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Published Jan 6, 2023

324 | The Stages and Checkpoints of FI

Explore the key stages and strategies of achieving Financial Independence (FI) with Brad Barrett and Jonathan Mendosa, who discuss gamifying your journey, crucial mindset shifts, and milestones like Half FI and Back to Broke. Delve into advanced concepts like Coast FI and Fat FI, offering personalized paths to balance frugality, savings, and lifestyle aspirations.
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  • Coast FI

    Coast FI offers a unique approach to financial independence by allowing individuals to ease off aggressive saving once certain milestones are reached. explains that once you've saved a substantial amount, like $300,000 by age 28, you can let your investments grow on their own, potentially doubling every nine years with an 8% return 1. This strategy means you only need to earn enough to cover your expenses, eliminating the need for a high savings rate. adds that teaching kids financial literacy early can set them up for success, aiming for a six-figure net worth by age 25-28 2.

    Coast FI is something that intuitively appeals to me. I like that one.

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    This framework allows for a more relaxed financial journey, focusing on covering expenses rather than accumulating wealth aggressively.

       

    Fat FI

    Fat FI represents a more luxurious version of financial independence, where the goal is to significantly exceed the basic FI number for a more expansive lifestyle. describes it as a continuum, allowing individuals to increase their spending by 30% or more, or even double their lifestyle 3. This approach might require working a few extra years or maintaining a higher savings rate, but it offers the freedom to live without financial constraints. emphasizes that Fat FI is about personal choice and community support, encouraging people to live better lives through financial independence 4.

    This starts on day one of your FI journey all the way up to that Fat FI of, hey, I've got 100 times my annual expenses.

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    Fat FI is about creating a financial cushion that allows for a more fulfilling and stress-free life.

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