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What exactly is FIRE?
Financial independence, retire early. Financial independence is based on the 4% rule which was formulated from the Trinity study, the idea is that if you can survive comfortably at a 4% withdrawal rate from your nest egg (invested assets), provided that the assets were invested in low-cost index funds, you essentially never had to work for money ever again.
Which brings in the RE portion (retire early). If you can build up a nest egg with 25 times your annual expenses (inverse of 4%), you could essentially retire early. It just depends on how quickly you can build up those assets.
Useful related resources: https://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/
What’s the Alternative?
The hamster wheel…. This is the path that awaits most Americans. 40 years in an unfulfilling job, doing something you completely hate. This is depressing, yet this is the path most choose!
Being intentional with money. Choosing to live way below your means. Cody mentioned working in a W2 banking job, yet ONLY spending $12K a year. This is a choice Cody made to escape the hamster wheel!
Cody also talked about building side hustles that can cover his monthly expenses, like starting a blog, podcast and a disc golf company.
“We’re on the same path but didn’t come from the same point” – This is such a powerful idea. Everyone’s journey will look completely different, but we can all implement these simple strategies and change our lives!
Just a few years ago TJ was unemployed and in debt, now he and his wife are well on their way to financial independence.
Moral of the story, just start!
Our Gift to You
Cody has a superpower he shares with us on the podcast. And we are so excited to share this with you!
We will need some group participation, but this will be well worth your time for the gift at the end!
Join the Community
Thank you so much for joining us for the first episode. Here are some awesome ways to say in touch, and always have these ideas and strategies at your fingertips.
Fly to FI (Cody’s Blog)
Half Life Theory (TJ’s blog)
2 thoughts on “001 | Lighting the FIRE”
It’s great to see two young and zealous FI-vangelists starting this podcast. Cody, you handily earned the FI Community Rookie of the Year award with your impressive conversation at CampFI Southeast earlier this year. No doubt you will be successful in your endeavors. And props to TJ for reaching out to get things started. Nice podcast gents, we’ll be listening.
Thank you, David! That really means a lot. This is the project I was keeping under wraps over the past few months and why I was constantly busy. TJ and I are so excited to finally have launched and release our content to the public. Thanks again for all the kind words and we hope you enjoy the future episodes!