The Financial Independence Plan Anyone Can Use to Retire Early

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Күн бұрын

Episode #542
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Want a personalized financial independence plan that’ll get you closer to early retirement? Well, we’ve got just what you’re looking for! On this second annual “Financial Independence Day,” Mindy and Scott are sharing a new way to get you to financial freedom faster. With so many applications for our “Finance Friday” series, we decided to make a downloadable that allows you to do your own personal finance review AND build a faster path to FIRE!
But before you start filling out your financial independence plan, listen to this episode. We review some common traps and pitfalls that have stopped our Finance Friday guests from achieving financial freedom. We’ll explain exactly what each net worth bracket should focus on, how to get through the saving and investing “grind” to FIRE, and the biggest mistake most people make that will STOP them from ever finding financial independence.
00:00 Intro
01:59 FIRE for DIYers
04:45 Your Financial Snapshot
15:25 Opportunities for FI
23:08 Avoiding the “Middle-Class Trap”
32:58 Getting Through The “Grind”
39:32 You NEED Both of These
44:24 Changing Your Path to FIRE
52:07 Happy FI Day!

Пікірлер: 35

@lilibethvilella 12 күн бұрын

Could u do an episode for women retiring alone? 50+?

@johnl9135 12 күн бұрын

I have notice a lot of people came over to the show have a big shovel. People with big shovels, it's more easier for them to catch up to FI. I hope to see more people with a lower income from $30k - $80k how they make a comeback to FI from their 40s, 50s or 60s.

@Tpres1420 12 күн бұрын

Yes I agree! I’d love to see ppl that make 35-50k on here

@scotttrench4169 12 күн бұрын

@@Tpres1420 I think that we will find that for most who do catch up to FI without a big shovel... find a way to get a bigger shovel. Many people start at $35K per year. But, few end their successful journey to FI there. The MEDIAN pay for someone with 10 years of workplace experience is $54K. Someone who is consciously attempting to become a millionaire has a predisposition to maximize earnings along the way and has a good chance to outpace that. A great way to think about it is this: If you accumulate a $1M portfolio in 10 years, or are on track to, that is like managing a $1M budget for a company, or $1M in resources. Someone capable of accumulating and managing $1M in capital is unlikely to be valued at $35K - $50K per year at their job. They get raises, or find other opportunities, like side hustles and other businesses that materialize for them. I cannot find quality people to manage $1M budgets at BiggerPockets for $35K per year, for example. So what inevitably happens is even when we talk to people who begin their journey with median or lower incomes, they almost never END a successful money journey with that median income. Then, they get called unrelatable, even when, in the context of any feasible catching up to FIRE journey, theirs is the logical, and likely in the context of that journey, median, outcome.

@JustAnotherNorthman 12 күн бұрын

@@Tpres1420Exactly: People with low salaries starting in their mid forties and reaching FIRE by their mid fifties. That is something that I really would like to see more of.

@KeeptheChange41 12 күн бұрын

My wife and I are 4 yrs into our journey and have made around 120 k yr combined.

@Monkey-oy1us 12 күн бұрын

Read Pathfinders from JL Collins. That book is full of those stories

@irenesdiary6943 6 күн бұрын

I started my FIRE journey 6 years ago I was 35 at that time. Now I have about $830K Networth. I just bought Tesla Y last year with cash. i felt a little guilty because that was my first NEW car that I ever bought and I paid cash for it. This episode made me feel better knowing that I should be enjoying life. I am almost at my goal at 1 million dollars networth.

@KSymoneCafe 6 күн бұрын

This is inspiring, I am 35 now. Any tips from your journey?

@irenesdiary6943 6 күн бұрын

@KSymoneCafe First make a budget know how much coming in and try to cut a lot of uncessary expenses out. Pay off your debts (anything over 5%). Then open Roth IRA and start investing in index fund. I drove my old car until recently. You can do it!

@WorkdaySounds 4 күн бұрын

I am almost 35. Curious on what your income was or how much you were investing per month during that time?

@KSymoneCafe 3 күн бұрын

@@irenesdiary6943 thanks!! 😊💪🏾

@tpinellas4141 12 күн бұрын

I love Scott's breakdown of the Middle Class Trap. I woke up from this a few years back and was able to make the adjustments just in time. It certainly takes a bit of deprogramming but it's doable and worth it when you recognize you want something different. It's the road less traveled.

@tylercampbell6058 8 күн бұрын

That grind is so real. It’s fun and exciting at first and there is a ton you can do to move the needle but at around 15x your annual expenses it gets tough to keep moving the needle with your savings. Have to keep your savings rate up at that point though because it’s like the follow through when your throwing a baseball or hitting a golf ball. But by this point you’ve likely optimized almost everything you can. Feels like you’re trying to boil water (pronounced bowl water if you come from where myself and Brian Preston come from) and the water is almost at 100 degC but even after it hits 100 you have to wait for the enthalpy to increase to get that state change before it starts rolling. Nothing to do but keep on grinding for 6 more years. (Looking for 30x with CAPE ratios so high).

@CITIGIRL07 11 күн бұрын

Love this episode! Will seek to be on finance Fridays

@melinda858 12 күн бұрын

❤️you all from Bigger pockets !!

@lilibethvilella 12 күн бұрын

Love your energy & passion. U guys are one of my fav go to as a new single divorced mom starting over at 52 ❤

@Chris_Heather_livingbestlife 12 күн бұрын

2033 and later: The age to begin RMDs will increase to 75 for those who turn 74 after December 31, 2032. For me at age 52 it will be 75

@Jpsantos94 2 күн бұрын

What is everyone's favorite FIRE investments? Do you buy dividend funds such as SCHD and DGRO for passive dividend income, or do you prefer total market funds like VTI and VXUS and selling shares for income? I would love to hear how you guys are doing it! Thanks!

@lilibethvilella 12 күн бұрын

Thank u for explaining middle class trap. Got it! Makes sense ❤

@mauranitka2082 12 күн бұрын

It's ok Mindy, I'm forever 23. I forget that I'm really 52!

@wilty5 8 күн бұрын

I’ve always heard your home is not an asset, in fact the word “mortgage “ when translated means “dead pledge”.

@diniquebunche4438 11 күн бұрын

I’m interested in becoming a guest on finance Friday.

@BiggerPocketsMoney 6 күн бұрын

You can apply to be on the podcast at biggerpockets.com/guest

@wilty5 8 күн бұрын

Experts disagree on whether or not you should pay off your mortgage and give examples of why you should.

@anchalavasthi4881 11 күн бұрын

How do I become part of finance Friday consult?

@christinab9133 11 күн бұрын

❤❤❤

@lilibethvilella 12 күн бұрын

Scot I have 30k in a HY savings. I’m 52, have 400k in equity, primary home; would u put it in vanguard S&P 500 or buy a property in another state rental income? I’m in unaffordable miami. 😮