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.
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!
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