Summary: In today's podcast we discuss the High Cost of Living Path to FI with ChooseFI community members Paige and Sam who live in Los Angeles and have been pursuing FI in a HCOL with sub-$50,000 per year jobs.<br> <br> In Today’s Podcast we cover:<br> <br> * Episode 41: A conversation with Paige and Sam about pursuing Financial Independence in a high cost of living area on a lower income<br> * Paige pushed back on our limiting belief that you “can’t” achieve financial independence on a low income in a high cost of living area<br> * Sam introduced Paige to MMM but Paige ran with it from there<br> * Paige’s back story<br> * Paige had a negative net worth in her mid-40s<br> * Since Paige has earned and lived in the $30,000 range she is used to that and now that she’s making more she can save that difference<br> * Paige intends to hit early retirement in 2025 and has a 50% savings rate<br> * She uses her Roth IRA as an “emergency fund” since she can withdraw the contributions at any time tax and penalty free<br> * Sam’s story behind retiring “early and often”<br> * He did not have student loans and also his parents modeled investing for him well before he was earning income himself<br> * Sam’s parents always put gifts and other money into his investing account instead of giving it to him to spend<br> * Sam is technically at his FI number, but he does still continue to work<br> * Sam’s history of his apartment renting in Los Angeles and sharing apartments with roommates to lower the costs (over a 20+ year period)<br> * Sam has never made more than $50,000 in a year<br> * Having to be slightly more intense to reach FI in a low cost of living area. The best way being to live with roommates and not having a car payment<br> * They don’t buy new items – the “alley provides” and they can find free stuff on the street or at Goodwill, etc.<br> * They are very deliberate and intentional about saving money on food and groceries<br> * Limiting beliefs on why people like Paige and Sam couldn’t retire early and pursue financial independence and why they rejected them<br> * The big three items they can control: Housing, Transportation and Food<br> * There are so many free activities in a big city, so it is easy to keep a nearly $0 entertainment budget in a city<br> * They are not minimalists at all, but they just don’t buy new things.<br> * Sam is an extreme DIY-er and picks<br> * How did Sam become a DIY-er?<br> * You don’t have to agonize over decisions when you aren’t trying to maximize or perfect each buying decision<br> * How they approached their home buying decision differently with the mindset of people who can fix essentially anything<br> * Buy a house that is just bad enough that the flippers don’t want it – per Paige<br> * What is the long-term play for their new house? Do they intend to buy other homes to fix and sell?<br> * Extreme ownership of your decisions and knowing what you want<br> * Paige’s plan for early retirement and how to make it to 65 and social security where she’ll get a ‘big raise’<br> * Hot Seat questions<br> <br> Links from the show:<br> <br> * <a href="https://www.playingwithfire.co/" target="_blank" rel="noopener">Playing With FIRE documentary</a><br> * <a href="http://www.frugalwoods.com/" target="_blank" rel="noopener">Frugalwoods</a><br> * <a href="https://radicalpersonalfinance.com/" target="_blank" rel="noopener">Radical Personal Finance</a><br> * <a href="http://jockopodcast2.com/" target="_blank" rel="noopener">Jocko Willink podcast</a><br> * <a href="http://www.madfientist.com/" target="_blank" rel="noopener">Mad Fientist</a><br> * <a href="https://earlyretirementnow.com/" target="_blank" rel="noopener">Early Retirement Now</a><br> * <a href="http://www.mrmoneymustache."></a>
