The Low Income Path to FI | Chad Methner

The Low Income Path to FI | Chad Methner

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In today’s episode, Cody and Justin are joined by Chad Methner from Little Brother Life Coach.

Chad really wants to encourage people how to reach FI even if they’re nowhere near a six-figure salary.

We discuss his battles during the recession, finding himself in a job he hated, and how he came through it all. You’ll catch Chad now helping others through coaching and setting up local meetups.

It’s a unique angle so go listen and follow along with the summary below and make sure to check out the links at the bottom of the page.

Episode Summary

  • Chad first discovered financial importance from a Dave Ramsey book he stumbled across
  • The parts about debt pay off really hit Chad
  • He’s still $20k in debt from college
  • After high school, he just did some manual labor while he tried to figure out what to do for college
  • He got half off tuition thanks to his dad’s job at Ohio State
  • After college, he couldn’t land a job because it was 2009 and the recession was in full swing
  • He didn’t rack up any debt from college until he got his masters in 2015
  • While the job he had did some tuition reimbursement, it still cost him $25k in debt
  • That along with a car and some other loans left him with over $40k worth of debt
  • He continues at this job making under $11 per hour
  • After he got his masters he went to try and get a promotion
  • Unfortunately, they didn’t give him any options
  • After six years there he had maxed out at $13.25 an hour and decided to leave
  • He landed a new job and almost doubled his income to just under $50k and in a role where he was more comfortable
  • We asked why he staid at that first job so long unhappy and underpaid
  • For Chad, it was just comfortable and easy but he finally had enough
  • The discussion swapped to how he saves money on this lower-income
  • The biggest thing for him was cooking at home
  • It turned into a full-blown hobby instead of just a money saver
  • He plans to be out of debt in 3-5 years
  • His big goal is to retire before age 55 and hit that $1M mark
  • Chad is also trying to build up side hustles including coaching and writing a book
  • Then we discuss the “poverty-tax” and the importance of an emergency fund

Key Takeaways

  1. Everyone can benefit from this journey: Chad began this journey on as little as $10.75 per hour and it’s changed his life. Your velocity may be different but the impact is still extremely meaningful.
  2. We can always help: Some may look at Chad and not expect him to be helping someone with their finances but we take for granted the knowledge we can share with others.
  3. Don’t settle for misery: Chad obviously stayed at his first job too long. After 6 years he was still underpaid and forced into positions he hated. Regardless of pay, working in a job you hate is never worth it.

Call to Action

Start planning some frugal activities and trips. Maybe even take a look at activities you currently do and find a frugal alternative.

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Contact Chad:

Via his blog Little Brother Life Coach

Catch him on Twitter

In our Facebook group!

Learn More About Your Hosts:

Fly to FI (Cody’s Blog)

Saving-Sherpa (Justin’s blog)