FIRE & Chill

In this episode, we discuss the crackdown on financial content by the regulator ASIC.We share our thoughts on these issues and how it affects what bloggers and podcasters are able to say to their audience.  The restrictions are so frustrating that we have decided to end the show.We've both enjoyed making FIRE & Chill over the last two years and we truly hope you've gotten value from the content.  Thanks so much for your support and understanding.More info...ASIC  Guidelines Information SheetMoney Magazine's Summary of the ChangesSenator Jane Hume Contact PageDave's Article on the 'Finfluencer' Crackdown

In this episode, we talk about the different taxes we face on our financial journeys.  We discuss taxes on our income and investments, different options for reducing tax, including tax deductions and negative gearing.  We also break down examples of what taxes look like when you're living off a portfolio.Discussion points...Intro chat  (01:10)Employment taxes  (03:26)Salary sacrificing and salary packaging  (07:45)Capital gains and dividend taxes  (16:19)Reducing tax on investments  (28:15)Negative gearing and debt recycling  (39:47)Taxes in early retirement  (47:08)Some thoughts on trusts and structures  (53:13)Where do our taxes go?  (59:11)Resources and stuff mentioned...How we track our investments:  SharesightKey Investment Principles for Long Term SuccessUsing Debt to Invest in the SharemarketMore from us...Pat's blog:  Life Long ShuffleDave's blog:  Strong Money AustraliaContact us with questions and feedback:  fireandchillpod@gmail.com

In this episode, we discuss the huge overlaps between Minimalism and the pursuit of financial independence.  We talk about the benefits of Minimalism, the possible drawbacks, and how to put these lessons into practice in our everyday lives.Resources and stuff mentioned...How we track our investments:  SharesightLow-cost share investing platform:  PearlerFurther reading on Minimalism:  The MinimalistsFurther reading on Minimalism:  Becoming MinimalistWhen Novelty is the New NormalBeing Green And Building Wealth Discussion points...Intro chat  (01:10)What is minimalism all about?  (03:32)Examples of minimalism in practice  (09:38)The benefits of minimalism  (26:35)The possible drawbacks  (35:46)Misconceptions about minimalism  (40:41)Our experiences (45:13)Conclusion and takeaway (50:43)More from us...Pat's blog:  Life Long ShuffleDave's blog:  Strong Money AustraliaContact us with questions and feedback:  fireandchillpod@gmail.com

In this episode, we do a thought experiment.  What if we woke up as 18 year old's and had to start our wealth-building journeys all over again?What first steps would we take?  What would we do differently?  Discussion points...Intro chat  (01:10)Would we study or start work immediately?  (05:32)Would we try to earn extra income?  (13:36)Buying vs renting for us starting now  (18:50)Our expected living expenses, savings rate and timeframe to FI  (26:02)Would we be more frugal than we are now?  (36:24)Semi-retirement or full FI?  (41:12)How would we invest?  (45:48)Would we put extra into super?  (52:32)What if we started at age 40 instead?  (55:20)What if we were single?  (1:05:46)Overall, would it be easier or harder?  (1:09:37)Resources and stuff mentioned...How we track our investments:  SharesightLow cost share investing platform:  PearlerHistory of interest rates in AustraliaEarly Retirement CalculatorDHHF & VDHG: Is One Fund All You Need?Why Financial Independence is Getting EasierThe Future of Financial IndependenceMore from us...Pat's blog:  Life Long ShuffleDave's blog:  Strong Money AustraliaContact us with questions and feedback:  fireandchillpod@gmail.com

In this week's episode we open the mailbag and answer a bunch of listener questions.  Hope you enjoy!Discussion points...Intro chat  (01:04)Can index funds drop even if shares rise?  (05:16)Should I keep investing or start a business?  (10:01)How do I stay strong during a market downturn?  (14:16)I'm self-employed, should I still put money in super?  (25:05)Can you turn liabilities into assets?  (32:47)I keep investing my cash buffer, help!  (40:14)Resources and stuff mentioned...How we track our investments:  SharesightLow cost share investing platform:  PearlerDave's Post During the Coronavirus Sharemarket CrashDave's Post on Short Termism and Market MadnessPat's Poorly Timed Investing Post ;)Pat's Post on Market Timing During March 2020More from us...Pat's blog:  Life Long ShuffleDave's blog:  Strong Money AustraliaContact us with questions and feedback:  fireandchillpod@gmail.com

In this episode, we tackle a topic that has received countless media coverage over recent years.  In one way or another, most financial commentary implies that the future is bleak, and young people are screwed since there's so many factors working against us.In fact, most casual observers would agree with this statement without even questioning it.  But is this true?  We unpack the arguments today and share our thoughts.Discussion points...Introduction  (01:10)Jobs are less secure than they used to be  (04:00)Wages aren't growing  (11:55)Young people probably won't get a pension  (18:48)Generational inequality  (27:21)Lower investment returns  (32:46)Expensive housing  (39:45)Final thoughts  (53:48)Resources and stuff mentioned...How we track our investments:  Sharesight  (save 33% off a premium plan)Low cost investing platform:  Pearler  (free brokerage on your first 2 investments)Podcast:  Basics vs Luxuries - 120 Years of PerspectiveArticle:  How Do House Prices Affect Financial Independence?Article:  Best Paying Jobs Without A DegreeABS average full-time income dataABS median full-time income dataCapital city rental growth last 10 yearsRBA inflation calculatorInheritances and family wealth More from us...Pat's blog:  Life Long ShuffleDave's blog:  Strong Money AustraliaContact us with questions and feedback:  fireandchillpod@gmail.com

This week's episode is all about using leverage in the sharemarket.  We look at the different borrowing options, the pros and cons of using debt to buy shares, and the things you need to consider before diving in.  We also share thoughts on which options are the most attractive and whether we'd do it ourselves.Discussion points...Follow-ups on insurance and the pension  (1:34)The benefits of borrowing to buy shares  (06:33)Downsides of using debt to buy shares  (09:47)How does tax work when we use leverage  (15:23)Working out your profit margin on the borrowed money  (18:08)Using home equity to buy shares  (21:36)Margin loans  (24:10)NAB Equity Builder  (35:40)Leveraged ETFs  (41:26)Should you invest differently with borrowed money?  (51:18)Other considerations and reminders  (55:03)How debt can affect early retirement  (57:36)Which option we like the best and final thoughts  (1:01:00)Resources and stuff mentioned...How we track our investments:  SharesightRecommended broker for buying shares:  PearlerArticle:   Should You Borrow to Invest in Shares?Article:  The Ultimate Guide to Debt RecyclingPodcast:  Key Investment Principles For Long Term SuccessPodcast:  How to Manage An Investment PortfolioMore from us...Pat's blog:  Life Long ShuffleDave's blog:  Strong Money AustraliaContact us with questions and feedback:  fireandchillpod@gmail.com

In our first episode for 2022, we highlight some key personal habits and traits that help us build a happy and prosperous future.  These things not only help us reach our goals, but keep our lives balanced and healthy too!Discussion points...Quick catchup  (1:18)Be action oriented  (4:30)Gratitude and perspective  (12:06)Keep your wealth and spending in proportion  (19:40)Prioritise investing  (26:11)Health and relationships  (32:09)Resources and stuff mentioned...How we track our investments:  SharesightRecommended broker for buying shares:  PearlerArticle:  Internal Locus of ControlPodcast:  The FIRE PhilosophyBook:  Enlightenment NowBook:  Extreme OwnershipBook:  7 Habits of Highly Effective PeopleMore from us...Pat's blog:  Life Long ShuffleDave's blog:  Strong Money AustraliaContact us with questions and feedback:  fireandchillpod@gmail.com

In this episode, we break down each of the main insurances and share our thoughts on whether they're worth having.  We also discuss strategies for optimising the cost of insurance, other ways to protect yourself, and tailoring it to your own situation.Discussion points...The truth about insurance  (03:34)Home insurance  (09:26)Contents insurance  (13:06)Car insurance  (18:55)Health insurance  (28:14)Life/TPD/Disability  (37:56)Pet insurance  (44:24)Travel insurance  (48:55)Creating your own cover (50:55)Psychological aspects of insurance  (55:31)How to optimise and reduce the cost  (1:04:04)Final thoughts  (1:08:58)Resources and stuff mentioned...How we track our investments:  SharesightRecommended low cost broker:  PearlerCar Insurance:  Budget DirectPodcast:  Emergency Funds & Short-Term SavingsPodcast:  Superannuation and Early RetirementMore from us...Pat's blog:  Life Long ShuffleDave's blog:  Strong Money AustraliaContact us with questions and feedback:  fireandchillpod@gmail.com

In this episode, we answer a bunch of questions sent in by listeners.  A really nice variety of questions with something for people at every stage of the FI journey.  Hope you enjoy! Discussion points...Would you still invest aggressively inside super past age 40?  (05:42)What podcasts do Pat and Dave like listening to?  (16:37)What do you think of the changes to Vanguard Personal Investor?  (20:00)Case study - How can I optimise further?  (28:24)How would you get started investing as a teenager with $500?  (35:05)Resources and stuff mentioned...How we track our investments:  SharesightVanguard Personal InvestorYouTube - EinzelgangerYouTube - The CompoundPodcast - Rational ReminderPodcast - Making SenseArticle - VDHG & DHHF: One Fund PortfoliosPodcast - Superannuation and Early RetirementMore from us...Pat's blog:  Life Long ShuffleDave's blog:  Strong Money AustraliaContact us with questions and feedback:  fireandchillpod@gmail.com

In this episode we discuss the idea of using a 'robo-advisor' to handle our investments.  We cover how they work,  their investment strategies, how much they cost, the pros and cons of using a robo-advisor compared to investing by yourself and much more.Discussion points...Introduction  (01:12)What is a robo-advisor and how do they work?  (05:22)Portfolio options and Six Park/Stockspot investment allocations (12:51)How do the fees stack up?  (18:30)Benefits of using a robo-advisor platform  (21:26)The downsides of robo-advisors  (25:07)Our overall thoughts on these platforms  (29:09)Alternatives to Six Park and Stockspot  (33:15)Summary and final thoughts  (40:53)Resources and stuff mentioned...How we track our investments:  SharesightLow cost broker with automation:  PearlerArticle: DHHF & VDHG - One Fund PortfoliosPodcast: Why Fees MatterSix ParkStockspotMore from us...Pat's blog:  Life Long ShuffleDave's blog:  Strong Money AustraliaContact us with questions and feedback:  fireandchillpod@gmail.com

In this week's podcast we share some savings ideas which help you sharpen your finances and give you more cash to invest, as well as plenty of other life-enhancing benefits!Discussion points...A follow up on the Barefoot Investor  (01:41)Learning to cook and make our own food  (09:19)Making greener choices  (23:08)Living a more local lifestyle  (33:56)Tips for saving while socialising  (44:42)Creating your own gym  (49:10)Resources and stuff mentioned...How we track our investments:  SharesightRecommended low-cost broker:  PearlerPodcast:  Solar Energy with Finn PeacockPodcast:  Big Wins to Boost Your Savings RatePodcast:  Basics vs Luxuries - 120 Years of PerspectiveArticle:  Frugality & Food - The Grocery StrategyArticle:  How Being Green Builds WealthArticle:  Frugality & FitnessMore from us...Pat's blog:  Life Long ShuffleDave's blog:  Strong Money AustraliaContact us with questions and feedback:  fireandchillpod@gmail.com

In this podcast, we discuss whether outsourcing anything financial makes sense, or whether we should strive to do it all ourselves.  We cover planning, investment portfolios, paying for advice, accounting, budgeting and more.Discussion points...Intro and what we've been up to  (01:13)Choosing and implementing an investment strategy  (03:58)Outsourcing investments and thoughts on financial planners  (11:28)Paying for advice, super and pension rules, and keeping it simple  (19:55)Budgeting and money management  (26:12)Should you do your own accounting?  (30:11)How to make it easier to DIY your finances  (36:28)What if your spouse isn't interested and when to consider getting help  (41:37)Final thoughts  (45:43)Resources and stuff mentioned...How we track our investments:  SharesightPodcast:  Key Investment Principles for Long Term Success Podcast:  How to Manage an Investment PortfolioPodcast:  Fees, Fees, EverywherePodcast:  Why Invest in Index Funds?More from us...Pat's blog:  Life Long ShuffleDave's blog:  Strong Money AustraliaContact us with questions and feedback:  fireandchillpod@gmail.com

In today's episode we dive deeper into Pat's plans to transition into semi-retirement.  Hear the full story on how he's going to do it and what he's weighing up.  We also discuss the trade-offs between working more and retiring sooner, common concerns and fears around leaving work.  Whichever stage of the FI journey you're in, you'll get value from this one.Discussion points...Pat's FI journey to this point  (04:39)Thinking about stepping away from work  (10:13)Finding a work role suitable for semi-retirement  (14:16)Weighing up the pros and cons around this decision  (21:58)Concerns and worries around transitioning to retirement  (30:27)Other things to consider and Pat's next steps  (38:37)Resources and stuff mentioned...How we track our investments:  SharesightPodcast:  The Benefits of Semi-Retirement (And How To Do It)Podcast:  Mistakes and Traps to Avoid on the FI JourneyPodcast:  How Much Do You Need to Retire Early?More from us...Pat's blog:  Life Long ShuffleDave's blog:  Strong Money AustraliaContact us with questions and feedback:  fireandchillpod@gmail.com

In this podcast, we open the mailbag and answer some of our favourite personal finance and investing questions that have been sent in by listeners.  Hope you enjoy!Discussion points...What do we think of Ray Dalio and the 'All-Weather Portfolio'?  (04:16)What if the sharemarket was open 24/7 every single day?  (11:39)Where should one be financially at different ages and income brackets?  (15:44)How would you treat a $100,000 windfall?  (21:00)Resources and stuff mentioned...How we track our investments:  SharesightPodcast: Our Thoughts on Bonds, Bitcoin, Gold and MorePodcast: Key Investment Principles for Long Term SuccessArticle: Timing the Market - Silly or Sensible?More from us...Pat's blog:  Life Long ShuffleDave's blog:  Strong Money AustraliaContact us with questions and feedback:  fireandchillpod@gmail.com 

In today's show, we zoom out and look at how much our lifestyles have changed in the last 20, 70, 120 years.  What did people used to spend their money on compared to today?  How much did people have left after paying their bills, and how has that changed over time?Discussion points...What was life and household spending like in 1900?  (02:42)Lifestyles, work changes, and purchasing power by 1950  (07:36)How far our wealth and incomes stretch in the year 2000  (13:25)Changes in lifestyle and where our money goes in 2021 (21:16)Why it's so hard to keep things in perspective  (25:03)What can we learn from all this?  (28:00)The internet makes everyone feel poor  (32:30)Summary and final thoughts  (35:24)Resources and stuff mentioned...How we track our investments:  SharesightResearch:  100 Years of US Household SpendingArticle: Australia's Addiction to Big HousesArticle:  The Real Cost of Living - An Inconvenient TruthPodcast:  Inflation and Why We InvestPodcast:  Spending, Happiness and FIREMore from us...Pat's blog:  Life Long ShuffleDave's blog:  Strong Money AustraliaContact us with questions and feedback:  fireandchillpod@gmail.com 

In today's episode we chat about the practical ways to manage a share portfolio. We discuss how often to buy, balancing your portfolio, what we do personally, dealing with taxes, and more.Discussion points...Choosing a broker (03:31)When should you buy shares? (10:27)How often should you buy? (13:40)Balancing your portfolio over time (18:12)Dealing with individual stock picks (26:22)What about taxes? (30:30)How we each manage our portfolios (35:17)Final thoughts (41:57)Resources and stuff mentioned...How we track our investments for tax:  SharesightPat's online broker: CommSecDave's online broker: PearlerInvesting Frequency CalculatorArticle:  How to Buy Shares (Beginners Guide with Screenshots)Podcast: Asset Allocation for AussiesPodcast: Recessions, Fear and Market TimingMore from us...Pat's blog:  Life Long ShuffleDave's blog:  Strong Money AustraliaContact us with questions and feedback:  fireandchillpod@gmail.com 

 Young high income earners have a unique opportunity to build wealth and reach financial independence relatively quickly.  In this episode we discuss what they can do to make the most of their situation, and the traps to avoid. Discussion points...The most important thing to consider  (04:29)Making the most of your high income  (09:35)The challenges high income earners may face  (12:13)Dealing with expectations from other people  (16:34)Should high earners invest using complex structures?  (22:29)Self-employed workers chasing tax deductions  (26:57) Deciding how to invest as a high income earner  (30:26)Final thoughts  (41:01)Resources and stuff mentioned...How we track our investments:  SharesightPodcast:  Superannuation and Early RetirementPodcast:  Should You Pay Down Debt or Invest?Article:  Debt Recycling - The Ultimate GuideMore from us...Pat's blog:  Life Long ShuffleDave's blog:  Strong Money AustraliaContact us with questions and feedback:  fireandchillpod@gmail.com 

In this episode we take a deep dive into investment bonds, also known as insurance bonds.  These are investments which are structured to be tax effective and come with special rules.  We break down the ins and outs and share a few examples to see when investment bonds might be a good idea.Discussion points...What exactly are investment bonds?  (03:46)Unpacking the tax benefits of investment bonds  (06:01)Investment rules and losing the CGT discount (13:58)Example using a high growth fund  (20:08)Example using a high income fund  (23:41)When do investment bonds make sense?  (30:28)Investing for children  (36:36)Asset protection, estate planning and government benefits  (37:40)Follow-up from the investment bond providers  (45:33)Final thoughts  (51:19)Resources and stuff mentioned...How we track our investments:  SharesightPat's Article on Investment BondsPodcast:  Key Investment Principles for Long Term SuccessMore from us...Pat's blog:  Life Long ShuffleDave's blog:  Strong Money AustraliaContact us with questions and feedback:  fireandchillpod@gmail.com 

In this podcast, we answer some juicy investing questions that have been sent in by listeners.Discussion points...Unlisted commercial property funds (04:11)Which assets we think will do well over the next 30 years (20:39)Would we invest in individual stocks? (28:20)How do you decide which shares to sell? (35:09)Resources and stuff mentioned...How we track our investments:  SharesightArticle: Mariah International - JL CollinsPodcast: Listener Questions Roundup #2Article: The Aussie Guide to Real Estate Investment Trusts (REITs)More from us...Pat's blog:  Life Long ShuffleDave's blog:  Strong Money AustraliaContact us with questions and feedback:  fireandchillpod@gmail.com 

In this episode, we discuss some of the mistakes and traps people fall into when working towards financial independence.  Knowing what not to do is almost as important as knowing what to do.  We offer some important reminders and also share what we'd do differently if we had our time again.Discussion points...Additional comments on ethical investing  (01:57)Saving too much  (08:55)Working too much a.k.a. side hustle fever  (16:30)Having no other interests  (26:04)Addicted to accumulating wealth and safety  (31:29)Waiting to start  (39:07)Final thoughts and some reminders  (46:15)Resources...Our favourite portfolio tool:  SharesightPodcast:  Multiple Ways to Make More Money Article:  If the FIRE Journey Makes You Miserable, You're Doing it WrongMore from us...Pat's blog:  Life Long ShuffleDave's blog:  Strong Money AustraliaContact us with questions and feedback:  fireandchillpod@gmail.com 

In this episode of FIRE & Chill, we explore the topic of ethical investing.  We cover everything from what it is, how it works, the pros and cons and how you should decide whether it's right for you.  We'll cut through the noise and share the important things to consider before diving in to ethical investing.Discussion points...Intro and a big change to a popular index fund  (01:54)What is ethical investing?  (05:54)Benefits of ethical investing  (08:12)Downsides of ethical investing  (09:41)Where do we draw the line on what's ethical?  (20:56)What impact does our investing have?  (26:15)Is the world becoming more ethical?  (33:56)Being ethical and making an impact  (38:17)Takeaways and final thoughts  (42:08)Resources...Our favourite portfolio tool:  SharesightPodcast:  Why Invest in Index Funds?Article:  Being Green While Building WealthMore from us...Pat's blog:  Life Long ShuffleDave's blog:  Strong Money AustraliaContact us with questions and feedback:  fireandchillpod@gmail.com

In today's podcast, we explore a few key investment principles that are important to understand when you're investing for financial independence.Discussion points...The power of Dollar Cost Averaging  (04:34)Simplicity versus Complexity  (09:38)Reversion to the mean - nothing outperforms forever  (16:22)Long term ownership of assets  (21:50)Summary and final thoughts  (24:58)Resources...Our favourite portfolio tool:  SharesightVanguard Interactive Index ChartArticle:  Timing the Market - Silly or Sensible?Podcast:  Asset Allocation for Aussies Pursuing FIMore from us...Pat's blog:  Life Long ShuffleDave's blog:  Strong Money AustraliaContact us with questions and feedback:  fireandchillpod@gmail.com

In today's episode, we discuss practical and achievable ways to make more money on your way to financial independence. Earning more can help increase your savings rate, bringing your freedom date closer.  We also share what strategies each of us has used to make more money over the years.Discussion points...Introduction to today's topic  (01:35)Working more hours or different hours  (04:03)Getting a better paying job in the same industry  (09:48)Switching roles or industries  (16:15)Promotions and climbing the ladder  (20:41)Second jobs and side hustles  (26:30)Sell stuff you don't need  (36:54)Sharing/Renting space or assets  (41:33)Getting better deals on your bills  (47:23)Important things to remember  (48:27)Summary and final thoughts  (51:17)Resources...Our favourite portfolio tool:  SharesightRoom value calculator:  FlatmatesPodcast:  Big Wins to Boost Your Savings RateArticle:  Best Paying Jobs Without A DegreeMore from us...Pat's blog:  Life Long ShuffleDave's blog:  Strong Money AustraliaContact us with questions and feedback:  fireandchillpod@gmail.com

In this episode, we look at strategies for dealing with debt and mortgages when you goal is financial independence.  Should we focus on investing, or should we aim to be debt-free?  Which will help us become financially independent faster?  We discuss the ins and outs, and our thoughts on the various options to help you decide.Discussion points...The worst form of debt  (02:31)Our thoughts on credit cards  (06:05)HECS/HELP debt  (08:51)Mortgage debt and calculating the benefit  (13:28)Should you pay down your home loan or invest?  (19:06)Accessing home equity in retirement  (23:56)How does debt affect our ability to become FI?  (28:31)Mortgage strategies to optimise your cashflow  (30:57)Margin loans and investment loans  (47:08)Takeaways from this episode  (52:29)Resources...Our favourite portfolio tool:  SharesightArticle:  Paying Off Your Mortgage vs InvestingPodcast:  Emergency Funds & Short Term SavingsHome loan extra repayment calculatorMore from us...Pat's blog:  Life Long ShuffleDave's blog:  Strong Money AustraliaContact us with questions and feedback:  fireandchillpod@gmail.com

It's question time again!  We open up the mailbag and answer some of the best listener questions we've received in the last few weeks.Discussion points...Which home loan option Pat decided to go with  (02:01)Getting past the fear of never having enough knowledge  (04:21)How to invest when you don't know where to start  (09:16)How long should I take to invest a lump of cash?  (13:55)Hedged or unhedged international index funds?  (17:19)Resources...Our favourite portfolio tool:  SharesightHow Tic Toc sets their lending ratesPodcast:  Listener Questions #1Article:  Guide to Investing in International Index FundsArticle:  Perfection is Our EnemyMore from us...Pat's blog:  Life Long ShuffleDave's blog:  Strong Money AustraliaContact us with questions and feedback:  fireandchillpod@gmail.com

In this episode we explore the idea of semi-retirement, or semi-FI.  This can give you a lot of the benefits of FIRE in a shorter amount of time.We think semi-retirement is a hugely underappreciated approach.  Here, we discuss the benefits and the trade-offs to help you consider whether it's right for you.Discussion points...What is semi-retirement?  (03:15)Benefits of semi-retirement  (08:40)Even more benefits of semi-retirement!  (22:15)How does it work in practice?  (26:56)Covering the income gap  (30:13)Alternative FI strategies  (35:39)Some other thoughts on semi-retirement  (39:57)Resources...Our favourite portfolio tool:  SharesightArticle:  Semi-Retirement - Your Shortcut to FreedomPodcast:  How Much Do You Need to Retire Early?More from us...Contact us with questions and feedback:  fireandchillpod@gmail.comDave's blog:  Strong Money AustraliaPat's blog:  Life Long Shuffle

A special episode today, as we discuss Pat's recent move to buy a house.  I grill Pat for all the details and we chat about how this affects Pat's financial independence plans.Discussion points...A quick run-down of what's happening  (01:55)Why Pat decided to buy, and what he was looking for in a property  (05:17)Price bracket and first homebuyer benefits  (07:25)Current and future plans  (09:03)How does this affect Pat's financial independence plans?  (10:24)Interest rates and online lenders  (15:12)A more in-depth look at fixed vs variable rates  (19:33)What gets Pat excited about owning a house  (26:04)Storing cash in an offset account  (30:27)Pat's thoughts and reflections on the home buying experience  (32:36)Resources...Our favourite portfolio tool:  SharesightPat's online lender:  Tic Toc Home LoansArticle:  How Do House Prices Affect Financial Independence?More from us...Contact us with questions and feedback:  fireandchillpod@gmail.comDave's blog:  Strong Money AustraliaPat's blog:  Life Long Shuffle

In this episode, we discuss why we need to tune out the financial noise in our lives.  We explain how it creates FOMO and distracts us from our current plans.  Most importantly, we share practical advice for staying focused on your Financial Independence goals in a noisy world.  Because true wealth is about following your own path and thinking for yourself.Discussion points...Intro and the Wealth Effect  (01:16)  The Game Stop Saga  (05:42)Rampant Speculation  (11:22)The Grumpy Old Men of Aussie FIRE  (17:13)Why the noise about companies doesn't matter  (21:41)Long term investing and your personal goals  (26:30)Focus on what you can control  (28:00)Is the market rigged?  (31:13)How to get the best long term result  (32:49)Resources...Our favourite portfolio tool: SharesightMore from us...Contact us with questions and feedback:  fireandchillpod@gmail.comDave's blog:  Strong Money AustraliaPat's blog:  Life Long Shuffle

Today we're going to share how to nail down the big categories of spending, to ramp up your savings rate and reach FI much faster!  These are ideas we've implemented in our own lives so we wanted to pass them on to our listeners :)Discussion points...Housing costs (02:32)Super-cheap interest rates  (10:51)Cars and transport  (17:21)Food and cooking  (24:47)Cafes and restaurants  (34:46)Holidays and travel  (38:19)Resources and stuff mentioned...Our favourite portfolio tool: SharesightThe Cost of Commuting for AussiesHow to Deal with the Cost of HousingMore from us...Contact us with questions and feedback:  fireandchillpod@gmail.comDave's blog:  Strong Money AustraliaPat's blog:  Life Long ShuffleYouTube:  FIRE & Chill

You know our thoughts on the main asset classes - shares and property.   So, on this week's show we discuss the following investment options...Bitcoin and crypto.  Gold and commodities.  Fractional property investing.  Peer-to-peer lending.  Real estate investment trusts and infrastructure.  And mortgage funds.  Discussion points...Investing in bonds  (02:06)Gold and commodities  (08:58)Bitcoin and crypto  (15:04)Peer-to-peer lending  (20:08)Mortgage funds  (24:52)Fractional property investing  (28:13)REITs and infrastructure  (34:19)Summing up our views  (38:54)Resources and stuff mentioned...Our favourite portfolio tool: SharesightVanguard interactive chartLong term trends - Gold vs StocksRelated article:  Peer-to-peer Lending - Become Your Own BankRelated article:  Aussie Guide to Real Estate Investment TrustsRelated podcast:  Property vs SharesRelated podcast:  Asset Allocation for Aussies pursuing FIMore from us...Contact us with questions and feedback:  fireandchillpod@gmail.comDave's blog:  Strong Money AustraliaPat's blog:  Life Long ShuffleYouTube:  FIRE & Chill

Welcome to our first Q&A episode, where we answer a bunch of questions sent in by listeners.We've got a great diverse set of topics to discuss to kick things off.  As always, you can send us a question -  fireandchillpod@gmail.com - and we'll feature in a future Q&A episode.Discussion points...What do we think about lotto tickets and gambling?  (02:18)Frugality and alcohol:  how do we keep costs down?  (08:51)Should I take a year off work before committing to FI?  (14:19)Our thoughts on seeking additional income sources and diversifying your income sources  (18:20)Should I bother getting a lower interest rate on my investment loan since it's tax-deductible?  (26:20)What do we think about micro investing apps?  (29:54)Resources...Our favourite portfolio tool:  SharesightRelated podcast:  Emergency funds and Short-Term SavingsRelated article:  The Experiment - How We'd Spend $80 millionMore from us...Contact us with questions and feedback:  fireandchillpod@gmail.comDave's blog:  Strong Money AustraliaPat's blog:  Life Long ShuffleYouTube:  FIRE & Chill

In our first episode of 2021, we discuss the mindset and thought process inside the FIRE movement.  Our philosophy, values, and beliefs are often very different from the rest of society.  So we're opening up this can of worms and sharing our personal thoughts.  Let us know if you feel the same!Discussion points...We think differently from 'normal' people  (04:31)We see money as a game to win  (11:20)Time is our most valuable resource  (13:49)A high payback job is better than a high paying job  (16:10)Material goods and status are empty goals  (19:42)A happy life doesn't actually cost much at all  (25:26)We believe saving is what really creates wealth  (28:49)We must take 100% responsibility for our own situation  (32:11)There is no substitute for taking action  (34:52)Our individual choices do make a difference  (36:35)Resources...Our favourite portfolio tool:  SharesightRelated article:  Your Locus of ControlRelated article:  The Disease of MoreBook mentioned:  The Subtle Art of Not Giving a F*ckMore from us...Contact us with questions and feedback:  fireandchillpod@gmail.comDave's blog:  Strong Money AustraliaPat's blog:  Life Long ShuffleYouTube:  FIRE & Chill

In this episode, we break down exactly how much you need to retire early.  We explore the famous 4% rule, where it came from, and whether it's still a reliable rule of thumb.We also explain how to live off your assets in practice, other considerations like home ownership and property investments, as well as how to approach financial planning with flexibility and common sense.(This is our last episode for 2020.  We're taking one fortnight off, and we'll be back with the goods in January.  Thanks for listening and for your support this year!)Discussion points...How do we figure out how much we need to retire?  (02:51)The famous 4% rule - what is it and how does it work?  (06:42)Arguments for and against the 4% rule working in the future  (09:23)What level of wealth is enough for you?  Dollar-figure examples  (14:56)How did Pat and Dave decide on their FI number?  (16:42)Living off your assets - how it works in practice  (21:32)Selling shares without running out of money  (26:00)Dealing with downturns and a bad patch of returns  (30:24)Other things to consider  (36:58)Why you might need more money and the 4% rule won't work  (42:22)Takeaways  (47:46)More from us....Dave's Blog:  Strong Money AustraliaPat's Blog:  Life Long Shuffle

In today's episode, we discuss how to approach asset allocation in Australia for those who want to retire early.How much do we invest in Australia vs international assets?  What about other things like home ownership, investment property, cash, bonds, or even assets like gold, bitcoin?  How do these all fit into the puzzle?  Discussion points...Why does asset allocation matter?  (01:55)Starting at home - investing in Australia  (02:42)Venturing abroad - investing overseas  (06:52)Combining Aussie/global shares into a portfolio  (09:51)Investment properties in your portfolio?  (18:53)How much bonds and cash should you keep?  (22:30)Gold, crypto and other exciting stuff!  (23:56)Why is diversification so useful?  (27:00)Structuring your investments inside and outside super  (29:46)How Pat and Dave approach asset allocation  (35:33)Chasing investment performance  (40:54)Takeaways from this episode  (41:38)More from us....Dave's Blog:  Strong Money AustraliaPat's Blog:  Life Long ShuffleYouTube Channel:  FIRE & Chill

In this episode, we share the areas of our lives where we've spent MORE money than we otherwise could have.  These things are some of our favourite purchases (past and current) that have really brought value to our lives.Remember, pursuing financial independence does not mean you need to cut down on everything so you can save.  It's about deliberate spending, and sometimes that means spending more.Discussion points:A morning booster  (02:45)Dave's four-legged friend  (07:39)International adventures  (09:45)Pat's unusual obsession...  (13:08)Frustrations with the gym  (18:03)An oily topic  (23:05)Dave connects to the modern world  (25:41)A different type of transport  (27:40)Spending more to live in a nice place  (32:59)Listener question  (38:11)More from us:Dave's Blog:  Strong Money AustraliaPat's Blog:  Life Long ShuffleYouTube Channel:  FIRE & Chill

How do you approach super when your goal is Financial Independence?  Do you include it in your plans?   How should we invest it?   We cover this and more in today's episode!Discussion points:What exactly is superannuation and where did it come from?  (01:12)How does super fit into early retirement plans?  (04:43)The issues with going 'all-in' on super  (06:35)The downsides of investing all outside super  (10:23)How we choose to approach super and why  (11:39)When focusing on investing inside super makes the most sense  (17:59)If we're going to retire early, does super even matter?  (19:56)How to avoid a crap super fund  (22:21)Investment strategy inside super  (29:28)Member direct options and big grey tax area!  (34:32)How we invest our super  (45:54)Summary of the key points  (50:29)More from us:Dave's Blog:  Strong Money AustraliaPat's Blog:  Life Long ShuffleYouTube Channel:  FIRE & Chill

In today's episode, we're talking about the relationship between time and money.  Understanding the many ways in which these two things are related is key for building a strong financial future. Discussion points:Figuring out how much things really cost  (01:53)The time value of big ticket items  (05:10)Working longer hours to cover higher spending  (11:26)Putting a greater value on our time  (12:36)Is being able to afford something better than actually buying it?  (15:50)Time and money are interchangeable... literally  (18:13)Listener question:  Thoughts on Vanguard's new Personal Investor option  (22:48)More from us:Dave's Blog:  Strong Money AustraliaPat's Blog:  Life Long ShuffleYouTube Channel:  FIRE & Chill

This week we're exploring the topic of index funds.  They get recommended a lot in the Financial Independence community as one of the best ways to invest for FI.  But why?  What's so special about index funds?  That's what we unpack today...Discussion points:You get what you don't pay for?  (03:00)How turnover and tax affects your returns  (04:30)Diversification, sectors and the future  (09:37)The biggest winners and distribution of returns  (12:46)Active managers and the SPIVA reports  (16:04)Owning everything and harvesting business returns  (19:33)What is self-cleansing?  (21:01)The efficiency of markets  (25:58)Difference between ETFs and index funds  (31:51) Listener Question:  Does philanthropy play a role in your FIRE journey?  (37:07)More from us:Dave's Blog:  Strong Money AustraliaPat's Blog:  Life Long ShuffleYouTube Channel:  FIRE & Chill

In this episode, we discuss why you should pay close attention to the fees you're paying in your financial life.  Mastering this area will save you tens of thousands of dollars and boost your progress to financial independence.Discussion points from the show...Dealing with the big daddy: investment fees or MERs  (02:02)Is a 1% fee really that bad?  (05:04)Looking at fees as a percent of investment returns  (07:05)How fees affect your withdrawal rate and dividends  (09:15)Real examples of how fees compound over 15 and 30 years  (11:37)Dealing with the argument about high fee active funds  (14:49)What about brokerage fees?  (19:05)Fees on superannuation and COVID withdrawals  (23:39)Dave's rant on property management fees  (27:23)When higher fees might be justified  (34:04)Listener question: How to split assets between partners to optimise tax  (43:24)More from us:Dave's Blog:  Strong Money AustraliaPat's Blog:  Life Long ShuffleYouTube Channel:  FIRE & Chill

In this show, we chat about the misconceptions we see people making about the FIRE movement.  Both newbies starting out and outsiders unfamiliar with the concept seem to miss some important key points.  We'll clear those up today, so we can all move forward together!  There are also some haters out there, so we pick apart why they're (obviously) wrong ;)Discussion points:Financial Independence only works for high-income earners  (02:12)FIRE means you can't buy a house  (10:21)You have to make major lifestyle sacrifices  (12:51)Having kids means it's impossible to retire early  (17:09)You must be an anti-consumer - a nice modern life isn't allowed  (22:47)It's our moral duty to keep working and paying tax  (27:54)When markets crash, early retirees will beg for their jobs back  (34:05)If everyone pursued FIRE, the economy would collapse  (43:38)The FIRE crowd is deluding themselves and pretending to be happy  (48:06)This whole retiring early thing is ridiculous  (52:03)FIRE is just running away from work  (57:07)Summary  (1:00:14)More from us:Dave's Blog:  Strong Money AustraliaPat's Blog:  Life Long ShuffleYouTube Channel:  FIRE & Chill

In this episode we jump into the always fascinating topic of recessions and market downturns.  How should we deal with these disruptions on our FIRE journey?  What should we do with our investments?(note: some details regarding the coronavirus have changed since we recorded this episode)During the show, we discuss...Who could have predicted our life in 2020?  (02:44)Are recession forecasts worth listening to?  (05:25)Pat explains the real definition of Murphy's Law  (10:36)Market timing - why can't we avoid the downturns?  (16:05)Investing while markets are 'expensive'  (23:28)Anecdotes, Aussie punters and bubble stocks  (29:48)Market returns and cherry-picking start and end dates  (32:47)Our best advice for dealing with fear and uncertainty  (34:18)Summary and key takeaways  (44:12)Listener question: How do we track and manage our spending?  (47:35)More from us:Dave's Blog:  Strong Money AustraliaPat's Blog:  Life Long ShuffleYouTube Channel:  FIRE & Chill

In this episode, we dive deep into how spending, happiness and FIRE are all inter-related (and not in the way you might think).  When we understand the connection between these three things, lifestyle changes are easier, saving becomes effortless, and the path to financial independence will not feel like a sacrifice.During the show, we discuss:How and why we spend money and does it make us happier?  (01:58)Maslow's Heirarchy of needs and how it affects us  (05:21)What makes humans happy vs unhappy?  (13:06)How much do good relationships cost (we talk about kids again!)  (15:08)Does Financial Independence really help us live a better life?  (18:19)The hedonic treadmill and our ability to adapt to new circumstances  (19:51)Tying it all together - where does FIRE come in?  (26:23)More from us:Dave's Blog:  Strong Money AustraliaPat's Blog:  Life Long ShuffleYouTube Channel:  FIRE & Chill

In this episode, we discuss the ins and outs of emergency funds and other short-term savings goals like house deposits etc.  How much you need, where to keep it, balancing risk vs reward and more! During the show, we cover:What is an emergency fund and why do you need one?  (1:09)How much do you need in your emergency fund?  (6:13)The many different types of emergency funds, Pat's approach and how it works in practice  (14:17)Is there any way to optimise this stuff?  (25:01)Saving for a house; where should you keep the money?  (28:42)Dave's approach to emergency funds  (32:07)Listener case study:  "I feel like I've already over-extended on big ticket items, is it still possible to scale back and reach FI?"  (38:57)More from us:Dave's Blog:  Strong Money AustraliaPat's Blog:  Life Long ShuffleYouTube Channel:  FIRE & Chill

In this podcast, we take a deep dive into the two major asset classes that people turn to for long term returns: property and shares.These investments are best suited to deliver the income and growth we need to sustain our Financial Independence.During the show, we discuss:Dave's thought-provoking article where he considers selling shares to purchase a home (0:25)The main benefits of investing in the sharemarket  (13:11)The downsides of investing in shares  (19:08)The main benefits of property investing  (26:56)The negatives of investing in property... Dave has a rant! (37:25)What we choose to invest in and why  (51:02)We summarise our most critical lessons from each asset class  (56:50)Listener question:  How did Pat become good with money?  (1:04:39)Listener question:  Many people who retire early start out in property and then move to shares. Why is that?  (1:08:53)Stuff mentioned:Dave's article:  Why We Might Sell Our SharesFollow-up article:  So, About Last Week's Post...More from us:Dave's Blog:  Strong Money AustraliaPat's Blog:  Life Long ShuffleYouTube Channel:  FIRE & Chill

In this episode, we talk discuss how inflation affects our retirement, the overarching purpose behind building a portfolio of assets, and the most sensible investment strategies to fund 50+ years of financial independence!During the show, we discuss:Term deposits and risk-averse retirees  (1:25)What is inflation and why does it matter?  (3:00)How can we combat inflation over time?  (5:34)Is it possible to live off cash using the 4% rule  (6:13)Why you need to invest and can never really avoid risk  (7:34)How can we fund 50+ years of retirement?  (10:16)Which investments can sustain our financial independence?  (15:01)The importance of assets with a growth component  (17:25)Investing on behalf of children (investment bonds, tax structures)  (20:43)More from us:YouTube Channel:  FIRE & ChillDave's Blog:  Strong Money AustraliaPat's Blog:  Life Long Shuffle

In this episode, we cover why your savings rate is more important than any other factor when it comes to retiring early.  If there's one thing to focus on, this is it!During the show, we discuss:How spending less affects your FIRE number (2:45)Emergency funds, and why Pat doesn't have one (4:30)Why saving is the most controllable factor in our finances (9:40)Specific examples of why saving might account for 70% of your FIRE progress (13:13)The psychological benefits of saving (17:01)Earning more income to boost your savings rate (18:32)Our thoughts on side hustles and extra work (23:21)Lifestyle inflation and spending desires (29:38)Number of years to retirement based on your savings rate percentage (35:18)Is FIRE possible for low income earners? (45:26)Listener question (55:30)Stuff mentioned in the show:Early retirement calculator:  NetworthifyCompound interest calculator:  MoneySmartMedian full-time Aussie salary:  ABS dataCurrent household savings rates:  RBA dataMore from us:FIRE & Chill YouTubeDave's blog:  Strong Money AustraliaPat's blog:  Life Long Shuffle

Today we're talking about the elephant in the room - Aussie housing!Specifically, how do we deal with our biggest lifestyle cost without ruining our plans for Financial Independence?In the show, we discuss:Renting versus buyingThe huge freedom and flexibility of renting.How damn expensive it is to move house as an ownerHow we each approach housing and our plans going forwardForced savings versus self-disciplineThe LONG list of costs that most home owners seem to gloss overLeverage and capital growthSuburb arbitrageHow the tax/welfare system is skewed in favour of buyingHow to optimise whether you're buying or rentingWhy renting in affluent areas is actually good valueThe insane amount of spare rooms Aussies haveShould you buy property with a small or large deposit?And much more!Stuff mentioned in the show...SQM Research rental yieldsAustralia's spare room capacityMore from us...FIRE & Chill YouTube channelPat's blog:  Life Long ShuffleDave's blog:  Strong Money Australia

In this episode, we share the financial lessons that have been game-changers and helped us on the road to Financial Independence and building better lives.More specifically, we discuss:The wealth illusion, debt and 'misleading millionaires'What really causes lottery winners to end up brokeWhy spending and happiness don't always line up how we expectPersonal stories from our early days learning about money and investingHow each of these lessons form the foundation of a wealthy lifePat's rant on irrational homebuyers!The unmatched power of savingWrapping our heads around compound interestHow people are controlled by money, rather than the other way roundWhy your spending dictates your level of freedomStuff mentioned in the show...Book:  The Millionaire Next Door, by Thomas J. Stanley & William D. DankoCompound Interest Calculator:  MoneySmartEarly Retirement Calculator:  NetworthifyMore from us...FIRE & Chill YouTube channelDave's blog: Strong Money AustraliaPat's blog:  Life Long Shuffle

Why should you bother striving for Financial Independence? I mean, it involves some hard work, sacrifice and can take a long time.  But from those that have done it, the payoff is definitely worth it.  We discuss this and more, including;Pat and Dave share their own personal reasons for pursuing FIRE.Why your reasons for wanting Financial Independence is more important than strategy.How your motivation fuels action.The incredible benefits of getting more freedom in your life.Pat shares his future plans and how he'll spend early retirement. Dave explains what it's like to be retired at such a young age.And much more!Stuff mentioned in the show...Go Curry Cracker blogMore from us...FIRE & Chill YouTube channelDave's blog:  Strong Money AustraliaPat's blog:  Life Long Shuffle

In our very first episode, we discuss...The idea behind our show, and who it's for.Who we are, and our individual stories.Why we've started a podcast.What you can expect from us going forward.Thanks for listening as we explore all things FIRE in Australia!More from us...FIRE & Chill YouTube channelPat's blog:  Life Long ShuffleDave's blog:  Strong Money Australia