Financial Independence Retire Early. If you found this podcast you’re probably familiar with the FI/RE movement that has grown in popularity recently. Here at the FI Garage, we’re all on the path to FI, however, we consider the RE part optional. In this episode, the Mechanic, the Accountant, and the Economist sample a couple of beers and build on their first episode by discussing how to get on the path to FI. We outline the directions you’ll need to take on the way to FI.
Beer #1 – Czechvar Original – Brewed & Bottled in Ceske Budejovice
What’s in the News?
– 25% of respondents said they pay interest only
– Only half of respondents knew basic facts about the terms of HELOCs
– Over 3,000,000 Canadians have a HELOC, average of which is $65,000
– Average Person in BC says they need $1.07M to retire
– 51% of the 2,000 people surveyed in Canada felt they would never have enough to retire
How to get on the path to FI
- Educate yourself – FIgarage Blog Roll,
- Tracking Spending – mint, personal capital, YNAB
- Reducing Spending – 40 Ways to Save Money
- Paying off debt, Tackling Debt – Debt Avalanche
- Setting Goals – Goal Setting is the Secret to Success
- Increasing Savings rate – Paula Pant scale up savings 1%
- Generating passive income
- Side Hustle
2nd Beer – Hoyne Pilsner – Brewed & Bottled in Victoria, BC
Stupid Money Move
- Putting money in highly speculative stocks instead of paying high interest debt.
- Using a HELOC on your house and paying interest only
- making minimum payments of credit cards
– See the Economist’s article on Worry-Free Money