ChooseFI
443 | The Invisible Nature of Spending | Ginger Roundup
Mon Jun 26 2023Description
This episode covers various topics including hotel rewards, booking tips, Global Entry, all-inclusive vacations, car ownership costs, fitness strategies, retirement planning with a pension, and success stories from the community. The hosts discuss the value of hotel rewards nights and the simplicity of redeeming them. They recommend starting with Ultima Rewards points and highlight the benefits of Global Entry. All-inclusive vacations are explored, along with the true cost of owning a car. Fitness strategies and retirement planning tips are shared, including considerations for pensions and Social Security. The episode concludes with inspiring success stories from the community.
Insights
Hotel Rewards and Booking
Hotel rewards can provide value, especially for high-demand events. Booking ahead of time with points can save money on expensive hotel rooms. Checking for award nights availability on hotel websites is simple and quick. Chase Ultimate Rewards cards offer flexibility in transferring points to different partners.
Global Entry and Travel Tips
Ultima Rewards points have a lot of value and are recommended to start with. Global Entry costs $20 per year and many credit cards offer $100 towards it. Capital One card offers $100 towards Global Entry and two free lounge passes. Doing the in-person interview for Global Entry can be challenging in smaller cities, but it can be done on the way back from an international trip. TSA PreCheck allows a child to come along without additional cost. Getting Global Entry at a nearby airport is more convenient. Hyatt is recommended for earning points towards all-inclusive resorts, and they have expanded their options in the Caribbean and Mexico.
All-Inclusive Vacations and Car Ownership
All-inclusive vacations can be a great value when using points. Additional charges may apply for extra people in the room. Finding a hotel that fits perfectly for a family can be challenging. Prepaying for an all-inclusive vacation can feel luxurious. Having a variety of nice restaurants adds to the appeal of all-inclusive vacations. The true cost of owning a car was discussed, highlighting the potential savings from not having car payments.
Fitness Strategies and Retirement Planning
Saving money from not making car payments can lead to significant net worth growth through compounding. Taking alternative modes of transportation like the bus or walking/biking can provide a different perspective on commuting. Rethinking the commute and exploring other possibilities can lead to a more enjoyable experience. Having a personal trainer can greatly improve strength and overall fitness levels. Zone two cardio training is recommended for improving aerobic base. Strength training is crucial for offsetting muscle breakdown as we age. Taking small actions every day, like walking, can improve overall health. Calculating retirement savings when you have a pension can be confusing, but it's important to consider annual expenses and subtract guaranteed income from the pension.
Community Success Stories and Conclusion
People in the community are taking action and making their lives better with financial independence strategies. The podcast has helped listeners improve their lives, and there are plans to further enhance the website. Success stories include paying off cars and houses, reaching CoastFI, and joining local groups worldwide. The episode concludes with recommendations for further resources on financial independence.
Chapters
- Introduction
- Hotel Rewards and Booking
- Global Entry and Travel Tips
- All-Inclusive Vacations and Car Ownership
- Car Ownership and Fitness Strategies
- Small Actions for Health and Retirement Planning
- Community Success Stories and Conclusion
Introduction
00:10 - 06:52
- Ginger from Fi is Fun joins the podcast for a roundup episode
Hotel Rewards and Booking
00:10 - 06:52
- The value of hotel rewards nights and simplicity in redeeming them
- Southwest is the easiest airline program to use for rewards
- Hotel rewards have potential value, especially for high-demand events
- Booking ahead of time with points can save money on expensive hotel rooms
- Checking for award nights availability on hotel websites is simple and quick
- Chase Ultimate Rewards cards offer flexibility in transferring points to different partners
Global Entry and Travel Tips
06:45 - 12:50
- Ultima Rewards points have a lot of value and are recommended to start with
- Global Entry costs $20 per year and many credit cards offer $100 towards it
- Capital One card offers $100 towards Global Entry and two free lounge passes
- For smaller cities, doing the in-person interview for Global Entry can be challenging
- Doing the in-person interview on the way back from an international trip is a viable option
- TSA PreCheck allows a child to come along without additional cost
- Global Entry includes TSA PreCheck, making it a better choice for frequent international travelers
- Getting Global Entry at a nearby airport is more convenient than driving four hours away
- Global Entry approval process may not require another interview after the initial one
- Hyatt is recommended for earning points towards all-inclusive resorts
- Hyatt has expanded its all-inclusive options in the Caribbean and Mexico
- All-inclusive stays at Hyatt can be obtained for as low as 25,000 points per night
All-Inclusive Vacations and Car Ownership
12:22 - 18:51
- All-inclusive vacations can be a great value when using points
- Additional charges may apply for extra people in the room
- Finding a hotel that fits perfectly for a family can be challenging
- Prepaying for an all-inclusive vacation can feel luxurious
- Having a variety of nice restaurants adds to the appeal of all-inclusive vacations
- The true cost of owning a car was discussed in a previous episode
- A thought experiment was conducted on car ownership costs over a lifetime
- $300 per month was used as an example car payment amount
- Money saved from not having car payments can be invested and compounded over time
Car Ownership and Fitness Strategies
18:27 - 31:34
- Saving money from not making car payments can lead to significant net worth growth through compounding
- By making the decision to avoid continuous car payments and instead save, a person could have $750,000 in net worth after 15 years
- The average car payment is now $777 per month, which can result in a difference of almost $2 million in net worth over time
- Mental accounting plays a role in how people perceive car payments as necessary expenses
- Cutting out $100 from monthly budget reduces the fine number by $30,000
- Having one car instead of two can lead to savings on gas, insurance, and upkeep costs
- Challenges may arise when relying on one car, but it can be manageable with proximity to work or alternative transportation methods
- Taking alternative modes of transportation like the bus or walking/biking can be a cool adventure and provide a different perspective on commuting.
- Rethinking the commute and exploring other possibilities can lead to a more enjoyable experience.
- Getting outside is important for overall well-being, and some people create fun challenges to motivate themselves, like walking one mile a day.
- Dr. Peter Atia's book 'Outlive' is popular and provides valuable information on fitness and health.
- Curating and synthesizing information from various experts can help in finding effective fitness strategies.
- Having a personal trainer can greatly improve strength and overall fitness levels.
- A well-designed exercise program focuses on controlled movements, targeted muscles, and adequate rest between sets for optimal results.
- Zone two cardio training is recommended for improving aerobic base.
- Zone two training involves maintaining a heart rate where you can carry on a conversation but don't want to.
- Doing zone two training three times per week for about an hour each can increase your baseline level of fitness.
- World-class athletes spend a significant amount of time in zone two to establish their base.
- Strength training is crucial for offsetting muscle breakdown as we age.
- Accountability and having a workout partner can help overcome resistance to starting a fitness routine.
- Start with small actions, like putting out your gym clothes the night before or taking short walks, to establish the habit of exercise.
Small Actions for Health and Retirement Planning
37:21 - 43:46
- Taking small actions every day can improve your life
- Walking is a great way to improve health
- Start with a small number of steps and gradually increase
- Identifying as a healthy and fit person is important for motivation
- Integrating fitness into your lifestyle leads to long-term success
- Look for small ways to improve overall health
- Living in alignment with your values applies to all areas of life
- Calculating retirement savings when you have a pension can be confusing
- Take annual expenses and subtract the guaranteed income from the pension
- Calculate the remaining amount needed for financial independence
- Consider advanced modeling if retiring before the pension kicks in
- To cover the shortfall in pension, one option is to exhaust extra money over a period of time
- In this scenario, an additional $400,000 may be needed to cover the expenses for 10 years
- Factoring in Social Security can significantly impact retirement planning
- Assuming a worst-case scenario, Social Security benefits may be reduced by 25%
- Counting on at least 70% of Social Security benefits is reasonable
- Consider other sources of income like rental income when calculating retirement expenses
- Sarah shared her success story of reducing her cell phone bill from $80 to $25 per month
Community Success Stories and Conclusion
49:38 - 55:51
- People in the community are taking action and making their lives better
- The podcast has helped people's lives and they're trying to improve the website
- There might be an additional podcast on the website in the future
- A listener paid off their second car and is now focusing on paying off their house principal
- Another listener reached CoastFI, which provides more options and flexibility
- Choose a by local groups in 300 plus cities worldwide.
- Fi episode 100 is a great starting point to understand financial independence.
- Chooseify offers a free financial independence 101 course at Chooseify.com/fi101.