FI after 40 Podcast Ben Reeder

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: Greg@suburbanfolk.com
Phone: 717-856-5709
Offering free consultations as a financial coach


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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


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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/


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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/


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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


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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/


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