Introduction
Bill Gates once said, “Most people overestimate what they can do in one year and underestimate what they can do in ten years.” As it turns out, we can just as easily underestimate what we can do in one year. At least, this was the case for me.
In June of 2023, only a few weeks into my first summer internship, I discovered the concept of financial independence (FI). As someone who has always been intrigued by personal finance, I decided to listen to a podcast to pass the time in my cubicle. One quick Google search led me to the ChooseFI podcast. Little did I know that pressing play on that podcast would be the first domino to fall, completely transforming the direction of my life.
At the age of 21, with just a brief taste of corporate life, I realized that a traditional 40-year career in corporate America didn’t have to be my destiny and that it was in my power to create my own path. How could this knowledge not change everything?
From the first episode, I was hooked. As of writing this post, I have listened to more than 640 episodes of the ChooseFI podcast – in other words, 6-plus years of content. I’ve also listened to countless hours of other self-help and personal finance podcasts, and spent even more hours reading nonfiction books in the same vein.
The knowledge I have gained in the past year has been nothing short of transformative. Below is a list of the changes I have made and the accomplishments I have achieved in my first year of chasing FI to enhance my health, increase my wealth, and strive for happiness:
- I increased my net worth by more than $25,000 as a college student, $15,000 of which is dedicated to a down payment on my first rental property or house purchase.
- I paid off my car loan and redirected those savings into my Roth IRA.
- I maxed out my Roth IRA for 2023 (and will max out in 2024).
- I opened a HYSA to hold my emergency and down payment funds.
- I started tracking my net worth and expenses.
- I accepted a promotion to Sergeant in the National Guard.
- I gave a “Retirement 101 Class” based on FI principles at my National Guard unit and my summer internship.
- I realized I was not using a $400 monthly military benefit and got back-paid for five semesters.
- I allocated 70% of my drill checks toward my TSP (federal employees and uniformed service members version of a 401k)
- I attended my first in-person FI event.
- I helped my little sister start her Roth IRA.
- I rebalanced my parents’ retirement portfolios out of high-fee options into index funds.
- I discovered the industry I want to pursue post-graduation and landed an internship in this industry with a 20% pay increase over my previous internship.
- I conducted over 30 informational interviews with professionals in the industry I want to pursue.
- I got a side job where I could be paid to study.
- I started goal-setting with my girlfriend to continue our growth together.
- I started a book club with my friends.
- I rediscovered my love for reading, focusing on nonfiction books.
- I amassed 100k credit card points and booked my first travel hack vacation.
- I cut out most processed groceries from my regular diet.
- I started using the sauna to help in my weightlifting recovery.
- I began time-blocking my weeks to be more productive.
- I maintained a 40%-50% savings rate.
- I stopped wasting my tuition reimbursement.
- I decided to start a blog and Instagram account.
In short, I stopped drifting, started designing the future I want to have, and began taking action to reach it.
This past year has been a whirlwind of learning, growing, and accomplishing. The progress I’ve made has laid a solid foundation for my journey toward financial independence, surpassing even my wildest expectations. I’m excited to share the details with you, and I hope you’re eager to hear more about my story.
Setting the Stage: My Starting Point
My name is Devon and I am a 22-year-old college student in Minneapolis, Minnesota. I am a senior mechanical engineering student entering my final semester before graduation. I’ve lived independently for the past 3 years and will graduate this December.
My upbringing in the Minneapolis suburbs was that of your typical type-A personality. I grew up in a loving home, excelled in school, joined the Minnesota National Guard, earned a decent scholarship for college, and moved out to attend university. By the time I left for college, I had set myself up nicely for a promising future. My military service covered my tuition, allowing me to use my scholarship money however I wished.
I thought that I was doing great, and by most metrics, I was. I would be able to graduate debt-free, go to college for-profit, and transition into a high-paying career after graduating.
However, my confidence in the track that I was on made me complacent in my finances. I knew that almost no matter what I did, I would enter my career far ahead of most in my generation. It was this mindset that left me drifting in my finances. While I wasn’t drifting to the proverbial rocks, I wasn’t maximizing the phenomenal platform I had built for myself.
I wasn’t very serious about investing and saving. My Roth IRA was filled with ETFs I found through a simple “best ETFs to invest in” Google search, and I set aside 10% of my income in a savings account. I also had some debt—a modest car payment and a small student loan that I could have paid off at the end of each semester with my tuition reimbursement (if I had chosen to).
My financial state was unremarkable. But that all changed when I discovered ChooseFI. ChooseFI provided me with one simple tool to transform my decent financial position into an extraordinary one: intentionality.
The Power of Intentionality
1. Seeing My Problem
The podcast inspired me to take a look at my financial picture, create an expense calculator, and track my net worth. Despite considering myself frugal, these actions revealed just how much I had been drifting. The calculator I made categorized my monthly expenses, distinguishing between necessary (rent, grocery, gas, etc.) and unnecessary (eating out, fun purchases, etc.) spending. Here’s a snapshot of my spending before Summer 2023:
| MONTH | TOTAL SPENT | UNNECESSARY SPENDING |
| January 2023 | $2206.41 | $610.75 (28%) |
| February 2023 | $1924.78 | $743.09 (39%) |
| March 2023 | $1678.13 | $358.53 (21%) |
| April 2023 | $2260.21 | $982.69 (44%) |
| May 2023 | $2020.79 | $927.87 (46.8%) |
Realizing that I had thrown away $3622.93 in 5 months was a shock to my self-imposed label of being a “frugal” person. I could not even begin to tell you where I spent the money, but seeing it all laid out was the wake-up call I needed to make a change.
I highly encourage everyone to track their expenses; you cannot change what you do not track. Whether it is through Excel, an online service, or good old-fashioned pen and paper, seeing your habits is the first step in making a change. And that is exactly what I did next.
2. Intentional Saving
Before I discovered the power of intentionality, I followed the “pay yourself first” principle from George Samuel Clason’s The Richest Man in Babylon. I saved 10% of every dollar I earned, which went into a high-yield savings account (HYSA) earmarked as my “estate” fund, which held my growing down payment for my first rental property. Additionally, I maintained a “rainy day fund” in another HYSA with $2,000, earning approximately 4% interest annually.
I thought I was doing great, but after hearing about people with a 50% to 80% savings rate on ChooseFI, I knew I could do better. I increased the amount I was saving from my paychecks from 10% to 40% and divided it between the estate fund, rainy day savings, and investment accounts.
For full transparency, in the summer of 2023, I had an internship paying me $25 an hour. This rate definitely gave me an edge in achieving my savings and investing goals, and I was blessed to earn this much as a college student
Nevertheless, intentional spending is a worthy endeavor at any income level. At lower incomes, the challenges will be greater but the gains will be proportionally larger. Every dollar saved is power in your corner, providing you with more flexibility in your decisions and propelling you toward your financial goals.
3. Intentional Investing
Alongside increasing my savings rate, I placed a focus on investing more. At the start of summer 2023, I had a $3,000 Roth IRA, largely forgotten since I opened it in 2021. It was invested in a mix of ETFs I found through the aforementioned Google search, which had grown by about $200 – nothing remarkable.
Enter ChooseFI, which introduced me to the power of low-cost index investing. Hearing JL Collins, author of The Simple Path to Wealth, on the podcast was a game-changer. I was instantly sold on this method of investing.
Low-cost index investing is investing in indexes, such as the S&P 500 or the total US Stock Market Index, and letting it grow. The idea is that most people can’t consistently outperform the market, so it’s better to match it with minimal effort and fees. This is achieved through low-expense ratio mutual funds and ETFs.
After embracing this method, I started investing $125 weekly into my Roth IRA and reallocated my hodgepodge of investments into low-cost index funds. My goal was to build the habit of regular investing and aim to max out my Roth IRA.
I use Fidelity as my brokerage, so my portfolio looks like this:
- 90% in the Fidelity Total US Stock Market Index Fund (FSKAX)
- 10% in the Fidelity Total International Market Index Fund (FTIHX)
Every brokerage offers its own versions of mutual funds. If you’re with Vanguard, your portfolio might be:
- 90% in the Vanguard Total US Stock Market Index Fund (VTSAX)
- 10% in the Vanguard Total International Index Fund (VTIAX)
For Charles Schwab users, it could be:
- 90% in the Schwab Total Stock Market Index Fund (SWTSX)
- 10% in the Schwab International Index Fund (SWISX)
If you prefer ETFs, you can achieve the same diversification with:
- 90% in the Vanguard Total Stock Market Index Fund ETF (VTI)
- 10% in the Vanguard Total International Stock Index Fund ETF (VXUS)
The key is to keep fees low. As a rule of thumb, I ensure my fees stay below 0.1%. This way, more of my money works for me, growing my investments with minimal cost.
4. Intentional Spending
Realizing the extent of my wasteful spending, I committed to being more intentional with my money. Every purchase I made in the summer of 2023 was recorded in my expense calculator. Recording my expenses both subconsciously and consciously made me spend less overall. I knew I’d have to reflect on each purchase at the end of the month, so I made each purchase with a more watchful eye. This practice alone saved me countless dollars and significantly reduced unnecessary spending.
One of the most impactful decisions was choosing to pay off my car in full after receiving my tuition reimbursement. I paid down $4,661.30 of debt on my car loan, a decision directly inspired by the intentionality I learned from listening to ChooseFI.
As a result of my military service and scholarships, I receive between $4,000 and $8,000 once a semester, a month or two after finals. Usually, I waste away this lump sum of money without having much left to show for it afterward. This time was different. Armed with intentionality, I chose to put $3,600 towards my car, paying off the rest in weekly installments over the summer.
By embracing intentional spending, I transformed my financial habits and created a solid foundation for my future. Paying off my car loan and diligently tracking my expenses allowed me to redirect funds toward savings and investments, accelerating my journey toward financial independence while avoiding wasting money on things I did not need or even want. This intentionality not only improved my financial health, but it also empowered me to make more informed and strategic financial decisions.
Outcomes
Instead of endlessly detailing the impact of my actions, I’ll let the results speak for themselves. Here’s a snapshot of my spending habits after embracing intentionality:
| MONTH | TOTAL SPENT | UNNECESSARY SPENDING |
| June | $2679.61 | $1153.38 (43%) |
| July | $1640.55 | $380.56 (23%) |
| August | $1868.06 | $350.56 (19%) |
I am grateful that I made a change at the start of Summer 2023. Looking at June, it is clear that my spending was a bit extravagant with my new internship salary. However, when July came around, I committed to my goals and intentionality. The numbers tell the story: July was my lowest spending month of the year, with the second lowest amount of unnecessary spending. I continued this streak in August, achieving the lowest percentage of unnecessary spending yet.
I didn’t stop my intentionality after the summer. Over the past year, the effects have compounded. Here’s a snapshot of my net worth from June 1st, 2023, to June 1st, 2024:
| Item | June 1st, 2023 | June 1st, 2024 |
| Rainy Day Fund | $2,006.26 | $3,098.12 |
| Estate Fund | $2,554.35 | $13,342.08 |
| Roth | $3,052.24 | $13,305.33 |
| TSP | $2854.36 | $7,373.56 |
| Savings Accounts | $6,470.00 | $1,430.72 |
| Checking | $50.00 | $100.00 |
| Debt | -$7911.30 | -$3,250.00 |
| Liquid Cash | $11,080.61 | $17,870.92 |
| Assets | $5906.60 | $20,678.89 |
| Liabilities | -$7,911.30 | -$3,250.00 |
| Net Worth | $9,075.91 | $35,315.81 |
Despite what it might look like from the numbers, I haven’t sacrificed happiness or health to make these changes. In fact, I’m happier and healthier than ever. I continue to enjoy good food, travel, spend time with friends and family, go out, and stay active, just as I did before deciding to pursue financial independence. The difference is that now I do everything with intention rather than drifting, allowing me to maintain a full and fulfilling life at a fraction of the cost.
Takeaways
In conclusion, the power of one year should not be underestimated. With intentionality and a commitment to continuous improvement, anyone can make significant strides toward financial independence, and a happier, healthier, more intentional life. As I look forward to the future, I’m excited to continue sharing my journey and encouraging others to start theirs.
I hope that my story serves as an inspiration for your own financial goals. When it comes to personal finance, it’s easy to get bogged down in the “finance” and forget the “personal” aspect. Your journey toward financial success is unique, but with determination and the right mindset, you can achieve remarkable results. Start your journey today and embrace the possibilities that lie ahead. Until next time, make a change and chase your “Freedom by the Day”.