Your Blueprint To Financial Independence
Episode 124R
Episode Guide
Episode Timestamps
ChooseFI Podcast Episode Show Notes
Episode Summary:
In this episode, Brad and Jonathan share updates about their book, ChooseFI: Your Blueprint to Financial Independence, set to release on October 1, 2019. They discuss the significance of financial independence, collaborations with fellow authors, their personal finance journeys, DIY home improvement projects, and travel rewards. The episode features an interview with Lynne Frayer, who shares her inspiring path to financial independence through careful planning, investing, and focusing on quality of life.
Key Topics and Takeaways:
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** Podcast Intro:
- Introduction to the purpose of the podcast and community focus.
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Book Release Announcement
- ChooseFI: Your Blueprint to Financial Independence pre-orders are live!
- The book covers common financial independence themes and insightful stories from the FI community.
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Intentional Financial Choices
- Importance of being intentional with financial decisions.
- DIY projects can save money and increase home value.
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Travel Rewards Discussion
- Tips on utilizing travel rewards to maximize savings during vacations.
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Home Insurance Savings
- Use marketplaces to compare quotes for auto insurance; personal experiences shared about savings.
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Interview with Lynne Frayer
- Lynne shares her story of early investment and how it planted the seeds for her financial independence.
- Discusses the role of community and support in achieving financial goals.
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Lynne’s Investment Journey
- Investing early and smart strategies she employed, including managing risks during market downturns.
Key Insights:
- Self-Education: Start learning about finance and investment at a young age.
- Value Tracking: Live below your means; small living cost adjustments can lead to significant savings.
- Networking: Connections and kindness can lead to unexpected opportunities in professional life.
Actionable Takeaways:
- Save on auto insurance by comparing quotes online.
- Take a DIY home improvement class to reduce costs.
- Invest early, even if the amounts are small, to build long-term wealth.
Frequently Asked Questions:
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What is the release date of the ChooseFI book?
- The book is set to release on October 1, 2019.
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How can I save on my auto insurance?
- Use online quotes to compare rates and find the best policy for you.
Additional Resources:
- ChooseFI Book: Link - Pre-order for insights on achieving financial independence.
- CanIRetireYet.com Article: Link - An article by Chris on financial independence.
Discussion Questions:
- What steps can you take to start your journey toward FI?
- How important is community in achieving financial goals?
Conclusion:
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Podcast Extro:
- Wrap up emphasizing the ongoing pursuit of financial independence and wealth-building strategies for the middle class.
Next steps include considering pre-orders for the ChooseFI book, exploring local DIY classes, and starting to implement the steps discussed in the episode to transform your financial future.
Unlocking Financial Independence with ChooseFI
Introduction to Financial Independence
Financial independence is an attainable goal, and the journey towards it involves intentional decision-making and strategic planning. With resources like the ChooseFI podcast and their new book, "ChooseFI: Your Blueprint to Financial Independence," individuals can access transformative strategies that facilitate this journey. This article will unpack vital teachings and actionable advice to help you pursue financial independence.
Key Principles of Financial Independence
Understanding Your Financial Path
One of the essential foundations for aspiring towards financial independence is understanding your unique path. Financial independence is not solely about achieving a certain income level or age; it is about making conscious choices and establishing a beneficial framework for your future. As highlighted, “Choosing FI is simple, but it isn't easy.” The path requires dedication and clarity in your financial decisions.
The Importance of Community
Surrounding yourself with a supportive community is another critical factor. Engaging with others who are also pursuing financial independence provides motivation and shared insights. The ChooseFI community emphasizes that you are never alone in your journey—countless others are pursuing similar goals, and learning from their experiences can be invaluable.
Practical Steps for Financial Independence
Budgeting and Saving Wisely
Creating a budget is a fundamental step in managing your finances effectively. To make sure you are not spending more than you earn, track your expenses diligently. This allows you to identify areas where you can cut back and saves you money.
- Actionable Tip: Review your monthly subscriptions and services. Are there any you can eliminate or downgrade to save money?
Home Improvement and DIY Projects
Engaging in DIY home improvement projects not only enhances your living space but can also add significant value to your home. For example, consider taking advantage of free workshops at local home improvement stores to learn skills like tiling, which can save you thousands in labor costs.
- Actionable Tip: Sign up for a DIY class in your community to gain practical skills while also saving money.
Travel Rewards Optimization
Transforming your travel experiences into financial rewards is an excellent way to leverage your everyday spending. Focus on maximizing your travel rewards rather than just travel rewards. By utilizing credit card points and exploring membership programs, you can save significantly on travel expenses.
- Actionable Tip: Research and compare different travel rewards credit cards to find one that suits your spending habits and offers the best benefits for travel.
Exploring Investment Strategies
Start Investing Early
Investing early is vital for building wealth over time. The earlier you start, the more time your money has to grow through the power of compound interest. Remember, "Investing from a young age can set the foundation for financial success."
- Actionable Tip: If you haven't already, set up an automatic investment plan with your bank or brokerage to ensure consistent contributions to your investment account.
Insurance Savings Strategies
Unexpected expenses can derail your financial goals. Regularly reviewing and comparing your insurance policies can lead to substantial savings.
- Actionable Tip: Use online marketplaces to compare auto insurance rates and find potential savings, as many people have reported reductions in their premiums simply by shopping around.
Lynne Frayer’s Inspiring Journey
Importance of Early Investments
In the podcast, Lynne Frayer shares her remarkable journey to financial independence, emphasizing her experience of investing since the tender age of 12. Her early start not only prepared her for future financial goals but also ingrained the understanding of compound growth benefits.
Living Below Your Means
Lynne stresses the significance of living below one’s means. This lifestyle choice ensured her family's financial stability, allowing them to invest aggressively and save for the future.
Action Items to Propel Your Journey
- Pre-order the ChooseFI Book: Supporting the community by pre-ordering "ChooseFI: Your Blueprint to Financial Independence" not only provides valuable resources but also contributes to the expansion of this supportive network.
- Join Local Groups: Engage with local ChooseFI groups for shared learning and motivation.
Overcoming Psychological Blocks
Changing Your Narrative
To truly embrace financial independence, it is vital to reframe your expectations and beliefs around money. The journey might seem daunting, but adopting a proactive mindset can lead to transformation.
- Actionable Tip: Spend some time reflecting on your current money mindset. Identify areas where old narratives might be holding you back, and work on creating a new, empowering narrative.
Conclusion
Achieving financial independence is a journey that requires thoughtful planning, community support, and strategic actions. By implementing the actionable advice outlined here, from effective budgeting and learning new skills to optimizing travel rewards and engaging with community resources, you can pave your own path towards financial freedom. Remember, your future self will thank you for the decisions you make today.
Brad and Jonathan discuss the release date of a ChooseFI book, finding the best auto insurance rates, and Lynn Frair's path to FI.
[elementor-template id="143609"]ChooseFI: Your Blueprint To Financial Independence
The ChooseFI: Your Blueprint to Financial Independence will be released on October 1, 2019. The goal of the book is to outline options for your path FI. Everyone's journey will be different because the concept of FI is really based on choosing your own adventure. However, there are common threads between all of the success stories. We pull that together so that you can make your own journey a successful one.
Changing the narritive that guides your life then using this new framework to guide your future financial decisions makes Financial Independence achieveable to virtually anyone who chooses to pursue it.
Everyone has their own journey and Chris does an amazing job of recognizing that. With the individual stories from guests, he was able to pull together a blueprint that anyone can learn from at any stage in their journey.
In an article on Can I Retire Yet, Chris talks about why he thinks the book is important. With mainstream media attention on FIRE, it is easy to focus on the strange anecdotes. However, that is not what FIRE is about. Instead, it is able finding value in your life and finding the strength to ignore the rules that society has imposed on us.
When you make your choices based on what you value, then you may be able to add millions of dollars and years of freedom to your life.
It's not about being a penny pincher or a miser, its about getting value out of your life.
When you make the choice to pursue FI, it might be simple. However, continually making choices that put you on the path to FI are not easy. We hope that the information in this book will help you to optimize your path to FI.
Where To Get Your Copy
Please go ahead and preorder your copy of the book here. With your preorder, you will gain access to exclusive content. Plus, you get to enjoy the book as soon as its out!
How To Get The Best Auto Insurance Rates
Compare.com is an easy way to save money on your car insurance. It eliminates the need to find several different quotes. Just fill out your information one time and Compare.com will find multiple car insurance quotes for you in seconds.
Brad found an opportunity that could save him around 40%. Definitely worth checking out!
Alignment of incentives is key to successfully finding financial deals that work for you. Compare.com works in your favor because they would gain from you switching to a plan that costs you less.
Lynn Frair And Her Path To FI
Lynn Frair and her husband were able to leave full-time work when she reached the ripe old age of 37. Her milestone received some attention in the Wall Street Journal, "How to Thrive in Early Retirement." At the time of her retirement, she was not aware of the financial independence movement. However, she quickly connected with a trip to Camp Mustache after being compared by a coworker to Mr. Money Mustache.
Where She Started
Back in the day, a 12-year-old Lynn decided that she wanted to pay for college herself. She had a limiting belief that she was not the smartest cookie, but ended up investing her money based on an Albert Einstein quote. Already, Lynn was ahead of her age group.
Once she decided to invest, she took a bus to a "women in business" conference and stood up and asked "At age 12 what should she do with her money?" With the answer of stocks and real estate, she headed over to the bank to start investing in low-cost mutual funds. She also earned a bond as a prize from an essay, writing contest that proved to her that you could buy something in the present that will be worth in the future if you allow it to grow.
Although most 12-year-olds are not ready for the message of investing, she was someone that always planned for the future. Early on, she learned the concept of delayed gratification. Many do not learn this until later, if ever.
College And Beyond
Before college, she started taking college credit classes to get started. With that base, she was able to graduate with a pre-med degree even though she took a year and a half off to travel. Once she graduated, she did a cost-benefit analysis and decided that medical school would not give her the life she wanted.
For the time being, she decided to work for a pharmacy in a leadership position. This gave her the time to think about her future. Once she thought about it, she decided to go into nursing.
Prior to graduation, she approached the manager of an ICU. She asked for a list of things to do before graduation next year in order to land a job in the ICU as a recent graduate. Over the course of the year, she completed the list and then came back to the hiring manager. She got the position as a daytime ICU nurse! That is one way to get a job in your field, just ask what the hiring manager wants from new applicants before you apply. Make that connection and put in the effort, you might be surprised how well it may work out.
That may seem like the end of the story. A bundle of investments from childhood and a solid career as an ICU nurse led to her financial independence. Unfortunately, that was not the case.
Challenges
After working as an ICU nurse for about a year, Lynn started to notice she was very dizzy and her hearing wasn't right. At first, doctors said it was nothing. However, after scans, doctors found a brain tumor.
Of course, it was an incredibly expensive and physically taxing recovery process, including relearning how to walk, was a setback. Not only were their savings wiped out, but also Lynn was not up to returning to the demanding job of an ICU nurse.
She still wanted to stay in healthcare so she found an admin position in home health that lead to a role in hospice.
When you are truly genuine and kind to people, you never really know how that will be paid forward into the future.
Eventually, she was made the manager of the entire facility. She was referred to the management role by a woman who had worked as a janitor with Lynn in the ICU. They had become friends and now that woman worked directly with the facility management and recommended Lynn for the job. With the trust of staff based on her genuine kindness, she was able to find ways to help improve people's quality of life in their final days.
Reaching FI In Eight Years
After her recovery from the brain tumor at 29, Lynn was able to rechannel her efforts towards investing and rebuilding her savings. Even in an HCOL with 2 kids, she was able to reach FI with her husband. Now, she just works 22 weeks out of the year.
Without the FI community's guidance, Lynn was able to reach FI goals on her own. She did not keep track of her savings rate, but she did ensure that they lived beneath their means. Neither her or her husband have extremely high incomes, but they made it work anyways. With those savings, she invested strictly in low-cost index funds. She kept investing through the dips and that really catapulted them to success.
In just 8 short years, the couple was able to leave full-time work in pursuit of a life filled with travel and indoor bouncy house parties with their kids.
How To Connect With Lynn
You can reach her through her new website, Nurse Numbers. And be sure to check out her very first article: How I Was Arrested By The Early Retirement Police
The Hot Seat
Favorite blog: Paula Pant's Afford Anything
Favorite article: 20 Brutal Truths about Life that No One Wants to Admit
Favorite life hack: Having an indoor bouncy house for kids. When the seams come apart, just sew it back together with dental floss!
Biggest financial mistake. Going to a private college for her pre-med degree.
Advice you would give your younger self: Try to relax and enjoy where you are now.
Bonus! What is the purchase you've made over the last 12 months that has brought the most value to your life? The indoor bouncy castle
Bounceland Bounce House Castle W/Hoop Inflatable Bouncer
We have found this to be a wonderful investment if you have younger children, a perfect way to entertain, get them exercise and wear them out. It can be used also for smaller birthday parties.
We use it indoor in our loft which has a carpeted floor. When the weather is better, we also use it outdoor and hook up a sprinkler above the slide portion which makes it like a water slide.
Remember the dental floss trick! A couple of minutes with a study needle and dental floss and you are back in jumping action!
-Lynn Frair
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