53 min
Starting the Journey to Financial Independence after 40 with Tom from What the FI FI after 40 Podcast
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- Investing
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/
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Support this podcast: https://podcasters.spotify.com/pod/show/fiafter40/support
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/
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Support this podcast: https://podcasters.spotify.com/pod/show/fiafter40/support
53 min