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: Although Chad is still working through his debt payoff, he still has a lot to teach other low-income individuals chasing FI.
  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)