JL Collins Explains FU Money vs. FI Money

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My wife and I bought too much house initially, as soon as we realized we’re were spending more than we made, we put the house up for sale and bought a house where the mortgage was 1k less a month. It was the best decision we ever made, our incomes increased and now we have no worries

5k in 1972 would be $36,447 now in 2024 .....according to inflation calculator

Im a physician. I got burned out last year. I quit. The director gave me a few options but I decided to just leave in good terms. I came back 5 months later on my terms and they did not even put up a fight. They agreed to my requests.

A year before I quit my last office job (have been self-employed for 10 years now) I told my boss I wanted to reduce my work to 32 hours a week. I wanted to devote more time to my side hustle to see if I could eventually make that my full time job. I could tell he didn’t like the idea, but he agreed to it because in his words “we don’t want you to quit.” He knew I had enough FU money to walk if he didn’t reduce my hours. I have friends who live paycheck to paycheck and they end up being hostages to their employer. FU money is FREEDOM.

i grew up in a part of the world where opportunity and employment were not guaranteed. I've never regarded any job as permanent and once i got to a point where i was making more than just enough to survive, i put the vast majority of the surplus into retirement and cash savings. One observation. I think most people assume they are going to be able to work at their careers until full retirement age. They won't. Odds are they'll be forced out long before then. If you shave 20 years off your retirement age and consider that to be the point when your employment will become much less secure, you'll prepare accordingly. The main benefit of having financial freedom is that you build an exit door for yourself. Your employer doesn't hold your fate in their hands. Leaving that kind of work to do work or whatever you want that hold meaning for you is a good life.

I’m so grateful for JL Collins and Jack Bogle. Been on the path with a median income for 8 years and I can see the finish line. The numbers changed when I did!

I’ve been out of debt most of my adult life. I had a VERY high stress and low work/life balance career, and one day (with the support of my wife) I just quit. The key? No debt and a pile of FU money. Now I work remote for less, but through budgeting and long-term planning, still achieved paying off the mortgage and now in the best spot we’ve ever been in. Upgrade cars? Start a small business? The world is our oyster.

Financial advice from Optimus Prime! Love it

I am $160K away from FU money. That will take 1.5 to 2 more years. Retiring in summer 2027 at 62 and just to be sure we have that FI topped off!

I always put FU money as a step past FI. FU money by my definition would be the point where if an employee at some company was rude to you, you can buy the company and fire the person.

Rather than say, "if $40k yearly is needed ..", we should discuss our actual needs. For us, it's 1) property taxes 2) utilities 3) groceries yearly. Everything else is optional. A luxury. Toys, at best. Wasteful, at worse. Then, back into discussions about these, where they're higher and lower. What brings more joy vs headaches. For example, Where do we get more amenities in exchange for the property taxes. Beyond the beach and mountains, I find the property taxes of being in the DC area offer more than any other places in the US. The quantity and quality of free museums. The volume of top schools. The moderate weather. Access to both beach and mountains. Generally half the cost of NYC and California..... Or... Does a car or unlimited transit pass bring more joy. I'm looking for these discussions...

I love this man. He has a gorgeous voice and a no nonsense approach, which is clearly a double bill. Thank you both. ❤❤❤❤❤❤❤❤

Mi was really aggressive in real estate as a young guy, always using other peoples money. Technically, at 32, I could have retired. I’m 52 now, had a great 20 yr career as an airline pilot, and I farm at scale. I’ll qualify for a reserve retirement and benefits soon. I never stopped investing, I work on aircraft as a side gig. It is and was always the FU factor for me. I was never beholden to the military, my airline, the farm, or fixing and fabricating things. The farming operation is set up as a legacy item. My mark on the world long after I’m gone. It’s set up to where I can’t even sell it. It’s it’s own being.

The Simple Path to Wealth is an amazing book. I recommend everyone read it.

Although I hate using the term FU money, I see it as the level of wealth where I can say and do almost whatever I want to do and I don't care about pissing off others because their actions have little to no impact on me. Of course I wouldn't commit a crime, but with FU money I have the freedom to communicate any opinion, live wherever makes me feel comfortable, and sue whoever pisses me off. FI is being able to live the typical standard of living you planned to live without working, but you still have to play by society's and government's rules, systems, and norms. Essentially with FI you still have to bend to those with much greater power and authority than you.

I crossed the FU stage about 9 years ago. I said it would not make a difference - HUGE LIE! No, I started telling everybody what I actually thought about everything, and it's been GREAT! FU is a great philosophy of life!

I'm 58 and was burned out from the job. Told my boss I quit and he asked me what can he do to keep me? I said 1 year of sabbatical leave to travel. He came back in two days and said OK... Woo hoo! Leaving in 3 weeks for Asia, Europe, Central/South America trip!

20's FU Money < FI Money << 40's FU Money Just looking at title, for me FU money(do whatever you want) had to be much higher than FI money(enough to live on).

Im living 6 pack to 6 pack.