Musings on miles, points, and travel from members of the Saverocity network

Episode 56 – FIRE and Travel Hacking

Episode Description

Ever wonder what FIRE stands for? Or consider how travel hacking may (or may NOT) be contributing to your overall wealth and financial independence? Join Free-quent Flyer and Money Metagame for this special episode dedicated to taking a look at the intersection of early retirement and travel hacking. Recorded 10 May, 2017.

Episode Notes

Gideon from Free-quent Flyer and Noah from Money Metagame joined me a couple weeks ago to hash out some of their issues regarding FIRE – Financial Independence Retire Early (or something). While they agree on the broad strokes, they come at FIRE from different angles.

We start by discussing their upcoming trips (3:20) before hearing their personal definitions of FIRE. We start to see that they have some semantic differences, you can determine for yourself whether those matter a ton or not. They then outline some steps people take towards gaining Financial Independence (19:48) and we use a case study to take a look at the 4% rule in more detail (24:40).

We then answer the important question, are there “normal” FIRE people or are they all just bloggers who make a ton of money and thus ignore the “rules” (30:59).

On the second half of the podcast, we talk about how FIRE and travel hacking are related. Is there room for luxury spending in FIRE (33:49)? Is it better to go from FIRE to travel hacking or vice versa, and what lessons does each community have to teach each other (40:45)? Then we answer the important question: do travel hackers actually save money. The answer may or may not surprise you (46:11).

We close out with some advice about how to think about college expenses and advice to avoid in general.

While a slight departure, I found the episode very informative and with implications on my travel hacking. What will I do with the money I am saving and how can I use that to gain more financial independence? If you have similar questions you’ll enjoy this episode!

Links

Money Metagame miles and points audit

Free-quent Flyer Korean Air and Delta awards

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Music: “She” by Still Pluto

0:00 – Housekeeping

3:20 – Upcoming trips

9:13 – Defining FIRE

19:48 – Steps towards gaining FI

24:40 – Case study – 4% rule for an 18 year old wanting to live on 25K: what’s the number they need to hit?

30:59 – Do FIRE bloggers really go use the 4% rule? Are there “normal” FIRE ppl?

33:49 – What room for luxury spending is there with FIRE?

40:45 – What’s the interplay between FIRE/travel hacking? Which is a better place to start?

46:11 – Do travel hackers actually save money? What can they learn from the FIRE community?

53:11 – FIRE + college expenses

58:30 – FIRE advice to be wary of

 

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