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Today’s guest used to be the perfect opposite of an ideal financially independent lifestyle.
$400k negative net worth, living paycheck to paycheck (despite being a high-income earner), etc.
You already know the rest of the story.
Robert from Frugal Vagabond (and The Earth Awaits) turned his life around, discovering the FIRE lifestyle, working and saving hard, gradually investing in 6 rental properties, and building an amazing app for lifestyle travelers.
He’s amazing, and he’s got a baby on the way as well!
In this episode we chat…
- Best places to live after early retirement (abroad anyone?)
- Why you should (not) pursue real estate investing
- Digging out of a huge debt hole
- Practical thoughts on avoiding stress on your FI path.
Enjoy the chat, and drop us a comment!
Show notes and links from today’s episode
- Robert’s site: Frugal Vagabond!
- Roberts amazing app: The Earth Awaits
- Mr. Money Mustache – all time most recommended FI blog?
- Bigger Pockets – REI community (probably the best on the internet)
Key takeaways from our chat with Robert from Frugal Vagabond
1 – Financial Independence is within reach WAY sooner than most people think
This idea…is important.
Standard of living plays an incredible role in one’s ability to achieve complete financial independence, and as you know, standard of living changes based on location!
This is the seed that eventually bloomed into Robert’s site The Earth Awaits, which allows people to explore various parts of the world and discover new opportunities to live on much, much less.
Also, given the internet, it’s now easier than ever to work remotely (digital nomadism of course), keep in contact with family, etc. This opens up even more opportunities for everyone to experiment with living abroad.
While it might be 13 years before you could retire early in the U.S., it might be 3 years from now if you could live in Guam. (just an example).
2 – “When you’re deep in the hole, the first step is to stop digging.”
After the markets crashed, Robert’s net worth crashed just as hard. He is perhaps the best example of someone NOT living the FIRE lifestyle.
But luckily, he found himself on MMM’s site, and discovered the very first step to recovery (or just the first step to start?): stop digging the hole.
Stop the lifestyle that put you in the situation you’re trying to escape.
3 – All cash is green, and stress sucks.
Let’s be frank, we all fear being judged. (Some more than others of course).
Switching from a prestigious job to a less prestigious job (maybe high-powered software developer, to professional dog-walker, perhaps?) can be a tough transition.
Or how about going into retirement (especially early retirement)? Coworkers, bosses, family members, friends, society…might actually judge us for the lifestyle decisions we make.
At the end of the day, however, all cash is green.
If your preferred FI lifestyle includes opening a small comic book shop, then do not fear others’ judging you. Do not judge yourself based on societal norms forced upon you.
We’re going deep here.
It’s about attitude though, and we think that’s crucial 🙂
2nd, stress sucks.
For those of us interested in this alternative lifestyle (FIRE), we have a tendency to try and rush. Save save save! Retiring at 31 is way more preferable than retiring at 32!
Maybe.
If you’re sprinting towards financial independence in a job/environment that causes an insane amount of stress, will reaching FI 3 years earlier be worth it?
We agree with Robert: not at ALL.
All cash is green, and you’d be much better off choosing a lifestyle and FI approach you’re supremely comfortable with.
4 – Real Estate Investing should be treated with extreme caution.
- Yes, REI can be an amazing tool for FI (or just income generation)
- Yes, it requires work.
- Yes, it requires knowledge.
- Yes, it requires more work and knowledge than you think.
See what we did there?
In this community, it’s pretty widespread that REI is an overwhelming positive tool for FIRE folks.
It’s effective, and it works!
….
Until it doesn’t.
Robert sold one of his properties the day he spoke with us for this reason. It wasn’t working out exactly how he wanted, and he is brave enough to admit that on the podcast.
All we’re saying is this: Real Estate investing can be a great investing avenue, but should be treated with extreme respect and due-diligence. Always. Like, more than you think.
Furthermore, like all investing activities, it should be treated as an experiment. Gwen is “trying out” a rental approach for a year or two, to see if it’s something she’s good at and wants to continue….or not
Don’t be afraid to drop investments that aren’t working for you, regardless of how recommended they are by other people.
Comment! Do you have any aspiration to travel or live abroad extensively?
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