hundred and three coming not just one hundred and three coming not just one hundred and three coming out hundred three plus tax that's out hundred three plus tax that's out hundred three plus tax that's exactly right exactly right exactly right okay so that's a that's a perfect segue okay so that's a that's a perfect segue okay so that's a that's a perfect segue it's almost like you have notes in front it's almost like you have notes in front it's almost like you have notes in front of you when you think about doing a fire of you when you think about doing a fire of you when you think about doing a fire movement being successful in it do you movement being successful in it do you movement being successful in it do you have to think about the way that you have to think about the way that you have to think about the way that you save and accumulate differently yeah and save and accumulate differently yeah and save and accumulate differently yeah and I kind of gave it away earlier with my I kind of gave it away earlier with my I kind of gave it away earlier with my ladder analogy right so if you're really ladder analogy right so if you're really ladder analogy right so if you're really killing the game right now and you're in killing the game right now and you're in killing the game right now and you're in the higher marginal tax rates you pretty the higher marginal tax rates you pretty the higher marginal tax rates you pretty much have to max out the k and take much have to max out the k and take much have to max out the k and take the tax deductions well the money the the tax deductions well the money the the tax deductions well the money the savings are just too valuable to before savings are just too valuable to before savings are just too valuable to before go right that doesn't mean that down the go right that doesn't mean that down the go right that doesn't mean that down the road we don't do some cool strategy with road we don't do some cool strategy with road we don't do some cool strategy with Roth conversions or something like that Roth conversions or something like that Roth conversions or something like that when you climb back up the ladders going when you climb back up the ladders going when you climb back up the ladders going at the bottom so so if you are someone at the bottom so so if you are someone at the bottom so so if you are someone who's in the fire movement and you are who's in the fire movement and you are who's in the fire movement and you are in a higher income tax bracket you say in a higher income tax bracket you say in a higher income tax bracket you say well okay Gabe just told me I can't well okay Gabe just told me I can't well okay Gabe just told me I can't forego the k but I still want to forego the k but I still want to forego the k but I still want to retire at years old yeah what that retire at years old yeah what that retire at years old yeah what that means is you have to be saving after-tax means is you have to be saving after-tax means is you have to be saving after-tax assets you have to be able to get to assets you have to be able to get to assets you have to be able to get to where you can take advantage of the k where you can take advantage of the k where you can take advantage of the k but you're still doing the Roth's or the but you're still doing the Roth's or the but you're still doing the Roth's or the backdoor Ross or the after-tax savings backdoor Ross or the after-tax savings backdoor Ross or the after-tax savings so that you can create that bridge money so that you can create that bridge money so that you can create that bridge money right absolutely and we do have a lot of right absolutely and we do have a lot of right absolutely and we do have a lot of people and clients listeners of the show people and clients listeners of the show people and clients listeners of the show that talk about the after-tax that talk about the after-tax that talk about the after-tax opportunities in a k yeah yeah opportunities in a k yeah yeah opportunities in a k yeah yeah retiring early and starting those retiring early and starting those retiring early and starting those conversion strategies you start conversion strategies you start conversion strategies you start accelerating income you talked about one accelerating income you talked about one accelerating income you talked about one even with charitable giving that's even with charitable giving that's even with charitable giving that's something you have to think about we something you have to think about we something you have to think about we think about how you approach financial think about how you approach financial think about how you approach financial independence retire early so if you independence retire early so if you independence retire early so if you think if you're charitably inclined and think if you're charitably inclined and think if you're charitably inclined and you're thinking about giving money away you're thinking about giving money away you're thinking about giving money away and you're gonna be in a super low tax and you're gonna be in a super low tax and you're gonna be in a super low tax rate environment in the future you might rate environment in the future you might rate environment in the future you might want to think about shifting some of want to think about shifting some of want to think about shifting some of those future charitable gifts into those future charitable gifts into those future charitable gifts into today's tax bracket while you're in a today's tax bracket while you're in a today's tax bracket while you're in a higher tax break you can do that with higher tax break you can do that with higher tax break you can do that with some good planning I mean you can really some good planning I mean you can really some good planning I mean you can really front-load your charitable giving front-load your charitable giving front-load your charitable giving now to get the bigger tax benefit when now to get the bigger tax benefit when now to get the bigger tax benefit when your incomes higher and then you would your incomes higher and then you would your incomes higher and then you would said even one of the other things you said even one of the other things you said even one of the other things you have to think about is what type of have to think about is what type of have to think about is what type of taxes you're paying so when you are in taxes you're paying so when you are in taxes you're paying so when you are in retirement are you're triggering retirement are you're triggering retirement are you're triggering ordinary income taxes are you triggering ordinary income taxes are you triggering ordinary income taxes are you triggering long-term capital gains taxes because long-term capital gains taxes because long-term capital gains taxes because just that thing alone will have a very just that thing alone will have a very just that thing alone will have a very big impact on the longevity and the big impact on the longevity and the big impact on the longevity and the sustainability of the plan that you've sustainability of the plan that you've sustainability of the plan that you've put in place are there any blind find put in place are there any blind find put in place are there any blind find spots that fire folks should especially spots that fire folks should especially spots that fire folks should especially measure twice and cut once on before measure twice and cut once on before measure twice and cut once on before they choose to go this route really they choose to go this route really they choose to go this route really evaluate where your parents may be if evaluate where your parents may be if evaluate where your parents may be if they're entering into retirement where they're entering into retirement where they're entering into retirement where your grandparents may be you know and your grandparents may be you know and your grandparents may be you know and think about the things that they did and think about the things that they did and think about the things that they did and look at the things that they did during look at the things that they did during look at the things that they did during their retirement or because their it their retirement or because their it their retirement or because their it might not be as illustrious or might not be as illustrious or might not be as illustrious or nice-looking as you think so what you're nice-looking as you think so what you're nice-looking as you think so what you're saying is that passion project because I saying is that passion project because I saying is that passion project because I think one of the articles said you know think one of the articles said you know think one of the articles said you know a lot of these folks you know they work a lot of these folks you know they work a lot of these folks you know they work in these high-stress jobs and they work in these high-stress jobs and they work in these high-stress jobs and they work to hours and they just want to to hours and they just want to to hours and they just want to think about you know doing home brews think about you know doing home brews think about you know doing home brews and farming sure but when it comes down and farming sure but when it comes down and farming sure but when it comes down to it home brewing and farming it's kind to it home brewing and farming it's kind to it home brewing and farming it's kind of a hard thing to do it and use of a hard thing to do it and use of a hard thing to do it and use back-breaking work you may not love it back-breaking work you may not love it back-breaking work you may not love it it may not be something that's it may not be something that's it may not be something that's fulfilling it may not be so this great fulfilling it may not be so this great fulfilling it may not be so this great so we'll talk in a second about what you so we'll talk in a second about what you so we'll talk in a second about what you can do to kind of kind of figure that can do to kind of kind of figure that can do to kind of kind of figure that peace other example that I saw was my peace other example that I saw was my peace other example that I saw was my wife she was entertaining the idea like wife she was entertaining the idea like wife she was entertaining the idea like on the weekends and stuff of getting on the weekends and stuff of getting on the weekends and stuff of getting into like a philanthropic or like trying into like a philanthropic or like trying into like a philanthropic or like trying to sit on the board yeah yeah we're to sit on the board yeah yeah we're to sit on the board yeah yeah we're going to work for a non-profit sure and going to work for a non-profit sure and going to work for a non-profit sure and you start getting involved and you start you start getting involved and you start you start getting involved and you start really seeing and not all nonprofits really seeing and not all nonprofits really seeing and not all nonprofits might be like this but there's some might be like this but there's some might be like this but there's some politics yeah absol in that too so you politics yeah absol in that too so you politics yeah absol in that too so you might not be running away from the might not be running away from the might not be running away from the things that bother you yeah absolutely things that bother you yeah absolutely things that bother you yeah absolutely and I think I think the big one another and I think I think the big one another and I think I think the big one another blind spot is and we mentioned this blind spot is and we mentioned this blind spot is and we mentioned this earlier and this is sort of that Brian earlier and this is sort of that Brian earlier and this is sort of that Brian echo coming out of the show you have to echo coming out of the show you have to echo coming out of the show you have to make sure that when you make the choice make sure that when you make the choice make sure that when you make the choice to exit you really know what you're to exit you really know what you're to exit you really know what you're doing you know my notes on here I doing you know my notes on here I doing you know my notes on here I paraphrased I said we're all we're not paraphrased I said we're all we're not paraphrased I said we're all we're not all number we can't all leave the all number we can't all leave the all number we can't all leave the game come back and be a superstar that's game come back and be a superstar that's game come back and be a superstar that's just not the case if you choose to leave just not the case if you choose to leave just not the case if you choose to leave a career a high-paying career very a career a high-paying career very a career a high-paying career very lucrative career at the height just know lucrative career at the height just know lucrative career at the height just know that you might not be able to get back that you might not be able to get back that you might not be able to get back into that so you want to make sure you into that so you want to make sure you into that so you want to make sure you measure two three or four times and only measure two three or four times and only measure two three or four times and only have to cut once so okay so what are some things that we so okay so what are some things that we so okay so what are some things that we can do or what are some things if you're can do or what are some things if you're can do or what are some things if you're a financial independent person do to a financial independent person do to a financial independent person do to prepare what's kind of the checklist to prepare what's kind of the checklist to prepare what's kind of the checklist to make sure that you're setting yourself make sure that you're setting yourself make sure that you're setting yourself up for success so I think that if you're up for success so I think that if you're up for success so I think that if you're a hardcore fire follower you're probably a hardcore fire follower you're probably a hardcore fire follower you're probably test driving your budget all the time test driving your budget all the time test driving your budget all the time anyway because you've got your wall anyway because you've got your wall anyway because you've got your wall chart and you're looking at it all the chart and you're looking at it all the chart and you're looking at it all the time to see if you're in the right zone time to see if you're in the right zone time to see if you're in the right zone for your spending so but let's say that for your spending so but let's say that for your spending so but let's say that you want one spouse wants to retire you want one spouse wants to retire you want one spouse wants to retire early at forty and hang out and do early at forty and hang out and do early at forty and hang out and do things at home sure don't spend her things at home sure don't spend her things at home sure don't spend her income don't spend his income and see income don't spend his income and see income don't spend his income and see what it's like without it yeah test what it's like without it yeah test what it's like without it yeah test drive it while you've got it and if you drive it while you've got it and if you drive it while you've got it and if you think that you know you want to retire think that you know you want to retire think that you know you want to retire so that you can go hiking and go see all so that you can go hiking and go see all so that you can go hiking and go see all these places maybe go do some hiking on these places maybe go do some hiking on these places maybe go do some hiking on the weekends while you're still working the weekends while you're still working the weekends while you're still working to make sure that's something you to make sure that's something you to make sure that's something you actually do or go start doing home actually do or go start doing home actually do or go start doing home brewing the best thing you can do is brewing the best thing you can do is brewing the best thing you can do is test Rob that's another huge one that we test Rob that's another huge one that we test Rob that's another huge one that we do a fritz he said you have to test do a fritz he said you have to test do a fritz he said you have to test drive your retirement that's especially drive your retirement that's especially drive your retirement that's especially true for early retirement folks as well true for early retirement folks as well true for early retirement folks as well you said this you said put a plan of you said this you said put a plan of you said this you said put a plan of action together on paper that's right action together on paper that's right action together on paper that's right talk a little bit about that anytime talk a little bit about that anytime talk a little bit about that anytime that you put your goals down on paper we that you put your goals down on paper we that you put your goals down on paper we talked about this all the time it talked about this all the time it talked about this all the time it becomes more real and you have something becomes more real and you have something becomes more real and you have something to measure your success or your progress to measure your success or your progress to measure your success or your progress along the way so whether it's tracking along the way so whether it's tracking along the way so whether it's tracking your net worth or just putting a number your net worth or just putting a number your net worth or just putting a number for your portfolio value I have a client for your portfolio value I have a client for your portfolio value I have a client out in Washington every month they get out in Washington every month they get out in Washington every month they get together they talk about things and then together they talk about things and then together they talk about things and then they put their portfolio value in a they put their portfolio value in a they put their portfolio value in a little bitty corner on a magic erase little bitty corner on a magic erase little bitty corner on a magic erase board yeah on the refrigerator just to board yeah on the refrigerator just to board yeah on the refrigerator just to remind them yep that's awesome so so do remind them yep that's awesome so so do remind them yep that's awesome so so do little things to give yourself nuggets little things to give yourself nuggets little things to give yourself nuggets along the way I love it I tend to know along the way I love it I tend to know along the way I love it I tend to know what you're doing so when you write this what you're doing so when you write this what you're doing so when you write this when you write this plan down you think when you write this plan down you think when you write this plan down you think but if you find it's hard to stick to but if you find it's hard to stick to but if you find it's hard to stick to the plan it should be some red flags the plan it should be some red flags the plan it should be some red flags your spidey sense should go off if it's your spidey sense should go off if it's your spidey sense should go off if it's really hard to stick to a plan in the really hard to stick to a plan in the really hard to stick to a plan in the planning phase you may want to be planning phase you may want to be planning phase you may want to be nervous about your ability to stick to nervous about your ability to stick to nervous about your ability to stick to the plan in the actual implementation the plan in the actual implementation the plan in the actual implementation phase in the actual time of flash so let phase in the actual time of flash so let phase in the actual time of flash so let that let that be something now you said that let that be something now you said that let that be something now you said this she said be smart about the way you this she said be smart about the way you this she said be smart about the way you save and spend yeah absolutely so you save and spend yeah absolutely so you save and spend yeah absolutely so you have to turn around and go okay well have to turn around and go okay well have to turn around and go okay well even though I am gonna retire at even though I am gonna retire at even though I am gonna retire at conventional wisdom was hey I can't test conventional wisdom was hey I can't test conventional wisdom was hey I can't test my K dollars until fifty nine and a my K dollars until fifty nine and a my K dollars until fifty nine and a half you really need to read into that half you really need to read into that half you really need to read into that hit hit about what you can do down the hit hit about what you can do down the hit hit about what you can do down the road and in your s to start assuring road and in your s to start assuring road and in your s to start assuring money away from the K money away from the K money away from the K to your own wallet so yeah and I think to your own wallet so yeah and I think to your own wallet so yeah and I think the other one you said was make sure the other one you said was make sure the other one you said was make sure that you're not taking shortcuts and that you're not taking shortcuts and that you're not taking shortcuts and this is not one I had thought about but this is not one I had thought about but this is not one I had thought about but if I think about did my cereal example I if I think about did my cereal example I if I think about did my cereal example I was taking a shortcut I was like was taking a shortcut I was like was taking a shortcut I was like completely foregoing health and like any completely foregoing health and like any completely foregoing health and like any sort of like nutritious type of sort of like nutritious type of sort of like nutritious type of lifestyle to try to save money that lifestyle to try to save money that lifestyle to try to save money that woulda been a shortcut that would have woulda been a shortcut that would have woulda been a shortcut that would have had horrible implications had I seen had horrible implications had I seen had horrible implications had I seen that through until until now the thing I that through until until now the thing I that through until until now the thing I tell people all the time is you have to tell people all the time is you have to tell people all the time is you have to have umbrella insurance it shouldn't have umbrella insurance it shouldn't have umbrella insurance it shouldn't have an investment portfolio if you're have an investment portfolio if you're have an investment portfolio if you're in a high paying career field if you're in a high paying career field if you're in a high paying career field if you're a lawsuit candidate it's too cheap not a lawsuit candidate it's too cheap not a lawsuit candidate it's too cheap not to have yep don't try to save money in to have yep don't try to save money in to have yep don't try to save money in areas where they just does not make areas where they just does not make areas where they just does not make sense to save money yep so so okay so sense to save money yep so so okay so sense to save money yep so so okay so what what is our take what's the money what what is our take what's the money what what is our take what's the money guy take the amount off take on guy take the amount off take on guy take the amount off take on financial independence retire early financial independence retire early financial independence retire early movement if you really ask us to boil it movement if you really ask us to boil it movement if you really ask us to boil it down we love the FI part that's the part down we love the FI part that's the part down we love the FI part that's the part that we get used to part around that's that we get used to part around that's that we get used to part around that's the part that we get so excited about the part that we get so excited about the part that we get so excited about that's the part that we love talking to that's the part that we love talking to that's the part that we love talking to clients about we love financial clients about we love financial clients about we love financial independence but we also feel that independence but we also feel that independence but we also feel that meaningful work done well even if it's meaningful work done well even if it's meaningful work done well even if it's not a normal corporate job even if not a normal corporate job even if not a normal corporate job even if you're an accountant even if you plug you're an accountant even if you plug you're an accountant even if you plug into a fortune whatever that may be into a fortune whatever that may be into a fortune whatever that may be meaningful work can be incredibly meaningful work can be incredibly meaningful work can be incredibly fulfilling and you've heard this a fulfilling and you've heard this a fulfilling and you've heard this a thousand times and it's so cliche to say thousand times and it's so cliche to say thousand times and it's so cliche to say this if you love what you do is it this if you love what you do is it this if you love what you do is it really work if you don't love it are you really work if you don't love it are you really work if you don't love it are you doing the right thing have you figured doing the right thing have you figured doing the right thing have you figured out what's that thing I must put on this out what's that thing I must put on this out what's that thing I must put on this earth to do because what we've found and earth to do because what we've found and earth to do because what we've found and we've seen this over and over with we've seen this over and over with we've seen this over and over with clients is if you can find that thing clients is if you can find that thing clients is if you can find that thing that you were put on this earth to do that you were put on this earth to do that you were put on this earth to do and you can do it really really well you and you can do it really really well you and you can do it really really well you can be in the top ten percent of folks can be in the top ten percent of folks can be in the top ten percent of folks who do that it's amazing how the money who do that it's amazing how the money who do that it's amazing how the money kind of follows that yeah would you kind of follows that yeah would you kind of follows that yeah would you agree with that no absolutely I think agree with that no absolutely I think agree with that no absolutely I think people are more passionate about it sure people are more passionate about it sure people are more passionate about it sure and I think that it does have the and I think that it does have the and I think that it does have the rewards that come with it and a lot of rewards that come with it and a lot of rewards that come with it and a lot of times as you start become more times as you start become more times as you start become more financially independent you actually financially independent you actually financially independent you actually become a better person at your job yep become a better person at your job yep become a better person at your job yep and interacting with the people you deal and interacting with the people you deal and interacting with the people you deal with on a daily basis and really with on a daily basis and really with on a daily basis and really controlling you know kind of the way controlling you know kind of the way controlling you know kind of the way that you interact with your team and that you interact with your team and that you interact with your team and everybody around you you get you do it everybody around you you get you do it everybody around you you get you do it because you get to not because you have because you get to not because you have because you get to not because you have to there are some tenants that we love to there are some tenants that we love to there are some tenants that we love from the fire movement saving and from the fire movement saving and from the fire movement saving and spending wisely is good weather that's spending wisely is good weather that's spending wisely is good weather that's cheap fire frugal fire lean fire fat cheap fire frugal fire lean fire fat cheap fire frugal fire lean fire fat fire on fire off fire making good money fire on fire off fire making good money fire on fire off fire making good money two cities the good thing so we love two cities the good thing so we love two cities the good thing so we love that about the movement we also love the that about the movement we also love the that about the movement we also love the move towards simplicity try not to over move towards simplicity try not to over move towards simplicity try not to over complicate your financial life that's complicate your financial life that's complicate your financial life that's why our tagline at abound wealth is why our tagline at abound wealth is why our tagline at abound wealth is simple smart don't make things any more simple smart don't make things any more simple smart don't make things any more complicated have to be and I think one complicated have to be and I think one complicated have to be and I think one of the things the fire movement has done of the things the fire movement has done of the things the fire movement has done really really well is it's just really really well is it's just really really well is it's just simplified things you don't need it simplified things you don't need it simplified things you don't need it don't have it don't complicate it don't have it don't complicate it don't have it don't complicate it keeping your investment portfolio keeping your investment portfolio keeping your investment portfolio simplest key a well diversified simplest key a well diversified simplest key a well diversified portfolio has historically performed portfolio has historically performed portfolio has historically performed really complicated strategies if you really complicated strategies if you really complicated strategies if you don't believe us go check out the Dow don't believe us go check out the Dow don't believe us go check out the Dow bar studies go listen to some of our bar studies go listen to some of our bar studies go listen to some of our shows it's just not that hard to do and shows it's just not that hard to do and shows it's just not that hard to do and then this was one that you put in their then this was one that you put in their then this was one that you put in their game I thought was beautiful game I thought was beautiful game I thought was beautiful you said building financial independence you said building financial independence you said building financial independence is about limiting mistakes that's right is about limiting mistakes that's right is about limiting mistakes that's right and I kind of stole that from Warren and I kind of stole that from Warren and I kind of stole that from Warren because he said that their success is because he said that their success is because he said that their success is measured by the amount of wrong measured by the amount of wrong measured by the amount of wrong decisions they did in May yeah her decisions they did in May yeah her decisions they did in May yeah her something I probably butchered that something I probably butchered that something I probably butchered that quote but it wasn't as many decisions quote but it wasn't as many decisions quote but it wasn't as many decisions they got right rather than limiting the they got right rather than limiting the they got right rather than limiting the number of bad decisions sure and I think number of bad decisions sure and I think number of bad decisions sure and I think this is this is sort of the way that this is this is sort of the way that this is this is sort of the way that we'll close and I think this is a we'll close and I think this is a we'll close and I think this is a beautiful I think the biggest thing that beautiful I think the biggest thing that beautiful I think the biggest thing that we got out of our research and as we've we got out of our research and as we've we got out of our research and as we've got just working with folks who are part got just working with folks who are part got just working with folks who are part of this movement who participate in this of this movement who participate in this of this movement who participate in this sort of lifestyle is that balance is sort of lifestyle is that balance is sort of lifestyle is that balance is important fire folks place a lot of important fire folks place a lot of important fire folks place a lot of value on what you're sacrificing in the value on what you're sacrificing in the value on what you're sacrificing in the present for what you can have in the present for what you can have in the present for what you can have in the future but you need to recognize that if future but you need to recognize that if future but you need to recognize that if you're someone who's always sacrificing you're someone who's always sacrificing you're someone who's always sacrificing now for something that maybe in the now for something that maybe in the now for something that maybe in the future you're missing it future you're missing it future you're missing it if you're somebody who's not sacrificing if you're somebody who's not sacrificing if you're somebody who's not sacrificing at all now thinking about the future at all now thinking about the future at all now thinking about the future you're gonna miss it the the key you're gonna miss it the the key you're gonna miss it the the key probably lies somewhere in the middle probably lies somewhere in the middle probably lies somewhere in the middle how do i balance both and where do I how do i balance both and where do I how do i balance both and where do I place my values where's my value system place my values where's my value system place my values where's my value system where's my belief system what I think is where's my belief system what I think is where's my belief system what I think is beautiful about what we get to do is beautiful about what we get to do is beautiful about what we get to do is that now you guys listen the show if that now you guys listen the show if that now you guys listen the show if you're out there listening to the money you're out there listening to the money you're out there listening to the money guy show if you're someone who watches guy show if you're someone who watches guy show if you're someone who watches us on YouTube if you're someone who us on YouTube if you're someone who us on YouTube if you're someone who likes to hit your microphone in the likes to hit your microphone in the likes to hit your microphone in the middle of a sentence if you're someone middle of a sentence if you're someone middle of a sentence if you're someone who does any of that sort of thing you who does any of that sort of thing you who does any of that sort of thing you probably already have this balance you probably already have this balance you probably already have this balance you probably already are thinking this way probably already are thinking this way probably already are thinking this way we love that we get to connect with you we love that we get to connect with you we love that we get to connect with you we love that you get to come in here we love that you get to come in here we love that you get to come in here check in with us we get to talk about check in with us we get to talk about check in with us we get to talk about this and we learn a lot from you guys this and we learn a lot from you guys this and we learn a lot from you guys you said Gabe you have clients who send you said Gabe you have clients who send you said Gabe you have clients who send you spreadsheets sometime and you're you spreadsheets sometime and you're you spreadsheets sometime and you're just like right mind blowing just like right mind blowing just like right mind blowing we just think that it's awesome that we we just think that it's awesome that we we just think that it's awesome that we get too heavy a part of this community I get too heavy a part of this community I get too heavy a part of this community I don't know that the money guy family is don't know that the money guy family is don't know that the money guy family is necessarily financial independence necessarily financial independence necessarily financial independence retire early but we are financial retire early but we are financial retire early but we are financial independence so you can do what you want independence so you can do what you want independence so you can do what you want to do when you want to do the way you to do when you want to do the way you to do when you want to do the way you want to do it and I think that's a want to do it and I think that's a want to do it and I think that's a beautiful beautiful way to say it if you beautiful beautiful way to say it if you beautiful beautiful way to say it if you haven't subscribed oh my goodness we are haven't subscribed oh my goodness we are haven't subscribed oh my goodness we are four subscribers away if we do not hit four subscribers away if we do not hit four subscribers away if we do not hit it Gabe has to buy me dinner so I'm it Gabe has to buy me dinner so I'm it Gabe has to buy me dinner so I'm gonna shut this down really we're gonna gonna shut this down really we're gonna gonna shut this down really we're gonna no we're gonna do QA oh we are gonna do no we're gonna do QA oh we are gonna do no we're gonna do QA oh we are gonna do QA that's right if you're if you're QA that's right if you're if you're QA that's right if you're if you're listening to us out on iTunes listening to us out on iTunes listening to us out on iTunes iHeartRadio stitch or anywhere that you iHeartRadio stitch or anywhere that you iHeartRadio stitch or anywhere that you listen to us every other Tuesday night listen to us every other Tuesday night listen to us every other Tuesday night at : central we do a live stream we at : central we do a live stream we at : central we do a live stream we have a live Q&A that goes where you can have a live Q&A that goes where you can have a live Q&A that goes where you can actually interact with the folks in the actually interact with the folks in the actually interact with the folks in the back studio you can interact with me back studio you can interact with me back studio you can interact with me when I'm not talking so much I'll when I'm not talking so much I'll when I'm not talking so much I'll actually try to tie it back to you we actually try to tie it back to you we actually try to tie it back to you we love love love to do this and then after love love love to do this and then after love love love to do this and then after we stop recording after the cameras go we stop recording after the cameras go we stop recording after the cameras go off we actually do a live Q&A where you off we actually do a live Q&A where you off we actually do a live Q&A where you might even be able to get some swag if might even be able to get some swag if might even be able to get some swag if you haven't gone out to the website go you haven't gone out to the website go you haven't gone out to the website go to the website money guide.com go out to the website money guide.com go out to the website money guide.com go out there and give us your email address if there and give us your email address if there and give us your email address if you do that not only will you get you do that not only will you get you do that not only will you get deliverables that we only make available deliverables that we only make available deliverables that we only make available to our email list but you'll get to our email list but you'll get to our email list but you'll get notified every time that we are sending notified every time that we are sending notified every time that we are sending something out putting out new something out putting out new something out putting out new information if you haven't subscribed on information if you haven't subscribed on information if you haven't subscribed on YouTube make sure you do that click on YouTube make sure you do that click on YouTube make sure you do that click on the bell so you get notifications and we the bell so you get notifications and we the bell so you get notifications and we just are so thankful that you allowed us just are so thankful that you allowed us just are so thankful that you allowed us to come in talk about this movement if to come in talk about this movement if to come in talk about this movement if you have some interesting stories topics you have some interesting stories topics you have some interesting stories topics ideas thoughts experience with the fire ideas thoughts experience with the fire ideas thoughts experience with the fire movement let us know if you are someone movement let us know if you are someone movement let us know if you are someone who subscribes this movement you think who subscribes this movement you think who subscribes this movement you think you know what I've done a pretty good you know what I've done a pretty good you know what I've done a pretty good job I feel like I've got most of my job I feel like I've got most of my job I feel like I've got most of my things in order but man you got set some things in order but man you got set some things in order but man you got set some stuff that I hadn't even thought about stuff that I hadn't even thought about stuff that I hadn't even thought about you talked about Roth conversions and you talked about Roth conversions and you talked about Roth conversions and you talked about mega backdoor Roth and you talked about mega backdoor Roth and you talked about mega backdoor Roth and what's this umbrella insurance we'd love what's this umbrella insurance we'd love what's this umbrella insurance we'd love to talk to you we believe in the to talk to you we believe in the to talk to you we believe in the abundance cycle our goal is we want to abundance cycle our goal is we want to abundance cycle our goal is we want to give it away to you guys for free we give it away to you guys for free we give it away to you guys for free we want you to take it use it grow and then want you to take it use it grow and then want you to take it use it grow and then when it's time for you to take in the when it's time for you to take in the when it's time for you to take in the next level we want you to reach out now next level we want you to reach out now next level we want you to reach out now you're looking at the guys that you work you're looking at the guys that you work you're looking at the guys that you work with whether it's Brian whether it's gay with whether it's Brian whether it's gay with whether it's Brian whether it's gay whether it's me with us cops whether it's me with us cops whether it's me with us cops any of our team members this is the team any of our team members this is the team any of our team members this is the team that gets to help you guys and we were that gets to help you guys and we were that gets to help you guys and we were just so thankful we could do that Gabe I just so thankful we could do that Gabe I just so thankful we could do that Gabe I want to thank you for coming on and want to thank you for coming on and want to thank you for coming on and being our in-house fire expert we love being our in-house fire expert we love being our in-house fire expert we love having you here I didn't realize I think having you here I didn't realize I think having you here I didn't realize I think you told me the last time here on the you told me the last time here on the you told me the last time here on the show is show is show is is something like that good before is something like that good before is something like that good before camera yeah there's a lot different camera yeah there's a lot different camera yeah there's a lot different along we did it before awesome so thank along we did it before awesome so thank along we did it before awesome so thank you thank you thank you guys so much you thank you thank you guys so much you thank you thank you guys so much there's a long one Wow there's a long one Wow there's a long one Wow we just crossed over for dinner is on we just crossed over for dinner is on we just crossed over for dinner is on me thank you thank you guys Taco Bell me thank you thank you guys Taco Bell me thank you thank you guys Taco Bell for Gabe foreshore thank you guys thank for Gabe foreshore thank you guys thank for Gabe foreshore thank you guys thank you so much we will be back in in about you so much we will be back in in about you so much we will be back in in about a week to talk with you guys stay tuned a week to talk with you guys stay tuned a week to talk with you guys stay tuned for the QA and we will answer some for the QA and we will answer some for the QA and we will answer some questions give away some swag I'm your questions give away some swag I'm your questions give away some swag I'm your co-host bo Hanson along with Bart co-host bo Hanson along with Bart co-host bo Hanson along with Bart special guest Gabe Talley WEBVTT Kind: captions Language: en [Music] [Music] [Music] so I'm Gillian John through I live in so I'm Gillian John through I live in so I'm Gillian John through I live in for the Flathead Valley in Montana right for the Flathead Valley in Montana right for the Flathead Valley in Montana right at cyclisation National Park with my at cyclisation National Park with my at cyclisation National Park with my husband and my five kids so the fire husband and my five kids so the fire husband and my five kids so the fire movement stands for financial movement stands for financial movement stands for financial independence retire early when my independence retire early when my independence retire early when my husband and I first got married the fire husband and I first got married the fire husband and I first got married the fire acronym wasn't a thing but I knew that acronym wasn't a thing but I knew that acronym wasn't a thing but I knew that we wanted more financial freedom and we wanted more financial freedom and we wanted more financial freedom and because we were never high earners we because we were never high earners we because we were never high earners we couldn't say well we'll just spend lots couldn't say well we'll just spend lots couldn't say well we'll just spend lots of money on everything like we were we of money on everything like we were we of money on everything like we were we weren't gonna have that option me and my weren't gonna have that option me and my weren't gonna have that option me and my husband never earn six figures together husband never earn six figures together husband never earn six figures together so we had to see what really matters and so we had to see what really matters and so we had to see what really matters and we'll invest money there and then just we'll invest money there and then just we'll invest money there and then just say no to everything else say no to everything else say no to everything else [Music] one of my goals had always been to be one of my goals had always been to be one of my goals had always been to be able to pay cash for a house so instead able to pay cash for a house so instead able to pay cash for a house so instead of buying a really nice $, house of buying a really nice $, house of buying a really nice $, house or a really decent hundred thousand or a really decent hundred thousand or a really decent hundred thousand dollar house at the time dollar house at the time dollar house at the time we bought the ugliest house that we we bought the ugliest house that we we bought the ugliest house that we could find because it was only fifty could find because it was only fifty could find because it was only fifty thousand dollars and figured out how to thousand dollars and figured out how to thousand dollars and figured out how to renovate it this is in our basement and renovate it this is in our basement and renovate it this is in our basement and it actually flooded so water had gone up it actually flooded so water had gone up it actually flooded so water had gone up to about this level it was covered in to about this level it was covered in to about this level it was covered in black gold so they dropped the price black gold so they dropped the price black gold so they dropped the price another twenty thousand and we came in another twenty thousand and we came in another twenty thousand and we came in rented like gas masks spirit did a dump rented like gas masks spirit did a dump rented like gas masks spirit did a dump truck we used event and we just tore out truck we used event and we just tore out truck we used event and we just tore out this whole space in two days so it was this whole space in two days so it was this whole space in two days so it was like the most profitable two days of our like the most profitable two days of our like the most profitable two days of our life by deciding to buy the really life by deciding to buy the really life by deciding to buy the really disgusting fifty thousand dollar house disgusting fifty thousand dollar house disgusting fifty thousand dollar house he didn't able this to buy our first he didn't able this to buy our first he didn't able this to buy our first rental property like five months later rental property like five months later rental property like five months later and it wasn't it wasn't an easy choice and it wasn't it wasn't an easy choice and it wasn't it wasn't an easy choice getting out of house sleeping on the getting out of house sleeping on the getting out of house sleeping on the wooden floors it was actually a really wooden floors it was actually a really wooden floors it was actually a really hard year of our life but it enabled us hard year of our life but it enabled us hard year of our life but it enabled us like those hard choices gave us the like those hard choices gave us the like those hard choices gave us the amazing life so we have now so the fire movement is the idea that we so the fire movement is the idea that we so the fire movement is the idea that we grow our financial independence to the grow our financial independence to the grow our financial independence to the point where we can retire earthly point where we can retire earthly point where we can retire earthly financial independence essentially means financial independence essentially means financial independence essentially means that your stocks your rental income that your stocks your rental income that your stocks your rental income pensions any passive income that you pensions any passive income that you pensions any passive income that you have coming in it can cover all of your have coming in it can cover all of your have coming in it can cover all of your expenses expenses expenses right now we have income from three right now we have income from three right now we have income from three different sources we have atoms military different sources we have atoms military different sources we have atoms military pension which is we have our rental pension which is we have our rental pension which is we have our rental income which is $, a month and if we income which is $, a month and if we income which is $, a month and if we pull % from our investments which is pull % from our investments which is pull % from our investments which is kind of a % rule that's about $ [Music] [Music] [Music] because we don't have student loans we because we don't have student loans we because we don't have student loans we don't have credit card debt we don't don't have credit card debt we don't don't have credit card debt we don't have a mortgage we don't have a car have a mortgage we don't have a car have a mortgage we don't have a car payment our core bills each month are payment our core bills each month are payment our core bills each month are about $ and those include things like about $ and those include things like about $ and those include things like property taxes which are about our property taxes which are about our property taxes which are about our homeowners insurance my cell phone is homeowners insurance my cell phone is homeowners insurance my cell phone is seven dental insurance is fifty Netflix seven dental insurance is fifty Netflix seven dental insurance is fifty Netflix is ten or who they went up Netflix is is ten or who they went up Netflix is is ten or who they went up Netflix is like thirteen now you see all of those like thirteen now you see all of those like thirteen now you see all of those expenses come to about we spend expenses come to about we spend expenses come to about we spend about on groceries and then we have about on groceries and then we have about on groceries and then we have another for for whatever so our another for for whatever so our another for for whatever so our baseline expenses come to about , a baseline expenses come to about , a baseline expenses come to about , a month with our expenses we currently month with our expenses we currently month with our expenses we currently only need to live on two of the three only need to live on two of the three only need to live on two of the three incomes so if one of them disappears or incomes so if one of them disappears or incomes so if one of them disappears or goes belly-up we'll still be fine it goes belly-up we'll still be fine it goes belly-up we'll still be fine it also gives us freedom for our expenses also gives us freedom for our expenses also gives us freedom for our expenses to grow as our kids grow as they get to grow as our kids grow as they get to grow as our kids grow as they get into high school and we're adding adding into high school and we're adding adding into high school and we're adding adding more expenses for them we have a large more expenses for them we have a large more expenses for them we have a large cushion that our expenses can grow so one of the ways that we really help so one of the ways that we really help so one of the ways that we really help keep our kid cost down is that we just keep our kid cost down is that we just keep our kid cost down is that we just buy big lots of used clothes my friend buy big lots of used clothes my friend buy big lots of used clothes my friend Jessica Jessica Jessica once her daughter grows out of stuff she once her daughter grows out of stuff she once her daughter grows out of stuff she just throws it in a big box for bucks just throws it in a big box for bucks just throws it in a big box for bucks and not only is it way cheaper like I and not only is it way cheaper like I and not only is it way cheaper like I know a lot of people spend a hundred know a lot of people spend a hundred know a lot of people spend a hundred bucks a month on their kids but it's so bucks a month on their kids but it's so bucks a month on their kids but it's so much easier like we don't have to go out much easier like we don't have to go out much easier like we don't have to go out and shopping I don't have to shop sales and shopping I don't have to shop sales and shopping I don't have to shop sales I don't have to go to yard sales or I don't have to go to yard sales or I don't have to go to yard sales or thrift stores like the clothes are thrift stores like the clothes are thrift stores like the clothes are literally delivered to me and I'll see literally delivered to me and I'll see literally delivered to me and I'll see if there's some cat clothes and one of if there's some cat clothes and one of if there's some cat clothes and one of the books I had read the author talked the books I had read the author talked the books I had read the author talked about how he just kept all of his food about how he just kept all of his food about how he just kept all of his food items to a dollar a pound and instead of items to a dollar a pound and instead of items to a dollar a pound and instead of trying to shop every sale or clip trying to shop every sale or clip trying to shop every sale or clip coupons this is gonna be a really simple coupons this is gonna be a really simple coupons this is gonna be a really simple way for me to just naturally lower the way for me to just naturally lower the way for me to just naturally lower the cost of our food so one of our big motivations to achieve so one of our big motivations to achieve so one of our big motivations to achieve financial independence was that we financial independence was that we financial independence was that we wanted to travel and we wanted to take wanted to travel and we wanted to take wanted to travel and we wanted to take our kids on amazing adventures and show our kids on amazing adventures and show our kids on amazing adventures and show national parks national parks national parks last year we did a -week trip with our last year we did a -week trip with our last year we did a -week trip with our kids we took up to different national kids we took up to different national kids we took up to different national parks in the West and for us that's like parks in the West and for us that's like parks in the West and for us that's like the richness of life with a camper we the richness of life with a camper we the richness of life with a camper we are able to rent out our house while we are able to rent out our house while we are able to rent out our house while we are gone and renting out our house are gone and renting out our house are gone and renting out our house covers a hundred percent of our travel covers a hundred percent of our travel covers a hundred percent of our travel cost so we essentially could travel cost so we essentially could travel cost so we essentially could travel year-round for the exact same price that year-round for the exact same price that year-round for the exact same price that we live here now we love having a home we live here now we love having a home we live here now we love having a home base but this really allows us to go out base but this really allows us to go out base but this really allows us to go out to explore the country and it it not be to explore the country and it it not be to explore the country and it it not be a huge expense we'd have these amazing a huge expense we'd have these amazing a huge expense we'd have these amazing experiences where they really have some experiences where they really have some experiences where they really have some of that that joy and that fun like you of that that joy and that fun like you of that that joy and that fun like you imagine people have when they're imagine people have when they're imagine people have when they're spending $, a year on their spending $, a year on their spending $, a year on their lifestyle we won't have the same fun lifestyle we won't have the same fun lifestyle we won't have the same fun just for less money just for less money just for less money [Music] you WEBVTT Kind: captions Language: en we try not to look at our numbers too we try not to look at our numbers too we try not to look at our numbers too often just naturally because we don't often just naturally because we don't often just naturally because we don't necessarily need that day-to-day necessarily need that day-to-day necessarily need that day-to-day feedback but I mean I have the feedback but I mean I have the feedback but I mean I have the stockmarket page open right now because stockmarket page open right now because stockmarket page open right now because it is a very volatile time it was down it is a very volatile time it was down it is a very volatile time it was down big yesterday then it was up somewhat big yesterday then it was up somewhat big yesterday then it was up somewhat today a big the day before yesterday today a big the day before yesterday today a big the day before yesterday then down before that and I think we've then down before that and I think we've then down before that and I think we've lost about a hundred and twenty thousand lost about a hundred and twenty thousand lost about a hundred and twenty thousand or so over the over the last few days or so over the over the last few days or so over the over the last few days [Music] [Music] [Music] I'm Steve I'm Courtney and we are thirty I'm Steve I'm Courtney and we are thirty I'm Steve I'm Courtney and we are thirty eight and thirty five-year-old early eight and thirty five-year-old early eight and thirty five-year-old early retirees living out in the middle of the retirees living out in the middle of the retirees living out in the middle of the desert in an off-grid house so we met we desert in an off-grid house so we met we desert in an off-grid house so we met we both had full-time jobs working in IT both had full-time jobs working in IT both had full-time jobs working in IT when we decided to get married and move when we decided to get married and move when we decided to get married and move in together we all of a sudden had two in together we all of a sudden had two in together we all of a sudden had two very good incomes for Tucson two homes very good incomes for Tucson two homes very good incomes for Tucson two homes and that's where we had to ask ourselves and that's where we had to ask ourselves and that's where we had to ask ourselves a question we could either live like a question we could either live like a question we could either live like rock stars and expensive vacations rock stars and expensive vacations rock stars and expensive vacations expensive meals or we can save the expensive meals or we can save the expensive meals or we can save the majority of what we earn and decide what majority of what we earn and decide what majority of what we earn and decide what to do with the rest of our lives then we to do with the rest of our lives then we to do with the rest of our lives then we started saving pretty aggressively we started saving pretty aggressively we started saving pretty aggressively we did did did [Music] [Music] [Music] we paid seventy one thousand five we paid seventy one thousand five we paid seventy one thousand five hundred dollars for the house and then hundred dollars for the house and then hundred dollars for the house and then very quickly added our solar system that very quickly added our solar system that very quickly added our solar system that Steve did completely which was another Steve did completely which was another Steve did completely which was another twenty five thousand dollars what twenty five thousand dollars what twenty five thousand dollars what appealed to us about the house was the appealed to us about the house was the appealed to us about the house was the price the acreage and the square footage price the acreage and the square footage price the acreage and the square footage of the house because we didn't want of the house because we didn't want of the house because we didn't want something big but we wanted enough something big but we wanted enough something big but we wanted enough property to let us spread out a little property to let us spread out a little property to let us spread out a little bit and then location because of the bit and then location because of the bit and then location because of the community and the off grid part of it no community and the off grid part of it no community and the off grid part of it no electrical ties no water no sore no electrical ties no water no sore no electrical ties no water no sore no trash no cable that saves us at least trash no cable that saves us at least trash no cable that saves us at least to dollars a month because we to dollars a month because we to dollars a month because we live off grid as we sit today we're down , as we sit today we're down , as we sit today we're down , dollars after this whole market dollars after this whole market dollars after this whole market fluctuation that's happening so we're fluctuation that's happening so we're fluctuation that's happening so we're almost at a million dollars now a little almost at a million dollars now a little almost at a million dollars now a little bit above we were up to . but we're bit above we were up to . but we're bit above we were up to . but we're prepared for that and we know that's prepared for that and we know that's prepared for that and we know that's gonna happen and well that's the nature gonna happen and well that's the nature gonna happen and well that's the nature and the risk of being heavily invested and the risk of being heavily invested and the risk of being heavily invested in the stock market because when the in the stock market because when the in the stock market because when the stock market does well we do well but stock market does well we do well but stock market does well we do well but when it doesn't we don't and that's when it doesn't we don't and that's when it doesn't we don't and that's that's a part that risk is essentially a that's a part that risk is essentially a that's a part that risk is essentially a part of what we agreed to informally as part of what we agreed to informally as part of what we agreed to informally as we went through our fire plan fire we went through our fire plan fire we went through our fire plan fire stands for financial independence retire stands for financial independence retire stands for financial independence retire early to different concepts about early to different concepts about early to different concepts about acquiring the money you need to sustain acquiring the money you need to sustain acquiring the money you need to sustain your lifestyle for the rest of your life your lifestyle for the rest of your life your lifestyle for the rest of your life while standing a reasonably good chance while standing a reasonably good chance while standing a reasonably good chance of never having to earn another dime of of never having to earn another dime of of never having to earn another dime of income again how much money we needed to income again how much money we needed to income again how much money we needed to save to retire early was very dependent save to retire early was very dependent save to retire early was very dependent on how we were gonna live once we on how we were gonna live once we on how we were gonna live once we retired early retired early retired early that was about , a year and that that was about , a year and that that was about , a year and that made it so we could figure out our fire made it so we could figure out our fire made it so we could figure out our fire number using the % number using the % number using the % [Music] [Music] [Music] so the fixed cost that we have to do so the fixed cost that we have to do so the fixed cost that we have to do every month are a little over $, we every month are a little over $, we every month are a little over $, we know we have some other costs coming up know we have some other costs coming up know we have some other costs coming up this year vet appointments automotive this year vet appointments automotive this year vet appointments automotive stuff and airstream repairs the rest is stuff and airstream repairs the rest is stuff and airstream repairs the rest is our fun money that flexes based on the our fun money that flexes based on the our fun money that flexes based on the market that's how if the markets not market that's how if the markets not market that's how if the markets not doing well and our net worth shrinks doing well and our net worth shrinks doing well and our net worth shrinks then our % also shrinks and we very then our % also shrinks and we very then our % also shrinks and we very easily can scale back the fund money and easily can scale back the fund money and easily can scale back the fund money and just be a little bit more frugal on just be a little bit more frugal on just be a little bit more frugal on those things for a few months or however those things for a few months or however those things for a few months or however long it takes I guess in some ways the fire community I guess in some ways the fire community I guess in some ways the fire community is kind of a fad in that well a lot of is kind of a fad in that well a lot of is kind of a fad in that well a lot of people have realized how much money they people have realized how much money they people have realized how much money they could save and make but only when the could save and make but only when the could save and make but only when the markets been good so I think a lot of markets been good so I think a lot of markets been good so I think a lot of people might realize if they've never people might realize if they've never people might realize if they've never been through a recession before what been through a recession before what been through a recession before what this does to your net worth what this this does to your net worth what this this does to your net worth what this does to your level of comfort that you does to your level of comfort that you does to your level of comfort that you have enough money key is to build an have enough money key is to build an have enough money key is to build an efficient support system for when you efficient support system for when you efficient support system for when you don't have all that money coming in don't have all that money coming in don't have all that money coming in whether that's cost of living you keep whether that's cost of living you keep whether that's cost of living you keep that down moving to another place that down moving to another place that down moving to another place maybe it's taken on some more work maybe maybe it's taken on some more work maybe maybe it's taken on some more work maybe it's a side hustle whatever that looks it's a side hustle whatever that looks it's a side hustle whatever that looks like don't just assume that the markets like don't just assume that the markets like don't just assume that the markets always going to be great because as always going to be great because as always going to be great because as we've seen recently clearly it's not we've seen recently clearly it's not we've seen recently clearly it's not [Music] I don't like pushing fire on people I don't like pushing fire on people I don't like pushing fire on people because it's not gonna be right for because it's not gonna be right for because it's not gonna be right for everybody I do push the fi part I do not everybody I do push the fi part I do not everybody I do push the fi part I do not push the re part because like we've said push the re part because like we've said push the re part because like we've said some people get incredible value out of some people get incredible value out of some people get incredible value out of their jobs and there's nothing wrong their jobs and there's nothing wrong their jobs and there's nothing wrong with that you hug those people out with that you hug those people out with that you hug those people out whatever the FI part the financial whatever the FI part the financial whatever the FI part the financial independence part or the financial independence part or the financial independence part or the financial freedom however you want to determine it freedom however you want to determine it freedom however you want to determine it gives you options because you may no gives you options because you may no gives you options because you may no longer like your job next year and if longer like your job next year and if longer like your job next year and if you are financially independent orally you are financially independent orally you are financially independent orally as close to it you can choose to do as close to it you can choose to do as close to it you can choose to do something else with your time if it something else with your time if it something else with your time if it comes to that you have no idea what's comes to that you have no idea what's comes to that you have no idea what's gonna happen in in the future and if gonna happen in in the future and if gonna happen in in the future and if you're fi that gives you a lot of you're fi that gives you a lot of you're fi that gives you a lot of choices choices choices [Music] WEBVTT Kind: captions Language: en i'm julian johns road i live in montana i'm julian johns road i live in montana i'm julian johns road i live in montana with my five kids with my five kids with my five kids and i'm part of the fire movement and i'm part of the fire movement and i'm part of the fire movement [Music] [Music] [Music] this has really re-shaped and kind of this has really re-shaped and kind of this has really re-shaped and kind of resparked my passion for the fire resparked my passion for the fire resparked my passion for the fire movement movement movement it took hold in the recession it took hold in the recession it took hold in the recession we had a time where everyone had we had a time where everyone had we had a time where everyone had followed the rules followed the rules followed the rules and lost everything and i think that and lost everything and i think that and lost everything and i think that created the spark of maybe these rules created the spark of maybe these rules created the spark of maybe these rules aren't working aren't working aren't working maybe i should look for some a different maybe i should look for some a different maybe i should look for some a different set of rules to follow and i think this set of rules to follow and i think this set of rules to follow and i think this pandemic is pandemic is pandemic is going to create that same kind of going to create that same kind of going to create that same kind of what i've been pitched what what i've what i've been pitched what what i've what i've been pitched what what i've the bill of goods i've been sold here the bill of goods i've been sold here the bill of goods i've been sold here isn't isn't what i want isn't isn't what i want isn't isn't what i want [Music] for a lot of people we can kind of for a lot of people we can kind of for a lot of people we can kind of divide it into two camps the people who divide it into two camps the people who divide it into two camps the people who haven't haven't haven't been maybe playing good defense with been maybe playing good defense with been maybe playing good defense with their finances they haven't been their finances they haven't been their finances they haven't been budgeting they haven't been tracking budgeting they haven't been tracking budgeting they haven't been tracking expenses like they don't know their net expenses like they don't know their net expenses like they don't know their net worth worth worth and then the people who've been playing and then the people who've been playing and then the people who've been playing good really good defense good really good defense good really good defense and doing all of those things which we and doing all of those things which we and doing all of those things which we were doing all of those things were doing all of those things were doing all of those things and then we can kind of use this time of and then we can kind of use this time of and then we can kind of use this time of disruption disruption disruption to think more long term saying where do to think more long term saying where do to think more long term saying where do we want to be in three years are there we want to be in three years are there we want to be in three years are there any big changes any big changes any big changes and are there any opportunities and are there any opportunities and are there any opportunities financially now financially now financially now to to kind of set ourselves up for that to to kind of set ourselves up for that to to kind of set ourselves up for that we bought a camper two years ago and if we bought a camper two years ago and if we bought a camper two years ago and if i would have known that would have been i would have known that would have been i would have known that would have been a corona various i would have waited a corona various i would have waited a corona various i would have waited because oftentimes during these kinds of because oftentimes during these kinds of because oftentimes during these kinds of recessions recessions recessions at things that are not necessary like at things that are not necessary like at things that are not necessary like campers and motorcycles and recreational campers and motorcycles and recreational campers and motorcycles and recreational vehicles vehicles vehicles have become a lot more affordable we don't have to make any changes that's we don't have to make any changes that's we don't have to make any changes that's for sure but for sure but for sure but you know we are thinking what are some you know we are thinking what are some you know we are thinking what are some things that we could do that would make things that we could do that would make things that we could do that would make sense long term sense long term sense long term we have probably two years worth of cash we have probably two years worth of cash we have probably two years worth of cash uh so we don't have to you know when the uh so we don't have to you know when the uh so we don't have to you know when the stock market dropped and it was like stock market dropped and it was like stock market dropped and it was like percent lower we're like oh my gosh percent lower we're like oh my gosh percent lower we're like oh my gosh we had no need to pull money out we we had no need to pull money out we we had no need to pull money out we didn't have to pull money out and we didn't have to pull money out and we didn't have to pull money out and we would not have pulled money out would not have pulled money out would not have pulled money out because we had all of these other because we had all of these other because we had all of these other options to kind of weather those options to kind of weather those options to kind of weather those those downturns that is one advantage of having that that is one advantage of having that that is one advantage of having that diversification diversification diversification we try to keep our net worth about half we try to keep our net worth about half we try to keep our net worth about half and half and half and half we've been strongly tilted towards real we've been strongly tilted towards real we've been strongly tilted towards real estate though estate though estate though which is one of the reasons that we're which is one of the reasons that we're which is one of the reasons that we're making some of these long-term switches making some of these long-term switches making some of these long-term switches to kind of bring that back to kind of bring that back to kind of bring that back to again but with real estate or to again but with real estate or to again but with real estate or the stock market the stock market the stock market you don't really lose money unless you you don't really lose money unless you you don't really lose money unless you sell i stopped looking at the numbers but i i stopped looking at the numbers but i i stopped looking at the numbers but i remember that from you know we had remember that from you know we had remember that from you know we had pushed pushed pushed a hundred thousand dollars into the a hundred thousand dollars into the a hundred thousand dollars into the market in market in market in you know you can know all the things you you know you can know all the things you you know you can know all the things you can know all the sayings like stocks are can know all the sayings like stocks are can know all the sayings like stocks are on sale or buy on sale or buy on sale or buy low but watching those numbers drop low but watching those numbers drop low but watching those numbers drop still makes you want to vomit like it's still makes you want to vomit like it's still makes you want to vomit like it's just just just horrifying just stop looking at the horrifying just stop looking at the horrifying just stop looking at the numbers if you're not numbers if you're not numbers if you're not going to sell if this is not part of going to sell if this is not part of going to sell if this is not part of your long-term plan your long-term plan your long-term plan um you don't have to check it this pandemic is a great example of how this pandemic is a great example of how this pandemic is a great example of how sometimes it's nice to have more options sometimes it's nice to have more options sometimes it's nice to have more options so so so while i will not say it's easy to while i will not say it's easy to while i will not say it's easy to quarantine school five kids it's been so quarantine school five kids it's been so quarantine school five kids it's been so much better in that we're not much better in that we're not much better in that we're not both juggling really demanding both juggling really demanding both juggling really demanding jobs some of our spending did go down like some of our spending did go down like some of our spending did go down like travel and some of our spending went up travel and some of our spending went up travel and some of our spending went up you know during this pandemic we said we you know during this pandemic we said we you know during this pandemic we said we have the the margin in our budget have the the margin in our budget have the the margin in our budget to spend more so let's spend a little to spend more so let's spend a little to spend more so let's spend a little bit more bit more bit more to make our general experience better the theme for this season is going to be the theme for this season is going to be the theme for this season is going to be ten year ten year ten year time capsule we did poll four percent time capsule we did poll four percent time capsule we did poll four percent last year i don't think that we will last year i don't think that we will last year i don't think that we will this year just because there is so much this year just because there is so much this year just because there is so much volatility volatility volatility in the market they you know any extra in the market they you know any extra in the market they you know any extra that we have that we have that we have will probably just invest and let it will probably just invest and let it will probably just invest and let it ride out another year or so ride out another year or so ride out another year or so you don't need a million dollars to have you don't need a million dollars to have you don't need a million dollars to have some financial security some financial security some financial security just having in cash right now just having in cash right now just having in cash right now in cash can make this whole in cash can make this whole in cash can make this whole situation situation situation feel a lot less stressful i think this feel a lot less stressful i think this feel a lot less stressful i think this is a great is a great is a great time to kind of lean into that time to kind of lean into that time to kind of lean into that discomfort discomfort discomfort and say i want to change my relationship and say i want to change my relationship and say i want to change my relationship with money with money with money you know starting to just track your you know starting to just track your you know starting to just track your expenses starting to create a plan for expenses starting to create a plan for expenses starting to create a plan for your money really engaging with your your money really engaging with your your money really engaging with your finances finances finances a lot of the reasons that the people a lot of the reasons that the people a lot of the reasons that the people struggle with their finances is they struggle with their finances is they struggle with their finances is they have all this anxiety or shame or have all this anxiety or shame or have all this anxiety or shame or frustration or they just don't like frustration or they just don't like frustration or they just don't like spending time with their money spending time with their money spending time with their money and this can be sometimes pain can be a and this can be sometimes pain can be a and this can be sometimes pain can be a great catalyst great catalyst great catalyst for change it's really hard to change for change it's really hard to change for change it's really hard to change when things are just [Music] okay WEBVTT Kind: captions Language: en to turn out to a couple proving that to turn out to a couple proving that to turn out to a couple proving that early retirement is indeed possible and early retirement is indeed possible and early retirement is indeed possible and they are not alone more and more people they are not alone more and more people they are not alone more and more people are joining what's called the fire are joining what's called the fire are joining what's called the fire movement Rebecca Jarvis is back with all movement Rebecca Jarvis is back with all movement Rebecca Jarvis is back with all of the details and Rebecca this couple of the details and Rebecca this couple of the details and Rebecca this couple we're about to see retired at listen to we're about to see retired at listen to we're about to see retired at listen to this and they have children yeah this this and they have children yeah this this and they have children yeah this sounds great facili awright well you're sounds great facili awright well you're sounds great facili awright well you're about to meet this family they made the about to meet this family they made the about to meet this family they made the conscious decision to dramatically and conscious decision to dramatically and conscious decision to dramatically and radically change their lives so they radically change their lives so they radically change their lives so they could be financially independent and could be financially independent and could be financially independent and retire early we are financially retire early we are financially retire early we are financially independent meat the Browning family independent meat the Browning family independent meat the Browning family from San Francisco California from San Francisco California from San Francisco California Christina Amman and their two kids said Christina Amman and their two kids said Christina Amman and their two kids said Noah and Malia Christina and Amman are Noah and Malia Christina and Amman are Noah and Malia Christina and Amman are already retired at just years old I already retired at just years old I already retired at just years old I was making thousand dollars a year was making thousand dollars a year was making thousand dollars a year and Christina was making now they're and Christina was making now they're and Christina was making now they're living their retirement dream in living their retirement dream in living their retirement dream in Portugal so how did they make it happen Portugal so how did they make it happen Portugal so how did they make it happen they're part of the fire movement which they're part of the fire movement which they're part of the fire movement which stands for financial independence retire stands for financial independence retire stands for financial independence retire early it's all about maximizing savings early it's all about maximizing savings early it's all about maximizing savings and generating passive income so your and generating passive income so your and generating passive income so your money works for you instead of the other money works for you instead of the other money works for you instead of the other way around there's more to life than way around there's more to life than way around there's more to life than just sitting in my cubicle when he told just sitting in my cubicle when he told just sitting in my cubicle when he told me that it was like okay I've never me that it was like okay I've never me that it was like okay I've never heard of this this sounds so bizarre but heard of this this sounds so bizarre but heard of this this sounds so bizarre but it's like maybe we can do this the it's like maybe we can do this the it's like maybe we can do this the Browning's were able to save more than Browning's were able to save more than Browning's were able to save more than two million dollars in just eight years two million dollars in just eight years two million dollars in just eight years by investing percent of their income by investing percent of their income by investing percent of their income flipping fixer-uppers trading in their flipping fixer-uppers trading in their flipping fixer-uppers trading in their expensive BMW for a used minivan and expensive BMW for a used minivan and expensive BMW for a used minivan and earning thousands more as drivers for earning thousands more as drivers for earning thousands more as drivers for uber and lyft they've been sharing their uber and lyft they've been sharing their uber and lyft they've been sharing their journey along the way with over a journey along the way with over a journey along the way with over a hundred thousand followers on YouTube hundred thousand followers on YouTube hundred thousand followers on YouTube and Instagram we just thought this would and Instagram we just thought this would and Instagram we just thought this would be a pretty fun project to do share our be a pretty fun project to do share our be a pretty fun project to do share our story share our journey and reach people story share our journey and reach people story share our journey and reach people and tell them there's this alternative and tell them there's this alternative and tell them there's this alternative to working these long hours now they to working these long hours now they to working these long hours now they spend their days eating breakfast as a spend their days eating breakfast as a spend their days eating breakfast as a family walking their daughters to school family walking their daughters to school family walking their daughters to school traveling and learning Portuguese it is traveling and learning Portuguese it is traveling and learning Portuguese it is a scalable anyone that has a plan in a scalable anyone that has a plan in a scalable anyone that has a plan in place can do this all right we have so place can do this all right we have so place can do this all right we have so many questions so let's say you've many questions so let's say you've many questions so let's say you've piqued the interest with someone here piqued the interest with someone here piqued the interest with someone here what do you have to do to pull this off what do you have to do to pull this off what do you have to do to pull this off so the so the so the line with fire is dramatic sacrifice you line with fire is dramatic sacrifice you line with fire is dramatic sacrifice you have to dramatically reduce how much have to dramatically reduce how much have to dramatically reduce how much money you're spending in order to retire money you're spending in order to retire money you're spending in order to retire early pay off all of your debts if you early pay off all of your debts if you early pay off all of your debts if you have any debts that's gonna eat right have any debts that's gonna eat right have any debts that's gonna eat right into your savings that's not going to into your savings that's not going to into your savings that's not going to help you and then there's the extreme help you and then there's the extreme help you and then there's the extreme savings component you'll be setting savings component you'll be setting savings component you'll be setting aside to prepare for this between and aside to prepare for this between and aside to prepare for this between and percent of your earnings and you have percent of your earnings and you have percent of your earnings and you have to get to a point in order to do fire to get to a point in order to do fire to get to a point in order to do fire successfully you have to get to a point successfully you have to get to a point successfully you have to get to a point where you have saved times the amount where you have saved times the amount where you have saved times the amount that you plan to spend annually Wow Wow that you plan to spend annually Wow Wow that you plan to spend annually Wow Wow it's a lot of money there's a lot of it's a lot of money there's a lot of it's a lot of money there's a lot of money that takes a lot of planning you money that takes a lot of planning you money that takes a lot of planning you say there are some really important say there are some really important say there are some really important caveats that you have to consider in caveats that you have to consider in caveats that you have to consider in this this this well the Browning's did this well the Browning's did this well the Browning's did this successfully but part of it is they successfully but part of it is they successfully but part of it is they moved to Portugal where the cost of moved to Portugal where the cost of moved to Portugal where the cost of living is dramatically lower than where living is dramatically lower than where living is dramatically lower than where they were living before and if you think they were living before and if you think they were living before and if you think about it if you're planning on retiring about it if you're planning on retiring about it if you're planning on retiring in a city like Nashville that times in a city like Nashville that times in a city like Nashville that times your annual spending is going to be six your annual spending is going to be six your annual spending is going to be six hundred and fifty seven thousand dollars hundred and fifty seven thousand dollars hundred and fifty seven thousand dollars whereas New York you need over a million whereas New York you need over a million whereas New York you need over a million dollars save to even consider this and I dollars save to even consider this and I dollars save to even consider this and I would say to people health care costs would say to people health care costs would say to people health care costs are the thing you can't plan for and are the thing you can't plan for and are the thing you can't plan for and that's something people should prepare that's something people should prepare that's something people should prepare for in the future whether they're for in the future whether they're for in the future whether they're retiring at or I hear Portugal is retiring at or I hear Portugal is retiring at or I hear Portugal is lovely this time oh yes thank you this lovely this time oh yes thank you this lovely this time oh yes thank you this was fun you can read more about fire the was fun you can read more about fire the was fun you can read more about fire the fire method on our website well hey fire method on our website well hey fire method on our website well hey there GMA fans Robin Roberts here thanks there GMA fans Robin Roberts here thanks there GMA fans Robin Roberts here thanks for checking out our YouTube channel for checking out our YouTube channel for checking out our YouTube channel lots of great stuff here so go on click lots of great stuff here so go on click lots of great stuff here so go on click the subscribe button right over right the subscribe button right over right the subscribe button right over right over here to get more of awesome videos over here to get more of awesome videos over here to get more of awesome videos and content from GMA every day anytime and content from GMA every day anytime and content from GMA every day anytime we thank you for watching and we'll see we thank you for watching and we'll see we thank you for watching and we'll see you in the morning on GMA WEBVTT Kind: captions Language: en [Music] [Music] [Music] I'm faculty Valerio I'm a flight I'm faculty Valerio I'm a flight I'm faculty Valerio I'm a flight attendant and have been for the past attendant and have been for the past attendant and have been for the past years and I am financially independent so the fire movement stands for so the fire movement stands for so the fire movement stands for financial independence and early financial independence and early financial independence and early retirement or retire early retirement or retire early retirement or retire early I think the retire early part is a bit I think the retire early part is a bit I think the retire early part is a bit of a misnomer I don't know many people of a misnomer I don't know many people of a misnomer I don't know many people that have quit their jobs and are doing that have quit their jobs and are doing that have quit their jobs and are doing absolutely nothing in general most absolutely nothing in general most absolutely nothing in general most people are doing at least some kind of people are doing at least some kind of people are doing at least some kind of side work or passion project side work or passion project side work or passion project so I bought my first place at which so I bought my first place at which so I bought my first place at which began a love affair with real estate began a love affair with real estate began a love affair with real estate when the market crash happened in when the market crash happened in when the market crash happened in - I lost three properties in - I lost three properties in - I lost three properties in short sales in a span of two years my short sales in a span of two years my short sales in a span of two years my last short sale closed when I was last short sale closed when I was last short sale closed when I was years old and with it I had to start years old and with it I had to start years old and with it I had to start over completely financially those over completely financially those over completely financially those properties to me were my retirement what properties to me were my retirement what properties to me were my retirement what I thought I'd be retiring on and I I thought I'd be retiring on and I I thought I'd be retiring on and I needed a new plan and so I found the needed a new plan and so I found the needed a new plan and so I found the fire community and I realized that I had fire community and I realized that I had fire community and I realized that I had a new focus for my finances so for a new focus for my finances so for a new focus for my finances so for people who learned about it within one people who learned about it within one people who learned about it within one year have already made huge changes what year have already made huge changes what year have already made huge changes what was your initial like the introduction was your initial like the introduction was your initial like the introduction of fire so we were savings towards the of fire so we were savings towards the of fire so we were savings towards the more traditional retirement but all more traditional retirement but all more traditional retirement but all along the way we were spending money he along the way we were spending money he along the way we were spending money he thought we were frugal we weren't we had thought we were frugal we weren't we had thought we were frugal we weren't we had a , square-foot house and so we were a , square-foot house and so we were a , square-foot house and so we were doing things that weren't frugal but we doing things that weren't frugal but we doing things that weren't frugal but we had income to support it when we had income to support it when we had income to support it when we realized there's this fire thing I think realized there's this fire thing I think realized there's this fire thing I think once we found it it's like well if we once we found it it's like well if we once we found it it's like well if we reduced our spending substantially which reduced our spending substantially which reduced our spending substantially which we did like $, a month he reduced we did like $, a month he reduced we did like $, a month he reduced our spending once we did that so we were our spending once we did that so we were our spending once we did that so we were pretty much ready for fire within a year pretty much ready for fire within a year pretty much ready for fire within a year the idea of financial dependence is the idea of financial dependence is the idea of financial dependence is based on the % rule which comes from based on the % rule which comes from based on the % rule which comes from the training study done in the training study done in the training study done in [Music] [Music] [Music] the stock market on average is gonna be the stock market on average is gonna be the stock market on average is gonna be % a year that's what they calculates % a year that's what they calculates % a year that's what they calculates but if you're pulling % out you're but if you're pulling % out you're but if you're pulling % out you're leaving the other % in for inflation so leaving the other % in for inflation so leaving the other % in for inflation so your money is gonna keep growing plus your money is gonna keep growing plus your money is gonna keep growing plus you have compound interest and other you have compound interest and other you have compound interest and other things that are helping along the way so things that are helping along the way so things that are helping along the way so in our rebounded from the short in our rebounded from the short in our rebounded from the short sells by buying a property and what sells by buying a property and what sells by buying a property and what happens when you own your property happens when you own your property happens when you own your property outright your very low cost of living outright your very low cost of living outright your very low cost of living there's no housing expense it cost me there's no housing expense it cost me there's no housing expense it cost me around $ a month to live there for around $ a month to live there for around $ a month to live there for text and assessments after that about text and assessments after that about text and assessments after that about six months later I found out about the six months later I found out about the six months later I found out about the fire concept and when I figured that out fire concept and when I figured that out fire concept and when I figured that out oh my I already owned my place I'm a oh my I already owned my place I'm a oh my I already owned my place I'm a really low cost of living it's going to really low cost of living it's going to really low cost of living it's going to be super easy for me to save a bunch of be super easy for me to save a bunch of be super easy for me to save a bunch of money so basically in an airport a crappy cell so basically in an airport a crappy cell so basically in an airport a crappy cell with pure on $ but a salad with salmon with pure on $ but a salad with salmon with pure on $ but a salad with salmon and all these different things on top of and all these different things on top of and all these different things on top of a pile around $ so I'm saving I would a pile around $ so I'm saving I would a pile around $ so I'm saving I would guess that these probably cost around guess that these probably cost around guess that these probably cost around three to four dollars to make each so I three to four dollars to make each so I three to four dollars to make each so I walked outdoor over because I use rover walked outdoor over because I use rover walked outdoor over because I use rover to have my dog watched when I'm out of to have my dog watched when I'm out of to have my dog watched when I'm out of town for work I figured I'm home a lot town for work I figured I'm home a lot town for work I figured I'm home a lot and I love dogs so I started watching and I love dogs so I started watching and I love dogs so I started watching and walking dogs myself to offset the and walking dogs myself to offset the and walking dogs myself to offset the cost of when I'm at work in my cost of when I'm at work in my cost of when I'm at work in my total expenses for the year were total expenses for the year were total expenses for the year were eighteen thousand two hundred and eighteen thousand two hundred and eighteen thousand two hundred and seventy eight dollars so that's a pretty seventy eight dollars so that's a pretty seventy eight dollars so that's a pretty big difference about sixty thousand big difference about sixty thousand big difference about sixty thousand dollars that I saved in my income dollars that I saved in my income dollars that I saved in my income went up a little bit it was around went up a little bit it was around went up a little bit it was around eighty nine thousand dollars my spending eighty nine thousand dollars my spending eighty nine thousand dollars my spending also went up a little bit to around also went up a little bit to around also went up a little bit to around twenty four thousand dollars but still a twenty four thousand dollars but still a twenty four thousand dollars but still a good savings so the way that you get to good savings so the way that you get to good savings so the way that you get to that calculation is taking your yearly that calculation is taking your yearly that calculation is taking your yearly expenses which is why we track our expenses which is why we track our expenses which is why we track our spending so we know exactly we're spending so we know exactly we're spending so we know exactly we're spending spending spending multiply that by and that number multiply that by and that number multiply that by and that number should be what you have invested so that should be what you have invested so that should be what you have invested so that you can pull % out yearly I've saved as you can pull % out yearly I've saved as you can pull % out yearly I've saved as enough that I theoretically could retire enough that I theoretically could retire enough that I theoretically could retire right now based on the % rule however right now based on the % rule however right now based on the % rule however I'm still working my job because there I'm still working my job because there I'm still working my job because there are a few things that I'm still unsure are a few things that I'm still unsure are a few things that I'm still unsure of one of them is health care you know of one of them is health care you know of one of them is health care you know my job provides me great health to care my job provides me great health to care my job provides me great health to care for thirteen dollars a month for thirteen dollars a month for thirteen dollars a month I've stayed in my job a long time I'm I've stayed in my job a long time I'm I've stayed in my job a long time I'm gonna fly to ten seventeen years I gonna fly to ten seventeen years I gonna fly to ten seventeen years I didn't do this overnight I didn't go didn't do this overnight I didn't go didn't do this overnight I didn't go from making $ an hour to making $ an from making $ an hour to making $ an from making $ an hour to making $ an hour which is where I'm at now I'm not hour which is where I'm at now I'm not hour which is where I'm at now I'm not saying that this is attainable for saying that this is attainable for saying that this is attainable for everybody but I am saying that there's everybody but I am saying that there's everybody but I am saying that there's almost something that you can everybody almost something that you can everybody almost something that you can everybody can do for their expenses and I think can do for their expenses and I think can do for their expenses and I think the first step is to start tracking your the first step is to start tracking your the first step is to start tracking your expenses being fire isn't an easy thing to do you being fire isn't an easy thing to do you being fire isn't an easy thing to do you have to say no to a lot of things have to say no to a lot of things have to say no to a lot of things it's about delaying gratification and it's about delaying gratification and it's about delaying gratification and we're not in a society that delays we're not in a society that delays we're not in a society that delays gratification anymore you know everyone gratification anymore you know everyone gratification anymore you know everyone wants an instant gratification well I'm wants an instant gratification well I'm wants an instant gratification well I'm okay with delaying it but I can't okay with delaying it but I can't okay with delaying it but I can't predict the future I don't know if I'm predict the future I don't know if I'm predict the future I don't know if I'm gonna be sick I don't know if I'm gonna gonna be sick I don't know if I'm gonna gonna be sick I don't know if I'm gonna get in a car wreck tomorrow I don't know get in a car wreck tomorrow I don't know get in a car wreck tomorrow I don't know any of that but what I do know is that any of that but what I do know is that any of that but what I do know is that if I do I'm in a better financial if I do I'm in a better financial if I do I'm in a better financial situation to handle it then most people situation to handle it then most people situation to handle it then most people are certainly most Americans are certainly most Americans are certainly most Americans [Music] [Music] [Music] you WEBVTT Kind: captions Language: en hey everybody dave here hidden free hey everybody dave here hidden free hey everybody dave here hidden free investing in today's video i want to go investing in today's video i want to go investing in today's video i want to go over the top five dividend stocks for over the top five dividend stocks for over the top five dividend stocks for april . april . april . it's getting very tough to find some it's getting very tough to find some it's getting very tough to find some quality dividend stocks that are on sale quality dividend stocks that are on sale quality dividend stocks that are on sale or even at a slight discount or even at a slight discount or even at a slight discount uh but i came up with a list of five uh but i came up with a list of five uh but i came up with a list of five that i feel like are a pretty good that i feel like are a pretty good that i feel like are a pretty good discount discount discount and uh so we're gonna go over those top and uh so we're gonna go over those top and uh so we're gonna go over those top five stocks today five stocks today five stocks today if you're new here i do dividend if you're new here i do dividend if you're new here i do dividend portfolio update videos portfolio update videos portfolio update videos and here is my dividend portfolio and here is my dividend portfolio and here is my dividend portfolio overview here overview here overview here and this is all my stocks including the and this is all my stocks including the and this is all my stocks including the health of the accounts health of the accounts health of the accounts and all that so if you're not familiar and all that so if you're not familiar and all that so if you're not familiar with my dividend portfolio update videos with my dividend portfolio update videos with my dividend portfolio update videos you can take a look you can take a look you can take a look at the card on the top right here and at the card on the top right here and at the card on the top right here and that was the last dividend portfolio that was the last dividend portfolio that was the last dividend portfolio update video i did if you want to see update video i did if you want to see update video i did if you want to see all the positions in the dividend all the positions in the dividend all the positions in the dividend portfolio portfolio portfolio so let's go ahead and get started the so let's go ahead and get started the so let's go ahead and get started the information expressed in this video is information expressed in this video is information expressed in this video is my opinion in my opinion only this my opinion in my opinion only this my opinion in my opinion only this information is for entertainment information is for entertainment information is for entertainment purposes only purposes only purposes only please do your own research the first stock we're going to talk the first stock we're going to talk the first stock we're going to talk about here is merck and about here is merck and about here is merck and i you know basically i think this one i you know basically i think this one i you know basically i think this one was recommended by somebody in the last was recommended by somebody in the last was recommended by somebody in the last top top top five video i did and i looked it up and five video i did and i looked it up and five video i did and i looked it up and i am familiar with the company but i am familiar with the company but i am familiar with the company but um i was pretty surprised and weren't um i was pretty surprised and weren't um i was pretty surprised and weren't sitting at and i think sitting at and i think sitting at and i think you know i did that what last video you know i did that what last video you know i did that what last video about on here so it's come up quite a about on here so it's come up quite a about on here so it's come up quite a bit since then but still it still bit since then but still it still bit since then but still it still seems to be a pretty good discount you seems to be a pretty good discount you seems to be a pretty good discount you know this number right here is know this number right here is know this number right here is bucks so i guess we had a lot of you bucks so i guess we had a lot of you bucks so i guess we had a lot of you know support and resistance right around know support and resistance right around know support and resistance right around that that that number of dollars right here right number of dollars right here right number of dollars right here right here right here right here here right here right here here right here right here going all the way back to november and going all the way back to november and going all the way back to november and then literally going all the way back to then literally going all the way back to then literally going all the way back to july july july of last year and then also back to of last year and then also back to of last year and then also back to june if we go a little bit bigger view june if we go a little bit bigger view june if we go a little bit bigger view here we can see here we can see here we can see that is a pretty good point going all that is a pretty good point going all that is a pretty good point going all the way back to the way back to the way back to in may and june and then obviously that in may and june and then obviously that in may and june and then obviously that was the pandemic right there was the pandemic right there was the pandemic right there and we can go all the way back to and we can go all the way back to and we can go all the way back to where we pretty much had this uh you where we pretty much had this uh you where we pretty much had this uh you know kind of support resistance anywhere know kind of support resistance anywhere know kind of support resistance anywhere between between between to so to so to so you know right now at this time the you know right now at this time the you know right now at this time the stock is down . percent year-to-date stock is down . percent year-to-date stock is down . percent year-to-date and you get the -week range being and you get the -week range being and you get the -week range being . on the low side on the upside and . on the low side on the upside and . on the low side on the upside and we got . we got . we got . so there is a lot of room to move up and so there is a lot of room to move up and so there is a lot of room to move up and not a lot of room to move down in my not a lot of room to move down in my not a lot of room to move down in my opinion opinion opinion obviously you know that pandemic was a obviously you know that pandemic was a obviously you know that pandemic was a pretty big low right there pretty big low right there pretty big low right there looking at seeking alpha here merck has looking at seeking alpha here merck has looking at seeking alpha here merck has a . a . a . dividend yield payout ratio is . dividend yield payout ratio is . dividend yield payout ratio is . percent percent percent five-year dividend keger is . percent five-year dividend keger is . percent five-year dividend keger is . percent the dividend growth is years that the dividend growth is years that the dividend growth is years that could be off by year or two i looked at could be off by year or two i looked at could be off by year or two i looked at another source another source another source it looks like it's years and that it looks like it's years and that it looks like it's years and that source but it should be close about source but it should be close about source but it should be close about or years or years or years looking at the dividend history for looking at the dividend history for looking at the dividend history for merck we can see that they raised the merck we can see that they raised the merck we can see that they raised the dividend dividend dividend in right around that last quarter in right around that last quarter in right around that last quarter right there right there right there so . from cents to cents so . from cents to cents so . from cents to cents they obviously paid out for the first they obviously paid out for the first they obviously paid out for the first dividend in dividend in dividend in so technically they don't need to raise so technically they don't need to raise so technically they don't need to raise the dividend all the way until the dividend all the way until the dividend all the way until sometime in it could be in december sometime in it could be in december sometime in it could be in december of of of could be any time in as long as could be any time in as long as could be any time in as long as they raise it at some point they raise it at some point they raise it at some point by a cent or two or something like that by a cent or two or something like that by a cent or two or something like that so here they raise it four cents they so here they raise it four cents they so here they raise it four cents they could raise by four cents and that will could raise by four cents and that will could raise by four cents and that will count and keep them running for a count and keep them running for a count and keep them running for a dividend risk rat dividend risk rat dividend risk rat and right now they're at ten years so and right now they're at ten years so and right now they're at ten years so they're quite a ways away from being a they're quite a ways away from being a they're quite a ways away from being a different aristocrat different aristocrat different aristocrat this is not a stock that i own in my this is not a stock that i own in my this is not a stock that i own in my dividend portfolio just want to make dividend portfolio just want to make dividend portfolio just want to make that that that known that i do not own this stock and i known that i do not own this stock and i known that i do not own this stock and i do not have any intentions of buying it do not have any intentions of buying it do not have any intentions of buying it at this time and if it gets down to at this time and if it gets down to at this time and if it gets down to or so i may or may not or so i may or may not or so i may or may not execute a trade on it but right now i do execute a trade on it but right now i do execute a trade on it but right now i do not own it not own it not own it the next stock up is realty income the next stock up is realty income the next stock up is realty income corporation corporation corporation so this is a reit if you're not familiar so this is a reit if you're not familiar so this is a reit if you're not familiar with the realty income it is one of the with the realty income it is one of the with the realty income it is one of the best best best reits out there in my opinion it is a reits out there in my opinion it is a reits out there in my opinion it is a dividend aristocrat dividend aristocrat dividend aristocrat um they did pretty well during the um they did pretty well during the um they did pretty well during the pandemic pandemic pandemic and you're probably thinking dave what and you're probably thinking dave what and you're probably thinking dave what are you you know bringing this stock up are you you know bringing this stock up are you you know bringing this stock up for for for in you know april of well in you know april of well in you know april of well it looks like it's about to break out it looks like it's about to break out it looks like it's about to break out and you know obviously going back and you know obviously going back and you know obviously going back several months here we can see that it's several months here we can see that it's several months here we can see that it's kind of been kind of been kind of been not falling out of this channel here not falling out of this channel here not falling out of this channel here on the low side right around this and on the low side right around this and on the low side right around this and this upside around to . it's kind this upside around to . it's kind this upside around to . it's kind of been hanging around of been hanging around of been hanging around in that channel and kind of trading in that channel and kind of trading in that channel and kind of trading sideways but sideways but sideways but if we kind of zoom out here into a if we kind of zoom out here into a if we kind of zoom out here into a weekly weekly weekly we can kind of see that you know going we can kind of see that you know going we can kind of see that you know going all the way back to all the way back to all the way back to you know that to level you know that to level you know that to level is resistance and obviously prior the is resistance and obviously prior the is resistance and obviously prior the pandemic we're all the way up to pandemic we're all the way up to pandemic we're all the way up to almost here so i feel like there's almost here so i feel like there's almost here so i feel like there's a lot of upside in this stock a lot of upside in this stock a lot of upside in this stock and right now the stock is up . and right now the stock is up . and right now the stock is up . year-to-date on the low side -week low year-to-date on the low side -week low year-to-date on the low side -week low we had . we had . we had . and the upside was . i feel like and the upside was . i feel like and the upside was . i feel like this stock is right to break out of this this stock is right to break out of this this stock is right to break out of this channel that has been in channel that has been in channel that has been in and you know it looks like it's about to and you know it looks like it's about to and you know it looks like it's about to do it now do it now do it now um obviously you know this is a um obviously you know this is a um obviously you know this is a pre-pandemic here and pre-pandemic here and pre-pandemic here and obviously a lot of retail clients did obviously a lot of retail clients did obviously a lot of retail clients did not go away i mean just not go away i mean just not go away i mean just you know amc and some of their you know you know amc and some of their you know you know amc and some of their you know gyms and all that had trouble gyms and all that had trouble gyms and all that had trouble but in general if you kind of look at but in general if you kind of look at but in general if you kind of look at their their their earnings statements and some of their earnings statements and some of their earnings statements and some of their more earnings releases more earnings releases more earnings releases they actually picked up a lot more they actually picked up a lot more they actually picked up a lot more properties during the pandemic properties during the pandemic properties during the pandemic so that was pretty good so technically so that was pretty good so technically so that was pretty good so technically they're doing better than they're doing better than they're doing better than they did in uh during the financial they did in uh during the financial they did in uh during the financial crisis when real estate really went in crisis when real estate really went in crisis when real estate really went in the toilet the toilet the toilet realty income really shined this realty income really shined this realty income really shined this particular recession particular recession particular recession and picked up a lot more properties at a and picked up a lot more properties at a and picked up a lot more properties at a discount so they are doing a lot better discount so they are doing a lot better discount so they are doing a lot better this time than they did last time so i this time than they did last time so i this time than they did last time so i don't know what's really holding the don't know what's really holding the don't know what's really holding the stock back at this point stock back at this point stock back at this point and i feel like it's just going to break and i feel like it's just going to break and i feel like it's just going to break out and even if it does drop down to out and even if it does drop down to out and even if it does drop down to at this point it's still a good purchase at this point it's still a good purchase at this point it's still a good purchase to pick up more there to pick up more there to pick up more there but um you know at here it's still but um you know at here it's still but um you know at here it's still great purchase because you know you got great purchase because you know you got great purchase because you know you got a lot of upside here where it was prior a lot of upside here where it was prior a lot of upside here where it was prior to the pandemic to the pandemic to the pandemic look at the dividend summary for real to look at the dividend summary for real to look at the dividend summary for real to income we have a . percent yield income we have a . percent yield income we have a . percent yield and this is a monthly pair by the way so and this is a monthly pair by the way so and this is a monthly pair by the way so you do get paid monthly you do get paid monthly you do get paid monthly and obviously with cents per month and obviously with cents per month and obviously with cents per month and they just actually increased their and they just actually increased their and they just actually increased their dividend recently dividend recently dividend recently payout ratio we cannot go by well payout ratio we cannot go by well payout ratio we cannot go by well actually that actually looks correct actually that actually looks correct actually that actually looks correct believe it or not believe it or not believe it or not um so yeah you have to use affo payout um so yeah you have to use affo payout um so yeah you have to use affo payout ratio not ratio not ratio not you know the normal standard payout you know the normal standard payout you know the normal standard payout ratio but this actually does look ratio but this actually does look ratio but this actually does look correct so i don't know if somebody's correct so i don't know if somebody's correct so i don't know if somebody's manually manually manually intervention intervening with that or if intervention intervening with that or if intervention intervening with that or if they they they know that this is a reit and they're you know that this is a reit and they're you know that this is a reit and they're you know calculated off the correct numbers know calculated off the correct numbers know calculated off the correct numbers but but but it is about percent uh when i did the it is about percent uh when i did the it is about percent uh when i did the calculation calculation calculation five year dividend keger is . five year dividend keger is . five year dividend keger is . and the dividend growth of years is and the dividend growth of years is and the dividend growth of years is actually incorrect actually incorrect actually incorrect they are a dividend aristocrat so i they are a dividend aristocrat so i they are a dividend aristocrat so i believe there are years believe there are years believe there are years if i'm not mistaken in their dividend if i'm not mistaken in their dividend if i'm not mistaken in their dividend history here we can see that they pay history here we can see that they pay history here we can see that they pay monthly because they paid out every monthly because they paid out every monthly because they paid out every single month in single month in single month in they've already paid out three months they've already paid out three months they've already paid out three months here in and they did raise the here in and they did raise the here in and they did raise the dividend right there in march dividend right there in march dividend right there in march so they don't technically need to raise so they don't technically need to raise so they don't technically need to raise uh all the way until the end of or uh all the way until the end of or uh all the way until the end of or sometime in sometime in sometime in um but realty income also tends to raise um but realty income also tends to raise um but realty income also tends to raise several times during the year like last several times during the year like last several times during the year like last year i think they raised three year i think they raised three year i think they raised three excuse me four times during the year so excuse me four times during the year so excuse me four times during the year so expect them to raise expect them to raise expect them to raise you know at least uh two or three times you know at least uh two or three times you know at least uh two or three times this year this year this year probably up to four times it's not a big probably up to four times it's not a big probably up to four times it's not a big increase it's a fraction of a penny but increase it's a fraction of a penny but increase it's a fraction of a penny but it all adds up in the end it all adds up in the end it all adds up in the end realty income is a stock that i do own realty income is a stock that i do own realty income is a stock that i do own in my dividend portfolio here it is in my dividend portfolio here it is in my dividend portfolio here it is right here right here right here do own shares and that's across two do own shares and that's across two do own shares and that's across two different accounts so i do have a tax different accounts so i do have a tax different accounts so i do have a tax deferred and a taxable account and the deferred and a taxable account and the deferred and a taxable account and the tax deferred account i own shares tax deferred account i own shares tax deferred account i own shares and the taxable account i own about five and the taxable account i own about five and the taxable account i own about five shares total shares total shares total obviously because it is unqualified obviously because it is unqualified obviously because it is unqualified dividend i carry most of that in the tax dividend i carry most of that in the tax dividend i carry most of that in the tax deferred account deferred account deferred account scrolling over the right here we can scrolling over the right here we can scrolling over the right here we can also see that it paid about what also see that it paid about what also see that it paid about what years excuse me consecutive years of years excuse me consecutive years of years excuse me consecutive years of dividends that makes them an aristocrat dividends that makes them an aristocrat dividends that makes them an aristocrat and so that and so that and so that tells you that seeking alpha is off tells you that seeking alpha is off tells you that seeking alpha is off slightly if you're enjoying this top slightly if you're enjoying this top slightly if you're enjoying this top five dividend stocks for april go five dividend stocks for april go five dividend stocks for april go ahead and like and subscribe and hit ahead and like and subscribe and hit ahead and like and subscribe and hit that bell notification that bell notification that bell notification the next stock up here is att i've been the next stock up here is att i've been the next stock up here is att i've been following the stock for quite some time following the stock for quite some time following the stock for quite some time i've done quite a few i've done quite a few i've done quite a few earnings release videos on a t earnings release videos on a t earnings release videos on a t i like where it's at now and you're i like where it's at now and you're i like where it's at now and you're probably thinking well this is kind of probably thinking well this is kind of probably thinking well this is kind of expensive but it really isn't expensive but it really isn't expensive but it really isn't and you know it is what it is if you're and you know it is what it is if you're and you know it is what it is if you're not you know familiar with all the not you know familiar with all the not you know familiar with all the things that they've been doing things that they've been doing things that they've been doing they are coming back alive and you know they are coming back alive and you know they are coming back alive and you know they are also a g they are also a g they are also a g play as well well they did pay quite a play as well well they did pay quite a play as well well they did pay quite a bit for the g spectrum bit for the g spectrum bit for the g spectrum took on quite a bit of debt but they did took on quite a bit of debt but they did took on quite a bit of debt but they did sell some assets as well to pay sell some assets as well to pay sell some assets as well to pay for some of that debt they had been for some of that debt they had been for some of that debt they had been reducing the debt for the last several reducing the debt for the last several reducing the debt for the last several quarters and they're making progress quarters and they're making progress quarters and they're making progress there so this is a turnaround story and there so this is a turnaround story and there so this is a turnaround story and reopening play as well reopening play as well reopening play as well and that's kind of this you know the and that's kind of this you know the and that's kind of this you know the reason why it's been running up here reason why it's been running up here reason why it's been running up here because in you know basically the because in you know basically the because in you know basically the reopening play reopening play reopening play but in addition to that it is also an but in addition to that it is also an but in addition to that it is also an infrastructure plan as well right infrastructure plan as well right infrastructure plan as well right we just had you know a bit big we just had you know a bit big we just had you know a bit big infrastructure bill infrastructure bill infrastructure bill and it looks like that should help att and it looks like that should help att and it looks like that should help att considerably right now it is up what considerably right now it is up what considerably right now it is up what seven point seven point seven point five five percent year year-to-date on five five percent year year-to-date on five five percent year year-to-date on the low side -week range we had . the low side -week range we had . the low side -week range we had . and the upside we had at . so if we zoom out a little bit here and so if we zoom out a little bit here and so if we zoom out a little bit here and kind of see what was going on kind of see what was going on kind of see what was going on and obviously you know the low is right and obviously you know the low is right and obviously you know the low is right around this obviously this during the around this obviously this during the around this obviously this during the pandemic that we had here was the pandemic that we had here was the pandemic that we had here was the ultimate low but i'm kind of just ultimate low but i'm kind of just ultimate low but i'm kind of just looking where the support is this looking where the support is this looking where the support is this drop here was just more fear than drop here was just more fear than drop here was just more fear than anything but obviously a big anything but obviously a big anything but obviously a big pickup for this stock would have been pickup for this stock would have been pickup for this stock would have been right around this level here right around this level here right around this level here but still i think this level right here but still i think this level right here but still i think this level right here we can go all the way back we can go all the way back we can go all the way back to and part to and we can to and part to and we can to and part to and we can see it kind of hanging around this level see it kind of hanging around this level see it kind of hanging around this level right here right here right here and that's kind of where we're sitting and that's kind of where we're sitting and that's kind of where we're sitting so this in my opinion is a reopening so this in my opinion is a reopening so this in my opinion is a reopening play play play not to mention it is also an not to mention it is also an not to mention it is also an infrastructure play and that's the infrastructure play and that's the infrastructure play and that's the reason why i think it's a good buy reason why i think it's a good buy reason why i think it's a good buy right at this level here about . right at this level here about . right at this level here about . obviously look at all this upside here obviously look at all this upside here obviously look at all this upside here this is prior to the pandemic so we have this is prior to the pandemic so we have this is prior to the pandemic so we have a lot of upside here right a lot of upside here right a lot of upside here right and i know this stock is you know one of and i know this stock is you know one of and i know this stock is you know one of those ones where it's got too much debt those ones where it's got too much debt those ones where it's got too much debt people just don't people just don't people just don't like it because of that and you know it like it because of that and you know it like it because of that and you know it is what it is you really need to is what it is you really need to is what it is you really need to understand that they are changing the understand that they are changing the understand that they are changing the perception of the stock perception of the stock perception of the stock and i think you're just gonna be missing and i think you're just gonna be missing and i think you're just gonna be missing out if you don't pick it up at some out if you don't pick it up at some out if you don't pick it up at some point point point uh you're gonna be kicking yourself it uh you're gonna be kicking yourself it uh you're gonna be kicking yourself it just pops up to and just goes north just pops up to and just goes north just pops up to and just goes north of there of there of there because there's a lot of tailwinds that because there's a lot of tailwinds that because there's a lot of tailwinds that are going to be forcing the stock up in are going to be forcing the stock up in are going to be forcing the stock up in my opinion you got g the infrastructure my opinion you got g the infrastructure my opinion you got g the infrastructure play play play you got hbo max which is killing it by you got hbo max which is killing it by you got hbo max which is killing it by the way the way the way and once international roaming comes and once international roaming comes and once international roaming comes back they'll be you know that's like a back they'll be you know that's like a back they'll be you know that's like a triple triple triple edged sword right there if that's such a edged sword right there if that's such a edged sword right there if that's such a thing look at the dividend summary for a thing look at the dividend summary for a thing look at the dividend summary for a t we got a dividend yield about six t we got a dividend yield about six t we got a dividend yield about six point point point seven one percent payout ratio sixty six seven one percent payout ratio sixty six seven one percent payout ratio sixty six percent percent percent and obviously uh that's calculated and obviously uh that's calculated and obviously uh that's calculated differently than how a t differently than how a t differently than how a t calculates it but that's fine um they calculates it but that's fine um they calculates it but that's fine um they use a different use a different use a different ratio in their earnings releases than ratio in their earnings releases than ratio in their earnings releases than what they're shown here but still what they're shown here but still what they're shown here but still it's actually pretty darn good five-year it's actually pretty darn good five-year it's actually pretty darn good five-year dividend growth rate is not very good dividend growth rate is not very good dividend growth rate is not very good but that's pretty typical of a but that's pretty typical of a but that's pretty typical of a communication sector stock communication sector stock communication sector stock you know um you know what two percent you know um you know what two percent you know um you know what two percent there um a data is what it is but you're there um a data is what it is but you're there um a data is what it is but you're going to get a higher starting yield going to get a higher starting yield going to get a higher starting yield there there there consecutive dividend growth rate is consecutive dividend growth rate is consecutive dividend growth rate is years so let's double check in my years so let's double check in my years so let's double check in my spreadsheet to see if that's correct or spreadsheet to see if that's correct or spreadsheet to see if that's correct or not so we're looking at a t not so we're looking at a t not so we're looking at a t which i have right here so i own which i have right here so i own which i have right here so i own shares of att shares of att shares of att that's across two different accounts that's across two different accounts that's across two different accounts okay and we're looking at two accounts okay and we're looking at two accounts okay and we're looking at two accounts right here so here's the tax deferred right here so here's the tax deferred right here so here's the tax deferred account owned shares of att in that account owned shares of att in that account owned shares of att in that account account account i also own shares in my taxable i also own shares in my taxable i also own shares in my taxable account account account and then we also have let's see what the and then we also have let's see what the and then we also have let's see what the dividend aristocrat dividend aristocrat dividend aristocrat consecutive years of dividend consecutive years of dividend consecutive years of dividend increases increases increases i started the first streak in the next stock up here is hormonal foods the next stock up here is hormonal foods the next stock up here is hormonal foods and i kind of searched for this one and and i kind of searched for this one and and i kind of searched for this one and came up with this one i kind of looked came up with this one i kind of looked came up with this one i kind of looked at the chart at the chart at the chart and i kind of liked where it was sitting and i kind of liked where it was sitting and i kind of liked where it was sitting at so let's go and talk about the stock at so let's go and talk about the stock at so let's go and talk about the stock here a bit and right now the stock is here a bit and right now the stock is here a bit and right now the stock is sitting at . sitting at . sitting at . obviously that is a pretty much of a obviously that is a pretty much of a obviously that is a pretty much of a sticking point right there literally sticking point right there literally sticking point right there literally going all the way back going all the way back going all the way back to uh . we'll zoom out here in a to uh . we'll zoom out here in a to uh . we'll zoom out here in a second but you know here second but you know here second but you know here is the stock right here and if we you is the stock right here and if we you is the stock right here and if we you know kind of draw a line all the way know kind of draw a line all the way know kind of draw a line all the way across across across a lot of sticky points here sticky a lot of sticky points here sticky a lot of sticky points here sticky sticky sticky sticky sticky sticky sticky sticky sticky sticky and all these points here are sticky and all these points here are sticky and all these points here are sticky including these here and all these here including these here and all these here including these here and all these here so so so in my opinion this is a great stock at a in my opinion this is a great stock at a in my opinion this is a great stock at a great price great price great price it is up here to date . percent it is up here to date . percent it is up here to date . percent -week range is on the low side . -week range is on the low side . -week range is on the low side . which is probably right here and then we which is probably right here and then we which is probably right here and then we got the upside of got the upside of got the upside of which looks like it was probably right which looks like it was probably right which looks like it was probably right here which was here which was here which was last year so if we zoom out a little bit last year so if we zoom out a little bit last year so if we zoom out a little bit here let's go to a weekly here let's go to a weekly here let's go to a weekly and here was the pandemic right here so and here was the pandemic right here so and here was the pandemic right here so it's kind of come up it's kind of come up it's kind of come up and it's kind of interesting because and it's kind of interesting because and it's kind of interesting because this was not necessarily a pandemic play this was not necessarily a pandemic play this was not necessarily a pandemic play because because because you know i mean it could have been but you know i mean it could have been but you know i mean it could have been but it couldn't have been right it couldn't have been right it couldn't have been right um people staying home so maybe they um people staying home so maybe they um people staying home so maybe they were preparing for were preparing for were preparing for apocalypse or something like that um if apocalypse or something like that um if apocalypse or something like that um if they pronounced that right they pronounced that right they pronounced that right apocalypse ah there we go uh maybe apocalypse ah there we go uh maybe apocalypse ah there we go uh maybe they're preparing for that so they're preparing for that so they're preparing for that so just put a lot of hormel up i don't just put a lot of hormel up i don't just put a lot of hormel up i don't really know it looks like it did recover really know it looks like it did recover really know it looks like it did recover quite a bit and then recently it has quite a bit and then recently it has quite a bit and then recently it has kind of trimmed down a little bit kind of trimmed down a little bit kind of trimmed down a little bit in late but you know i would say on in late but you know i would say on in late but you know i would say on the low side the low side the low side is a pretty good point because you is a pretty good point because you is a pretty good point because you can go all the way back to it's can go all the way back to it's can go all the way back to it's kind of sticking right there kind of sticking right there kind of sticking right there and then literally all the way back to and then literally all the way back to and then literally all the way back to it's sitting right there at the it's sitting right there at the it's sitting right there at the level as well so on the level as well so on the level as well so on the low side i'd say is a great pickup low side i'd say is a great pickup low side i'd say is a great pickup but at this point i also think it's a but at this point i also think it's a but at this point i also think it's a pretty good pickup on pretty good pickup on pretty good pickup on the upside as well i'm just given where the upside as well i'm just given where the upside as well i'm just given where you know it's not you know it's not you know it's not you know blown up and it's not too crazy you know blown up and it's not too crazy you know blown up and it's not too crazy overvalued or anything like that overvalued or anything like that overvalued or anything like that and then dividend summary for homeowner and then dividend summary for homeowner and then dividend summary for homeowner foods the dividend yield is . percent foods the dividend yield is . percent foods the dividend yield is . percent payout ratio is . percent which is payout ratio is . percent which is payout ratio is . percent which is you know pretty darn healthy you know pretty darn healthy you know pretty darn healthy five-year dividend keger is . five-year dividend keger is . five-year dividend keger is . that is actually pretty darn good that's that is actually pretty darn good that's that is actually pretty darn good that's pretty strong it's pretty healthy pretty strong it's pretty healthy pretty strong it's pretty healthy and then dividend growth i believe is and then dividend growth i believe is and then dividend growth i believe is wrong um i believe they're dividend king wrong um i believe they're dividend king wrong um i believe they're dividend king if i'm not mistaken if i'm not mistaken if i'm not mistaken so i believe they have been raising so i believe they have been raising so i believe they have been raising their dividend for at least years their dividend for at least years their dividend for at least years consecutively consecutively consecutively looking at hormel foods dividend history looking at hormel foods dividend history looking at hormel foods dividend history here we can see that they raised the here we can see that they raised the here we can see that they raised the dividend dividend dividend in from cents to . cents in from cents to . cents in from cents to . cents they've already raised and it looks like they've already raised and it looks like they've already raised and it looks like right here to . cents they right here to . cents they right here to . cents they raised it up raised it up raised it up roughly about a penny or so and they're roughly about a penny or so and they're roughly about a penny or so and they're most likely won't raise again most likely won't raise again most likely won't raise again in so that means they have to raise in so that means they have to raise in so that means they have to raise in at some point hormel foods is not as dividend stock hormel foods is not as dividend stock hormel foods is not as dividend stock that i own in my dividend portfolio that i own in my dividend portfolio that i own in my dividend portfolio and i have no plans of initiating a and i have no plans of initiating a and i have no plans of initiating a position in hormone foods at this time position in hormone foods at this time position in hormone foods at this time go and comment below on your favorite go and comment below on your favorite go and comment below on your favorite stock from this top video stock from this top video stock from this top video go ahead and like and subscribe and hit go ahead and like and subscribe and hit go ahead and like and subscribe and hit that bell notification and the last that bell notification and the last that bell notification and the last stock here is apple stock here is apple stock here is apple and i should mention that all these and i should mention that all these and i should mention that all these stocks are in no particular order at all stocks are in no particular order at all stocks are in no particular order at all so it's not saying that apple's the best so it's not saying that apple's the best so it's not saying that apple's the best bet here or anything like that bet here or anything like that bet here or anything like that i just put these in kind of a random i just put these in kind of a random i just put these in kind of a random order and so just be aware of that order and so just be aware of that order and so just be aware of that so here is apple right here and right so here is apple right here and right so here is apple right here and right now apple's sitting at now apple's sitting at now apple's sitting at what a buck . it has come up in the what a buck . it has come up in the what a buck . it has come up in the last week or so last week or so last week or so or when i was looking at it it was down or when i was looking at it it was down or when i was looking at it it was down here and so here and so here and so it is what it is has come up quite a bit it is what it is has come up quite a bit it is what it is has come up quite a bit since then but that's fine it's still since then but that's fine it's still since then but that's fine it's still down year to date down year to date down year to date down . year-to-date down . year-to-date down . year-to-date and that's because the tech wreck due to and that's because the tech wreck due to and that's because the tech wreck due to the treasury notes the treasury notes the treasury notes and yield going up and the -week range and yield going up and the -week range and yield going up and the -week range on this stock is on this stock is on this stock is or on the low side and on the upside or on the low side and on the upside or on the low side and on the upside we had a which was we had a which was we had a which was right here and it looks like it's come right here and it looks like it's come right here and it looks like it's come down since then like i said the tech down since then like i said the tech down since then like i said the tech wreck wreck wreck kind of hurt it but that's fine because kind of hurt it but that's fine because kind of hurt it but that's fine because that kind of gives us a buying that kind of gives us a buying that kind of gives us a buying opportunity opportunity opportunity and we're sitting about right here which and we're sitting about right here which and we're sitting about right here which literally goes back to the number right literally goes back to the number right literally goes back to the number right here here here here here all these numbers right here here here all these numbers right here here here all these numbers right here so it is sitting at a great point to so it is sitting at a great point to so it is sitting at a great point to pick it up in my opinion um i would say pick it up in my opinion um i would say pick it up in my opinion um i would say um this little gap right here it's not a um this little gap right here it's not a um this little gap right here it's not a little gap i should say it's pretty big little gap i should say it's pretty big little gap i should say it's pretty big gap is a little worrisome gap is a little worrisome gap is a little worrisome apple tends to be a gap closer so i apple tends to be a gap closer so i apple tends to be a gap closer so i would assume that at some point would assume that at some point would assume that at some point that gap will close who knows when uh it that gap will close who knows when uh it that gap will close who knows when uh it could be the next uh you know could be the next uh you know could be the next uh you know correction or something like that maybe correction or something like that maybe correction or something like that maybe it will drop down there and close that it will drop down there and close that it will drop down there and close that gap gap gap it's quite a ways down it is what it is it's quite a ways down it is what it is it's quite a ways down it is what it is it could take several years to close it could take several years to close it could take several years to close that gap that gap that gap but i'm just you know maybe it won't but i'm just you know maybe it won't but i'm just you know maybe it won't ever close i don't know i just know i've ever close i don't know i just know i've ever close i don't know i just know i've been trading apple for many years been trading apple for many years been trading apple for many years and it is a gap closer scrolling out a and it is a gap closer scrolling out a and it is a gap closer scrolling out a little bit here little bit here little bit here uh obviously looking at this chart here uh obviously looking at this chart here uh obviously looking at this chart here it's like wow dave this thing is way it's like wow dave this thing is way it's like wow dave this thing is way overvalued you know look at it we're overvalued you know look at it we're overvalued you know look at it we're down to . down to . down to . back during the pandemic look how far back during the pandemic look how far back during the pandemic look how far this thing dropped it got downloaded this thing dropped it got downloaded this thing dropped it got downloaded bucks but bucks but bucks but um you know they did very good during um you know they did very good during um you know they did very good during the pandemic the pandemic the pandemic um it's you know it's not really a um it's you know it's not really a um it's you know it's not really a reopening play it wasn't really a reopening play it wasn't really a reopening play it wasn't really a shutdown shutdown shutdown play or anything like that they did very play or anything like that they did very play or anything like that they did very well people need their phones they well people need their phones they well people need their phones they upgraded upgraded upgraded use stimulus checks to upgrade their use stimulus checks to upgrade their use stimulus checks to upgrade their phones phones phones maybe you know they're a partial maybe you know they're a partial maybe you know they're a partial infrastructure play i don't really know infrastructure play i don't really know infrastructure play i don't really know if that's the case or not but if that's the case or not but if that's the case or not but it's pretty cheap at this point um all it's pretty cheap at this point um all it's pretty cheap at this point um all things considered things considered things considered you know ford pe would say it's not you know ford pe would say it's not you know ford pe would say it's not cheap but i'll tell you what you give cheap but i'll tell you what you give cheap but i'll tell you what you give this thing this thing this thing five or ten years you'll be kicking five or ten years you'll be kicking five or ten years you'll be kicking yourself not picking it out of buck . yourself not picking it out of buck . yourself not picking it out of buck . looking at the dividend summary for looking at the dividend summary for looking at the dividend summary for apple we can see that has divided neil apple we can see that has divided neil apple we can see that has divided neil to . percent that is nothing to get to . percent that is nothing to get to . percent that is nothing to get excited about i can tell you that right excited about i can tell you that right excited about i can tell you that right now now now they have so much free cash i don't they have so much free cash i don't they have so much free cash i don't understand why they just don't at least understand why they just don't at least understand why they just don't at least double that double that double that it's not going to hurt them one bit and it's not going to hurt them one bit and it's not going to hurt them one bit and it might make it a little more enticing it might make it a little more enticing it might make it a little more enticing to own but to own but to own but what are you going to do payout ratio what are you going to do payout ratio what are you going to do payout ratio . . . that tells you that they could afford to that tells you that they could afford to that tells you that they could afford to double that with no issue at all double that with no issue at all double that with no issue at all come on apple you're not a growth stock come on apple you're not a growth stock come on apple you're not a growth stock anymore um i mean they technically are anymore um i mean they technically are anymore um i mean they technically are but in my opinion it's like you can but in my opinion it's like you can but in my opinion it's like you can transfer out of that growth status a transfer out of that growth status a transfer out of that growth status a little bit little bit little bit and at least double it and still be and at least double it and still be and at least double it and still be considered a growth stock but so five considered a growth stock but so five considered a growth stock but so five year dividend keger is . year dividend keger is . year dividend keger is . and then dividend growth is eight years and then dividend growth is eight years and then dividend growth is eight years i actually think that is off by a year i actually think that is off by a year i actually think that is off by a year or two but we'll look at my dividend or two but we'll look at my dividend or two but we'll look at my dividend portfolio and find out portfolio and find out portfolio and find out looking at the dividend history for looking at the dividend history for looking at the dividend history for apple here we can see that they raised apple here we can see that they raised apple here we can see that they raised the the the dividend looks like twice in so dividend looks like twice in so dividend looks like twice in so that's pretty cool that's pretty cool that's pretty cool went from cents to cents went from cents to cents went from cents to cents up to . cents they have not raised in up to . cents they have not raised in up to . cents they have not raised in so far so far so far and technically they don't need to raise and technically they don't need to raise and technically they don't need to raise until the end of until the end of until the end of at least by one penny or something like at least by one penny or something like at least by one penny or something like that or even fraction of a penny to be that or even fraction of a penny to be that or even fraction of a penny to be counted but counted but counted but most likely will probably at least raise most likely will probably at least raise most likely will probably at least raise once or two once or twice once or two once or twice once or two once or twice uh in so looking at my dividend uh in so looking at my dividend uh in so looking at my dividend portfolio i do own apple portfolio i do own apple portfolio i do own apple and here is apple right here so i own and here is apple right here so i own and here is apple right here so i own shares of apple total that's across shares of apple total that's across shares of apple total that's across two different accounts so if we scroll two different accounts so if we scroll two different accounts so if we scroll to the right here we can see that we to the right here we can see that we to the right here we can see that we have four shares in the tax deferred have four shares in the tax deferred have four shares in the tax deferred account account account we can also see that we have shares we can also see that we have shares we can also see that we have shares in the taxable account in the taxable account in the taxable account and i'm up over and some percent and i'm up over and some percent and i'm up over and some percent in that stock and that's seven thousand in that stock and that's seven thousand in that stock and that's seven thousand dollars in realized gains i picked that dollars in realized gains i picked that dollars in realized gains i picked that stock up stock up stock up uh during the recession of last year uh during the recession of last year uh during the recession of last year literally literally literally in march right near the low i think in march right near the low i think in march right near the low i think march march march th that's when i pretty much picked it th that's when i pretty much picked it th that's when i pretty much picked it up so it was a lucky bet up so it was a lucky bet up so it was a lucky bet scrolling over the right here we can see scrolling over the right here we can see scrolling over the right here we can see that they've been panned out for nine that they've been panned out for nine that they've been panned out for nine consecutive years so it looks like consecutive years so it looks like consecutive years so it looks like seeking alpha is correct seeking alpha is correct seeking alpha is correct so that's good they are quite a ways off so that's good they are quite a ways off so that's good they are quite a ways off from being a dividend aristocrat from being a dividend aristocrat from being a dividend aristocrat but they're on their way to being a but they're on their way to being a but they're on their way to being a different aristocrat along with different aristocrat along with different aristocrat along with microsoft which is at years so microsoft which is at years so microsoft which is at years so do you own any of these top five do you own any of these top five do you own any of these top five dividend stocks go and comment below dividend stocks go and comment below dividend stocks go and comment below that's wraps up this video for the top that's wraps up this video for the top that's wraps up this video for the top five stocks of april if you have five stocks of april if you have five stocks of april if you have any comments questions or concerns leave any comments questions or concerns leave any comments questions or concerns leave a comment below a comment below a comment below hit me up on facegram twitter or shoot hit me up on facegram twitter or shoot hit me up on facegram twitter or shoot me an email as well me an email as well me an email as well until next time go and like and until next time go and like and until next time go and like and subscribe we'll see you next video subscribe we'll see you next video subscribe we'll see you next video thanks for watching WEBVTT Kind: captions Language: en hey guys it's a mod and Christina from hey guys it's a mod and Christina from hey guys it's a mod and Christina from my rich journey if you have been my rich journey if you have been my rich journey if you have been following our journey you know that we following our journey you know that we following our journey you know that we retired early at age and and we retired early at age and and we retired early at age and and we were able to do this because we achieved were able to do this because we achieved were able to do this because we achieved financial independence but we just financial independence but we just financial independence but we just didn't stumble into financial didn't stumble into financial didn't stumble into financial independence we had to take actionable independence we had to take actionable independence we had to take actionable steps in our lives in order to do this steps in our lives in order to do this steps in our lives in order to do this and so on today's video we want to share and so on today's video we want to share and so on today's video we want to share with you the things that we did in order with you the things that we did in order with you the things that we did in order to achieve financial independence and to achieve financial independence and to achieve financial independence and make the choice to retire early make the choice to retire early make the choice to retire early so our channel is all about making money so our channel is all about making money so our channel is all about making money saving money and investing money all on saving money and investing money all on saving money and investing money all on the road to financial independence and the road to financial independence and the road to financial independence and we share our story on our channel we share our story on our channel we share our story on our channel because we want to show you how everyday because we want to show you how everyday because we want to show you how everyday people can achieve financial people can achieve financial people can achieve financial independence and retire early now with independence and retire early now with independence and retire early now with over a hundred videos on our channel one over a hundred videos on our channel one over a hundred videos on our channel one of the questions we get all the time is of the questions we get all the time is of the questions we get all the time is where do I start my financial where do I start my financial where do I start my financial independence journey independence journey independence journey so recently Christina and I developed a so recently Christina and I developed a so recently Christina and I developed a workbook it is a step-by-step guide to workbook it is a step-by-step guide to workbook it is a step-by-step guide to guide you on your journey towards guide you on your journey towards guide you on your journey towards financial independence it starts you financial independence it starts you financial independence it starts you from the beginning and takes you all the from the beginning and takes you all the from the beginning and takes you all the way to the end and so we want to share a way to the end and so we want to share a way to the end and so we want to share a little bit about that workbook right now little bit about that workbook right now little bit about that workbook right now now in this workbook we share the now in this workbook we share the now in this workbook we share the specific holdings in each of our seven specific holdings in each of our seven specific holdings in each of our seven retirement accounts to give you an idea retirement accounts to give you an idea retirement accounts to give you an idea about how to design your retirement about how to design your retirement about how to design your retirement accounts we also show you how to accounts we also show you how to accounts we also show you how to calculate your fire number we provide calculate your fire number we provide calculate your fire number we provide our top side hustles for making more our top side hustles for making more our top side hustles for making more money we give you insight on saving money we give you insight on saving money we give you insight on saving money we include worksheets on tracking money we include worksheets on tracking money we include worksheets on tracking your debt via the snowball and Avalanche your debt via the snowball and Avalanche your debt via the snowball and Avalanche debt payoff method we talk about debt payoff method we talk about debt payoff method we talk about emergency funds we have a minimalist emergency funds we have a minimalist emergency funds we have a minimalist checklist we have pages on life checklist we have pages on life checklist we have pages on life optimization and goal-setting and we optimization and goal-setting and we optimization and goal-setting and we provide tons of sheets to track your provide tons of sheets to track your provide tons of sheets to track your expenses your investments and your expenses your investments and your expenses your investments and your progress towards fire so basically we progress towards fire so basically we progress towards fire so basically we designed this workbook to get you from designed this workbook to get you from designed this workbook to get you from thinking to fire to actually achieving thinking to fire to actually achieving thinking to fire to actually achieving fire and what's amazing is that the fire and what's amazing is that the fire and what's amazing is that the workbook is interactive you can get it workbook is interactive you can get it workbook is interactive you can get it in two versions either a Google sheet or in two versions either a Google sheet or in two versions either a Google sheet or an Excel workbook so you can go in there an Excel workbook so you can go in there an Excel workbook so you can go in there and play with the numbers change your and play with the numbers change your and play with the numbers change your scenarios change your investments but in scenarios change your investments but in scenarios change your investments but in the end you will have a financial end up the end you will have a financial end up the end you will have a financial end up plan so if you're interested in getting plan so if you're interested in getting plan so if you're interested in getting our work both we'll leave a link in the our work both we'll leave a link in the our work both we'll leave a link in the description box below but with that description box below but with that description box below but with that being said let's get into the nine being said let's get into the nine being said let's get into the nine things that we did in order to achieve things that we did in order to achieve things that we did in order to achieve fire so the first thing and this is how fire so the first thing and this is how fire so the first thing and this is how every fire journey starts is mindset we every fire journey starts is mindset we every fire journey starts is mindset we adopted a can-do mindset you see when adopted a can-do mindset you see when adopted a can-do mindset you see when you first develop your fire number it is you first develop your fire number it is you first develop your fire number it is a very large number and for most people a very large number and for most people a very large number and for most people that can be discouraging just on the that can be discouraging just on the that can be discouraging just on the surface but when you believe that you surface but when you believe that you surface but when you believe that you can achieve financial independence you can achieve financial independence you can achieve financial independence you see that number as a challenge that you see that number as a challenge that you see that number as a challenge that you can overcome so what do you do if you're can overcome so what do you do if you're can overcome so what do you do if you're not a naturally positive person but you not a naturally positive person but you not a naturally positive person but you want to adopt a positive mindset for want to adopt a positive mindset for want to adopt a positive mindset for fire fire fire well our recommendation is you make a well our recommendation is you make a well our recommendation is you make a list of all the challenges all the list of all the challenges all the list of all the challenges all the struggles that are facing you and as you struggles that are facing you and as you struggles that are facing you and as you make this list start thinking of make this list start thinking of make this list start thinking of solutions for each obstacle that you solutions for each obstacle that you solutions for each obstacle that you face and you don't have to come up with face and you don't have to come up with face and you don't have to come up with these solutions by yourself there is an these solutions by yourself there is an these solutions by yourself there is an entire fire community out there that has entire fire community out there that has entire fire community out there that has had those same challenges people that had those same challenges people that had those same challenges people that have had lower incomes people that have have had lower incomes people that have have had lower incomes people that have families find someone else that has been families find someone else that has been families find someone else that has been on this journey and identify how they on this journey and identify how they on this journey and identify how they overcame those same obstacles because overcame those same obstacles because overcame those same obstacles because there is a will and there is a way to there is a will and there is a way to there is a will and there is a way to get this done so the next thing that we get this done so the next thing that we get this done so the next thing that we did was we created a budget and in our did was we created a budget and in our did was we created a budget and in our budget we looked at all of our expenses budget we looked at all of our expenses budget we looked at all of our expenses and we tracked all of our expenses but and we tracked all of our expenses but and we tracked all of our expenses but the unique thing that we did with our the unique thing that we did with our the unique thing that we did with our budget is we created a pay yourself budget is we created a pay yourself budget is we created a pay yourself first budget and with that I mean that first budget and with that I mean that first budget and with that I mean that we made sure that we were investing our we made sure that we were investing our we made sure that we were investing our money first before we started spending money first before we started spending money first before we started spending our money on discretionary expenses now our money on discretionary expenses now our money on discretionary expenses now when we developed our pay yourself first when we developed our pay yourself first when we developed our pay yourself first budget we were prioritizing our budget we were prioritizing our budget we were prioritizing our investments but not just that we were investments but not just that we were investments but not just that we were prioritizing the investments that would prioritizing the investments that would prioritizing the investments that would support us in early retirement because support us in early retirement because support us in early retirement because early retirement and focusing on early retirement and focusing on early retirement and focusing on investments for early retirement are investments for early retirement are investments for early retirement are much different than focusing on much different than focusing on much different than focusing on investments for traditional retirement investments for traditional retirement investments for traditional retirement and so to develop a pay yourself first and so to develop a pay yourself first and so to develop a pay yourself first budget you want to focus on your budget you want to focus on your budget you want to focus on your investments and tracking your investments and tracking your investments and tracking your expenses now people hate doing budgets I expenses now people hate doing budgets I expenses now people hate doing budgets I hear people say that all the time but hear people say that all the time but hear people say that all the time but you know what if you hate doing budgets you know what if you hate doing budgets you know what if you hate doing budgets you need to get over it you need to get over it you need to get over it because you cannot achieve financial because you cannot achieve financial because you cannot achieve financial independence without a budget it is a independence without a budget it is a independence without a budget it is a part of the planning process I mean how part of the planning process I mean how part of the planning process I mean how do you calculate your fire number how do do you calculate your fire number how do do you calculate your fire number how do you determine what your expenses will be you determine what your expenses will be you determine what your expenses will be in retirement if you don't know what in retirement if you don't know what in retirement if you don't know what your expenses will be when you're not your expenses will be when you're not your expenses will be when you're not retired a budget is very important and retired a budget is very important and retired a budget is very important and this takes us to the next thing we did this takes us to the next thing we did this takes us to the next thing we did we calculated our fire number now this we calculated our fire number now this we calculated our fire number now this is a very powerful exercise and even if is a very powerful exercise and even if is a very powerful exercise and even if you don't want to retire early you you don't want to retire early you you don't want to retire early you should know what your fire number is should know what your fire number is should know what your fire number is because it is your freedom number it is because it is your freedom number it is because it is your freedom number it is the amount of money that you would need the amount of money that you would need the amount of money that you would need to sustain you for the rest of your life to sustain you for the rest of your life to sustain you for the rest of your life without ever having to work again and without ever having to work again and without ever having to work again and more people should know what that number more people should know what that number more people should know what that number is now we've talked about calculating is now we've talked about calculating is now we've talked about calculating your fire number in a lot of our other your fire number in a lot of our other your fire number in a lot of our other videos but to explain it briefly what videos but to explain it briefly what videos but to explain it briefly what you do is you look at your estimated or you do is you look at your estimated or you do is you look at your estimated or projected expenses during early projected expenses during early projected expenses during early retirement you take that annual amount retirement you take that annual amount retirement you take that annual amount and then you multiply it by that and then you multiply it by that and then you multiply it by that number is the amount of money that you number is the amount of money that you number is the amount of money that you would need in a stock portfolio in order would need in a stock portfolio in order would need in a stock portfolio in order to reach fire now that's if you're to reach fire now that's if you're to reach fire now that's if you're investing in a stock portfolio this investing in a stock portfolio this investing in a stock portfolio this number is even easier to calculate if number is even easier to calculate if number is even easier to calculate if you're investing in real estate because you're investing in real estate because you're investing in real estate because what you do is you take your expenses what you do is you take your expenses what you do is you take your expenses and you look at the income that you're and you look at the income that you're and you look at the income that you're generating from real estate and as long generating from real estate and as long generating from real estate and as long as those two numbers are the same you as those two numbers are the same you as those two numbers are the same you are financially independent now people are financially independent now people are financially independent now people tend to play games when they calculate tend to play games when they calculate tend to play games when they calculate their real estate number they often their real estate number they often their real estate number they often overestimate how much money they're overestimate how much money they're overestimate how much money they're gonna make in real estate they don't gonna make in real estate they don't gonna make in real estate they don't talk about vacancy rates they don't take talk about vacancy rates they don't take talk about vacancy rates they don't take into account maintenance fees but that into account maintenance fees but that into account maintenance fees but that is another way to calculate your fire is another way to calculate your fire is another way to calculate your fire number is with income producing assets number is with income producing assets number is with income producing assets like real estate so the next thing that like real estate so the next thing that like real estate so the next thing that we did was we created an incremental we did was we created an incremental we did was we created an incremental fire plan so after you determine your fire plan so after you determine your fire plan so after you determine your fire number you may think that the fire number you may think that the fire number you may think that the number seems way too huge and that you number seems way too huge and that you number seems way too huge and that you cannot achieve it but by creating an cannot achieve it but by creating an cannot achieve it but by creating an incremental fire plan and tracking that incremental fire plan and tracking that incremental fire plan and tracking that plan you are making your overall goal plan you are making your overall goal plan you are making your overall goal more achievable and with our plan we more achievable and with our plan we more achievable and with our plan we broke it down into ten stages and we broke it down into ten stages and we broke it down into ten stages and we loved going through each loved going through each loved going through each stage because the stages were not so far stage because the stages were not so far stage because the stages were not so far apart that we were disillusioned by the apart that we were disillusioned by the apart that we were disillusioned by the distance but when we hit the stage we distance but when we hit the stage we distance but when we hit the stage we celebrated and we knew that we were able celebrated and we knew that we were able celebrated and we knew that we were able to go through this stage by stage it was to go through this stage by stage it was to go through this stage by stage it was so inspiring to go from all the way to so inspiring to go from all the way to so inspiring to go from all the way to and now we're like above so it is and now we're like above so it is and now we're like above so it is really exciting so the next thing that really exciting so the next thing that really exciting so the next thing that we did after creating our incremental we did after creating our incremental we did after creating our incremental fire plan is we began cutting our fire plan is we began cutting our fire plan is we began cutting our expenses yes this is the action taking expenses yes this is the action taking expenses yes this is the action taking part of every plan you have to put the part of every plan you have to put the part of every plan you have to put the plan in action and for us it was looking plan in action and for us it was looking plan in action and for us it was looking at our budget and identifying where we at our budget and identifying where we at our budget and identifying where we could save money and when we looked at could save money and when we looked at could save money and when we looked at cutting our expenses we started with the cutting our expenses we started with the cutting our expenses we started with the biggest ones first biggest ones first biggest ones first like our housing we were able to live like our housing we were able to live like our housing we were able to live rent-free buy house hacking or by having rent-free buy house hacking or by having rent-free buy house hacking or by having our employer pay for our housing now our employer pay for our housing now our employer pay for our housing now that was a huge amount of money that we that was a huge amount of money that we that was a huge amount of money that we could save next we look at our could save next we look at our could save next we look at our transportation so we got rid of our transportation so we got rid of our transportation so we got rid of our fancy car and we drove an $ used fancy car and we drove an $ used fancy car and we drove an $ used minivan we went through each line item minivan we went through each line item minivan we went through each line item and identified any savings we could make and identified any savings we could make and identified any savings we could make we often talked about just getting % we often talked about just getting % we often talked about just getting % better and if you can challenge yourself better and if you can challenge yourself better and if you can challenge yourself just to save a % of your budget each just to save a % of your budget each just to save a % of your budget each and every month by the end of the year and every month by the end of the year and every month by the end of the year you will be saving % and that's you will be saving % and that's you will be saving % and that's percent that you can invest for percent that you can invest for percent that you can invest for financial independence so we talked financial independence so we talked financial independence so we talked about cutting our expenses and that was about cutting our expenses and that was about cutting our expenses and that was a huge way for us to reach fire but a huge way for us to reach fire but a huge way for us to reach fire but there is only so much that you can cut there is only so much that you can cut there is only so much that you can cut in terms of your expenses so the next in terms of your expenses so the next in terms of your expenses so the next thing that we focused on was making more thing that we focused on was making more thing that we focused on was making more money we were government employees so we money we were government employees so we money we were government employees so we didn't make a ton of money but we knew didn't make a ton of money but we knew didn't make a ton of money but we knew we had to make more money in order to we had to make more money in order to we had to make more money in order to reach our fire goal so we adopted new reach our fire goal so we adopted new reach our fire goal so we adopted new side hustles I mean we were side side hustles I mean we were side side hustles I mean we were side hustling our butt off you know that we hustling our butt off you know that we hustling our butt off you know that we drove for uber we were doing retail drove for uber we were doing retail drove for uber we were doing retail arbitrage we were doing Airbnb anything arbitrage we were doing Airbnb anything arbitrage we were doing Airbnb anything that we could get our hands on to sell that we could get our hands on to sell that we could get our hands on to sell we sold because we knew the power of we sold because we knew the power of we sold because we knew the power of that money if we could take that money that money if we could take that money that money if we could take that money and invest it as soon as possible and invest it as soon as possible and invest it as soon as possible that money would have more time to grow that money would have more time to grow that money would have more time to grow so on your journey towards fire you may so on your journey towards fire you may so on your journey towards fire you may be stuck at once be stuck at once be stuck at once salary you think but your salary is not salary you think but your salary is not salary you think but your salary is not all the money you can make you have a all the money you can make you have a all the money you can make you have a mind to make thousands and thousands of mind to make thousands and thousands of mind to make thousands and thousands of dollars more so you have to be creative dollars more so you have to be creative dollars more so you have to be creative and think of ways to make more money now and think of ways to make more money now and think of ways to make more money now the next thing that we focused on was the next thing that we focused on was the next thing that we focused on was becoming financially literate now we did becoming financially literate now we did becoming financially literate now we did this throughout our entire fire journey this throughout our entire fire journey this throughout our entire fire journey because it is so important to become because it is so important to become because it is so important to become financially literate because after you financially literate because after you financially literate because after you save all this money and after you make save all this money and after you make save all this money and after you make all this money you have to understand all this money you have to understand all this money you have to understand what you need to do with this money and what you need to do with this money and what you need to do with this money and becoming financially literate will help becoming financially literate will help becoming financially literate will help you do that oh I love the financial you do that oh I love the financial you do that oh I love the financial literacy part of this because it is the literacy part of this because it is the literacy part of this because it is the idea of teaching yourself to do this idea of teaching yourself to do this idea of teaching yourself to do this yourself I mean so many people rely on yourself I mean so many people rely on yourself I mean so many people rely on other people when it comes to their other people when it comes to their other people when it comes to their finances but you cannot rely on those finances but you cannot rely on those finances but you cannot rely on those people for the rest of your life it will people for the rest of your life it will people for the rest of your life it will actually suck you dry because they are actually suck you dry because they are actually suck you dry because they are charging you high expenses to do that charging you high expenses to do that charging you high expenses to do that when we know that in reality everyone is when we know that in reality everyone is when we know that in reality everyone is capable of doing this if you can learn capable of doing this if you can learn capable of doing this if you can learn how to open a netflix account then you how to open a netflix account then you how to open a netflix account then you can learn how to open a brokerage can learn how to open a brokerage can learn how to open a brokerage account these are things that you will account these are things that you will account these are things that you will pick up along your financial pick up along your financial pick up along your financial independence journey this type of independence journey this type of independence journey this type of financial literacy so anyone can become financial literacy so anyone can become financial literacy so anyone can become financially literate by simply taking financially literate by simply taking financially literate by simply taking the time to research and to learn read a the time to research and to learn read a the time to research and to learn read a book listen to podcasts watch YouTube book listen to podcasts watch YouTube book listen to podcasts watch YouTube channels am on and I learned all of our channels am on and I learned all of our channels am on and I learned all of our financial literacy ourselves we were financial literacy ourselves we were financial literacy ourselves we were reading books we were talking to people reading books we were talking to people reading books we were talking to people we were researching the topic so that we were researching the topic so that we were researching the topic so that when it was time for us to make when it was time for us to make when it was time for us to make investments we knew how we wanted to investments we knew how we wanted to investments we knew how we wanted to invest and where we wanted to invest our invest and where we wanted to invest our invest and where we wanted to invest our money and this brings us to the next money and this brings us to the next money and this brings us to the next part which is investing you cannot part which is investing you cannot part which is investing you cannot achieve financial independence without achieve financial independence without achieve financial independence without investing your money has to work harder investing your money has to work harder investing your money has to work harder than you and when you stop working your than you and when you stop working your than you and when you stop working your money should still be working you see money should still be working you see money should still be working you see that is the key to financial that is the key to financial that is the key to financial independence is that you have figured independence is that you have figured independence is that you have figured out how to put your money to work and so out how to put your money to work and so out how to put your money to work and so you must invest it and so that's exactly you must invest it and so that's exactly you must invest it and so that's exactly what we did what we did what we did we took all of the money that we saved we took all of the money that we saved we took all of the money that we saved all of the money that we earned the all of the money that we earned the all of the money that we earned the extra money - and we started in bed extra money - and we started in bed extra money - and we started in bed now with the rates on savings accounts now with the rates on savings accounts now with the rates on savings accounts how they are today there is no way to how they are today there is no way to how they are today there is no way to save your way to fire you really have to save your way to fire you really have to save your way to fire you really have to invest but you don't need to invest in invest but you don't need to invest in invest but you don't need to invest in the stock market you can invest in real the stock market you can invest in real the stock market you can invest in real estate if you want or if you're not estate if you want or if you're not estate if you want or if you're not interested in real estate invest in the interested in real estate invest in the interested in real estate invest in the stock market or do a combination of both stock market or do a combination of both stock market or do a combination of both really understand what you want to really understand what you want to really understand what you want to invest in how you want to invest in it invest in how you want to invest in it invest in how you want to invest in it and how it is gonna produce the income and how it is gonna produce the income and how it is gonna produce the income that you need in order to reach fire now that you need in order to reach fire now that you need in order to reach fire now I just want to mention one thing in our I just want to mention one thing in our I just want to mention one thing in our workbook we actually share all of the workbook we actually share all of the workbook we actually share all of the investments that we made in order to investments that we made in order to investments that we made in order to achieve fire we talked about the real achieve fire we talked about the real achieve fire we talked about the real estate that we invest in in the return estate that we invest in in the return estate that we invest in in the return that we got we also share each that we got we also share each that we got we also share each individual index fund and stock that we individual index fund and stock that we individual index fund and stock that we bought in order to get to this point we bought in order to get to this point we bought in order to get to this point we also shared the return now in our also shared the return now in our also shared the return now in our workbook we are showing you that just as workbook we are showing you that just as workbook we are showing you that just as an illustration please don't go out and an illustration please don't go out and an illustration please don't go out and copy it because everyone's circumstance copy it because everyone's circumstance copy it because everyone's circumstance is different is different is different but I did want to share that and the but I did want to share that and the but I did want to share that and the last thing that we did and we have been last thing that we did and we have been last thing that we did and we have been doing this our entire life is we doing this our entire life is we doing this our entire life is we surround ourselves with positive people surround ourselves with positive people surround ourselves with positive people people that will encourage us on this people that will encourage us on this people that will encourage us on this journey now we understand that you can't journey now we understand that you can't journey now we understand that you can't completely choose all the people that completely choose all the people that completely choose all the people that interact with you or that are involved interact with you or that are involved interact with you or that are involved in your life for example you may have in your life for example you may have in your life for example you may have family members that are negative people family members that are negative people family members that are negative people naturally but just understand that naturally but just understand that naturally but just understand that negative people are typically coming negative people are typically coming negative people are typically coming from a place of insecurity and once you from a place of insecurity and once you from a place of insecurity and once you understand that also understand that understand that also understand that understand that also understand that this is your journey and your journey is this is your journey and your journey is this is your journey and your journey is not going to be dictated by someone not going to be dictated by someone not going to be dictated by someone else's insecurities so those were the else's insecurities so those were the else's insecurities so those were the nine things that we did in order to nine things that we did in order to nine things that we did in order to achieve financial independence and achieve financial independence and achieve financial independence and retire early I hope that we have retire early I hope that we have retire early I hope that we have inspired you by sharing our things and inspired you by sharing our things and inspired you by sharing our things and if there are things that you are doing if there are things that you are doing if there are things that you are doing right now in your life that may inspire right now in your life that may inspire right now in your life that may inspire other people please leave them in the other people please leave them in the other people please leave them in the comment section below and as usual if comment section below and as usual if comment section below and as usual if you like this video give it a thumbs up you like this video give it a thumbs up you like this video give it a thumbs up subscribe to our Channel and join me subscribe to our Channel and join me subscribe to our Channel and join me journey journey journey [Music] WEBVTT Kind: captions Language: en on november th we quit doing on november th we quit doing on november th we quit doing all the things that the fire community all the things that the fire community all the things that the fire community does here's why we did it and what we does here's why we did it and what we does here's why we did it and what we took from it took from it took from it [Music] [Music] [Music] hi everyone i'm ryan and i'm kayla and hi everyone i'm ryan and i'm kayla and hi everyone i'm ryan and i'm kayla and we are bloggers at we are bloggers at we are bloggers at familyinfi.com where we talk about all familyinfi.com where we talk about all familyinfi.com where we talk about all things related to financial independence things related to financial independence things related to financial independence we decided to make this video a little we decided to make this video a little we decided to make this video a little bit more personal today and talk about bit more personal today and talk about bit more personal today and talk about why we why we why we quit the fire movement for the last two quit the fire movement for the last two quit the fire movement for the last two months months months we want everyone who watches our videos we want everyone who watches our videos we want everyone who watches our videos to know that we are real people to know that we are real people to know that we are real people just like you and guys we've had some just like you and guys we've had some just like you and guys we've had some pretty terrible hardships in our lives pretty terrible hardships in our lives pretty terrible hardships in our lives just like you we occasionally feel burnt just like you we occasionally feel burnt just like you we occasionally feel burnt out out out depressed or just completely overwhelmed depressed or just completely overwhelmed depressed or just completely overwhelmed when you feel like that you have to put when you feel like that you have to put when you feel like that you have to put your mental health your mental health your mental health first we decided to take a break from first we decided to take a break from first we decided to take a break from fire for two fire for two fire for two reasons our first reason is because we reasons our first reason is because we reasons our first reason is because we keep our fire plant keep our fire plant keep our fire plant tighter than a sauerkraut jar and if tighter than a sauerkraut jar and if tighter than a sauerkraut jar and if you've ever tried to open one of those you've ever tried to open one of those you've ever tried to open one of those glass jars glass jars glass jars you know exactly what i mean you know exactly what i mean you know exactly what i mean we want financial freedom as quickly as we want financial freedom as quickly as we want financial freedom as quickly as possible possible possible which naturally means that we usually which naturally means that we usually which naturally means that we usually live a frugal lifestyle live a frugal lifestyle live a frugal lifestyle and we have a plan for every dollar that and we have a plan for every dollar that and we have a plan for every dollar that we earn now we have rocked this we earn now we have rocked this we earn now we have rocked this lifestyle lifestyle lifestyle and it helped us become completely debt and it helped us become completely debt and it helped us become completely debt free free free earlier this year which is awesome earlier this year which is awesome earlier this year which is awesome however living a strict budget however living a strict budget however living a strict budget doesn't always scream fun doesn't always scream fun doesn't always scream fun now we don't want the fire community to now we don't want the fire community to now we don't want the fire community to attack us in the comments saying things attack us in the comments saying things attack us in the comments saying things like like like the fire movement doesn't mean never the fire movement doesn't mean never the fire movement doesn't mean never spending a dollar spending a dollar spending a dollar which i know that trust us when we say which i know that trust us when we say which i know that trust us when we say that we do that we do that we do and we do spend money but we are and we do spend money but we are and we do spend money but we are essentialists essentialists essentialists we only splurge on what we truly value we only splurge on what we truly value we only splurge on what we truly value it just so happens that one of the it just so happens that one of the it just so happens that one of the things we value things we value things we value the most is traveling and due to the the most is traveling and due to the the most is traveling and due to the pandemic pandemic pandemic this year we've not been able to even do this year we've not been able to even do this year we've not been able to even do any of that at all as first world any of that at all as first world any of that at all as first world problems as that may be problems as that may be problems as that may be not being able to travel for us is not being able to travel for us is not being able to travel for us is depressing depressing depressing and definitely had an effect on our and definitely had an effect on our and definitely had an effect on our mentality mentality mentality yes so we have not done any traveling yes so we have not done any traveling yes so we have not done any traveling this year this year this year and we tried to find other hobbies that and we tried to find other hobbies that and we tried to find other hobbies that would replace would replace would replace that love but nothing piqued our that love but nothing piqued our that love but nothing piqued our interest interest interest you could probably say that we actually you could probably say that we actually you could probably say that we actually tried to replace tried to replace tried to replace it by ramping up our love for financial it by ramping up our love for financial it by ramping up our love for financial freedom freedom freedom we were able to save and invest a lot we were able to save and invest a lot we were able to save and invest a lot more money more money more money than what we would have spending it on than what we would have spending it on than what we would have spending it on traveling traveling traveling and we did increase our overall net and we did increase our overall net and we did increase our overall net worth and have a very worth and have a very worth and have a very financially positive year we'll link financially positive year we'll link financially positive year we'll link that video that video that video in the description below you want to in the description below you want to in the description below you want to check it out yeah for sure check it out yeah for sure check it out yeah for sure so we are really grateful for those so we are really grateful for those so we are really grateful for those gains gains gains and i don't regret investing and saving and i don't regret investing and saving and i don't regret investing and saving more money more money more money but there is always a bet our lives but there is always a bet our lives but there is always a bet our lives started to feel a little robotic like as started to feel a little robotic like as started to feel a little robotic like as if on if on if on autopilot we would earn money and invest autopilot we would earn money and invest autopilot we would earn money and invest it it it earn money and invest it which again earn money and invest it which again earn money and invest it which again we don't regret doing however i'm not we don't regret doing however i'm not we don't regret doing however i'm not printing out photo albums printing out photo albums printing out photo albums of the fun memories we have contributing of the fun memories we have contributing of the fun memories we have contributing to our retirement accounts maybe that to our retirement accounts maybe that to our retirement accounts maybe that would make it more fun would make it more fun would make it more fun yeah maybe the point here is that we yeah maybe the point here is that we yeah maybe the point here is that we were starting to live life on were starting to live life on were starting to live life on autopilot and we don't want to live like autopilot and we don't want to live like autopilot and we don't want to live like that that that simply changing your lifestyle even simply changing your lifestyle even simply changing your lifestyle even temporarily temporarily temporarily can in a way feel like a vacation itself can in a way feel like a vacation itself can in a way feel like a vacation itself so we've decided to remedy this issue by so we've decided to remedy this issue by so we've decided to remedy this issue by putting putting putting fire on hold and spending money on fire on hold and spending money on fire on hold and spending money on things we don't things we don't things we don't necessarily value which is a huge necessarily value which is a huge necessarily value which is a huge change for us for example we allowed change for us for example we allowed change for us for example we allowed ourselves to ourselves to ourselves to impulse buy items at the store we impulse buy items at the store we impulse buy items at the store we started started started ordering takeout and we bought some ordering takeout and we bought some ordering takeout and we bought some pretty pretty pretty expensive things this was a big change expensive things this was a big change expensive things this was a big change and we'll discuss how that all turned and we'll discuss how that all turned and we'll discuss how that all turned out in just a moment out in just a moment out in just a moment but first we want to take a moment but first we want to take a moment but first we want to take a moment and tell you about the second reason we and tell you about the second reason we and tell you about the second reason we stopped the stopped the stopped the fire progress because fire progress because fire progress because this is important yeah i agree our this is important yeah i agree our this is important yeah i agree our number two reason number two reason number two reason is because we want to protect what is is because we want to protect what is is because we want to protect what is good in our lives good in our lives good in our lives we're being real here so let me give you we're being real here so let me give you we're being real here so let me give you an example of this an example of this an example of this i don't know if this is a thing for i don't know if this is a thing for i don't know if this is a thing for everybody or everybody or everybody or if it's a thing just for us so there was if it's a thing just for us so there was if it's a thing just for us so there was a time a time a time that we really tried to help out someone that we really tried to help out someone that we really tried to help out someone and we went above and beyond and we went above and beyond and we went above and beyond to get them on their feet during that to get them on their feet during that to get them on their feet during that time time time i was a photographer i always loved i was a photographer i always loved i was a photographer i always loved photography photography photography so i continued to do it but when we were so i continued to do it but when we were so i continued to do it but when we were helping this person helping this person helping this person i did not do a good job at protecting my i did not do a good job at protecting my i did not do a good job at protecting my mental health mental health mental health i ended up sinking into a deep i ended up sinking into a deep i ended up sinking into a deep depression depression depression i forced myself to continue even though i forced myself to continue even though i forced myself to continue even though i was i was i was in this depressive mental state what in this depressive mental state what in this depressive mental state what ended up happening ended up happening ended up happening was that those feelings i had towards my was that those feelings i had towards my was that those feelings i had towards my current situation current situation current situation ended up transferring to the love that i ended up transferring to the love that i ended up transferring to the love that i had for photography had for photography had for photography i lost all the joy i had photographing i lost all the joy i had photographing i lost all the joy i had photographing and to this day and to this day and to this day years later that joy still has not fully years later that joy still has not fully years later that joy still has not fully returned and i returned and i returned and i wish i would have allowed myself to wish i would have allowed myself to wish i would have allowed myself to break it off break it off break it off when i felt that way and returned back when i felt that way and returned back when i felt that way and returned back to it when my mental health was back to it when my mental health was back to it when my mental health was back together together together over the years i swore that i would over the years i swore that i would over the years i swore that i would never never never let myself lose a part of myself like let myself lose a part of myself like let myself lose a part of myself like that again that again that again in fact when we started blogging this in fact when we started blogging this in fact when we started blogging this situation situation situation inspired me to write about burnout and inspired me to write about burnout and inspired me to write about burnout and when it's okay when it's okay when it's okay to fall off the wagon since we practice to fall off the wagon since we practice to fall off the wagon since we practice what we preach we did this with our fire what we preach we did this with our fire what we preach we did this with our fire plan plan plan our fire plan is one thing that brings our fire plan is one thing that brings our fire plan is one thing that brings us us us a lot of joy it's not just a lot of joy it's not just a lot of joy it's not just the end result of being financially free the end result of being financially free the end result of being financially free but the journey that we love we love the but the journey that we love we love the but the journey that we love we love the community community community the learning the ability to live life the learning the ability to live life the learning the ability to live life differently differently differently than the majority of the population and than the majority of the population and than the majority of the population and breaking all the bad habits breaking all the bad habits breaking all the bad habits passed on from generation to generation passed on from generation to generation passed on from generation to generation to us the fire movement is worth to us the fire movement is worth to us the fire movement is worth protecting protecting protecting and that's why we put our journey on and that's why we put our journey on and that's why we put our journey on paul's paul's paul's not a very positive video today so far not a very positive video today so far not a very positive video today so far but do you want to know what the end but do you want to know what the end but do you want to know what the end result of doing this was result of doing this was result of doing this was all right so about a month and a half all right so about a month and a half all right so about a month and a half into this we had a lot of new into this we had a lot of new into this we had a lot of new gadgets you know we should create a gadgets you know we should create a gadgets you know we should create a video of our best and worst purchases video of our best and worst purchases video of our best and worst purchases because there were some live ones we can because there were some live ones we can because there were some live ones we can do that for the next one do that for the next one do that for the next one yeah let's do it because that will be yeah let's do it because that will be yeah let's do it because that will be fun so fun so fun so we were buying up all the things and we we were buying up all the things and we we were buying up all the things and we had zero guilt about doing this by the had zero guilt about doing this by the had zero guilt about doing this by the way way way because we planned and agreed to because we planned and agreed to because we planned and agreed to fall off the five wagons getting new fall off the five wagons getting new fall off the five wagons getting new stuff stuff stuff in the mail did exactly what we thought in the mail did exactly what we thought in the mail did exactly what we thought it would do it would do it would do it gave us small bursts of happiness it gave us small bursts of happiness it gave us small bursts of happiness then then then for the most part within a few moments for the most part within a few moments for the most part within a few moments that happiness that happiness that happiness had dissipated we ordered a lot of had dissipated we ordered a lot of had dissipated we ordered a lot of takeout takeout takeout which took the hassle of cooking off of which took the hassle of cooking off of which took the hassle of cooking off of our shoulders but within our shoulders but within our shoulders but within two to three weeks we got sick of the two to three weeks we got sick of the two to three weeks we got sick of the processed processed processed food prepared for masses additionally food prepared for masses additionally food prepared for masses additionally we decided to go above and beyond in we decided to go above and beyond in we decided to go above and beyond in gift giving this year gift giving this year gift giving this year we bought more gifts for people we we bought more gifts for people we we bought more gifts for people we usually don't usually don't usually don't we bought more expensive gifts and we we bought more expensive gifts and we we bought more expensive gifts and we bought even more gifts bought even more gifts bought even more gifts for our kids than we usually do so how for our kids than we usually do so how for our kids than we usually do so how did that turn out did that turn out did that turn out well these people were not any more well these people were not any more well these people were not any more grateful grateful grateful for the more expensive gifts in fact i for the more expensive gifts in fact i for the more expensive gifts in fact i think think think people like my homemade bakery items people like my homemade bakery items people like my homemade bakery items more more more than what we actually bought them and as than what we actually bought them and as than what we actually bought them and as far as our kids go far as our kids go far as our kids go they were really excited on christmas they were really excited on christmas they were really excited on christmas morning which morning which morning which all of us parents know that that is the all of us parents know that that is the all of us parents know that that is the excitement excitement excitement that we're going for anyway however it that we're going for anyway however it that we're going for anyway however it was short-lived was short-lived was short-lived they actually requested to return some they actually requested to return some they actually requested to return some gifts we got them gifts we got them gifts we got them which is fine but they had their which is fine but they had their which is fine but they had their favorites favorites favorites and the extra stuff was just that extra and the extra stuff was just that extra and the extra stuff was just that extra stuff ultimately all the extra stuff stuff ultimately all the extra stuff stuff ultimately all the extra stuff was just less money we had to put was just less money we had to put was just less money we had to put towards our ultimate goal towards our ultimate goal towards our ultimate goal which is financial freedom i'd say about which is financial freedom i'd say about which is financial freedom i'd say about mid-december-ish which was about five mid-december-ish which was about five mid-december-ish which was about five weeks into pausing our fire journey weeks into pausing our fire journey weeks into pausing our fire journey that we started getting sick of this that we started getting sick of this that we started getting sick of this change in lifestyle change in lifestyle change in lifestyle we felt like we were living day by day we felt like we were living day by day we felt like we were living day by day and there was no satisfaction and there was no satisfaction and there was no satisfaction of working towards our goal it was of working towards our goal it was of working towards our goal it was actually actually actually way more boring and less satisfactory way more boring and less satisfactory way more boring and less satisfactory than just putting our money towards our than just putting our money towards our than just putting our money towards our investments investments investments kayla actually approached me when she kayla actually approached me when she kayla actually approached me when she started feeling this way started feeling this way started feeling this way and i responded with the same exact and i responded with the same exact and i responded with the same exact feelings we came together and started feelings we came together and started feelings we came together and started talking about how talking about how talking about how we should move forward and we both we should move forward and we both we should move forward and we both agreed that we wanted to get back agreed that we wanted to get back agreed that we wanted to get back onto the five wagon however onto the five wagon however onto the five wagon however we had a plan for jumping back onto we we had a plan for jumping back onto we we had a plan for jumping back onto we don't just don't just don't just want to be on the wagon we want to drive want to be on the wagon we want to drive want to be on the wagon we want to drive it it it we decided that we were going to set a we decided that we were going to set a we decided that we were going to set a date and on that date date and on that date date and on that date we were going to be back on and that we were going to be back on and that we were going to be back on and that date was january date was january date was january the nd by picking january the nd the nd by picking january the nd the nd by picking january the nd that allowed us to get through the that allowed us to get through the that allowed us to get through the holidays give us even holidays give us even holidays give us even more time than we actually needed to get more time than we actually needed to get more time than we actually needed to get our mindset right our mindset right our mindset right and give us the excitement of something and give us the excitement of something and give us the excitement of something to look forward to to look forward to to look forward to and we are very happy and excited to get and we are very happy and excited to get and we are very happy and excited to get back back back into it we have come up with some pretty into it we have come up with some pretty into it we have come up with some pretty big goals for and are really big goals for and are really big goals for and are really looking forward to them looking forward to them looking forward to them listen guys the past year has been all listen guys the past year has been all listen guys the past year has been all sorts of crazy sorts of crazy sorts of crazy people if you are feeling at all people if you are feeling at all people if you are feeling at all overwhelmed or burned out overwhelmed or burned out overwhelmed or burned out i'd like to give you the same advice it i'd like to give you the same advice it i'd like to give you the same advice it doesn't even doesn't even doesn't even have to be fire related put your health have to be fire related put your health have to be fire related put your health first first first and protect the things that bring you and protect the things that bring you and protect the things that bring you joy joy joy exactly at the end of the day money is exactly at the end of the day money is exactly at the end of the day money is just paper just paper just paper if you are pursuing fire as hardcore as if you are pursuing fire as hardcore as if you are pursuing fire as hardcore as we we we are you shouldn't be afraid to put it on are you shouldn't be afraid to put it on are you shouldn't be afraid to put it on calls every now and then calls every now and then calls every now and then and change things up that way you can and change things up that way you can and change things up that way you can remind yourself remind yourself remind yourself why you are on the journey to begin with why you are on the journey to begin with why you are on the journey to begin with you should plan for something like this you should plan for something like this you should plan for something like this though though though you certainly do not want your you certainly do not want your you certainly do not want your retirement plan retirement plan retirement plan to be set aside and end up having to be set aside and end up having to be set aside and end up having thousands of dollars in credit card debt thousands of dollars in credit card debt thousands of dollars in credit card debt yeah we're not advocating for that if yeah we're not advocating for that if yeah we're not advocating for that if you are going to jump off the wagon you are going to jump off the wagon you are going to jump off the wagon have a survival bag and make sure the have a survival bag and make sure the have a survival bag and make sure the landing is solved landing is solved landing is solved our survival bag was our plan and being our survival bag was our plan and being our survival bag was our plan and being debt free debt free debt free gave us that soft landing we want to gave us that soft landing we want to gave us that soft landing we want to know if you've ever done something know if you've ever done something know if you've ever done something similar similar similar like this in your life and let us know like this in your life and let us know like this in your life and let us know in the comments below in the comments below in the comments below if you want to join us on this journey if you want to join us on this journey if you want to join us on this journey be sure be sure be sure to subscribe to our channel and we'll to subscribe to our channel and we'll to subscribe to our channel and we'll see you in the next video see you in the next video see you in the next video you WEBVTT Kind: captions Language: en hey guys it's aman and christina from hey guys it's aman and christina from hey guys it's aman and christina from our rich journey our rich journey our rich journey on today's video we are gonna get real on today's video we are gonna get real on today's video we are gonna get real about the fire movement about the fire movement about the fire movement we have been making some observations we have been making some observations we have been making some observations over the past couple of years over the past couple of years over the past couple of years and we have some thoughts to share with and we have some thoughts to share with and we have some thoughts to share with you today you today you today because if you know our story you know because if you know our story you know because if you know our story you know that christina and i that christina and i that christina and i retire before the age of and we retire before the age of and we retire before the age of and we are in fact fire and we share a lot of are in fact fire and we share a lot of are in fact fire and we share a lot of our journey on this youtube channel our journey on this youtube channel our journey on this youtube channel but we haven't shared our thoughts on but we haven't shared our thoughts on but we haven't shared our thoughts on the overall movement the overall movement the overall movement and so on today's video we are going to and so on today's video we are going to and so on today's video we are going to get into the nitty-gritty get into the nitty-gritty get into the nitty-gritty and we might hurt some feelings in this and we might hurt some feelings in this and we might hurt some feelings in this conversation conversation conversation but we think by the end of it your but we think by the end of it your but we think by the end of it your perspective on the fire movement perspective on the fire movement perspective on the fire movement will change so if you're new to our will change so if you're new to our will change so if you're new to our channel our channel is all about making channel our channel is all about making channel our channel is all about making money saving money and investing money money saving money and investing money money saving money and investing money on the road to financial independence on the road to financial independence on the road to financial independence ahmad and i we're on the road to ahmad and i we're on the road to ahmad and i we're on the road to financial independence for eight years financial independence for eight years financial independence for eight years we quit our federal government jobs and we quit our federal government jobs and we quit our federal government jobs and we retired here in portugal we retired here in portugal we retired here in portugal so we have been retired for a little so we have been retired for a little so we have been retired for a little more than one year more than one year more than one year and we have seen all of these different and we have seen all of these different and we have seen all of these different articles and videos articles and videos articles and videos so many things about fire but we have so many things about fire but we have so many things about fire but we have been living the fire lifestyle so we been living the fire lifestyle so we been living the fire lifestyle so we think we have think we have think we have great insight into the fire movement and great insight into the fire movement and great insight into the fire movement and so so so in this video what we really want to in this video what we really want to in this video what we really want to focus on are some of the things that focus on are some of the things that focus on are some of the things that people get people get people get wrong about the fire movement so the wrong about the fire movement so the wrong about the fire movement so the first thing first thing first thing and this is a big one is that most and this is a big one is that most and this is a big one is that most people people people really don't understand how people that really don't understand how people that really don't understand how people that are fire are fire are fire live off of their investments i mean if live off of their investments i mean if live off of their investments i mean if you go out right now and you you go out right now and you you go out right now and you survey some regular people you say to survey some regular people you say to survey some regular people you say to them them them how much money do you need to quit your how much money do you need to quit your how much money do you need to quit your job right now and never work again job right now and never work again job right now and never work again most people would say most people would say most people would say million dollars in order to do this million dollars in order to do this million dollars in order to do this that's because that's because that's because most people have never really thought most people have never really thought most people have never really thought about what it takes about what it takes about what it takes to retire early and live off of their to retire early and live off of their to retire early and live off of their investments investments investments they don't know about the four percent they don't know about the four percent they don't know about the four percent rule they don't know about rule they don't know about rule they don't know about all of the ways that your income is all of the ways that your income is all of the ways that your income is treated differently treated differently treated differently when you're living off of your when you're living off of your when you're living off of your investments the tax benefits when you investments the tax benefits when you investments the tax benefits when you are fire are fire are fire are amazing you have a lot more control are amazing you have a lot more control are amazing you have a lot more control and so there are so many and so there are so many and so there are so many things about your investment portfolio things about your investment portfolio things about your investment portfolio when you're fired when you're fired when you're fired that most people have no idea about and that most people have no idea about and that most people have no idea about and this this this we think is the biggest misconception we think is the biggest misconception we think is the biggest misconception about the fire movement about the fire movement about the fire movement is that people that are fire they is that people that are fire they is that people that are fire they understand understand understand how the stock market or how their other how the stock market or how their other how the stock market or how their other investments investments investments really support them in early retirement really support them in early retirement really support them in early retirement they don't need they don't need they don't need millions of dollars to retire they just millions of dollars to retire they just millions of dollars to retire they just need need need the right portfolio for their situation the right portfolio for their situation the right portfolio for their situation now ahmad is mentioning the everyday now ahmad is mentioning the everyday now ahmad is mentioning the everyday person person person but this applies to financial gurus it but this applies to financial gurus it but this applies to financial gurus it applies to financial advisors applies to financial advisors applies to financial advisors a lot of people even at that higher a lot of people even at that higher a lot of people even at that higher level still don't understand level still don't understand level still don't understand the mechanics of withdrawing your money the mechanics of withdrawing your money the mechanics of withdrawing your money in early retirement in early retirement in early retirement so it's a huge misconception that you so it's a huge misconception that you so it's a huge misconception that you need millions upon millions upon need millions upon millions upon need millions upon millions upon millions of dollars millions of dollars millions of dollars to fire the next thing that people have to fire the next thing that people have to fire the next thing that people have wrong about the wrong about the wrong about the fire movement is that the fire movement fire movement is that the fire movement fire movement is that the fire movement is some new fad is some new fad is some new fad i mean saying that financial i mean saying that financial i mean saying that financial independence is new independence is new independence is new is like saying investments are new is like saying investments are new is like saying investments are new people have been people have been people have been investing and living off of their investing and living off of their investing and living off of their investments since investments since investments since investments were since they began in investments were since they began in investments were since they began in fact fact fact there have been people that have made there have been people that have made there have been people that have made investments early in their lives investments early in their lives investments early in their lives and have been able to live off of those and have been able to live off of those and have been able to live off of those investments for the rest of their lives investments for the rest of their lives investments for the rest of their lives the problem is in the past when you the problem is in the past when you the problem is in the past when you encountered these people encountered these people encountered these people they didn't say they were fire they just they didn't say they were fire they just they didn't say they were fire they just said they lived off of their investments said they lived off of their investments said they lived off of their investments and this is kind of a challenge that me and this is kind of a challenge that me and this is kind of a challenge that me and christina have as well and christina have as well and christina have as well when we tell people that we are when we tell people that we are when we tell people that we are financially independent and we retired financially independent and we retired financially independent and we retired early early early and they know nothing about the fire and they know nothing about the fire and they know nothing about the fire movement it's hard for them to grasp movement it's hard for them to grasp movement it's hard for them to grasp but as we start to explain that we live but as we start to explain that we live but as we start to explain that we live off of our investments off of our investments off of our investments the first thing they say is say oh so the first thing they say is say oh so the first thing they say is say oh so you're an investor you're an investor you're an investor well i guess we are but the idea that well i guess we are but the idea that well i guess we are but the idea that fire is brand new the term may be brand fire is brand new the term may be brand fire is brand new the term may be brand new new new but this idea of financial independence but this idea of financial independence but this idea of financial independence and living off of your investments for and living off of your investments for and living off of your investments for the rest of your life the rest of your life the rest of your life has been around forever now the next has been around forever now the next has been around forever now the next misconception misconception misconception about fire is that people that are about fire is that people that are about fire is that people that are pursuing or that have achieved pursuing or that have achieved pursuing or that have achieved fire are living incredibly frugal lives fire are living incredibly frugal lives fire are living incredibly frugal lives that they are not that they are not that they are not enjoying and that is not the case no enjoying and that is not the case no enjoying and that is not the case no that that isn't the case that that isn't the case that that isn't the case because this idea of deprivation from because this idea of deprivation from because this idea of deprivation from taking the joys out of life in order to taking the joys out of life in order to taking the joys out of life in order to pursue this pursue this pursue this you could not consistently do this for a you could not consistently do this for a you could not consistently do this for a long enough amount of time to achieve long enough amount of time to achieve long enough amount of time to achieve fire fire fire look at our situation we achieved fire look at our situation we achieved fire look at our situation we achieved fire in eight years in eight years in eight years but some people are taking but some people are taking but some people are taking years years years on this journey towards fire could you on this journey towards fire could you on this journey towards fire could you imagine people depriving themselves of imagine people depriving themselves of imagine people depriving themselves of the joys of life the joys of life the joys of life to get to fire it just isn't sustainable to get to fire it just isn't sustainable to get to fire it just isn't sustainable on our journey to financial independence on our journey to financial independence on our journey to financial independence we wanted to make sure that our journey we wanted to make sure that our journey we wanted to make sure that our journey was fun was fun was fun so we wanted to make sure that we so we wanted to make sure that we so we wanted to make sure that we weren't depriving ourselves of the weren't depriving ourselves of the weren't depriving ourselves of the things that we found things that we found things that we found fun we traveled the world during our fun we traveled the world during our fun we traveled the world during our fire journey fire journey fire journey we went to sporting events and yes we we went to sporting events and yes we we went to sporting events and yes we even ate out even ate out even ate out we did all of these things we didn't we did all of these things we didn't we did all of these things we didn't live that frugal lifestyle and yet live that frugal lifestyle and yet live that frugal lifestyle and yet at the same time after eight years we at the same time after eight years we at the same time after eight years we were able to achieve financial were able to achieve financial were able to achieve financial independence and retire early independence and retire early independence and retire early and we were able to do this like so many and we were able to do this like so many and we were able to do this like so many other people that are in the fire other people that are in the fire other people that are in the fire movement movement movement because we re-prioritized our lives and because we re-prioritized our lives and because we re-prioritized our lives and the major shift the major shift the major shift was shifting away from the materialistic was shifting away from the materialistic was shifting away from the materialistic things things things we did not drive a brand new car or live we did not drive a brand new car or live we did not drive a brand new car or live in a house in a house in a house that was so big that we weren't using that was so big that we weren't using that was so big that we weren't using some of the rooms in it some of the rooms in it some of the rooms in it we were minimalists we were efficient in we were minimalists we were efficient in we were minimalists we were efficient in how we spent our money how we spent our money how we spent our money a lot of people in the fire movement a lot of people in the fire movement a lot of people in the fire movement will say that they were intentional will say that they were intentional will say that they were intentional and when you are intentional on this and when you are intentional on this and when you are intentional on this journey you journey you journey you intentionally put your money where you intentionally put your money where you intentionally put your money where you get the biggest bang for it get the biggest bang for it get the biggest bang for it and so investing in the stock market in and so investing in the stock market in and so investing in the stock market in real estate real estate real estate and carving off money for things that and carving off money for things that and carving off money for things that make your journey make your journey make your journey fun and exciting is something that fun and exciting is something that fun and exciting is something that people in the fire movement people in the fire movement people in the fire movement often do and the next misconception often do and the next misconception often do and the next misconception about fire is that it takes money to about fire is that it takes money to about fire is that it takes money to make money make money make money and what i mean by this is that people and what i mean by this is that people and what i mean by this is that people when they think about people that can when they think about people that can when they think about people that can reach financial independence and retire reach financial independence and retire reach financial independence and retire early those type of people have to early those type of people have to early those type of people have to already be millionaires already be millionaires already be millionaires they have to have this income where they have to have this income where they have to have this income where they're making six figures they're making six figures they're making six figures or more in order to reach fire and that or more in order to reach fire and that or more in order to reach fire and that is not the case is not the case is not the case because if you research fire and you because if you research fire and you because if you research fire and you understand the fire rules and how much understand the fire rules and how much understand the fire rules and how much money you need to amass money you need to amass money you need to amass in order to reach fire it's all unique in order to reach fire it's all unique in order to reach fire it's all unique to each person to each person to each person it's based off of your expenses and if it's based off of your expenses and if it's based off of your expenses and if it's based off of your expenses it's based off of your expenses it's based off of your expenses if you make for example a year if you make for example a year if you make for example a year your expenses are likely less than your expenses are likely less than your expenses are likely less than someone that makes someone that makes someone that makes a year so your number to reach a year so your number to reach a year so your number to reach financial independence financial independence financial independence is going to be lower so you don't is going to be lower so you don't is going to be lower so you don't necessarily have to be necessarily have to be necessarily have to be this wealthy billionaire millionaire in this wealthy billionaire millionaire in this wealthy billionaire millionaire in order to reach financial independence order to reach financial independence order to reach financial independence and this is a big point that people and this is a big point that people and this is a big point that people often overlook often overlook often overlook it's not about making more money it's it's not about making more money it's it's not about making more money it's about about about saving more money it's about using the saving more money it's about using the saving more money it's about using the money that you are money that you are money that you are already making and putting that money to already making and putting that money to already making and putting that money to work work work so figuring out ways to live a more so figuring out ways to live a more so figuring out ways to live a more intentional life intentional life intentional life and save the money that you have because and save the money that you have because and save the money that you have because if you can increase if you can increase if you can increase your savings rate you can achieve fire i your savings rate you can achieve fire i your savings rate you can achieve fire i mean look at the traditional mean look at the traditional mean look at the traditional retiree they save five percent of their retiree they save five percent of their retiree they save five percent of their income income income in order to retire at age in order to retire at age in order to retire at age but if you can increase your savings but if you can increase your savings but if you can increase your savings rate from five percent rate from five percent rate from five percent to ten percent to twenty percent to to ten percent to twenty percent to to ten percent to twenty percent to fifty percent fifty percent fifty percent you can see how you can retire early you can see how you can retire early you can see how you can retire early and the next misconception about fire is and the next misconception about fire is and the next misconception about fire is that people that are pursuing fire that people that are pursuing fire that people that are pursuing fire are too passionate about it and they are are too passionate about it and they are are too passionate about it and they are pushing that fire concept pushing that fire concept pushing that fire concept on everyone they know now this is coming on everyone they know now this is coming on everyone they know now this is coming from us who has created from us who has created from us who has created a youtube channel about fire and i will a youtube channel about fire and i will a youtube channel about fire and i will tell you tell you tell you just from our experience alone when we just from our experience alone when we just from our experience alone when we talk to people about fire talk to people about fire talk to people about fire people have to be ready to embrace the people have to be ready to embrace the people have to be ready to embrace the concept of fire concept of fire concept of fire you can't push fire on someone they have you can't push fire on someone they have you can't push fire on someone they have to be ready to to be ready to to be ready to understand the concepts they have to be understand the concepts they have to be understand the concepts they have to be ready to invest ready to invest ready to invest they have to be ready to look at their they have to be ready to look at their they have to be ready to look at their finances and budget appropriately finances and budget appropriately finances and budget appropriately so there's no way that people can push so there's no way that people can push so there's no way that people can push fire fire fire on people that aren't interested in it on people that aren't interested in it on people that aren't interested in it or are that aren't or are that aren't or are that aren't ready for it and christina is exactly ready for it and christina is exactly ready for it and christina is exactly right right right you cannot push fire on someone that is you cannot push fire on someone that is you cannot push fire on someone that is not ready not ready not ready this is the reason why we call our this is the reason why we call our this is the reason why we call our channel our channel our channel our rich journey because it is our rich journey because it is our rich journey because it is our experience experience experience and if for some reason our journey and if for some reason our journey and if for some reason our journey resonates with you resonates with you resonates with you then you can create your own fire then you can create your own fire then you can create your own fire journey and that's why we created this journey and that's why we created this journey and that's why we created this channel channel channel for people that are interested in our for people that are interested in our for people that are interested in our journey they can join the journey and journey they can join the journey and journey they can join the journey and people that aren't ready for it yet people that aren't ready for it yet people that aren't ready for it yet maybe they'll come along eventually and maybe they'll come along eventually and maybe they'll come along eventually and maybe they won't but fire maybe they won't but fire maybe they won't but fire isn't for everyone and it's not for us isn't for everyone and it's not for us isn't for everyone and it's not for us to tell you to tell you to tell you that you should do it we think it's a that you should do it we think it's a that you should do it we think it's a good idea and we think that when you do good idea and we think that when you do good idea and we think that when you do it it it your life will be much better than what your life will be much better than what your life will be much better than what it is today but it's it is today but it's it is today but it's always up to you the next misconception always up to you the next misconception always up to you the next misconception is that the fire movement is very small is that the fire movement is very small is that the fire movement is very small and the people that fit within that and the people that fit within that and the people that fit within that movement are a very specific type of movement are a very specific type of movement are a very specific type of person person person and that cannot be further from the and that cannot be further from the and that cannot be further from the truth so truth so truth so many people contact us about their own many people contact us about their own many people contact us about their own unique unique unique fire journey people that have different fire journey people that have different fire journey people that have different professions professions professions different backgrounds ethnicities different backgrounds ethnicities different backgrounds ethnicities religions the fire movement religions the fire movement religions the fire movement you cannot pigeonhole one type of person you cannot pigeonhole one type of person you cannot pigeonhole one type of person into that movement into that movement into that movement it is open to everyone and it is it is open to everyone and it is it is open to everyone and it is worldwide and it is growing worldwide and it is growing worldwide and it is growing and we recently realized the fire and we recently realized the fire and we recently realized the fire movement is a lot movement is a lot movement is a lot bigger than we thought when we are bigger than we thought when we are bigger than we thought when we are starting to get recognized starting to get recognized starting to get recognized on the street and people are asking us on the street and people are asking us on the street and people are asking us about fire about fire about fire we live in portugal and people here are we live in portugal and people here are we live in portugal and people here are talking about fire talking about fire talking about fire so it is a worldwide phenomenon i so it is a worldwide phenomenon i so it is a worldwide phenomenon i remember we were in lisbon one day remember we were in lisbon one day remember we were in lisbon one day and someone came up to us and this guy and someone came up to us and this guy and someone came up to us and this guy said i am in the military said i am in the military said i am in the military and i live in germany and i have been and i live in germany and i have been and i live in germany and i have been following your channel following your channel following your channel since you guys had subscribers we since you guys had subscribers we since you guys had subscribers we have over subscribers right now have over subscribers right now have over subscribers right now and it is amazing how this movement is and it is amazing how this movement is and it is amazing how this movement is growing growing growing and the reason why we really wanted to and the reason why we really wanted to and the reason why we really wanted to talk about this misconception talk about this misconception talk about this misconception is because we want you to know wherever is because we want you to know wherever is because we want you to know wherever you are wherever you fit into this piece you are wherever you fit into this piece you are wherever you fit into this piece in the fire movement in the fire movement in the fire movement this fire movement also belongs to you this fire movement also belongs to you this fire movement also belongs to you and you can also be a part of it and you can also be a part of it and you can also be a part of it and the last point and this is not a and the last point and this is not a and the last point and this is not a misconception misconception misconception but is more of an editorial what we want but is more of an editorial what we want but is more of an editorial what we want to do to do to do is we want to see people talk about is we want to see people talk about is we want to see people talk about financial independence financial independence financial independence in a more common way for so long in a more common way for so long in a more common way for so long we have been talking about some of the we have been talking about some of the we have been talking about some of the more more more what we think are the basics of personal what we think are the basics of personal what we think are the basics of personal finance finance finance about good credit and about debt freedom about good credit and about debt freedom about good credit and about debt freedom well we need to start introducing well we need to start introducing well we need to start introducing financial independence into the financial independence into the financial independence into the conversation and you don't have to talk conversation and you don't have to talk conversation and you don't have to talk about retiring early about retiring early about retiring early but imagine if it was more common but imagine if it was more common but imagine if it was more common to talk about achieving financial to talk about achieving financial to talk about achieving financial independence independence independence as it was to talk about maintaining a as it was to talk about maintaining a as it was to talk about maintaining a good credit score good credit score good credit score or debt freedom imagine where we could or debt freedom imagine where we could or debt freedom imagine where we could be as a society be as a society be as a society and so this is one of the things that we and so this is one of the things that we and so this is one of the things that we love love love about this movement because it has about this movement because it has about this movement because it has extended the extended the extended the conversation and so it is out there in conversation and so it is out there in conversation and so it is out there in the world the world the world for people to latch on to it can make for people to latch on to it can make for people to latch on to it can make their lives their lives their lives much better so those are our thoughts on much better so those are our thoughts on much better so those are our thoughts on the fire movement we would love to hear the fire movement we would love to hear the fire movement we would love to hear your thoughts we'd love to hear about your thoughts we'd love to hear about your thoughts we'd love to hear about your journey on the fire movement your journey on the fire movement your journey on the fire movement leave a comment below and of course if leave a comment below and of course if leave a comment below and of course if you like this video make sure you give you like this video make sure you give you like this video make sure you give it a thumbs up it a thumbs up it a thumbs up subscribe to our channel and join the journey [Music] you WEBVTT Kind: captions Language: en if you take the red jellybeans it'll if you take the red jellybeans it'll if you take the red jellybeans it'll open your mind up to the truths about open your mind up to the truths about open your mind up to the truths about finance but if you take the blue finance but if you take the blue finance but if you take the blue jellybeans your life will go back to jellybeans your life will go back to jellybeans your life will go back to normal as if nothing has changed that normal as if nothing has changed that normal as if nothing has changed that speech is a bit of a cliche bow isn't it speech is a bit of a cliche bow isn't it speech is a bit of a cliche bow isn't it yeah probs is there really some secret yeah probs is there really some secret yeah probs is there really some secret that's gonna unlock my mind about that's gonna unlock my mind about that's gonna unlock my mind about financial independence well it's not financial independence well it's not financial independence well it's not really a secret everyone knows what to really a secret everyone knows what to really a secret everyone knows what to do they just kind of don't do it thought do they just kind of don't do it thought do they just kind of don't do it thought so hey can I have both of them I'm a so hey can I have both of them I'm a so hey can I have both of them I'm a little hungry a lot of the information little hungry a lot of the information little hungry a lot of the information that we're talking about money is wrong that we're talking about money is wrong that we're talking about money is wrong the general consensus is that you do the general consensus is that you do the general consensus is that you do your best in school gets good grades so your best in school gets good grades so your best in school gets good grades so you can get a good job buy a house buy a you can get a good job buy a house buy a you can get a good job buy a house buy a car buy furniture buy new clothes find a car buy furniture buy new clothes find a car buy furniture buy new clothes find a partner have a big wedding have kids buy partner have a big wedding have kids buy partner have a big wedding have kids buy baby furniture buy a bigger car renovate baby furniture buy a bigger car renovate baby furniture buy a bigger car renovate the house spend on good schools send the house spend on good schools send the house spend on good schools send them to university buy a caravan travel them to university buy a caravan travel them to university buy a caravan travel around a bit and finally when you're around a bit and finally when you're around a bit and finally when you're retire and hope that you've paid the retire and hope that you've paid the retire and hope that you've paid the house off by then so more and more house off by then so more and more house off by then so more and more people are realizing that what we're people are realizing that what we're people are realizing that what we're being told about money doesn't always being told about money doesn't always being told about money doesn't always get you ahead financially so right now get you ahead financially so right now get you ahead financially so right now there's this movement a group of people there's this movement a group of people there's this movement a group of people that don't want to follow this path they that don't want to follow this path they that don't want to follow this path they want to change their lifestyles and want to change their lifestyles and want to change their lifestyles and retire early and reach financial retire early and reach financial retire early and reach financial independence as fast as possible so they independence as fast as possible so they independence as fast as possible so they don't have to worry about money in the don't have to worry about money in the don't have to worry about money in the future and whether you want to retire future and whether you want to retire future and whether you want to retire early or not we can actually learn a lot early or not we can actually learn a lot early or not we can actually learn a lot from them so in this video I'm going to from them so in this video I'm going to from them so in this video I'm going to talk about some of the lessons that the talk about some of the lessons that the talk about some of the lessons that the fire movement can teach us all about fire movement can teach us all about fire movement can teach us all about money money money we've all heard that we should be living we've all heard that we should be living we've all heard that we should be living below our means spending less than we below our means spending less than we below our means spending less than we earn but many people just don't or can earn but many people just don't or can earn but many people just don't or can in fact the majority of people four out in fact the majority of people four out in fact the majority of people four out of five in the US according to this CNBC of five in the US according to this CNBC of five in the US according to this CNBC article are living paycheck to paycheck article are living paycheck to paycheck article are living paycheck to paycheck and I imagine it's similar here in and I imagine it's similar here in and I imagine it's similar here in Australia and it's not just the lower Australia and it's not just the lower Australia and it's not just the lower class all those living close to the class all those living close to the class all those living close to the poverty line as you would think it's poverty line as you would think it's poverty line as you would think it's people who can afford to cut back but people who can afford to cut back but people who can afford to cut back but choose a certain lifestyle now it's one choose a certain lifestyle now it's one choose a certain lifestyle now it's one thing if your circumstances dictate what thing if your circumstances dictate what thing if your circumstances dictate what you can afford or not but it's quite you can afford or not but it's quite you can afford or not but it's quite another if changing your spending another if changing your spending another if changing your spending patterns is really going to impact and patterns is really going to impact and patterns is really going to impact and change your financial future in the change your financial future in the change your financial future in the book The Millionaire Next Door by Thomas book The Millionaire Next Door by Thomas book The Millionaire Next Door by Thomas Stanley and William Danko they Stanley and William Danko they Stanley and William Danko they discovered it wasn't always the people discovered it wasn't always the people discovered it wasn't always the people who owned big houses and flashy cars who who owned big houses and flashy cars who who owned big houses and flashy cars who were actually rich were actually rich were actually rich it could be anyone even your neighbor it could be anyone even your neighbor it could be anyone even your neighbor and one of the secrets to these and one of the secrets to these and one of the secrets to these invisible rich people was the fact that invisible rich people was the fact that invisible rich people was the fact that they were frugal living well below their they were frugal living well below their they were frugal living well below their means and saving and investing the means and saving and investing the means and saving and investing the majority of their money is the concept majority of their money is the concept majority of their money is the concept that's carried on into the fire movement that's carried on into the fire movement that's carried on into the fire movement where some of the people can save up to where some of the people can save up to where some of the people can save up to percent of their income some even percent of their income some even percent of their income some even save up to percent of their income save up to percent of their income save up to percent of their income saving that much of course isn't always saving that much of course isn't always saving that much of course isn't always realistic for those on low incomes which realistic for those on low incomes which realistic for those on low incomes which is why many encourage side hustles for is why many encourage side hustles for is why many encourage side hustles for extra income and use the entirety of extra income and use the entirety of extra income and use the entirety of that side income in building their that side income in building their that side income in building their wealth so most critics of the fire wealth so most critics of the fire wealth so most critics of the fire movement argue that living frugally movement argue that living frugally movement argue that living frugally sucks all the joy out of life and why sucks all the joy out of life and why sucks all the joy out of life and why would anyone choose to want to live that would anyone choose to want to live that would anyone choose to want to live that way if you earn money why not just spend way if you earn money why not just spend way if you earn money why not just spend it and enjoy your life but if you look it and enjoy your life but if you look it and enjoy your life but if you look at the reality of people following the at the reality of people following the at the reality of people following the fire movement frugality doesn't always fire movement frugality doesn't always fire movement frugality doesn't always look that way it's not something that's look that way it's not something that's look that way it's not something that's sucking the joy out of life mister money sucking the joy out of life mister money sucking the joy out of life mister money mustache a popular blogger in the firey mustache a popular blogger in the firey mustache a popular blogger in the firey she's always talking about his she's always talking about his she's always talking about his extravagant lifestyle which when he extravagant lifestyle which when he extravagant lifestyle which when he posts his yearly spending is actually posts his yearly spending is actually posts his yearly spending is actually quite small comparatively so if you're quite small comparatively so if you're quite small comparatively so if you're smart and resourceful it's entirely smart and resourceful it's entirely smart and resourceful it's entirely possible to live an amazing life without possible to live an amazing life without possible to live an amazing life without having to spend on everything all of the having to spend on everything all of the having to spend on everything all of the time many of us are extremely lucky to time many of us are extremely lucky to time many of us are extremely lucky to live in a part of the world where we can live in a part of the world where we can live in a part of the world where we can do things for free or really low cost do things for free or really low cost do things for free or really low cost that brings tremendous enjoyment I can that brings tremendous enjoyment I can that brings tremendous enjoyment I can go and check council listings for free go and check council listings for free go and check council listings for free concerts in my area they have fireworks concerts in my area they have fireworks concerts in my area they have fireworks in the city at numerous times of the in the city at numerous times of the in the city at numerous times of the year here including news Eve I can go to year here including news Eve I can go to year here including news Eve I can go to my local library and borrow books or my local library and borrow books or my local library and borrow books or movies sometimes without having to leave movies sometimes without having to leave movies sometimes without having to leave my actual house since they have so many my actual house since they have so many my actual house since they have so many ebooks as well now I live near beaches ebooks as well now I live near beaches ebooks as well now I live near beaches parks any number of places that I can parks any number of places that I can parks any number of places that I can meet up with friends all for free and meet up with friends all for free and meet up with friends all for free and that's not something I take for granted that's not something I take for granted that's not something I take for granted being frugal is just about choosing being frugal is just about choosing being frugal is just about choosing where you want to spend your money and where you want to spend your money and where you want to spend your money and not just spending it mindlessly not just spending it mindlessly not just spending it mindlessly everywhere it's about priorities so can everywhere it's about priorities so can everywhere it's about priorities so can we all take away from this lesson it's we all take away from this lesson it's we all take away from this lesson it's that the constant consumption the that the constant consumption the that the constant consumption the constant upgrading they're getting the constant upgrading they're getting the constant upgrading they're getting the newest thing having all of the things newest thing having all of the things newest thing having all of the things it's not always making us happier at it's not always making us happier at it's not always making us happier at least not in the long term anyway but least not in the long term anyway but least not in the long term anyway but spending intentionally rather than spending intentionally rather than spending intentionally rather than mindlessly means that we've got more mindlessly means that we've got more mindlessly means that we've got more money to save and invest for our future money to save and invest for our future money to save and invest for our future now it doesn't matter if you want to now it doesn't matter if you want to now it doesn't matter if you want to retire early or you just want to build retire early or you just want to build retire early or you just want to build your saving your saving your saving and investments to have that financial and investments to have that financial and investments to have that financial security because it's not about how much security because it's not about how much security because it's not about how much you earn it's about how much you save you earn it's about how much you save you earn it's about how much you save and invest and that's something we and invest and that's something we and invest and that's something we should all be doing so what are some should all be doing so what are some should all be doing so what are some actionable tips that we can do right now actionable tips that we can do right now actionable tips that we can do right now we need to aim to save more and more of we need to aim to save more and more of we need to aim to save more and more of our income to challenge ourselves you our income to challenge ourselves you our income to challenge ourselves you want to see how little you can actually want to see how little you can actually want to see how little you can actually spend without making yourself miserable spend without making yourself miserable spend without making yourself miserable I always do a no spend month every year I always do a no spend month every year I always do a no spend month every year not only because it saves me money not only because it saves me money not only because it saves me money although that's a nice bonus but because although that's a nice bonus but because although that's a nice bonus but because it resets my mindset about spending if I it resets my mindset about spending if I it resets my mindset about spending if I can go a whole month without all of the can go a whole month without all of the can go a whole month without all of the things that I think I need I can things that I think I need I can things that I think I need I can probably go a lot longer to make it a probably go a lot longer to make it a probably go a lot longer to make it a game if you like make it fun it's not game if you like make it fun it's not game if you like make it fun it's not about depriving yourself it's about about depriving yourself it's about about depriving yourself it's about finding what makes you happy and getting finding what makes you happy and getting finding what makes you happy and getting rid of the rest now the whole retire rid of the rest now the whole retire rid of the rest now the whole retire early is the part of the fire movement early is the part of the fire movement early is the part of the fire movement that most people seem to have a problem that most people seem to have a problem that most people seem to have a problem with no it's understandable we've all with no it's understandable we've all with no it's understandable we've all been told that retiring is something we been told that retiring is something we been told that retiring is something we do at the end of our working career then do at the end of our working career then do at the end of our working career then you're supposed to spend the rest of you're supposed to spend the rest of you're supposed to spend the rest of your days posturing around the house your days posturing around the house your days posturing around the house giving your grandkids sweet treats when giving your grandkids sweet treats when giving your grandkids sweet treats when their parents aren't watching and while their parents aren't watching and while their parents aren't watching and while the word retired does mean to stop doing the word retired does mean to stop doing the word retired does mean to stop doing to withdraw from something it doesn't to withdraw from something it doesn't to withdraw from something it doesn't always have to mean the workplace always have to mean the workplace always have to mean the workplace overall but that's missing the point of overall but that's missing the point of overall but that's missing the point of what the fire movement is about it's not what the fire movement is about it's not what the fire movement is about it's not so much about the race to be financially so much about the race to be financially so much about the race to be financially independent so that you can give up work independent so that you can give up work independent so that you can give up work and travel and mooch around for the rest and travel and mooch around for the rest and travel and mooch around for the rest of your life but it's about the choice of your life but it's about the choice of your life but it's about the choice and freedom that being financially and freedom that being financially and freedom that being financially independent allows you to make there's independent allows you to make there's independent allows you to make there's no question that certain careers give no question that certain careers give no question that certain careers give people value it's their contribution to people value it's their contribution to people value it's their contribution to the world their way to gives back it's the world their way to gives back it's the world their way to gives back it's also a way to connect with others for a also a way to connect with others for a also a way to connect with others for a lot of people the socialization aspect lot of people the socialization aspect lot of people the socialization aspect is very important or it could be just is very important or it could be just is very important or it could be just that people enjoy doing what they do I that people enjoy doing what they do I that people enjoy doing what they do I know I certainly don't want doctors or know I certainly don't want doctors or know I certainly don't want doctors or engineers or firefighters or teachers engineers or firefighters or teachers engineers or firefighters or teachers leaving their jobs early but for many in leaving their jobs early but for many in leaving their jobs early but for many in those careers it's unlikely that they those careers it's unlikely that they those careers it's unlikely that they would anyway because people who pursue would anyway because people who pursue would anyway because people who pursue these jobs they usually do so for the these jobs they usually do so for the these jobs they usually do so for the value they get from them but not all value they get from them but not all value they get from them but not all jobs are like that and not all people jobs are like that and not all people jobs are like that and not all people feel valued where they work and as we feel valued where they work and as we feel valued where they work and as we get older we're not always valued in the get older we're not always valued in the get older we're not always valued in the workplace as we would like a good workplace as we would like a good workplace as we would like a good question to ask yourself is if you won question to ask yourself is if you won question to ask yourself is if you won the lottery tomorrow would you still the lottery tomorrow would you still the lottery tomorrow would you still turn up to work the next day well a lot turn up to work the next day well a lot turn up to work the next day well a lot of people would leave some wouldn't this of people would leave some wouldn't this of people would leave some wouldn't this Sidney woman want a hundred and seven Sidney woman want a hundred and seven Sidney woman want a hundred and seven million dollars earlier this year and million dollars earlier this year and million dollars earlier this year and said it would actually drive her to do said it would actually drive her to do said it would actually drive her to do more health care work more health care work more health care work a construction worker in New York won a a construction worker in New York won a a construction worker in New York won a hundred and forty million u.s. dollars hundred and forty million u.s. dollars hundred and forty million u.s. dollars last year and he still turned up to work last year and he still turned up to work last year and he still turned up to work because he liked working so when money because he liked working so when money because he liked working so when money is no longer a factor some people choose is no longer a factor some people choose is no longer a factor some people choose to leave their work some people choose to leave their work some people choose to leave their work some people choose to stay and some people choose to move to stay and some people choose to move to stay and some people choose to move to something that's more meaningful for to something that's more meaningful for to something that's more meaningful for them even the person who retires and them even the person who retires and them even the person who retires and gives up work entirely doesn't always gives up work entirely doesn't always gives up work entirely doesn't always just sit around doing nothing most just sit around doing nothing most just sit around doing nothing most people in the fire movement have people in the fire movement have people in the fire movement have passions and hobbies and things that passions and hobbies and things that passions and hobbies and things that they want to do that's away from the they want to do that's away from the they want to do that's away from the regular nine-to-five and some of these regular nine-to-five and some of these regular nine-to-five and some of these passions give tremendous value and worth passions give tremendous value and worth passions give tremendous value and worth not only to themselves but to the wider not only to themselves but to the wider not only to themselves but to the wider community as well human beings are meant community as well human beings are meant community as well human beings are meant to have a purpose so just because you to have a purpose so just because you to have a purpose so just because you retire early doesn't mean you're really retire early doesn't mean you're really retire early doesn't mean you're really giving up work unless that's a choice giving up work unless that's a choice giving up work unless that's a choice that you want to make it just means that that you want to make it just means that that you want to make it just means that you'll have the financial means to to you'll have the financial means to to you'll have the financial means to to pursue whatever is important to you so pursue whatever is important to you so pursue whatever is important to you so what can we take away from this what can what can we take away from this what can what can we take away from this what can we learn so the race to financial we learn so the race to financial we learn so the race to financial independence really is about getting to independence really is about getting to independence really is about getting to that point where you have choice and that point where you have choice and that point where you have choice and freedom it's not always about retiring freedom it's not always about retiring freedom it's not always about retiring from work completely now for some people from work completely now for some people from work completely now for some people it might be but I think for the vast it might be but I think for the vast it might be but I think for the vast majority of people who do the fire majority of people who do the fire majority of people who do the fire movement it's about reaching a point movement it's about reaching a point movement it's about reaching a point where you no longer table what you have where you no longer table what you have where you no longer table what you have to do but you can make the decision to do but you can make the decision to do but you can make the decision about what you want to do I mean even about what you want to do I mean even about what you want to do I mean even just putting a plan into place to retire just putting a plan into place to retire just putting a plan into place to retire early can be a worthwhile purpose and early can be a worthwhile purpose and early can be a worthwhile purpose and isn't having a purpose the whole point isn't having a purpose the whole point isn't having a purpose the whole point so what actionable steps can we do stop so what actionable steps can we do stop so what actionable steps can we do stop thinking about how you want to live in thinking about how you want to live in thinking about how you want to live in the future not necessarily when you the future not necessarily when you the future not necessarily when you finally retire but in one year five finally retire but in one year five finally retire but in one year five years ten years and so on make goals years ten years and so on make goals years ten years and so on make goals thinking about retirement as something thinking about retirement as something thinking about retirement as something far into the future that won't affect far into the future that won't affect far into the future that won't affect you now isn't the right way to think you now isn't the right way to think you now isn't the right way to think about it plan to build a life that you about it plan to build a life that you about it plan to build a life that you love and find a purpose something that love and find a purpose something that love and find a purpose something that makes you happy how much is that life makes you happy how much is that life makes you happy how much is that life going to cost you start building your going to cost you start building your going to cost you start building your savings and investments towards that savings and investments towards that savings and investments towards that future goal whether that sooner or later future goal whether that sooner or later future goal whether that sooner or later so the path to fire or financial so the path to fire or financial so the path to fire or financial independence isn't the same for everyone independence isn't the same for everyone independence isn't the same for everyone because there's so many different ways because there's so many different ways because there's so many different ways to build wealth however most people in to build wealth however most people in to build wealth however most people in the fire community will agree that just the fire community will agree that just the fire community will agree that just keeping your money in savings means that keeping your money in savings means that keeping your money in savings means that you're going to be saving for a very you're going to be saving for a very you're going to be saving for a very long time in Australia you'll be lucky long time in Australia you'll be lucky long time in Australia you'll be lucky to get anything about two percent as an to get anything about two percent as an to get anything about two percent as an interest rate although most accounts are interest rate although most accounts are interest rate although most accounts are zero with the Reserve Bank continuing to zero with the Reserve Bank continuing to zero with the Reserve Bank continuing to lower interest rates it means that the lower interest rates it means that the lower interest rates it means that the savings rates are less than savings rates are less than savings rates are less than the inflation rates right now so having the inflation rates right now so having the inflation rates right now so having your money in savings is costing you your money in savings is costing you your money in savings is costing you long-term so the trick instead is to put long-term so the trick instead is to put long-term so the trick instead is to put your money where it's going to grow at a your money where it's going to grow at a your money where it's going to grow at a faster rate and that usually means faster rate and that usually means faster rate and that usually means either stocks or property the stock either stocks or property the stock either stocks or property the stock market average return is nearly always market average return is nearly always market average return is nearly always higher than property although property higher than property although property higher than property although property is easier to leverage although property is easier to leverage although property is easier to leverage although property if it's for investment purposes does if it's for investment purposes does if it's for investment purposes does come with other costs and dealing with come with other costs and dealing with come with other costs and dealing with maintenance and tenants whereas the maintenance and tenants whereas the maintenance and tenants whereas the stock market does not it's entirely stock market does not it's entirely stock market does not it's entirely passive most in the fire community like passive most in the fire community like passive most in the fire community like a nice simple index fund or a nice simple index fund or a nice simple index fund or exchange-traded fund that's the simplest exchange-traded fund that's the simplest exchange-traded fund that's the simplest way to get access to a diversified way to get access to a diversified way to get access to a diversified portfolio with low fees now I'm more an portfolio with low fees now I'm more an portfolio with low fees now I'm more an individual stock girl myself but that's individual stock girl myself but that's individual stock girl myself but that's entirely a personal preference the entirely a personal preference the entirely a personal preference the importance is to put your money into importance is to put your money into importance is to put your money into something solid that's going to grow something solid that's going to grow something solid that's going to grow your money faster your money faster your money faster I particularly like dividend stocks I particularly like dividend stocks I particularly like dividend stocks because I like putting my money into because I like putting my money into because I like putting my money into income producing assets and you can also income producing assets and you can also income producing assets and you can also get dividend ETFs and all I see is two get dividend ETFs and all I see is two get dividend ETFs and all I see is two so that way your average return is going so that way your average return is going so that way your average return is going to be closer to six to ten percent to be closer to six to ten percent to be closer to six to ten percent depending on where you put your money depending on where you put your money depending on where you put your money and yes those are averages and they take and yes those are averages and they take and yes those are averages and they take into account both good and bad years in into account both good and bad years in into account both good and bad years in both the property and stock market so both the property and stock market so both the property and stock market so let's say that you're aiming for a sum let's say that you're aiming for a sum let's say that you're aiming for a sum of $,, this would give you a of $,, this would give you a of $,, this would give you a roughly an income of to $, a roughly an income of to $, a roughly an income of to $, a year depending on how you structured year depending on how you structured year depending on how you structured your portfolio you start from zero and your portfolio you start from zero and your portfolio you start from zero and then save , a month now that might then save , a month now that might then save , a month now that might be a stretch but it might depend on your be a stretch but it might depend on your be a stretch but it might depend on your income the average wage in Australia income the average wage in Australia income the average wage in Australia right now is one thousand six hundred right now is one thousand six hundred right now is one thousand six hundred and thirty-four a week which works out and thirty-four a week which works out and thirty-four a week which works out at around a month that means you'd at around a month that means you'd at around a month that means you'd be left with over five thousand a month be left with over five thousand a month be left with over five thousand a month to live on and if there are two of you to live on and if there are two of you to live on and if there are two of you it'll be even easier so two thousand a it'll be even easier so two thousand a it'll be even easier so two thousand a month at an average % return so if month at an average % return so if month at an average % return so if you're starting out when you're you you're starting out when you're you you're starting out when you're you could potentially reach this at if could potentially reach this at if could potentially reach this at if you're starting when you're you could you're starting when you're you could you're starting when you're you could potentially reach this at potentially reach this at potentially reach this at although the point I really wanted to although the point I really wanted to although the point I really wanted to make is to focus on the compound make is to focus on the compound make is to focus on the compound interest in this case you've only interest in this case you've only interest in this case you've only contributed , 'l six hundred and contributed , 'l six hundred and contributed , 'l six hundred and five thousand eight hundred thirty-seven five thousand eight hundred thirty-seven five thousand eight hundred thirty-seven is the interest or the increase in value is the interest or the increase in value is the interest or the increase in value of your portfolio of your fund whatever of your portfolio of your fund whatever of your portfolio of your fund whatever you've chosen to invest in its the you've chosen to invest in its the you've chosen to invest in its the compound interest that's done the compound interest that's done the compound interest that's done the majority of work in building your wealth majority of work in building your wealth majority of work in building your wealth faster so what can we learn from this so faster so what can we learn from this so faster so what can we learn from this so main reason that people are able to main reason that people are able to main reason that people are able to retire early is because their money is retire early is because their money is retire early is because their money is growing and compounding without them growing and compounding without them growing and compounding without them having to do as much work keeping your having to do as much work keeping your having to do as much work keeping your money in a savings account right now money in a savings account right now money in a savings account right now could mean that you're going backwards could mean that you're going backwards could mean that you're going backwards because the rate of inflation is because the rate of inflation is because the rate of inflation is actually higher than most savings actually higher than most savings actually higher than most savings accounts now so you want to be smarter accounts now so you want to be smarter accounts now so you want to be smarter and while interest rates on bank and while interest rates on bank and while interest rates on bank accounts might actually go up I doubt accounts might actually go up I doubt accounts might actually go up I doubt they'll reach the levels of property and they'll reach the levels of property and they'll reach the levels of property and stocks may be great though wouldn't it stocks may be great though wouldn't it stocks may be great though wouldn't it if interest rates on a regular bank if interest rates on a regular bank if interest rates on a regular bank account was up about percent account was up about percent account was up about percent never gonna happen so what actionable never gonna happen so what actionable never gonna happen so what actionable steps can we take from this well you steps can we take from this well you steps can we take from this well you should have some money in savings that should have some money in savings that should have some money in savings that you need to access quickly such as your you need to access quickly such as your you need to access quickly such as your emergency fund the rest of the money emergency fund the rest of the money emergency fund the rest of the money that you're not going to need within the that you're not going to need within the that you're not going to need within the next five years or more should be going next five years or more should be going next five years or more should be going into stocks either directly or through into stocks either directly or through into stocks either directly or through funds or investment property if that's funds or investment property if that's funds or investment property if that's your jam in Australia we're quite lucky your jam in Australia we're quite lucky your jam in Australia we're quite lucky that we have a lot of high dividend that we have a lot of high dividend that we have a lot of high dividend companies here it's not too hard to find companies here it's not too hard to find companies here it's not too hard to find those paying about % so if you go this those paying about % so if you go this those paying about % so if you go this way you can actually be building an way you can actually be building an way you can actually be building an income right from the start if you income right from the start if you income right from the start if you wanted to decide where you want to put wanted to decide where you want to put wanted to decide where you want to put your money and start building up your your money and start building up your your money and start building up your wealth and let the compound interest wealth and let the compound interest wealth and let the compound interest move things along quicker so you don't move things along quicker so you don't move things along quicker so you don't have to do all of the savings if I make have to do all of the savings if I make have to do all of the savings if I make it actually follows a lot of the wisdom it actually follows a lot of the wisdom it actually follows a lot of the wisdom that we've been told for years live that we've been told for years live that we've been told for years live below your means plan for the future and below your means plan for the future and below your means plan for the future and let compound interest do most of the let compound interest do most of the let compound interest do most of the work for you so it's not really a new work for you so it's not really a new work for you so it's not really a new concept the whole retire early thing is concept the whole retire early thing is concept the whole retire early thing is although we have established not to take although we have established not to take although we have established not to take that too literally so I hope you've that too literally so I hope you've that too literally so I hope you've enjoyed this video and it's inspired to enjoyed this video and it's inspired to enjoyed this video and it's inspired to start thinking about your financial start thinking about your financial start thinking about your financial future thanks so much for watching take future thanks so much for watching take future thanks so much for watching take care and I'll see you in the next video care and I'll see you in the next video care and I'll see you in the next video bye WEBVTT Kind: captions Language: en [Music] [Music] [Music] Pete thank you so much for hanging out Pete thank you so much for hanging out Pete thank you so much for hanging out and chatting with us thanks Gillian I'm and chatting with us thanks Gillian I'm and chatting with us thanks Gillian I'm enjoying your fancy Lodge event so far enjoying your fancy Lodge event so far enjoying your fancy Lodge event so far we are in Montana currently at a retreat we are in Montana currently at a retreat we are in Montana currently at a retreat so we're hanging out in a cool Montana so we're hanging out in a cool Montana so we're hanging out in a cool Montana ish kind of house was there any ish kind of house was there any ish kind of house was there any inspiration points growing up or as a inspiration points growing up or as a inspiration points growing up or as a young adult that kind of helped create young adult that kind of helped create young adult that kind of helped create this idea that maybe there's a different this idea that maybe there's a different this idea that maybe there's a different path to happiness versus just I have to path to happiness versus just I have to path to happiness versus just I have to buy the most stuff and I have to spend buy the most stuff and I have to spend buy the most stuff and I have to spend the most money what was kind of that the most money what was kind of that the most money what was kind of that initial inspiration that made you think initial inspiration that made you think initial inspiration that made you think maybe there's a different way to do this maybe there's a different way to do this maybe there's a different way to do this different way to optimize oh well for me different way to optimize oh well for me different way to optimize oh well for me it was I came in as like in a naive it was I came in as like in a naive it was I came in as like in a naive perspective because I didn't even know perspective because I didn't even know perspective because I didn't even know there was another way so I'm an there was another way so I'm an there was another way so I'm an immigrant I'm from Canada and growing up immigrant I'm from Canada and growing up immigrant I'm from Canada and growing up in the Canada in the s and s in like in the Canada in the s and s in like in the Canada in the s and s in like a frugal family in a in a town I had to a frugal family in a in a town I had to a frugal family in a in a town I had to live it in a town of , people so live it in a town of , people so live it in a town of , people so there wasn't a lot of wealth around to there wasn't a lot of wealth around to there wasn't a lot of wealth around to really set the bar high so I thought I really set the bar high so I thought I really set the bar high so I thought I was living an incredibly fancy life just was living an incredibly fancy life just was living an incredibly fancy life just the fact that I could have like you know the fact that I could have like you know the fact that I could have like you know a car and a bicycle and a nice you know a car and a bicycle and a nice you know a car and a bicycle and a nice you know whatever I wanted I could have like a whatever I wanted I could have like a whatever I wanted I could have like a good tool is good music stuff because as good tool is good music stuff because as good tool is good music stuff because as my passions in life and then I didn't my passions in life and then I didn't my passions in life and then I didn't even realize what I wasn't buying until even realize what I wasn't buying until even realize what I wasn't buying until I saw other friends I'm like oh wow you I saw other friends I'm like oh wow you I saw other friends I'm like oh wow you can buy that that's weird that sounds is can buy that that's weird that sounds is can buy that that's weird that sounds is expensive and I think if I'd grown up expensive and I think if I'd grown up expensive and I think if I'd grown up and like a wealthy family and cellphone and like a wealthy family and cellphone and like a wealthy family and cellphone like Southern California and everybody's like Southern California and everybody's like Southern California and everybody's got the glitzy lifestyle I would have got the glitzy lifestyle I would have got the glitzy lifestyle I would have been programmed as a child to think that been programmed as a child to think that been programmed as a child to think that was normal and then I might have had a was normal and then I might have had a was normal and then I might have had a more difficult time peeling back to a to more difficult time peeling back to a to more difficult time peeling back to a to an affordable life and which is cool so an affordable life and which is cool so an affordable life and which is cool so now I'm trying to have my own son have now I'm trying to have my own son have now I'm trying to have my own son have this perspective as well of like more of this perspective as well of like more of this perspective as well of like more of a middle like you know a lower level of a middle like you know a lower level of a middle like you know a lower level of luxury and spending which is still luxury and spending which is still luxury and spending which is still incredibly nice and luxurious by any incredibly nice and luxurious by any incredibly nice and luxurious by any objective standard but we we never grew objective standard but we we never grew objective standard but we we never grew up with fancy cars for him and he up with fancy cars for him and he up with fancy cars for him and he understands that he's not going to get a understands that he's not going to get a understands that he's not going to get a bunch of stuff given to him just for no bunch of stuff given to him just for no bunch of stuff given to him just for no reason he is welcome to go earn reason he is welcome to go earn reason he is welcome to go earn himself and that's like a reward is to himself and that's like a reward is to himself and that's like a reward is to being able to earn things you know earn being able to earn things you know earn being able to earn things you know earn your own living look I didn't get any your own living look I didn't get any your own living look I didn't get any money from my parents yeah and I had to money from my parents yeah and I had to money from my parents yeah and I had to pay for my own school and I felt that pay for my own school and I felt that pay for my own school and I felt that was I thought that was normal so I was I thought that was normal so I was I thought that was normal so I didn't resent them for it but now in didn't resent them for it but now in didn't resent them for it but now in retrospect I realized that was a gift as retrospect I realized that was a gift as retrospect I realized that was a gift as well has that got to do these things well has that got to do these things well has that got to do these things myself worked a lot of minimum-wage jobs myself worked a lot of minimum-wage jobs myself worked a lot of minimum-wage jobs through high school to save up years in through high school to save up years in through high school to save up years in advance for college tuition and and then advance for college tuition and and then advance for college tuition and and then I appreciated everything really really a I appreciated everything really really a I appreciated everything really really a lot as it came to me over the years what lot as it came to me over the years what lot as it came to me over the years what would you say like when you think back would you say like when you think back would you say like when you think back on your childhood what we're kind of for on your childhood what we're kind of for on your childhood what we're kind of for you those little moments that were the you those little moments that were the you those little moments that were the richest or the most enjoyable or that richest or the most enjoyable or that richest or the most enjoyable or that you just felt like the most alive as a you just felt like the most alive as a you just felt like the most alive as a kid well like a lot of people I remember kid well like a lot of people I remember kid well like a lot of people I remember family vacations we had a few things family vacations we had a few things family vacations we had a few things where we did a lot of thing you know where we did a lot of thing you know where we did a lot of thing you know things all together and my family is a things all together and my family is a things all together and my family is a little bit two generations so I have two little bit two generations so I have two little bit two generations so I have two sisters that are in a batch like nine to sisters that are in a batch like nine to sisters that are in a batch like nine to ten years older than me and and my ten years older than me and and my ten years older than me and and my brother and I are closer were three brother and I are closer were three brother and I are closer were three years apart in our current you know we years apart in our current you know we years apart in our current you know we grew up in that close clump so the grew up in that close clump so the grew up in that close clump so the family vacations where the older sisters family vacations where the older sisters family vacations where the older sisters and the younger brothers all got to do and the younger brothers all got to do and the younger brothers all got to do stuff together so it was like all six of stuff together so it was like all six of stuff together so it was like all six of us that was those are the most memorable us that was those are the most memorable us that was those are the most memorable things from a family perspective and things from a family perspective and things from a family perspective and then the other thing is that really then the other thing is that really then the other thing is that really shines through from my childhood is once shines through from my childhood is once shines through from my childhood is once I became I got to like the later years I became I got to like the later years I became I got to like the later years of high school and I finally figured out of high school and I finally figured out of high school and I finally figured out how to be cool like in terms of having a how to be cool like in terms of having a how to be cool like in terms of having a bunch of friends and like you know bunch of friends and like you know bunch of friends and like you know everyone's hanging around and everyone's hanging around and everyone's hanging around and high-fiving and staying up late and high-fiving and staying up late and high-fiving and staying up late and everything and I was hosting a lot of everything and I was hosting a lot of everything and I was hosting a lot of like little parties and I remember the like little parties and I remember the like little parties and I remember the summer after twelfth grade is kind of summer after twelfth grade is kind of summer after twelfth grade is kind of like the best year of my childhood and like the best year of my childhood and like the best year of my childhood and so it was all about this tribal form of so it was all about this tribal form of so it was all about this tribal form of living where yeah the other kids would living where yeah the other kids would living where yeah the other kids would just come over you know smoke cigarettes just come over you know smoke cigarettes just come over you know smoke cigarettes for it step and drink beer and play for it step and drink beer and play for it step and drink beer and play cards and meat you know there's like cards and meat you know there's like cards and meat you know there's like that's how we everybody started like that's how we everybody started like that's how we everybody started like dating and everything because it was dating and everything because it was dating and everything because it was almost like a bar a pub for young people almost like a bar a pub for young people almost like a bar a pub for young people where as unscheduled social stuff it was where as unscheduled social stuff it was where as unscheduled social stuff it was a pool in my mom's backyard so there's a pool in my mom's backyard so there's a pool in my mom's backyard so there's like swimming and we're all acting like like swimming and we're all acting like like swimming and we're all acting like little adults and we got to finally like little adults and we got to finally like little adults and we got to finally like you know you know you know be ourselves in an unscheduled be ourselves in an unscheduled be ourselves in an unscheduled environment and I think that's environment and I think that's environment and I think that's influenced me to this day I always try influenced me to this day I always try influenced me to this day I always try to recreate that summer after grade to recreate that summer after grade to recreate that summer after grade my childhood in the sense of like let's my childhood in the sense of like let's my childhood in the sense of like let's bring a bunch of adults together and bring a bunch of adults together and bring a bunch of adults together and just make sure everybody's comfortable just make sure everybody's comfortable just make sure everybody's comfortable and they can all have fun and have and they can all have fun and have and they can all have fun and have campfires and have long discussions and campfires and have long discussions and campfires and have long discussions and just become really good friends and I just become really good friends and I just become really good friends and I think that's like a tribal the childhood think that's like a tribal the childhood think that's like a tribal the childhood behavior for humans in the modern world behavior for humans in the modern world behavior for humans in the modern world and it's it's nice it's like not enough and it's it's nice it's like not enough and it's it's nice it's like not enough of that in u.s. culture it's way too of that in u.s. culture it's way too of that in u.s. culture it's way too much like we're either at work or we're much like we're either at work or we're much like we're either at work or we're on organized vacations but we're not on organized vacations but we're not on organized vacations but we're not just hanging around in a group of just hanging around in a group of just hanging around in a group of people very often so that's partly why people very often so that's partly why people very often so that's partly why I'm here in Montana is because I feel I'm here in Montana is because I feel I'm here in Montana is because I feel it's going to be a little bit like high it's going to be a little bit like high it's going to be a little bit like high school what's interesting to me both of school what's interesting to me both of school what's interesting to me both of those are experiences that they didn't those are experiences that they didn't those are experiences that they didn't take a lot of expense or a lot of take a lot of expense or a lot of take a lot of expense or a lot of consumption they needed a lot of time consumption they needed a lot of time consumption they needed a lot of time yeah and a lot of freedom to just enjoy yeah and a lot of freedom to just enjoy yeah and a lot of freedom to just enjoy those which knowing you now if there's a those which knowing you now if there's a those which knowing you now if there's a lot of parallel into your current lot of parallel into your current lot of parallel into your current lifestyle how did you view kind of that lifestyle how did you view kind of that lifestyle how did you view kind of that that's saving and investing mindset is that's saving and investing mindset is that's saving and investing mindset is like the ability like you said in a like the ability like you said in a like the ability like you said in a sense to recreate the best parts of your sense to recreate the best parts of your sense to recreate the best parts of your childhood that freedom and that childhood that freedom and that childhood that freedom and that community that's super funny because I community that's super funny because I community that's super funny because I didn't really think about it until right didn't really think about it until right didn't really think about it until right now that that might be sort of what I've now that that might be sort of what I've now that that might be sort of what I've been doing but um but yeah that's true been doing but um but yeah that's true been doing but um but yeah that's true and I was really thinking so the and I was really thinking so the and I was really thinking so the original motivation for retirement was original motivation for retirement was original motivation for retirement was Parenthood see me and I always wanted to Parenthood see me and I always wanted to Parenthood see me and I always wanted to be super good parents throughout like be super good parents throughout like be super good parents throughout like before we were gonna have kids right and before we were gonna have kids right and before we were gonna have kids right and we saw the co-workers it was always like we saw the co-workers it was always like we saw the co-workers it was always like yeah I can't come into work as my kid is yeah I can't come into work as my kid is yeah I can't come into work as my kid is sick or I can't take care of my kid sick or I can't take care of my kid sick or I can't take care of my kid because I have so much work to do and because I have so much work to do and because I have so much work to do and there was all these conflicts so I there was all these conflicts so I there was all these conflicts so I always thought well at that time I have always thought well at that time I have always thought well at that time I have kids I want to be free from mandatory kids I want to be free from mandatory kids I want to be free from mandatory work so I can be a super dad because I work so I can be a super dad because I work so I can be a super dad because I always idolized that idea yeah so and always idolized that idea yeah so and always idolized that idea yeah so and that really did work out for the correct that really did work out for the correct that really did work out for the correct ways like by not having a job I think we ways like by not having a job I think we ways like by not having a job I think we were able to be much less stressed out were able to be much less stressed out were able to be much less stressed out parents and we were always a little bit parents and we were always a little bit parents and we were always a little bit our child first and it's still like that our child first and it's still like that our child first and it's still like that but there was just absolutely no rig but there was just absolutely no rig but there was just absolutely no rig it's about not having real jobs for this it's about not having real jobs for this it's about not having real jobs for this whole first years of his life whole first years of his life whole first years of his life oftentimes in our childhoods our oftentimes in our childhoods our oftentimes in our childhoods our experiences with our parents are there's experiences with our parents are there's experiences with our parents are there's there's beautiful moments and then there's beautiful moments and then there's beautiful moments and then there's things that were like well we'll there's things that were like well we'll there's things that were like well we'll probably do it differently were there probably do it differently were there probably do it differently were there any things that you really wanted to any things that you really wanted to any things that you really wanted to recreate any things that you just loved recreate any things that you just loved recreate any things that you just loved about about your childhood or your about about your childhood or your about about your childhood or your family that you were like if I could family that you were like if I could family that you were like if I could give that kind of gift yeah to my head give that kind of gift yeah to my head give that kind of gift yeah to my head and I think it has been it has kind of and I think it has been it has kind of and I think it has been it has kind of happened happened happened so I always had an unscheduled childhood so I always had an unscheduled childhood so I always had an unscheduled childhood where the only mandatory thing is school where the only mandatory thing is school where the only mandatory thing is school and then you can do whatever you want and then you can do whatever you want and then you can do whatever you want and of course you're certainly welcome and of course you're certainly welcome and of course you're certainly welcome to join organized activities but I'm not to join organized activities but I'm not to join organized activities but I'm not one of those parents who's seeing like one of those parents who's seeing like one of those parents who's seeing like you have to do violin lessons and you you have to do violin lessons and you you have to do violin lessons and you have to be in at least two sports and have to be in at least two sports and have to be in at least two sports and you need to build up your resume for you need to build up your resume for you need to build up your resume for Harvard and all this other stuff it's Harvard and all this other stuff it's Harvard and all this other stuff it's just like no way man like having eight just like no way man like having eight just like no way man like having eight hours day of school is already such a hours day of school is already such a hours day of school is already such a big obligation for kids like they big obligation for kids like they big obligation for kids like they deserve the rest of the time off and deserve the rest of the time off and deserve the rest of the time off and summers like just do whatever you want summers like just do whatever you want summers like just do whatever you want so except sometimes we did great long so except sometimes we did great long so except sometimes we did great long family vacations which was nice like family vacations which was nice like family vacations which was nice like month long or two month long trips but I month long or two month long trips but I month long or two month long trips but I like the idea of kids running around like the idea of kids running around like the idea of kids running around free and a pack and then my neighborhood free and a pack and then my neighborhood free and a pack and then my neighborhood in Longmont that really happens so we in Longmont that really happens so we in Longmont that really happens so we built a nice house on a park and so the built a nice house on a park and so the built a nice house on a park and so the backyard is is basically this beautiful backyard is is basically this beautiful backyard is is basically this beautiful public park and all the kids just came public park and all the kids just came public park and all the kids just came over and run around and play like nerf over and run around and play like nerf over and run around and play like nerf games or water guns or frisbee and and games or water guns or frisbee and and games or water guns or frisbee and and then they go like the parents don't even then they go like the parents don't even then they go like the parents don't even know where the kids are and that's what know where the kids are and that's what know where the kids are and that's what and they come home when that when it's and they come home when that when it's and they come home when that when it's dinnertime or when they're tired and dinnertime or when they're tired and dinnertime or when they're tired and that's what my childhood was like that's what my childhood was like that's what my childhood was like like I remember these summers where you like I remember these summers where you like I remember these summers where you just run out in the morning with her just run out in the morning with her just run out in the morning with her friends and you play and you like catch friends and you play and you like catch friends and you play and you like catch frogs and the swamp and you play you frogs and the swamp and you play you frogs and the swamp and you play you know ride bikes and end up swimming in know ride bikes and end up swimming in know ride bikes and end up swimming in the river and then you come home and the river and then you come home and the river and then you come home and your parents are like how was your day your parents are like how was your day your parents are like how was your day and they don't even know I you know and and they don't even know I you know and and they don't even know I you know and then people say that doesn't happen then people say that doesn't happen then people say that doesn't happen anymore cuz it's all like organized and anymore cuz it's all like organized and anymore cuz it's all like organized and rich and people are driving their kids rich and people are driving their kids rich and people are driving their kids around an armored Mercedes SUVs like the around an armored Mercedes SUVs like the around an armored Mercedes SUVs like the Washington DC lifestyle yeah but it does Washington DC lifestyle yeah but it does Washington DC lifestyle yeah but it does still happen it's still the s if you still happen it's still the s if you still happen it's still the s if you pick the right neighbor pick the right neighbor pick the right neighbor you have the right city and I feel like you have the right city and I feel like you have the right city and I feel like we did that right and we chose to you we did that right and we chose to you we did that right and we chose to you know the other parents in that know the other parents in that know the other parents in that neighborhood are the same way or they're neighborhood are the same way or they're neighborhood are the same way or they're all kind of just relaxed all kind of just relaxed all kind of just relaxed you know we're wealthy enough to have you know we're wealthy enough to have you know we're wealthy enough to have comfortable way to live and not be comfortable way to live and not be comfortable way to live and not be stressed out and it's like a low crime stressed out and it's like a low crime stressed out and it's like a low crime area you know but we're not so driven area you know but we're not so driven area you know but we're not so driven now we have to show off to each other now we have to show off to each other now we have to show off to each other and live in isolated gated compounds yes and live in isolated gated compounds yes and live in isolated gated compounds yes so it's been really really great and I so it's been really really great and I so it's been really really great and I think my son is having a great childhood think my son is having a great childhood think my son is having a great childhood I bet I have no regrets I have lots of I bet I have no regrets I have lots of I bet I have no regrets I have lots of regrets in life I've done a lot of regrets in life I've done a lot of regrets in life I've done a lot of things wrong but in the parenting things wrong but in the parenting things wrong but in the parenting Department I feel like it's awesome and Department I feel like it's awesome and Department I feel like it's awesome and that's something that I love about this that's something that I love about this that's something that I love about this idea of being good with money idea of being good with money idea of being good with money some people resist the idea of being some people resist the idea of being some people resist the idea of being good with money because they don't want good with money because they don't want good with money because they don't want to be greedy or they resist the idea of to be greedy or they resist the idea of to be greedy or they resist the idea of being good with money because they feel being good with money because they feel being good with money because they feel like it's deprivation yeah and the like it's deprivation yeah and the like it's deprivation yeah and the reality is so different if we can be reality is so different if we can be reality is so different if we can be good with money it just enables us to good with money it just enables us to good with money it just enables us to can't recreate the best parts of our can't recreate the best parts of our can't recreate the best parts of our childhood live that that kind of childhood live that that kind of childhood live that that kind of lifestyle that we're like this is what lifestyle that we're like this is what lifestyle that we're like this is what made me happy this is when I felt the made me happy this is when I felt the made me happy this is when I felt the most alive in the most myself and then most alive in the most myself and then most alive in the most myself and then investing and saving you know I love one investing and saving you know I love one investing and saving you know I love one of the the terms that you use like of the the terms that you use like of the the terms that you use like creating little green employees yeah I creating little green employees yeah I creating little green employees yeah I didn't invent that but I have have fully didn't invent that but I have have fully didn't invent that but I have have fully adopted it so I'll just pretend it's adopted it so I'll just pretend it's adopted it so I'll just pretend it's mine it's really good terminology though mine it's really good terminology though mine it's really good terminology though yeah your your dollar bills our little yeah your your dollar bills our little yeah your your dollar bills our little green employees it will stay with you green employees it will stay with you green employees it will stay with you for life and they'll keep working for for life and they'll keep working for for life and they'll keep working for you as long as you keep them just you as long as you keep them just you as long as you keep them just meaning that you have them invested meaning that you have them invested meaning that you have them invested doing something or and when you spend doing something or and when you spend doing something or and when you spend them you're giving them away to be them you're giving them away to be them you're giving them away to be someone else's employees so it's up to someone else's employees so it's up to someone else's employees so it's up to you that balance that you want to do but you that balance that you want to do but you that balance that you want to do but some people say like you can't take it some people say like you can't take it some people say like you can't take it with you when you die or like what's with you when you die or like what's with you when you die or like what's good what good is money if you don't good what good is money if you don't good what good is money if you don't spend it but it's actually very good spend it but it's actually very good spend it but it's actually very good it's very useful for you if you don't it's very useful for you if you don't it's very useful for you if you don't spend it yeah because then it's second spend it yeah because then it's second spend it yeah because then it's second level effect which is to bribe passive level effect which is to bribe passive level effect which is to bribe passive income mmm is a very peaceful piece income mmm is a very peaceful piece income mmm is a very peaceful piece bringing things you know you don't need bringing things you know you don't need bringing things you know you don't need a lot of it for you but to have some a lot of it for you but to have some a lot of it for you but to have some automatic income is very reassuring to automatic income is very reassuring to automatic income is very reassuring to you in life yeah you in life yeah you in life yeah [Music] [Music] [Music] so we've kind of we've kind of started so we've kind of we've kind of started so we've kind of we've kind of started to hit on some of this but one of the to hit on some of this but one of the to hit on some of this but one of the things that I think is the greatest things that I think is the greatest things that I think is the greatest benefit of building up some financial benefit of building up some financial benefit of building up some financial freedom or when you finally cross that freedom or when you finally cross that freedom or when you finally cross that threshold and becoming financially threshold and becoming financially threshold and becoming financially independent is you are able to custom independent is you are able to custom independent is you are able to custom design your life more and it's not about design your life more and it's not about design your life more and it's not about I think especially with like the fire I think especially with like the fire I think especially with like the fire movement one of the greatest movement one of the greatest movement one of the greatest misconceptions I see is that it's about misconceptions I see is that it's about misconceptions I see is that it's about being able to opt out and really when being able to opt out and really when being able to opt out and really when you actually meet the people in the you actually meet the people in the you actually meet the people in the movement they're doubling down on all movement they're doubling down on all movement they're doubling down on all the things that matter to them and on the things that matter to them and on the things that matter to them and on all the things that they love and that all the things that they love and that all the things that they love and that are important to them it's not about are important to them it's not about are important to them it's not about even escaping as much as it is running even escaping as much as it is running even escaping as much as it is running towards things yeah an opting into towards things yeah an opting into towards things yeah an opting into awesomeness yeah to things that are awesomeness yeah to things that are awesomeness yeah to things that are happy for you and good for your own happy for you and good for your own happy for you and good for your own mental health and stuff like that yeah mental health and stuff like that yeah mental health and stuff like that yeah and I've seen that you talked a little and I've seen that you talked a little and I've seen that you talked a little bit about in your family how you've kind bit about in your family how you've kind bit about in your family how you've kind of created that that ecosystem that of created that that ecosystem that of created that that ecosystem that matches you know the best of your matches you know the best of your matches you know the best of your childhood and the things that you love childhood and the things that you love childhood and the things that you love but you've also started to do that kind but you've also started to do that kind but you've also started to do that kind of in your local community you've really of in your local community you've really of in your local community you've really leveraged this financial freedom to leveraged this financial freedom to leveraged this financial freedom to build like you were saying kind of the build like you were saying kind of the build like you were saying kind of the best of your high school experience yeah best of your high school experience yeah best of your high school experience yeah and Sharaf other people yeah how has and Sharaf other people yeah how has and Sharaf other people yeah how has that looked for you in Longmont have you that looked for you in Longmont have you that looked for you in Longmont have you recreated the best of ice well that's I recreated the best of ice well that's I recreated the best of ice well that's I know that's just a leading question know that's just a leading question know that's just a leading question because you already know the answer but because you already know the answer but because you already know the answer but yeah question is a leading so I'd yeah question is a leading so I'd yeah question is a leading so I'd through this experience of being a through this experience of being a through this experience of being a blogger I found I was meeting a lot of blogger I found I was meeting a lot of blogger I found I was meeting a lot of interesting people at events like this interesting people at events like this interesting people at events like this or just online and it was really great or just online and it was really great or just online and it was really great people but I noticed they all lived far people but I noticed they all lived far people but I noticed they all lived far away in fact I even built up a network away in fact I even built up a network away in fact I even built up a network of widely scattered friends but we all of widely scattered friends but we all of widely scattered friends but we all have to travel far to see each other and have to travel far to see each other and have to travel far to see each other and then I realized well why can't I do this then I realized well why can't I do this then I realized well why can't I do this with local people too because I live in with local people too because I live in with local people too because I live in a city of like a hundred thousand people a city of like a hundred thousand people a city of like a hundred thousand people surely there's lots of great people surely there's lots of great people surely there's lots of great people among that group too among that group too among that group too you so I tried to create a local you so I tried to create a local you so I tried to create a local gathering community and a space for us gathering community and a space for us gathering community and a space for us to gather and so I bought a building to gather and so I bought a building to gather and so I bought a building along some friends and the main street along some friends and the main street along some friends and the main street of our city it's actually called Main of our city it's actually called Main of our city it's actually called Main Street and just like kind of a an old Street and just like kind of a an old Street and just like kind of a an old dilapidated property but it's got a fair dilapidated property but it's got a fair dilapidated property but it's got a fair amount of interior space like a historic amount of interior space like a historic amount of interior space like a historic old house with some patchy commercial old house with some patchy commercial old house with some patchy commercial building stuff on the front and nice building stuff on the front and nice building stuff on the front and nice yard out back and anyway we started a yard out back and anyway we started a yard out back and anyway we started a co-working space in that building and co-working space in that building and co-working space in that building and then just started letting it be known to then just started letting it be known to then just started letting it be known to the world like using my mister money the world like using my mister money the world like using my mister money mustache stuff like social media like mustache stuff like social media like mustache stuff like social media like hey you can join the co-working space hey you can join the co-working space hey you can join the co-working space and then you have a place to work and and then you have a place to work and and then you have a place to work and it's got all the usual amenities of a it's got all the usual amenities of a it's got all the usual amenities of a coffee shop plus more because it's like coffee shop plus more because it's like coffee shop plus more because it's like a PHY oriented stuff so we we help each a PHY oriented stuff so we we help each a PHY oriented stuff so we we help each other with businesses or renovations or other with businesses or renovations or other with businesses or renovations or tools or life advice and and there's tools or life advice and and there's tools or life advice and and there's like a gym out back it's called the like a gym out back it's called the like a gym out back it's called the prison yard gym so I need equipment so prison yard gym so I need equipment so prison yard gym so I need equipment so you could work out in the Four Seasons you could work out in the Four Seasons you could work out in the Four Seasons like God intended and a bunch of stuff like God intended and a bunch of stuff like God intended and a bunch of stuff like that so we're trying to build it up like that so we're trying to build it up like that so we're trying to build it up and we host events there things like you and we host events there things like you and we host events there things like you know classes or live music or movie know classes or live music or movie know classes or live music or movie screenings or whatever you watch the screenings or whatever you watch the screenings or whatever you watch the playing and they're playing with fire playing and they're playing with fire playing and they're playing with fire documentary which some people in our documentary which some people in our documentary which some people in our circle are very familiar aren't you in circle are very familiar aren't you in circle are very familiar aren't you in that movie no okay anyway I'm surprised that movie no okay anyway I'm surprised that movie no okay anyway I'm surprised you would be the perfect character you would be the perfect character you would be the perfect character another perfect character and that movie another perfect character and that movie another perfect character and that movie this before your time so anyway the this before your time so anyway the this before your time so anyway the first time that was shown was that the first time that was shown was that the first time that was shown was that the headquarters co-working space so that headquarters co-working space so that headquarters co-working space so that was it's been fun and I've made a lot of was it's been fun and I've made a lot of was it's been fun and I've made a lot of new friends through it and it's been new friends through it and it's been new friends through it and it's been around years and I think it's only around years and I think it's only around years and I think it's only gonna keep getting better because we're gonna keep getting better because we're gonna keep getting better because we're really starting to hit our stride terms really starting to hit our stride terms really starting to hit our stride terms of like people joining and the synergy of like people joining and the synergy of like people joining and the synergy of people being friends and that's quite of people being friends and that's quite of people being friends and that's quite magical and I would encourage any early magical and I would encourage any early magical and I would encourage any early retiree or not even retiree anybody who retiree or not even retiree anybody who retiree or not even retiree anybody who wants a business that's fun and social wants a business that's fun and social wants a business that's fun and social starting your own co-working space is a starting your own co-working space is a starting your own co-working space is a kind of a neat thing to do as long as kind of a neat thing to do as long as kind of a neat thing to do as long as the the real estate situation works out the the real estate situation works out the the real estate situation works out like you need a space that you buy or like you need a space that you buy or like you need a space that you buy or rent that's quite affordable because we rent that's quite affordable because we rent that's quite affordable because we charge really low dues for uncle in the charge really low dues for uncle in the charge really low dues for uncle in the space in order to make it more inclusive space in order to make it more inclusive space in order to make it more inclusive and less of a business feel yeah and and less of a business feel yeah and and less of a business feel yeah and that's really paid off because people that's really paid off because people that's really paid off because people can just join on a whim because of that can just join on a whim because of that can just join on a whim because of that so yeah hopefully that's a reasonable so yeah hopefully that's a reasonable so yeah hopefully that's a reasonable answer answer answer starters that's all it's like a secret starters that's all it's like a secret starters that's all it's like a secret you know in the long run I would like to you know in the long run I would like to you know in the long run I would like to create an entire city you know a town create an entire city you know a town create an entire city you know a town that would grow to become a city that that would grow to become a city that that would grow to become a city that has these principles like built into it has these principles like built into it has these principles like built into it from the script from scratch the whole from the script from scratch the whole from the script from scratch the whole idea of like an efficient more people idea of like an efficient more people idea of like an efficient more people centric form of life that's it's centric form of life that's it's centric form of life that's it's basically a car-free walkable basically a car-free walkable basically a car-free walkable environment mostly car-free because i environment mostly car-free because i environment mostly car-free because i think your physical environment in fact think your physical environment in fact think your physical environment in fact affects how you live and if you separate affects how you live and if you separate affects how you live and if you separate people with great distances and people with great distances and people with great distances and dangerous strips of like meat grinding dangerous strips of like meat grinding dangerous strips of like meat grinding asphalt with like you know cars whizzing asphalt with like you know cars whizzing asphalt with like you know cars whizzing around that affects the entire social around that affects the entire social around that affects the entire social structure too because they're they're structure too because they're they're structure too because they're they're isolated and they no longer bump into isolated and they no longer bump into isolated and they no longer bump into each other just in casual situations and each other just in casual situations and each other just in casual situations and that affects your entire life so I think that affects your entire life so I think that affects your entire life so I think the idea you can make humanity better by the idea you can make humanity better by the idea you can make humanity better by having a better City and in the United having a better City and in the United having a better City and in the United States were not doing that we're still States were not doing that we're still States were not doing that we're still following this old recipe that nobody following this old recipe that nobody following this old recipe that nobody really thought out and we're suffering really thought out and we're suffering really thought out and we're suffering because of it mm-hmm so that's the big because of it mm-hmm so that's the big because of it mm-hmm so that's the big plan but it's gonna take some energy I plan but it's gonna take some energy I plan but it's gonna take some energy I need someone like you to manage that need someone like you to manage that need someone like you to manage that project somebody who works four times project somebody who works four times project somebody who works four times harder than normal to build a city okay harder than normal to build a city okay harder than normal to build a city okay well add this to my to do list yeah well add this to my to do list yeah well add this to my to do list yeah build a city I actually I'm obsessed build a city I actually I'm obsessed build a city I actually I'm obsessed with this idea because I love I love with this idea because I love I love with this idea because I love I love architecture and I love sitting planning architecture and I love sitting planning architecture and I love sitting planning because there is something about the way because there is something about the way because there is something about the way we relate in different spaces we used to we relate in different spaces we used to we relate in different spaces we used to live in Germany and we lived in in live in Germany and we lived in in live in Germany and we lived in in Heidelberg which is a very tight compact Heidelberg which is a very tight compact Heidelberg which is a very tight compact old town and it's just you can't really old town and it's just you can't really old town and it's just you can't really drive cars into it because they didn't drive cars into it because they didn't drive cars into it because they didn't create it for cars and they didn't create it for cars and they didn't create it for cars and they didn't create it for parking so people tend to create it for parking so people tend to create it for parking so people tend to so you have to park outside and walk and so you have to park outside and walk and so you have to park outside and walk and it created a different just a different it created a different just a different it created a different just a different way of relating in a different lifestyle way of relating in a different lifestyle way of relating in a different lifestyle and yeah it was delightful but I want to and yeah it was delightful but I want to and yeah it was delightful but I want to talk about in kind of this in this theme talk about in kind of this in this theme talk about in kind of this in this theme of progression and a spectrum of being of progression and a spectrum of being of progression and a spectrum of being good with money because good with money because good with money because I think one of them one of the ways we I think one of them one of the ways we I think one of them one of the ways we get caught up is I think we'll have to get caught up is I think we'll have to get caught up is I think we'll have to be financially independent and that's be financially independent and that's be financially independent and that's gonna take like ten years so why even gonna take like ten years so why even gonna take like ten years so why even bother why even start like paying off my bother why even start like paying off my bother why even start like paying off my credit card debt or why try to pay down credit card debt or why try to pay down credit card debt or why try to pay down my mortgage or like yeah what's it gonna my mortgage or like yeah what's it gonna my mortgage or like yeah what's it gonna matter if I invest $, just like but matter if I invest $, just like but matter if I invest $, just like but there's degrees of even just getting out there's degrees of even just getting out there's degrees of even just getting out of debt yeah it's so empowering yep of debt yeah it's so empowering yep of debt yeah it's so empowering yep you're right and that's to that extent you're right and that's to that extent you're right and that's to that extent like when we use the word financial like when we use the word financial like when we use the word financial independence it it's not such a good independence it it's not such a good independence it it's not such a good thing because it scares people off who thing because it scares people off who thing because it scares people off who are too far away to see you that and are too far away to see you that and are too far away to see you that and really we should just think about yeah really we should just think about yeah really we should just think about yeah what you're saying good with money is a what you're saying good with money is a what you're saying good with money is a nice thing because that's something that nice thing because that's something that nice thing because that's something that can happen overnight like you can subtly can happen overnight like you can subtly can happen overnight like you can subtly lean a little bit better with money lean a little bit better with money lean a little bit better with money every single choice you make is can be a every single choice you make is can be a every single choice you make is can be a destructive choice or a productive one destructive choice or a productive one destructive choice or a productive one like I am gonna buy this thing or I'm like I am gonna buy this thing or I'm like I am gonna buy this thing or I'm not gonna buy it or I'm gonna choose to not gonna buy it or I'm gonna choose to not gonna buy it or I'm gonna choose to pay this debt off or I'm going to use to pay this debt off or I'm going to use to pay this debt off or I'm going to use to add to my debt yeah those are really add to my debt yeah those are really add to my debt yeah those are really small easy decisions and the benefits small easy decisions and the benefits small easy decisions and the benefits begin immediately like as soon as you begin immediately like as soon as you begin immediately like as soon as you make even one choice that improves your make even one choice that improves your make even one choice that improves your financial life your life is better for financial life your life is better for financial life your life is better for the rest of your life so you're building the rest of your life so you're building the rest of your life so you're building up a little series of like golden up a little series of like golden up a little series of like golden nuggets that start to make you less nuggets that start to make you less nuggets that start to make you less stressed you know you skip one you know stressed you know you skip one you know stressed you know you skip one you know expensive happy hour that you can't expensive happy hour that you can't expensive happy hour that you can't afford yeah and your wake up better the afford yeah and your wake up better the afford yeah and your wake up better the next day in all these different ways and next day in all these different ways and next day in all these different ways and yeah you can just keep going with those yeah you can just keep going with those yeah you can just keep going with those things and and the people have often things and and the people have often things and and the people have often described you get a lot of emails when described you get a lot of emails when described you get a lot of emails when you're in our position of being writers you're in our position of being writers you're in our position of being writers or whatever or podcasters um people are or whatever or podcasters um people are or whatever or podcasters um people are saying my life is completely different saying my life is completely different saying my life is completely different because of these things and they're very because of these things and they're very because of these things and they're very thankful even though they're the ones thankful even though they're the ones thankful even though they're the ones who did all the work but it's it's who did all the work but it's it's who did all the work but it's it's people who really get transformed and people who really get transformed and people who really get transformed and they end up a lot happier because of it they end up a lot happier because of it they end up a lot happier because of it well even thinking about your co-working well even thinking about your co-working well even thinking about your co-working space to take it to the next level like space to take it to the next level like space to take it to the next level like being good with money it can kind of being good with money it can kind of being good with money it can kind of help transform your family but then even help transform your family but then even help transform your family but then even in that community sense you don't have in that community sense you don't have in that community sense you don't have to be financially independent don't a to be financially independent don't a to be financially independent don't a co-working space co-working space co-working space or to create a business or a thing they or to create a business or a thing they or to create a business or a thing they that you love if people are just a that you love if people are just a that you love if people are just a little bit better with money you know we little bit better with money you know we little bit better with money you know we enough to get started it's enough to get enough to get started it's enough to get enough to get started it's enough to get started one of the questions I'd love to started one of the questions I'd love to started one of the questions I'd love to ask myself and others because the ask myself and others because the ask myself and others because the greatest I think one of the greatest greatest I think one of the greatest greatest I think one of the greatest benefits of being good with money is benefits of being good with money is benefits of being good with money is being able to say like what am I being able to say like what am I being able to say like what am I uniquely gifted to do what kind of uniquely gifted to do what kind of uniquely gifted to do what kind of impact can I make yeah but not every impact can I make yeah but not every impact can I make yeah but not every other person has access to and I see other person has access to and I see other person has access to and I see financial independence or financial financial independence or financial financial independence or financial freedom is just making it more possible freedom is just making it more possible freedom is just making it more possible at expanding it even more which is one at expanding it even more which is one at expanding it even more which is one of the reasons I love your build a town of the reasons I love your build a town of the reasons I love your build a town idea that is something that I feel like idea that is something that I feel like idea that is something that I feel like you are uniquely capable of doing some you are uniquely capable of doing some you are uniquely capable of doing some parts of it but there's other skills in parts of it but there's other skills in parts of it but there's other skills in that enterprise that I am missing and that enterprise that I am missing and that enterprise that I am missing and that's why I haven't started yet is that's why I haven't started yet is that's why I haven't started yet is because I'm very conscious like I'm not because I'm very conscious like I'm not because I'm very conscious like I'm not willing to commit to a bunch of stuff willing to commit to a bunch of stuff willing to commit to a bunch of stuff that I'm not passionate about so but that I'm not passionate about so but that I'm not passionate about so but you're totally right yeah getting better you're totally right yeah getting better you're totally right yeah getting better money being less stressed out unleashes money being less stressed out unleashes money being less stressed out unleashes your talents so you can use them for your talents so you can use them for your talents so you can use them for whatever them whatever you want them to whatever them whatever you want them to whatever them whatever you want them to be but it also doesn't make you all be but it also doesn't make you all be but it also doesn't make you all powerful and happy you still have the powerful and happy you still have the powerful and happy you still have the same human flaws that everybody else has same human flaws that everybody else has same human flaws that everybody else has and but you just have more time to work and but you just have more time to work and but you just have more time to work on them and find your workarounds what on them and find your workarounds what on them and find your workarounds what do you think what you were talking about do you think what you were talking about do you think what you were talking about in in regards to kind of that high in in regards to kind of that high in in regards to kind of that high school experience and even the life school experience and even the life school experience and even the life you've created now is very tribal and it you've created now is very tribal and it you've created now is very tribal and it is community yeah and if it takes a is community yeah and if it takes a is community yeah and if it takes a village to raise a child it probably village to raise a child it probably village to raise a child it probably takes a village to build a village takes a village to build a village takes a village to build a village that's a lovely phrase yep that's true that's a lovely phrase yep that's true that's a lovely phrase yep that's true and I have collected quite a few people and I have collected quite a few people and I have collected quite a few people who say they want to work on the town who say they want to work on the town who say they want to work on the town they want to create the town project they want to create the town project they want to create the town project yeah and I feel like it really yeah and I feel like it really yeah and I feel like it really we have mmm we have everything we need we have mmm we have everything we need we have mmm we have everything we need to do it and it's just a matter of being to do it and it's just a matter of being to do it and it's just a matter of being willing to commit our time because I willing to commit our time because I willing to commit our time because I don't want to put in a half-assed effort don't want to put in a half-assed effort don't want to put in a half-assed effort to it like if I say we're going to start to it like if I say we're going to start to it like if I say we're going to start a town a town a town we have to do the town and persevere we have to do the town and persevere we have to do the town and persevere yeah not just be like oh yeah that was yeah not just be like oh yeah that was yeah not just be like oh yeah that was just something we started on Friday but just something we started on Friday but just something we started on Friday but then we were tired on Saturday so we then we were tired on Saturday so we then we were tired on Saturday so we didn't continue because it's gonna be a didn't continue because it's gonna be a didn't continue because it's gonna be a multi-year effort and there's gonna be multi-year effort and there's gonna be multi-year effort and there's gonna be hassles like be people who don't want hassles like be people who don't want hassles like be people who don't want you to do it yes and everyone wants to you to do it yes and everyone wants to you to do it yes and everyone wants to stick with the status quo so so yeah stick with the status quo so so yeah stick with the status quo so so yeah it's just something I'm I'm really busy it's just something I'm I'm really busy it's just something I'm I'm really busy like this is on a very personal level like this is on a very personal level like this is on a very personal level but I'm personally maxed out right now but I'm personally maxed out right now but I'm personally maxed out right now with being a dad and you know trying to with being a dad and you know trying to with being a dad and you know trying to take care of myself as a person and I take care of myself as a person and I take care of myself as a person and I know that if I try to let off my effort know that if I try to let off my effort know that if I try to let off my effort to work on creating a new city I would to work on creating a new city I would to work on creating a new city I would not deal with it very well I probably go not deal with it very well I probably go not deal with it very well I probably go a little bit insane and I'm already a a little bit insane and I'm already a a little bit insane and I'm already a little been saying I don't need more of little been saying I don't need more of little been saying I don't need more of that so that's why I haven't taken the that so that's why I haven't taken the that so that's why I haven't taken the steps to do it but that's another thing steps to do it but that's another thing steps to do it but that's another thing that goes you know it's really related that goes you know it's really related that goes you know it's really related to our talk right now which is you get to our talk right now which is you get to our talk right now which is you get to choose that you get to design your to choose that you get to design your to choose that you get to design your projects and when you're ready for them projects and when you're ready for them projects and when you're ready for them and you can take years to plan stuff and and you can take years to plan stuff and and you can take years to plan stuff and I'm already getting a lot of joy just I'm already getting a lot of joy just I'm already getting a lot of joy just thinking and planning about it right now thinking and planning about it right now thinking and planning about it right now one of the things actually I'd love one of the things actually I'd love one of the things actually I'd love about financial independence is that about financial independence is that about financial independence is that there's expiration dates on seasons and there's expiration dates on seasons and there's expiration dates on seasons and they are so short you know the time when they are so short you know the time when they are so short you know the time when our kids are little it's a short season our kids are little it's a short season our kids are little it's a short season and there are some things you can only and there are some things you can only and there are some things you can only do in that season yeah and then it's do in that season yeah and then it's do in that season yeah and then it's gone and financial independence for me gone and financial independence for me gone and financial independence for me just gives me the ability to lean in to just gives me the ability to lean in to just gives me the ability to lean in to every single season and to be fully every single season and to be fully every single season and to be fully present and to fully appreciate it and present and to fully appreciate it and present and to fully appreciate it and just to kind of like suck the marrow out just to kind of like suck the marrow out just to kind of like suck the marrow out of that season of life knowing that it's of that season of life knowing that it's of that season of life knowing that it's going to expire yeah and you can let going to expire yeah and you can let going to expire yeah and you can let yourself off the hook for other stuff yourself off the hook for other stuff yourself off the hook for other stuff like I knew yeah I'm going into child like I knew yeah I'm going into child like I knew yeah I'm going into child releasing that I was not going to be releasing that I was not going to be releasing that I was not going to be good at other stuff to my extent because good at other stuff to my extent because good at other stuff to my extent because that was one of those somewhat driven that was one of those somewhat driven that was one of those somewhat driven people like when I was with software people like when I was with software people like when I was with software engineering I wanted to be a really good engineering I wanted to be a really good engineering I wanted to be a really good one no compromises like I would answer one no compromises like I would answer one no compromises like I would answer my email at p.m. I would never you my email at p.m. I would never you my email at p.m. I would never you know turn in junky work I was one of my know turn in junky work I was one of my know turn in junky work I was one of my work to be perfect and tested and work to be perfect and tested and work to be perfect and tested and beautiful and then and then I thought beautiful and then and then I thought beautiful and then and then I thought well I want to be the same way as a dad well I want to be the same way as a dad well I want to be the same way as a dad I don't want to be half dad and half I don't want to be half dad and half I don't want to be half dad and half software engineer so I did lean into all software engineer so I did lean into all software engineer so I did lean into all this you know the baby stage and the this you know the baby stage and the this you know the baby stage and the dollar stage and all these different dollar stage and all these different dollar stage and all these different stages of child raising stages of child raising stages of child raising and I have no regrets about it and it and I have no regrets about it and it and I have no regrets about it and it was really hard but the interesting was really hard but the interesting was really hard but the interesting thing is focusing on also made it last thing is focusing on also made it last thing is focusing on also made it last longer people always say oh pay longer people always say oh pay longer people always say oh pay attention when you're raising children attention when you're raising children attention when you're raising children because it just goes in the blink of an because it just goes in the blink of an because it just goes in the blink of an eye but that's totally not true like I eye but that's totally not true like I eye but that's totally not true like I have a year old I've had him for like have a year old I've had him for like have a year old I've had him for like years now in my mind like because years now in my mind like because years now in my mind like because that's been my you know I've seen every that's been my you know I've seen every that's been my you know I've seen every little change detail and I haven't little change detail and I haven't little change detail and I haven't missed any of his childhood I was never missed any of his childhood I was never missed any of his childhood I was never at work I've never I've never had to at work I've never I've never had to at work I've never I've never had to work while he was available you know I work while he was available you know I work while he was available you know I was in school so it stretches out these was in school so it stretches out these was in school so it stretches out these seasons so I think that's going to be seasons so I think that's going to be seasons so I think that's going to be good in the long run as an old man I good in the long run as an old man I good in the long run as an old man I look back and be like well I only had look back and be like well I only had look back and be like well I only had that one kid but but at least I had him that one kid but but at least I had him that one kid but but at least I had him for years by the time you got to age for years by the time you got to age for years by the time you got to age so that was great that is so true so so that was great that is so true so so that was great that is so true so growing up and and figuring out how growing up and and figuring out how growing up and and figuring out how you're gonna spend money in the world you're gonna spend money in the world you're gonna spend money in the world you talk a lot about the joy of you talk a lot about the joy of you talk a lot about the joy of optimizing when did that when did you optimizing when did that when did you optimizing when did that when did you kind of lean into that or what was that kind of lean into that or what was that kind of lean into that or what was that kind of inspiration point kind of inspiration point kind of inspiration point yeah I've gradually realized come to yeah I've gradually realized come to yeah I've gradually realized come to realize like as an adult that realize like as an adult that realize like as an adult that optimization even though it sounds a optimization even though it sounds a optimization even though it sounds a little bit dorky when you use that word little bit dorky when you use that word little bit dorky when you use that word for it it's really like the highest form for it it's really like the highest form for it it's really like the highest form of human art and it's one of the most of human art and it's one of the most of human art and it's one of the most beautiful things we do as a creature is beautiful things we do as a creature is beautiful things we do as a creature is figuring out how to do things in a figuring out how to do things in a figuring out how to do things in a smarter and smarter way and get more smarter and smarter way and get more smarter and smarter way and get more benefits you know you think like the benefits you know you think like the benefits you know you think like the old-fashioned example is how we would old-fashioned example is how we would old-fashioned example is how we would figure out how to use every part of figure out how to use every part of figure out how to use every part of nature and every part of animals we nature and every part of animals we nature and every part of animals we would you know capture for food and like would you know capture for food and like would you know capture for food and like to become our housing and shelter and to become our housing and shelter and to become our housing and shelter and clothing and all that stuff like we're clothing and all that stuff like we're clothing and all that stuff like we're just so clever just so clever just so clever as a species when we're in our good we as a species when we're in our good we as a species when we're in our good we know we're all so incredibly dumb when know we're all so incredibly dumb when know we're all so incredibly dumb when we do sometimes we get into this herd we do sometimes we get into this herd we do sometimes we get into this herd behavior but I love optimization so behavior but I love optimization so behavior but I love optimization so every time I get a chance to do it it every time I get a chance to do it it every time I get a chance to do it it makes me happy even though it's also makes me happy even though it's also makes me happy even though it's also increasing my you know my wealth and increasing my you know my wealth and increasing my you know my wealth and smoking my spending go down and one of smoking my spending go down and one of smoking my spending go down and one of the most fun times I discovered this is the most fun times I discovered this is the most fun times I discovered this is like as a pretty young adult I had just like as a pretty young adult I had just like as a pretty young adult I had just graduated and I got a nice job like my graduated and I got a nice job like my graduated and I got a nice job like my first engineering job in a city that was first engineering job in a city that was first engineering job in a city that was like five hours away so I moved there like five hours away so I moved there like five hours away so I moved there and I wanted to have a beautiful place and I wanted to have a beautiful place and I wanted to have a beautiful place to live and I wanted to have to live and I wanted to have to live and I wanted to have room for parties because I wanted this room for parties because I wanted this room for parties because I wanted this tribal environment and I'm one of my tribal environment and I'm one of my tribal environment and I'm one of my friends around me but I also wanted to friends around me but I also wanted to friends around me but I also wanted to not be too expensive so everybody's not be too expensive so everybody's not be too expensive so everybody's going around getting these apartments going around getting these apartments going around getting these apartments and sort of like the s crappy and sort of like the s crappy and sort of like the s crappy apartment buildings because that's how apartment buildings because that's how apartment buildings because that's how you get cheap rent but I went the you get cheap rent but I went the you get cheap rent but I went the opposite way and I looked for like the opposite way and I looked for like the opposite way and I looked for like the most expensive big luxury houses for most expensive big luxury houses for most expensive big luxury houses for rent and hardly anybody could afford rent and hardly anybody could afford rent and hardly anybody could afford these places because they're all looking these places because they're all looking these places because they're all looking for cheap apartments and then I gathered for cheap apartments and then I gathered for cheap apartments and then I gathered together with like five of my best together with like five of my best together with like five of my best friends from from the graduating class friends from from the graduating class friends from from the graduating class you know and my co-workers so a bunch of you know and my co-workers so a bunch of you know and my co-workers so a bunch of like -something year old guys so what like -something year old guys so what like -something year old guys so what it worked out too but together we would it worked out too but together we would it worked out too but together we would rent luxury houses in big neighborhood rent luxury houses in big neighborhood rent luxury houses in big neighborhood you know big like premium neighborhoods you know big like premium neighborhoods you know big like premium neighborhoods in a great location like near the Ottawa in a great location like near the Ottawa in a great location like near the Ottawa River and so we would all have that River and so we would all have that River and so we would all have that gorgeous bedrooms and like a pool table gorgeous bedrooms and like a pool table gorgeous bedrooms and like a pool table in the living room and like one of the in the living room and like one of the in the living room and like one of the houses we rented had like in and even a houses we rented had like in and even a houses we rented had like in and even a full-on dance floor with like built-in full-on dance floor with like built-in full-on dance floor with like built-in sound system and lighting in the sound system and lighting in the sound system and lighting in the basement because it was like this basement because it was like this basement because it was like this wealthy Indian family had developed it wealthy Indian family had developed it wealthy Indian family had developed it and like they really liked to party so and like they really liked to party so and like they really liked to party so we had like great living expenses or we had like great living expenses or we had like great living expenses or experiences best neighborhood and yet experiences best neighborhood and yet experiences best neighborhood and yet our rent was only like $ or our rent was only like $ or our rent was only like $ or you know it's like this house was two you know it's like this house was two you know it's like this house was two thousand dollars to rent for months but thousand dollars to rent for months but thousand dollars to rent for months but this was a long time ago so think of it this was a long time ago so think of it this was a long time ago so think of it like four thousand dollars in today's like four thousand dollars in today's like four thousand dollars in today's dollars it's a pretty nice house and so dollars it's a pretty nice house and so dollars it's a pretty nice house and so it's like optimize it was win-win it's like optimize it was win-win it's like optimize it was win-win because we have the best house and the because we have the best house and the because we have the best house and the cheapest rent and it's close enough to cheapest rent and it's close enough to cheapest rent and it's close enough to bike to everything because it's a rich bike to everything because it's a rich bike to everything because it's a rich neighborhood so it's in the best neighborhood so it's in the best neighborhood so it's in the best location and I always love to seek out location and I always love to seek out location and I always love to seek out those win-win situations where I'm those win-win situations where I'm those win-win situations where I'm saving money but I'm having as much fun saving money but I'm having as much fun saving money but I'm having as much fun as possible to you and there's when you as possible to you and there's when you as possible to you and there's when you look around there's ways to do that in look around there's ways to do that in look around there's ways to do that in almost every area of life which is why I almost every area of life which is why I almost every area of life which is why I talk about bikes so much like bike is talk about bikes so much like bike is talk about bikes so much like bike is such a win over a car because everything such a win over a car because everything such a win over a car because everything is better about it is better about it is better about it there's no compromises when you really there's no compromises when you really there's no compromises when you really think about it and yeah there's ways to think about it and yeah there's ways to think about it and yeah there's ways to do that with your food and with your do that with your food and with your do that with your food and with your what to do with your leisure time and what to do with your leisure time and what to do with your leisure time and even like how to exercise you can have even like how to exercise you can have even like how to exercise you can have like you can drive to a sweaty gym and like you can drive to a sweaty gym and like you can drive to a sweaty gym and wait in line for like a lame exercise wait in line for like a lame exercise wait in line for like a lame exercise bike or bicycle and watch Fox News as bike or bicycle and watch Fox News as bike or bicycle and watch Fox News as you try to exercise or you can be like you try to exercise or you can be like you try to exercise or you can be like outside in a forest doing squats in like outside in a forest doing squats in like outside in a forest doing squats in like getting ten times the benefit like right getting ten times the benefit like right getting ten times the benefit like right in your backyard in your backyard in your backyard you know and it costs $ and I just love you know and it costs $ and I just love you know and it costs $ and I just love that he says I just keep doing it even that he says I just keep doing it even that he says I just keep doing it even now you get a lot of joy from it yeah now you get a lot of joy from it yeah now you get a lot of joy from it yeah one of my mottos is that frugal is best one of my mottos is that frugal is best one of my mottos is that frugal is best paired with easy and fun so if something paired with easy and fun so if something paired with easy and fun so if something is also easy and fun and it happens to is also easy and fun and it happens to is also easy and fun and it happens to save us money that's like the perfect save us money that's like the perfect save us money that's like the perfect way for us to spend time and spend money way for us to spend time and spend money way for us to spend time and spend money yeah here in the Flathead Valley along yeah here in the Flathead Valley along yeah here in the Flathead Valley along the lake they grow cherries and you they the lake they grow cherries and you they the lake they grow cherries and you they have like a you pick cherry orchards so have like a you pick cherry orchards so have like a you pick cherry orchards so in the summer we'll take all of the kids in the summer we'll take all of the kids in the summer we'll take all of the kids and we'll go down to the lake and we'll and we'll go down to the lake and we'll and we'll go down to the lake and we'll pick all of these cherries they're like pick all of these cherries they're like pick all of these cherries they're like a buck a pound and we'll spend a a buck a pound and we'll spend a a buck a pound and we'll spend a couple hours picking them and then we'll couple hours picking them and then we'll couple hours picking them and then we'll go swim in the lake because my kids are go swim in the lake because my kids are go swim in the lake because my kids are covered in cherry mud from like eating covered in cherry mud from like eating covered in cherry mud from like eating pounds of cherries and then all over the pounds of cherries and then all over the pounds of cherries and then all over the dust it does make some great photographs dust it does make some great photographs dust it does make some great photographs like almost a zombie apocalypse it is like almost a zombie apocalypse it is like almost a zombie apocalypse it is yeah but we go swimming and it's just yeah but we go swimming and it's just yeah but we go swimming and it's just it's easy and it's fun and it happens to it's easy and it's fun and it happens to it's easy and it's fun and it happens to save us money happens to provide us like save us money happens to provide us like save us money happens to provide us like cherries cherries cherries local cherries that we freeze I use them local cherries that we freeze I use them local cherries that we freeze I use them all year in our oatmeal and pancakes all year in our oatmeal and pancakes all year in our oatmeal and pancakes yeah that's a great really great example yeah that's a great really great example yeah that's a great really great example and I'm sure everybody listening is like and I'm sure everybody listening is like and I'm sure everybody listening is like oh why didn't I think of that like that oh why didn't I think of that like that oh why didn't I think of that like that is great but easy for you to say you is great but easy for you to say you is great but easy for you to say you live in Montana with the flu blah blah live in Montana with the flu blah blah live in Montana with the flu blah blah but there's always opportunities like but there's always opportunities like but there's always opportunities like this even if you live in like some you this even if you live in like some you this even if you live in like some you know bleak whatever whatever know bleak whatever whatever know bleak whatever whatever stereotypical bleak state and suburb stereotypical bleak state and suburb stereotypical bleak state and suburb there is like probably a beautiful park there is like probably a beautiful park there is like probably a beautiful park nearby that nobody uses and you can have nearby that nobody uses and you can have nearby that nobody uses and you can have great traditions with your kids going to great traditions with your kids going to great traditions with your kids going to this park or like this an undiscovered this park or like this an undiscovered this park or like this an undiscovered river or beach or something near you river or beach or something near you river or beach or something near you there's always a win yeah short distance there's always a win yeah short distance there's always a win yeah short distance from your house and and it's always from your house and and it's always from your house and and it's always gonna be what your friends aren't doing gonna be what your friends aren't doing gonna be what your friends aren't doing so that's probably the hardest thing as so that's probably the hardest thing as so that's probably the hardest thing as your friends are always like hey we're your friends are always like hey we're your friends are always like hey we're taking the kids to the you know to the taking the kids to the you know to the taking the kids to the you know to the virtual reality arcade and it's like a virtual reality arcade and it's like a virtual reality arcade and it's like a hundred dollars per family you want to hundred dollars per family you want to hundred dollars per family you want to go and I know I have a close friend go and I know I have a close friend go and I know I have a close friend who's gonna be mad at me for using this who's gonna be mad at me for using this who's gonna be mad at me for using this example but it just popped into my mind example but it just popped into my mind example but it just popped into my mind because like yes it's fun and you should because like yes it's fun and you should because like yes it's fun and you should do that sometimes but if you do that all do that sometimes but if you do that all do that sometimes but if you do that all the time just because that's what you the time just because that's what you the time just because that's what you from your friends you're not going to from your friends you're not going to from your friends you're not going to discover these magical cherry patch discover these magical cherry patch discover these magical cherry patch moments that are more fun and they're moments that are more fun and they're moments that are more fun and they're free and those are the things they are free and those are the things they are free and those are the things they are going to get your head to be honest like going to get your head to be honest like going to get your head to be honest like the money part it's gonna make a huge the money part it's gonna make a huge the money part it's gonna make a huge difference in your wealth yeah finding difference in your wealth yeah finding difference in your wealth yeah finding the fun free things to do and you really the fun free things to do and you really the fun free things to do and you really at some point you really have to do less at some point you really have to do less at some point you really have to do less expensive stuff if you're gonna get expensive stuff if you're gonna get expensive stuff if you're gonna get ahead with money because like there's no ahead with money because like there's no ahead with money because like there's no oh there's no way around the math yeah oh there's no way around the math yeah oh there's no way around the math yeah so you have to at least think about like so you have to at least think about like so you have to at least think about like is this is this affordable for me in my is this is this affordable for me in my is this is this affordable for me in my life stage and you don't have to life stage and you don't have to life stage and you don't have to compromise to do that but you do have to compromise to do that but you do have to compromise to do that but you do have to at least be aware of it at least be aware of it at least be aware of it I think that's the joy of optimizing you I think that's the joy of optimizing you I think that's the joy of optimizing you know when you talk about what is the joy know when you talk about what is the joy know when you talk about what is the joy of optimizing it's finding the things of optimizing it's finding the things of optimizing it's finding the things that maybe cost less money but they add that maybe cost less money but they add that maybe cost less money but they add the richness and the meaning and the the richness and the meaning and the the richness and the meaning and the value to our life like that is the value to our life like that is the value to our life like that is the texture of what made for a great day are texture of what made for a great day are texture of what made for a great day are what made for a great week and you can what made for a great week and you can what made for a great week and you can create this amazing life that just create this amazing life that just create this amazing life that just happens to also cost a lot less money happens to also cost a lot less money happens to also cost a lot less money and happens to because it's costing less and happens to because it's costing less and happens to because it's costing less money it's growing our financial money it's growing our financial money it's growing our financial independence so we can just expand it independence so we can just expand it independence so we can just expand it even more yeah even more yeah even more yeah gives us more freedom and more options gives us more freedom and more options gives us more freedom and more options okay so to retrospective questions one okay so to retrospective questions one okay so to retrospective questions one if you had to knowing what you know now if you had to knowing what you know now if you had to knowing what you know now if you had to spend more money in one if you had to spend more money in one if you had to spend more money in one category over the last ten years what's category over the last ten years what's category over the last ten years what's something that you realize would have something that you realize would have something that you realize would have been worse would have been worth the been worse would have been worth the been worse would have been worth the extra money that's a tricky one I don't extra money that's a tricky one I don't extra money that's a tricky one I don't think I had any things that I spent too think I had any things that I spent too think I had any things that I spent too little money on but I do think I worried little money on but I do think I worried little money on but I do think I worried about money too much so there would about money too much so there would about money too much so there would often be times especially if we're on often be times especially if we're on often be times especially if we're on vacation or something and then something vacation or something and then something vacation or something and then something comes up that's you know an unpleasant comes up that's you know an unpleasant comes up that's you know an unpleasant price you're like oh I can't believe price you're like oh I can't believe price you're like oh I can't believe this is like bucks for this junky this is like bucks for this junky this is like bucks for this junky you know snack at the at the whatever you know snack at the at the whatever you know snack at the at the whatever like the national park or something when like the national park or something when like the national park or something when I could have this for $ at the grocery I could have this for $ at the grocery I could have this for $ at the grocery store yeah so you get a little bit store yeah so you get a little bit store yeah so you get a little bit offended by when you're offended by when you're offended by when you're to being frugal you get morally offended to being frugal you get morally offended to being frugal you get morally offended by things that are a ripoff and and now by things that are a ripoff and and now by things that are a ripoff and and now I realize that that kind of stuff I realize that that kind of stuff I realize that that kind of stuff doesn't make any difference in your doesn't make any difference in your doesn't make any difference in your trajectory to freedom like it's ten trajectory to freedom like it's ten trajectory to freedom like it's ten dollars here or there but you're not dollars here or there but you're not dollars here or there but you're not always on vacation you're not doing it always on vacation you're not doing it always on vacation you're not doing it every day so it's totally fine yeah so every day so it's totally fine yeah so every day so it's totally fine yeah so just changing my attitude towards these just changing my attitude towards these just changing my attitude towards these things and just enjoying it like hey things and just enjoying it like hey things and just enjoying it like hey look at that ripoff I'm so glad I can look at that ripoff I'm so glad I can look at that ripoff I'm so glad I can afford ten dollars and it doesn't affect afford ten dollars and it doesn't affect afford ten dollars and it doesn't affect me at all me at all me at all hahaha here's the $ silly like ripoff hahaha here's the $ silly like ripoff hahaha here's the $ silly like ripoff store and then you walk away enjoy it store and then you walk away enjoy it store and then you walk away enjoy it and you just don't repeat it a lot and and you just don't repeat it a lot and and you just don't repeat it a lot and then you'll be fine you know and just then you'll be fine you know and just then you'll be fine you know and just learning to relax at that kind of stuff learning to relax at that kind of stuff learning to relax at that kind of stuff I would have had more fun because I was I would have had more fun because I was I would have had more fun because I was what I didn't realize is I've always what I didn't realize is I've always what I didn't realize is I've always been wealthy like as soon as I was been wealthy like as soon as I was been wealthy like as soon as I was years old and I graduated with no debt years old and I graduated with no debt years old and I graduated with no debt from university I was already richer from university I was already richer from university I was already richer than most of my peers because they were than most of my peers because they were than most of my peers because they were in the negative and then I've always in the negative and then I've always in the negative and then I've always been positive since then just slowly been positive since then just slowly been positive since then just slowly growing so I've always been a rich growing so I've always been a rich growing so I've always been a rich person I just didn't let myself feel person I just didn't let myself feel person I just didn't let myself feel that way until more recently and now that way until more recently and now that way until more recently and now it's been a lot more fun and I don't it's been a lot more fun and I don't it's been a lot more fun and I don't spend more but I just don't stress out spend more but I just don't stress out spend more but I just don't stress out like last night we went as a speaker's like last night we went as a speaker's like last night we went as a speaker's dinner you know to the restaurant and I dinner you know to the restaurant and I dinner you know to the restaurant and I mean it wasn't an expensive restaurant mean it wasn't an expensive restaurant mean it wasn't an expensive restaurant even but I just loved I just had a brief even but I just loved I just had a brief even but I just loved I just had a brief feeling I'm like hey there's not a nice feeling I'm like hey there's not a nice feeling I'm like hey there's not a nice feeling that no matter what happens here feeling that no matter what happens here feeling that no matter what happens here and what we order here we can afford it and what we order here we can afford it and what we order here we can afford it you know and I don't you know the old me you know and I don't you know the old me you know and I don't you know the old me might have worried like oh we should might have worried like oh we should might have worried like oh we should have brought some some nuts to eat in my have brought some some nuts to eat in my have brought some some nuts to eat in my room instead of going out to dinner you room instead of going out to dinner you room instead of going out to dinner you know like when I was and I was just know like when I was and I was just know like when I was and I was just trying to scrape through on tradish trying to scrape through on tradish trying to scrape through on tradish tuition money alone yeah I would have tuition money alone yeah I would have tuition money alone yeah I would have had those worries and so yeah letting go had those worries and so yeah letting go had those worries and so yeah letting go of your worries of your worries of your worries earlier is a nice way to feel like feel earlier is a nice way to feel like feel earlier is a nice way to feel like feel rich sooner yeah so this might tie into rich sooner yeah so this might tie into rich sooner yeah so this might tie into my next question is were there any any my next question is were there any any my next question is were there any any mindsets or ideas of perspectives that mindsets or ideas of perspectives that mindsets or ideas of perspectives that if you knew years ago would have made if you knew years ago would have made if you knew years ago would have made the last years more enjoyable or more the last years more enjoyable or more the last years more enjoyable or more fun fun fun I would I would have the same answer I would I would have the same answer I would I would have the same answer yeah it's just worry less and we're less yeah it's just worry less and we're less yeah it's just worry less and we're less about everything like including about everything like including about everything like including interpersonal stuff yeah you know if interpersonal stuff yeah you know if interpersonal stuff yeah you know if you're if you're relationships or you're if you're relationships or you're if you're relationships or friendships aren't going exactly the friendships aren't going exactly the friendships aren't going exactly the way you want just like seeing the other way you want just like seeing the other way you want just like seeing the other person's perspective and realizing person's perspective and realizing person's perspective and realizing they're not against you they're not against you they're not against you they're just trying their best based on they're just trying their best based on they're just trying their best based on their life experiences and just yeah their life experiences and just yeah their life experiences and just yeah just learning to let go and enjoy people just learning to let go and enjoy people just learning to let go and enjoy people for what they are for what they are for what they are it just helps release and save you from it just helps release and save you from it just helps release and save you from a lot of conflict yeah I think I was you a lot of conflict yeah I think I was you a lot of conflict yeah I think I was you know I'm an unusual person so a lot of know I'm an unusual person so a lot of know I'm an unusual person so a lot of people aren't like me so then and that people aren't like me so then and that people aren't like me so then and that makes me feel like oh well why are these makes me feel like oh well why are these makes me feel like oh well why are these people thinking the same way as me they people thinking the same way as me they people thinking the same way as me they must be against me in some way or you must be against me in some way or you must be against me in some way or you know we can't be friends or and it's know we can't be friends or and it's know we can't be friends or and it's learning to realize that we're all learning to realize that we're all learning to realize that we're all different and you can celebrate the different and you can celebrate the different and you can celebrate the difference more that's probably the the difference more that's probably the the difference more that's probably the the big benefit I've gotten from like the big benefit I've gotten from like the big benefit I've gotten from like the last years just mellowing out yeah so last years just mellowing out yeah so last years just mellowing out yeah so if you could learn I don't know if you if you could learn I don't know if you if you could learn I don't know if you can do this cuz like it comes from can do this cuz like it comes from can do this cuz like it comes from experience but if you're a young high experience but if you're a young high experience but if you're a young high strong person strong person strong person imagine this future mellow version of imagine this future mellow version of imagine this future mellow version of you and what would they be like look at you and what would they be like look at you and what would they be like look at the dalai lama's way of living and just the dalai lama's way of living and just the dalai lama's way of living and just relax dude he's so relaxed and he's got relax dude he's so relaxed and he's got relax dude he's so relaxed and he's got he's on to something there I think he's on to something there I think he's on to something there I think that's what's you know old mellow people that's what's you know old mellow people that's what's you know old mellow people are onto something are onto something are onto something something a good thing for the young something a good thing for the young something a good thing for the young people to learn yeah thank you so much P people to learn yeah thank you so much P people to learn yeah thank you so much P thank you for coming to Montana thank thank you for coming to Montana thank thank you for coming to Montana thank you for chatting and just being a really you for chatting and just being a really you for chatting and just being a really great inspiration not just for you know great inspiration not just for you know great inspiration not just for you know what you're known for in the early what you're known for in the early what you're known for in the early retirement scene by kind of showing retirement scene by kind of showing retirement scene by kind of showing showing us this real-life example of showing us this real-life example of showing us this real-life example of what life can look like and what our what life can look like and what our what life can look like and what our impact can be once you're good with impact can be once you're good with impact can be once you're good with money money money Wow thanks Jillian that's quite Wow thanks Jillian that's quite Wow thanks Jillian that's quite flattering ouch oh and this is a really flattering ouch oh and this is a really flattering ouch oh and this is a really different conversation than most different conversation than most different conversation than most podcasts that I've ever been on which is podcasts that I've ever been on which is podcasts that I've ever been on which is I don't even go on them very often so I don't even go on them very often so I don't even go on them very often so this is the most fun whoo-hoo most fun this is the most fun whoo-hoo most fun this is the most fun whoo-hoo most fun it's cuz we're Montana that's it awesome it's cuz we're Montana that's it awesome it's cuz we're Montana that's it awesome my very first wine yeah I feel like this is a good sign yeah I feel like this is a good sign yeah I feel like this is a good sign that can be how you market it you could that can be how you market it you could that can be how you market it you could be like listen to the podcast that be like listen to the podcast that be like listen to the podcast that mister money mustache said most fun ever mister money mustache said most fun ever mister money mustache said most fun ever about we will use that sound clip with a about we will use that sound clip with a about we will use that sound clip with a little video that will go on Instagram little video that will go on Instagram little video that will go on Instagram that'll be the just you saying that WEBVTT Kind: captions Language: en [Music] [Music] [Music] if you're a finance geek like me if you're a finance geek like me if you're a finance geek like me you might have heard about the fire you might have heard about the fire you might have heard about the fire movement don't worry movement don't worry movement don't worry we're not about to set anything aflame we're not about to set anything aflame we're not about to set anything aflame fire is about your financial future fire is about your financial future fire is about your financial future it's about saving now so you can live it's about saving now so you can live it's about saving now so you can live life as you want it later life as you want it later life as you want it later with me let's take a closer look at the with me let's take a closer look at the with me let's take a closer look at the fire movement fire movement fire movement and why you might find it interesting and why you might find it interesting and why you might find it interesting [Music] [Music] [Music] fire stands for financial independence fire stands for financial independence fire stands for financial independence retire early retire early retire early the goal is to save and invest a large the goal is to save and invest a large the goal is to save and invest a large part of your income part of your income part of your income so you can retire years or even decades so you can retire years or even decades so you can retire years or even decades before the typical retirement age before the typical retirement age before the typical retirement age imagine if working a full-time job imagine if working a full-time job imagine if working a full-time job wasn't necessary to live to the fullest wasn't necessary to live to the fullest wasn't necessary to live to the fullest sounds liberating right fire followers sounds liberating right fire followers sounds liberating right fire followers create a detailed savings plan to create a detailed savings plan to create a detailed savings plan to achieve this goal achieve this goal achieve this goal who are these people and how do they do who are these people and how do they do who are these people and how do they do it you may wonder above all it takes it you may wonder above all it takes it you may wonder above all it takes serious dedication to organizing your serious dedication to organizing your serious dedication to organizing your finances finances finances to be able to save and invest you need to be able to save and invest you need to be able to save and invest you need to determine your financial goal to determine your financial goal to determine your financial goal aka your fire number in order to produce aka your fire number in order to produce aka your fire number in order to produce your savings strategy your savings strategy your savings strategy sort your expenses and identify your sort your expenses and identify your sort your expenses and identify your saving and investment plan saving and investment plan saving and investment plan and of course you need to be meticulous and of course you need to be meticulous and of course you need to be meticulous about saving about saving about saving financial independence doesn't just mean financial independence doesn't just mean financial independence doesn't just mean sitting on some tropical beach sitting on some tropical beach sitting on some tropical beach or playing golf all the time it means or playing golf all the time it means or playing golf all the time it means reaching the point where you don't have reaching the point where you don't have reaching the point where you don't have to work for a living to work for a living to work for a living and you can spend your time doing the and you can spend your time doing the and you can spend your time doing the things that bring you fulfillment things that bring you fulfillment things that bring you fulfillment of course if you want to sit margaritas of course if you want to sit margaritas of course if you want to sit margaritas on the tropical beach all day on the tropical beach all day on the tropical beach all day that's also fine the choice is yours that's also fine the choice is yours that's also fine the choice is yours [Music] [Music] [Music] now let's talk about the five common now let's talk about the five common now let's talk about the five common fire categories fire categories fire categories traditional fire here the idea is to traditional fire here the idea is to traditional fire here the idea is to look for ways to raise your income look for ways to raise your income look for ways to raise your income and lower your expenses then you save a and lower your expenses then you save a and lower your expenses then you save a large part of your earnings large part of your earnings large part of your earnings usually around percent once you reach usually around percent once you reach usually around percent once you reach around times your yearly income around times your yearly income around times your yearly income you can stop working and live by you can stop working and live by you can stop working and live by annually withdrawing annually withdrawing annually withdrawing about four percent of your savings lean about four percent of your savings lean about four percent of your savings lean fire fire fire as the name suggests you need to as the name suggests you need to as the name suggests you need to significantly reduce your spending significantly reduce your spending significantly reduce your spending in order to save a large portion of your in order to save a large portion of your in order to save a large portion of your income you need to be very disciplined income you need to be very disciplined income you need to be very disciplined about your expenses and learn to live about your expenses and learn to live about your expenses and learn to live minimalistically minimalistically minimalistically like a firefighter get it like a firefighter get it like a firefighter get it moving on fat fire if you take the fat moving on fat fire if you take the fat moving on fat fire if you take the fat fire route it means you don't want any fire route it means you don't want any fire route it means you don't want any significant changes to your current significant changes to your current significant changes to your current lifestyle when you retire lifestyle when you retire lifestyle when you retire or you might even want an upgrade it's or you might even want an upgrade it's or you might even want an upgrade it's also about earning on the side of also about earning on the side of also about earning on the side of caution caution caution by saving enough to have a lot more than by saving enough to have a lot more than by saving enough to have a lot more than you need when you become financially you need when you become financially you need when you become financially independent independent independent that can mean saving and investing more that can mean saving and investing more that can mean saving and investing more aggressively or aggressively or aggressively or finding ways to make more money on the finding ways to make more money on the finding ways to make more money on the side barista fire side barista fire side barista fire this is the middle ground route in this this is the middle ground route in this this is the middle ground route in this scenario an early retiree plans scenario an early retiree plans scenario an early retiree plans to maintain more than a minimus to maintain more than a minimus to maintain more than a minimus lifestyle in retirement lifestyle in retirement lifestyle in retirement but not stop working entirely you plan but not stop working entirely you plan but not stop working entirely you plan to live partly on your savings and still to live partly on your savings and still to live partly on your savings and still work part-time work part-time work part-time so you can spend more time with family so you can spend more time with family so you can spend more time with family and friends and friends and friends coast fire if your focus is mostly the coast fire if your focus is mostly the coast fire if your focus is mostly the financial independence aspect financial independence aspect financial independence aspect then you might like coast fire rather then you might like coast fire rather then you might like coast fire rather than stop working than stop working than stop working you'll use passive income like compound you'll use passive income like compound you'll use passive income like compound investments investments investments and accumulated interest to hit your and accumulated interest to hit your and accumulated interest to hit your determined savings target determined savings target determined savings target but how do you estimate your fire number but how do you estimate your fire number but how do you estimate your fire number in the first place in the first place in the first place it's typically calculated by multiplying it's typically calculated by multiplying it's typically calculated by multiplying your yearly expenses your yearly expenses your yearly expenses to times estimating an annual to times estimating an annual to times estimating an annual withdrawal of withdrawal of withdrawal of then calculating how long it will take then calculating how long it will take then calculating how long it will take you to accumulate your fire number you to accumulate your fire number you to accumulate your fire number based on the amount you are able to save based on the amount you are able to save based on the amount you are able to save each year each year each year while each fire goal is unique to your while each fire goal is unique to your while each fire goal is unique to your needs and aspirations needs and aspirations needs and aspirations your attitude makes all the difference your attitude makes all the difference your attitude makes all the difference fire may not be for you fire may not be for you fire may not be for you and you may not have early retirement and you may not have early retirement and you may not have early retirement aspirations but at its core aspirations but at its core aspirations but at its core the same principles of saving for your the same principles of saving for your the same principles of saving for your future can be applied to how you do your future can be applied to how you do your future can be applied to how you do your banking today banking today banking today and n can help you with that with n and n can help you with that with n and n can help you with that with n statistics you can analyze where you're statistics you can analyze where you're statistics you can analyze where you're spending your money spending your money spending your money and if there are better ways to spend and if there are better ways to spend and if there are better ways to spend save or invest it save or invest it save or invest it when you turn on the roundups feature in when you turn on the roundups feature in when you turn on the roundups feature in the n app the n app the n app they'll round up every card purchase to they'll round up every card purchase to they'll round up every card purchase to the nearest euro the nearest euro the nearest euro and automatically transfer the and automatically transfer the and automatically transfer the difference into your chosen space difference into your chosen space difference into your chosen space this way you will save money without this way you will save money without this way you will save money without even having to think about it even having to think about it even having to think about it so these are the different routes you so these are the different routes you so these are the different routes you could take to hit your fire number could take to hit your fire number could take to hit your fire number are you brave enough to share your fire are you brave enough to share your fire are you brave enough to share your fire number don't be shy to use the comments number don't be shy to use the comments number don't be shy to use the comments below below below for more financial tips subscribe to our for more financial tips subscribe to our for more financial tips subscribe to our youtube channel youtube channel youtube channel or go to n.com or go to n.com or go to n.com [Music] [Music] [Music] you WEBVTT Kind: captions Language: en the fire movement is a trend amongst the fire movement is a trend amongst the fire movement is a trend amongst young workers which is growing in young workers which is growing in young workers which is growing in popularity thanks to its very enticing popularity thanks to its very enticing popularity thanks to its very enticing goal goal goal which is spelled out right there in the which is spelled out right there in the which is spelled out right there in the name fire name fire name fire is an acronym for financial independence is an acronym for financial independence is an acronym for financial independence and retiring and retiring and retiring early the idea is that by following a early the idea is that by following a early the idea is that by following a very aggressive saving and investing very aggressive saving and investing very aggressive saving and investing strategy strategy strategy people can get to a point where they're people can get to a point where they're people can get to a point where they're retired at a very young retired at a very young retired at a very young age sometimes younger than . age sometimes younger than . age sometimes younger than . in a world where we are being told that in a world where we are being told that in a world where we are being told that pensions are running dry and the average pensions are running dry and the average pensions are running dry and the average person may have to work in some capacity person may have to work in some capacity person may have to work in some capacity for their entire life for their entire life for their entire life this sounds like a bit of a lofty dream this sounds like a bit of a lofty dream this sounds like a bit of a lofty dream sure there are trust fund babies and sure there are trust fund babies and sure there are trust fund babies and young tech bros who may earn millions young tech bros who may earn millions young tech bros who may earn millions within their first few years in the real within their first few years in the real within their first few years in the real world world world but surely kicking back on a beach and but surely kicking back on a beach and but surely kicking back on a beach and never thinking about work again never thinking about work again never thinking about work again is not attainable for a regular wage is not attainable for a regular wage is not attainable for a regular wage slave right slave right slave right well if some figureheads and internet well if some figureheads and internet well if some figureheads and internet forums are to be believed well forums are to be believed well forums are to be believed well yeah actually it is pretty much yeah actually it is pretty much yeah actually it is pretty much attainable for attainable for attainable for anybody now in the interest of full anybody now in the interest of full anybody now in the interest of full disclosure disclosure disclosure i am a passionate advocate for the i am a passionate advocate for the i am a passionate advocate for the financial independence movement financial independence movement financial independence movement but that does not mean that i don't see but that does not mean that i don't see but that does not mean that i don't see issues with it issues with it issues with it now many of those issues are glossed now many of those issues are glossed now many of those issues are glossed over in the sheer over in the sheer over in the sheer simplicity of it which is also part of simplicity of it which is also part of simplicity of it which is also part of the reason why it is so powerful the reason why it is so powerful the reason why it is so powerful so long as someone can get to a point so long as someone can get to a point so long as someone can get to a point where their investments are making as where their investments are making as where their investments are making as much as their living expenses long term much as their living expenses long term much as their living expenses long term they have achieved financial they have achieved financial they have achieved financial independence simple independence simple independence simple as that getting to that point is harder as that getting to that point is harder as that getting to that point is harder for some for some for some than for others but advocates of the than for others but advocates of the than for others but advocates of the movement argue that this difficulty has movement argue that this difficulty has movement argue that this difficulty has more to do with personal lifestyles more to do with personal lifestyles more to do with personal lifestyles rather than personal incomes so rather than personal incomes so rather than personal incomes so what are the mechanics of the fire what are the mechanics of the fire what are the mechanics of the fire movement movement movement how could someone use it to stop working how could someone use it to stop working how could someone use it to stop working forever forever forever is this actually attainable for anybody is this actually attainable for anybody is this actually attainable for anybody like they say like they say like they say and finally what would this movement do and finally what would this movement do and finally what would this movement do to the wider economy to the wider economy to the wider economy if everyone strives towards a goal where if everyone strives towards a goal where if everyone strives towards a goal where they quit working at the age of they quit working at the age of they quit working at the age of surely this would bring our world to a surely this would bring our world to a surely this would bring our world to a grinding halt right grinding halt right grinding halt right well if we can properly explore and well if we can properly explore and well if we can properly explore and answer these questions answer these questions answer these questions we will be able to reveal if this whole we will be able to reveal if this whole we will be able to reveal if this whole thing is grounded in reality thing is grounded in reality thing is grounded in reality or if it's just a fanciful pipe dream or if it's just a fanciful pipe dream or if it's just a fanciful pipe dream from people who really hate their boss from people who really hate their boss from people who really hate their boss this episode of economics explained was this episode of economics explained was this episode of economics explained was made possible by our mates at acorns made possible by our mates at acorns made possible by our mates at acorns the app that simplifies all your the app that simplifies all your the app that simplifies all your financial needs checking financial needs checking financial needs checking saving investing retirement and much saving investing retirement and much saving investing retirement and much more more more all in one stay tuned until the end to all in one stay tuned until the end to all in one stay tuned until the end to learn more or sign up now at acorns.com learn more or sign up now at acorns.com learn more or sign up now at acorns.com ee and acorns will deposit five dollars ee and acorns will deposit five dollars ee and acorns will deposit five dollars into your portfolio to help you get into your portfolio to help you get into your portfolio to help you get started with investing started with investing started with investing the link is on the screen now and in the the link is on the screen now and in the the link is on the screen now and in the video description below video description below video description below now if you are thinking to yourself that now if you are thinking to yourself that now if you are thinking to yourself that the idea of retiring at the age of the idea of retiring at the age of the idea of retiring at the age of sounds pretty compelling sounds pretty compelling sounds pretty compelling the first thing you need to do is really the first thing you need to do is really the first thing you need to do is really understand how this system works understand how this system works understand how this system works so outside of broad statements like so outside of broad statements like so outside of broad statements like saving and investing saving and investing saving and investing what are the nuts and bolts of fire what are the nuts and bolts of fire what are the nuts and bolts of fire there are historical figures for a range there are historical figures for a range there are historical figures for a range of very important factors in the economy of very important factors in the economy of very important factors in the economy which helps us in a sense make which helps us in a sense make which helps us in a sense make projections into the future projections into the future projections into the future the assumptions that are relevant to the the assumptions that are relevant to the the assumptions that are relevant to the idea of fire are that a well-diversified idea of fire are that a well-diversified idea of fire are that a well-diversified investment portfolio investment portfolio investment portfolio should return around eight percent per should return around eight percent per should return around eight percent per year and then inflation is around year and then inflation is around year and then inflation is around two to three percent per year some of two to three percent per year some of two to three percent per year some of these figures can change these figures can change these figures can change but with this we get the foundation of but with this we get the foundation of but with this we get the foundation of being able to live forever being able to live forever being able to live forever off your investment portfolio for off your investment portfolio for off your investment portfolio for example example example if you had a million dollars invested if you had a million dollars invested if you had a million dollars invested into a broad market index fund into a broad market index fund into a broad market index fund you would normally expect that over time you would normally expect that over time you would normally expect that over time the returns from this portfolio would the returns from this portfolio would the returns from this portfolio would average out to about eight percent per average out to about eight percent per average out to about eight percent per year year year and for the last years or so that and for the last years or so that and for the last years or so that has been correct has been correct has been correct on average this return would be split up on average this return would be split up on average this return would be split up between dividends between dividends between dividends and capital appreciation in other words and capital appreciation in other words and capital appreciation in other words the rise in price of stocks within the the rise in price of stocks within the the rise in price of stocks within the index index index what this means is that effectively you what this means is that effectively you what this means is that effectively you would be able to draw would be able to draw would be able to draw from this portfolio every year from this portfolio every year from this portfolio every year and it would still be worth a million and it would still be worth a million and it would still be worth a million dollars dollars dollars now is a pretty comfortable now is a pretty comfortable now is a pretty comfortable lifestyle for most people lifestyle for most people lifestyle for most people in most cities around the world and in most cities around the world and in most cities around the world and while saving a million dollars is while saving a million dollars is while saving a million dollars is obviously obviously obviously hugely difficult it's not impossible for hugely difficult it's not impossible for hugely difficult it's not impossible for people with good people with good people with good professional careers especially if we professional careers especially if we professional careers especially if we are looking at dual income households are looking at dual income households are looking at dual income households but there are two factors that make this but there are two factors that make this but there are two factors that make this a little bit more difficult than it a little bit more difficult than it a little bit more difficult than it would initially seem would initially seem would initially seem the first is that inflation rate the the first is that inflation rate the the first is that inflation rate the federal reserve bank of the united federal reserve bank of the united federal reserve bank of the united states targets a states targets a states targets a inflation rate in the equivalent of inflation rate in the equivalent of inflation rate in the equivalent of an an an salary today was around salary today was around salary today was around per year since the fire movement is all per year since the fire movement is all per year since the fire movement is all about retiring at a very young age and about retiring at a very young age and about retiring at a very young age and enjoying a enjoying a enjoying a long life without the need to work you long life without the need to work you long life without the need to work you should realistically be planning should realistically be planning should realistically be planning for at least the next years at a for at least the next years at a for at least the next years at a rate of inflation in years time that rate of inflation in years time that rate of inflation in years time that a year salary that you are pulling from a year salary that you are pulling from a year salary that you are pulling from your investment portfolio your investment portfolio your investment portfolio would only be the equivalent of a would only be the equivalent of a would only be the equivalent of a salary today i mean you could still salary today i mean you could still salary today i mean you could still scrape by in a low cost of living area scrape by in a low cost of living area scrape by in a low cost of living area in the united states in the united states in the united states but it would be far from comfortable and but it would be far from comfortable and but it would be far from comfortable and it might put you in a position it might put you in a position it might put you in a position where you need to go back to work at the where you need to go back to work at the where you need to go back to work at the age of age of age of after years out of the workforce good after years out of the workforce good after years out of the workforce good luck luck luck what that means is that for this million what that means is that for this million what that means is that for this million dollar portfolio to maintain dollar portfolio to maintain dollar portfolio to maintain its real value you would need to put its real value you would need to put its real value you would need to put back in back in back in at per year to fend off that at per year to fend off that at per year to fend off that inflation rate not a huge deal but what inflation rate not a huge deal but what inflation rate not a huge deal but what that means is that now you are only left that means is that now you are only left that means is that now you are only left with with with a year to live on beyond that some a year to live on beyond that some a year to live on beyond that some people want a bit of a buffer in their people want a bit of a buffer in their people want a bit of a buffer in their investment growth so investment growth so investment growth so it's normally suggested to reinvest at it's normally suggested to reinvest at it's normally suggested to reinvest at least three percent back into your least three percent back into your least three percent back into your portfolio portfolio portfolio year on year alright so now all of a year on year alright so now all of a year on year alright so now all of a sudden we are living on fifty thousand sudden we are living on fifty thousand sudden we are living on fifty thousand dollars per year for the rest of our dollars per year for the rest of our dollars per year for the rest of our lives and this is before we get to lives and this is before we get to lives and this is before we get to problem two problem two problem two there is a strategy in investing called there is a strategy in investing called there is a strategy in investing called dollar cost averaging dollar cost averaging dollar cost averaging and it is a really powerful thing to and it is a really powerful thing to and it is a really powerful thing to understand understand understand the idea is that the market is erratic the idea is that the market is erratic the idea is that the market is erratic and and and mostly unpredictable but over time it mostly unpredictable but over time it mostly unpredictable but over time it trends upwards trends upwards trends upwards so if you consistently invest at a set so if you consistently invest at a set so if you consistently invest at a set time interval like let's say once per time interval like let's say once per time interval like let's say once per month month month you are going to get the most out of the you are going to get the most out of the you are going to get the most out of the market for three reasons market for three reasons market for three reasons reason one is that it takes the emotion reason one is that it takes the emotion reason one is that it takes the emotion out of investing out of investing out of investing if you automatically set money aside and if you automatically set money aside and if you automatically set money aside and don't think about it you aren't going to don't think about it you aren't going to don't think about it you aren't going to be tempted to buy into the next hot be tempted to buy into the next hot be tempted to buy into the next hot stock or stock or stock or pull your money out at the bottom of the pull your money out at the bottom of the pull your money out at the bottom of the market reason market reason market reason is that it gets your money to work right is that it gets your money to work right is that it gets your money to work right away if you hold off from investing for away if you hold off from investing for away if you hold off from investing for a year until you have done some research a year until you have done some research a year until you have done some research on a particular on a particular on a particular stock or whatever you will be missing stock or whatever you will be missing stock or whatever you will be missing time in the market to generate returns time in the market to generate returns time in the market to generate returns since on average the market returns since on average the market returns since on average the market returns eight percent per year eight percent per year eight percent per year if you hold off investing ten thousand if you hold off investing ten thousand if you hold off investing ten thousand dollars you would already be dollars you would already be dollars you would already be eight hundred dollars behind someone who eight hundred dollars behind someone who eight hundred dollars behind someone who is just dollar cost averaging is just dollar cost averaging is just dollar cost averaging time in the market beats timing the time in the market beats timing the time in the market beats timing the market as it were market as it were market as it were now the third reason is the most now the third reason is the most now the third reason is the most powerful and also the hardest to powerful and also the hardest to powerful and also the hardest to understand understand understand the key to investing is buying low and the key to investing is buying low and the key to investing is buying low and selling high right selling high right selling high right well by investing at set intervals well by investing at set intervals well by investing at set intervals you're kind of doing this by default you're kind of doing this by default you're kind of doing this by default which sounds weird but let me explain if which sounds weird but let me explain if which sounds weird but let me explain if for example you invest for example you invest for example you invest a month into walmart stock it would a month into walmart stock it would a month into walmart stock it would depend on the price of the shares as to depend on the price of the shares as to depend on the price of the shares as to how much stock you how much stock you how much stock you actually buy for example if it is actually buy for example if it is actually buy for example if it is trading at trading at trading at per share you would be able to buy per share you would be able to buy per share you would be able to buy shares shares shares simple enough but now let's say the simple enough but now let's say the simple enough but now let's say the price doubles to price doubles to price doubles to per share well at that price your one per share well at that price your one per share well at that price your one thousand dollar a month investment is thousand dollar a month investment is thousand dollar a month investment is only going to buy only going to buy only going to buy five shares and the same is true if the five shares and the same is true if the five shares and the same is true if the price drops to fifty dollars per share price drops to fifty dollars per share price drops to fifty dollars per share where suddenly you're going to be able where suddenly you're going to be able where suddenly you're going to be able to buy shares per month to buy shares per month to buy shares per month by maintaining a consistent investment by maintaining a consistent investment by maintaining a consistent investment pattern this hypothetical investor pattern this hypothetical investor pattern this hypothetical investor has bought more shares when they are has bought more shares when they are has bought more shares when they are cheaper and less shares when they are cheaper and less shares when they are cheaper and less shares when they are more expensive more expensive more expensive giving them a win in at least one side giving them a win in at least one side giving them a win in at least one side of this buy of this buy of this buy low and sell high debate the problem low and sell high debate the problem low and sell high debate the problem with all of these benefits of dollar with all of these benefits of dollar with all of these benefits of dollar cost averaging on the buy cost averaging on the buy cost averaging on the buy side is that they are the same as the side is that they are the same as the side is that they are the same as the drawbacks on the sell side drawbacks on the sell side drawbacks on the sell side if someone is drawing five thousand if someone is drawing five thousand if someone is drawing five thousand dollars per month from their portfolio dollars per month from their portfolio dollars per month from their portfolio to maintain their living expenses to maintain their living expenses to maintain their living expenses then they are naturally going to sell then they are naturally going to sell then they are naturally going to sell more of their shares more of their shares more of their shares when they are cheaper than when they are when they are cheaper than when they are when they are cheaper than when they are more expensive more expensive more expensive for all of these reasons most people in for all of these reasons most people in for all of these reasons most people in the fire community the fire community the fire community work around the three per cent rule this work around the three per cent rule this work around the three per cent rule this rule is created by starting with an rule is created by starting with an rule is created by starting with an eight percent expected return eight percent expected return eight percent expected return and then deducting two percent for and then deducting two percent for and then deducting two percent for inflation one percent for market inflation one percent for market inflation one percent for market volatility volatility volatility one percent for the impacts of negative one percent for the impacts of negative one percent for the impacts of negative dollar cost averaging dollar cost averaging dollar cost averaging and one percent as a comfortable margin and one percent as a comfortable margin and one percent as a comfortable margin of safety in plain english what this of safety in plain english what this of safety in plain english what this means is that if you can live off three means is that if you can live off three means is that if you can live off three percent of your investable net worth percent of your investable net worth percent of your investable net worth every year before considering taxes every year before considering taxes every year before considering taxes congratulations you are financially congratulations you are financially congratulations you are financially independent and you will continue to be independent and you will continue to be independent and you will continue to be into eternity all other things been into eternity all other things been into eternity all other things been equal but equal but equal but three percent is not huge if you wanted three percent is not huge if you wanted three percent is not huge if you wanted to live off one hundred thousand dollars to live off one hundred thousand dollars to live off one hundred thousand dollars per year per year per year you would need three point three million you would need three point three million you would need three point three million dollars invested dollars invested dollars invested there are some people that will push there are some people that will push there are some people that will push this three percent rule to a four this three percent rule to a four this three percent rule to a four percent rule to be a little riskier but percent rule to be a little riskier but percent rule to be a little riskier but retire a little sooner retire a little sooner retire a little sooner but the fact of the matter is to pull but the fact of the matter is to pull but the fact of the matter is to pull something like this off you still need something like this off you still need something like this off you still need to be pretty damn rich to be pretty damn rich to be pretty damn rich the idea that anyone can do this is the idea that anyone can do this is the idea that anyone can do this is simply not simply not simply not true but it might still be less daunting true but it might still be less daunting true but it might still be less daunting than these numbers would suggest than these numbers would suggest than these numbers would suggest and in fact there are even tiers of the and in fact there are even tiers of the and in fact there are even tiers of the fire movement to account for this fire movement to account for this fire movement to account for this so how could an average person stop so how could an average person stop so how could an average person stop working forever working forever working forever while making enough money to live while making enough money to live while making enough money to live forever on a year forever on a year forever on a year might sound almost impossible many might sound almost impossible many might sound almost impossible many pundits of the movement argue that this pundits of the movement argue that this pundits of the movement argue that this is far from necessary is far from necessary is far from necessary and in fact fire is more about assessing and in fact fire is more about assessing and in fact fire is more about assessing what you value what you value what you value rather than earning lots of money if you rather than earning lots of money if you rather than earning lots of money if you value material things and want to be value material things and want to be value material things and want to be able to go on multiple holidays per year able to go on multiple holidays per year able to go on multiple holidays per year to exotic destinations to exotic destinations to exotic destinations that's fine but you are going to have to that's fine but you are going to have to that's fine but you are going to have to give up a little bit more of your time give up a little bit more of your time give up a little bit more of your time and spend slightly longer in a career and spend slightly longer in a career and spend slightly longer in a career building up an investment portfolio if building up an investment portfolio if building up an investment portfolio if you ever want to retire you ever want to retire you ever want to retire other people might be perfectly content other people might be perfectly content other people might be perfectly content to live in a low cost of living area and to live in a low cost of living area and to live in a low cost of living area and pursue low cost hobbies which means that pursue low cost hobbies which means that pursue low cost hobbies which means that they will need they will need they will need far less money to be financially far less money to be financially far less money to be financially independent independent independent what this effectively means is that how what this effectively means is that how what this effectively means is that how quickly you can retire quickly you can retire quickly you can retire is determined by your savings rate is determined by your savings rate is determined by your savings rate rather than your gross savings rather than your gross savings rather than your gross savings a nurse earning sixty thousand dollars a nurse earning sixty thousand dollars a nurse earning sixty thousand dollars per year after taxes and living on per year after taxes and living on per year after taxes and living on thirty thousand dollars per year thirty thousand dollars per year thirty thousand dollars per year should be able to retire within years should be able to retire within years should be able to retire within years at a safe withdrawal rate a at a safe withdrawal rate a at a safe withdrawal rate a neurosurgeon on the other hand neurosurgeon on the other hand neurosurgeon on the other hand might be earning per year after might be earning per year after might be earning per year after taxes taxes taxes but after an expensive mortgage private but after an expensive mortgage private but after an expensive mortgage private school fees school fees school fees exotic holidays and student loans they exotic holidays and student loans they exotic holidays and student loans they might end up spending might end up spending might end up spending per year on their living per year on their living per year on their living expenses expenses expenses what this means is that it would take what this means is that it would take what this means is that it would take that doctor years to get to a point that doctor years to get to a point that doctor years to get to a point where they could maintain their where they could maintain their where they could maintain their lifestyle indefinitely off their lifestyle indefinitely off their lifestyle indefinitely off their investments investments investments now both of these instances are the now both of these instances are the now both of these instances are the result of personal choice result of personal choice result of personal choice if the neurosurgeon loves his job and if the neurosurgeon loves his job and if the neurosurgeon loves his job and loves his nice things then well loves his nice things then well loves his nice things then well all power to them but if they don't like all power to them but if they don't like all power to them but if they don't like their job their job their job the fire movement advocates for properly the fire movement advocates for properly the fire movement advocates for properly assessing assessing assessing if you like that new porsche as much as if you like that new porsche as much as if you like that new porsche as much as you dislike you dislike you dislike six months at work now of course for six months at work now of course for six months at work now of course for some people some people some people this mass simply doesn't work you can this mass simply doesn't work you can this mass simply doesn't work you can only lower your living expenses so only lower your living expenses so only lower your living expenses so far before you push yourself into far before you push yourself into far before you push yourself into poverty and unfortunately poverty and unfortunately poverty and unfortunately the reality is today that a lot of the reality is today that a lot of the reality is today that a lot of people out there can't afford even a people out there can't afford even a people out there can't afford even a basic lifestyle basic lifestyle basic lifestyle while still having money left over to while still having money left over to while still having money left over to save but for those who can save but for those who can save but for those who can it's extremely important to think about it's extremely important to think about it's extremely important to think about major financial decisions major financial decisions major financial decisions in terms of opportunity costs with the in terms of opportunity costs with the in terms of opportunity costs with the missed opportunity missed opportunity missed opportunity been years that you could have spent been years that you could have spent been years that you could have spent sleeping in sleeping in sleeping in working on hobbies or traveling rather working on hobbies or traveling rather working on hobbies or traveling rather than sitting in an office than sitting in an office than sitting in an office now this is all well and good now this is all well and good now this is all well and good individually but on a macro economic individually but on a macro economic individually but on a macro economic level level level if this idea was to really take off if this idea was to really take off if this idea was to really take off surely it's not sustainable surely it's not sustainable surely it's not sustainable how would a world without workers work how would a world without workers work how would a world without workers work we have explored the labor market twice we have explored the labor market twice we have explored the labor market twice in the last two months and in the last two months and in the last two months and both times we have found that human both times we have found that human both times we have found that human labor is very labor is very labor is very important to maintaining a functioning important to maintaining a functioning important to maintaining a functioning economy not to mention economy not to mention economy not to mention a functioning society this shouldn't be a functioning society this shouldn't be a functioning society this shouldn't be a huge surprise to anybody a huge surprise to anybody a huge surprise to anybody least of all all the people who sit down least of all all the people who sit down least of all all the people who sit down to watch videos on economics to watch videos on economics to watch videos on economics but what might surprise you is that but what might surprise you is that but what might surprise you is that there could be an there could be an there could be an alternative consider this thought alternative consider this thought alternative consider this thought experiment experiment experiment someone is working and saving half of someone is working and saving half of someone is working and saving half of their income their income their income with all that saved money they buy a with all that saved money they buy a with all that saved money they buy a farm and then they pay to have a farm and then they pay to have a farm and then they pay to have a workshop put on that farm and then they workshop put on that farm and then they workshop put on that farm and then they pay to have machines automate the pay to have machines automate the pay to have machines automate the planting and harvesting of crops planting and harvesting of crops planting and harvesting of crops they also pay to have a mine with access they also pay to have a mine with access they also pay to have a mine with access to basic materials set up to basic materials set up to basic materials set up and robots to harvest and refine those and robots to harvest and refine those and robots to harvest and refine those metals as well metals as well metals as well finally their workshop is kitted out in finally their workshop is kitted out in finally their workshop is kitted out in all of the latest technology to allow all of the latest technology to allow all of the latest technology to allow them to produce them to produce them to produce anything their little heart desires from anything their little heart desires from anything their little heart desires from scratch scratch scratch well in this example this person would well in this example this person would well in this example this person would be completely be completely be completely financially independent assuming they financially independent assuming they financially independent assuming they don't have to pay land taxes don't have to pay land taxes don't have to pay land taxes now this hypothetical is sure to make a now this hypothetical is sure to make a now this hypothetical is sure to make a lot of ranchers and off-the-grid folks lot of ranchers and off-the-grid folks lot of ranchers and off-the-grid folks very excited very excited very excited but it's not too different from what but it's not too different from what but it's not too different from what fire practitioners are doing fire practitioners are doing fire practitioners are doing all of the things our hypothetical all of the things our hypothetical all of the things our hypothetical worker bought were either land or worker bought were either land or worker bought were either land or capital goods capital goods capital goods as in machinery or technology that makes as in machinery or technology that makes as in machinery or technology that makes making stuff making stuff making stuff possible now in this very direct example possible now in this very direct example possible now in this very direct example this individual was investing in things this individual was investing in things this individual was investing in things that could be used to produce goods and that could be used to produce goods and that could be used to produce goods and services services services for themselves but more realistically for themselves but more realistically for themselves but more realistically a real person would use their money to a real person would use their money to a real person would use their money to invest into things that would be used to invest into things that would be used to invest into things that would be used to produce goods and services produce goods and services produce goods and services for everybody they would then charge for everybody they would then charge for everybody they would then charge everyone the rights to use their everyone the rights to use their everyone the rights to use their productive capacity in the form of productive capacity in the form of productive capacity in the form of profit profit profit which they would then pay out to which they would then pay out to which they would then pay out to themselves as dividends themselves as dividends themselves as dividends and in the real world likely have a and in the real world likely have a and in the real world likely have a company company company acting to facilitate this in a sense acting to facilitate this in a sense acting to facilitate this in a sense financial independence is like financial independence is like financial independence is like crowd-sourced off-the-grid independence crowd-sourced off-the-grid independence crowd-sourced off-the-grid independence using financial instruments to make the using financial instruments to make the using financial instruments to make the process of living off machinery and land process of living off machinery and land process of living off machinery and land more efficient so would a mass more efficient so would a mass more efficient so would a mass uptake and fire practitioners ruin the uptake and fire practitioners ruin the uptake and fire practitioners ruin the economy well short-term economy well short-term economy well short-term yes the drop in consumer spending and yes the drop in consumer spending and yes the drop in consumer spending and rush to financial markets would cause rush to financial markets would cause rush to financial markets would cause a lot of volatility but long term it is a lot of volatility but long term it is a lot of volatility but long term it is theoretically possible we have explored theoretically possible we have explored theoretically possible we have explored this idea before on the channel this idea before on the channel this idea before on the channel in an automated future where capital in an automated future where capital in an automated future where capital goods completely replace labor and the goods completely replace labor and the goods completely replace labor and the factors of production in our video on factors of production in our video on factors of production in our video on autonomy autonomy autonomy i don't want to repeat too much of that i don't want to repeat too much of that i don't want to repeat too much of that here but a takeaway was that this here but a takeaway was that this here but a takeaway was that this capital intensive future could be a capital intensive future could be a capital intensive future could be a utopia utopia utopia or it could be a complete disaster or it could be a complete disaster or it could be a complete disaster depending on how this inevitable depending on how this inevitable depending on how this inevitable transition transition transition was handled the financial independence was handled the financial independence was handled the financial independence retire early movement is certainly not retire early movement is certainly not retire early movement is certainly not something that is going to be the right something that is going to be the right something that is going to be the right fit for fit for fit for everybody for most people the cuts to everybody for most people the cuts to everybody for most people the cuts to their lifestyle are just not worth the their lifestyle are just not worth the their lifestyle are just not worth the extra few years out of their careers extra few years out of their careers extra few years out of their careers there is also of course the there is also of course the there is also of course the psychological aspect of not having psychological aspect of not having psychological aspect of not having anything to work towards anything to work towards anything to work towards go play a sandbox game with unlimited go play a sandbox game with unlimited go play a sandbox game with unlimited money hacks turned on and you get the money hacks turned on and you get the money hacks turned on and you get the idea of how quickly can get idea of how quickly can get idea of how quickly can get pretty boring without some kind of pretty boring without some kind of pretty boring without some kind of challenge there are theories and challenge there are theories and challenge there are theories and suggestions that go a long way to suggestions that go a long way to suggestions that go a long way to remedying some of these more remedying some of these more remedying some of these more psychological issues psychological issues psychological issues but again this is not our area of but again this is not our area of but again this is not our area of expertise here at economics explained expertise here at economics explained expertise here at economics explained instead from a pragmatic economist point instead from a pragmatic economist point instead from a pragmatic economist point of view of view of view the fire movement's biggest takeaway the fire movement's biggest takeaway the fire movement's biggest takeaway might be the lesson it gives us might be the lesson it gives us might be the lesson it gives us in the trade-off of time for stuff in the trade-off of time for stuff in the trade-off of time for stuff if we start thinking about purchases in if we start thinking about purchases in if we start thinking about purchases in the form of how many hours you need to the form of how many hours you need to the form of how many hours you need to work to buy work to buy work to buy something you might be less tempted to something you might be less tempted to something you might be less tempted to splurge splurge splurge hours of team meetings for that new hours of team meetings for that new hours of team meetings for that new iphone hours working through excel iphone hours working through excel iphone hours working through excel macros to pay for that new outfit macros to pay for that new outfit macros to pay for that new outfit lame excuses to your boss as to why lame excuses to your boss as to why lame excuses to your boss as to why you were late in order to buy that fancy you were late in order to buy that fancy you were late in order to buy that fancy dinner dinner dinner well for some people it's worth it but well for some people it's worth it but well for some people it's worth it but for many people for many people for many people it isn't now for the people that don't it isn't now for the people that don't it isn't now for the people that don't think it's worth it think it's worth it think it's worth it sometimes the daunting prospect of sometimes the daunting prospect of sometimes the daunting prospect of actually starting to invest is the only actually starting to invest is the only actually starting to invest is the only thing holding them back thing holding them back thing holding them back fortunately this step can be made a lot fortunately this step can be made a lot fortunately this step can be made a lot easier easier easier with acorns acorns is your all-in-one with acorns acorns is your all-in-one with acorns acorns is your all-in-one financial services app that makes financial services app that makes financial services app that makes investing investing investing as easy as spending every time you use as easy as spending every time you use as easy as spending every time you use your debit or credit card your debit or credit card your debit or credit card you can set up acorns to automatically you can set up acorns to automatically you can set up acorns to automatically round up your purchase to the nearest round up your purchase to the nearest round up your purchase to the nearest whole dollar whole dollar whole dollar and then auto invest the difference for and then auto invest the difference for and then auto invest the difference for you right into your diversified you right into your diversified you right into your diversified portfolio portfolio portfolio and the best part is you don't have to and the best part is you don't have to and the best part is you don't have to be an economist like myself to get be an economist like myself to get be an economist like myself to get started started started that's because acorns does the investing that's because acorns does the investing that's because acorns does the investing work for you work for you work for you each portfolio has been constructed with each portfolio has been constructed with each portfolio has been constructed with ets managed by arguably the smartest ets managed by arguably the smartest ets managed by arguably the smartest money managers in the world money managers in the world money managers in the world vanguard and blackrock not to mention vanguard and blackrock not to mention vanguard and blackrock not to mention help from nobel prize-winning economist help from nobel prize-winning economist help from nobel prize-winning economist dr harry markowitz dr harry markowitz dr harry markowitz even better the acorns platform provides even better the acorns platform provides even better the acorns platform provides pre-built portfolios which you can pre-built portfolios which you can pre-built portfolios which you can adjust adjust adjust based on your risk tolerance for example based on your risk tolerance for example based on your risk tolerance for example if you're young and have many years if you're young and have many years if you're young and have many years before you reach retirement you can before you reach retirement you can before you reach retirement you can select acorns's aggressive portfolio select acorns's aggressive portfolio select acorns's aggressive portfolio which consists which consists which consists entirely of equities or if you're a bit entirely of equities or if you're a bit entirely of equities or if you're a bit older and looking to de-risk your older and looking to de-risk your older and looking to de-risk your holdings holdings holdings you can select acorns's conservative you can select acorns's conservative you can select acorns's conservative portfolio portfolio portfolio which is entirely comprised of which is entirely comprised of which is entirely comprised of short-term government bonds short-term government bonds short-term government bonds whatever your financial goals are acorns whatever your financial goals are acorns whatever your financial goals are acorns can help you get there can help you get there can help you get there and that's why we here at economics and that's why we here at economics and that's why we here at economics explained as well as seven million other explained as well as seven million other explained as well as seven million other users trust acorns to manage users trust acorns to manage users trust acorns to manage our investments and savings we'd be our investments and savings we'd be our investments and savings we'd be remiss if we didn't mention the power of remiss if we didn't mention the power of remiss if we didn't mention the power of compound interest or compound interest or compound interest or the eighth wonder of the world as the eighth wonder of the world as the eighth wonder of the world as einstein once said consider this einstein once said consider this einstein once said consider this the average acorns user invests more the average acorns user invests more the average acorns user invests more than a month using roundups or about than a month using roundups or about than a month using roundups or about per year now let's assume that you're per year now let's assume that you're per year now let's assume that you're years old at the time of watching this years old at the time of watching this years old at the time of watching this video and you're finally ready to commit video and you're finally ready to commit video and you're finally ready to commit to becoming a long-term investor to becoming a long-term investor to becoming a long-term investor by setting aside just a month from by setting aside just a month from by setting aside just a month from your roundups into your diversified your roundups into your diversified your roundups into your diversified acorns portfolio acorns portfolio acorns portfolio which for this hypothetical example which for this hypothetical example which for this hypothetical example grows at seven percent a year grows at seven percent a year grows at seven percent a year you'd have a whopping . and you'd have a whopping . and you'd have a whopping . and cents cents cents by the time you reach retirement at age by the time you reach retirement at age by the time you reach retirement at age . that's . that's . that's extremely impressive for spare change extremely impressive for spare change extremely impressive for spare change that you probably won't even realize is that you probably won't even realize is that you probably won't even realize is missing missing missing here's something else even more here's something else even more here's something else even more mind-blowing you can accelerate the mind-blowing you can accelerate the mind-blowing you can accelerate the wonders of compound interest by using a wonders of compound interest by using a wonders of compound interest by using a tool like acorns's tool like acorns's tool like acorns's automatic recurring contributions automatic recurring contributions automatic recurring contributions feature by investing just an extra ten feature by investing just an extra ten feature by investing just an extra ten dollars a day into this hypothetical dollars a day into this hypothetical dollars a day into this hypothetical portfolio portfolio portfolio you'd have a whopping eight hundred and you'd have a whopping eight hundred and you'd have a whopping eight hundred and seventy three thousand four hundred seventy three thousand four hundred seventy three thousand four hundred dollars dollars dollars and two cents by the time you retire at and two cents by the time you retire at and two cents by the time you retire at age . age . age . if you're thinking now well that's all if you're thinking now well that's all if you're thinking now well that's all great mr economics explained but i'm not great mr economics explained but i'm not great mr economics explained but i'm not and i don't have years to invest and i don't have years to invest and i don't have years to invest let this video now remind you of that let this video now remind you of that let this video now remind you of that ancient chinese proverb ancient chinese proverb ancient chinese proverb the best time to plan a tree was the best time to plan a tree was the best time to plan a tree was years ago the second best time years ago the second best time years ago the second best time is now guys never forget every oak tree is now guys never forget every oak tree is now guys never forget every oak tree begins as a humble acorn begins as a humble acorn begins as a humble acorn and you can start planning your and you can start planning your and you can start planning your financial oak tree today with acorns financial oak tree today with acorns financial oak tree today with acorns sign up now at acorns.com ee and they'll sign up now at acorns.com ee and they'll sign up now at acorns.com ee and they'll deposit five dollars into your portfolio deposit five dollars into your portfolio deposit five dollars into your portfolio to help you get started with investing to help you get started with investing to help you get started with investing that's acorns.com that's acorns.com that's acorns.com ee the link is on the screen now and in ee the link is on the screen now and in ee the link is on the screen now and in the video description below the video description below the video description below thanks for watching guys bye WEBVTT Kind: captions Language: en well I'm standing here in a poncho so well I'm standing here in a poncho so well I'm standing here in a poncho so I'm not really sure what's good for I'm not really sure what's good for I'm not really sure what's good for advice advice advice oh wow I am not coordinated at all so oh wow I am not coordinated at all so oh wow I am not coordinated at all so this might take some time by FISH you this might take some time by FISH you this might take some time by FISH you mean all creatures that live either the mean all creatures that live either the mean all creatures that live either the sea or because I kind of want this sea or because I kind of want this sea or because I kind of want this starfish the fire movement is heating up starfish the fire movement is heating up starfish the fire movement is heating up what they say it is is financial what they say it is is financial what they say it is is financial independence retire early what's your independence retire early what's your independence retire early what's your definition of financial independence definition of financial independence definition of financial independence it's being able to say heck with you and it's being able to say heck with you and it's being able to say heck with you and quit a job when you need to or change quit a job when you need to or change quit a job when you need to or change direction financial independence is direction financial independence is direction financial independence is having enough saved you don't ever have having enough saved you don't ever have having enough saved you don't ever have to work again if you don't want to kind to work again if you don't want to kind to work again if you don't want to kind of like early retirement really when of like early retirement really when of like early retirement really when they say retire early what they're they say retire early what they're they say retire early what they're really talking about is do something really talking about is do something really talking about is do something else and not work for you know the man I else and not work for you know the man I else and not work for you know the man I think financial independence boils down think financial independence boils down think financial independence boils down to having options being able to travel to having options being able to travel to having options being able to travel do things for families for charities or do things for families for charities or do things for families for charities or do things for your community financial do things for your community financial do things for your community financial independence to me means being able to independence to me means being able to independence to me means being able to do what you want when you want and so do what you want when you want and so do what you want when you want and so for some people that takes very little for some people that takes very little for some people that takes very little money for other people it takes a ton of money for other people it takes a ton of money for other people it takes a ton of money but it's being able to tell the money but it's being able to tell the money but it's being able to tell the boss hey I don't wanna come to work boss hey I don't wanna come to work boss hey I don't wanna come to work tomorrow and you're okay with that tomorrow and you're okay with that tomorrow and you're okay with that this little fishie says what is the best this little fishie says what is the best this little fishie says what is the best way for someone to start earning passive way for someone to start earning passive way for someone to start earning passive income whenever we talk about passive income whenever we talk about passive income whenever we talk about passive income I have to say that like vlogging income I have to say that like vlogging income I have to say that like vlogging is always gonna be the first thing that is always gonna be the first thing that is always gonna be the first thing that comes to my mind but you may not love comes to my mind but you may not love comes to my mind but you may not love writing there might be something that writing there might be something that writing there might be something that you love like maybe you love Etsy crafts you love like maybe you love Etsy crafts you love like maybe you love Etsy crafts or maybe you love analytics in the stock or maybe you love analytics in the stock or maybe you love analytics in the stock market but the most important thing is market but the most important thing is market but the most important thing is that you figure out what excites you that you figure out what excites you that you figure out what excites you because what excites you is gonna be because what excites you is gonna be because what excites you is gonna be easy for you to do I think I think the easy for you to do I think I think the easy for you to do I think I think the most common answer to this is real most common answer to this is real most common answer to this is real estate don't just watch some infomercial estate don't just watch some infomercial estate don't just watch some infomercial at a.m. and think hey I'm gonna start at a.m. and think hey I'm gonna start at a.m. and think hey I'm gonna start real estate properties and make real estate properties and make real estate properties and make millions of dollars off that for me millions of dollars off that for me millions of dollars off that for me managing real estate sounds managing real estate sounds managing real estate sounds the biggest headache in the world I'm the biggest headache in the world I'm the biggest headache in the world I'm gonna use investing principals and earn gonna use investing principals and earn gonna use investing principals and earn dividends and kind of build my passive dividends and kind of build my passive dividends and kind of build my passive income in a much more hands-off way I income in a much more hands-off way I income in a much more hands-off way I don't really think there is such a thing don't really think there is such a thing don't really think there is such a thing as passive income to tell you the truth as passive income to tell you the truth as passive income to tell you the truth I think if you're making money you I think if you're making money you I think if you're making money you should always be working to promote the should always be working to promote the should always be working to promote the things that you've created I don't think things that you've created I don't think things that you've created I don't think you should take passive income for you should take passive income for you should take passive income for granted I think you should be actionable granted I think you should be actionable granted I think you should be actionable about it because everything AARP has a about it because everything AARP has a about it because everything AARP has a lot of great additional videos coming lot of great additional videos coming lot of great additional videos coming out and you do not want to miss any of out and you do not want to miss any of out and you do not want to miss any of them so subscribe to AARP YouTube them so subscribe to AARP YouTube them so subscribe to AARP YouTube channel I've been efficient you got me channel I've been efficient you got me channel I've been efficient you got me you got me got me working out up here you got me got me working out up here you got me got me working out up here here we go here we go alright here we go here we go here we go alright here we go here we go here we go alright here we go so you've thought that questions were so you've thought that questions were so you've thought that questions were gonna be hard WEBVTT Kind: captions Language: en you know I mean you've got people that you know I mean you've got people that you know I mean you've got people that say well if you're not on Social say well if you're not on Social say well if you're not on Social Security or whatever you're not retired Security or whatever you're not retired Security or whatever you're not retired you know well that's a pretty narrow you know well that's a pretty narrow you know well that's a pretty narrow definition so you know if you've got it definition so you know if you've got it definition so you know if you've got it you've got a lot of studying to do you've got a lot of studying to do you've got a lot of studying to do because there's an awful lot of people because there's an awful lot of people because there's an awful lot of people almost everybody I listen to in this almost everybody I listen to in this almost everybody I listen to in this space is working hi there my dears so space is working hi there my dears so space is working hi there my dears so today we're talking about the three legs today we're talking about the three legs today we're talking about the three legs of the fire stool that you're being of the fire stool that you're being of the fire stool that you're being taught we're gonna tackle all three of taught we're gonna tackle all three of taught we're gonna tackle all three of those legs and show you the other side those legs and show you the other side those legs and show you the other side that you may not have considered that that you may not have considered that that you may not have considered that could be working against you could be working against you could be working against you okay so we're Frankin ng and we fired at okay so we're Frankin ng and we fired at okay so we're Frankin ng and we fired at in our mid s so we want to talk about in our mid s so we want to talk about in our mid s so we want to talk about the three legged stool today and kind of the three legged stool today and kind of the three legged stool today and kind of dig into that the ideas behind the dig into that the ideas behind the dig into that the ideas behind the three-legged stool in the fire community three-legged stool in the fire community three-legged stool in the fire community the three legs are frugality would be the three legs are frugality would be the three legs are frugality would be number one and investing would be number number one and investing would be number number one and investing would be number two and then making more money would be two and then making more money would be two and then making more money would be number three now I want to say that all number three now I want to say that all number three now I want to say that all three of those legs are just excellent three of those legs are just excellent three of those legs are just excellent things to be doing regardless of how things to be doing regardless of how things to be doing regardless of how you're trying to achieve some kind of you're trying to achieve some kind of you're trying to achieve some kind of retiring or a better life or what have retiring or a better life or what have retiring or a better life or what have you you know all three of those ideas in you you know all three of those ideas in you you know all three of those ideas in principle are superb ideas no issues principle are superb ideas no issues principle are superb ideas no issues with the ideas but let's dissect them a with the ideas but let's dissect them a with the ideas but let's dissect them a little bit as they are being promoted in little bit as they are being promoted in little bit as they are being promoted in the some fire circles the first one the some fire circles the first one the some fire circles the first one being frugality when I see some of these being frugality when I see some of these being frugality when I see some of these ideas in the fire community is you know ideas in the fire community is you know ideas in the fire community is you know for Galatea's I think it's not really a for Galatea's I think it's not really a for Galatea's I think it's not really a science it's more of an art and so it's science it's more of an art and so it's science it's more of an art and so it's it's kind of subjective and so because it's kind of subjective and so because it's kind of subjective and so because of that you've got a lot of no of that you've got a lot of no of that you've got a lot of no boundaries and so what you get is you boundaries and so what you get is you boundaries and so what you get is you get these extremes for example when we get these extremes for example when we get these extremes for example when we were first starting out learning our were first starting out learning our were first starting out learning our industrious for gala tea I read books on industrious for gala tea I read books on industrious for gala tea I read books on frugality and one of the ideas was use frugality and one of the ideas was use frugality and one of the ideas was use old tires off your vehicle that you were old tires off your vehicle that you were old tires off your vehicle that you were replacing to make sandals out of them replacing to make sandals out of them replacing to make sandals out of them making your own sandals and well I making your own sandals and well I making your own sandals and well I didn't get a lot of good ideas by didn't get a lot of good ideas by didn't get a lot of good ideas by reading really I got the best ideas from reading really I got the best ideas from reading really I got the best ideas from in practice in practice in practice trial and error and over a period of trial and error and over a period of trial and error and over a period of years years years you know just amassed all these ideas you know just amassed all these ideas you know just amassed all these ideas and I want to tell you that there was and I want to tell you that there was and I want to tell you that there was extreme ideas just went nowhere with me extreme ideas just went nowhere with me extreme ideas just went nowhere with me but this was years ago another idea that but this was years ago another idea that but this was years ago another idea that is more recent that I've seen is for is more recent that I've seen is for is more recent that I've seen is for adults to not use paper not gonna get adults to not use paper not gonna get adults to not use paper not gonna get graphic or anything but they want to use graphic or anything but they want to use graphic or anything but they want to use linen diapers or wipes for adults no way linen diapers or wipes for adults no way linen diapers or wipes for adults no way yeah oh no they wash them that way yeah oh no they wash them that way yeah oh no they wash them that way you're not using OS paper and all those you're not using OS paper and all those you're not using OS paper and all those expensive these are really extreme ideas expensive these are really extreme ideas expensive these are really extreme ideas that are not necessary from where we're that are not necessary from where we're that are not necessary from where we're coming from coming from coming from I've never heard of such a thing we I've never heard of such a thing we I've never heard of such a thing we never did any of those things mmm you never did any of those things mmm you never did any of those things mmm you know just like we we never had to take a know just like we we never had to take a know just like we we never had to take a light bulb out of the living room and light bulb out of the living room and light bulb out of the living room and take it into the bedroom when we left take it into the bedroom when we left take it into the bedroom when we left the living room and went into the the living room and went into the the living room and went into the bedroom in Ecuador just to be able to bedroom in Ecuador just to be able to bedroom in Ecuador just to be able to live on half of what the expats do we live on half of what the expats do we live on half of what the expats do we never did any of those things in Ecuador never did any of those things in Ecuador never did any of those things in Ecuador and we never did extreme things in the and we never did extreme things in the and we never did extreme things in the u.s. so I'm just saying that there's a u.s. so I'm just saying that there's a u.s. so I'm just saying that there's a lot of information out there that is lot of information out there that is lot of information out there that is really kind of not all that useful and really kind of not all that useful and really kind of not all that useful and not all that effective I've also always not all that effective I've also always not all that effective I've also always had a washer I've never done my clothes had a washer I've never done my clothes had a washer I've never done my clothes by hand yeah hang them out to dry but I by hand yeah hang them out to dry but I by hand yeah hang them out to dry but I don't yeah so so when you're talking don't yeah so so when you're talking don't yeah so so when you're talking about fur gallery you really want to be about fur gallery you really want to be about fur gallery you really want to be tackling the major expenses which are tackling the major expenses which are tackling the major expenses which are your housing your transportation and your housing your transportation and your housing your transportation and your food now there are other expenses your food now there are other expenses your food now there are other expenses at all play into that and add to the at all play into that and add to the at all play into that and add to the value but those are the three major ones value but those are the three major ones value but those are the three major ones and I you've got to get really and I you've got to get really and I you've got to get really industrious about how you handle those industrious about how you handle those industrious about how you handle those three now I want to say that also with three now I want to say that also with three now I want to say that also with frugality the thing about us is that we frugality the thing about us is that we frugality the thing about us is that we have over three decades into this space have over three decades into this space have over three decades into this space of financial independently retired and of financial independently retired and of financial independently retired and we braise the whole family as a lot of we braise the whole family as a lot of we braise the whole family as a lot of our subscribers longtime subscribers our subscribers longtime subscribers our subscribers longtime subscribers already know that some of you new guys already know that some of you new guys already know that some of you new guys might not know and so we raise the whole might not know and so we raise the whole might not know and so we raise the whole fire family on and so I'm making a fire family on and so I'm making a fire family on and so I'm making a distinction between a single guy when distinction between a single guy when distinction between a single guy when you go out there and listen to people you go out there and listen to people you go out there and listen to people and you're and you're and you're the single guy telling you how to be the single guy telling you how to be the single guy telling you how to be frugal that's going to be a whole frugal that's going to be a whole frugal that's going to be a whole different ball game than somebody that's different ball game than somebody that's different ball game than somebody that's had to raise a whole family a wife and had to raise a whole family a wife and had to raise a whole family a wife and three children while at the same time three children while at the same time three children while at the same time being industrious with enough with the being industrious with enough with the being industrious with enough with the Ferg allottee to save money and have a Ferg allottee to save money and have a Ferg allottee to save money and have a balanced life and achieve all these balanced life and achieve all these balanced life and achieve all these goals that we're trying to achieve with goals that we're trying to achieve with goals that we're trying to achieve with this with this idea of what we're doing this with this idea of what we're doing this with this idea of what we're doing you know I mean if if I was to say well you know I mean if if I was to say well you know I mean if if I was to say well let's just play it for instance and turn let's just play it for instance and turn let's just play it for instance and turn the clock back to when I was well the clock back to when I was well the clock back to when I was well it's just me if I want to wear sandals it's just me if I want to wear sandals it's just me if I want to wear sandals made out of old tires it's just me it's made out of old tires it's just me it's made out of old tires it's just me it's not like I'm telling my kids and my wife not like I'm telling my kids and my wife not like I'm telling my kids and my wife we all have to wear these homemade we all have to wear these homemade we all have to wear these homemade sandals out of old tires you see what sandals out of old tires you see what sandals out of old tires you see what I'm saying there's a lot less I'm saying there's a lot less I'm saying there's a lot less accountability when it's just a single accountability when it's just a single accountability when it's just a single person and it's a lot easier when you're person and it's a lot easier when you're person and it's a lot easier when you're a single guy to just live with roommates a single guy to just live with roommates a single guy to just live with roommates or look with mom and dad or whatever you or look with mom and dad or whatever you or look with mom and dad or whatever you know it's gonna be a lot easier to plow know it's gonna be a lot easier to plow know it's gonna be a lot easier to plow everything you make you know into everything you make you know into everything you make you know into investments you know if you're just you investments you know if you're just you investments you know if you're just you just one guy than if you're a person just one guy than if you're a person just one guy than if you're a person that's already married and has to that's already married and has to that's already married and has to support a whole family and so to to have support a whole family and so to to have support a whole family and so to to have yourself go through extreme frugal ism yourself go through extreme frugal ism yourself go through extreme frugal ism is one thing but to have to put your is one thing but to have to put your is one thing but to have to put your family through extreme frugal ISM I family through extreme frugal ISM I family through extreme frugal ISM I think it's a whole different ball game think it's a whole different ball game think it's a whole different ball game and this is I think definitely an area and this is I think definitely an area and this is I think definitely an area where we totally excel because we never where we totally excel because we never where we totally excel because we never practice any extreme kind of frugal ISM practice any extreme kind of frugal ISM practice any extreme kind of frugal ISM which we've talked about in a previous which we've talked about in a previous which we've talked about in a previous video on the contrary you know we video on the contrary you know we video on the contrary you know we developed an industrious frugal ISM developed an industrious frugal ISM developed an industrious frugal ISM where we just had you know because you where we just had you know because you where we just had you know because you got kids they need stuff they you know got kids they need stuff they you know got kids they need stuff they you know and you've got family and you just you and you've got family and you just you and you've got family and you just you know just the whole pictures are totally know just the whole pictures are totally know just the whole pictures are totally different but you're okay no scent about different but you're okay no scent about different but you're okay no scent about that that that so the second leg of the stool is so the second leg of the stool is so the second leg of the stool is investing there's no one way to reach investing there's no one way to reach investing there's no one way to reach the goal of not having to work at a job the goal of not having to work at a job the goal of not having to work at a job you really don't want to be working at you really don't want to be working at you really don't want to be working at and different people achieve at and different people achieve at and different people achieve at different ways and the way they do it is different ways and the way they do it is different ways and the way they do it is by investing neither in the stock market by investing neither in the stock market by investing neither in the stock market or what have you we did it with or what have you we did it with or what have you we did it with micro-enterprise but that's not all we micro-enterprise but that's not all we micro-enterprise but that's not all we did we'll talk about that in a minute did we'll talk about that in a minute did we'll talk about that in a minute but what I want to say about the fire but what I want to say about the fire but what I want to say about the fire community and how some of these ideas community and how some of these ideas community and how some of these ideas are put out is that they they make it are put out is that they they make it are put out is that they they make it sound as if oh just do this and you know sound as if oh just do this and you know sound as if oh just do this and you know that's all you have to do but there's a that's all you have to do but there's a that's all you have to do but there's a whole lot more to it because if it was whole lot more to it because if it was whole lot more to it because if it was that easy everybody would just be that easy everybody would just be that easy everybody would just be investing in everybody would be in our investing in everybody would be in our investing in everybody would be in our nightmares clearly when it comes to nightmares clearly when it comes to nightmares clearly when it comes to investing there's a learning curve and investing there's a learning curve and investing there's a learning curve and you know there's sacrifices I mean it is you know there's sacrifices I mean it is you know there's sacrifices I mean it is a business when you consider that if a business when you consider that if a business when you consider that if you're investing in the stock market you're investing in the stock market you're investing in the stock market really you're you're running a personal really you're you're running a personal really you're you're running a personal stock market investment business and if stock market investment business and if stock market investment business and if you in real estate you're running a you in real estate you're running a you in real estate you're running a small investment company or large or small investment company or large or small investment company or large or however big you want it and so whatever however big you want it and so whatever however big you want it and so whatever you're doing you are running some kind you're doing you are running some kind you're doing you are running some kind of an enterprise and that requires a of an enterprise and that requires a of an enterprise and that requires a learning curve and it requires time you learning curve and it requires time you learning curve and it requires time you know it's just that people are already know it's just that people are already know it's just that people are already the whole goal in the whole idea it the whole goal in the whole idea it the whole goal in the whole idea it seems to meet counterintuitive to the seems to meet counterintuitive to the seems to meet counterintuitive to the idea because you're just adding more idea because you're just adding more idea because you're just adding more time to your schedule that you're going time to your schedule that you're going time to your schedule that you're going to have to be working in addition to to have to be working in addition to to have to be working in addition to your full time job so what they're being your full time job so what they're being your full time job so what they're being told is yeah you've got a full time job told is yeah you've got a full time job told is yeah you've got a full time job that you want to be able to have the that you want to be able to have the that you want to be able to have the option to not have to have a future option to not have to have a future option to not have to have a future point a point in the future but in the point a point in the future but in the point a point in the future but in the meantime you keep your full-time job but meantime you keep your full-time job but meantime you keep your full-time job but at the same time you know you need to be at the same time you know you need to be at the same time you know you need to be running these businesses now I running these businesses now I running these businesses now I understand that when you're talking understand that when you're talking understand that when you're talking about investing in the index funds that about investing in the index funds that about investing in the index funds that really doesn't take a whole lot of time really doesn't take a whole lot of time really doesn't take a whole lot of time and effort and study other than and effort and study other than and effort and study other than initially understanding what you're initially understanding what you're initially understanding what you're getting into but there is a drawback to getting into but there is a drawback to getting into but there is a drawback to that because a lot of people don't that because a lot of people don't that because a lot of people don't really have and this is something that really have and this is something that really have and this is something that people there isn't discussed when you people there isn't discussed when you people there isn't discussed when you listen to the material online about the listen to the material online about the listen to the material online about the subject is that really the majority I subject is that really the majority I subject is that really the majority I would say a great number of people do would say a great number of people do would say a great number of people do not have the emotional makeup to not have the emotional makeup to not have the emotional makeup to withstand % crashes in the stock withstand % crashes in the stock withstand % crashes in the stock market market market so it's so it's a so while you have a so it's so it's a so while you have a so it's so it's a so while you have a plus on this side over here that says plus on this side over here that says plus on this side over here that says well no this won't take any time I'll well no this won't take any time I'll well no this won't take any time I'll just buy index funds every time I got just buy index funds every time I got just buy index funds every time I got extra money every month but on the other extra money every month but on the other extra money every month but on the other side of that coin are you going to be side of that coin are you going to be side of that coin are you going to be able to stomach % draw downs you know able to stomach % draw downs you know able to stomach % draw downs you know especially if you've been scraping and especially if you've been scraping and especially if you've been scraping and working hard and saving and doing side working hard and saving and doing side working hard and saving and doing side hustles and working hours a day and hustles and working hours a day and hustles and working hours a day and putting aside your life which is a lot putting aside your life which is a lot putting aside your life which is a lot easier said as it done as a single easier said as it done as a single easier said as it done as a single person Dan then a person that you know person Dan then a person that you know person Dan then a person that you know and then at the same time have have to and then at the same time have have to and then at the same time have have to go through a % drawdown in the stock go through a % drawdown in the stock go through a % drawdown in the stock market which admittedly there's a lot of market which admittedly there's a lot of market which admittedly there's a lot of people in the community that haven't had people in the community that haven't had people in the community that haven't had to go through that on the other hand you to go through that on the other hand you to go through that on the other hand you know it's just one thing to consider know it's just one thing to consider know it's just one thing to consider because everybody's personal because everybody's personal because everybody's personal circumstances are different and so if circumstances are different and so if circumstances are different and so if someone for example in the fat buyer someone for example in the fat buyer someone for example in the fat buyer which just means people with much higher which just means people with much higher which just means people with much higher salaries in general if they get a % salaries in general if they get a % salaries in general if they get a % drop out they've got so much salary drop out they've got so much salary drop out they've got so much salary coming in that they may have more coming in that they may have more coming in that they may have more fortitude with that kind of a drawdown fortitude with that kind of a drawdown fortitude with that kind of a drawdown so so as far as investing in the stock so so as far as investing in the stock so so as far as investing in the stock market you've got issues with % draw market you've got issues with % draw market you've got issues with % draw downs and that depends on your downs and that depends on your downs and that depends on your particular financial circumstances particular financial circumstances particular financial circumstances whether that's going to be emotionally whether that's going to be emotionally whether that's going to be emotionally palatable or not you know and then palatable or not you know and then palatable or not you know and then you've got issues with real estate where you've got issues with real estate where you've got issues with real estate where you know you can't really make it sound you know you can't really make it sound you know you can't really make it sound like oh gee all you have to do is buy like oh gee all you have to do is buy like oh gee all you have to do is buy this property and you're done I mean you this property and you're done I mean you this property and you're done I mean you know you're gonna have tenants to deal know you're gonna have tenants to deal know you're gonna have tenants to deal with repairs and you know all those with repairs and you know all those with repairs and you know all those things so and then the third leg of the things so and then the third leg of the things so and then the third leg of the stool is making more money this is part stool is making more money this is part stool is making more money this is part of this teaching in this you know into of this teaching in this you know into of this teaching in this you know into space is that you already have a space is that you already have a space is that you already have a full-time job and yet now you've got to full-time job and yet now you've got to full-time job and yet now you've got to add side hustles to it you know side add side hustles to it you know side add side hustles to it you know side hustles plus a full time job and again hustles plus a full time job and again hustles plus a full time job and again you know it depends on who you're you know it depends on who you're you know it depends on who you're listening to if you're a single guy listening to if you're a single guy listening to if you're a single guy you're you're just starting out and you're you're just starting out and you're you're just starting out and you know you want to do a double-take you know you want to do a double-take you know you want to do a double-take great you know you you know what great you know you you know what great you know you you know what sacrifices you're making for yourself sacrifices you're making for yourself sacrifices you're making for yourself but again if you're someone that's but again if you're someone that's but again if you're someone that's already married and has children already married and has children already married and has children adding side hustles to a full time job adding side hustles to a full time job adding side hustles to a full time job to me just isn't really to have a life to me just isn't really to have a life to me just isn't really to have a life plan and I think a lot of people get plan and I think a lot of people get plan and I think a lot of people get discouraged with with the community discouraged with with the community discouraged with with the community because of what's being taught in the because of what's being taught in the because of what's being taught in the community and so what did we do well we community and so what did we do well we community and so what did we do well we use the two prong approach that gave us use the two prong approach that gave us use the two prong approach that gave us the solution we wanted from now in the the solution we wanted from now in the the solution we wanted from now in the present moment as opposed to a there's present moment as opposed to a there's present moment as opposed to a there's nothing wrong with sacrifice you know I nothing wrong with sacrifice you know I nothing wrong with sacrifice you know I believe in making sacrifices and doing a believe in making sacrifices and doing a believe in making sacrifices and doing a double-take it's just that the issue is double-take it's just that the issue is double-take it's just that the issue is with the how it's done in the details with the how it's done in the details with the how it's done in the details with the the length of time you know and with the the length of time you know and with the the length of time you know and the details of it so what we did is we the details of it so what we did is we the details of it so what we did is we use the two problems approach of use the two problems approach of use the two problems approach of specialized at just a professional specialized at just a professional specialized at just a professional industrious formality coupled with the industrious formality coupled with the industrious formality coupled with the micro-enterprise idea and you know one micro-enterprise idea and you know one micro-enterprise idea and you know one of the prongs on its own wouldn't have of the prongs on its own wouldn't have of the prongs on its own wouldn't have been enough to give us the life we been enough to give us the life we been enough to give us the life we wanted that we've had as a family now wanted that we've had as a family now wanted that we've had as a family now which is the rewards that is promised in which is the rewards that is promised in which is the rewards that is promised in the fire community if they do all three the fire community if they do all three the fire community if they do all three of the legs of the stool the way that of the legs of the stool the way that of the legs of the stool the way that we've been discussing so what we're we've been discussing so what we're we've been discussing so what we're talking about is that we can achieve talking about is that we can achieve talking about is that we can achieve those results that the fire community those results that the fire community those results that the fire community wants at a later date by doing all of wants at a later date by doing all of wants at a later date by doing all of these sacrifices that do cost you and these sacrifices that do cost you and these sacrifices that do cost you and all these other areas of your life and all these other areas of your life and all these other areas of your life and you know just one of those prongs would you know just one of those prongs would you know just one of those prongs would not have been enough so it has to be it not have been enough so it has to be it not have been enough so it has to be it has to be both prongs together you know has to be both prongs together you know has to be both prongs together you know it's like peanut butter and jelly it's like peanut butter and jelly it's like peanut butter and jelly sandwich has to have the peanut butter sandwich has to have the peanut butter sandwich has to have the peanut butter has to have the jelly and in order to has to have the jelly and in order to has to have the jelly and in order to have your best life now you have to have have your best life now you have to have have your best life now you have to have both prongs you have to have you know both prongs you have to have you know both prongs you have to have you know what we call micro-enterprise and what we call micro-enterprise and what we call micro-enterprise and industries' cruelty and those two industries' cruelty and those two industries' cruelty and those two together work excellent and it's what together work excellent and it's what together work excellent and it's what we've been doing through the for over we've been doing through the for over we've been doing through the for over years yeah and when we talk about years yeah and when we talk about years yeah and when we talk about micro-enterprise micro-enterprise micro-enterprise clearly if you can have micro enterprise clearly if you can have micro enterprise clearly if you can have micro enterprise that is on that is on that is on the Internet it's desirable because your the Internet it's desirable because your the Internet it's desirable because your location-independent but actually we location-independent but actually we location-independent but actually we spent two-thirds of our fire in the spent two-thirds of our fire in the spent two-thirds of our fire in the States States States way before the before the internet it's way before the before the internet it's way before the before the internet it's not exclusive to internet not exclusive to internet not exclusive to internet micro-enterprise micro-enterprise micro-enterprise you know for two-thirds of our period you know for two-thirds of our period you know for two-thirds of our period that we were fired that we were fired that we were fired we were offline our activities were we were offline our activities were we were offline our activities were offline only one-third or less actually offline only one-third or less actually offline only one-third or less actually because we've been abroad eight years because we've been abroad eight years because we've been abroad eight years yeah it has been you know like live and yeah it has been you know like live and yeah it has been you know like live and stuff so I don't want people to think stuff so I don't want people to think stuff so I don't want people to think that they have to learn internet things that they have to learn internet things that they have to learn internet things that that's not where they are although that that's not where they are although that that's not where they are although learning new skills is part of what learning new skills is part of what learning new skills is part of what allows you to have the quality of life allows you to have the quality of life allows you to have the quality of life that you want as soon as possible and we that you want as soon as possible and we that you want as soon as possible and we say right now you know I mean you've got say right now you know I mean you've got say right now you know I mean you've got people that say well if you're not on people that say well if you're not on people that say well if you're not on social security or whatever you're not social security or whatever you're not social security or whatever you're not retired you know well that that's a retired you know well that that's a retired you know well that that's a pretty narrow definition so you know if pretty narrow definition so you know if pretty narrow definition so you know if you've got it you've got a lot of you've got it you've got a lot of you've got it you've got a lot of studying to do because there's an awful studying to do because there's an awful studying to do because there's an awful lot of people almost everybody I listen lot of people almost everybody I listen lot of people almost everybody I listen to in this space is working and on top to in this space is working and on top to in this space is working and on top of that a lot of the people are working of that a lot of the people are working of that a lot of the people are working full-time in other words they're not full-time in other words they're not full-time in other words they're not there yet and even though some of them there yet and even though some of them there yet and even though some of them say they have a certain amount of money say they have a certain amount of money say they have a certain amount of money which you would think it's enough money which you would think it's enough money which you would think it's enough money like hey I'm a millionaire and I'm in my like hey I'm a millionaire and I'm in my like hey I'm a millionaire and I'm in my s it isn't necessary we were never s it isn't necessary we were never s it isn't necessary we were never millionaires and we aren't millionaires millionaires and we aren't millionaires millionaires and we aren't millionaires now and yet we fired in our s so I now and yet we fired in our s so I now and yet we fired in our s so I understand the desirability the understand the desirability the understand the desirability the attractiveness of listening to someone attractiveness of listening to someone attractiveness of listening to someone that is young and is a millionaire you that is young and is a millionaire you that is young and is a millionaire you know I'm in my mid-s I'm just thirty know I'm in my mid-s I'm just thirty know I'm in my mid-s I'm just thirty look at all the fancy cars and look at look at all the fancy cars and look at look at all the fancy cars and look at all the money I make but that's really all the money I make but that's really all the money I make but that's really not fire to me to me anyway that is only not fire to me to me anyway that is only not fire to me to me anyway that is only one just tip of the iceberg in this one just tip of the iceberg in this one just tip of the iceberg in this space because really the result that the space because really the result that the space because really the result that the fire community wants there's the result fire community wants there's the result fire community wants there's the result that I think it seems to me that they that I think it seems to me that they that I think it seems to me that they think they want and the real results think they want and the real results think they want and the real results that come from that come from that come from of experience and knowledge and wisdom of experience and knowledge and wisdom of experience and knowledge and wisdom meaning that it may sound attractive meaning that it may sound attractive meaning that it may sound attractive that you know to be a millionaire and be that you know to be a millionaire and be that you know to be a millionaire and be young and I'm not saying it isn't but young and I'm not saying it isn't but young and I'm not saying it isn't but for most people that's not going to be for most people that's not going to be for most people that's not going to be attainable attainable attainable you know they not being negative they you know they not being negative they you know they not being negative they just it's just fact of life and it isn't just it's just fact of life and it isn't just it's just fact of life and it isn't necessary that's what we're saying it is necessary that's what we're saying it is necessary that's what we're saying it is not necessary I think that's a really not necessary I think that's a really not necessary I think that's a really important distinction to be made in this important distinction to be made in this important distinction to be made in this space I think that it's encouraging to a space I think that it's encouraging to a space I think that it's encouraging to a lot of young people because I think it's lot of young people because I think it's lot of young people because I think it's misleading to make it sound like it's misleading to make it sound like it's misleading to make it sound like it's super easy to just get out there and do super easy to just get out there and do super easy to just get out there and do what I did and you're gonna become a what I did and you're gonna become a what I did and you're gonna become a millionaire and therefore you'll be millionaire and therefore you'll be millionaire and therefore you'll be fired fired fired you'll be financially independent or you'll be financially independent or you'll be financially independent or retired or whatever it's a good goal to retired or whatever it's a good goal to retired or whatever it's a good goal to aspire to but you've got all of these aspire to but you've got all of these aspire to but you've got all of these issues that we just discussed so with issues that we just discussed so with issues that we just discussed so with that if anything is resonated in this that if anything is resonated in this that if anything is resonated in this video join our Facebook group that is video join our Facebook group that is video join our Facebook group that is related to this subject and also if you related to this subject and also if you related to this subject and also if you liked the video you know what to do liked the video you know what to do liked the video you know what to do angioma thumb and thanks for listening angioma thumb and thanks for listening angioma thumb and thanks for listening ya have a nice day WEBVTT Kind: captions Language: en most people see early retirement as most people see early retirement as most people see early retirement as something something something you reach when you're after working you reach when you're after working you reach when you're after working the best part of every day for the best the best part of every day for the best the best part of every day for the best years of your life years of your life years of your life at a job that you're probably not at a job that you're probably not at a job that you're probably not thrilled about and then you finally thrilled about and then you finally thrilled about and then you finally get to enjoy the fruits of your labor on get to enjoy the fruits of your labor on get to enjoy the fruits of your labor on this other hand there's this idea this other hand there's this idea this other hand there's this idea of the fire movement and early of the fire movement and early of the fire movement and early retirement and how people by living retirement and how people by living retirement and how people by living frugally earning more and then investing frugally earning more and then investing frugally earning more and then investing can retire in their s s or s can retire in their s s or s can retire in their s s or s and then you'll be able to live the life and then you'll be able to live the life and then you'll be able to live the life you want and have freedom you want and have freedom you want and have freedom and for about the past five years that and for about the past five years that and for about the past five years that has been my goal is to retire has been my goal is to retire has been my goal is to retire by . but over the past year and by . but over the past year and by . but over the past year and especially a couple months i've been especially a couple months i've been especially a couple months i've been wondering should this wondering should this wondering should this actually be my goal and if not what actually be my goal and if not what actually be my goal and if not what should be should be should be a lot of us have kind of looked at early a lot of us have kind of looked at early a lot of us have kind of looked at early retirement as once we reach retirement as once we reach retirement as once we reach this level of wealth this much money in this level of wealth this much money in this level of wealth this much money in the bank this much the bank this much the bank this much you know whatever we'll reach this goal you know whatever we'll reach this goal you know whatever we'll reach this goal and then we'll be happy then we'll get and then we'll be happy then we'll get and then we'll be happy then we'll get to live this lifestyle to live this lifestyle to live this lifestyle uh then you know we will find happiness uh then you know we will find happiness uh then you know we will find happiness and that just doesn't seem to be the and that just doesn't seem to be the and that just doesn't seem to be the case case case most people who go after early most people who go after early most people who go after early retirement it ends up taking anywhere retirement it ends up taking anywhere retirement it ends up taking anywhere from five to ten to twenty years from five to ten to twenty years from five to ten to twenty years to get enough money and to get in that to get enough money and to get in that to get enough money and to get in that position where they feel like they can position where they feel like they can position where they feel like they can quit their job and live that lifestyle quit their job and live that lifestyle quit their job and live that lifestyle i've kind of taken a different approach i've kind of taken a different approach i've kind of taken a different approach to it where to it where to it where instead of going for early retirement i instead of going for early retirement i instead of going for early retirement i went for how can i have that lifestyle went for how can i have that lifestyle went for how can i have that lifestyle that i want that i want that i want in the next one to three years instead in the next one to three years instead in the next one to three years instead of the next you know years of the next you know years of the next you know years so my original goal that i made when i so my original goal that i made when i so my original goal that i made when i was like was to was like was to was like was to retire by and instead of doing that i retire by and instead of doing that i retire by and instead of doing that i ended up quitting my job at ended up quitting my job at ended up quitting my job at but i'm not like officially retired i but i'm not like officially retired i but i'm not like officially retired i kind of went for that lifestyle design kind of went for that lifestyle design kind of went for that lifestyle design instead turns out being you know retired instead turns out being you know retired instead turns out being you know retired is incredibly boring and if you're that is incredibly boring and if you're that is incredibly boring and if you're that type of driven person type of driven person type of driven person who has gotten yourself in a financial who has gotten yourself in a financial who has gotten yourself in a financial position that you have enough money to position that you have enough money to position that you have enough money to kind of do whatever you want every day kind of do whatever you want every day kind of do whatever you want every day you're going to want to feel productive you're going to want to feel productive you're going to want to feel productive you're going gonna wake up and say what you're going gonna wake up and say what you're going gonna wake up and say what can i do with this day to make an impact can i do with this day to make an impact can i do with this day to make an impact on other people to make an impact in the on other people to make an impact in the on other people to make an impact in the world to make myself better whatever world to make myself better whatever world to make myself better whatever your goals are your goals are your goals are and hanging out at the beach kind of and hanging out at the beach kind of and hanging out at the beach kind of like it only goes so far like little ice like it only goes so far like little ice like it only goes so far like little ice cream is good cream is good cream is good a lot of it gives you a headache and a lot of it gives you a headache and a lot of it gives you a headache and makes you fat so i do want to thrive makes you fat so i do want to thrive makes you fat so i do want to thrive and not just kind of survive so that i and not just kind of survive so that i and not just kind of survive so that i can you know do can you know do can you know do more stuff in life and help more people more stuff in life and help more people more stuff in life and help more people and all that type of stuff so instead of and all that type of stuff so instead of and all that type of stuff so instead of looking for looking for looking for retirement it's looking for something retirement it's looking for something retirement it's looking for something that covers that covers that covers your expenses and can be done remotely your expenses and can be done remotely your expenses and can be done remotely and probably just a few hours a week or and probably just a few hours a week or and probably just a few hours a week or a few hours a day at least that is my a few hours a day at least that is my a few hours a day at least that is my goal and it might take a few years to goal and it might take a few years to goal and it might take a few years to build up whatever build up whatever build up whatever that business is but i think it's that business is but i think it's that business is but i think it's important to have something to do important to have something to do important to have something to do once you do leave your day job because once you do leave your day job because once you do leave your day job because otherwise you otherwise you otherwise you play a lot of video games so this is play a lot of video games so this is play a lot of video games so this is where the principle comes in what where the principle comes in what where the principle comes in what of your work leads to of the of your work leads to of the of your work leads to of the reward and can you just do that twenty reward and can you just do that twenty reward and can you just do that twenty percent and be okay with instead of percent and be okay with instead of percent and be okay with instead of making a hundred thousand dollars a year making a hundred thousand dollars a year making a hundred thousand dollars a year you make eighty thousand dollars a year you make eighty thousand dollars a year you make eighty thousand dollars a year or instead of making fifty thousand or instead of making fifty thousand or instead of making fifty thousand dollars a year dollars a year dollars a year you make whatever eighty percent of you make whatever eighty percent of you make whatever eighty percent of fifty thousand is probably fifty thousand is probably fifty thousand is probably probably thirty forty forty thousand probably thirty forty forty thousand probably thirty forty forty thousand a year i was told there would be no math a year i was told there would be no math a year i was told there would be no math so that's been something that i've been so that's been something that i've been so that's been something that i've been really looking for it's like what is really looking for it's like what is really looking for it's like what is that that that what is that that i can do i'm okay what is that that i can do i'm okay what is that that i can do i'm okay with like missing out a little money on with like missing out a little money on with like missing out a little money on the back end if i can the back end if i can the back end if i can really narrow down and free up a ton of really narrow down and free up a ton of really narrow down and free up a ton of time in my life time in my life time in my life i'm okay with earning a little bit less i'm okay with earning a little bit less i'm okay with earning a little bit less this is where lifestyle design comes in this is where lifestyle design comes in this is where lifestyle design comes in you can actually kind of you can actually kind of you can actually kind of shave maybe half the years off if you shave maybe half the years off if you shave maybe half the years off if you think you're years away think you're years away think you're years away you can probably shave it down to five you can probably shave it down to five you can probably shave it down to five years or three years or one year years or three years or one year years or three years or one year just by designing your lifestyle around just by designing your lifestyle around just by designing your lifestyle around that and asking how important is it to that and asking how important is it to that and asking how important is it to you you you to get out of that job probably the to get out of that job probably the to get out of that job probably the first step of that lifestyle design if first step of that lifestyle design if first step of that lifestyle design if you're looking for that you know that you're looking for that you know that you're looking for that you know that digital nomad digital nomad digital nomad freedom type of lifestyle is to find a freedom type of lifestyle is to find a freedom type of lifestyle is to find a passion something that you really enjoy passion something that you really enjoy passion something that you really enjoy doing for me it was youtube doing for me it was youtube doing for me it was youtube and start building that right away start and start building that right away start and start building that right away start building that business that can generate building that business that can generate building that business that can generate a little bit of income for you a little bit of income for you a little bit of income for you and then you can do other things like and then you can do other things like and then you can do other things like geo arbitrage to kind of force things to geo arbitrage to kind of force things to geo arbitrage to kind of force things to happen happen happen faster obviously this isn't for everyone faster obviously this isn't for everyone faster obviously this isn't for everyone but if you were serious about leaving but if you were serious about leaving but if you were serious about leaving your job and kind of making it happen your job and kind of making it happen your job and kind of making it happen right now right now right now you can move to a place that maybe the you can move to a place that maybe the you can move to a place that maybe the living expenses are a third of where you living expenses are a third of where you living expenses are a third of where you are whether that's moving across the are whether that's moving across the are whether that's moving across the country or moving to a different country country or moving to a different country country or moving to a different country for six months or a year or five years for six months or a year or five years for six months or a year or five years you can move places where the cost of you can move places where the cost of you can move places where the cost of living living living could be a quarter or a tenth of where could be a quarter or a tenth of where could be a quarter or a tenth of where you are you are you are now and it might be a really cool now and it might be a really cool now and it might be a really cool experience as well i kind of want to experience as well i kind of want to experience as well i kind of want to move to mexico for that reason i think move to mexico for that reason i think move to mexico for that reason i think it'd be really cool experience but it'd be really cool experience but it'd be really cool experience but trying to get my wife on board obviously trying to get my wife on board obviously trying to get my wife on board obviously not everybody wants to move but you can not everybody wants to move but you can not everybody wants to move but you can do do do other things to kind of force this to other things to kind of force this to other things to kind of force this to happen and you have to be serious about happen and you have to be serious about happen and you have to be serious about it it takes it it takes it it takes big drastic steps in order to have this big drastic steps in order to have this big drastic steps in order to have this lifestyle that's kind of crazy to other lifestyle that's kind of crazy to other lifestyle that's kind of crazy to other people people people you do things like house hacking which you do things like house hacking which you do things like house hacking which i've done just completely eliminate your i've done just completely eliminate your i've done just completely eliminate your housing expenses housing expenses housing expenses i've done multiple videos on that you i've done multiple videos on that you i've done multiple videos on that you can check that out you can do crazy can check that out you can do crazy can check that out you can do crazy things things things like really cut back your expenses get like really cut back your expenses get like really cut back your expenses get older phones don't go out to eat get rid older phones don't go out to eat get rid older phones don't go out to eat get rid of your car of your car of your car do things like that move closer to work do things like that move closer to work do things like that move closer to work or nowadays you just or nowadays you just or nowadays you just work from home and really save up a lot work from home and really save up a lot work from home and really save up a lot of money for a year or two and start a of money for a year or two and start a of money for a year or two and start a business and do those type of things business and do those type of things business and do those type of things so that you can force it to happen so that you can force it to happen so that you can force it to happen faster so sometimes it can really be faster so sometimes it can really be faster so sometimes it can really be about absolute income as opposed to about absolute income as opposed to about absolute income as opposed to relative relative relative income sometimes actually earning less income sometimes actually earning less income sometimes actually earning less can be more if you're can be more if you're can be more if you're spending you know a month grand spending you know a month grand spending you know a month grand a year a year a year and you're making grand a year that and you're making grand a year that and you're making grand a year that could actually could actually could actually be more money than somebody who's making be more money than somebody who's making be more money than somebody who's making a hundred thousand dollars a year or two a hundred thousand dollars a year or two a hundred thousand dollars a year or two hundred thousand dollars a year hundred thousand dollars a year hundred thousand dollars a year but they've let lifestyle inflation but they've let lifestyle inflation but they've let lifestyle inflation catch up with them so they're spending catch up with them so they're spending catch up with them so they're spending exactly what they're making even though exactly what they're making even though exactly what they're making even though they're at a much higher level they're at a much higher level they're at a much higher level that's just not something that really that's just not something that really that's just not something that really interests me at all is to make this huge interests me at all is to make this huge interests me at all is to make this huge amount of money but then also have like amount of money but then also have like amount of money but then also have like all these other crazy things all these other crazy things all these other crazy things that make you stuck to that job so if that make you stuck to that job so if that make you stuck to that job so if early retirement is not the goal early retirement is not the goal early retirement is not the goal then what should be it's going to be then what should be it's going to be then what should be it's going to be different for each person different for each person different for each person in each circumstance but i'm going to in each circumstance but i'm going to in each circumstance but i'm going to let you know kind of what it is for me let you know kind of what it is for me let you know kind of what it is for me and how and how and how it's kind of shifted and continues to it's kind of shifted and continues to it's kind of shifted and continues to evolve evolve evolve first of all i had to find out a job or first of all i had to find out a job or first of all i had to find out a job or something that generated little income something that generated little income something that generated little income that that that met some certain parameters first of all met some certain parameters first of all met some certain parameters first of all it was portable i could do it from it was portable i could do it from it was portable i could do it from anywhere anywhere anywhere this would give me an immense amount of this would give me an immense amount of this would give me an immense amount of freedom second it was something that i freedom second it was something that i freedom second it was something that i really wanted to be really wanted to be really wanted to be scalable and that's something that i scalable and that's something that i scalable and that's something that i like about youtube if this continues like about youtube if this continues like about youtube if this continues for at least a couple more years for at least a couple more years for at least a couple more years hopefully it should continue to grow hopefully it should continue to grow hopefully it should continue to grow over time and i can kind of control that over time and i can kind of control that over time and i can kind of control that a little bit by putting out more a little bit by putting out more a little bit by putting out more content if i want to or less if i don't content if i want to or less if i don't content if i want to or less if i don't want to it's completely up to me want to it's completely up to me want to it's completely up to me but if it wasn't this then i would have but if it wasn't this then i would have but if it wasn't this then i would have tried to start some type of business tried to start some type of business tried to start some type of business that was that was that was scalable and maybe that's not for scalable and maybe that's not for scalable and maybe that's not for everybody maybe you just want to have everybody maybe you just want to have everybody maybe you just want to have some type of freelancing work that you some type of freelancing work that you some type of freelancing work that you do that you can do from anywhere but for do that you can do from anywhere but for do that you can do from anywhere but for me it was finding that me it was finding that me it was finding that and then really the most important was and then really the most important was and then really the most important was finding something that i felt finding something that i felt finding something that i felt made an impact on other people's life made an impact on other people's life made an impact on other people's life even if i didn't even if i didn't even if i didn't really enjoy doing it i want to feel really enjoy doing it i want to feel really enjoy doing it i want to feel like each day when i wake up i'm like each day when i wake up i'm like each day when i wake up i'm excited about what i'm going to do excited about what i'm going to do excited about what i'm going to do because that's going to help me stick because that's going to help me stick because that's going to help me stick with it more with it more with it more it's something that i think makes me a it's something that i think makes me a it's something that i think makes me a better person and then also other people better person and then also other people better person and then also other people a better person it's somewhere where i a better person it's somewhere where i a better person it's somewhere where i can grow and continue to learn and push can grow and continue to learn and push can grow and continue to learn and push myself myself myself something that i can express creativity something that i can express creativity something that i can express creativity with so those are all things that you with so those are all things that you with so those are all things that you can kind of look for and ask those can kind of look for and ask those can kind of look for and ask those questions questions questions of yourself of like what do you want of yourself of like what do you want of yourself of like what do you want that thing to be what do you want your that thing to be what do you want your that thing to be what do you want your life to look like life to look like life to look like and then start trying to find out you and then start trying to find out you and then start trying to find out you know those things of what it could be know those things of what it could be know those things of what it could be that's why i tried personal training that's why i tried personal training that's why i tried personal training because i really liked fitness and because i really liked fitness and because i really liked fitness and you know like those other things but it you know like those other things but it you know like those other things but it didn't work out and i tried like a bunch didn't work out and i tried like a bunch didn't work out and i tried like a bunch of different jobs of different jobs of different jobs and none of them really felt like they and none of them really felt like they and none of them really felt like they fit but you know i was working fit but you know i was working fit but you know i was working two jobs while i was trying all those two jobs while i was trying all those two jobs while i was trying all those things so i think it's really the art of things so i think it's really the art of things so i think it's really the art of the side hustle turning into your main the side hustle turning into your main the side hustle turning into your main thing thing thing and that's where you can kind of reach and that's where you can kind of reach and that's where you can kind of reach freedom so it might be you know nights freedom so it might be you know nights freedom so it might be you know nights and weekends of trying these different and weekends of trying these different and weekends of trying these different little things little things little things starting a business and you know that's starting a business and you know that's starting a business and you know that's kind of the path that i went kind of the path that i went kind of the path that i went and i think that's a great way to kind and i think that's a great way to kind and i think that's a great way to kind of side hustle your way of side hustle your way of side hustle your way to freedom which i think what my goal is to freedom which i think what my goal is to freedom which i think what my goal is and what it really should be it's going and what it really should be it's going and what it really should be it's going to be different for everybody to be different for everybody to be different for everybody but i don't want to have you know a but i don't want to have you know a but i don't want to have you know a helicopter and a mansion and like helicopter and a mansion and like helicopter and a mansion and like i don't want like all that chronic crazy i don't want like all that chronic crazy i don't want like all that chronic crazy stuff i really stuff i really stuff i really want freedom it's the freedom to work want freedom it's the freedom to work want freedom it's the freedom to work where and when where and when where and when i want to it's the freedom um to kind of i want to it's the freedom um to kind of i want to it's the freedom um to kind of say no to whatever i want to if somebody say no to whatever i want to if somebody say no to whatever i want to if somebody offers you a hundred thousand dollars to offers you a hundred thousand dollars to offers you a hundred thousand dollars to do something you really don't want to do do something you really don't want to do do something you really don't want to do it you have the freedom to say no it you have the freedom to say no it you have the freedom to say no i have no interest in that and it's not i have no interest in that and it's not i have no interest in that and it's not going to hurt you financially going to hurt you financially going to hurt you financially if you want to quit your job and you if you want to quit your job and you if you want to quit your job and you know move somewhere else or know move somewhere else or know move somewhere else or stop doing it and try something else and stop doing it and try something else and stop doing it and try something else and you have that financial freedom to kind you have that financial freedom to kind you have that financial freedom to kind of do of do of do you know what you want to do in your own you know what you want to do in your own you know what you want to do in your own life and it's really hard to get there life and it's really hard to get there life and it's really hard to get there but i think that's a good goal to get but i think that's a good goal to get but i think that's a good goal to get towards the freedom to be able to donate towards the freedom to be able to donate towards the freedom to be able to donate money or time and be able to help people money or time and be able to help people money or time and be able to help people i think the average i think the average i think the average like american income donates about three like american income donates about three like american income donates about three to five percent of their income to five percent of their income to five percent of their income which if if you look at it like even the which if if you look at it like even the which if if you look at it like even the people who are in poverty in america people who are in poverty in america people who are in poverty in america uh you know have it way better than a uh you know have it way better than a uh you know have it way better than a ton of other people in the world so i ton of other people in the world so i ton of other people in the world so i don't want my life to really change if don't want my life to really change if don't want my life to really change if i'm making i'm making i'm making twenty thousand dollars a year or two twenty thousand dollars a year or two twenty thousand dollars a year or two hundred thousand dollars a year i don't hundred thousand dollars a year i don't hundred thousand dollars a year i don't want my lifestyle to change all that want my lifestyle to change all that want my lifestyle to change all that much much much but i want to take that money and be but i want to take that money and be but i want to take that money and be able to help people with it but i able to help people with it but i able to help people with it but i think that we shouldn't wait until we're think that we shouldn't wait until we're think that we shouldn't wait until we're millionaires or have a lot of money millionaires or have a lot of money millionaires or have a lot of money um or are in a great financial position um or are in a great financial position um or are in a great financial position to start giving that we should start to start giving that we should start to start giving that we should start giving giving giving first and really that can kind of help first and really that can kind of help first and really that can kind of help disassociate ourselves disassociate ourselves disassociate ourselves with money as much and lean more towards with money as much and lean more towards with money as much and lean more towards people people people so thank you guys for watching if you so thank you guys for watching if you so thank you guys for watching if you enjoy this feel free to hit the little enjoy this feel free to hit the little enjoy this feel free to hit the little bell bell bell thing i'm a jig so you can get notified thing i'm a jig so you can get notified thing i'm a jig so you can get notified each time i post each time i post each time i post a new video which i do once a week and i a new video which i do once a week and i a new video which i do once a week and i try to make sure it's really good video try to make sure it's really good video try to make sure it's really good video so hope you guys enjoyed this drop a so hope you guys enjoyed this drop a so hope you guys enjoyed this drop a like if you did like if you did like if you did peace i'm so hungry WEBVTT Kind: captions Language: en hey guys it's a mom and Kristina from hey guys it's a mom and Kristina from hey guys it's a mom and Kristina from average journey so have you ever heard average journey so have you ever heard average journey so have you ever heard of Yolo I'm sure you have it's you only of Yolo I'm sure you have it's you only of Yolo I'm sure you have it's you only live once and it is this concept of live once and it is this concept of live once and it is this concept of living life to the fullest and so you go living life to the fullest and so you go living life to the fullest and so you go out and you just have a good time out and you just have a good time out and you just have a good time you Yolo well we have a problem with you Yolo well we have a problem with you Yolo well we have a problem with Yolo because for us Yolo actually means Yolo because for us Yolo actually means Yolo because for us Yolo actually means something completely different it means something completely different it means something completely different it means the opposite it means making short-term the opposite it means making short-term the opposite it means making short-term decisions that have long-term decisions that have long-term decisions that have long-term consequences and today we want to turn consequences and today we want to turn consequences and today we want to turn that concept on its head that concept on its head that concept on its head so with Yolo what you do is you make so with Yolo what you do is you make so with Yolo what you do is you make immediate financial decisions but they immediate financial decisions but they immediate financial decisions but they have very long-term consequences so you have very long-term consequences so you have very long-term consequences so you buy that fancy car because who knows you buy that fancy car because who knows you buy that fancy car because who knows you could drop dead tomorrow and at least could drop dead tomorrow and at least could drop dead tomorrow and at least have a day of enjoying a fancy car or have a day of enjoying a fancy car or have a day of enjoying a fancy car or you buy this really luxury expensive you buy this really luxury expensive you buy this really luxury expensive house because again you could drop dead house because again you could drop dead house because again you could drop dead in a year and at least you have a year in a year and at least you have a year in a year and at least you have a year to enjoy that home but this idea that to enjoy that home but this idea that to enjoy that home but this idea that you could die tomorrow for most people you could die tomorrow for most people you could die tomorrow for most people this does not happen but I guarantee you this does not happen but I guarantee you this does not happen but I guarantee you there are more people living like they there are more people living like they there are more people living like they are gonna die tomorrow then that are gonna die tomorrow then that are gonna die tomorrow then that actually died tomorrow so how many actually died tomorrow so how many actually died tomorrow so how many people are out there right now then made people are out there right now then made people are out there right now then made a financial decision from a Yolo a financial decision from a Yolo a financial decision from a Yolo standpoint but are living with it for standpoint but are living with it for standpoint but are living with it for years and years to come years and years to come years and years to come in fact for decades to come so we don't in fact for decades to come so we don't in fact for decades to come so we don't really have a number but I'm guessing really have a number but I'm guessing really have a number but I'm guessing there's people out there that have made there's people out there that have made there's people out there that have made purchases based off of this Yolo concept purchases based off of this Yolo concept purchases based off of this Yolo concept but what Yolo really means is that you but what Yolo really means is that you but what Yolo really means is that you have to work longer in order to pay for have to work longer in order to pay for have to work longer in order to pay for a Yolo lifestyle and if you're like us a Yolo lifestyle and if you're like us a Yolo lifestyle and if you're like us you don't want to have to work forever you don't want to have to work forever you don't want to have to work forever you want to have choices and for us that you want to have choices and for us that you want to have choices and for us that is the Yolo to have this choice to say I is the Yolo to have this choice to say I is the Yolo to have this choice to say I only live once so I'm gonna take full only live once so I'm gonna take full only live once so I'm gonna take full advantage of it and do what I want to do advantage of it and do what I want to do advantage of it and do what I want to do because I'm financially independent and because I'm financially independent and because I'm financially independent and that comes with a little bit of that comes with a little bit of that comes with a little bit of sacrifice and so for the rest of the sacrifice and so for the rest of the sacrifice and so for the rest of the video we want to talk about the reasons video we want to talk about the reasons video we want to talk about the reasons why we think Yolo is a bad idea from a why we think Yolo is a bad idea from a why we think Yolo is a bad idea from a financial standpoint to convince you financial standpoint to convince you financial standpoint to convince you that maybe the next time you make a that maybe the next time you make a that maybe the next time you make a financial decision you think about it financial decision you think about it financial decision you think about it from the standpoint of how it's gonna from the standpoint of how it's gonna from the standpoint of how it's gonna affect your financial independence affect your financial independence affect your financial independence so we have six points that we're gonna so we have six points that we're gonna so we have six points that we're gonna go through today in terms of why you go through today in terms of why you go through today in terms of why you should not adopt a Yolo lifestyle from a should not adopt a Yolo lifestyle from a should not adopt a Yolo lifestyle from a financial perspective and the first financial perspective and the first financial perspective and the first reason why yellow is a bad idea is that reason why yellow is a bad idea is that reason why yellow is a bad idea is that life is very very long in fact the life is very very long in fact the life is very very long in fact the sooner you can achieve financial sooner you can achieve financial sooner you can achieve financial independence that is the more freedom independence that is the more freedom independence that is the more freedom you have with your life and so making you have with your life and so making you have with your life and so making right decisions that aren't sporadic or right decisions that aren't sporadic or right decisions that aren't sporadic or on the spur decisions about your on the spur decisions about your on the spur decisions about your finances allows you to achieve that finances allows you to achieve that finances allows you to achieve that financial independence so that you can financial independence so that you can financial independence so that you can spend more time enjoying the one life spend more time enjoying the one life spend more time enjoying the one life that you have and number two is that that you have and number two is that that you have and number two is that Yolo is a complete excuse to be Yolo is a complete excuse to be Yolo is a complete excuse to be completely irresponsible with your completely irresponsible with your completely irresponsible with your finances now our channel is all about finances now our channel is all about finances now our channel is all about making money saving money and investing making money saving money and investing making money saving money and investing money and that includes learning about money and that includes learning about money and that includes learning about finances and making responsible finances and making responsible finances and making responsible decisions so that you can enjoy a long decisions so that you can enjoy a long decisions so that you can enjoy a long life financially independent the third life financially independent the third life financially independent the third reason why we don't like Yolo is that reason why we don't like Yolo is that reason why we don't like Yolo is that the hangover is really bad let's say you the hangover is really bad let's say you the hangover is really bad let's say you go out and you say you know what I would go out and you say you know what I would go out and you say you know what I would live once I'm gonna go out and have a live once I'm gonna go out and have a live once I'm gonna go out and have a ball doing this but you wake up the next ball doing this but you wake up the next ball doing this but you wake up the next day with a huge bill or you have day with a huge bill or you have day with a huge bill or you have purchased something that you find out purchased something that you find out purchased something that you find out that you do not really need or that you that you do not really need or that you that you do not really need or that you cannot afford cannot afford cannot afford well the repercussions of living with well the repercussions of living with well the repercussions of living with that for years and years to come that for years and years to come that for years and years to come that's the hangover and it is painful that's the hangover and it is painful that's the hangover and it is painful and number four is the Yolo attitude and number four is the Yolo attitude and number four is the Yolo attitude encourages financial avoidance and we encourages financial avoidance and we encourages financial avoidance and we don't talk about this enough but there don't talk about this enough but there don't talk about this enough but there are people out there that don't even are people out there that don't even are people out there that don't even want to talk about money don't want to want to talk about money don't want to want to talk about money don't want to talk about finances they avoid opening talk about finances they avoid opening talk about finances they avoid opening up their credit card statement they up their credit card statement they up their credit card statement they avoid talking about retirement they avoid talking about retirement they avoid talking about retirement they avoid talking about finances in general avoid talking about finances in general avoid talking about finances in general because maybe they're insecure about it because maybe they're insecure about it because maybe they're insecure about it or makes them depressed well instead or makes them depressed well instead or makes them depressed well instead they turn to Yolo activities financial they turn to Yolo activities financial they turn to Yolo activities financial avoidance is probably the number one avoidance is probably the number one avoidance is probably the number one issue that people have with planning for issue that people have with planning for issue that people have with planning for their future and number five is that their future and number five is that their future and number five is that people who live this yo lifestyle tend people who live this yo lifestyle tend people who live this yo lifestyle tend to overspend and they also spend things to overspend and they also spend things to overspend and they also spend things that they don't even need yeah it's like that they don't even need yeah it's like that they don't even need yeah it's like if I got it I'm gonna spend it might as if I got it I'm gonna spend it might as if I got it I'm gonna spend it might as well you only live once and the well you only live once and the well you only live once and the repercussions again that it all impacts repercussions again that it all impacts repercussions again that it all impacts your financial stability and number six your financial stability and number six your financial stability and number six is Yolo people is Yolo people is Yolo people rub off on other people if you've ever rub off on other people if you've ever rub off on other people if you've ever had a friend that practices Yolo I'm had a friend that practices Yolo I'm had a friend that practices Yolo I'm sure they have sucked you into spending sure they have sucked you into spending sure they have sucked you into spending money that you didn't need to spend you money that you didn't need to spend you money that you didn't need to spend you were out with them and they say were out with them and they say were out with them and they say something like hey man we only live once something like hey man we only live once something like hey man we only live once oh my goodness that has happened to me a oh my goodness that has happened to me a oh my goodness that has happened to me a couple times and I cannot hang out with couple times and I cannot hang out with couple times and I cannot hang out with those people because I get home I'm like those people because I get home I'm like those people because I get home I'm like actually I I have to deal with this bill actually I I have to deal with this bill actually I I have to deal with this bill for a pretty long time thanks to you but for a pretty long time thanks to you but for a pretty long time thanks to you but that attitude will rub off on you so that attitude will rub off on you so that attitude will rub off on you so please avoid the Yolo people if you are please avoid the Yolo people if you are please avoid the Yolo people if you are trying to pursue financial independence trying to pursue financial independence trying to pursue financial independence so this idea of Yolo it conflicts with so this idea of Yolo it conflicts with so this idea of Yolo it conflicts with financial independence in the financial independence in the financial independence in the traditional sense traditional sense traditional sense you see financial independence that is you see financial independence that is you see financial independence that is our Yolo we only live once so we want to our Yolo we only live once so we want to our Yolo we only live once so we want to achieve financial independence so we can achieve financial independence so we can achieve financial independence so we can enjoy the life that we have with freedom enjoy the life that we have with freedom enjoy the life that we have with freedom the freedom to do whatever we want to the freedom to do whatever we want to the freedom to do whatever we want to spend more time with our children to spend more time with our children to spend more time with our children to work on our passion projects these are work on our passion projects these are work on our passion projects these are the things that we want to do and living the things that we want to do and living the things that we want to do and living a Yolo lifestyle it conflicts with that a Yolo lifestyle it conflicts with that a Yolo lifestyle it conflicts with that because we have to be better planners we because we have to be better planners we because we have to be better planners we don't make short-term decisions because don't make short-term decisions because don't make short-term decisions because they will have long-term consequences I they will have long-term consequences I they will have long-term consequences I hope we got that across if you like this hope we got that across if you like this hope we got that across if you like this video please give it a thumbs up video please give it a thumbs up video please give it a thumbs up subscribe to our Channel and join the subscribe to our Channel and join the subscribe to our Channel and join the journey WEBVTT Kind: captions Language: en [Music] I'm Julian Saunders co-creator of rich I'm Julian Saunders co-creator of rich I'm Julian Saunders co-creator of rich in regular calm real estate investor in regular calm real estate investor in regular calm real estate investor aspiring early retiree and I'm Kirsten aspiring early retiree and I'm Kirsten aspiring early retiree and I'm Kirsten Saunders mom Tabo life to Julian have a Saunders mom Tabo life to Julian have a Saunders mom Tabo life to Julian have a long list of things that I am but most long list of things that I am but most long list of things that I am but most importantly what did you say aspiring importantly what did you say aspiring importantly what did you say aspiring early retiree we're on the journey to early retiree we're on the journey to early retiree we're on the journey to financial independence and so we've been financial independence and so we've been financial independence and so we've been on this path really since shortly after on this path really since shortly after on this path really since shortly after we met I think our fine number was we met I think our fine number was we met I think our fine number was somewhere around . million but the way somewhere around . million but the way somewhere around . million but the way we calculated it was we use the X we calculated it was we use the X we calculated it was we use the X rule as a base as a baseline when we rule as a base as a baseline when we rule as a base as a baseline when we first started it it was closer to a first started it it was closer to a first started it it was closer to a million but since then we've had a child million but since then we've had a child million but since then we've had a child we've started to incorporate our we've started to incorporate our we've started to incorporate our mother-in-law into our plans we kind of mother-in-law into our plans we kind of mother-in-law into our plans we kind of multiplied it then gave it a haircut and multiplied it then gave it a haircut and multiplied it then gave it a haircut and then we're just kind of figuring it out [Music] [Music] [Music] so our monthly expenses are about five so our monthly expenses are about five so our monthly expenses are about five thousand dollars between mortgage and thousand dollars between mortgage and thousand dollars between mortgage and the daycare those are the big ones like the daycare those are the big ones like the daycare those are the big ones like mortgage that we have now even though mortgage that we have now even though mortgage that we have now even though part of that is offset by our rentals part of that is offset by our rentals part of that is offset by our rentals daycare is another big one good morning daycare is another big one good morning daycare is another big one good morning but we've shaved where we can and so we but we've shaved where we can and so we but we've shaved where we can and so we don't have cable we've already paid off don't have cable we've already paid off don't have cable we've already paid off our student loan debt we don't have any our student loan debt we don't have any our student loan debt we don't have any car notes I still drive the same car car notes I still drive the same car car notes I still drive the same car that I bought in kiss and still that I bought in kiss and still that I bought in kiss and still drives for our old car I don't have drives for our old car I don't have drives for our old car I don't have a gym membership I use a a gym membership I use a a gym membership I use a state-of-the-art facility in my basement state-of-the-art facility in my basement state-of-the-art facility in my basement that I created I think it's a that I created I think it's a that I created I think it's a misperception that you have to go to a misperception that you have to go to a misperception that you have to go to a gym to be active and to be healthy and gym to be active and to be healthy and gym to be active and to be healthy and to transform your body and that's just to transform your body and that's just to transform your body and that's just not true not true not true I YouTube everything from beauty I YouTube everything from beauty I YouTube everything from beauty routines or things that I used to pay routines or things that I used to pay routines or things that I used to pay for I now like can do on my own I bring for I now like can do on my own I bring for I now like can do on my own I bring my lunch to work almost every day yeah my lunch to work almost every day yeah my lunch to work almost every day yeah those are those are some of the ways those are those are some of the ways those are those are some of the ways that we practice four gallon so the idea of creating a blog and so the idea of creating a blog and so the idea of creating a blog and calling it rich and regular started on calling it rich and regular started on calling it rich and regular started on our honeymoon we had just spent a our honeymoon we had just spent a our honeymoon we had just spent a life-changing two weeks in South Africa life-changing two weeks in South Africa life-changing two weeks in South Africa for the first time we didn't have to be for the first time we didn't have to be for the first time we didn't have to be so aware that we were black were so so aware that we were black were so so aware that we were black were so aware that we were black and well-off aware that we were black and well-off aware that we were black and well-off and it completely changed our lives and it completely changed our lives and it completely changed our lives because that is the norm there we're not because that is the norm there we're not because that is the norm there we're not other there and so we wanted to create a other there and so we wanted to create a other there and so we wanted to create a space to attract more people to a space to attract more people to a space to attract more people to a community where you're not the other community where you're not the other community where you're not the other you're just rich and regular you're just you're just rich and regular you're just you're just rich and regular you're just a regular your regular person a regular your regular person a regular your regular person [Music] this was our first rental property we this was our first rental property we this was our first rental property we bought this in for , it was bought this in for , it was bought this in for , it was priced at nine we bought it for sixty priced at nine we bought it for sixty priced at nine we bought it for sixty two thousand and we just accepted an two thousand and we just accepted an two thousand and we just accepted an offer for so we launched the blog in offer for so we launched the blog in offer for so we launched the blog in September the response at first was September the response at first was September the response at first was was incredible and I'd like to say that was incredible and I'd like to say that was incredible and I'd like to say that I'm surprised by that but again we've I'm surprised by that but again we've I'm surprised by that but again we've been listening to our friends talk about been listening to our friends talk about been listening to our friends talk about the frustration that comes with being the frustration that comes with being the frustration that comes with being well paid but not feeling like you well paid but not feeling like you well paid but not feeling like you thought you would feel when you got thought you would feel when you got thought you would feel when you got there it I have the house I had the job there it I have the house I had the job there it I have the house I had the job I had the partner I've got everything I had the partner I've got everything I had the partner I've got everything that I thought I wanted but I still feel that I thought I wanted but I still feel that I thought I wanted but I still feel broke because you know I spend so much broke because you know I spend so much broke because you know I spend so much money and so we started one with telling money and so we started one with telling money and so we started one with telling our own stories and struggles about this our own stories and struggles about this our own stories and struggles about this thing and then we used it as a vessel to thing and then we used it as a vessel to thing and then we used it as a vessel to introduce fire to a community where the introduce fire to a community where the introduce fire to a community where the message really hadn't quite penetrated message really hadn't quite penetrated message really hadn't quite penetrated and so we're trying to act as a bridge and so we're trying to act as a bridge and so we're trying to act as a bridge to connect this movement to the to connect this movement to the to connect this movement to the african-american community african-american community african-american community it's been fun buddy seriously like this it's been fun buddy seriously like this it's been fun buddy seriously like this is like I spent see your point right so it took I spent see your point right so it took I spent see your point right so it took two years to save up the downpayment two years to save up the downpayment two years to save up the downpayment I remember buying books and like it's I remember buying books and like it's I remember buying books and like it's the whole process you know like you got the whole process you know like you got the whole process you know like you got to learn this stuff and some Alex to see to learn this stuff and some Alex to see to learn this stuff and some Alex to see full this is a literal closing of a full this is a literal closing of a full this is a literal closing of a chapter they're all saying I'm saying they're all saying I'm saying they're all saying I'm saying yes I don't know how to make a sang you yes I don't know how to make a sang you yes I don't know how to make a sang you know we cook a lot at home we do not go know we cook a lot at home we do not go know we cook a lot at home we do not go out to eat that often and we have the out to eat that often and we have the out to eat that often and we have the benefit that you know I used to be a benefit that you know I used to be a benefit that you know I used to be a professional chef and so yeah I really professional chef and so yeah I really professional chef and so yeah I really apply like that professional product my apply like that professional product my apply like that professional product my brain to cross utilize all the brain to cross utilize all the brain to cross utilize all the ingredients to make sure that there's no ingredients to make sure that there's no ingredients to make sure that there's no waste because that also helps to keep waste because that also helps to keep waste because that also helps to keep the cost manageable so they don't have the cost manageable so they don't have the cost manageable so they don't have primary but this is a great example primary but this is a great example primary but this is a great example where I would consider oh here it would where I would consider oh here it would where I would consider oh here it would be so I could just get this entire side be so I could just get this entire side be so I could just get this entire side of New York strips I can get steaks of New York strips I can get steaks of New York strips I can get steaks out of this for bucks that's roughly out of this for bucks that's roughly out of this for bucks that's roughly a little over five dollars a steak which a little over five dollars a steak which a little over five dollars a steak which that's a great deal yes so dollars that's a great deal yes so dollars that's a great deal yes so dollars I've got peers dragonfruit I've got peers dragonfruit I've got peers dragonfruit probably New York strips my wife's probably New York strips my wife's probably New York strips my wife's from Texas so she loves she loves a good from Texas so she loves she loves a good from Texas so she loves she loves a good steak so this would be a this would be steak so this would be a this would be steak so this would be a this would be Christmas come early Christmas come early Christmas come early [Music] [Music] [Music] there's a recent study that showed that there's a recent study that showed that there's a recent study that showed that by the average black family net by the average black family net by the average black family net worth will be zero and so it's now worth will be zero and so it's now worth will be zero and so it's now we're trending down in the wrong we're trending down in the wrong we're trending down in the wrong direction clearly when we've now turned direction clearly when we've now turned direction clearly when we've now turned inward and look at the Phi community inward and look at the Phi community inward and look at the Phi community many of the people that we've befriended many of the people that we've befriended many of the people that we've befriended and learned from they've just taken very and learned from they've just taken very and learned from they've just taken very different approaches to ways to save and different approaches to ways to save and different approaches to ways to save and the success rate there's a is night and the success rate there's a is night and the success rate there's a is night and day it's one of the reasons why we're day it's one of the reasons why we're day it's one of the reasons why we're attracted to the movement but also one attracted to the movement but also one attracted to the movement but also one of the reasons why we're trying to share of the reasons why we're trying to share of the reasons why we're trying to share it with other people because these are it with other people because these are it with other people because these are amounts that most people generally can't amounts that most people generally can't amounts that most people generally can't even wrap their heads around but when even wrap their heads around but when even wrap their heads around but when you talk about how simple and it is to you talk about how simple and it is to you talk about how simple and it is to do it and I'll be easy but it's do it and I'll be easy but it's do it and I'll be easy but it's relatively simple and say hey make a relatively simple and say hey make a relatively simple and say hey make a short-term sacrifice trade-off spending short-term sacrifice trade-off spending short-term sacrifice trade-off spending in these areas for a short period of in these areas for a short period of in these areas for a short period of time and then after that you can do time and then after that you can do time and then after that you can do whatever you want I see that and I see whatever you want I see that and I see whatever you want I see that and I see the movement as a pathway to create more the movement as a pathway to create more the movement as a pathway to create more black millionaires than I do black millionaires than I do black millionaires than I do corporate America hands down corporate America hands down corporate America hands down [Music] echo off youtube-dl --write-auto-sub --skip-download --sub-lang en https://www.youtube.com/watch?v=yNsKxbqAk youtube-dl --write-auto-sub --skip-download --sub-lang 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