Hail Mary FI
Episode 123R
Episode Guide
Episode Timestamps
ChooseFI Episode Show Notes
Episode Title: Updates, Insights, and Overcoming Barriers to Financial Independence
Episode Summary:
In this episode, the hosts Jonathan Mendonsa and Brad Barrett provide updates on the upcoming 'Plane with Fire' documentary premiere, discuss strategies for navigating corporate structures, and answer listener questions related to financial independence. The episode also features guests Julian and Kirsten, who share their experiences with racial wealth inequality and insights on building wealth within the financial independence community.
Key Topics and Timestamps:
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Podcast Intro:
You're listening to ChooseFI. The blueprint for financial independence lives here... -
Plane with Fire Documentary Updates:
- Announcement about the documentary release and its significance.
- Screening plans for major cities across America, emphasizing community involvement and local meetups.
- The documentary is described as a gateway to the financial independence community.
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Episode Feedback with Julian and Kirsten:
- Discussion of feedback from listeners on the episode featuring Julian and Kirsten.
- Emphasis on the importance of representation and storytelling in financial independence.
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Personal Finance and Generational Wealth:
- Delving into how personal finance is interconnected with generational wealth.
- Importance of community support and relatable role models in overcoming barriers to wealth building.
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Regular People Achieving Results:
- A focus on the idea that financial independence can be achieved by those who are willing to reframe their perspective.
- Highlighting the empowerment that comes from understanding personal finance.
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Control Through Personal Finance Choices:
- Discussing the control individuals can exert over their financial choices and spending habits.
- The significance of evaluating and adjusting savings rates.
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Hike Your Savings Rate:
- Brad shares a powerful realization about increasing savings rates and how it affects financial flexibility.
- Emphasis on the mathematical aspect of financial independence.
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Timeline for Success:
- Jonathan encourages listeners to think strategically about their financial timelines and planning.
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Podcast Extro:
You've been listening to ChooseFI Podcast, where we help middle-class America build wealth one life hack at a time.
Key Quotes:
- "Your gateway to financial independence is here!"
- "Regular people can achieve remarkable results!"
- "Take control with personal finance choices!"
- "Hiking your savings rate changes everything!"
- "Focus on your timeline for success."
Actionable Takeaways:
- Assess your expenses to find opportunities for effective savings.
- Engage with local community groups for support and accountability.
- Reach out to mentors for personalized guidance on your financial journey.
Related Resources:
- ChooseFI Local Groups for connecting with community initiatives.
Discussion Questions:
- How can you apply the lessons from the documentary in your life?
- Reflect on impactful personal finance choices in your journey.
- In what ways does storytelling influence financial education?
Listener Action Items:
- Join a local FI group for camaraderie and support.
- Increase your savings rate by analyzing monthly expenses.
This episode provides a rich discussion on financial independence, community engagement, and actionable insights, encouraging listeners to take control of their financial future.
Your Gateway to Financial Independence
The pursuit of financial independence (FI) is more than just a dream—it's a tangible goal that anyone can achieve with the right mindset and tools. This article distills insights and actionable strategies discussed on the ChooseFI podcast, focusing on building wealth through community support, personal finance principles, and effective money management.
Understanding Financial Independence
Financial independence, often abbreviated as FI, refers to having enough personal wealth to live without depending on a regular paycheck. This concept can be appeals to anyone feeling trapped in a corporate job or individuals looking for strategic routes to financial freedom.
The Importance of Community Support
A vital aspect of the financial independence journey is community engagement. By connecting with like-minded people, you can share experiences, learn from others' successes and failures, and find inspiration. Local FI groups can be found at choosefi.com/local and serve as platforms for sharing knowledge, organizing screenings of insightful documentaries like "Plane with Fire," and creating a network of support.
Building Wealth: Actionable Steps
Focus on Personal Finance Choices
At the core of financial independence is the ability to make informed personal finance choices. Create a monthly budget to track your income and expenses, identifying areas where you can cut costs. Regularly assessing your financial situation enables you to make conscious decisions that align with your long-term goals.
Increase Your Savings Rate
Hiking your savings rate is a game-changer. If you can save 50% of your income, you drastically shorten the time it will take to achieve financial independence. Savings can be allocated towards investments, which will compound over the years, thus building your financial foundation. Take a moment to analyze your monthly spending—what changes can you make to increase your savings?
Implement the Valuist Mindset
Being a valuist means prioritizing spending on what truly brings you joy and satisfaction. Reflect on past purchases or experiences—did they deliver the happiness you anticipated? This reflection helps you allocate your finances towards experiences or items that genuinely enhance your life rather than succumbing to the status quo or societal pressures.
Addressing Generational Wealth and Representation
The Role of Storytelling
Financial independence is often portrayed as a journey accessible only to a select few. However, the stories shared in recent ChooseFI episodes highlight that anyone can overcome financial barriers. Hearing from those who've faced racial and economic challenges sheds light on the necessity of representation in entrepreneurship and wealth-building narratives.
Stories from ordinary individuals like Julian and Kirsten emphasize that financial independence isn't just for the wealthy; it's achievable for everyone willing to change their mindset and approach. This representation is crucial for inspiring future generations to believe in their potential for financial success.
Strategic Approaches to Financial Planning
Create an Escape Route from Corporate Structures
Many professionals find themselves in corporate hierarchies that stifle their growth. Understanding that you have the power to create an escape route is essential. This might involve enhancing your skillset to open up alternative career paths, considering entrepreneurship, or investing in avenues that provide passive income.
Evaluate your current job situation—have you capped out on promotion opportunities? If yes, take control of your career by exploring other options. This proactive approach can provide you with leverage and freedom, ultimately allowing you to make choices that align with your life goals.
Building Generational Wealth
Start with What You Have
Even if you're starting from zero, there are steps one can take to build wealth over time. For those who feel discouraged due to financial stability or age, remember that change is possible regardless of your current situation. Start by assessing your current financial habits and mindset—identify what adjustments you can make.
Investing in broad-based index funds is a straightforward and effective method for wealth building. By consistently investing over time and allowing compound interest to work for you, significant growth can be achieved, laying the groundwork for generational wealth.
Conclusion: Empower Yourself Financially
The journey to financial independence is not easy, but it is possible. By prioritizing personal finance decisions, engaging with supportive communities, and fostering a mindset that embraces both valuism and representation, you can pave your road to wealth.
As you navigate your financial journey, remind yourself that every small action counts. Assess your spending, increase your savings rate, seek community support, and embrace the power of storytelling in finance to inspire yourself and others. Your future self will thank you for taking control today.
Now is the time to unlock the secrets to financial independence—take the first step today.
Brad and Jonathan give us an update about the "Playing with FIRE" documentary, Hail Mary FI, and how to build an escape route from the corporate hierarchy that doesn't make room for you.
[elementor-template id="143609"]Playing With FIRE
As many of you already know, the "Playing with FIRE" documentary has been released to those that funded the documentary through a Kickstarter campaign. For those that have not seen it yet, the plan is for the documentary to come to a theatre near you this summer for a premiere.
Brad and Jonathan will be flying out to San Diego for the grand premiere in June. The goal is for this documentary to be everywhere. You can sign up for email notifications on the Playing With FIRE website. Also, each of the ChooseFI local groups will play a part in making these showings a reality, so check out your local group for more information.
Based on what they have seen, the finished product is something that the entire FI community can be proud of.
It offers an easy way to introduce family and friends to the concept of FI. The story follows two regular people that undergo a mental and physical journey to make FI a reality. Invite someone to watch this documentary with you! It might be a great place to start an open conversation about the FIRE lifestyle.
The Rich And Regular
This week's conversation with Kiersten and Julien from Rich and Regular was eye-opening. It helped to inform everyone about informational and racial divides that define many people's lives. With that insight, we now know more about what needs to be done to make FIRE more accessible to everyone.
One way to make FIRE more accessible is by sharing the stories of people of the journey.
We are not relationship experts. We are not financial experts. We are just two regular people that had the courage to tell our story.
With Kiersten and Julien's story, they may be able to inspire others to pursue their path. Although their story provides an optimistic outcome, it is still grounded in the reality of overcoming struggles to achieve their goals. Now they can be a type of beacon for others who want to follow in their footsteps.
People are looking for people that have walked a mile or two in their shoes, and are a couple of steps ahead, but they can identify with that path.
Most have experienced this gap without even realizing it. For example, Brad mentioned that he always knew that he had a backstop to fall back to. Although his parents weren't absurdly rich, he knew they would be able to help out in case of a financial emergency. With that in mind, he was able to move forward without fear of total failure holding him back.
Check out the full episode with Kiersten and Julien here.
The Feedback From The Community About This Episode Was Very Positive:
Glasa said, "This has got to be in my top five favorite episodes of Choose FI. After listening to the episode, I read the "Letter to Middle-Class Black America," and never before have I had text resonate so deeply in what it feels like not only to be a middle-class black family but to be a middle-class black family pursuing FI, which becomes an even smaller subset. Kudos to Jonathan & Brad for expanding the FI conversation, and for the genuine curiosity they shared in diving deeper into the context of the racial divide as it pertains to wealth building and education."
And one YouTube viewer said, "I totally understand what Kiersten and Julien said. I'm African-American (53-years old) and have dealt with the inequities related to financial access. What worked for me is investing in a stock index fund (S&P 500). I've been doing it for more than 25 years and started with just $50 a month on a salary of $20K a YEAR. I've increased my contributions with promotions, 2nd jobs, etc and my portfolio has grown to just over $800K. It is literally one of the easiest ways to become financially independent for anyone, including African-Americans.”
With these positive messages in mind, there is a hope for a new path to black wealth that does not involve being famous in any way.
How To Escape A Corporate Hierarchy That Does Not Facilitate Your Long-Term Growth
Working up the corporate ladder is not always an easy climb. Although some may reach outstanding heights, many already know where their corporate journey will level out. So how should you combat this?
Always Have A Plan "A"
The best plan "A" to have is an escape route. Explore your options and maintain a high savings rate to effectively free yourself from needing the job within 10-15 years. At that point, you won't need them at all. Or at least, they'll need you more than you need them.
With that, you will be able to make a choice that is your best interest.
Once that power dynamic has shifted and you have the FU money, then you might be surprised how many opportunities come your way. Some managers may even bend over backward to keep you.
Although you cannot always control whether your organization will promote you or not, you can control your personal finance choices. It's just in the math. The power of that is in your hands.
As you focus deliberately on your savings rate, think carefully about the value you are getting from your spending. If you are truly getting value from a spending choice, then go ahead and spend that money. However, if you aren't too sure, then rethink that choice.
Feedback From The Community
Question From Peter
What help can you offer a non-millennial, actually I'll be turning 60 this year. No savings, no 401k, living a nightmare paycheck-to-paycheck. I'll get $1,000/month in pension from a previous job when I turn 65. Are any of your podcasts geared for starting a 0 dollars with 10 years until I would like to stop working full-time? Any help would be appreciated. Also going through a downsize or just getting rid of junk collected over the years. But not ready for the Frugalwoods to enter my place.
Brad And Jonathan's Answer
I don’t think about this in terms of current age. The nice thing about FI is that whether you find it as 20, 30, 40, 50 or 60 in his case, you have to think about it in terms of timeline. From a standing start, you’ve cleaned up all of your debt. You’re moving forward but you don’t have a significant net worth yet. If you can hike that savings rate up, it's a function of the math. If you can get to a 50% savings rate, then typically 10-15 years will get you to FI.
Just assess where you are today. Be realistic and realize that you have to make changes. You are the one that has to get yourself off the couch and put space in your life between your income and your expenses. It is going to require some change and introspection. It might require some difficult choices.
Voicemail Answer From Sean Mullaney At FI Tax Guy
The four things that Sean recommends are:
- Analyze your monthly expenses. Take a look at your credit card and bank statements to understand what you are spending each month. It is critical to get a handle on that number.
- Go to the Social Security website. Enter your information and determine what you might receive on a monthly basis at 70 from Social Security.
- Start an emergency fund today.
- Think critically about your expenses. You have time to reduce your monthly spending, so do that if necessary.
The best part is that there is a reason for hope. You can control what you do with your life over the next decade. Instead of continuing down a paycheck-to-paycheck life, do something that your future self will appreciate. Take action and start moving towards a better future.
Shout Out To Chad!
Chad is a new ChooseFI community member that switched his Verizon phone plan to an MVNO that will save him at least $1,500 a year.
Small steps to life optimization can lead to big results. Lowering your cell phone bills is an amazing way to start optimizing your life today.
Check Out Our Video Content
In the future, we plan to sporadically do video podcasts. If you are interested, then check us out at ChooseFI.tv.
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