This episode features a great conversation with Tom, a teacher who hosts the blog What the FI. Tom shares his story and explains how he has more than doubled his net worth in the last few years, through better budgeting, increased savings rate, and investing in real estate. Despite not starting his path to FI until after turning 40, Tom has his family on a trajectory to hit several lofty personal and financial goals in the next ten years. 

Lives in the Chicago area, got into the teaching profession based on his family

Followed the American Dream – go to college, get a job, get married, have kids

Was doing okay financially, but had no clear goals and started to accumulate debt

Found themselves living paycheck to paycheck, not tracking their spending

By the time he got to his 40s realized retirement wasn’t far off and felt trapped in his job

Wife recognized he was unhappy but he wasn’t ready to listen to advice

Eventually started reading more and listening to podcasts and began to turn the corner

Heard interview with Jemal King, https://www.instagram.com/9to5millionaire/, and that was an inflection point to pursue passive income

Books/audio books have been a significant source of education (50+ books)

• Rich Dad Poor Dad – Robert Kiyosaki
• Set for Life – Scott Trench
• Millionaire Real Estate Investor - Gary Keller
• Book on Rental Property Investing – Brandon Turner
• Long Distance Real Estate Investing – David Greene
• Total Money Makeover – Dave Ramsey
• Retire Before Mom and Dad – Rob Berger
• Little Book of Common Sense Investing - John Bogle
• Simple Path to Wealth - JL Collins
• The 10X Rule – Grant Cardone
• Start with Why – Simon Sinek
• You Are a Bad Ass – Jen Sincero

These have helped with mindset shifts as well as learning about investing and real estate

Much more educated now with how to invest in index funds

Discusses the importance of getting on the same page with your partner

Started to find savings in their monthly budget, increased savings rate from 5% to 50% in a few years

Increased net worth from $150k to $315k

Has outlined long term goals: to become financially independent, getting his time back, own 12 rentals, give back to the community, have $1 million in retirement savings

Has become comfortable with setting lofty goals and not settling

Real Estate Investing:

• Looking to build a portfolio as a way to accumulate wealth rapidly
• Considered a range of options, ultimately found a cash flowing property within an hour
• Went with a SFH (single family home) to rent out as a safer option
• Works with a realtor who also invests in real estate
• Uses a few simple rules to quickly evaluate deals: 1% rule, 50% rule, cash-on-cash ROI
• Blog post: https://whatthefi.com/3-simple-rules-to-quickly-calculate-rental-deals/

Need to forgive yourself for past mistakes, starting at 40 or older is not too late

You can make up a lot of ground by changing your habits

Blog: https://whatthefi.com/

Instagram: https://www.instagram.com/whatthefiguy/