Mistakes Were Made

Mistakes Were Made

Even financially independent people have lost fortunes to bad investments, high-fee funds, and speculation. Brad Barrett, Alan Donegan, and Katie Donegan lay bare their most expensive mistakes—from Alan's 90% dot-com crash loss to Katie's near-£1 million fee trap to Brad's decade-long real estate nightmare—proving that catastrophic errors don't prevent you from reaching FI if you learn the right lessons. KEY TOPICS DISCUSSED [00:00:00] Introduction: Why Share Mistakes? Brad introduces the episode concept, explaining why sharing financial and life mistakes can help others avoid similar pitfalls on their FI journey. [00:03:30] Alan's Dot-Com Bubble Disaster Alan shares how he lost 90% of his £7,000 life savings investing in high-tech managed growth stocks right before the dot-com crash, and how this scared him away from stock market investing for 13 years. [00:08:45] Brad's Early Investment Mistakes Brad discusses investing in WorldCom and other 'top picks' that went bankrupt, plus getting sold a mutual fund with horrible loads, highlighting that there's no secret investment knowledge reserved for the wealthy. [00:13:20] Katie's High-Fee Fund Trap Katie reveals how a financial advisor convinced her to invest in actively managed funds with 2.71% ongoing fees plus 3% entry charges, a mistake that would have cost her and Alan £1 million if they hadn't discovered index investing. [00:18:50] Brad's Real Estate Speculation Nightmare Brad shares his biggest mistake: speculating on golf course community properties with interest-only loans right before the 2008 crash, causing over a decade of stress and significant financial loss. [00:28:15] Alan's Career Mistakes: The Book Incident Alan reveals how he wrote a book called 'How Not to Run a Business' about his boss on the company laptop, got fired, and learned about speaking truth to power and the importance of FI for workplace freedom. [00:32:40] Katie's Confidence and Comparison Struggles Katie discusses how her fixed mindset and comparison with others held her back from pursuing opportunities like netball and football, and how building confidence is as important as building net worth. [00:42:30] The Power of Saying No and Setting Boundaries The trio discusses the difficulty of being direct and honest, the importance of saying no, and how people-pleasing can create more problems than it solves. [00:48:20] Business Mistakes: Email Lists and Sales Fear Alan shares his regret about never building an email list for his successful business and letting fear of rejection prevent him from scaling, emphasizing the importance of owning your platform. [00:54:10] Salary Negotiation and Final Thoughts Brad discusses not negotiating his salary when changing jobs, the hosts wrap up with reflections on learning from mistakes, and encourage listeners to share their own mistakes in the community. NOTABLE QUOTES Brad Barrett: "You can make mistakes and you can make catastrophic mistakes, and you can pick yourself back up and you can move on with your life. You're stronger and you're wiser." Alan Donegan: "Your success in life is directly related to how many mistakes you can make as quickly as possible and learn from them." Alan Donegan: "Spend as much time building your confidence as you do your net worth, because it is so powerful in everything you do going forwards." Katie Donegan: "To rinse the value out of the mistakes, it's a lot more valuable if we share them. I would love you to get the value out of my mistake because I've already paid the price." Brad Barrett: "There's no secret. There's virtually no genius. Don't get caught up in wild speculative behavior." KEY TAKEAWAYS * Invest in low-cost index funds like VTI instead of actively managed funds or individual stocks to avoid high fees and poor performance * Build an email list from day one if you're starting a business—don't rely solely on social media platforms you don't control * Always negotiate your salary when changing jobs or getting promoted * Work on building your confidence alongside your net worth—practice saying no, setting boundaries, and being direct in difficult conversations * Learn from others' mistakes rather than making them yourself * Avoid speculation in real estate, stocks, or any investment—stick to boring, proven strategies like index fund investing for long-term wealth building * Make mistakes quickly and learn from them—failure is part of the path to success as long as you extract the lessons and keep moving forward RESOURCES AND LINKS MENTIONED * 50 Ways to Say No by Elizabeth Andrews [https://www.amazon.com/50-Ways-Say-Go-boundaries/dp/B09SPDWSJX?utm_source=choosefi-podcast&utm_medium=show_notes&utm_campaign=87b9aa56-5f11-4dcf-8d48-1328fda7a971] * ChooseFI Episode 454 - Salary Negotiation with Financial Mechanic [https://choosefi.com/podcast-episode/salary-negotiation-early-retirement-financial-mechanic-ep-454?utm_source=podcast&utm_medium=rss&utm_campaign=87b9aa56-5f11-4dcf-8d48-1328fda7a971] * ChooseFI Episode 147 - Salary Negotiation with Tori Dunlap [https://choosefi.com/podcast-episode/negotiate-your-salary-with-tori-dunlap?utm_source=podcast&utm_medium=rss&utm_campaign=87b9aa56-5f11-4dcf-8d48-1328fda7a971] * Rebel Finance School [https://rebeldonegans.com/?utm_source=choosefi-podcast&utm_medium=show_notes&utm_campaign=87b9aa56-5f11-4dcf-8d48-1328fda7a971] * JL Collins and The Stock Series * Vanguard Total Stock Market ETF (VTI) * ChooseFI Community Platform ---------------------------------------- Support the Show We work hard to keep ChooseFI ad-free for a clean listening experience. The easiest way to support us is to use our Top Recommended Cards [https://choosefi.com/travel-rewards?utm_source=podcast&utm_medium=rss&utm_campaign=support_the_show] page when signing up for your next travel rewards credit card.

595 | Value Matrix Case Study Series: Part 2 — Required Bloat

Most people trying to slash their budget hunt for obvious waste—daily lattes, unused subscriptions, impulse purchases. But what happens when you've already cut the fat and your highest expenses are the ones you can't seem to touch: the mortgage, the car payment, the daycare bill? That's required bloat, and it's quietly inflating your FI number by hundreds of thousands of dollars. KEY TOPICS DISCUSSED Introduction to Value Matrix Case Studies (00:00:00) Jonathan recaps the series and introduces three value matrix case studies, following up from episode 592. Case 1: Required Bloat (00:03:00) Exploring a couple with high required expenses including housing, transportation, and childcare. Discussion of seasons of life and time-bound expenses. Insurance Optimization Strategies (00:13:00) Brad and Jonathan discuss how the couple saved nearly $10,000 annually by shopping insurance policies and adjusting coverage levels. Required Expenses: Fixed, Review, and Variable (00:18:00) Breaking down required expenses into three categories and identifying opportunities for optimization even in supposedly fixed costs. Case 2: The Optimized Budget (00:25:00) Examining a couple spending $50,000 annually with highly optimized expenses across all categories, demonstrating what a locked-in FI budget looks like. Self-Insurance Milestone (00:35:00) Discussion of umbrella insurance and the milestone of becoming self-insured enough to cancel term life insurance policies. Case 3: High-Joy Giving (00:42:00) Analyzing a couple spending $17,000 annually on charitable giving and gifts, exploring the intersection of generosity and financial independence. Effective Giving Strategies (00:46:00) Brad covers tax-optimization strategies for charitable giving including donor-advised funds, lumping donations, and donating appreciated stock. Takeaways and Tool Access (00:54:00) Jonathan wraps up with listener feedback and directs people to access the Value Matrix tool at choosefi.com/local. NOTABLE QUOTES "Just because it's required doesn't mean that we ignore it. We're going to put all of this into our process, into our value matrix." — Jonathan Mendonsa "There are definitely seasons to this. Take a deep breath and understand you're still doing great and you're still making plans to supercharge your path to FI." — Brad Barrett "Sometimes when you just get a different quote, you are shocked by how inexpensive it is. It always pays to just get different quotes on insurance." — Brad Barrett "When you have opened up your hands earlier to share in any way that you choose to do it, you are going to definitely avoid this feeling of hoarding." — Jonathan Mendonsa "Wouldn't it be cool if every single item showed up as high joy? That would just really show that you're living an aligned life regardless of cost." — Brad Barrett KEY TAKEAWAYS * Complete an expense audit categorizing all spending into groups (housing, transportation, food, etc.) before using the Value Matrix tool * Shop your insurance policies annually—home, auto, health, life, and umbrella—to ensure you're getting competitive rates * Categorize each required expense as Fixed, Review, or Variable to identify optimization opportunities * Consider higher-deductible health insurance plans (like ACA bronze) if you're healthy to reduce premiums while maintaining catastrophic coverage * If charitable giving is important to you, explore tax optimization strategies like donor-advised funds or donating appreciated stock * Access the Value Matrix tool at choosefi.com/local under Tools and Resources to visualize your spending alignment * Review time-bound expenses (daycare, car payments, student loans) and calculate how your FI number will decrease when they end * Join the ChooseFI community giving forum to discuss effective giving strategies with like-minded individuals RESOURCES AND LINKS * Effective Giving for the FI Community (Episode 483) [https://choosefi.com/podcast-episode/effective-giving-for-the-fi-community-rebecca-herbst-jack-lewars-ep-483?utm_source=podcast&utm_medium=rss&utm_campaign=c50adeae-fcd5-4b40-813e-90772446dbda] * FI Lanthropy Pledge [https://www.yieldandspread.org/the-fi-lanthropy-pledge?utm_source=choosefi-podcast&utm_medium=show_notes&utm_campaign=c50adeae-fcd5-4b40-813e-90772446dbda] * ChooseFI Value Matrix Tool [https://choosefi.com/local?utm_source=podcast&utm_medium=rss&utm_campaign=c50adeae-fcd5-4b40-813e-90772446dbda] * yieldandspread.org * YNAB (You Need A Budget) * Mint Mobile ---------------------------------------- ▶ Browse Essential Listening [https://choosefi.com/essential-listening?utm_source=podcast&utm_medium=rss&utm_campaign=c50adeae-fcd5-4b40-813e-90772446dbda] ---------------------------------------- Support the Show We work hard to keep ChooseFI ad-free for a clean listening experience. The easiest way to support us is to use our Top Recommended Cards [https://choosefi.com/travel-rewards?utm_source=podcast&utm_medium=rss&utm_campaign=support_the_show] page when signing up for your next travel rewards credit card.

594 | Travel Rewards Deep Dive with Noah

EPISODE 45: MAXIMIZING TRAVEL REWARDS WITH FINANCIAL INDEPENDENCE In this episode of ChooseFI, Brad Barrett and travel rewards expert Noah G. dive into the world of travel rewards, focusing on maximizing points to achieve financial independence and nearly free vacations. They discuss the value of points, strategies for their redemption, and introduce tools to optimize travel savings, offering practical advice for listeners. KEY TOPICS DISCUSSED * Introduction to travel rewards and their role in financial independence * Noah G.’s journey and expertise in travel rewards * Methods to maximize point value and determine cents per point * Tools and resources for enhancing travel savings TIMESTAMPS * 00:00:00 - Introduction to Travel Rewards * 00:01:30 - Noah's Journey and Expertise * 00:03:00 - Maximizing Point Value * 00:05:00 - Tools for Travel Savings RESOURCES AND LINKS MENTIONED * awardtool.com [https://www.awardtool.com/?utm_source=choosefi-podcast&utm_medium=show_notes&utm_campaign=5ed9d11f-3711-4cab-ae9a-82a77826c9f6] * pointsyeah.com [https://www.pointsyyeah.com/?utm_source=choosefi-podcast&utm_medium=show_notes&utm_campaign=5ed9d11f-3711-4cab-ae9a-82a77826c9f6] * flightconnections.com [https://www.flightconnections.com/?utm_source=choosefi-podcast&utm_medium=show_notes&utm_campaign=5ed9d11f-3711-4cab-ae9a-82a77826c9f6] * seats.aero [https://www.seats.aero/?utm_source=choosefi-podcast&utm_medium=show_notes&utm_campaign=5ed9d11f-3711-4cab-ae9a-82a77826c9f6] * pointspath.com [https://www.pointspath.com/?utm_source=choosefi-podcast&utm_medium=show_notes&utm_campaign=5ed9d11f-3711-4cab-ae9a-82a77826c9f6] KEY TAKEAWAYS * Calculate cents per point to assess the value of travel points. * Use resources like awardtool.com to optimize travel rewards. * Engage with community resources for the latest point redemption tips. NOTABLE QUOTES * "Your points are a finite resource." - Brad Barrett * "Think about what your points are worth and when to spend them." - Brad Barrett * "I met you at a ChooseFI meetup at a local brewery." - Noah G. SPEAKERS * Brad Barrett - Co-host of ChooseFI * Noah G. - Travel Rewards Expert Whether you're a travel hacking newbie or a seasoned point redeemer, this episode provides valuable insights and strategies to make the most of your travel rewards within the financial independence framework. ---------------------------------------- ▶ Listen Next: Ep. 595 — Value Matrix Case Study Series: Part 2 — Required Bloat [https://choosefi.com/podcast-episode/c50adeae-fcd5-4b40-813e-90772446dbda?utm_source=podcast&utm_medium=rss&utm_campaign=5ed9d11f-3711-4cab-ae9a-82a77826c9f6] | Essential Listening [https://choosefi.com/essential-listening?utm_source=podcast&utm_medium=rss&utm_campaign=5ed9d11f-3711-4cab-ae9a-82a77826c9f6] ---------------------------------------- Support the Show We work hard to keep ChooseFI ad-free for a clean listening experience. The easiest way to support us is to use our Top Recommended Cards [https://choosefi.com/travel-rewards?utm_source=podcast&utm_medium=rss&utm_campaign=support_the_show] page when signing up for your next travel rewards credit card.

Book Club: 'Goodbye, Things' with Liz Gets Loaded | Ep 593

EPISODE SHOW NOTES EPISODE SUMMARY Ginger and Liz from Liz Gets Loaded explore Fumio Sasaki's book, "Say Goodbye to Things," discussing the principles of minimalism and their impact on emotional well-being and lifestyle choices. They share personal insights and practical tips on downsizing and living a more intentional life. KEY TOPICS DISCUSSED * Introduction to Minimalism * Definition and Principles of Minimalism * Personal Experiences with Downsizing * Summary and Key Themes of "Say Goodbye to Things" * Practical Minimalism Tips * Valuing Experiences over Material Possessions RESOURCES AND LINKS MENTIONED * Liz Gets Loaded [https://lizgetsloaded.com/?utm_source=choosefi-podcast&utm_medium=show_notes&utm_campaign=670f5ffd-9d2e-4b16-a5af-fa542ebe3b69] * Say Goodbye to Things by Fumio Sasaki [https://www.amazon.com/Goodbye-Things-New-Japanese-Minimalism/dp/0393609030?utm_source=choosefi-podcast&utm_medium=show_notes&utm_campaign=670f5ffd-9d2e-4b16-a5af-fa542ebe3b69] TIMESTAMPS * 00:00:00 - Introduction to Minimalism * 00:05:00 - Defining Minimalism * 00:12:00 - Personal Experiences with Minimalism * 00:20:00 - Summary of 'Say Goodbye to Things' * 00:32:00 - Practical Minimalism Tips * 00:45:00 - Reflecting on Experiences and Values KEY TAKEAWAYS * Reflect on what's truly necessary in your life. * Consider a 'store it at the store' approach for bulk items. * Evaluate your possessions with the 'would I buy this again' rule. NOTABLE QUOTES * "Minimalists are people who know what's truly necessary for them versus what they may want for the sake of appearance." - Ginger * "Living in the apartment feels like living in a hotel room in the best way." - Liz * "He says, 'Get rid of duplicates.' You can still function with one pair of scissors or one pen." - Liz * "Experiences resist comparison." - Ginger * "Minimalism itself isn't the goal; it's about aligning your life with your values." - Liz SPEAKERS * Ginger * Liz Gets Loaded ---------------------------------------- Support the Show We work hard to keep ChooseFI ad-free for a clean listening experience. The easiest way to support us is to use our Top Recommended Cards [https://choosefi.com/travel-rewards?utm_source=podcast&utm_medium=rss&utm_campaign=support_the_show] page when signing up for your next travel rewards credit card.

592 | Value Matrix Case Study Series: Part 1 — Leaky Budget

EPISODE SHOW NOTES EPISODE SUMMARY In this episode, Jonathan Mendonsa and Brad Barrett introduce the Value Matrix, a tool that maps spending to life satisfaction. They analyze four real spending profiles to show how different approaches can affect financial independence. Learn how aligning expenses with personal values can transform your financial journey. KEY TOPICS DISCUSSED * Introduction to the Value Matrix * Overview of four diverse spending profiles * Expansion of Choose FI community groups * Analysis of a leaky budget case study TIMESTAMPS * 00:00:00 - Introduction to the Value Matrix * 00:03:00 - Case Studies Overview * 00:10:00 - Community Growth * 00:17:00 - Leaky Budget Case Study KEY TAKEAWAYS * Evaluate your expenses using the Value Matrix. * Join a local FI group to connect with like-minded individuals. * Identify and eliminate unnecessary leaks in your budget. NOTABLE QUOTES * "Does it go where it matters? Introducing the Value Matrix." — Jonathan Mendonsa * "We don't want you just listening; we want you to take action to make your life better." — Brad Barrett * "It's about choosing what it is that you value, hence why we're going to get into it today." — Jonathan Mendonsa RESOURCES * Choose FI Local Groups [http://choosefi.com/local?utm_source=podcast&utm_medium=rss&utm_campaign=value-matrix-case-study-leaky-budget] SPEAKERS * Jonathan Mendonsa * Brad Barrett ---------------------------------------- ▶ Listen Next: Ep. 594 — Travel Rewards Deep Dive with Noah [https://choosefi.com/podcast-episode/5ed9d11f-3711-4cab-ae9a-82a77826c9f6?utm_source=podcast&utm_medium=rss&utm_campaign=value-matrix-case-study-leaky-budget] | Essential Listening [https://choosefi.com/essential-listening?utm_source=podcast&utm_medium=rss&utm_campaign=value-matrix-case-study-leaky-budget] ---------------------------------------- Support the Show We work hard to keep ChooseFI ad-free for a clean listening experience. The easiest way to support us is to use our Top Recommended Cards [https://choosefi.com/travel-rewards?utm_source=podcast&utm_medium=rss&utm_campaign=support_the_show] page when signing up for your next travel rewards credit card.