Aug. 16, 2021

041 | Financial Independence Series | Part 1 | The Gap


Show Summary:

In today’s show, we help you get started on your financial independence journey by building space between what you make and what you spend.  In Part 2 of our FI series, we will discuss debt and emergency funds.

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Intro:

We attempted to play after our last episode and realized we are all old.

Win/Fail:

Gary:

Gary has been more social lately.  WIN.

Sarah:

Sarah has started training for her half marathon and has been sticking to the schedule.  WIN.

Peter:

Peter needed a new boiler.  He capitalized on the current Chase Sapphire Preferred 100,000 bonus point offer by getting a card for him and his wife.  Together they will get over 200,000 points just by using it to buy the boiler they need anyway.    That equals about $2625.  We also discuss other perks of using credit cards.  WIN.

Main Discussion:

Gary leads the discussion for Part 1 of our Financial Independence Series: The Gap.  The main takeaways and talking points are as follows:

  • Step 1 is to build the gap between money coming in and money going out.
  • Start with a full reset. Stop everything except what has to be paid.  Then slowly add things back in.
  • Track your money in & money out using Mint, YNAB, or any other system you want.
  • You CAN and SHOULD try and make changes to the big three: Shelter, Transportation, Food.
  • Eliminate the little expenses you forgot about or don’t value.
  • Pick the things you spend on that you value and want to keep.  It can’t be everything!
  • Pick one of the budgets that work for you, and stick with it.
  • Make more money.

Fan Feedback:

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Key Topics:

  • Mint
  • YNAB
  • Assets
  • Liability
  • Lifestyle Inflation
  • Track and change
  • Financial Reset
  • Spend on What You Value
  • Income
  • Expenses
  • Budget
  • Side Hustle

Resources Mentioned In This Episode:

The Fat & Broke Book List

Next Show:

What Is Now (W.I.N.) | August 19, 2021 

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