Catching Up with Brad Barrett from ChooseFI
This December is my final year-end month for Martinis and Your Money, and in December, I'm always talking to clients about goal setting for the following year. One of the most important financial goals I am most passionate about is Financial Independence, and that's the ability to work because you WANT to work and not because you HAVE to work.
Financial independence is the number one goal we give to all clients at Financial Gym, and it's the number one goal I beg you to set in 2024 and beyond. Joining today is Brad Barrett, co-founder of the ChooseFI podcast and website. Brad is here to share his journey to FI and what factors unite people on an FI journey.
What are we drinking?
Brad - Green Tea
Shannon - Black Cherry Schweppes
Podcast Notes
What is Financial Independence?
Financial Independence (FI) is an absolute superpower. It's the process of attaining freedom and power on our side of the ledger. It's what we should aspire to.
Brad has always been a saver and saved money long before he knew about the FI movement; he discovered FI through the Mr. Money Mustache blog and felt at home.
Looking at retirement calculators was discouraging because they only care about your current income, which is fundamentally flawed. It should be based on your expenses. The simple math behind FI changed his perspective.
The traditional FI/RE movement, for a while, seemed like it was for one type of person: young white high earners. There are now so many different perspectives and stories to explore.
There is a flavor of financial independence for everyone. Naming it makes it something you can relate to and be excited about.
Your FI journey does not have to be extreme; it's about taking actionable steps. With any action, your life is going to be transformed.
Financial Independence is About Your Expenses
In the FI movement, the focus is on what your life costs, aka your expenses. What do you truly need in life if you want to quit tomorrow? There is no perfect formula. Nothing today will be a certainty, but it gives you direction.
The main component of the formula is the annual expenses. If you don't know that number, that's where you will start. How much money did you spend this year?
If this is your first time, be honest with yourself. Do this exercise without judgment. The numbers are what they are, and once you know them, you can make a plan. You're taking action to make your life better.
Basic FI: annual expenses x 25 - Calculator
Everyone's starting point is going to be different. What could you get rid of for the sake of freedom? When you know what the number is, you can work with it. You can make changes.
Final Thoughts
It's never too late or too early to get started. Depending on where you are, you may have to get creative. You can make changes to reach your financial independence goal earlier.
FI has flavors: Coast FI, Barista FI, Fat FI, and Shannon's Bagel FI. There's no wrong choice; it's about the path you want to take and your timeline.
The more flexible you can be, the more freedom you'll give yourself to reach FI sooner rather than later.
Without that bigger thing you're working toward, everything is an immediate want and need. Financial independence creates a mindful way of life and a foundation for financial health.
FI is the greatest goal you can ever have. Just setting it changes the trajectory of your life. It's about spending money on the most important things and buying back your time.
Takeaway: My biggest takeaway is, other than the fact that Brad is a huge Swiftie, is that the Financial Independence space has changed dramatically over the past 10 years, and now more than ever, it's proving that anyone, no matter where they're starting from, can achieve this massive goal. And remember, the key is to give zero fucks about what other people think.
Random Three Questions
If you were given 20k and had to use it on something, what would you spend it on?
What is something you’re currently binging?
What do you do to relax?
Connect with Guest
Website: ChooseFI
Podcast: Podcast Episodes | ChooseFI
Local groups: Find Your Local Group | ChooseFI
Facebook: ChooseFI | Facebook
Resources Mentioned in the Episode:
Choose FI Brad & Jonathan - MAYM November 6, 2020
Mad Fientist - The Mad Fientist
Mr. Money Mustache - Mr. Money Mustache
If you have any topics you would like me to cover on this podcast, or if you’d like to get in the financially naked hot seat, I encourage you to email me at Shannon@fingyms.com, or join the private Martinis and Your Money Facebook Page, and let me know what you want to hear.
In addition to hosting this show, I’m the founder and CEO of The Financial Gym. We are celebrating 10 years of this journey, and now, more than ever, I see the importance of the work we do every day. Rising inflation, the return of student loan debt, high interest rates on mortgages, and volatile stock markets make it a time when you need a best financial friend to help you make the best choices.
At Financial Gym, you get paired with a Certified Financial Trainer, who we call your BFF. Our team has coached clients through every financial season, whether they were living paycheck to paycheck or headed into Financial Independence and retirement.
To celebrate the final season of Martinis and Your Money, listeners can get 20% off of one-on-one training services. So what are you waiting for? Head over to financialgym.com to get started today. Our warm-up calls are free of cost and judgment.