Ten Core Money Rules to Optimize Your Finances

Life in the suburbs can look like a cliché to some. But Greg has managed to avoid the “McMansion” lifestyle and learned from an early age that investing in experiences is a better path than spending on the flashier things in life. His podcast, Suburban Folk, touches on all things suburbia, from parenting, to home improvements, to personal finance. In this episode, we dig into his story and identify a number of ways to help save you money and optimize your life. Podcast Wanted to discuss his varying interests related to growing up in suburbia Enjoys travel, health/fitness, DIY, finance, parenting Finances have an impact on each of those areas Lifestyle and background Has always been an aggressive saver of money His father retired early at 52 Has tried to manage his debt and minimize expenses Learned to prioritize travel and time with family from his parents Dave Ramsey Appealed to his competitive side, comparing progress to others The emotional side vs the math side Learned about the baby steps Attended a seminar to learn more and learned about coaching courses Will complete coursework soon and is excited to help people with their finances Coaching will be based on the client’s goals, from paying down debt, to earning more money Financial Independence Has always been debt averse, took out minimal school loans His perspective on FI is allowing flexibility to raise his family they way he sees fit Wife had med school debt (six figures) and focused on paying that off before they allowed any lifestyle inflation Having kids also triggered a desire to pursue FI Missed the birth of his daughter while traveling for work Wants to be around to experience his kids’ lives Paying off your home early People become comfortable with the idea of a 30-year mortgage It doesn’t have to be that way if you re-prioritize paying it off early Can’t rely on home appreciation, using 2008 market crash as an example Increasing your income with side hustles and networking Earned a scholarship in college based on volunteering for theater program Attempted to sign a recording contract in college and learned about evaluating legal documents and being aware of being scammed Earned money giving guitar lessons, refereeing soccer games, built websites on WordPress, earned form a rental property, runs a small consulting business and has also earned money from editing podcasts Likes having additional sources of income as a backup and to supplement his primary income Extra money can go right towards savings, or can cover daily expenses and allow your primary income to fund savings and retirement General advice Believes it’s never too late Has learned a lot from reading, loves using the local library to learn for free Don’t make excuses, if you are motivated you can make a plan that works Travel goals Top destination is Australia, loves the band Silverchair which is from Australia Would like to return to Europe to explore more Stretch goal is to visit all the continents Finds that the best travel experiences are when you step away from the standard tourist destinations Follow Greg Website/Podcast: https://suburbanfolk.com/ Email: [email protected] Phone: 717-856-5709 Offering free consultations as a financial coach

People tend to want to fit in. To be accepted. To be normal. I've spent much of my life in pursuit of this. But I've finally realized the downside of trying to be like everyone else. Following the path others have laid out can have negative consequences, both personally and financially. From accumulating debt, to adopting unhealthy lifestyle habits, it's easy to fall into the same patterns as everyone else. It feels normal, so it seems acceptable. But you have the ability to determine what's valuable in your life and to make your own decisions. I outline several areas where I've tried to adjust my habits in order to improve my financial situation as well as my personal life. See full show notes My story Most of my life I’ve wanted nothing more than to be normal. I’ve realized as I’ve gotten older that being normal isn’t always a good thing. What is normal? “Conforming to a standard; usual, typical, or expected.” Why do people want to be normal? Acceptance, fitting in Downside Avoid taking risks Without risks you can’t grow It hides your uniqueness Areas where being normal can have negative consequences: Debt Student loans Mortgage Credit cards Buying and leasing new cars Don't get into the habit of getting a new car every 5 years Used cars are more affordable Updating your house HGTV generation Lowes and Home Depot commercials There’s always another upgrade Some things are necessary, you don’t want to neglect your home But many are purely aesthetic – bathrooms, kitchens, new TVs Would you rather spend $15-20k on a new kitchen or keep that as an emergency fund or take a family trip and invest the rest If you have the money, go for it But don’t sink further into debt Eating low quality food Fast and easy Often cheap We see it in commercials and it normalizes the behavior Watching too much television I am by no means anti-television But Netflix has really changed things It’s now normal to binge watch YouTube is another example Getting married and having kids Marriage can be a wonderful thing Having kids is an amazing experience But do it when you are ready – not because you're approaching a deadline Or don’t do it at all Being on your phone constantly It’s a terrible habit and we all know it You see it everywhere so it feels normal “What grade were you in…” from 12-yr old Takeaways Be intentional with your choices Identify what is valuable – time, experiences – not stuff Remember the value of patience and discipline – something we teach kids

Facing a mountain of debt may seem overwhelming, but with the right plan of attack, that debt can be cleared more quickly than you think. Derek Sall from Life and My Finances was able to become debt-free (multiple times) through tremendous focus and hard work. His journey is one of highs and lows, but he has stayed determined over the years and is now well on his way to being financially independent. Derek's story: Started his debt journey with student loans Realized he and his wife were sinking further into debt and decided to tackle the debt of face bankruptcy Looked for side-hustles to make extra money and became very focused on paying down debt Was able to pay off $18,000 in debt in 14 months and became debt-free Relationship challenges: Moved from Florida to Michigan and marriage problems escalated Bought a house for $75k and paid it down and had some equity They had very different spending habits (she was a spender, he was a saver) Divorce pushed him back into debt and he was emotionally focused on clearing that and cutting ties with his ex Found a way to pay her $21k in six months to clear his commitment to her One unusual way he made money was flipping cars Getting back out of debt: Shifted his debt reduction focus to the house that was now in his name Paid off the remaining $55k of his house debt in under a year Along the way had trimmed many of his expenses (phone, food, etc.) Article: Living on Only $460 a Month? Really? https://lifeandmyfinances.com/2014/09/less-500-expenses-month/ Felt that paying off house was worthwhile, rather than putting more into investing and saving The main reason was the emotional lift that comes with becoming debt free On the path to FI: Has since remarried and is on the same page with her when it comes to finances Pooled their money to buy a rental property for $90k Property has appreciated in value and has monthly cash-flow from rental income Bought another property and flipped it for a $27k profit Sold his original home and used the profits from that along with the flipped house to buy a new primary residence  Relationship with current wife has been very open and healthy when it comes to money Currently working towards saving for kids to go to private school Would like to cover half the cost of college for kids Want to reach financial independence to allow options, may or may not retire early Would like to purchase additional rental properties in the future Benefits of hosting a blog: Has maintained his blog over the last 10 years It has been a way for him to write about his life and get his thoughts on paper Has been a source of income as well, anywhere from $7k-$30k per year Has connected with other finance bloggers and has benefited through that network Advice for late starters: Keep it simple and don’t overwhelm yourself with finding the perfect method He’s a fan of Dave Ramsey’s approach Prefers the debt snowball method to provide emotional motivation Start with $1,000 in savings for emergencies Where to follow Derek: Website: https://lifeandmyfinances.com/ Twitter: https://twitter.com/lamfinances Facebook: https://www.facebook.com/LifeAndMyFinances/

Achieving a lofty financial goal requires a good understanding of why you’re working towards it. For Ted and Claire, retiring early was an important achievement that allowed them to spend more time together, enjoy travel experiences and opened the door to them helping others. As early retirees who have embraced the FIRE movement, their passion is guiding people towards reaching retirement goals through financial independence. Their podcast, Later 2 FIRE, has a focus on guiding those who are starting their journey to FI later in life. They have an amazing story to tell that is full of advice and inspiration. In this episode, we discuss the core principles of pursuing FIRE. Expanded show notes Back story Claire worked for 30 years in corporate finance, retired in her early 50s Their interest in FIRE is partially driven by an interest in increasing financial literacy in America Ted came from a blue collar family and always had an interest in savings and the stock market After college moved into the tech industry and eventually met Claire Learned they had similar money habits, both owned real estate, had good spending habits and saved The retired early together 10 years ago, mostly because Claire wanted to retire early Goal was to retire so they could spend more time together Advice for couples navigating their finances Compromise is important, come to an understanding and identify financial goals Transparency and communication, identify each person’s strengths in order to identify roles They chose to keep accounts separate, but were open with each other about their balances They consider their investments to be combined even though they are managed individually Even if one person in the relationship primarily manages the money, the other person should learn and participate as well Philosophy on FIRE and the benefits of retiring Retirement is less of the focus, it’s more about having options They look at it as retiring earlier, rather than as early as possible Being able to retire early has removed a lot of stress from their lives They have more time to spend together and time is priceless Not having to work has allowed them to focus on other experiences and projects Core Principles of FIRE There is a difference between a principle and a practice, they focus on principles More of a foundation to allow people to open their minds to seeking financial independence Important to have a growth mindset rather than a fixed mindset and be open to change Need to have a healthy relationship with money, live below their means and focus on saving Take your time before making large purchases, think it over and research Travel has been an expense that they value, rather than material possessions Understanding your “why” will help get you through the difficult part of the journey Identify the problems you want to solve and decide if you are willing to do things differently than others Later2FIRE episode 12: The Principles of Later to FIRE Where to follow Ted and Claire Twitter: @retirehoppy Website: https://firewalkers.co/ Podcast: https://firewalkers.co/podcasts/

Episode 15: For anyone who has struggled with money, I pulled together a list of core rules that will help get your finances on track. While I don't claim to be a financial expert, I am part of a broader community of people who are all focused on living a financially responsible lifestyle. So these bits of wisdom are pulled from that pool of people. A recent Twitter thread started with a simple question: What are your top 3 money rules? I highlight ten of these responses and add my thoughts. Email from new listener Discovered the podcast and has found inspiration and motivation from the stories It’s important for people to hear that others are coming from the same place I love that she’s looking to live with intention One of the best parts of this is the community and the support Ten Money Rules @partnersinfire: Pay yourself first (invest & save) @HannahHakodesh: Cancel any subscription that you don’t use like kindle app @matthewlee7: 3 month liquid, non-invested emergency fund minimum @IQbySusieQ: Always pay off my credit card bill. @KUWTBulls: Prioritize increasing your income over cutting spending @alifeonadime: ALWAYS take the employer match on retirement! @fightToFIRE1: Think about price/quality, don't just blindly go for the cheapest @joneytalks: Health before wealth @MichLovesMoney: Never, ever have debt. None of it is "good" @adimesaved: Budget. Budget. Budget Blog post: 51 eye-opening money rules to live by The FI after 40 Manifesto The four key points I make in that piece are commitments I make to myself and to my audience. I know where you’re coming from. I might not share your exact story, but I know the feeling of not quite living up to the potential you know is inside yourself. I’m not your guide. I’m your partner on the journey. I am determined to move forward and make gradual progress. I will share that progress so you can see that it works. I will continue to fail. But I will do so while trying to improve my life and I will learn and grow. I will stop failing through inactivity and toxic avoidance. I will share successes and motivation. I want to hear from others who have learned and are making progress in life. That message will be broadcast loud and clear. Blog post: The FI After 40 Manifesto

There are obvious financial benefits gained through pursuing financial independence. But don't overlook the intangible benefits to your life, both personally and professionally. I speak to Maggie and Mike from the Friends on FIRE Podcast to hear their perspectives on how their work in corporate America has both allowed them to achieve financial independence, and also how their path to FI has improved their confidence and performance in their careers. Mike and Maggie’s background stories Mike Has always been frugal and wanted to retire early Wrote a book about personal finance: Your New Relationship with Money Approaches spending in a disciplined way, values travel over other expenses Maggie Grew up fairly frugal, appreciated earning money on her own at a young age Parents encouraged her to save money, paid many of her own expenses at a young age Learned about the FIRE movement as she got older and connected with the message Has avoided lifestyle inflation, enjoys finding ways to save money Frugality – is it a learned behavior? What you’re exposed to can influence you growing up Developing a “why” with your savings makes it rewarding since there’s a purpose behind the behavior Maggie considers herself more of a minimalist Frugality is more focused on value over lowest price Joining forces to start the Friends on FIRE Podcast Work together as finance partners at the same company Started to discuss taxes and saving for retirement and realized they had a common interest in finance Decided to work together and opted to develop a podcast They feel talking openly about money allows a deeper connection between people People’s spending habits tell a story about what they value in life There’s also value in hearing other perspectives and being challenged on spending choices Working in corporate America The earnings potential actually allows for a better work-life balance if managed correctly Increased financial flexibility also opens up time for passion projects and other meaningful life experiences The Fioneers have a good message that has helped guide Maggie recently “The journey should be as remarkable as the destination.” Developing good financial habits in your personal life can help increase your confidence in your career Having that cushion alleviates the stress of going after every promotion and the stress that goes with that Maggie feels like having financial freedom means she doesn’t need to operate from a place of fear with her job There are many intangible benefits of pursuing financial independence Advice for others Important to not be too hard on yourself and realize it’s never too late to make changes All of the same concepts apply later in life when it comes to good habits If you’re starting later it’s important to be aggressive and make big changes Don’t ease into changes, you need to make up ground in a shorter period of time Make sure you have a vision for what you’re trying to achieve to keep yourself motivated Podcast website: https://friendsonfire.org/ Instagram: https://www.instagram.com/friends.onfire/

Blake and Allanah moved across the globe to pursue their next adventure in life. But when a family emergency forced the family of four to travel from Canada back to Australia, their financial problems became crystal clear. They were in debt, with no savings and needed to borrow money to travel. That's when they decided to educate themselves and get their finances on track. Now, they have a solid net worth, a savings rate approaching 50% and a full emergency fund saved. They have since launched the blog FIRE with a Family and Blake joined me for this week's episode to discuss their story. This episode is brought to you by WalletHacks.com. Family background Their focus on financial independence started in the fall of 2019 They have been together for 16+ years and have two young kids Moved from Australia to Canada for work opportunities Childhood Growing up didn’t have tons of money, as he started making money wanted to spend it Allannah grew up having what she needed, but family used credit cards when they needed Got in the habit of using cards based on what they witnessed, thought it was normal Turning point Needed to travel to Australia for family emergency and needed to borrow money to travel Decided to turn things around and started to learn on YouTube: Marko at WhiteBoard Finance Their relationship They had different approaches with finances but have come together to get on the same page with spending, balance each other out She had previously spent a lot on online shopping, several hundred dollars at a time, but her habits have changed slowly over time She listens to the Slow Home Podcast, living below your means concept They decided that they couldn’t continue to live in debt and worked out a plan over several months Started their blog and it helps hold them accountable, post new content each week Started to learn about net worth Most of his net worth has been based on retirement funds through work Back-calculated to $230k in November 2019 Now in March it’s increased to $300k Most of the gain is based on debt reduction Use high yield savings accounts for emergency fund Savings rate focus Started to get close to 50% savings rate Would like to get to 60% and beyond in the next few years Have an full emergency fund and have saved for travel Looking to eventually focus on investing in ETFs Budget changes Small adjustments have added up Focus on planning meals to save on groceries Travel has been scaled back, were spending a lot on weekend trips Going camping instead of going to hotels Try to wait 24 hours+ on purchases Frugal vs cheap Has become more on the frugal end of the spectrum in recent months Frugal is focused on finding the best value Cheap is focused on spending as little as possible Advice to people starting the path late Learn as much as possible, read books, listen to podcasts and audio books Investments can still compound and make a difference, you might just need to invest more Understanding your “why” is important Educating your kids about money is also something to focus on Follow Blake and Allanah FIRE with a Family blog: https://www.firewithafamily.com/ Instagram: @firewithafamily

If you’ve ever considered real estate as a way to increase your wealth but never knew where to start, this episode will provide actionable strategies that you can implement to super charge your path to financial independence. We feature an interview with Andrew Kerr from the blog FI by REI and host of The House Hacking Podcast. Andrew outlines six options you should consider in order to leverage the “house hacking” approach to real estate investing. As an expert on real estate and someone who is pursuing financial freedom along with his wife, Andrew provides a range of options that will make this strategy work for you, no matter your age. Show intro: Email from fellow blogger Steven from https://www.frugalwander.com/ Andrew's background:  Started career in mortgage banking industry and purchased his first home at 20 Was making good money but wasn’t happy in his career, shifted over to non-profit sector but made less money Identified REI (real estate investing) as a wealth building tool and got to “Lean FIRE” at a young age Experienced a wide range of REI options and landed on “buy and hold” as the preferred method, rather than flipping houses Found that he was able to keep his job in non-profit while making cash flow from real estate Has set aggressive goals for his own life: Big Hairy Audacious Goals by Jim Collins helped him set high goals: https://www.jimcollins.com/concepts/bhag.html Leveraged sales skills to work in fundraising, targeting $25 million for charity Rental property goal evolved from 100-1,000 units to a more modest goal that would allow him enough cash-flow to reach “Fat FIRE” Wants to be part of the Travelers Century Club, visiting 100 countries Basics of house hacking: Concept is to adjust your housing situation to reduce or eliminate housing expenses Average person in the US spends 30% of their income on housing Allows you to put more money into savings and investments Blog post: https://fibyrei.com/house-hacking-ultimate-guide/ Six house hacking styles: Room rental: renting out a room in your primary residence Small multifamily: 2, 3 and 4 unit homes, live in one and rent the others ADU (accessory dwelling unit): create an additional detached living space to rent Income suite: converting a basement or other space into an apartment Work provided housing: work for an employer that provides housing Live-in flip: renovate a house while living there and then flip it Resources to learn more about REI: Bigger Pockets is major player in REI resources (forums, blog, podcast): https://www.biggerpockets.com/ From Military to Millionaire with David Pere podcast if you’re military: https://www.frommilitarytomillionaire.com/ The House Hacking Podcast Andrew’s show: https://fibyrei.com/the-house-hacking-podcast/ Website: https://fibyrei.com/ Podcast: https://fibyrei.com/the-house-hacking-podcast/ Instagram: @fibyrei and @thehousehackingpodcast

This episode features a great conversation with Tom, a teacher who hosts the blog What the FI. Tom shares his story and explains how he has more than doubled his net worth in the last few years, through better budgeting, increased savings rate, and investing in real estate. Despite not starting his path to FI until after turning 40, Tom has his family on a trajectory to hit several lofty personal and financial goals in the next ten years.  Lives in the Chicago area, got into the teaching profession based on his family Followed the American Dream – go to college, get a job, get married, have kids Was doing okay financially, but had no clear goals and started to accumulate debt Found themselves living paycheck to paycheck, not tracking their spending By the time he got to his 40s realized retirement wasn’t far off and felt trapped in his job Wife recognized he was unhappy but he wasn’t ready to listen to advice Eventually started reading more and listening to podcasts and began to turn the corner Heard interview with Jemal King, https://www.instagram.com/9to5millionaire/, and that was an inflection point to pursue passive income Books/audio books have been a significant source of education (50+ books) Rich Dad Poor Dad – Robert Kiyosaki Set for Life – Scott Trench Millionaire Real Estate Investor - Gary Keller Book on Rental Property Investing – Brandon Turner Long Distance Real Estate Investing – David Greene Total Money Makeover – Dave Ramsey Retire Before Mom and Dad – Rob Berger Little Book of Common Sense Investing - John Bogle Simple Path to Wealth - JL Collins The 10X Rule – Grant Cardone Start with Why – Simon Sinek You Are a Bad Ass – Jen Sincero These have helped with mindset shifts as well as learning about investing and real estate Much more educated now with how to invest in index funds Discusses the importance of getting on the same page with your partner Started to find savings in their monthly budget, increased savings rate from 5% to 50% in a few years Increased net worth from $150k to $315k Has outlined long term goals: to become financially independent, getting his time back, own 12 rentals, give back to the community, have $1 million in retirement savings Has become comfortable with setting lofty goals and not settling Real Estate Investing: Looking to build a portfolio as a way to accumulate wealth rapidly Considered a range of options, ultimately found a cash flowing property within an hour Went with a SFH (single family home) to rent out as a safer option Works with a realtor who also invests in real estate Uses a few simple rules to quickly evaluate deals: 1% rule, 50% rule, cash-on-cash ROI Blog post: https://whatthefi.com/3-simple-rules-to-quickly-calculate-rental-deals/ Need to forgive yourself for past mistakes, starting at 40 or older is not too late You can make up a lot of ground by changing your habits Blog: https://whatthefi.com/ Instagram: https://www.instagram.com/whatthefiguy/

Today we have Jessica from The Fioneers. She’s a co-founder of https://thefioneers.com/ along with her husband Corey. Their financial independence blog was a 2019 Plutus Award Winner for Best New Personal Finance Blog. We discuss a wide range of topics, including an overview of the Slow FI concept she developed with her husband. We also dive into how she overcame several limiting beliefs in order to become an entrepreneur and launch a new business. Finally, Jessica shares why Slow FI is an ideal option for people pursuing financial freedom later in life. Jessica lives in Boston and works in nonprofit, in her mid-30s, learned about FI when she was 30 Husband had learned about FI but didn’t feel like it applied to their situation She started to feel burned out in her job, toxic environment, but had doubled her income Felt like she needed to stay in her job for 10+ years to reach FI, traditional FIRE path didn’t fit Ended up taking a 6-month leave due to anxiety and ultimately left her job Decided to work part-time, which was an option based on their savings Was able to focus on passion projects and find a work/life balance Came up with the concept of Slow FI: https://thefioneers.com/slow-fi-yolo/ “The journey to financial independence should be as remarkable as the destination.” Even with her pay cut they were able to maintain close to a 60% savings rate Read the book Work Optional by Tanja Hester, https://ournextlife.com/work-optional/, and was introduced to the concept of mini, or semi-retirement Decided to start a Slow FI Interview series: https://thefioneers.com/slow-fi-interview-series/ Found examples of people pursuing financial freedom while still living their lives Seven Limiting Beliefs blog post: https://thefioneers.com/limiting-beliefs-entrepreneur/ Started a coaching business to help people design an ideal life Ran into internal challenges and barriers that held her back and felt it was important to share these challenges with others Belief #1: I should be able to figure all of this out by myself. Belief #2: I should know that something will be successful before trying it. Growth mindset vs a fixed mindset Belief #5: I need to feel totally confident before moving forward. Why people struggle with overcoming fears to face a challenge How imposter syndrome holds people back Challenges that I’ve faced with my blog and podcast The importance of people sharing their stories and inspiring others The challenges of sharing FI concepts with people who are not pursuing FI Advice for people starting to pursue FI later in life: slow FI makes a lot of sense for people in their 40s Where to follow The Fioneers: Twitter: https://twitter.com/thefioneers Instagram: https://www.instagram.com/thefioneers/ Facebook group: https://thefioneers.com/fb