611 | ChooseFI Classic: Financial Independence on an Ordinary Income (Paige & Sam)

Paige started her journey to financial independence at 45 with student loans, negative net worth, and an average income in Los Angeles—yet she'll reach FI by 2025. Sam lives on $12,000 per year in the same expensive city and champions "retiring often" instead of early retirement. Together, they prove that every excuse about FI being impossible is just a limiting belief waiting to be shattered. ## Key Topics Discussed **Introduction and Context** 00:00:00 Brad provides context for this 2017 episode, explaining how Paige challenged their limiting belief about achieving FI in high cost of living areas. **Paige's FI Discovery** 00:05:00 Paige shares how she discovered FI at 44 after getting her first 'real' job, introduced by Sam to Mr. Money Mustache, and started her journey with negative net worth. **Sam's Early FI Journey** 00:15:00 Sam discusses how his parents automated investing for him, the importance of starting early, and his approach to 'retiring often' instead of just early retirement. **Living on $12,000/Year in LA** 00:25:00 Sam breaks down his extraordinarily low burn rate in Los Angeles, including creative housing solutions, no car payments, and extreme DIY lifestyle. **The Alley Will Provide** 00:35:00 Paige and Sam discuss their non-minimalist approach to possessions, finding everything from vacuum cleaners to furniture in alleys and thrift stores. **Housing Arbitrage and The DIY House** 00:45:00 Discussion of how they purchased a house with a gas leak for $475k in LA, using Sam's DIY skills to make it work despite traditional financing challenges. **Breaking Down Limiting Beliefs** 00:55:00 Paige addresses common excuses for not pursuing FI: late start, student loans, high cost of living, average income, and shows how she's overcoming each. **Path to FI by 2025** 01:05:00 Paige outlines her concrete plan to reach FI with less than $500k, leveraging the age 55 rule, catch-up contributions, and eventual Social Security. **Hot Seat Round** 01:15:00 Rapid-fire questions covering favorite blogs, articles, life hacks, biggest mistakes, and advice for their younger selves. ## Notable Quotes "The alley will provide." — **Paige** "Don't retire early, retire often." — **Sam** "The best time to start investing was twenty years ago. The second best time is today." — **Sam** "Earning more, but still living on thirty, I feel so much freer. It feels so different." — **Paige** "Forgive yourself for not having done it sooner. Because if you get hung up on that, you're just going to get stuck." — **Sam** ## Key Takeaways - Calculate your own FI number using 25x your annual expenses, then work backwards to determine your timeline - If you have kids, automate investing for them early—open accounts and make saving the default, not a decision - Explore creative housing solutions in your area: roommates, house hacking, or arbitraging neighborhoods for lower rent - Learn one new DIY skill per month using YouTube—start with something currently costing you money (car maintenance, home repairs) - If you're over 50, maximize catch-up contributions to retirement accounts and research the age 55 rule for your 401(k) - Track where free resources appear in your community—thrift stores, community boards, bulk trash days, online marketplaces - Set up automatic transfers to investment accounts to remove decision fatigue and make saving the default ## Resources and Links - ChooseFI Episode 041 (original) - Mr. Money Mustache Blog - Mad Fientist Blog - Big ERN (Early Retirement Now) - Jim Collins stock series - Frugal Woods - Personal Capital - YouTube (DIY learning) - Jocko Willink podcast * * * **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 page when signing up for your next travel rewards credit card.