ChooseFI Episode 519 Summary: Getting Personal with Personal Finance – Ginger & TJ

Release Date: November 4, 2024

In Episode 519 of the ChooseFI podcast, hosts Ginger and Brad sit down with TJ, a 37-year-old financial independence (FI) achiever, and his wife, Jessica. This episode delves deep into TJ and Jessica's journey toward financial independence, the challenges they've faced, and the strategies they've employed to align their finances with their personal goals. Through candid conversations, actionable insights, and heartfelt stories, listeners gain a comprehensive understanding of the multifaceted path to FI.

1. Introduction to Guests

Ginger warmly introduces TJ and Jessica, highlighting TJ's exceptional qualities and their shared commitment to financial independence.

• Ginger [00:34]: "It's rare to meet someone so successful, so warm, so generous, who is also so very young. We're here today to learn his secrets."

2. Journey to Financial Independence

a. Realizing FI's Purpose

TJ and Jessica describe how their upbringing influenced their saving habits and how they discovered the true purpose behind their savings.

• TJ [01:03]: "We found FI realized that there was a purpose to the savings."

• Jessica [02:10]: "Instead of spending on other things that I already knew I didn't need, I just wanted to save and have available for whatever the future might bring."

b. Initial Savings and Investments

Both TJ and Jessica have engineering backgrounds, providing them with substantial incomes that surpassed their families' previous earnings. This financial boost allowed them to save aggressively.

• TJ [01:57]: "I got a Bachelor’s in mechanical engineering and a master's in nuclear engineering."

• Jessica [02:56]: "I knew a little bit about how to invest some money and make it grow."

c. Influence of ChooseFI and Related Resources

A pivotal moment in their FI journey was discovering the ChooseFI podcast, which offered actionable tips that resonated with their financial goals.

• TJ [03:11]: "One of my good friends and prior coworker Chris Cannon introduced me to the ChooseFI podcast... we realized, hey, this is a method that we can be very intentional about making the money work for us."

• Jessica [46:15]: "Simple Path to Wealth removed a burden and made it clear for us a simple take action path forward."

3. Aligning Financial Plans with Life Goals

a. Breaking Down Expenses

TJ and Jessica meticulously tracked their expenses, identifying areas where they could cut costs and areas where spending aligned with their values.

• Jessica [11:30]: "We started saving even more money there and converting it to Roth."

• TJ [11:40]: "A couple of examples early on that we identified some where we wanted to save some money... switching to a low-cost provider saved us hundreds of dollars a year."

b. Intentional Spending and Saving

They instituted quarterly money dates to review their finances, ensuring that their spending was intentional and aligned with their priorities.

• Jessica [09:32]: "We started tracking our net worth is the big change that happened in 2018."

• TJ [10:03]: "We had a history from the last seven years of every quarter, what all of our accounts were worth and what our thoughts were."

4. Transitioning to Financial Independence

a. Achieving FI Number in 2024

By 2024, TJ and Jessica had successfully reached their essential FI number, enabling them to consider retirement options and spend more time with their family.

• Jessica [07:56]: "We've hit our essential FI number so we don't have to work again."

• TJ [08:03]: "That's what we're choosing to do, is to spend that time as a family."

b. Benefits Achieved: More Time with Family

Financial independence has allowed them to focus on family, particularly enjoying time with their 20-month-old son.

• Jessica [08:09]: "I get the ability to see him each and every day."

5. Personal Challenges and Financial Impact

a. Wife’s Health Crisis

A significant turning point in their financial journey was Jessica's unexpected diagnosis with a rare brain tumor, leading to substantial medical expenses and altering their FI plans.

• TJ [26:42]: "My wife got some scans of her head, and they came back and told us that she had a brain tumor..."

• Jessica [27:36]: "It was a particularly rare brain tumor, and she was going to have to go through treatment."

b. Medical Expenses and Adjusting FI Plans

The couple faced over half a million dollars in medical bills, prompting a reevaluation of their FI number and financial strategies.

• TJ [29:20]: "Even after insurance, we spent well over $50,000 in medical."

• Jessica [31:04]: "It changes our FI number when you add in those expenses, especially when you leave a job that has great healthcare benefits."

6. Coping Mechanisms and Mindset

a. Faith and Community Support

Faith and a supportive community played crucial roles in helping TJ and Jessica navigate the emotional and financial challenges of Jessica's illness.

• Jessica [32:13]: "We don't worry about it with our faith, we do believe that we'll be taken care of no matter what happens."

b. Positive Outlook and Intentional Responses

Their proactive and positive mindset enabled them to make informed decisions amidst uncertainty.

• TJ [41:15]: "It's a mindset as it is to see what the experience is and look back at it."

• Jessica [42:15]: "By doing those actions, that proves that I have some amount of agency and that continues to ground me."

7. Recommendations and Lessons Learned

a. Tracking Net Worth

A key takeaway from TJ and Jessica's journey is the importance of regularly tracking net worth to visualize financial progress and stay motivated.

• TJ [46:07]: "We still put it into a OneNote page and write the numbers down."

• Jessica [48:01]: "The reason though, that that's so impactful is because... you don't see how much you put in and how much it has grown."

b. Insurance Considerations

They emphasize the necessity of planning for insurance post-retirement, highlighting unexpected costs associated with losing employer-sponsored benefits.

• TJ [48:45]: "We have a great company subsidized insurance, but the ACA plan ended up being a lot more when you consider both premiums and out-of-pocket."

c. Emphasizing Flexibility and Intentionality

Flexibility in financial planning and being intentional with spending foster resilience and adaptability during unforeseen circumstances.

• Brad [53:03]: "Say instead, like, no, this is a dynamic process. We're intentional about how we're making decisions and we can change our mind about things."

• Jessica [53:31]: "If you embrace it, it can help you have a great experience every day."

8. Closing Remarks

TJ and Jessica conclude the episode by sharing their personal stories of resilience, emphasizing the importance of alignment in financial and personal goals. They encourage listeners to take intentional actions towards financial independence, assuring them that with the right mindset and strategies, achieving FI is attainable.

• Jessica [54:30]: "As you think about all these things that you're hearing on this episode and all of the episodes, know any resistance that you feel, you know, it's real resistance. But as long as you are still taking the actions, you're driving yourself in the right direction that'll lead to where you want to go."

• TJ [55:03]: "So go take action. Hopefully you can be excited about it and know that other people are making it happen and you can make it happen too."

Notable Quotes

• Ginger [00:34]: "It's rare to meet someone so successful, so warm, so generous, who is also so very young. We're here today to learn his secrets."

• TJ [03:11]: "One of my good friends and prior coworker Chris Cannon introduced me to the ChooseFI podcast... we realized, hey, this is a method that we can be very intentional about making the money work for us."

• Jessica [08:09]: "I get the ability to see him each and every day."

• Jessica [53:31]: "If you embrace it, it can help you have a great experience every day."

• TJ [55:03]: "So go take action. Hopefully you can be excited about it and know that other people are making it happen and you can make it happen too."

Key Takeaways

1. Intentional Saving and Investing: TJ and Jessica's disciplined approach to saving and investing was foundational to their FI journey. Regularly tracking their net worth helped them stay motivated and aligned with their goals.

2. Flexibility in Financial Planning: Their experience underscores the importance of being flexible and adaptable in financial planning, especially when unexpected life events occur.

3. Importance of Alignment: Ensuring that financial decisions align with personal values and life goals is crucial for sustained financial well-being and satisfaction.

4. Resilience Through Community and Faith: Support systems, whether through faith, family, or community, play a significant role in navigating financial and personal challenges.

5. Continuous Learning and Adaptation: Staying informed through resources like the ChooseFI podcast and adopting a growth mindset can empower individuals to make informed financial decisions.

Actionable Tips for Listeners

• Track Your Net Worth: Regularly update your net worth to visualize financial progress and stay motivated.

• Hold Regular Financial Meetings: Set quarterly meetings to review your finances, align on spending, and adjust plans as necessary.

• Plan for Insurance Needs: Before retiring or achieving FI, carefully plan for insurance coverage to avoid unexpected costs.

• Stay Flexible: Be prepared to adapt your financial strategies in response to life’s uncertainties.

• Leverage Community Resources: Engage with communities and resources that support your FI journey, providing both knowledge and emotional support.

This episode of ChooseFI offers a profound look into the intersection of personal life challenges and financial independence. TJ and Jessica's story is a testament to the power of intentional financial planning, resilience, and the unwavering pursuit of living life on one’s own terms. Whether you're just beginning your FI journey or further along the path, their experiences provide valuable lessons and inspiration.