Our first question of the month comes in from Christie from Cincinnati:
I love the podcast. I have two questions.
How long have you been on Dave Ramsey’s Baby Step 7?
We are on Baby Step 7 with 1 paid-for rental. We are considering selling the rental property and just investing in a mutual fund instead.
I know you keep talking about buying a rental, but after 8-10 years we are finding it really isn’t making as much money as we think the stock market could. And we won’t have to worry about tenants calling with a problem.
The FIRE movement (Financial Independence, Retire Early), has become a wildly popular concept over the last decade, but it’s also become wildly controversial.
Today, Andy talks with Lisa Harrison, the writer and podcast host behind Mad Money Monster. She’s had her story featured on major media outlets like Yahoo Finance, MarketWatch, and Forbes. She started off in love with the FIRE movement and idea of early retirement but then had a change of heart.
We’ll be diving into how she discovered FIRE, what changes she made to her lifestyle and what caused her to abandon the idea of early retirement altogether.
There comes a point in a parent’s life when they want to own more of their time and spend it with the ones they love the most, but financially, it’s not always the easiest to accomplish.
Chris Mamula is my guest today. He faced this challenge when he became a new father and used his high savings rate and passion for his young family to achieve financial independence and retire at age 41.
Saving for our future financial independence important. Embracing the present moment is important as well. So how do we find a balance that helps us achieve both goals?
I’ve invited Angela Rozmyn on the show today and she’s going to share her family’s journey, trials and tribulations with this conundrum.
Angela is a mother to a 4-year old son and has been married to her husband for the past 10 years. She writes about the balance of saving for the future and living for today on her award-winning blog Tread Lightly, Retire Early. Her story and advice have been featured in major media outlets like MarketWatch, GoBankingRates and Business Insider.
She also hates most seafood but loves her pets and the outdoors.
When we’re pursuing financial independence, we need to discover the right savings rate for our family. This is something that Nicole and I have had a lot of conversations about. How much is too much to save? And how little is too little to save?
I invited Scott Rieckens on the show because he’s been on a very similar (big-screen, public) path with his wife, Taylor. Scott is a 2-time Emmy nominated filmmaker, Executive Producer, and Co-Star of a new documentary called Playing with FIRE. This is a documentary that uncovers the growing community of frugalists, mustachians and valuists choosing a path to financial independence and early retirement.
Kristy and Bryce are Canada’s youngest retirees. They used to live in one of the most expensive cities in Canada, but instead of drowning in debt, they rejected home ownership. And what resulted was a 7-figure portfolio, which has allowed them to retire in their 30s and travel the world.
Their story has been featured in the New York Times, Forbes, Huffington Post, amongst many other publications. They’ve written a book on FIRE called Quit Like a Millionaire and it’s out this month.
In order to achieve financial independence, you need to first understand what your annual expenses are. That’s how much money you need to live comfortably every year.
Your annual expenses can include things like housing, transportation, food, utility bills, entertainment, travel and the many other things that make your life … well, your life!
For our family, I’ve found that number to range between $60,000 and $70,000 per year. That number is after taxes and it doesn’t include money for saving and investing.
With lower annual expenses, it would definitely be a lot easier for our family to become financially independent.
If we’re using the 4% rule to calculate how much to save to become FI, then we’d need $1,500,000 – $1,750,000. Considering I have around $4,000 in a taxable brokerage account at 37 years old, that’s going to take quite a while!
There’s a movement taking place amongst our generation. A movement that says, “Don’t work at a job you hate just because it pays well.”.
Today, I interview someone who, after 14-years of working the corporate life, has decided to leave their full-time job in order to pursue a new life of purpose … in Hawaii.
Erica Gellerman is my guest today. She’s a marketing consultant and creator of The Worth Project, a personal finance newsletter, blog, and podcast. She writes and contributes to major publications like Forbes, Business Insider, and NerdWallet.
She’s also a mother to a 1-year old boy named Henry.
I don’t know about you, but when I get a pay raise at work I feel incredible. I get a giant smile across my face because I feel like my hard work has finally been validated. All the extra hours, emails, phone calls, presentations and the unwavering commitment to my company’s success has (literally) paid off.
But it’s not as easy as just showing up to work one day and your boss calling you into his office to say “Hey, you! You’re getting a raise! Let’s party!” If only it were that easy, right?!
We have to work hard, put in the hours and follow the right steps.
I’ve only been working in the corporate world for 15 years so I know I still have a lot to learn. What I do know is what’s worked for me so far. Here are 7 important steps that have taken my career from 5-figures to 6-figures.