Retire Early...For You
Episode 278
Episode Guide
Episode Timestamps
Episode Show Notes: ChooseFI Podcast - Episode Featuring Amy Blacklock
Episode Summary
In this episode, hosts Jonathan Mendonsa and Brad Barrett welcome Amy Blacklock, founder of Women Who Money, who shares her inspiring journey towards financial independence. The discussion centers on the power of starting late, resilience in overcoming financial struggles, and practical insights for changing one's financial trajectory at any age.
Key Topics Discussed
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It's Never Too Late to Start
- The importance of beginning your financial journey regardless of age.
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Amy's Wake-Up Call
- Amy shares her experiences of a financial realization that led her to questioning her spending habits and striving for financial stability.
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Breaking Free from Consumerism
- Recognizing the traps of trying to keep up with others.
- Understanding that most people aren’t achieving their financial goals due to excessive spending.
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The Power of Communication
- Importance of discussing financial goals with partners and creating a unified vision for the future.
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Finding Financial Independence
- Strategies Amy employed to change her lifestyle, increase savings, and reframe her relationship with money.
Actionable Takeaways
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Evaluate Spending
- Take time to assess your current spending habits and start cutting unnecessary expenses.
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Communicate Financial Goals
- Initiate open discussions with your partner about financial aspirations and plans to achieve them.
Key Quotes
- "It's never too late to start; the key is to get started."
- "I was caught in the trap of trying to keep up with everyone."
- "Once trapped in that cycle, escaping becomes difficult."
- "Even if you're 55, start today."
Speaker Highlights
- Amy Blacklock: Entrepreneur and founder of Women Who Money, Amy shares her experiences and strategies for achieving financial independence.
- Brad Barrett: Co-host of ChooseFI, Brad provides insights and perspectives on the financial independence movement.
Related Resources
- Mr. Money Mustache Blog: Visit here for more insights on financial independence.
Discussion Questions
- "What are some personal habits that keep you in a cycle of spending?"
- "How can communication improve financial decisions in a household?"
Podcast Description
Join us for a conversation with Amy Blacklock, who shares her transformative journey toward financial independence. Discover practical tips and personal insights that can inspire your own path to financial wellness.
Email Campaigns
- "It's never too late to start your financial journey! Join Amy and the ChooseFI team as we explore actionable steps to achieve your financial goals."
Podcast Intro:
"You're listening to ChooseFI. The blueprint for financial independence lives here..."
Podcast Extro:
"You've been listening to ChooseFI Podcast, where we help middle-class America build wealth one life hack at a time."
Embracing Financial Independence: It's Never Too Late
Financial independence isn't just a journey for the young or the financially flawless; it’s a path accessible to all, regardless of age or past mistakes. The inspiring story of Amy Blacklock serves as a testament to this. By emphasizing resilience and adaptability, you too can take steps toward financial freedom, all it takes is the willingness to learn and change.
Understanding Financial Independence
Financial Independence (FI) means having sufficient wealth to live without the need to work actively for basic necessities. Many find themselves trapped in a cycle of consumerism, continually chasing the latest trends and material possessions, believing they equate to happiness. This mindset often leads to financial pitfalls and missed opportunities for wealth building.
The Trap of Consumerism
Many individuals, especially those living in affluent environments, often feel the pressure to "keep up with the Joneses." This pursuit of status can cloud judgment regarding what truly matters financially. Unfortunately, what might appear to be a life filled with luxury is often a facade hiding financial struggles. Recognizing that not everyone leads a financially sound life can be a jarring yet liberating wake-up call.
Evaluating Your Current Financial Situation
To embark on your journey toward financial independence, the first step is a thorough evaluation of your spending habits.
Identify Your Spending Patterns
- List Your Expenses: Document all your expenses to gain a clear picture of where your money is going.
- Cut Unnecessary Costs: Assess each expense—identify areas where you can cut back, such as dining out or subscription services.
By understanding these patterns, you can identify waste and begin changing your financial trajectory.
The Importance of Lifestyle Changes
Making significant lifestyle changes is vital for building wealth. It often involves embracing frugality and learning to prioritize your financial goals over temporary gratification.
Embrace Frugality
Embracing a lifestyle of frugality does not mean depriving yourself. It involves making conscious decisions about spending. For instance:
- Cook at Home: Preparing meals is often healthier and more economical than eating out frequently.
- Shop Smart: Utilize coupons, seek sales, or consider buying second-hand.
These small adjustments can lead to substantial savings, allowing you to redirect funds toward your financial goals.
Communication is Key
Open dialogues about financial goals with your partner are essential. Many financial disputes arise from a lack of communication. Establishing a foundation of trust and transparency can lead to better financial decisions collectively.
Strategies for Effective Communication
- Set Regular Financial Check-Ins: Schedule monthly discussions about financial goals and spending progress.
- Be Honest About Financial Mistakes: Acknowledge past errors together without judgment.
Having these conversations ensures that you both share the same vision for your financial future.
Setting Realistic Goals
Establishing tangible financial independence goals can provide motivation and direction.
Create Actionable Steps
- Define Your FI Number: Consider how much you will need to retire comfortably and calculate what this means on a monthly basis.
- Break It Down: Create smaller, manageable goals (e.g., saving a specific amount every month) to build momentum.
By setting achievable benchmarks, you can steadily progress toward your ultimate financial independence.
Embrace Change and Adaptability
Realizing it's never too late to start your journey toward financial independence is empowering. Many think it's too late as they approach their mid-life, yet, with persistent effort, significant changes can occur within just a few years.
Learning from Others
Seek inspiration from those who have successfully transitioned into a financially independent lifestyle. Their stories often illuminate pathways you can take and encourage you to keep moving forward.
Seeking Financial Education
Investing in personal finance education is crucial. The more informed you are, the better decisions you’ll make regarding your money.
Resources for Financial Literacy
- Read Personal Finance Blogs: Websites like Mr. Money Mustache provide insights into living frugally and saving.
- Participate in Financial Workshops or Seminars: Seek local community classes or online webinars.
These resources can provide you with practical advice and strategies to improve your financial standing.
Staying Motivated
Maintaining motivation is essential. Celebrate your achievements, no matter how small, and keep your financial goals visible. Create a vision board or tracking system to visualize your progress toward financial independence.
Overcoming Challenges
Financial independence is a journey filled with obstacles. Embrace these challenges as learning experiences. When setbacks occur, stay adaptable, and remember that they are a natural part of the process.
Conclusion: Your Journey Starts Today
The path to financial independence is unique for everyone, but the underlying principles remain the same. By evaluating your financial situation, embracing frugality, improving communication, setting realistic goals, and continuing your financial education, you can build a secure future.
Remember, embarking on the journey toward financial independence is about mindset, persistence, and taking action. It’s never too late to get started. Take that first step today and embrace the potential for financial freedom that awaits.
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Amy Blacklock
Website: Life Zemplified
Website: Women Who Money
Email: [email protected]
Email: [email protected]
What You'll Get Out Of Today's Show
Don't fall for the misconception that financial independence is just for 20 and 30-year-olds. It is for everyone at any age and it's not too late to get started.
Amy had a wake-up call in her early 40s. With a meager net worth, through flexibility and adaptability, she reclaimed decades of her life.
Amy describes herself as a trier of many things. She used to wonder how other people do it. How do other people drive new SUVs, live in a large home, dine out, and save for their kids' education and their own retirement? She says most people don't do it all.
You have to select for yourself what's important and save wisely to spend on it.
Previously, Amy was trying to keep up with everybody else, thinking that she needed it all to be happy. She was buying all the stuff but wasn't saving for the future.
She heard something on the radio one day about needing to save a million dollars for retirement and thought it didn't seem possible to get there. She and her husband were in their 40s and she knew something had to change.
Amy began looking at what other people were doing but what she didn't know if that everybody was just like her, trying to keep up and not saving for the future.
She had grown up with a single mom who had a lower-middle-class income. She always wanted more because she felt like she was always lacking. When she got a job and was earning money, she worked hard and thought she deserved all those things everyone else had.
She had fallen into the trap of thinking money equals happiness and once in, it was hard to get out of that trap. While she had a mortgage and car loans, she didn't have much other debt. However, she was spending almost everything coming in and her net worth wasn't moving forward much.
After a divorce a the age of 43, Amy's net worth was approximately $150,000. The desire to get out of a job she hated and start her own business lead her to examine her spending.
She began researching methods and ideas for saving money where she found Mr. Money Mustache and many other personal finance blogs and websites.
Though Amy realized she and her new husband were older, she thought that they could make significant changes and create the financial space they needed to retire early for them.
Trying to keep up with everybody else wasn't getting them anywhere, but she might be able to learn and try to keep up with the people saving money and retiring early even if they were far younger.
Originally, they had been thinking they would don't retire until 67, so retiring in 10 years in their 50s sounded much better.
Trying to convince her husband to get on board with the changes that needed to be made meant that his habits had to change. They had to reframe their thinking. Amy says the Dave Ramsey quote sums it up, "Live like no one else now, so you can live like no one else later."
They realized that despite chasing happiness by going out to dinner and buying things wasn't actually making them happy. Cutting back didn't feel like deprivation because they weren't things that weren't meaningful or lighting them up.
Amy and her husband reevaluated where their money was being spent. She thinks making communication a foundation of their marriage was essential. It was hard to talk about what they wanted their lives to look like 10 and 20 years down the road and how they were living five years ago wasn't going to get them there.
Using the 25 times expenses rule, Amy guessed they would need a million dollars to retire and targeted 2024 for retirement.
To do it, they cut expenses, got rid of their newer vehicles, and refinanced to a 15-year mortgage. To increase their incomes, they both changed jobs twice.
With all of the changes they made and a phenomenal stock market, they have been able to cut their timeline to financial independence down. They considered themselves FI in 2019, just six years from when they started.
Amy was able to increase her income during those six years by finally completing her degree after going to school part-time while also working. It gave her the confidence to try and find a better paying position.
Because she was a hard-worker and stayed in touch with people on LinkedIn, she was approached about a new position. She then negotiated significant salary increases.
To prepare for salary negotiations, Amy used Glassdoor and LinkedIn premium to see what other positions were paying.
Amy says you have to believe it's possible never too late to start. You have to be flexible, willing to embrace fear and go for it. Give up the ego and be willing to learn, even from a 25-year-old. Stop worrying about what other people think.
Stuff isn't going to make you happy, but having your family safe and secure and being able to retire will. The changes Amy made were sacrifices, they were changes that gave her options later.
If you're in your 40s and you've never questioned drift, there's probably 30% you can cut without missing it.
Initially, Amy and her husband cut too far, but then they added some things back in. Now they mindfully choose when to go out and enjoy craft beer or eating out.
Amy says happiness ebbs and flows. Her happiest moments are with her grandkids. She works a lot on her passion projects which brings her a lot of joy.
Her blog, LifeZemplified.com shares a little about her story, what she is doing, and how important it is for others to take action.
WomenWhoMoney.com was started as a safe space for women to learn about personal finance from a female perspective, though 40% of their audience is now male.
The content on Women Who Money was leveled for Beginner, Intermediate, and Advances personal finance knowledge with over 400 articles.
