FIRE Community Guest Interview #9: Lessons from a Fimigrant - Let Experience Be Your Teacher

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It’s time for the next installment of the FIRE Community Interview Series!

For anyone new here, this interview series will cover people within the FIRE community who are on their way to becoming financial independent, have already reached financial independence, or who have retired early. If you are reading this and you are financially independent, retired early, or close to reaching these major financial milestones, please reach out to the Modern Fimily! You can check out the previous FIRE Community Guest Interviews here.

I am so excited to have J from Fimigrant on to tackle our interview questions this week. J has a truly inspirational story and I’m so excited to showcase it here. She shows just how much your mindset can change in a year after becoming serious about your pursuit towards financial independence. Her responses make me feel like were sitting in the same room together having tea and chatting the day away.

I hope you appreciate these responses as much as I do and hope you can relate to these guest interviews in some sense to see that there is no cookie cutter way to FI. If you have any follow up questions or would like to get in touch with J, please check out her blog or leave a comment on this post. J, without further ado, take it away!

Can you give us a little background of who you are, what you do, and how you became interested in personal finance? How did you discover the idea of financial independence?

I am J and I am a naturalized US citizen from Venezuela. I am in my mid 30s and have been living in the US for half of my life. I am married and we have a three-year-old boy and a baby on the way. My husband became a stay-home dad when we became parents and I currently work in technical sales and have a side hustle as a fitness instructor.

I started to become interested in personal finance while in graduate school during the recession when a friend introduced me to Dave Ramsey’s plan. I also came across Mr. Money Money mustache back then, but we may have not been ready to act on all the FIRE content I was consuming. In April 2019, I came across the ChooseFI podcast and we must have been ready this time.

When in your journey did you realize financial independence was actually possible? Was that the original goal at the beginning?

Before we were married, I used the Dave Ramsey baby steps to get out of debt and we worked together to save cash for our wedding and started an emergency fund. After getting married, we continued the plan to grow our emergency fund and save for a down payment.

Before finding financial independence, the plan was to continue the baby steps and work until the traditional retirement age. After finding ChooseFI, I began to learn about the FIRE movement and realized that financial independence could be a reality for us.

To help put things into context, if you are comfortable sharing some numbers, what is your savings rate, FIRE number, net worth, salary, how many hours a week do you work, etc? How long have you been working towards financial independence and where are you today?

We don’t share our exact numbers; however, I think talking in terms of percentages can put our situation in context.

Prior to this year our savings rate was probably 6-10%, I was contributing to my 401k up to the match and the rest of the savings was going to the emergency fund and our house down payment. When we bought our home, we saved to pay cash for renovations but that was it.

After discovering financial independence, our savings rate has increased to 40+% and in 2019 we maxed all our retirement accounts for the first time ever!

We don’t really have a FIRE number now as there are many uncertainties when it comes to our future financial responsibilities. The main one being that we help my parents financially and they are living in a country undergoing a serious financial and political crisis. As they age, I am not sure how things will pan out so rather than having a finish line to FIRE, we would much rather put our family in the best position possible to live a good life and still be able to be help.

Since I work in sales, my income and work hours vary widely. Having a sales role allows me to work from home while covering a few states as my territory. Before COVID, I traveled 1-3 days a week on average but most of the time they were day trips as I did my best to minimize overnight stays.

Even though we were budgeting and getting our finances in order before, I believe our financial independence journey truly started in 2019, as soon as I started going down the FI rabbit hole.

Do you feel deprived? Do you feel like you are sacrificing and missing out on life? How would you say your mindset has shifted throughout your FI journey?

As long as we are focused on what makes us happy and gives us joy I don’t feel deprived at all. Part of it is the fact that we used to live in a very high cost of living area about four years ago; back then we were paying debt and saving a bit, but the traction was minimal.

After moving to a lower cost of living city, it was great to see how our savings goals were moving so much quicker. Our current mortgage payment (including insurance and taxes) is less than half of what our rent used to be and we love our home and neighborhood. Since our house was a fixer upper, the initial surplus went to do the major updates. Luckily once those were completed, I came across the financial independence content, so the savings just shifted their purpose.

The move was an upgrade on our lives without spending more. Moving allowed us to have way more traction with financial goals while living a way more comfortable life than before.

I would say that back when we bought our home, I did feel a bit deprived as we decided to go with a house that was much smaller (and uglier) than what others around us were buying (I guess that’s why the say “comparison is the thief of joy”). I kept thinking that this “sacrifice” and fixing the home slowly with cash would be worth the surplus we would eventually have. That period helped me address my mindset, as my worries were directed at what others would think rather than how I felt about our decision.

I think that’s one of the most important mindsets shifts we undergo when we decide to take care of our finances- we learn to think for ourselves and not let the opinion of others determine how to live our lives.

What do you spend your money on and what don’t you spend your money on? What brings you happiness and joy? How much money do these things cost?

Before the pandemic limited travel, we spent money on road trips for mini vacations and to visit friends and family throughout the year; we also bring my parents to the US every year or so. Memories with family and friends are what I treasure the most from how I grew up and our little family also gets tons of joy out of traveling and spending time with the people we love.

As my job involves some travel, sometimes we merge mini vacations with my work trips which works great. My job is very flexible, and I have a company vehicle which makes road trips fun and comfortable. We use hotel points I have accumulated over the years or stay with friends (they do the same when they come see us). Now that we discovered travel hacking, I can’t wait to see where else we can go.

We also spend on groceries as both my husband and I love to cook and eat restaurant-like food at home. That’s an area we can certainly optimize, however, our rich life today involves making great meals and experiment with recipes.

Personally, I also like to spend on personal development. In the past I have spent on counseling / therapy as I knew I needed help to overcome issues that were holding me back. I am a believer that our mental health should always be prioritized; without it you could be achieving all kinds of success but not even feel it. My husband is not a big spender on a regular basis but if we need something that will get a lot of use such as a vacuum or a fridge, we spend the money to get the best value on it. He did convince me to buy an expensive T-rex for our son’s birthday. He was right predicting that our son would love it and he would play with it daily!

Aside from that, we really don’t spend much. I am not a shopper and after moving I realized I wanted to get rid of things rather than bring more into the house. Because I teach fitness as a side hustle, I get our health club membership free for the family; this was an area I used to spend a lot in the past.

Music also makes us super happy, so we play instruments at home and I go to open mic a couple times a month which doesn’t involve a lot of spending.

Last but not least, giving is important to our family so there are always reserves to support a cause we care about and / or a friend’s fundraising efforts.

Do you use a budget? Do you track your expenses? Do you track your net worth? If so, how often do you update these?

Yes, we have used a zero-based budget for many years. I can’t say we stick to every category, but we do guide our spending accordingly. I try to update our expenses every Friday or Sunday but sometimes it only happens twice a month. We always end the month with balancing the budget and creating a new one for the upcoming month. I also like to track the percent we spend on our categories and see how it shifts under various circumstances.

We started to track our net worth last year; first, we did it monthly and this year we started doing it quarterly even though we can look at it at any time on the Personal Capital app. It has been nice to see the drastic improvement from when we started.

As a FIRE member living in the US, are there any pros to living in America specifically that have helped you along your journey? Conversely, any cons?

I came to the US as a student, so all my working life has been here. I am incredibly grateful for the opportunity I had to get paid to get a doctorate degree as I was a teaching / research assistance while doing so. My job also sponsored my green card and has provided me with benefits and a compensation that allows us to live well and still save and invest.

I believe there are many pros to living here but, when it comes to living a healthy financial life, it won’t happen by default. As there are options we can use to help us prosper, it is also very easy to dig ourselves in a hole of debt. This is a country filled with opportunities, but it requires we lead our own way intentionally.

The health care system is America is also challenging to navigate and certainly a hurdle when trying to plan how much we would need if we go for early retirement along with achieving financial independence.

What is your investment strategy? Do you invest in mutual funds, index funds, dividend growth stocks, real estate, other businesses, etc.? Has your investment strategy changed over the years?

Before finding FI I had a Roth 401k at work invested in a target fund, that was it. Towards the end of 2018, we followed Dave Ramsey’s advice and found a financial advisor to open a Roth IRA and a 529 for our son. He had us in actively managed funds but luckily, I had only a few hundred dollars in it when I realized how damaging the fees could be to our retirement.

In 2019 we revised our investing strategy and started to use index funds; overall I became hands on with our DIY approach instead of using an advisor. Another big change was to max our 401k, HSA and IRAs (we opened one for my husband in addition to mine). We are also learning about real estate to possibly add that to the mix in the future. A small business may also be something we experiment with especially as the little ones grow and start to go to school.

As a parent pursuing FI, what have been some of the most expensive child related expenses from your end? What are some of the best items or experiences you’ve spent on your son to date? What were some baby/child items that you thought you needed but didn’t really need?

When we had our first son, we were lucky to have friends with slightly older kids who passed along barely-used clothes and baby items and continue to do so as our kids grow. I also breastfed my first son until he was 18 months which saved us a lot; the intent is to do the same with our next baby but babies couldn’t care less about our plans, so we’ll see.

With all the hand me downs plus the gifts we received during our first baby shower we really haven’t had to buy much of anything. Moving with a baby that was weeks old taught us that we really don’t need a lot and we still have the main things we need to welcome our next baby later this year.

Our first son hated his crib, bibs and dress up clothes so those items weren’t really used; I passed them along to people that needed them and kept a few. Following a friend’s advice, I rotate toys so there always seems to be something new and interesting. My son’s grandma also likes to get him anything he may need and would not take no for an answer which has been a big help.

When it comes to spending, we have prioritized experiences so far, but we are not opposed to buying quality instruments or sports equipment as our kids grow. We love visiting zoos and aquariums, farms and waterparks; my son absolutely loves exploring nature, visiting the animals he sees on his books and he could spend hours in a waterslide without getting bored.

We have also gone on vacation with close friends that live far so our kids get the chance to build fun memories with each other. I think those have been some of the most fun ways we have spent money and the fun has been for both kids and parents.

As an American pursuing FIRE, what are your post-FIRE thoughts/plans regarding health coverage? As a reference, what do you currently pay annually or monthly for health related costs (be it insurance, co-pays, deductibles, etc.)? What do you estimate your post-FIRE health costs to be per year?

Aside from my parent’s situation, this is the other big uncertainty I see with FIRE. I don’t have an answer now, but I keep on reading to see how others have tackled health care in early retirement. My current plan is to do what is under my control to stay as healthy as possible. I also think that I may still work as I enjoy it and could also benefit from the health care coverage.

Currently, we are in a high deductible plan that costs us less than $100 / month for the family. We plan to max our HSA every year and strategically use our limited FSA.

We invest our HSA funds while paying for medical costs out of pocket; we keep our receipts so we can withdraw funds from the HSA when the need comes.

We will edit our strategy as needed and if we need to pay something from our HSA we are fine doing so too.

As an immigrant from Venezuela now living in the US, how does living in the US compare to what you thought it would be? How does it differ from your life in Venezuela? Do you have any regrets moving to the States? What was the process like? How has it affected your FI journey?

When I grew up in Venezuela, the country was a much different place that what it is today. Back then, the oil industry was booming which allowed for prosperity and opportunities to flourish; we attracted investors and tourists from all over the world that wanted to experience our beautiful country and fertile economy. It was by no means perfect as there were still a lot of economic inequality, corruption, and safety issues in the big cities. Nevertheless, I always saw myself living a great life there as I loved being close to family as well as our culture and my country overall. I was privileged to grow up having way more than enough and I was aware that was the case since a very young age.

I came to the US to learn English; the plan was to be here for a year between high school and college. However, during my year abroad the political situation started to change drastically, and my stepfather foresaw that our country’s situation was going to decline significantly. He encouraged me to seek academic opportunities while I was in the US and my academics and involvement in sports allowed me to get a large scholarship for college. It was a pivotal moment for me as I never thought about having a life away from home and my family, but I understood that this was an opportunity I had to take while I could.

I went from having everything and doing nothing to having nothing and doing as much as I could to sustain myself here. My parents helped me with the part of the tuition that my scholarship didn’t cover. I kept applying for more scholarships and became a resident advisor to lower their contribution; I knew they were in trouble and everything was changing by the day. I was committed to minimize what I needed from them so I cleaned houses, babysat, worked as a painter, tutored and took every side gig I could so I could take care of myself. It was tough but we made it work and I ended up graduating with no debt. I applied to graduate school and got a full ride and a small stipend, which felt like a million bucks.

After all those years, going back felt like when Simba went back home after Mufasa died and Scar took over the land in the Lion King; that’s honestly the best analogy I can give you. I couldn’t believe how everything had changed and I am grateful my stepfather encouraged me to stay here and maximize my opportunities. I have no regrets about moving even though it has been difficult to not be around my family as they navigate the hardships.

On my end being an immigrant has taken resilience, hard work and not taking myself too seriously. My old life was behind, and I was a 16-year-old naïve girl that grew up in a bubble facing many unknowns and hustling non-stop to make things work. But my life wasn’t near as hard as that of my family back home which today go hours and sometimes days without water or electricity.

I grew up in a multi-generational household and we always had family around raising kids; I unfortunately don’t have that, but I am grateful we can at least communicate by video and phone when they have power. I am also incredibly thankful I am in the position to help them and bring my parents over here every so often while still pursuing our own financial goals. Back home, the current hyperinflation makes it impossible to even consider financial independence (just google “inflation in Venezuela” and your jaw will drop). Speaking with my family often makes me not take anything for granted; filled shelves at the supermarket, houses without fences, safe walks to the park, and a decent salary are luxuries they don’t get to have.

Getting them out of the country is an ongoing conversation but it is also a decision I cannot make for them, yet another powerful reason to work on having the means and freedom to assist them when / if it happens.

If you could go back in time and change things, what would you have done differently?

I would have picked up a personal finance book way sooner than I did. With that, I would have avoided debt, taken advantage of retirement accounts much earlier, and be further along than we are now.

Another thing I would tell my younger self would be to be more confident and trust my own intuition even if it went against the popular opinions. I had an inferiority complex for a while, and it prevented me from playing my strengths. I was too focused on people pleasing and left myself last too often. Along with that, I would tell younger me not to be so hard on myself and actually celebrate my wins; I was always too focus on the next mountain to climb without stopping to appreciate the strides I had already made.

Has discovering financial independence changed how you view your job and life overall?

Absolutely! It really helped me understand that success is aligning our choices with what is important for us. As I read recently in a Paula Pant’s post “the only real success in life is living on your own terms.”

Discovering FI gave us freedom on how to approach our financial journey. The baby steps were helpful, but I struggled with the one-size fits all concept. The diversity I see among the FIRE walkers pumps me up, this movement goes beyond money and really is about living intentionally.

We subscribe to the Slow FI approach described by the Fioneers; we believe that we can design a life we enjoy today that incorporates freedom and flexibility without needing to reach full financial independence to do so. We were doing it before even realizing it as that’s why we moved and why I switched jobs to one that gives me more flexibility and autonomy (and a higher income!) to structure our family life the way we wanted it.

Do you take advantage of tax advantaged accounts offered to you? If so, which ones and how so? Do you have a game plan to be able to withdraw from these funds without getting hit with a penalty?

I am so happy that I can say YES to this question. We maxed our retirement accounts in 2019 and plan to do so in 2020.

I know many in the FIRE community prioritize traditional rather than roth accounts to lower taxable income and pay lower taxes during early retirement. However, even though we are pursuing FI, early retirement is not a concrete goal of ours and for the moment it gives us comfort to fulfill our tax responsibility now and avoid being affected by future changes on the taxation of retirement account withdrawals. Because of this, we have a Roth 401K and Roth IRAs; we are considering contributing to a traditional 401k next year but haven’t decided yet. If we do so, the Mad Fientist’s Roth conversion ladder would apply for the future to avoid penalties.

I am also keeping all receipts for medical expenses for future penalty-free withdrawals from our HSA (now we pay for medical costs from our regular cash flow or savings).

We also plan to accumulate funds on a regular brokerage account moving forward and keep learning from those further along on the FIRE path and adjust our strategy as we see fit (that’s why I love blogs like yours!).

Where do you see yourself in the next year, 5 years, 10 years?

This question took me back to the job interview days (ha!) and part of my answer hasn’t changed. I can only imagine the future based on what I have been exposed to as of today and in 5-10 years that can change considerably.

Being on the FI path at least gives me clarity on the fact that we will be much closer to having passive income that covers our expenses. Our house will be paid off then and I can see us maybe owning an investment property as well.

By then we would have collected tons of family memories and we will be looking forward to making more. I also hope that in that timeframe I have found ways to use my strength to positively impact others in my local community and beyond.

Maybe sharing my experience with immigration or personal finance or even motherhood as a breadwinner or who knows…I may start teaching regular dance workshops as a side hustle. I know I will still be playing music and using dance and movement to get joy in the now. How awesome would it be if the little one would like to join me on stage? I can see now he enjoys instruments, music and singing like I do.

Have you come out of the FIRE closet yet? Meaning, do your friends, family, co-workers etc. know about your financial independence goals? If so, how did you bring it up and what were their reactions? If not, why not? Why do you struggle with this conversation and why do you feel that money such a taboo topic?

The short answer is no, we are still in the cozy closet.

However, some of my close friends and family know I have an interest in personal finance as I have a hard time being completely silent about the subject.

Part of the reason I don’t share our goals is that I feel some people confuse frugality with having a scarcity mentality. I am open to have conversations, but I don’t feel like explaining our choices when faced with judgement.

I am open to learning from others and sharing our experiences if I sense a genuine curiosity about the way we choose to live. I have a couple coworkers I can speak openly about FI as they have similar goals. There is also an ex-colleague I reconnected with that is a huge role model in my journey; before I found FI I was super curious about how he was able to walk out of the job like he did and open his own side business buying all the equipment he needed without debt. Once I discovered FI, I reached out to him and we chat often to exchange ideas and updates. I also speak openly about our goals with someone from my husband’s family but that’s about it.

We also keep our numbers and goals in the closet because it is just easier that way. Many in my extended family are living a difficult financial reality. Even though I know improving my finances will help me help them better, it will be challenging to explain a long-term strategy when they face short-term needs.

What pieces of advice would you suggest to someone who is just starting out or someone who is working toward reaching financial independence?

I would say forgive yourself about past mistakes, learn about different strategies and formulate a plan that works for you and your family. Forget about perfect and start taking action today no matter how small it seems.

It also helps to go back to the basics and determine your priorities, what gives you peace of mind, what makes you and your family happy. Imagine what that feels like and you will start realizing a lot of it you already have.

Stay positive, optimistic and generous through the process but also know that there will be bad days and setbacks. Face the challenges as a test and opportunities to learn and grow. Find a community that supports you – online and / or in person; and don’t forget to acknowledge your wins and live with gratitude.

There are so many teachers, leaders, and influencers out there that I am sure you will find the one that resonates with you. Stick to the ones that inspire you to learn, and most importantly, empower you to act!

You can start today by tracking your expenses without the immediate goal of changing anything. That will give you clarity on your financial habits and help you determine what needs to shift first.

What has been your greatest accomplishment to date?

Aside from making it work with school and successfully navigating the immigration challenges, having the courage to leap on gut feeling when we decided to move was an accomplishment on itself. That involved applying for a new role in the third trimester of my pregnancy, which was unheard of in my company.

In retrospect, having a baby, buying a fixer upper, moving, and applying for a new role as my belly was about to explode seems crazy and risky but something within me told me this was the right timing and we trusted ourselves. Fast-forward a few years and that allowed us to design the life we wanted, and I adapted my career accordingly rather than the other way around

That courage to be confident on our decision has been one of my great accomplishments to date because we executed on an idea and remained focused and optimistic no matter the challenges that came along. In the past, I have let my fears or others’ opinions dictate my actions or better said – lack of action. This time it was different and empowering.

Are there any books, blogs, or podcasts that you would recommend for our readers to check out?

My intro to FI was with the ChooseFI podcast, I listened all the way from the beginning and would recommend it to anyone starting out. I also love The Simple Path to Wealth by JL Collins, the Fioneers, and Modern FImily!

I recently joined the Mommas Talk Money community by Chelsea Brennan and I love her energy as a leader and how supportive everyone is.

On Instagram @conrad_inspire keeps my laughing with his memes, @forbetterofworth helped me substitute “pay day” with “grow my net worth day” and I love @savemycents and her truth bombs that keep me learning and taking action.

I am not in Canada but Explore FI Canada is a great FI resource for Canadians too!

How can people get in contact with you?

You can follow my Instagram account @fimigrant, visit the Fimigrant blog (www.fimigrant.com) or email me directly at thefimigrant@gmail.com.

Whoa – what great responses! Here are some of our key takeaways from this interview:

J and her partner were able to boost up their savings rate of 6-10% to 40+% within a year?! Going from a work Roth 401k to maxing out the 401k, HSA, and two IRAs within a year is amazing and clearly there were some mindful decisions in play here to increase this so significantly. Awesome job!
Surprise, surprise – our streak of feeling deprived remains at 0. Focus on what makes YOU happy. J out it perfect here, “we learned to think for ourselves and not let the opinion of others determine how to live our lives”. Figure this out and you have mastered the required mindset.
Great point on focusing on your mental health. Love the line “our mental health should always be prioritized; without it you could be achieving all kinds of success but not even feel it”. So true!
Similar to Kim from last interview, J uses her side hustle of a fitness instructor to not only bring in income but allow her entire family access to their fitness center for free. Life hacking!
While I’ve never read through or used Dave Ramsey for anything related to personal finance, I think he has a good method to get out of debt but then you have to realize that he is a business man and trying to sell endorsed products. Sadly, his investing advice comes with high fees! Beware of fees!
We too rotate our kid toys weekly and only keep 5 out at a time (the rest all fit within a single toy box). No need to overstimulate and the rotation keeps the toys fresh in their eyes.
I absolutely love J’s powerful immigration story. Her grit has clearly played a large role to become the woman she is today. I love the reference to The Lion King along with this sentence; “I went from having everything and doing nothing to having nothing and doing as much as I could to sustain myself here.”
Love J’s response to question 12. Just like your journey to financial independence it’s important to enjoy the journey along the way rather than solely be focused on the future end goal.
I love how J has a Roth 401k and Roth IRA even though she recognizes many members of the FIRE community don’t advocate Roth’s as much. The key takeaway here is there is no “one size fits all” plan to FI. Both are great types of accounts and I personally see many advantages to a Roth vs Traditional especially since it is likely that the tax structure and rules will likely change once it comes time to withdraw from these accounts.
Man how good is her response to question 17? “It also helps to go back to the basics and determine your priorities, what gives you peace of mind, what makes you and your family happy. Imagine what that feels like and you will start realizing a lot of it you already have.” YES!

Thanks again J for being a part of our FIRE Community Guest Interview Series on the Modern FImily blog.

Next month’s interview will be one of my favorite Instagram accounts – Jeremy from Personal Finance Club – who is a multimillionaire living in San Diego and reached financial independence in his early 30s.

Did you enjoy this interview? Any additional questions for J? Thanks for tuning in and check back next month for the next interview.

We love highlighting other members of the FI community. Please contact us if you’d like to be a part of the FIRE Community Guest Interview series and we’ll see if we’re a good fit!

And in case you wanted to read the previous interviews that make up our FIRE Community Guest Interview Series, here you go!

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