Race or Journey
Episode 076R
Episode Guide
Episode Summary:
Episode Timestamps
Unlocking Financial Independence Through Local Exploration
Achieving financial independence is not just about accumulating wealth; it's about making lifestyle choices that contribute to your long-term goals while enriching your everyday experiences. Below are direct strategies and insights on how to embrace the journey to financial independence, leveraging your local community, family dynamics, and adventure living.
Embrace the Superpowers of Savings
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Consider Temporary Living Arrangements: Living at home, even temporarily, can significantly boost your savings rate. As exemplified by many young adults managing to save up to 85% of their income while residing with parents, this approach can wipe out debt rapidly. If this option is available to you, consider how this can position you advantageously for your next steps, such as purchasing your own home or investing.
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Understand the Value of a High Savings Rate: A high savings rate is a powerful tool for achieving financial independence. For those starting, aim to increase your savings percentage little by little. Taking inspiration from community members who have achieved remarkable savings rates can motivate you to set personal targets and build your financial reserves.
Utilize Community Resources to Save
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Leverage Local Libraries: Libraries are treasure troves of free resources. This includes access to academic programs, digital courses, and a rich assortment of books that can enhance financial literacy. For instance, some libraries offer free access to platforms like Treehouse for coding lessons or language courses. Explore what your local library has to offer and utilize these resources to improve your skills without incurring extra costs.
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Engage in Community Activities: Participating in community events can offer unique experiences that don't strain your wallet. Many financial independence advocates encourage members to "play tourists" in their own cities, discovering parks, historical sites, and local attractions that provide enjoyable activities without high expenses. Incorporating local adventures into your routine creates memorable experiences while keeping costs down.
Cultivating a Mindful Spending Approach
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Redefine What Adventure Means: Adventure does not solely entail extravagant trips or costly outings. It can be as simple as exploring new hiking trails or visiting local parks. Create a list of affordable adventures in your area and plan to engage in one or two each month. This promotes a mindset of exploration while managing expenditures.
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Opt for Experiences Over Material Goods: When considering purchases, prioritize activities that enhance your lifestyle and well-being rather than material possessions. Research indicates that experiences contribute more significantly to long-lasting happiness than material goods. So, invest in adventures that deepen relationships, create lasting memories, and enrich your life.
Family Engagement for Financial Growth
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Discuss Financial Goals with Family: Open conversations about financial goals with family members encourage mutual support. It can also foster an environment where everyone collaborates to reach these objectives. Include discussions about savings strategies and the benefits of community engagement, taking advantage of the resources available to you.
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Plan Activities as a Unit: Planning local family adventures not only leads to enriching experiences but also reinforces family bonds. Create a shared family calendar of activities to anticipate and participate in together, allowing everyone to pitch in ideas for what to do in your local area.
Action Items for Your Financial Journey
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Craft a List of Local Resources: Spend an afternoon compiling a list of the services and programs your community offers through local libraries, parks, and organizations. Engaging with these can provide both savings and enrichment.
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Create Adventure Kits: Prepare "go bags" loaded with essentials for immediate local adventures. Keeping these ready will encourage spontaneous outings filled with excitement.
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Set Up Monthly Family Meetings: Regularly check in with family members about ongoing financial and adventure goals, tracking progress and brainstorming new activities to enhance both financial well-being and collective experience.
Reflect on Your Journey
Achieving financial independence appears to be a destination; however, it truly embodies a lifestyle—an ongoing journey of mindful living and exploration. As you embark upon this path, focus on optimizing your choices, embracing the community, and nurturing relationships. In doing so, you'll construct a rich tapestry of life's experiences combined with financial success.
Revisit these strategies regularly, and adapt them as your circumstances evolve. Remember, the journey to financial independence is your own, filled with opportunities for growth, adventure, and fulfillment.
Brad and Jonathan brainstorm ways to implement local adventure into their own lives and the lives of the ChooseFI community, chat about high school reunions and local libraries, and offer a few clarifications about 401k contributions.
[elementor-template id="143609"]- Jonathan's 26-year-old sister just hit an 85% savings rate.
- Living at home can be super helpful to the recent college graduate, or young person entering the workforce.
- Getting to $100k net worth is the hardest part: after that, compounded interest starts working for you.
- Brad signed up his daughter for www.code.org, a website that teaches coding paired with Minecraft.
- Review of Monday’s episode with Mrs. Adventure Rich.
- Getting the right mindset is the most important part of getting on the path to financial independence.
- How does Brad feel about not having a FI number or date?
- Is the pursuit of financial independence a race or a journey?
- What was positive about the way Mrs. Adventure Rich’s coworker introduced her to FI.
- How has Mrs. AR lowered the barrier of entry for local adventures?
- How can local ChooseFI groups apply these ideas to exploring their own cities?
- How does the idea of exploring your own city connect with the idea of intentionally creating memorable moments, as introduced by Chris in ChooseFI episode 71.
- Adventure is anything that makes you feel like, “Hey, this is really living.”
- Have we traded adventure for convenience?
- How can someone plan for those things that truly bring value to their life?
- Check out ChooseFI episode 37, with Scott, talking about rolling out the red carpet for the valuable things in your life.
- Follow-up from Robert, from The College Investor: how much student loan debt has the ChooseFI community paid off?
- Voicemail from Suzanne: in addition to physical books, her local library often provides access to online newspapers, online language programs, STEM programs for students, as well as actual after-school programs for students from public schools.
- Voicemail from the Peerless Money Mentor: the local library in Baton Rouge, LA, provides some access to Treehouse coding courses.
- How would Brad or Jonathan describe their lives at a high school reunion?
- Once you have all your financial needs taken care of, what do you want to do? What's your purpose?
- Email from Danny: how do employer contributions impact a 401k?
- Employer-matched contributions do not count toward the 2018 $18,500 yearly limit for your 401k. (The 401K contribution limit was increased to $19,500 for 2020)
- There are some additional ways to maximize full contributions to your 401k, up to $55k a year.