Finding FI And Getting A Reluctant Spouse On Board | Liz And Braden
Episode 163
Episode Guide
Episode Summary:
Episode Timestamps
ChooseFI Podcast Episode 136R Show Notes
Episode Summary
Liz and Brayden share their transformative financial journey, starting from contrasting childhood experiences. Liz learned budgeting from her financial struggles, while Brayden grew up in a privileged environment. They discuss their scholarship success, teamwork in financial endeavors, the transition to a single income, and the intentional choices leading to their happy financial independence journey.
Key Takeaways
- Childhood Financial Lessons: Liz experienced financial struggles that shaped her budgeting skills, while Brayden was raised in a financially comfortable background.
- Scholarship Success: Liz secured over $100,000 in scholarships through diligent research and hard work. Brayden, coached by Liz, earned a full tuition scholarship.
- Teamwork: The couple emphasizes the power of teamwork and shared financial goals.
- Living Simply: They discuss radical changes to their lifestyle, such as selling their house to boost savings.
- Travel Rewards: Travel rewards provided them with opportunities to travel without significant financial costs.
Timestamps & Highlights
- Podcast Intro
- Childhood Financial Experiences: Contrast between Liz's struggles and Brayden's privilege.
- Scholarship Success: Liz talks about her scholarship journey.
- FAQ: Liz's strategies to secure over $100,000 in scholarships.
- Brayden’s Money Growth: Discussion about Brayden’s money mindset change after his mission trip.
- Travel Rewards: Importance of travel rewards in their budget.
- Optimizing their lives: How setting financial goals transformed their life.
- Savings Rate: Insights into achieving a 40% savings rate after Brayden became a stay-at-home dad.
Actionable Takeaways
- Invest in Scholarships: Liz spent significant hours applying for scholarships, stressing the value of dedicating time to financial aid applications.
- Analyze Your Budget: Adjust lifestyle choices to find savings avenues in your budget.
- Broaden Financial Perspectives: Experience different financial environments to inform better money management.
Key Quotes
- "You can afford anything, but not everything."
- "We've increased our savings rate substantially."
Related Resources
Discussion Questions
- What are the key lessons learned about budgeting from Liz and Brayden’s story?
- How can we apply their scholarship strategies to our own education funding?
- In what ways can we optimize our spending to increase savings?
Action Items
- Consider applying for multiple scholarships to maximize financial aid opportunities.
- Evaluate your household budget to identify potential savings.
Podcast Description
Join Liz and Brayden as they discuss their journey from contrasting financial backgrounds to achieving financial independence. This episode dives deep into scholarship strategies, budgeting tips, and the importance of shared financial goals in a partnership. Get inspired to take actionable steps toward optimizing your finances and enhancing your life.
Transforming Your Financial Journey: Insights from Liz and Brayden
Embarking on a journey towards financial independence often starts with an awakening to our spending habits and the decisions we make about money. Liz and Brayden's story exemplifies how two individuals from different financial backgrounds can come together to optimize their finances, achieve remarkable savings, and build a happy life based on shared values. Here are the actionable lessons you can learn from their transformative experience.
Understanding Your Financial Background
Embrace Your Story
Begin by reflecting on your financial upbringing. Just like Liz, whose childhood was filled with lessons on budgeting due to her family's struggles, and Brayden, who enjoyed a privileged financial upbringing but lacked guidance, your background shapes your perspectives on money. Use this reflection as a tool to identify areas of growth. Understanding where you come from can help you recognize your current financial mindset and values.
Identify Your Influences
Consider the people and experiences that influenced your financial habits. Liz learned about budgeting through necessity while helping her mother manage their finances. Brayden, however, learned hard work in a comfortable environment. Understanding these influences can help you make conscious decisions moving forward.
Scholarship Strategies for Future Savings
Invest Time in Scholarship Research
If you're planning for education, treating scholarship applications like a part-time job can yield significant returns. Liz spent about 20-30 hours a week in her senior year applying for scholarships. She achieved a success rate of about 20% and ended up securing over a hundred thousand dollars in scholarships. Dedicate time to research available scholarships at schools of interest and utilize online resources to maximize your potential.
Leverage Support and Resources
Encourage teamwork in your scholarship pursuits. As Brayden benefited from Liz's experience, finding someone knowledgeable in the scholarship application process can lead to greater success. Additionally, using tools like FastWeb can streamline your research process and help you discover more opportunities.
Budgeting: The Foundation for Financial Independence
Develop a Clear Budget
Creating a budget is essential for managing your financial life. Liz and Brayden shared how they meticulously tracked their expenses, adjusted for their new income situation, and maintained a budget that prioritized their savings. Start with a zero-based budget, where every dollar has a purpose, allowing you to see where cuts can be made to enhance savings.
Optimize Your Living Situation
Consider radical changes to your living situation, like downsizing or home hacking. In their pursuit of financial independence, Liz suggested selling their home and moving to a smaller apartment to optimize savings. Think creatively about how to reduce living costs while ensuring it aligns with your family's needs, like Brayden's decision to sell a second car for better cash flow.
Lifestyle Changes That Boost Savings
Eliminate Non-Essential Expenses
Focus on spending your money on things that align with your values. Liz emphasizes that "you can afford anything, but not everything." This mindset encourages you to prioritize what brings you joy and satisfaction. Evaluate your purchases to ensure they provide real value, and cut back on impulse buys to free up funds for meaningful investments.
Utilize Travel Rewards for Affordable Adventures
When traveling, learning about travel rewards can allow you to explore the world at low costs. Liz and Brayden utilized travel rewards to satisfy their love for travel without affecting their budget extensively. Sign up for credit cards that offer travel rewards and learn to maximize earning points on everyday purchases.
Achieving a Balanced Family Life
Consider the Benefits of a Stay-at-Home Parent
Brayden's decision to become a stay-at-home dad significantly shifted their financial landscape. They initially feared that one income would hinder their savings, but by optimizing their budget and removing daycare costs, they increased their savings rate from 10% to 40%. This demonstrates that careful financial planning can create new opportunities for family life while enhancing savings.
Create Shared Goals to Enhance Happiness
It’s crucial to discuss and set family financial goals collaboratively. Liz and Brayden discovered that aligning their financial decisions with their family values led to greater happiness and fulfillment. Whether it's planning for vacations or saving for a future investment, involve all family members in discussions to ensure a unified approach.
Continuous Learning and Improvement
Stay Educated on Financial Literacy
Brayden's experience highlights the importance of continually educating yourself on personal finance. After listening to the ChooseFI podcast, he recognized that there was much more to learn and optimize in their life. Pursue knowledge through educational resources—books, podcasts, and online courses—to stay informed about the best practices in personal finance.
Foster an Environment of Growth
Encourage discussions about money within your family to dissolve stigmas around financial topics. By modeling healthy financial behaviors and creating an open dialogue about budgeting, saving, and investing, you can foster an environment where financial literacy flourishes.
Conclusion: Your Path to Financial Independence
The journey to financial independence requires intentionality, education, and a willingness to adapt. By learning from Liz and Brayden's experiences, you can apply these strategies in your life to transform your financial future. Embrace your story, maximize your savings through smart budgeting, and keep your focus on shared goals for a fulfilling family life. The path to financial independence is within reach—take the first step today.
Recently, Liz and Braden left a voicemail that detailed how they went from regular people to FI superheroes. They came on the show to share their journey.
Listen: Silver Spoon Or Skills
Liz And Braden's Story
Liz grew up with a single mom that struggled financially after getting divorced. Due to that, she had to learn how to budget at a very young age. She helped her mom pay off some debt over a period of years. As a team, Liz and her mom would budget on pen and paper. They just had to learn through a little bit of trial and error. Some months were easier than others, but they made it through together.
Braden had a completely different relationship with money while growing up. He grew up in a well off family, so he never had to worry about money. He did get a job at 16 because his parents wanted him to learn the value of hard work.
I would say that is one thing that both of us are super grateful for, is we were taught to work hard at a really young age... Growing up I would work the summers with my Grandpa and he paid me $3.oo an hour. We were living on a fruit farm with him, and he instilled the value of hard work in me...I learned that I am never above any task.
Liz and Braden are passing along the lessons of hard work to their children already. They pay their three-year-old 50 cents a day to empty the dishwasher. He has to save one quarter and he can spend the other quarter on toys. It is a way to start getting him excited about work from a young age.
College Scholarships
Liz and Braden met in high school. At the time, Liz was completely on top of the scholarship game. She landed over $100,000 in scholarships for college. With the help of her mom, she spent 20 to 30 hours a week on scholarship applications throughout her senior year of high school. She received about 20% of the scholarships she applied to.
Braden was a grade younger than Liz. So she coached him through the scholarship application process. He landed one full-tuition scholarship through the Sterling Scholar award by playing to his strengths. You don't have to apply to all of the scholarships to win big, it is okay to focus your efforts on a single scholarship. If you can pull your passions into a single scholarship, then go for that one.
Liz says it was very important to visualize winning the scholarships she applied to. When she received phone calls letting her know that she won, she was never very surprised. That confidence helped her win over $100,000 in scholarships.
As you apply, you need to tell your story well. She would spin her story in different ways for different scholarships. Throughout high school, she made sure that her extracurricular activities tied into her future plans. The goal was to create a powerful storyline that made sense.
Before you apply to schools, make sure to do research on the schools. Importantly, you can find schools that will refund any extra money you receive for tuition. That can be a huge factor in your financial situation for college. Plus, going to a lower-cost school can help your funds go farther than a prestigious Ivy League.
Liz will join us on a future Friday Round-Up to take on your questions about scholarships.
Related: How To Apply For Scholarships And Win
World Travels
After college, both Liz and Braden explored the world.
Liz spent a year traveling abroad and spent many of those months in India. At the time, she got caught up in a very materialistic mindset in India. Everything was so cheap, so she bought things she didn't need. On the way back to the U.S., she had three full suitcases of stuff she realized she didn't need. Plus, a few hundred dollars of consumer debt. That moment created a desire to simplify her life and think about how she was spending her money.
Braden spent some time in El Salvador on a service mission. It opened his world view as he saw how other people lived in deep poverty. On his return to the U.S., he wanted to employ a more intentional mindset to his lifestyle.
Building A Life Together
A few months after Braden returned to the U.S., Liz and Braden got married. They latched onto the concept of budgeting and effective money management together.
One pivotal moment was their wedding ring purchase. Instead of spending a few thousand dollars of inheritance on wedding rings, they stuck to less than $300. They chose to spend that money on building a financially stable future.
Neither Liz or Braden brought any debt into their marriage. They stuck to a budget and had started using travel rewards to explore the world for free. However, as they earned more money they started to experience more lifestyle inflation. They drifted away from budgeting until they bought their first home and started refocusing on finances. Then they found ChooseFI.
Finding FI
After Liz found ChooseFI, she listened to all 260+ episodes in a single month. As she listened, she started bringing many crazy ideas to Braden. The information was completely different than what she had previously been exposed to. Although they had worked hard to find useful financial information, they had never found this different approach.
You know, we were on the right path, we could retire at 65, right. But we were kind of stuck in this grind. And we didn’t want to do what we were doing yet didn’t know how to do it any differently until we found ChooseFI.
One of her first ideas was to move their family of four into a one-bedroom apartment. At first, the ideas sounded crazy to Braden but eventually, he started listening but only made it through episode nine.
Around this time, Braden transitioned from the workforce to a stay at home dad to their boys. His mindset towards life was changing and he was happier with the change. So when Liz asked him why he wasn't passionate about FI, he tried ChooseFI again. The episode that changed everything was 18 with Go Curry Cracker, which was a breakdown on how to harvest long-term capital gains.
At that point, I realized that there are so many investing methodologies, different hacks...different things you can do to just really optimize your life. I realized in that episode that I had a lot to learn and this podcast is a really good place to start in my learning journey
After getting on board, Braden and Liz are able to design their new lifestyle together. And they are happier than ever. Although they are reluctantly frugal people, they are focusing on their values more.
We know our numbers. We have a clear sense for the direction we’re headed and what our future looks like.
Staying At Home
Although they haven't reached FI, Braden made the leap to become a stay at home parent. It happened after Braden mentioned he was unhappy in his position. So, they looked at the budget and found a way for Braden to stay home.
After running the numbers, they have actually been able to achieve a higher savings rate now that Braden is staying home with their small boys. Before the switch, they were saving 10%, now they are saving 40%. With intentionality and an optimized budget, it was a completely possible transition.
Listen: Real Hourly Wage
FI Levers
A savings rate of 40% is not something that happens without becoming and being intentional. Liz and Braden have made adjustments in their life to create room in their life to save.
They started with house hacking and sold their second car. Now they have a single minivan. Liz bikes to work and takes public transport when necessary.
They paid off their cellphones and switched to a prepaid plan, minimized their grocery bill, switched up their life insurance, and eliminated a daycare cost. And they will continue to make changes to optimize their finances.
Two Dollar Eats
Two Dollar Eats is Braden's passion project. He is building recipes that stick to a budget of $2 dollars per person per meal.
How To Connect
Check out Braden's site Two Dollar Eats or follow them on Instagram @twodollareats. You can connect with Liz on Instagram @lizmjwoodfield.
Plus, Liz and Braden are active in the ChooseFI Facebook groups often.
The Hot Seat
Favorite Blog, Podcast, or Book: ChooseFI and BiggerPockets
An Inflection Point: For Liz, it was when she started to budget and value simplicity after traveling abroad. For Braden, it was when he lived in El Salvador. It was a great way to understand there is more to the world than just him. A second inflection point was starting to listen to ChooseFI.
Favorite Life Hack: Free yoga on YouTube, home births, and cloth diapers.
Biggest Financial Mistake: Driving an hour north to go skiing and buying a brand new GoPro because they forgot theirs at home.
The advice you would give your younger self: Braden would talk to his parents about starting a Roth IRA earlier. Liz would explain the rules of compounding interest so that it clicked at a younger age.
Bonus! What purchase have you made over the past 12 months that has brought the most value to your life? AirPods
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- 10 Life Optimization Hack To Be Happy Now
- Travel Rewards: How to Travel the World for Free (The Easy Way)
New to FI? Be sure to check out Episode 100: Welcome To The FI Community!