The Library is Your Friend
We’ve long called ChooseFI the “friends of the library” and I was reminded of this when I visited my local branch last week.
I reserved 2 books (Richard Thaler’s “The Winner’s Curse” and “Genius Foods” by Max Lugavere) and they were waiting for me to pick up within 48 hours
I also found two of my favorite books (“The Name of The Wind” and “The Wise Man’s Fear” by Patrick Rothfuss) in the 50-cent clearance pile.
The library is a remarkable resource and I urge you all to use your public library!
Some Inspiration:
I listened to 3 old episodes of ‘The Tim Ferriss Show’ podcast with guest Derek Sivers this past week and he talked about his “Books I’ve Read” list repeatedly.
This is simply one of the best lists of book recommendations I’ve ever come across and his detailed notes on each book provide a companion (or replacement!) to the book.
The amount of knowledge you can pick up in a short period of time just by clicking the “Read My Notes” link by each book is almost crazy.
Tax Notices: Penalty Removal Request
It’s the time of year where the IRS and state tax agencies send out tax notices for additional tax due, underpayment of estimated payments, etc.
There are usually 3 components of the amount due on a tax notice: Tax liability, interest, penalty.
A tip that I’ve passed along on the podcast that has been really effective for many members of the ChooseFI community is that you can request an “abatement” or removal of the penalty.
I’m always careful to say this is NOT tax advice to you personally – just what I’ve experienced anecdotally in my career.
The key to an abatement request is to write a short letter (or fill out IRS Form 843) in response to the taxing agency simply explaining that you made an honest mistake, you did not intend to underpay your tax liability and you have taken steps to make sure it won’t happen in the future.
If owed, you would also include a check for the tax liability and interest along with this abatement request letter.
For specific language to include in your abatement letter, I found many examples by Googling the topic.
2026 Updated IRS Contribution Limits
The IRS just released updated contribution account limits for 2026:
- 401(k)/403(b)/most 457 plans/TSP employee deferral: $24,500 ($1000 increase)
- Catch-up contributions for the above (for those 50+) rises $500 to $8,000 (ages 60-63 can contribute an extra “super” catch-up of $3,250 for a total catch-up of $11,250)
- Employee + Employer combined limit to defined contribution plans: $72,000 ($2k increase)
- IRA contributions: $7,500 ($500 increase)
- Catch-up contributions for IRAs (for those 50+): $1,100 ($100 increase)
- Roth IRA income (MAGI) phaseout range for single and head of household: $153k-$168k
- Roth IRA income (MAGI) phaseout range for married filing joint: $242k-$252k
- HSA contributions: $4,400 for self-only coverage ($8,750 for family coverage). 55 and older can contribute an additional $1,000 catch-up contribution.
ChooseFI Updates/Reminders:
2025 Year-End Wins Episode: Please send in your 2025 year-end wins via voicemail and email! The ideal way to do this is through our new feedback page (“Share a Win” at the top), but I would even take you hitting ‘reply’ to this email and writing your wins in that way. I want to feature as many of these as possible and we’re going to record the episode imminently so get them in ASAP!
Podcast Guests Wanted: I want to record an episode featuring real people from our community going through budgets category-by-category and highlighting ways they are already saving and looking for areas to improve. If you want to be featured in this episode, reply to this email and let me know.
Join a Local Group: If you haven’t joined your ChooseFI Local Group, here’s your reminder! Create a free account here, select your group and you’ll get email notifications of all local events in your area. And if you’re a Local Admin, now is the time to start putting every event in this new system on our site!
Travel Rewards Credit Cards: I keep my Top Ten Recommended Cards page constantly updated, so it should always be your first source for travel rewards cards.
(Note: We earn a commission if you sign up for credit cards through our site. In order to keep it an amazing listening experience, I don’t advertise on the podcast. Your support makes that possible. Thank you!)
ChooseFI Community Taking Action This Week
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I don't understand my car insurance policy, and was still confused after doing extensive searching online, so I typed my policy details into ChatGPT and then gave it information about me, my lifestyle and finances, and asked if I was overinsured. It said yes, and told me exactly where I could ask for savings. I sent a quick email to my agent and am now saving over $20/month! My 2nd 1% better was applying to my local community college, as a first time 50 year old student. I'm nervous but excited, and my tuition will be covered by financial aid. It might take me 8 years to get a bachelor's because I still have kids at home and work, but that's ok! — Carrie |
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I realized recently that I had developed a non-frugal habit - takeout coffee. I had gone from getting takeout coffee once or twice a week to daily (!). Spending aside, it also became an unhealthy habit, as I was consuming tons of unnecessary calories. I knew I had to get ahold of this. As strange as it sounds, I have struggled over the years to make a “good” cup of coffee. However, I committed to learning more about the coffee making process. Within a few days, I created a delicious cup of joe. I found a latte recipe that I love (thank you, TikTok) and boom - my takeout coffee expense has been greatly reduced! I know this might sound small, but it’s a big win for me. I also thought about why I had been going out for coffee so much (specifically the emotional driver of my behavior). I work from home full-time, and I realized that I need to build time into my day to get out of the house. Once I identified the emotional driver, it’s been a lot easier to talk myself out of going out for coffee and replace it with a walk, a drive, etc. — KS |
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My 1% better this week was I finally got our last phone line switched over from Verizon to Mint Mobile. We had done our other phones two years ago, however, the last line was needed because of our teen's cellular Apple watch, which Mint doesn't support. Our teen said she could just use it wirelessly. So because my teen already had Mint, I used the referral link which provide a $45 credit on the account and I get $15 on my next renewal. Win, win! — Frieda |
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My 1% better turned out to be 100% priceless! Being involved in this group gave me the courage and support to walk away from a stressful medical career on 2/1/2025 to spend time with my aging mom. Mom passed away 8/3/2025 and having the time to sit with her at home and later hospice and be fully present was absolutely priceless. This group gave me "permission" and proper perspective to pursue a higher calling beyond adding more $$ to my name, and for that I will always be grateful. — David |
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I have taken on a lot of responsibility at work lately and decided it was time to advocate for myself. I am grateful to have a leader who also advocates for me, but the salary conversation and approval is taking longer than I would hope it would have, even with the tips and tricks I have learned on the podcast. But I advocated for myself and work so well that instead of waiting around for the salary increase to go through, my boss was able to submit an “off cycle bonus” for me of $5,000 and 3 additional paid days off in the next quarter. Still waiting for that salary increase, but that does make the waiting hurt a lot less. — Kayleigh |
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I've been living overseas now for almost 20 years and sometimes it can feel like chasing FI is a solitary endeavor. But imagine my surprise when my family and I were eating outside the Viking Museum in Stockholm and I saw a man walking toward me in a "Choose FI" t-shirt. Given that my wife knows nothing of the FI movement, I needed to let "game recognize game". As the man walked by, I said "Hey man, I really like your Choose FI t-shirt!" With a startled look on his face, he said "Oh, you know about this?" I replied "Oh yes, I do." We parted with knowing smiles on our faces. Just thought I'd share and it has now convinced me to pull the trigger on a couple t-shirts next time I get back to the U.S. — Mark |