FM 025: FIRE Case Study with Chris Mamula

I love sharing FIRE case studies to inspire you. They prove the dream really is achievable for normal people with no extraordinary financial skills. They also unmask the dream to show how the reality of financial independence and early retirement differ from your idealized vision. The truth is everyone hits potholes, makes mistakes, and questions if it's worth all the hard work. Our guest, Chris Mamula, is no different. He candidly shares his FIRE story in this interview – warts, blemishes, and victories as well. Despite several costly errors he managed to achieve financial freedom in just 5 years. * Chris paid excessive fees to a financial advisor * He bought a variable annuity within a 401(k) * He felt “less than” when comparing himself to other FIRE success stories * But he got several critical factors right like keeping expenses low and saving a high percentage of his income, and that proved to be good enough. Financial freedom isn't about luck, brains, or a single great investment. It's about having a valid plan based on proven principles and taking sufficient action with enough persistence to reach the goal (exactly as taught in my Expectancy Wealth Planning course here). Anyone can do it, and these case studies prove it. I hope you enjoy the example Chris has shared. And if you got great value from Chris's story then please check out the other FIRE success case studies on this podcast. In this episode you'll discover: * What inspired Chris and his wife to become financially independent * Why Chris is so debt-adverse, and how it worked to his advantage * How Chris adopted the term “dirt bag millionaire” * The important role values play for achieving financial independence (they matter way more than you think) * Chris's personal definition of financial independence * How the 25x Rule, Rule of 300 and 400, and 4% Rule can give you a rough benchmark of how much money to aim for in retirement * The mistake that occurs when you get overly focused on retiring early * How to balance spending now versus saving for the future * What Chris did once he realized how unhappy he had become on this journey * How to avoid the insidious trap of “I'll be happy when I'm retired” * The benefits of continued work after financial independence * How to redefine what early retirement and financial independence mean, and why it matters * Abundance versus scarcity in early retirement * How Chris's plan reflects the “new retirement“ * The surprising reason why most people pursuing financial independence will continue to work * Risk management for early retirement * The key to understanding mathematical expectancy * Why it's paramount to become your own financial expert, lest you get taken for a ride by your financial advisor * The danger of financial advisor fees. Chris was paying over $8,000 every year!

Om Podcasten

Todd Tresidder from the FinancialMentor.com blog reveals unconventional wealth building advice and advanced investment strategy tips. Discover the next step in retirement planning and personal finance from a former professional hedge fund manager turned financial coach and author. If you are tired of the same old “buy, hold, and pray” and worn out frugality tips then this show is for you. Each episode teaches financial freedom for smart people by revealing what works, what doesn’t, and why. Todd has walked the path to wealth himself and coached hundreds of clients just like you to prove out every principle taught – no ivory tower theories or worn out platitudes. He’s organized the entire wealth building process into a cohesive, step-by-step system complete with specific action steps so you can produce measurable results. This isn’t just another “get-rich-quick” or “get out of debt” show. This is about carefully engineering your finances to take charge of your life so you can live the adventure you always imagined life could be.