How to Factor My Mortgage into My FI Number | Live Stereo Q&A
Episode 307
Episode Guide
Episode Timestamps
ChooseFI Podcast Episode Show Notes
Episode Summary: This episode explores financial independence, travel rewards, and modern job-seeking strategies. Highlights include the recent update to the Chase Sapphire Preferred card offering 80,000 points and discussions on adapting job searching techniques beyond traditional resumes, emphasizing personal branding and effective networking.
Timestamps & Key Topics:
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Travel Rewards Update
- Introduction to travel rewards and the hosts' excitement about planning trips.
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Chase Sapphire Preferred Offer
- The Chase Sapphire Preferred card now features an unprecedented 80,000-point bonus for spending $4,000 in the first three months. More details.
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Adapting Job Search Strategies
- Discussion about outdated job search methods and the need to adapt:
- Traditional resumes and applications are less effective.
- Emphasis on demonstrating skills and capabilities.
- Discussion about outdated job search methods and the need to adapt:
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The Importance of Personal Branding
- How to showcase skills dynamically and build a personal brand for job searching.
- Networking is crucial; focus on authentic relationships.
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Conclusion and Future Resources
- Recap of the conversation and an invitation to check out upcoming resources and events.
Key Takeaways:
- The Chase Sapphire Preferred offers the best travel rewards deal currently available.
- Job seekers should shift their focus from resumes to demonstrating their skills and building a personal brand.
- Networking effectively can lead to job opportunities; prioritize authentic connections.
Actionable Insights:
- Review the new offer on the Chase Sapphire Preferred card. Consider applying if travel aligns with your goals. Learn more .
- Transition your job search strategy from traditional methods to showcasing your skills and building your personal brand. .
- Engage in networking to establish connections relevant to your industry, expanding your opportunities. .
Listener Engagement:
- Question: What strategies have you used to earn travel rewards? .
- Question: How do you approach job searching differently now compared to a decade ago? .
- Question: What are your tips for building a personal brand? .
Resources Mentioned:
Quotes:
- "An unprecedented offer on the Chase Sapphire Preferred!" .
- "Showcasing your skills is essential in today's job market!" .
- "Effective communication fosters understanding and support." .
SEO Keywords: financial independence, travel rewards, Chase Sapphire Preferred, personal branding, job search strategies, networking, early retirement, wealth building, money management, side hustles.
Tags: travel rewards, personal finance, job market, credit cards, financial tips, entrepreneurship, self-improvement, financial independence, community support.
[End of the Show Notes]
Unlocking Financial Independence: Strategies for the Modern Era
Achieving financial independence (FI) and early retirement is a goal for many people, yet the path to this destination can often seem daunting. To simplify your journey, this article highlights effective strategies on financial independence, travel rewards, job searching, and personal branding gleaned from insightful discussions shared on the ChooseFI podcast.
Travel Rewards: Leveraging Credit Card Offers
Maximize Your Travel Experience
To enhance your travel experience with minimal costs, consider integrating travel rewards into your financial strategy. For instance, the Chase Sapphire Preferred card recently updated its offer to an unprecedented 80,000 points. By spending $4,000 within the first three months, travelers can unlock a vast array of benefits, including:
- Access to valuable airline and hotel partnerships.
- Planning entire trips using accumulated points.
- A relatively low annual fee of $95.
Action Step: Review the current offer on the Chase Sapphire Preferred card and consider applying if travel is in your plans. Check out the detailed review to better understand how to maximize this opportunity here.
Join Live Coaching Sessions
Participate in live travel rewards coaching to refine your travel strategies. Engaging in discussions with experts can provide insights and techniques to transform points into memorable travel experiences.
Adapting Job Search Strategies in a Changing Landscape
Move Away from Traditional Tactics
Traditional job searching methods, like submitting resumes to countless employers, are becoming increasingly ineffective. To thrive in today's market, you must adapt your strategies. Here’s how:
Showcase Your Skills
"Demonstrating what you can do" rather than simply listing accomplishments on a resume is essential. Create a portfolio that genuinely represents your career progression and skills.
Action Step: Transition your job search strategy towards showcasing your skills and building your personal brand. This can mean creating a digital portfolio or blog that documents your journey and highlights your expertise.
Emphasize Personal Branding
Develop a personal brand that clearly communicates your value to potential employers. Start by:
- Defining your unique selling proposition (USP).
- Utilizing platforms like LinkedIn to highlight your skills and achievements.
- Creating valuable content that speaks to your target audience's needs and interests.
Action Step: Invest time in personal branding and developing your reputation as a thought leader in your industry.
Effective Networking Strategies
Build Authentic Relationships
Networking is more than just exchanging business cards; it's about creating meaningful connections. Key strategies include:
- Researching Your Connections: Before meeting someone, learn about their background and interests. Use platforms like LinkedIn to find common ground.
- Participating in Relevant Conversations: Engage with others in your field at networking events or online forums and build relationships based on shared interests.
Action Step: Engage in networking and establish connections within your industry to expand your opportunities. Consider answering questions on platforms like Quora to position yourself as an authority.
Quality over Quantity
Focus on building authentic relationships instead of merely increasing contact numbers. Friendliness and approachability are invaluable assets in any networking scenario.
Conclusion: Navigating the Path to Financial Independence
The journey to financial independence requires a blend of calculated financial moves, strategic networking, and dynamic job search approaches. By embracing the latest in travel rewards, reshaping job market strategies, and fostering authentic relationships, you can actively steer your ship toward financial independence.
Remember, communication fosters understanding and support—essential tools in both personal and professional relationships. By implementing these actionable steps, you can create a solid foundation for achieving the life you desire.
Dive deeper into the financial independence movement by exploring more at ChooseFI.com and consider participating in their vibrant community for further resources and encouragement along your journey.
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What You'll Get Out Of Today's Show
- After four weeks of hosting the live weekly show via Stereo, Brad and Jonathan continue to refine the format and come up with ideas for improving the experience.
- Jonathan needs some specialized dental work performed and the dentist he found is out-of-network. Insurance isn't going to cover much in this situation, but thankfully, it doesn't put him in financial straits.
- As they reminisce about being children of the 80s, Brad and Jonathan come to the conclusion that time moves on and the rule book changes. If you are stuck in a world that doesn't exist, you aren't going to be successful. Be aware that things change and be open-minded.
- Google is coming out with its own certificate programs in project management, data analytics, and user experience design through Coursera what will cost most around $250. Google is partnering with 130 other companies to partner with them to hire the graduates of these programs.
- In past decades, a college degree may have mattered, but in 2020, employers are looking for what can you do or what have you done, not necessarily the degree.
- Listener Colin called in to say that he started a side hustle last year teaching people computer programming and asked about how to go about finding new clients. Jonathan says that as a business owner, Colin has a product he has created and needs to figure out how to deliver that product, ensure a great experience, find new customers, and finally scale and grow the business.
- For Colin's business, is there an awareness problem or is there a problem converting awareness into sales? Brad says something that has worked for him is making connections within his niche and be authentic. Jonathan suggests establishing yourself as a subject matter expert using LinkedIn and Quora and a blog or podcast to begin attracting people interested in the subject.
- Another thing Colin should do is demonstrate his course has value, get testimonials, and constantly test and iterate.
- Marjorie called in because she knows how much Jonathan loves the Paprika app, but recommends a similar app called Whisk. It can download recipes from the internet, but you can also take pictures of recipes to upload to the app. Plus, it organizes recipes really well, has a weekly meal planner, and can create a shopping list.
- The next caller said she loved the coaching call that Jonathan did with Corrine and would love to hear more of those kinds of episodes. Jonathan worked with Households of FI member, Corrine to map out her FI number. Jonathan recommends watching the video for that episode because he shared a lot of screenshots while working with Corrine.
- Similar to the recipe app Whisk, Brad said that he could have saved money on his recent CT scan using MDSave. Instead of being charged $2,093 for his scan, a provider found through MDSave would have cost him just $289. He was eventually able to negotiate the bill down to around $1,300, but that is still much higher than he needed to pay.
- The next caller from LA is a side hustle addict. He has been self-employed his whole life and realizes that his nest egg is very small. He wants to know where he should focus his investments for retirement.
- The caller has a choice between a SEP IRA, a Simple IRA, and a solo 401K. There may be some advantages to using one over the other depending on the size of the business. Brad has set up a SEP IRA and thinks that a solo 401K would have allowed him to defer more money by contributing as the employee and employer. A SEP IRA only allows for employer contributions.
- If he still meets the income thresholds, the option for a Roth IRA may also be available. There is little downside to contributing to a Roth IRS since contributions can be withdrawn tax and penalty-free.
- The next caller shared what they would do if looking for a career move. For their technology and financial services company, they would focus on people and find out everything they could about them so that they could engage in relevant small talk. This advice follows nicely with the points Chris Hutchins made in episode 121R.
- A weak point for a lot of is how can you build a system around building authentic relationships over time? This was something discussed with Jordan Harbinger in episode 233.
- The next caller wants to know how to account for a mortgage that you expect to pay off during retirement when calculating your FI number. Jonathan plans to pay his mortgage off before beginning to drawdown his investments, however, he calculates his FI number based on what his life costs with a mortgage. It gives him a bit of a fudge factor.
- Your FI number is calculated by taking your annual expenses and multiplying it by 25. If you plan on paying your mortgage off before retiring, remove the payment from your annual expenses. While principal and interest can be eliminated, taxes and insurance will not be and should be included in your annual expenses. A multi-phased approach will need to be employed to calculate your FI number if planning on paying off the mortgage during retirement.
- Listener Phil called and left a voicemail asking about tax tips for those with side hustle income and how to balance work-life, side work, and life in general.
- Jonathan thinks turning a hobby into a business is a great way to explore something within the confines of a business entity. Brad's tax tip is good record keeping and keeping things separate from your personal accounts.
- Jonathan also likes the thought of putting advertising expenses on a business card that earns travel rewards, like the Chase Ink Business Preferred, since advertising is a legitimate deductible business expense.
- A work-life balance can be tough. Jonathan says the biggest misconception is that you're always going to be balanced all of the time but there will be sprints and tilts. It's how it averages out over time.
- Experiment and test a bunch of different things, but don't put a massive amount of time into something with no ROI or thought to the balance and other areas of our life.
- If you aren't going to be in balance and there are other people relying on you, have a conversation about it. Communication will always buy you more room.
- Map out the cadence to your life and realize where you have control of your time. You might have a boss that needs to sign off on it, but if you work for yourself, you don't need to ask for permission to make time.
Resources Mentioned In Today's Conversation
- ChooseFI Episode 121R How to Get Any Job
- ChooseFI Episode 304 Mapping Out Your FI Number | Households of FI with Corrine
- Coursera
- MDSave
- ChooseFI Episode 274 Tax Planning 2020
- ChooseFI Episode 289 The Roth 401K
- ChooseFI Episode 233 Networking with Jordan Harbinger
- Join us for the next live show at ChooseFI.com/live.
- ChooseFI.com/cards
- ChooseFI Episode 168 Make Time
- Learn why the Chase Sapphire Preferred is one of our favorite cards.
