That’s us, by the way. We’re P and J, and if you’re new here, this blog is about our FI journey — figuring it out as we go and sharing what we actually learn along the way, the good and the bad.

We landed in Clark, Pampanga — a small economic zone next to Angeles City, about two hours north of Manila. Clean, organised, and quite safe by Philippine standards. No beach, and the crowd is a mix of golfers, casino regulars, and a surprisingly large Korean expat community with more Korean restaurants than you’d ever expect to find in the Philippines. For everyone else it’s pretty quiet, which honestly suited us fine when we were heads down building the business.

If you’re thinking about setting up a business in the Philippines, this post should give you a realistic picture of what it’s actually like — the business side, the people, the lifestyle, and what it meant for our FI progress.

Why Clark?

The Philippines has genuinely high English proficiency across the country, which is a big part of why it became such a dominant outsourcing hub in Southeast Asia. Manila and Cebu are the biggest and best-known cities for that kind of work, so you’re probably wondering why we ended up in Clark of all places.

Honestly, two things. We had friends already living and building a business there, and when you’re moving to a country you’re still figuring out, having someone you actually trust on the ground is everything. We’d also been to other parts of the Philippines before and, look, it didn’t go great. Dodgy food, some questionable characters — we were probably just naive and didn’t know what to watch out for at the time. Clark had a reputation for being a different kind of place, and our friends backed that up. It felt manageable, stable, and had enough going on business-wise to actually build something. What we didn’t expect was just how much we’d learn — about business, about people, and honestly about ourselves — once we were actually living there.

The Outsourcing Reality Nobody Talks About

And Clark, it turns out, is absolutely packed with outsourcing companies. Business Process Outsourcing is one of the Philippines’ biggest industries — the country consistently ranks as one of the top outsourcing destinations in the world, and when you’re on the ground there you can see exactly why. English proficiency is high, the workforce is young and hungry to work, and the labour costs compared to Australia are honestly kind of shocking at first. A BPO worker in Clark typically earns somewhere between ₱15,000–₱30,000 a month, which works out to roughly AUD $400–$800. For the roles we were hiring for, that’s a fraction of what we’d have paid back home.

That gap is exactly what drew us there in the first place, and look — it’s real, it works, and we’re not going to pretend otherwise. But what we didn’t expect was what came next.

What We Chose to Do Differently

When you hire people at salaries that feel shockingly low compared to what you’re used to, you have a choice. You can extract maximum value from that gap and move on, or you can think a bit harder about what you’re building and who you’re building it with. We chose the second option — not out of guilt, but because it made sense to us as people and as business owners.

Filipino workers, in our experience, are genuinely warm, loyal, and hardworking. But the working culture — especially in the BPO world — can default to long hours, high turnover, and not a lot of investment in the actual human doing the work. Coming from Australia, where we’d experienced a workplace culture that actually values work-life balance and professional development when it’s done well, we wanted to bring some of that with us. So instead of saying “work harder, work longer,” we invested in our team. We taught them how we think about work, talked about efficiency over hours, created a workspace that felt respectful rather than transactional, and tried to show — not just tell — what a sustainable working environment looks like.

Did it take longer to get things running smoothly? Yes. Did we misread cultural cues more times than we’d like to admit? Absolutely. But we’re genuinely happy about the people we worked with and the relationships we built. That part we wouldn’t trade.

The Harder Parts

Let’s be honest about the challenges, because anyone considering geo arbitrage in the Philippines deserves a clear picture.

Safety and crime first. Clark is safer than many parts of the Philippines, but you still need to stay switched on. Petty crime, scams, and occasional more serious incidents are part of the reality in some areas. Food quality and clean water were trickier than we expected too. The Philippines has incredible food, but food safety standards aren’t always consistent outside well-established places. We didn’t drink tap water (even filtered) the entire time we were there. These things sound small but they add up to real lifestyle friction, especially when you care about your health and training.

Speaking of training — we’re both active people, and building a routine that actually worked took time. The heat and humidity are no joke. We figured it out eventually, but it required genuinely understanding the environment before we could work with it rather than against it. The cultural side was probably the most nuanced challenge. Filipino culture is warm and relationship-focused, which is wonderful, but there are communication dynamics around hierarchy, around saying no, around how feedback lands, that are genuinely different from what we were used to in Australia. Managing people effectively meant understanding their behaviours first, not just their skills.

The FI Milestone We Hit There

Here’s the part that made all the friction worth it. During our time in Clark, we hit our first major FI milestone. We reached what we consider our lean FI point — the number where, if we stripped things back, our investments could theoretically sustain us at a basic level. It wasn’t the full, comfortable FI we’re still working toward, but it was the first real proof of concept that told us this is working, keep going.

Geo arbitrage was a meaningful part of that. Running a business with a lower cost base in the Philippines while investing the difference back into our portfolio accelerated our timeline in a way that would have been very hard to replicate staying in Australia. Every year we were there, our goals shifted a little. What we wanted from life became clearer. What we were willing to tolerate became narrower. And our vision of what “enough” actually looks like got sharper.

Why We Left and What Comes Next

The Philippines wasn’t home for us long-term. Not because it’s a bad place — it genuinely isn’t — but because the lifestyle we want going forward didn’t match what Clark could offer us at this stage of life. We’re entering our 40s to 50s now, and we’re increasingly clear about what we want our days to look like: more flexibility, more freedom, more time doing things we love rather than time spent managing a business. The Philippines chapter gave us a lot, but it also clarified — through living it — what “enough work” actually means to us.

Thanks to the team we built there, both of us is now working only part-time. That’s the real payoff of investing in good people and building systems rather than just trading your own hours. We’ve since moved on and we’re currently on an island in Korea, a new chapter we’re still figuring out and will write more about soon.

What FI Followers Can Take From This

If you’re considering geo arbitrage or outsourcing as part of your FI strategy, here’s what we’d want you to walk away with.

The cost-of-living gap is real and significant. The Philippines runs roughly 60–70% cheaper than Australia in everyday expenses, and that gap, invested consistently, compounds meaningfully over time. But outsourcing only frees up your time if you actually invest in building proper systems and treating your team well. Cheap labour that turns over constantly is actually expensive. Good people who understand your business and stay are an asset.

Geo arbitrage also isn’t just about earning in a strong currency and spending in a weak one. Living in a developing country for 3.5 years changed how we think about money, security, enough, and what actually matters. That mindset shift might honestly be the most valuable thing we came home with. And it’s not for everyone, and that’s okay. It requires flexibility, adaptability, and a genuine willingness to be uncomfortable. If it doesn’t suit your life, there are other ways to accelerate your FI journey.

The last thing, and probably the most important: revisit your goals every year. Our vision of FI at the start of the Philippines chapter looked different from our vision at the end. That’s not failure — that’s just what happens when you’re honest with yourself about what you’re actually learning.

We’ll keep sharing more as we settle into this next phase. If you have questions about outsourcing, geo arbitrage, or what life in the Philippines was actually like day to day, drop them in the comments.

P & J​

Over the past few years, I’ve talked to dozens of people – friends, family, people in the community – who want to get their finances sorted. They’re motivated, they’re ready to make changes, and they genuinely want to build a better financial future.

But here’s what I keep seeing: they have no idea where to start. I was there, too.

Growing up, money wasn’t something we talked about openly at the dinner table. It was a bit taboo, you know? Even now, when someone asks me, “Should I invest in ETFs or individual stocks?” but they’ve never actually thought about why they’re even investing in the first place, it’s hard to give them an answer that actually helps. When someone wants to know the “best” savings rate but hasn’t defined what they’re saving for, we’re putting the cart way before the horse.

The truth is, investing sounds absolutely daunting when you don’t have a clear mindset about your goals and vision for life. Most people have this vague idea that they should “be better with money” or “start investing,” but without the foundational knowledge and mindset, they’re basically trying to build a house without knowing how to read the blueprints.

That’s why I wrote this article.

These 20 books won’t turn you into a finance expert overnight. What they will do is give you the base knowledge and mental framework you need to actually make smart decisions about your money. They’ll help you figure out what you want from life before you start throwing money at investments you don’t understand.

Because financial independence isn’t really about money. It’s about designing a life you don’t need to escape from and then building the financial systems to support it.

How to Actually Use This List (Please Read This Bit)

I’m not expecting you to read all 20 books next month. That would be ridiculous, and honestly, who has that kind of time?

Here’s what I am suggesting:

• Pick one or two that sound interesting and start there
• Don’t force yourself to agree with everything you read
• Take what works, leave what doesn’t
• Come back to this list as you grow and change

These books are here to help you question assumptions, build simple systems, understand investing without the fear, and design a life where money supports you instead of controlling you.

Think of this as a conversation starter with yourself, not homework.

Stage 1: The Awakening

Here’s the thing about financial independence: it starts in your head, not your bank account.

Before you touch a budget spreadsheet or open an investment account, you need to shift how you think about money, work, and what “wealth” even means. This was the hardest part for me, honestly – unlearning all the messages I’d absorbed about what “success” was supposed to look like.

1. The Psychology of Money by Morgan Housel

If you only read one book from this entire list, honestly, make it this one.

Morgan Housel’s whole point is beautifully simple: financial success has way more to do with how you behave than how smart you are.

This book explains why brilliant people make terrible money decisions, why patience beats cleverness, and why your relationship with money matters more than any “perfect” investment strategy.

It’s the kind of book that quietly recalibrates your thinking without you even realising it’s happening. I’ve gone back to it multiple times, and each time I find something new that resonates.

If you’re more of a visual learner, there’s a brilliant YouTube video that explains the book in about 33 minutes with animations. Sometimes watching it first helps you decide if the book is worth your time whatever works for you.

2. The Millionaire Next Door by Thomas J. Stanley & William D. Danko

This book completely destroys the myth that wealthy people drive luxury cars and live in mansions.

Based on actual research (not just opinions), it shows that real millionaires often live modestly, drive normal cars, and avoid the trap of lifestyle inflation.

For those of us just starting out, this book gives you permission to stop trying to “look successful” and focus on actually building wealth quietly. There’s something really liberating about realising you don’t have to keep up appearances, but you can just do what works for you.

3. Rich Dad Poor Dad by Robert Kiyosaki

This book is controversial. Some people love it, some people reckon it’s overblown.

But here’s why it’s still worth reading: it might be the first thing that makes you question the whole “study hard, get a good job, work until you’re 65” script that we’ve all been fed since primary school. And many of us grew up with that message on repeat.

The basic ideas that income alone doesn’t make you wealthy, that assets put money in your pocket whilst liabilities take it out, that financial education matters more than fancy degrees. These concepts click for a lot of people when they read this book.

Take it for the perspective shift, not as a step-by-step guide.

4. Your Money or Your Life by Vicki Robin & Joe Dominguez

This is a classic from the early days of the FI movement.

Instead of jumping straight into tactics and numbers, it asks you a question that most of us avoid: Is the way you’re earning and spending money actually aligned with the life you want to live?

The book reframes money as “life energy”. Basically, the hours of your life you’re trading for a wage. Once you start seeing it that way, your whole relationship with work and spending starts to shift.

Fair warning: this one can get a bit uncomfortable. But sometimes that discomfort is exactly what we need to create real change.

Stage 2: Getting Control Without Losing Your Mind

Once you’ve started shifting your mindset, the next step is getting some basic control over your money.

And when I say “control,” I don’t mean perfection. I’m not talking about tracking every single coffee or beating yourself up over a spontaneous purchase. We’re just looking for simple systems that work, ones you can actually stick to without feeling suffocated.

5. The Barefoot Investor by Scott Pape

This is probably the most beginner-friendly money book I’ve ever read, and it’s Australian, which is a bonus.

Scott Pape breaks everything down into clear “buckets,” shows you how to automate your money, and makes debt management feel actually doable instead of overwhelming.

The reason it works is because it removes all the daily decision-making. You set up the system once, and then it runs on autopilot. Which is perfect because we’ve all got enough to think about without constantly making money decisions.

If your money situation currently feels chaotic, read this book first.

6. I Will Teach You to Be Rich by Ramit Sethi

Despite the kind of obnoxious title, this book is actually really grounded and practical.

Ramit Sethi’s whole philosophy is: automate the boring stuff so you can spend guilt-free on the things you actually care about.

Instead of preaching extreme frugality and never buying coffee (you know, that tired advice we’ve all heard), he focuses on conscious spending, automation, and aligning your money with your actual values.

For a lot of people pursuing FI, this book is permission to build wealth without being miserable in the process.

7. Total Money Makeover by Dave Ramsey

Dave Ramsey’s approach is strict. Some would say really strict.

But if you’re drowning in debt, struggling with emotional spending, or just need someone to give you clear, non-negotiable rules to follow, this book can create serious momentum.

You don’t have to adopt everything long-term. But it can be powerful for getting unstuck and restoring some confidence in your ability to handle money.

8. The Simple Path to Wealth by JL Collins

JL Collins literally wrote this as letters to his daughter, which is why it feels so refreshingly straightforward.

The core message: live below your means, invest in index funds, and stay the course.

For many people, this becomes the bridge between “I should probably save money” and “I’m actually investing now” without all the fear and complexity that usually comes with it.

Stage 3: Investing Without Fear

Here’s the thing: you don’t need to become an investing genius to reach financial independence.

But you do need to understand the basics well enough to avoid expensive mistakes and not panic-sell every time the market drops.

These books focus on principles, not predictions. And honestly, that’s the approach that’s kept me sane through market volatility.

9. The Little Book of Common Sense Investing by John Bogle

If you’re going to read just one investing book, this might be it.

John Bogle’s message is beautifully simple: own the whole market, keep costs low, stay invested.

This book explains the philosophy behind index investing – basically, why buying a little bit of everything and holding onto it for the long haul works so well. And the best part? Bogle explains it all in plain English, without the jargon or the hype that makes investing feel intimidating. It’s refreshingly straightforward.

10. A Random Walk Down Wall Street by Burton Malkiel

This is a classic for a reason.

The author explains something that feels counterintuitive at first: markets are basically unpredictable, most “expert” strategies actually underperform over time, and patient, consistent investing beats trying to outsmart the market.

What I appreciate about this book is how it gently steers you away from the stress of trying to time the market or pick the next hot stock. Instead, it shows you why evidence-based, admittedly boring investing is actually the most effective approach. Sometimes boring is exactly what you want.

11. The Intelligent Investor by Benjamin Graham

This book is dense. Like, really dense. You definitely don’t need to read every single page, and honestly, most people don’t.

But there are some genuinely brilliant ideas in here like “margin of safety” (basically, don’t overpay for investments), thinking about stocks as if you’re buying a piece of an actual business, and keeping your emotions in check when the market’s doing its wild up-and-down thing.

My advice? Read it slowly. Skip the super technical bits without guilt. Just absorb what clicks for you. I’ve probably only read about 60% of it myself, and I’m totally fine with that. No one’s giving out gold stars for finishing the whole thing.

12. Common Stocks and Uncommon Profits by Philip Fisher

Even if you end up just sticking with index funds (which is totally fine, and what I mostly do), there’s real value in understanding how to think about business quality and what makes some companies actually worth investing in long-term.

This book teaches you that more qualitative way of looking at investments. It’s less about the numbers and more about: Is this a good business? Do they have something their competitors don’t? Will they still be around in 10 years?

Honestly, it just makes you a more informed investor overall, even if you never pick individual stocks.

Stage 4: Designing the FI Life

This is where things get really interesting.

FI stops being about numbers and spreadsheets and starts being about: What do you actually want your life to look like?

For me, this stage was about questioning whether I even wanted the traditional path like marriage, house, kids by a certain age, or if I wanted to design something different. These books helped me think through that.

13. Die With Zero by Bill Perkins

Bill Perkins challenges the idea that saving more is always better. I read this book recently because I thought this book is against the FI mindset and not for me. But I was wrong.

He talks about timing your experiences, balancing future security with actually living your life now, and avoiding the trap of dying with a pile of unused wealth.

For those of us pursuing FI, it’s a helpful reminder that money is a tool, not a scoreboard. And that sometimes, the best investment is actually living.

14. Essentialism by Greg McKeown

This isn’t technically a finance book, but honestly, it’s so relevant to the whole FI journey.

Greg McKeown teaches you how to say no on purpose, cut out the stuff that doesn’t actually matter, and focus only on what truly does.

Financial independence becomes so much easier when your life is intentionally simple instead of cluttered with things you don’t actually care about. Trust me on this one, I’ve learned this the hard way.

15. The 4-Hour Workweek by Tim Ferriss

I actually read this book more than a decade ago, back when I had no idea what financial independence even was. And honestly? I loved the concept, thought it sounded absolutely fantastic, but I had no clue what to do next. Like, okay great, but how?

This book was written nearly 20 years ago now, so some of Tim Ferriss’s specific tactics are pretty outdated. But the core question it asks is still really powerful:

What if work doesn’t have to dominate your entire life? Sounds great, hey?

Just questioning that default assumption – that we’re all supposed to work 40+ hours a week until we’re 65 – can honestly be life-changing. Especially if you’ve grown up watching your parents completely exhaust themselves for work.

The thing is, this book plants the seed. It makes you start questioning. And that’s valuable, even if it doesn’t give you all the answers right away.

16. Early Retirement Extreme by Jacob Lund Fisker

Fair warning: this book is pretty out there.

Jacob Lund Fisker goes deep into systems thinking, extreme efficiency, and basically questioning everything you think you “need” in life.

You definitely don’t have to live the way he describes. Honestly, it’s quite intense. But reading it does something useful: it expands your sense of what’s actually possible and makes your own version of FI feel way more doable by comparison.

Stage 5: Long-Term Wisdom & Identity

Financial independence is a marathon, not a sprint. These books help you sustain the mindset for the long haul.

And honestly? The mental game is so much harder than the actual maths. These books have genuinely helped me stay grounded when everything felt too overwhelming.

17. Thinking, Fast and Slow by Daniel Kahneman

Daniel Kahneman breaks down how our brains actually work, and more importantly, how our cognitive biases completely mess with our decision-making.

Understanding stuff like overconfidence, loss aversion, and why we make emotional decisions can genuinely improve your financial choices over time.

Not gonna lie, it’s dense. But it’s worth pushing through.

18. Atomic Habits by James Clear

Wealth is not built through one big dramatic decision. It’s built through small, repeated actions over time.

James Clear shows you how habits compound, why systems beat goals, and how your identity drives your behaviour.

It’s perfect for weaving FI principles into your daily life without completely burning out. Because let’s be real, we’re in this for the long haul, not some 30-day challenge.

19. Man’s Search for Meaning by Viktor Frankl

Viktor Frankl’s book is a powerful reminder that freedom alone isn’t the same as fulfilment.

Financial independence without some sense of purpose or meaning? It can feel surprisingly hollow. This book really helps you think about the “why” behind everything you’re working towards.

It’s such a grounding read, and it complements the whole FI journey beautifully.

20. The Almanack of Naval Ravikant by Eric Jorgenson

This book mixes wealth creation, leverage, and happiness philosophy in a really modern, accessible way.

What I love about Naval’s perspective is that it goes way beyond just money, he talks about freedom of time, freedom of mind, and freedom of choice.

It’s a nice way to round out your thinking about what financial independence actually means.

How to Actually Read These Without Overwhelming Yourself

Here’s my simple approach:

• Pick one book every 3–4 weeks
• Highlight ideas that resonate, not rules you have to follow
• Revisit your favourites once a year as you grow
• Don’t feel guilty if you DNF (did not finish) a book that’s not working for you

Your understanding will evolve as your life does. That’s totally normal.

Final Thoughts: This Is Just the Beginning

Financial independence isn’t about retiring early just to tick it off some list.

It’s about building a life where you actually have choices. Where work becomes optional. Where you’re not stuck because of money decisions you made years ago when you didn’t know any better.

These books won’t give you some perfect, paint-by-numbers plan. What they will give you is clarity, confidence, and perspective and often, that happens way before your bank account balance even changes.

And honestly? That mental shift is where everything really starts.

So pick one book. Read it slowly. Let it properly sink in.

Then come back and grab another one when you’re ready.

You’ve absolutely got this.

For the longest time, I had mates who swore they couldn’t save. There was always something like car repairs, birthday pressies, that thing they absolutely needed from Amazon at 2 AM. And honestly? I’d been there too. Every month felt like this financial treadmill where money came in and immediately disappeared into some void I couldn’t quite explain.

But here’s what I’ve learnt after years of trying (and failing, and trying again): building wealth isn’t about making dramatic sacrifices or suddenly earning twice your salary. It’s not about living on two-minute noodles and cancelling every fun plan you have.

It’s actually way simpler than that. And way less painful.

The real secret is creating small, totally doable habits that make saving feel natural instead of like pulling teeth. It’s about setting up a system where putting money away becomes the path of least resistance, not some heroic act of willpower you have to summon every single day.

This isn’t about turning into someone who reuses tea bags and never buys coffee. It’s about building a life where your money actually works for you, where you’re not constantly stressed about the balance in your account, and where you can actually afford the things that matter to you.

Whether you’re saving for a house deposit, trying to get out of debt, planning a trip that doesn’t involve maxing out a credit card, or just wanting to sleep better at night knowing you’ve got a cushion, these habits will get you there.

So let’s talk about what actually works.ving financial peace isn’t about making massive, painful sacrifices? What if it’s not about earning a six-figure salary or winning the lottery?

The truth is, building a healthy savings account is the result of small, consistent, and often automatic habits. It’s about creating a system where saving money becomes the easy choice, not the difficult one. It’s about shifting your mindset from restriction to empowerment. This isn’t a guide to becoming a miser; it’s a roadmap to building a life where your money works for you, not the other way around.

By transforming your approach and implementing a few key habits, you can build the financial future you dream of—whether that’s a down payment on a house, a debt-free life, a dream vacation, or the simple, profound security of knowing you’re prepared for whatever life throws your way.

Let’s dive into the habits that will get you there.

Part 1: The Foundation – Getting Your Head in the Game

Before we talk about numbers and accounts and apps, we need to talk about mindset. Because trust me, without getting this part right, no savings strategy in the world is going to stick.

Habit 1: Know Exactly Why You’re Doing This

Saving money just to save money? That’s a fast track to giving up in three weeks. You need a reason that actually matters to you—something that makes you care when you’re staring at a shopping cart full of stuff you don’t need.

Stop saying “I should save more” and start getting specific. Really specific:

• “I’m putting away $10,000 for an emergency fund so I can stop panicking every time my car makes a weird noise.”
• “I’m saving $3,000 for a trip to Italy in two years because life’s too short and I’ve always wanted to see the Amalfi Coast.”
• “I’m building up $25,000 over the next four years so I can finally stop throwing money at rent and buy my own place.”

Write it down. Put it somewhere you’ll see it. Change your phone wallpaper to a picture of your goal if that helps. When you connect today’s small choice to tomorrow’s big win, suddenly skipping that impulse buy doesn’t feel like deprivation—it feels like progress.

Habit 2: Stop Calling It a Budget (Call It Your Freedom Plan)

The word “budget” makes most people want to run screaming. It sounds restrictive and boring and like something a stern accountant would force on you.

So let’s rename it. This is your freedom plan. It’s not about what you can’t have—it’s about directing your money towards the stuff you actually care about.

The 50/30/20 rule has saved my sanity more times than I can count:

• 50% for Needs: Rent, utilities, groceries, transport, insurance – the stuff you actually need to function.
• 30% for Wants: Dinner with mates, streaming services, hobbies, that ridiculously expensive candle that costs $40 but smells amazing.
• 20% for Savings & Debt: This goes straight to your future – emergency fund, super, crushing that credit card debt.

You can use apps like Pocketbook or YNAB, or just a simple spreadsheet if that’s more your speed. The point is to see where your money is actually going, because you can’t fix what you can’t see.

Habit 3: Give Yourself Grace When You Mess Up

You will mess up. You’ll have a shocker of a week and order Uber Eats four nights in a row. You’ll see something online and click “buy” before your rational brain has a chance to intervene. It happens to literally everyone.

The difference between people who succeed at saving and people who don’t isn’t that some people never mess up. It’s that successful savers don’t let one slip-up become a full-blown financial spiral.

This is what I call the “stuff it” effect: “Well, I already blew my budget this week, so stuff it, might as well buy that expensive thing I’ve been eyeing.” Don’t fall into this trap.

Instead, just acknowledge it, learn from it, and move on with your next decision. Consistency over time beats perfection every single time.

Part 2: The System – Making It Automatic (So You Don’t Have to Think)

The best habits are the ones you don’t have to think about. Build a system, and willpower becomes optional.

Habit 4: Pay Yourself First (This Is Non-Negotiable)

This is the habit that changed everything for me. Most people spend their money on bills and life and whatever’s fun that month, and then save whatever’s left over. Which is usually… nothing.

Flip it around. The day your pay hits, have money automatically transfer to your savings account. Whether it’s $50 or $500, make it disappear before you have a chance to spend it.

This isn’t about being noble or having incredible discipline. It’s about removing the decision entirely. You can’t spend what you don’t see.

Habit 5: Let Technology Round Up for You

This one feels like cheating, and I love it. Apps like Raiz and some bank apps will round up your purchases to the nearest dollar and stash the difference in savings or investments.

That $3.50 coffee becomes $4.00, with $0.50 going into your savings. It’s invisible. You won’t even notice it. But over a year, those tiny amounts add up to real money, sometimes hundreds or thousands of dollars and you didn’t have to do anything.

Habit 6: Automate Every Bill You Can

Late fees are the absolute worst. They’re basically a tax on being disorganised, and nobody needs that.

Set up direct debit for everything: rent, utilities, car payments, credit cards (at least the minimum). Not only does this save you from wasting money on late fees, it also protects your credit score and gives you a clear picture of what you actually have left to work with each month.

Part 3: The Daily Tactics – Where the Real Money Is

This is where small changes add up fast. Tiny tweaks to how you spend day-to-day can free up a shocking amount of money.

Habit 7: Wait 30 Days Before Buying Anything Big

Impulse purchases are the enemy of intentional living. To fight back, I use the 30-day rule for anything over $100 (or whatever threshold makes sense for you).

When you want to buy something, write it down. Then wait. At the end of 30 days, look at the list again. Most of the time, the craving will have completely disappeared. And if you still want it? Cool, then buy it knowing it’s a real choice, not just your brain’s dopamine receptors making decisions for you.

Habit 8: Unsubscribe from the Temptation Machine

Those daily emails from your favourite stores aren’t just innocent updates. They’re carefully designed to make you feel like you’re missing out and need to buy RIGHT NOW.

Take 15 minutes and go on an unsubscribe rampage. Email lists, social media accounts from brands that exist only to make you want things—get rid of them. Curate your digital environment so it’s not constantly screaming at you to spend money.

Your wallet will thank you.

Habit 9: Plan Your Meals (Even If You Hate the Idea)

Food is probably one of your biggest expenses, and it’s also one of the most fixable. Spending an hour on Sunday to plan your week’s meals and make a shopping list can save you hundreds every month.

It stops those expensive last-minute takeaway orders and cuts down on food waste (which is literally just throwing money in the bin). You don’t have to become a meal prep influencer—just having a plan makes all the difference.

Habit 10: Think in Cost-Per-Use, Not Just Price

This mindset shift is huge. Instead of always buying the cheapest option, start thinking about how much something costs per use.

A $30 pair of shoes you wear five times? That’s $6 per wear. A $180 pair of quality boots you wear 300 times? That’s $0.60 per wear.

Investing in quality items that last saves you money over time. Plus, you end up with stuff you actually like instead of constantly replacing cheap things that fall apart.

Part 4: Making Your Money Grow

Saving is step one. But you also want that money to actually work for you whilst it sits there.

Habit 11: Get a High-Interest Savings Account

If your savings are sitting in a regular bank account earning basically nothing (like 0.01% interest), you’re leaving money on the table. Online banks and some traditional banks offer high-interest savings accounts with rates that are significantly better.

Your money grows faster just by existing there, thanks to compound interest. Same government guarantee, same safety, way better return. It’s a no-brainer.

Habit 12: Save Your Windfalls Immediately

When you get unexpected money like a bonus, tax refund, birthday cash, money from selling stuff, the temptation is to treat it as free spending money.

Instead, make it a habit to immediately transfer at least half of any windfall straight into savings or towards paying off debt. Think of it as a present to your future self. These windfalls can be massive accelerators for your goals if you let them.

Habit 13: Have a Monthly Money Date

Once a month, sit down for 20 minutes and check in with your finances. Review your budget, see how you’re tracking towards your goals, look for any areas to improve.

This keeps you engaged and aware. You’ll catch problems early, you can make adjustments, and most importantly, you get to celebrate your wins. Seeing that savings number go up is incredibly motivating.

The Bottom Line

You don’t need to implement all 13 of these habits tomorrow. That’s overwhelming and honestly, a great way to burn out and quit.

Just pick one. Maybe it’s automating your savings. Maybe it’s unsubscribing from all those marketing emails. Start there. Get that one habit down until it feels natural. Then add another.

Every single dollar you save is a vote for the future you want. It’s choosing freedom over stress, security over uncertainty, and a life you designed instead of one that just happened to you.

The journey starts with one habit. Just one. Pick it. Start today.

Your future self is going to be so glad you did.

As I reflect on the year that has just passed, I can’t help but think about the transformative experiences that shaped my journey. Every year has its ups and downs but some stand out more than others. For me, 2024 was a defining moment where I faced challenges that prompted me to grow in ways I never expected. The events of this year not only tested my resilience but also led to some profound realisations about life and my aspirations.

Here’s a quick snapshot of the year:

• Dealing with reality – Our second year running an arbitrage business brought plenty of dramas.
• Unforgettable experiences – A six-month work trip took me to seven cities across five countries.
• Financial challenges – Supporting my dad through a second surgery and buying him a car took a toll.
• New challenges – I registered for two courses, started a new business, and finally began saying no to opportunities that didn’t align with my goals.
• Best outcome – We hit $1 million in shares, marking a major financial milestone.

Dealing with Reality: Our Arbitrage Business in Year Two

• Align a business with long term goals: If your business doesn’t bring you closer to the lifestyle you want, it might not be worth pursuing, especially depending on your age and the financial status.
• Fear is the enemy: Starting something new can be daunting, particularly when it’s outside your comfort zone. Confronting and overcoming fear is essential for personal and professional growth.
• Delegation is key: A business that depends entirely on you can quickly become a burden. Building systems or finding the right people to take over critical roles is essential for creating a sustainable business.

Unforgettable Experiences: Travelling to Seven Cities Across Five Countries

• Balance is essential: Travel can be incredibly enriching, but it’s vital to balance it with downtime for rest and reflection.
• Learn to say no: Not every opportunity is worth the time or energy, especially if it doesn’t align with your long-term goals or preferred lifestyle.
• Weigh the financial impact: While the trip was a memorable adventure, it wasn’t financially beneficial. Pre- and post-work travel expenses, along with Paul’s airfares ended up costing us more than we earned from the trip.

Financial Challenges: A Reminder of What Financial Freedom Means

• Flexibility on finance is key: Financial independence isn’t just about hitting a magic number but it’s about having the flexibility to handle life’s unpredictability without unnecessary stress.
• Base FI provides peace of mind: Reaching base FI gave us the confidence to tackle these expenses head on without financial worry.
• Fat FI is the next goal: These experiences reinforced why we’re aiming higher – building a cushion for unexpected challenges is necessary.

New Challenges: Learning and Starting New Ventures

• The value of education: Investing in learning can push you out of your comfort zone and open up new opportunities.
• Saying no is empowering: Turning down opportunities that don’t align with your vision is essential for staying on track.
• Growth requires discomfort: Starting a new business felt risky, but it aligned with our long-term goals and reminded me that growth often comes from stepping into the unknown.

Best Outcome: Reaching $1 Million in Shares

• $1 million isn’t enough: For the lifestyle we want, we need to go beyond shares and aim for something more robust.
• Diversify income streams: Continue to create passive income sources from real estate, dividends and create extra other investment or business is essential for achieving Fat FI.
• Regular review is essential: Life evolves and so do financial needs. It’s crucial to revisit and adjust your financial plans as circumstances change.

Looking Ahead to 2025

• Scaling the new business: My goal is to build the business into something sustainable and self-sufficient, so we have the freedom to step away for any length of time without it falling apart.
• Expanding passive income streams: While continuing to invest in the stock market, I’ll also explore other opportunities, like online businesses, to create more reliable and diverse income sources.
• Prioritising health and relationships: Financial independence shouldn’t come at the cost of personal wellbeing or meaningful connections. This year, I’m making space for both.
• Saying NO: I’m committed to staying focused on opportunities that align with my long-term goals and letting go of distractions that pull me off course.

Final Thoughts

2024 was a year of growth, challenges, and profound realisations. It pushed me in ways I didn’t expect but it also brought invaluable lessons about overcoming fear, maintaining focus and finding fulfilment. Despite the ups and downs, I wouldn’t trade these experiences for anything.

If you’re working toward financial independence, my advice is simple – create your own path. The traditional FIRE framework doesn’t suit everyone, and that’s perfectly fine. Life is short—align your journey with what truly matters to you.

How was your 2024? I’d love to hear your reflections and lessons learned. Together, we can share, inspire and support each other on this incredible journey.

When it comes to Financial Independence (FI), what can you think of first in your mind?

When Paul and I first came across the FIRE (Financial Independence, Retire Early) movement in the mid-2010s, I didn’t get into the weeds. I just set personal goals, milestones and treated it as a step-by-step journey.

As the FI world continues to evolve, we can easily miss there are more tailored approaches, diverse tactics and shifting mindsets rising. I realised I’d fallen behind the curve. With everyone has different values and lifestyles, so the traditional way of FI – started from small group of people – is no longer the only way forward, nor is it suited to everyone.

Financial independence means living without relying on a regular salary or paycheck. It’s a powerful and liberating goal. And it’s personal. You can shape it around your own lifestyle, values, and passions. To kick off this post, I want to revisit the core meaning of FI, explore the different types, and break down the key principles to help you discover the path that works best for you.

What is Financial Independence?

Financial independence (FI) means having enough passive income or assets to cover your living expenses without needing to work actively or being employeed as a full-timer. If your assets generates enough income to cover your lifestyle indefinitely, you have achieved financial independence (FI). In practical terms, many in the FI community define this as accumulating roughly 25 times your annual expenses (the basis of the “4% rule” for withdrawals)​. But it’s not just about having money, it’s about freedom, security, and the ability to make life choices without being bound by financial limitations.

Financial Independence, Retire Early (FIRE) is the broader movement built around reaching FI much earlier than the traditional retirement age (often decades early) through aggressive saving and investing. FIRE serves as an overarching concept that encompasses a spectrum of approaches to FI, from ultra-frugal to very cushy lifestyles. In Australia, where superannuation (retirement pension accounts) typically can’t be accessed until around age 60, FIRE strategies usually involve building substantial personal investments outside super.

In today’s world, the cost of living, home ownership, and maintaining a comfortable lifestyle often require significant financial resources. Many people find themselves working mainly to afford their lifestyle and material possessions. Achieving financial independence breaks this cycle. It gives you the freedom to focus on what truly matters – for example, spending more time with family, travelling, pursuing passions, or working on projects you care about – whatever without the stress of relying on the money.

Why Financial Independence Matters

FI is not about getting rich quick or just retiring at 30 (unless that’s your goal). it’s about gaining control over your time, choices, and future. For decades, I struggled with the lack of freedom and control over my life while working full-time at various companies. In a world where many of us are tied to demanding jobs just to keep up with bills or mortgage repayments, and having holidays to reword ourselves from the hord work. Thankfully, FI offers a different way forward, It puts you in the driver’s seat, allowing you to live life on your own terms.

Here are reasons why it matters for us.

1. Freedom to Choose

When you’re not dependent on your wage, you can decide how to spend your time. Want to leave a job that drains you? Traveling around the worlds without worrying about getting income? Start a passion project? FI makes that possible. It removes financial pressure from your decision making and opens the door to flexibility and purpose.

2. Security in Uncertainty

Life is unpredictable. Whether it’s a health emergency, unexpected outgoings, or recession, having a solid financial cushion helps us weather the storm. FI provides peace of mind and knowing that you and your family are financially protected, no matter what life throws your way. As we get older, and so do our parents, we’re feeling the weight of that more than ever.

3. Better Work-Life Balance

When you’re financially independent, you don’t need to grind away in a full-time job unless you want to. That doesn’t mean you’ll never work again, but it means you can work on your choice. Many people who reach FI decide back to work but part-time, freelance, or volunteering to doing things that are fulfilling rather than just financially necessary.

4. More Time for What Matters

Whether it’s raising your kids, travelling Australia in a campervan, caring for ageing parents, or simply having time to pursue hobbies, FI gives you the gift of time. It allows you to design a lifestyle that reflects your personal values and priorities, not just your financial obligations.

5. Improved Mental and Physical Health

Constant financial stress takes a toll. Worrying about bills, debt, or job insecurity can affect sleep, relationships, and overall wellbeing. By working towards financial independence, you reduce stress and create space to focus on your health, mindfulness, and happiness.

6. Aligning Money with Meaning

FI shifts your mindset from working for money to letting money work for you. Instead of chasing income to keep up with a consumerist lifestyle, you start making intentional choices, spending less on stuff and more on experiences, growth, and connection.

Types of Financial Independence

As I mentioned earlier, FI is not just one size fits all rule or single milestone. It’s something we can create our own FI path based on our lifestyle and value. The types listed below are commonly recognised among the FI followers and some have been around for a while, while others are fairly new. And who knows? There will be likely be new trends rising as more people find their own version of financial freedom.

Below is an overview of several FI/FIRE types – Lean FI, Fat FI, Barista FI, Coast FI, Slow FI, Flamingo FI, and what we’ll call Traditional FI – including their definitions, characteristics, who benefits most from them, and their pros and cons. We will also highlight how FIRE ties these variants together, and how the FI approach differs from a traditional retirement plan.

Lean FI

Lean FI (or Lean FIRE) means living on a very frugal budget and achieving financial independence by cutting expenses to the bone. People aiming for Lean FI require less money to retire because their lifestyle demands fewer spends. In practice, this might mean sustaining oneself on about A$30,000 per year or less, which dramatically lowers the amount needed to reach FI.

If you can live frugally and cut down on non-essential expenses for long term or naturally live with it. Lean FI might be easier to achieve but involves a commitment to a simpler, less expensive way of living for the future.

Fat FI

Fat FI is the opposite of Lean FI. This goes beyond the basic needs, aiming for a larger financial cushion that allows for a more luxurious lifestyle. This approach often involves a higher savings goal, such as accumulating 30-40 times annual expenses. So if your annual expense is 40k, means you need 1.2-1.6million dollars investment to withdrawal or dividend like we work on.

Barista FI

Barista FI is a hybrid approach, refers to having enough in savings to cover a significant portion of your expenses but continuing to work part-time to cover the rest, often with a job that provides desirable benefits (like health insurance in US, superannuation in Australia, which is where the term originates, referencing benefits provided by companies like Starbucks). This approach provides a balance between financial security and active engagement in the workforce.

Coast FI

Coast FI is when you have enough savings and investments at a young age that, with compound interest, will grow to provide for your retirement without any additional contributions. Individuals pursuing Coast FI typically work to cover their current expenses while allowing their investments to grow over time. From this point, you only need to earn enough to cover current expenses, allowing you to pursue less lucrative or more fulfilling work.

Slow FI

Slow FI is a less intense approach to financial independence. Instead of rapid accumulation of wealth, individuals focus on enjoying the journey, often working in satisfying careers while gradually building financial wealth.

Each of these financial independence types offers different benefits and challenges, and the best choice depends on individual circumstances including career satisfaction, lifestyle preferences, financial goals, and personal values. By understanding the nuances of each FI type, you can tailor your financial strategy to best suit your life goals, ensuring a fulfilling journey towards financial independence.

Traditional FI

Traditional FI is the classic, long-term approach of steadily saving and investing over your working life, typically aiming to retire around standard retirement age (usually 60–67). This is the type most Australians are familiar with, even if they don’t label it as FI.

I was focusing on this in early stage based on one million in shares as 4% is enough cost for me and Paul to live in Australia at that time. However, Many Australian shares offers high dividend so we tweaked and applied to our goal this rule to 4% dividend instead of 4% withdrawal.

Financial Independence, Retire Early (FIRE)

The FIRE movement is about achieving FI so you can retire early, significantly earlier than traditional retirement ages. This often involves living frugally and saving aggressively in the short term. This typically involves saving and investing 25 times your annual expenses, based on the 4% withdrawal rule derived from the Trinity Study and other many FI achievers and writers.

Principles of Achieving Financial Independence

Income Generation

Increasing your income is a fundamental principle of achieving FI. This can be done through various means such as:

• Career Advancement: Seeking promotions or higher-paying positions. What I found is changing company with the same/different position can have much better income rather than stick with one company.
• Side Hustles: Engaging in freelance work or starting a small business. Even you don’t have any skills, there are plenty of opportunity for this, Uber or delivering food could be the option.
• Passive Income: Investing in assets that generate passive income, such as real estate or dividend-paying stocks.

Now I am more focused on generating passive income rather than simply increasing my active income, even if the initial returns are modest. This approach is ideal for those with a long-term perspective. However, if you are still developing your income or skills, planning for passive income might not be feasible yet. It’s up to you to decide how to build your plan.

Expense Management

Managing and reducing expenses is critical for achieving FI. This involves:

• Budgeting: Tracking your income and expenses to identify areas for cost-cutting.
• Frugality: Adopting a minimalist lifestyle to reduce unnecessary expenditures.
• Debt Reduction: Paying off high-interest debt to free up more money for savings and investments.

Savings Rate

Your savings rate, the percentage of your income that you save and invest, is a key determinant of how quickly you can achieve financial independence (FI). The higher your savings rate, the faster you can reach FI. It is recommended to keep your savings rate higher than 50%, regardless of your income level. This strategy significantly accelerates your path to financial freedom by maximising the amount you can invest and grow over time.

Investing

Investing wisely is crucial for growing your wealth. Key investment strategies include:

• Diversification: Spreading investments across different asset classes to reduce risk.
• Long-Term Focus: Focusing on long-term growth rather than short-term gains.
• Low-Cost Investments: Choosing investments with low fees to maximize returns.

Steps to Achieve Financial Independence

Step 1. Assessing Your Financial Situation

Start by evaluating your current financial status. This includes:

• Net Worth Calculation: Summing up your assets and subtracting liabilities.
• Income and Expenses Review: Understanding your monthly cash flow.

Step 2. Setting Financial Goals

Define clear, measurable financial goals. These should include:

• Short-Term Goals: Such as building an emergency fund or paying off credit card debt.
• Long-Term Goals: Like saving for a house or planning for retirement.

Step 3. Creating a Budget

A budget is a financial roadmap that helps you manage your money effectively. Steps to create a budget include:

• Listing Income Sources: Document all sources of income.
• Categorising Expenses: Divide expenses into fixed and variable categories.
• Setting Limits: Allocate specific amounts for each category and stick to them.

Step 4. Reducing Expenses

Cutting down on expenses can significantly boost your savings rate. Strategies include:

• Eliminating Non-Essentials: Cancel subscriptions and memberships you don’t use.
• Negotiating Bills: Lower your bills by negotiating with service providers.
• Adopting DIY Practices: Save money by doing things yourself instead of hiring others.

Step 5. Increasing Income

Boosting your income can accelerate your journey to FI. Consider:

• Side Hustles: Freelancing, consulting, or starting a small business.
• Investing in Education: Acquiring new skills to qualify for higher-paying jobs.
• Passive Income Streams: Investing in real estate, stocks, or other assets that generate passive income.

Step 6. Investing Wisely

Investing is essential for growing your wealth. Key tips include:

• Start Early: The sooner you start investing, the more you benefit from compound interest.
• Diversify: Spread your investments across different asset classes to mitigate risk.
• Low-Cost Index Funds: Consider low-cost index funds for broad market exposure and low fees.

Step 7. Monitoring and Adjusting Your Plan

Regularly review your financial plan and make necessary adjustments. This involves:

• Tracking Progress: Monitor your net worth and savings rate.
• Rebalancing Portfolio: Adjust your investment portfolio to maintain desired asset allocation.
• Adapting Goals: Update your financial goals based on changes in your life or financial situation.

Challenges and Solutions

Common Obstacles

• High Cost of Living: In expensive cities, the cost of living can be a significant barrier.
• Debt: Student loans, credit card debt, and mortgages can hinder progress.
• Economic Downturns: Market crashes or recessions can impact investments and job security.

Strategies to Overcome Challenges

• Geoarbitrage: Moving to a lower-cost area to reduce expenses.
• Debt Snowball/Avalanche Methods: Systematically paying off debt using structured methods.
• Emergency Fund: Maintaining an emergency fund to cover unexpected expenses and protect against economic downturns.

Conclusion

Achieving financial independence (FI) is a personal journey that requires careful planning, discipline, and perseverance. By understanding the different types of FI and following the principles and steps outlined in this post, you can work towards a life of freedom and security.

You might feel overwhelmed by the many concepts and steps to follow, but the most important key is consistency. Start small and continuously increase your savings and income to build investment seed money. Tracking your finances and regularly reviewing your status are critical to staying on course.

This guide aims to help you gain insight into the journey towards financial independence. Tailor your approach to fit your personal goals and circumstances, and stay committed to your path.

Throughout our journey, we’ve faced numerous challenges and made many mistakes. Each obstacle served as a crucial learning opportunity, helping us refine our strategies and reinforcing our commitment to achieving financial independence.

Our approach to reaching FI has evolved, especially since reaching certain milestones. We like to track our progress towards FI in two distinct ways. One method focuses on the incremental steps towards both FI and Financial Independence, Retire Early (FIRE), while the other method categorises FIRE into three types: Lean, Coast, and Fat. We are currently on the path to achieving ‘Fat FI,’ which represents a more abundant style of financial freedom. For more detailed explanations of these terms, please click here.

In reflecting on our journey, Paul and I often discuss what we might have done differently—those ‘should’ve, would’ve, could’ve’ moments. Here are some of the mistakes we’ve made and the invaluable lessons we’ve learned from them:

1. Misunderstanding the ‘Why’

Many start their FI journey without fully grasping their underlying motivations. It’s common to hear tales of individuals who fixate solely on monetary targets, neglecting the deeper reasons behind their pursuit of financial independence. I discovered this firsthand when Paul and I moved to the Philippines. During our time there, I wasn’t working in a traditional job but was helping Paul with his projects. This period made me realize that retiring from work wasn’t my ultimate goal.

We cherish traveling the world, but equally, we value engaging in meaningful work that provides fulfillment beyond financial rewards. Having the freedom to pursue meaningful activities with a clear purpose brings far greater satisfaction.

It’s crucial, therefore, to clearly define your personal reasons for seeking FI before embarking on this journey. Whether your goal is early retirement, spending more time with family, or the flexibility to try new careers, understanding your true motivation is key to developing an effective strategy that aligns with your values and life goals.

2. Not Setting Clear Financial/Investment Goals and Milestones

At the onset of our married life, Paul and I hadn’t set any concrete financial goals. We found ourselves saying, “Everyone is buying or building a house, so should we!” But why? We simply followed the crowd without a distinct plan or understanding.

When we decided to build a house, it coincided with a looming downturn in the property market. We lacked thorough research on the location or understanding of market trends from professional investors, instead relying on advice from a mortgage broker who wasn’t even investing in the property market himself!

Looking back, had we known better, we would have opted not to build at that time. Instead, we might have invested in the share market and waited for the property market to shift in favour of buyers, or approached building our home more strategically.

Lacking a clear roadmap left us directionless and purposeless. Establishing specific, measurable financial goals is crucial for navigating the journey to financial independence effectively. Whether it’s setting aside funds for retirement, purchasing a home, or freeing yourself from debt, having clear objectives provides a guiding light that keeps you motivated and on track.

3. Understanding Our Financial Level Before Following Financial Gurus

In our eagerness to secure our financial future, Paul and I initially overlooked how important it was to align our investment strategies with our personal behaviors and lifestyle. When we picked up the ‘Barefoot Investor’ book, it felt like we were discovering a whole new world of financial strategies. Enthused, we attempted to implement every suggestion from the book for over a year. It was only after scrutinizing our expenses in a detailed spreadsheet that we realized we were actually spending more than before, attempting to adhere to the suggested splurge ratios. It was a bit of a wake-up call!

We quickly adjusted our budget back to its original state, which had suited us well. The bucketing method advocated in the book is an excellent strategy for those struggling with financial discipline, but it may not suit everyone, especially those who are already deep into their financial independence journey or who naturally save a substantial portion of their income.

Before adopting any new financial strategy, it’s crucial to evaluate your current spending and saving habits. Compare these with the recommended practices to see if they truly offer an improvement. If a new approach can enhance your financial well-being without compromising your lifestyle, then it’s worth considering. Otherwise, it might be best to stick with what has proven effective for you.

4. Resisting Lifestyle Inflation

As Paul and I progressed in our careers and our income grew, so did our inclination to indulge in discretionary spending. We became victims of lifestyle inflation, often tempted to upgrade our possessions and experiences significantly.

During one of the early years of our financial independence journey, I convinced myself that I needed to abandon our FI goals to afford social outings and holidays like my colleagues. This mindset inevitably led to increased spending on luxuries and non-essentials.

The justification was that it was acceptable to spend more because we had secured jobs with higher salaries. However, a reality check came six months later when I was going through our finances and noticed a consistent pattern of deficits. The spreadsheet was a sea of red every month. This was a wake-up call. I realized I was continually dissatisfied with my jobs, and maintaining such a lifestyle was not aligning with my deeper aspirations.

Although it’s perfectly reasonable to reward ourselves for hard work, unchecked lifestyle inflation can seriously undermine long-term financial goals. It’s crucial to practice mindful spending and clearly differentiate between needs and wants. This discipline helps in maintaining financial stability and ensures that lifestyle upgrades do not derail our path to financial independence.

5. Investing Without Adequate Knowledge

In our early days of investing, Paul and I encountered several stumbling blocks due to our lack of understanding. One significant misstep was in property investment, which taught us to approach investment decisions with caution, particularly given the substantial impacts associated with property markets. We realised the importance of understanding market trends and timing our investments more strategically.

Initially, in our enthusiasm to capitalise on promising share market opportunities, we failed to appreciate the significance of diversification. Focusing our investments predominantly in one asset class exposed us to heightened market volatility and increased our risk profile. To mitigate this, we shifted towards purchasing more Exchange Traded Funds (ETFs) as they offered built-in diversification, serving as a safer investment cushion.

Spreading investments across both shares and properties can lead to a more resilient and balanced portfolio. If you’re uncertain about where to invest in shares or properties, it’s wise to consult with multiple experts or utilise software tools that provide thorough market analysis before making any investment decisions. This proactive approach can help safeguard your investments from unforeseen market fluctuations.

6. Overlooking Self-Care in Our Financial Pursuits

In our fervent quest for financial independence, Paul and I too often put self-care on the back burner, prioritising work and financial goals over our wellbeing. This imbalance led to significant tolls on both our physical and mental health, undermining our overall quality of life.

It’s crucial to remember that achieving financial independence is more of a marathon than a sprint. It requires maintaining a delicate balance between diligently pursuing financial goals and ensuring personal wellbeing. Emphasising self-care, setting healthy boundaries, and nurturing meaningful relationships are vital for sustained happiness and fulfilment.

My own experiences with panic attacks and insomnia, triggered by a high-pressure job that offered a better salary, were a stark reminder of the importance of not pushing oneself too hard. Similarly, Paul, who once worked up to 12 hours a day including side hustles, chose to resign from his full-time job. This allowed him to focus on what began as a side hustle but eventually turned into a more profitable and less stressful full-time role from home.

The lesson here is clear: working smarter, not harder, and prioritising our wellbeing, is far more beneficial than merely chasing a higher income at the expense of our health. The pursuit of an additional $10,000 per year is not worth significant personal strain or stress.

7. Underestimating the Power of Continual Learning

In our drive for financial independence, Paul and I initially underestimated the significance of ongoing education and continual learning. About three years into our FI journey, we found ourselves deeply engaged, devouring books related to FIRE, subscribing to the Barefoot community, listening to multiple podcasts daily, and routinely updating our spreadsheets for income and outgoings.

However, over time, we began to feel as if the stories were all too familiar, and nothing new was being said. We stopped seeking out fresh insights, leading us to fall behind on emerging trends, best practices, and innovative strategies. This oversight limited our potential for growth and optimisation until we recognised our mistake.

Committing to lifelong learning is crucial for maintaining a competitive edge in the ever-evolving financial landscape. Adopting a growth mindset, actively seeking new learning opportunities, and remaining open to feedback and adaptation are key to achieving sustained success and staying relevant in the field of personal finance.

8. Disregarding the Value of Patience and Persistence

Throughout the inevitable highs and lows of our financial journey, Paul and I sometimes fell victim to impatience and despondency. We found ourselves disheartened by temporary setbacks, which led us to question our ability to meet our long-term goals.

Patience and persistence are truly invaluable virtues. Real progress takes time, and setbacks are simply part of the journey. By keeping steadfast faith in our abilities and persisting through tough times, we can navigate challenges and achieve our aspirations.

After our struggles during COVID, we turned over a new leaf.

Once we had reviewed all FI trends, our finances, and our status, we embarked on a new journey—slowing down our pace towards financial independence to tackle a business venture that offers us fresh perspectives and achievements. We still face ups and downs but are now enjoying extensive travel to numerous countries more than ever, all while saving a substantial amount of money that aids in our continued investment towards achieving one million dollars in shares. With our current income, we anticipate reaching this goal within the next one or two years, all while thoroughly enjoying what we do.

In conclusion, our path to financial independence has been marked by a series of challenges and victories. While mistakes are inevitable, it’s our capacity to learn from these errors and adapt that ultimately shapes our success. By embracing these lessons and applying them conscientiously, we are confidently navigating our way towards financial independence with resilience.

I hope sharing our experience helps you map out your own journey. I welcome any questions you might have.

Have you faced similar challenges or learned other valuable lessons on your journey to financial independence? Share your stories with us; we’re keen to learn together and support each other in achieving our financial goals.

Hello from Jay and Paul! We are passionate about setting goals and creating to-do lists on a whiteboard, as these actions motivate us in daily life. While we didn’t always love this approach when it came to our jobs, everything changed when we discovered the financial independence movement. It’s amazing how finding a life purpose, goal, or dream can transform your daily life.

Until 2016, our lives revolved around climbing the career ladder and buying a home, believing this was the prescribed way to live. We took pride in our quality of life, rewarding ourselves with luxurious holidays because “we worked hard, so we deserved it!” This mindset trapped us in a cycle of working hard to spend hard, then needing to work hard again—a classic example of the rat race.

Our luxury and comfort brought fleeting happiness, even as we doubled our incomes and built two homes. Over time, we realized our goals were shaped by societal expectations and parental guidance, not by our genuine desires. We felt stuck, unsure of how to break the cycle.

Discovering Financial Independence

Our breakthrough came when we stumbled upon an article about the Financial Independence movement. I still remember the moment vividly—it was as if a beam of light had shone directly on us, guiding us like a lighthouse to sailors lost at sea. Have you ever experienced such a moment?

We started discussing what we wanted to achieve and how we could get there. Paul and I love delving into fundamental issues—it might sound boring, but it’s crucial. We questioned what we truly wanted in life. Approaching financial independence seemed exciting but we knew it could also be a challenging journey.

Defining Our Goals

We asked ourselves: “Are we aiming for FIRE (Financial Independence, Retire Early) or just Financial Independence (FI)?” While these terms might seem similar, we believe it’s beneficial to break them down:

TFism 1 – Semi FI

Here, passive income from investments or side hustles covers half of our annual expenses. This stage doesn’t mean full financial independence but offers a significant degree of financial freedom, reducing reliance on full-time work.

TFism 2 – FI

This stage is about financial security without the need to retire. It’s akin to an entrepreneur who could retire but chooses to keep working. At this point, one might continue working not for financial necessity but for personal fulfillment.

TFism 3 – Semi FIRE

At this stage, work is part-time or project-based, providing enough to cover basic living costs and allowing for some luxuries. It’s about working because you want to, not because you have to.

TFism 4 – FIRE

This is the ultimate goal—complete financial independence and early retirement. Here, you have sufficient passive income to not only cover all expenses but also enjoy a comfortable lifestyle without financial constraints.

In 2017, we calculated that having $1 million in shares, yielding roughly a 4% dividend (about $40,000 annually), would allow us to live comfortably without full-time work in South Asia or Australia. However, achieving this would require at least eight more years of saving 60% of our income.

Instead, we opted for a more immediate goal: reaching Semi FI within four years, aiming for a $20,000 annual income from investments. This would free us from full-time employment but still require some income to cover living costs.

Life Changes and New Adventures

Now, in 2024, things have evolved significantly. We took the bold step of leaving Australia to live in the Philippines, embracing a life filled with new learning opportunities and a business venture. This move has redefined our lifestyle and what it means to live a fulfilling life.

Exploring Broader FI Concepts with Detailed Financial Estimates

As we navigate our path toward financial independence, it’s enlightening to consider the different stages within the FI spectrum, each with its own financial targets and lifestyle implications:

LeanFI

Achieving LeanFI means your passive income solely covers your basic living expenses, without room for luxuries. For instance, if you spend $40,000 a year, reaching LeanFI would require investments that generate this amount annually, assuming a 4% safe withdrawal rate. This translates to needing a portfolio of about $1 million. LeanFI champions a minimalist lifestyle, emphasizing living within your means without indulgence.

CoastFI

This stage is reached when you have saved enough that you no longer need to actively contribute to your retirement funds. For example, if you need $1 million for a comfortable retirement and you’ve already amassed $500,000 by age 30, this amount could potentially grow to $1 million by age 65 with a 5% annual return. CoastFI allows you to use any additional income to enhance your current lifestyle or save for an earlier retirement, providing great flexibility without jeopardizing your future financial security.

FatFI

FatFI represents a stage beyond basic financial independence, offering a substantial financial cushion that supports a high-quality lifestyle. If you desire a lavish lifestyle costing $100,000 annually, you’d need around $2.5 million in investments, based on a 4% withdrawal rate. This surplus ensures comfort and the ability to afford luxuries like frequent upscale travel, expensive purchases, and generous financial gifting.

The TwogetherFIsm in 2024

To put these concepts into perspective with our personal journey towards financial independence:

Semi FI

Our initial target was generating a passive income of $20,000 a year to cover half of our estimated annual expenses of $40,000. This would allow us the freedom to engage in part-time work or projects we’re passionate about without full-time income pressure. To achieve this level, we needed to invest $500,000 in dividend-paying stocks, aiming for a 4% yield.

Full FI

For full Financial Independence, where we no longer need to work for money, we estimated needing $40,000 annually. This required a total investment of $1 million, assuming the same 4% yield, to cover all living expenses comprehensively. This stage allows us to pursue work that we love, not because we need the money but because we enjoy the activity.

FIRE (Financial Independence, Retire Early)

For FIRE, where we aim to completely step away from mandatory work, we anticipated needing a larger cushion due to our desire to include discretionary spending freely. For a comfortable lifestyle that includes regular travel and luxury experiences, we calculated needing about $60,000 annually. This would require a portfolio of approximately $1.5 million, allowing us to withdraw 4% per year while maintaining our investment principal over the long term.

Our Personal Journey to Financial Independence in 2024

Applying these detailed financial estimates has profoundly shaped our savings and investment strategies, allowing us to adapt to our evolving lifestyle preferences, inflation rates, and expected returns. Each journey to financial independence is distinct, and while these figures provide a guideline, they are adaptable to individual circumstances.

In the previous year, reaching a net worth of over $1 million was a significant achievement for us. However, the generated passive income fell short of supporting our desired level of continuous travel. Although LeanFI could facilitate a nomadic lifestyle with strategies like house-sitting, it wasn’t in line with our broader aspirations.

Currently, we are transitioning from SemiFI to FullFI, incorporating work, business endeavours, and extensive travel into our lifestyle. The journey of life is full of unexpected lessons and opportunities for growth, and we may even consider pursuing FatFI as our business and investments evolve.

We encourage you to explore these financial independence stages and assess which align best with your personal and financial aspirations. Sharing your experiences and progress not only inspires us but also enriches the broader community.

We’d love to hear about your journey towards financial independence. What milestones have you reached? What challenges have you faced? Your stories are a source of inspiration, and we eagerly look forward to celebrating your successes with you.

You know, the concept of “Financial Independence” (FI) isn’t exactly a new idea. Over the years, it’s been discussed in countless articles, on social media, and even on TV shows. For some, the journey toward financial independence started 10 or even 20 years ago. It’s something many of us have been quietly striving for, searching for ways to improve our well-being and secure our futures.

For us, the journey began in earnest in 2015.

The Early Days: A Wake-Up Call

Back in 2002, I found myself with three months off from work right as the Winter Olympics were kicking off in the USA. The company I worked for had gone bankrupt, leaving me officially unemployed. Initially, I didn’t rush to find another job; I wanted to take the time to figure out what I truly wanted. But as the weeks turned into months, I realised I didn’t have the motivation to become just another employee. The idea of starting my own business felt out of reach, and without the wealth of information we have today—no internet or social media to guide me—I felt stuck.

We were living a life that many would consider typical: good employees working hard, aspiring to retire like our parents. We believed in the traditional markers of success: finding higher-paying jobs, maintaining gym memberships, enjoying drinks with friends every Friday, taking luxury vacations, and building a beautiful home. We prided ourselves on our expensive lifestyle, viewing our spending as a reward for our hard work. But this cycle meant constantly seeking better-paying jobs just to keep up with our expenses and maintain our lifestyle.

The Corporate Grind: A Vicious Cycle

Climbing the corporate ladder proved to be more challenging than I expected. My anxiety levels soared, and I began experiencing panic attacks from the stress. Paul was feeling the same pressures. We were trapped in a vicious cycle: working harder, spending more, and working even harder to cover those expenses.

Around this time, we decided to invest in properties to boost our assets. We poured our savings into building two properties during a booming market. But then the market crashed. The mining boom ended, people lost their jobs, and the value of our properties plummeted by 15% and continued to fall.

A New Beginning: Discovering Financial Independence

We were devastated and desperate for a new solution. And then, out of the blue, life threw us a lifeline. In 2015, I went to a bank to open an investment account, hoping to start investing in the stock market. While waiting, I flipped through a financial magazine and stumbled upon an article about the Financial Independence (FI) movement. In those 15 minutes, my life changed.

I was thrilled to learn that we didn’t need to become multi-millionaires to retire from full-time work. But before diving in, we asked ourselves some important questions:

• What can truly make us happy?
• How much do we really want to work full-time?
• Is it the career we don’t want, or do we dislike our colleagues and company culture?
• Or is it because we yearn to do something more meaningful?

Embracing the FIRE Movement

We realized that doubling our income and building more houses wasn’t making us happier—it was only adding to our stress and anxiety. So, we started learning about the FIRE (Financial Independence, Retire Early) movement. Our lifestyle and mindset began to change. It’s incredible how having a clear destination can transform your approach to life.

Our date nights and take-out evenings became filled with discussions about our goals, whether they were realistic or just dreams, and how we could achieve them. We knew the journey might be tough, but we were excited to take on this new adventure together.

Practical Steps: Tracking and Budgeting

I never imagined I’d be able to create a financial spreadsheet to track our expenses, update our spending and income, and review our total assets every month. If you haven’t started tracking your money, you don’t need to create your own tracker. There are plenty of income/outcome tracker apps and Google templates available to help you get started.

We began playing with numbers to see more clearly where we stood on our path to FI.

Cost of Living: Planning Our Future

We calculated our annual living expenses based on different locations:

• In Australia, especially WA, we need $50,000 (ideally $60,000) per year to live comfortably.
• In Bali, we only need $30,000 (ideally $40,000) per year.
• In some cheaper countries, we need even less than $30,000 per year.

We believe $40,000 will be enough for us to live comfortably outside of Australia or while we travel (At least the time when we were planning this in 2019…). With $1 million in shares, we could comfortably receive dividend or sell some shares to spend $40k per year, depending on the location.

Setting Realistic Goals: Lean FI

We both agreed that we didn’t want to wait too long to achieve our goals and didn’t mind working part-time instead of full-time. Our primary goal was to escape the rat race as soon as possible. To measure our progress, we created our own system called “Twogether FI-ism.”

While Fat FI is often seen as the ultimate financial safety net, we decided that Lean FI—achieving the minimum needed to sustain our preferred lifestyle—aligned more closely with our values and goals. This shift from maximizing wealth to optimizing life satisfaction has been a fundamental part of our journey.

Embracing a Sustainable FI Lifestyle

Mindset Shift: Our journey to FI involved more than just financial strategies; it required a complete mindset shift. We recognized that true independence wasn’t about hoarding wealth but about creating freedom and flexibility. This idea is not common for everyone, so we had to learn how to communicate with people who are in a mediocre mindset and against the early retirement movement.

Sustainable Practices: We began incorporating sustainable practices into our daily lives. This included reducing unnecessary expenses, focusing on value-based spending, and investing in resources that offer long-term benefits. Our choices became more conscious, from the food we ate to the energy we consumed. To achieve that, we needed to live differently—not like the mediocre lifestyle. It required being frugal and sticking to a tight budget during some periods to reach our goals.

Community Engagement: Instead of joining existing FI communities (we weren’t quite sure where to start), we decided to write a blog and create our own community. This new venture provided us with invaluable support and insights. The connections we made through our blog enriched our journey, keeping us accountable and inspired.

Key Takeaways from Our FI Journey in 2023

1. Start Early, But It’s Never Too Late: The best time to start your FI journey is now if this is right for you. Even if you begin later in life, the principles of financial independence can significantly impact your financial security and personal well-being. I wish I knew this when I was in my 20s or even early 30s…but it’s never too late!
2. Understand Your Values: Everyone has different interests, life purposes, and lifestyles. Knowing what truly matters to you and your family is crucial. FIRE may not be for everyone, as some people truly love their current job and life. This understanding guides your financial decisions and helps you set meaningful goals.
3. Educate Yourself: The FI journey is not an easy one, nor is it short and sweet. It can be dull or painful sometimes as it’s a long run. Continuous learning about personal finance, investment strategies, and lifestyle choices will empower you and enhance your journey.
4. Balance is Key: It’s important to balance saving and investing with living a fulfilling life now. This balance prevents burnout and ensures that your journey to FI is sustainable and enjoyable. lIke Barefoot Investor mentioned, set your buckets that suit your lifestyle and enjoy the journey.
5. Plan for Flexibility: Life is unpredictable. Paul and I were planning to become Semi-FI and leave the country for traveling and work so we booked flights end of 2019. But the COVID-19 locked us up for two years…thankfully we could manage continue to work fulltime and saved more money during that time. Your FI plan should include flexibility to adapt to life’s changes and challenges without compromising your financial security.

Conclusion

The road to Financial Independence is as much about the journey as it is about the destination. It’s a personal path that requires understanding your own needs, desires, and circumstances. While the concept of FI is not new, each person’s journey is unique and offers different insights and lessons.

If you’re considering embarking on your own FI journey, remember that it’s about more than just financial metrics. It’s about crafting a life that aligns with your values and offers freedom and joy. Whether you’re just starting out or well on your way, every step toward financial independence is a step toward a more empowered and fulfilled life.

Embrace the lessons learned from the setbacks, celebrate the milestones, and continuously strive for a balanced, fulfilling life. Here’s to making your financial independence journey insightful, rewarding, and tailored to your personal dreams and realities.

Our Story Continues

We have many more past stories to share about our FI journey, each one a milestone in our path. From the early days of discovery to the turning points that shaped our approach, every chapter is filled with lessons and insights. We’ll continue to document our progress, challenges, and triumphs, hoping to inspire and guide others on their journey to financial independence.

Stay tuned for more stories from Twogether FI, where we share our experiences, strategies, and the highs and lows of our quest for financial freedom. Let’s build a community that supports and learns from each other, making the journey to FI a little bit easier and a lot more enjoyable.

The day you pack and move to a new place isn’t exactly thrilling—it feels quite different from packing a suitcase for a holiday.

When Paul and I began our life in Australia, hopping from one place to another wasn’t part of our plan. I wonder how many people meticulously plan their lives before moving to a new country and then live exactly according to those plans? Our experience was different; we made great friends and found wonderful housemates quite spontaneously, and ended up living with them far longer than we could ever have imagined.

Life is an incredible adventure, filled with unexpected moments that we’ve come to cherish! The unpredictable nature of our experiences meant that our situation shifted with each new challenge that came our way.

The Challenge of Housing

One of the major challenges we faced was related to housing. As we all know, everyone needs a place to sleep and rest. This can range from a simple shelter to a cosy family home. During our first eight years in Australia, we moved five times, always trying to spend less on housing. Sounds a bit mad, right?

In 2013, Paul was the sole breadwinner, and we were categorised as low-income earners, so our budget for housing was quite tight. We weren’t burdened by debt, thankfully, but we also didn’t have much in the way of savings.

After two and a half years of house sharing and as we began to save more and secure better jobs, we wanted to build our own dream home—as many married couples do. Starting with house sharing was a strategic move to help us save for the deposit needed to construct our first home, a four-bedroom, two-bathroom house in Perth. This seemed like the standard choice and good for future resale value.

We envisioned a life in our dream house with stable jobs, spending weekends with friends or going on holidays, believing this would bring us more joy and happiness.

Reality vs Expectation

However, the reality was a bit different. Our emotional investment in the first home build focused more on creating a beautiful place rather than a ‘home sweet home’ for the two of us.

The construction of a large family home quickly drained the $100,000 we had saved over two years. The stress escalated with the monthly mortgage payments for the house where more than half of the space was unused most of the year. The house was perfect when Paul’s family visited from the UK for three weeks, but what about the other forty-nine weeks?

We’ve met couples without children who are happy living in large suburban homes despite the hefty mortgages. For us, however, it was clear that downsizing was the best choice for multiple reasons.

Making the Decision to Downsize

Deciding to leave a brand-new house for a smaller place was significant. Before making this decision, we reviewed our lifestyle to determine what we truly wanted and needed:

• We don’t plan on having a large family—we are DINKs (Dual Income, No Kids), and our parents won’t be moving to live with us in Australia.
• We spend a limited amount of time at home as we both work full-time.
• The house location wasn’t ideal for Jay, who commutes to work by public transport.
• We aren’t fond of house maintenance or gardening, especially cleaning a huge house!
• We were unhappy about paying an expensive mortgage for a large house where half of the space went unused.

Ultimately, the main reason for downsizing was to improve our lifestyle by reducing our financial burden. If you’re considering downsizing your home, it’s crucial to review how you use your current living space and what you truly need.

Life After Downsizing

Since moving to a smaller apartment in the city, our lifestyle has improved significantly. We enjoy being closer to beautiful places without needing to drive. The apartment may be small, but it’s perfect for the two of us! We’ve discovered many benefits to downsizing that we hadn’t fully anticipated.

Benefits of Downsizing:

• Financial Relief: We reduced our living expenses significantly.
• Less Maintenance: Smaller spaces require less time and money to maintain.
• Better Location: Living in the city means everything is just a walk away.
• Simplified Living: Less space means less clutter and simpler living.
• Increased Happiness: With less stress and more money saved, we’re happier.

Eight years after moving from house sharing to building and owning a large house, and finally to downsizing into an apartment, we’ve found the good size home for us now—a two-bedroom, one-bathroom apartment with a car park. This apartment is just perfect for us since we use the second bedroom for a home office during the covid.

Lessons Learned from Downsizing

Moving to a smaller space taught us a lot about what we actually need versus what we accumulate. We used to think we lived simply, but downsizing showed us how much unnecessary stuff we had hidden away in closets and cupboards.

From our experience, we continue to strive to live with less. We’ve even considered selling our car, which could save us an additional $500 per month.

Do you have any experiences or tips about downsizing your home? We’d love to hear from you! ?

The years 2020 and 2021 will undoubtedly be remembered as significant for everyone, impacting us in profound ways, both positively and negatively.

The arrival of COVID-19 reshaped our world, introducing a level of uncertainty that persisted into 2022. As the pandemic unfolded, the response varied dramatically. While some found new opportunities to increase earnings through online businesses or remote work, others faced the heartbreak of closing their physical businesses, such as restaurants and shops.

For Paul and me, the pandemic disrupted our plans in unexpected ways. We had been poised to leave the country to set up a business that would secure our future with passive income. Instead, the travel restrictions and global uncertainty forced us to stay put, delaying our plans by two more years.

The lockdowns tested our resilience. Although the situation was stressful, having previously survived the devastating tsunami in Japan, I found a well of strength within myself. This experience, though harrowing, provided me with a perspective that helped me manage the anxiety brought on by the pandemic.

Thankfully, our city’s relative isolation within Australia offered us a buffer against the worst of the pandemic, allowing us to continue working. This period of isolation turned into a time of intense saving and investing, as we focused on fortifying our financial security.

Reflecting on my journey, which began a decade ago when I arrived in Australia as a foreigner, I recognize the profound changes not just in my status—having left as a citizen—but in my perspective on life and resilience.

Had the pandemic not occurred, Paul and I might now be traveling the world, funded by our business ventures, or perhaps we would have returned home following a failed business due to the pandemic’s economic impacts. The possibilities are endless, but speculative.

Life is filled with choices, and every decision carries its measure of risk and reward. Sometimes luck is on our side, and other times it’s not. However, the belief that positive thinking, careful planning, and perseverance will lead to success has never been more relevant. This mindset prepares us to face any challenge, even another pandemic, with increased strength and resilience.

I am grateful for the support of everyone in our lives and for the inner strength that sustained us through these trying times. We hope for progress, no matter how small, as we continue to cherish and appreciate our lives more deeply. Here’s to a future where every one of us finds something to be grateful for and gains strength from the challenges we overcome.