We made so many financial missteps and mistakes on the road to FIRE that we need multiple episodes to cover them all! What has been your biggest financial mistake so far? More importantly, what did you learn from it? We'd love to hear from you in the comments, so please share!
You keep beating yourself up over not contributing to Roths at the beginning of your careers, but were they even available when you started working? I ask because Roth IRAs weren't available until 1997, and Roth 401(k)s weren't available until 2006 - and even then, you had to wait until your employer offered one, which very few did initially. Based on your ages, for the first ~10 years of your careers, you would have been able to put away, at most, $2000 a year into a Roth IRA, and nothing into a Roth 401(k).
Really loved this episode! I'm 29 so it's a bit optimistic about what's ahead and what I can do better. Would love to know eventually more about couples finance management, when to buy the house (or build it) and all of that schpiel haha, thanks!
Thank you! We're really glad you liked it. Those are great topics ideas, so thank you for sharing them. We'll surely touch on those down before long! We suspect you've heard the old adage that the best time to start something is yesterday, and the second best time is today - definitely applies to good financial habits and to avoiding mistakes!
Cheers Steven, we've managed to convince our spouses to join us for a few episodes (stay tuned for those). As you rightly point out, this is an important, shared decision when you're in a relationship! Building the house for me was never a question, affording it was and, as with university, the money flows fast and free when you're building. From a mathematical standpoint, the calculations regarding purchasing (or building) a home are straightforward (rent vs. mortgage payment, tax benefits, all the costs of ownership). I think the emotional choices: where, what, investment philosophy (do you consider it an investment?) and how long you think you'll stay are the more difficult ones to parse. Knowing what I know of your work ethic + hustle, FI is well within your grasp! Thanks for watching, .
Something people (especially men) don’t discuss is the cost of a divorce. It is one of the reasons I’ve held off on marriage (besides the finding a partner thing) because it’s just seems so much more difficult to climb back up after that huge of a hit.
Haha, the comments about amps cracked me up. I’ve spent a stupid amount of money on musical equipment, but I was a professional musician. I guess my biggest financial mistake was getting a music degree and working as a professional guitarist for a decade. That was 10 years wasted, being really poor and “following my dreams.” Don’t do it, kids!!!!
I gave $$$$ to friends who went on to become commercially successful musicians and if I knew at the time to ask for and properly document the transactions I would be obscenely wealthy today.
@@mikewallin6049 bummer! Maybe they will remember your help and hook you up some day. I’ll keep my fingers crossed for you! I passed on an opportunity for a record deal in my late teens because I was doing a lot of drugs and I knew I’d end up dead if I took it. Who knows?! I’m clean now, but working in IT. So boring.
with high inflation owning a house has huge advantages. If coupled with low interest rates your effectively getting the house for zero interest. For example if your mortage is 2.625 and inflation is 4 to 5 % your getting ahead. Where as if you were renting you can almost guarantee the landlord will add that inflation to your rent each time you renew your rent
Here's the trick on Real Estate. If you have enough money to afford the house and comfortably loose all that value then its an investment. If you cannot afford it and losing that money will ruin you then it's not.
I'm enjoying these videos/podcasts. I've worked full tie since I was 13 but I'm a bit behind. I put my last year of architecture school on credit cards (while working a ton of hours) Then spent 10 years working low paid jobs with no benefits. So I was clueless. But I didn't know I was clueless. I didn't realize that I could have earned more at that time.
A friend of mine who studies impulsivity and addiction reminded me about the inverse relationship between income, age and delay discounting. It is definitely something that makes it difficult for many people to save when their income is low, stress is high. By the way -- we were 28!!!!
wow! uncanny parallels again and i’m on the other side of the world in singapore! i think we are about the same age so then 20s of not saving and 30s of just keeping the growing family going then finally realising in the 40s! thank you for this great episode 😊
You are welcome! Thanks for sharing, Nelson. We look forward to hearing what you think about Part 2 of our mistakes series - coming in just a few days!
You’re in luck! The podcast version is on Spotify, Apple, and other hosts. Here’s the Spotify link: open.spotify.com/show/0tTwIfjw5krrI8a7vuMh3T?si=y6PACkIiSAaPNgX_hWyPrA&dl_branch=1
We made so many financial missteps and mistakes on the road to FIRE that we need multiple episodes to cover them all! What has been your biggest financial mistake so far? More importantly, what did you learn from it? We'd love to hear from you in the comments, so please share!
Roth IRAs didn't exist until 1998, since you're wondering why you didn't know about them when you were young.
Quite right! We looked it up after the show and felt slightly better about our delayed start. Thanks, John!
You keep beating yourself up over not contributing to Roths at the beginning of your careers, but were they even available when you started working? I ask because Roth IRAs weren't available until 1997, and Roth 401(k)s weren't available until 2006 - and even then, you had to wait until your employer offered one, which very few did initially. Based on your ages, for the first ~10 years of your careers, you would have been able to put away, at most, $2000 a year into a Roth IRA, and nothing into a Roth 401(k).
Fair points! We started working in 1996-7 so an IRA would have been an option but not the 401(k).
Really loved this episode! I'm 29 so it's a bit optimistic about what's ahead and what I can do better. Would love to know eventually more about couples finance management, when to buy the house (or build it) and all of that schpiel haha, thanks!
Thank you! We're really glad you liked it. Those are great topics ideas, so thank you for sharing them. We'll surely touch on those down before long!
We suspect you've heard the old adage that the best time to start something is yesterday, and the second best time is today - definitely applies to good financial habits and to avoiding mistakes!
Cheers Steven, we've managed to convince our spouses to join us for a few episodes (stay tuned for those). As you rightly point out, this is an important, shared decision when you're in a relationship! Building the house for me was never a question, affording it was and, as with university, the money flows fast and free when you're building. From a mathematical standpoint, the calculations regarding purchasing (or building) a home are straightforward (rent vs. mortgage payment, tax benefits, all the costs of ownership). I think the emotional choices: where, what, investment philosophy (do you consider it an investment?) and how long you think you'll stay are the more difficult ones to parse. Knowing what I know of your work ethic + hustle, FI is well within your grasp! Thanks for watching, .
Something people (especially men) don’t discuss is the cost of a divorce. It is one of the reasons I’ve held off on marriage (besides the finding a partner thing) because it’s just seems so much more difficult to climb back up after that huge of a hit.
Haha, the comments about amps cracked me up. I’ve spent a stupid amount of money on musical equipment, but I was a professional musician. I guess my biggest financial mistake was getting a music degree and working as a professional guitarist for a decade. That was 10 years wasted, being really poor and “following my dreams.” Don’t do it, kids!!!!
I gave $$$$ to friends who went on to become commercially successful musicians and if I knew at the time to ask for and properly document the transactions I would be obscenely wealthy today.
@@mikewallin6049 bummer! Maybe they will remember your help and hook you up some day. I’ll keep my fingers crossed for you! I passed on an opportunity for a record deal in my late teens because I was doing a lot of drugs and I knew I’d end up dead if I took it. Who knows?! I’m clean now, but working in IT. So boring.
with high inflation owning a house has huge advantages. If coupled with low interest rates your effectively getting the house for zero interest. For example if your mortage is 2.625 and inflation is 4 to 5 % your getting ahead. Where as if you were renting you can almost guarantee the landlord will add that inflation to your rent each time you renew your rent
If you’re able to hold into perpetuity then it can be a solid investment. But that’s not the reality for most people.
Here's the trick on Real Estate. If you have enough money to afford the house and comfortably loose all that value then its an investment. If you cannot afford it and losing that money will ruin you then it's not.
And the vast majority of people can’t afford it in reality
21:41 You're 100% right. I don't plan to ever consider my house an investment.
Agreed. A primary residence is a liability not an asset.
I'm enjoying these videos/podcasts. I've worked full tie since I was 13 but I'm a bit behind. I put my last year of architecture school on credit cards (while working a ton of hours) Then spent 10 years working low paid jobs with no benefits. So I was clueless. But I didn't know I was clueless. I didn't realize that I could have earned more at that time.
Thanks for the feedback, Robert! We're so glad to learn you're enjoying the content. Best wishes to you.
Keep grinding!
Fellow bass-player here! Love the realness of this conversation and consumer culture!
Thanks!
Roth started in 1998
My dad showed me how to bust the rust on those rims and rattle can 😉
Those little things you don't realize implant something in your brain.
A friend of mine who studies impulsivity and addiction reminded me about the inverse relationship between income, age and delay discounting. It is definitely something that makes it difficult for many people to save when their income is low, stress is high. By the way -- we were 28!!!!
...28? Are you sure...?
@@30by40 Er. No!
wow! uncanny parallels again and i’m on the other side of the world in singapore! i think we are about the same age so then 20s of not saving and 30s of just keeping the growing family going then finally realising in the 40s! thank you for this great episode 😊
You are welcome! Thanks for sharing, Nelson. We look forward to hearing what you think about Part 2 of our mistakes series - coming in just a few days!
Loved the honest discussions both of you had and thank you for the insights!
Thanks, Mabel!
Pls add into Spotify as broadcast 🙏
You’re in luck! The podcast version is on Spotify, Apple, and other hosts. Here’s the Spotify link: open.spotify.com/show/0tTwIfjw5krrI8a7vuMh3T?si=y6PACkIiSAaPNgX_hWyPrA&dl_branch=1