Summary of Incremental Gains | EP 582

Overview of Incremental Gains | EP 582 (ChooseFI)

This episode is a wide-ranging “table of contents” tour of ideas, tactics and mindset shifts valuable to people on the path to Financial Independence (FI). Hosts Jonathan and Brad intentionally sketch many small, actionable concepts — from mindset detours like a “Red X month” to nuts-and-bolts items like ETFs vs. mutual funds, Roth IRAs for kids, MVNO phone plans, automating money, fees, and emergency-fund rethinking — to broaden listeners’ horizons and spark follow-up exploration.

Key topics covered

• Red X month / mini-retreats — intentionally blocking out time to unplug, recharge and create space for perspective and deep work.
• Journey vs. destination — celebrate detours: incremental gains compound into options and life changes.
• Fitness analogy & trust the process — episode 516 (masterclass on building muscle with Dean Turner) as an example of starting fresh, following a plan, and recording incremental gains.
• Parent & tech guidance — introducing kids to tech/games (Minecraft: creative vs survival) and the value of building vs. handed outcomes.
• Rollercoaster build (CoasterBricks/Etsy) anecdote — enjoying the process and setbacks.
• Investment account mechanics — mutual funds vs ETFs (VTSAX vs VTI), fractional shares and platform differences (Vanguard, M1, Schwab).
• Roth IRA for kids — eligibility, documentation and benefits.
• Roth contributions are withdrawable — contributions (not earnings) can be taken out tax- and penalty-free.
• Phone plans & MVNOs — Mint Mobile and Google Fi trade-offs (price vs international roaming), eSIM portability and setup gotchas for travel.
• Automating finances — autopay bills, auto-invest, pay-yourself-first, and set credit cards to auto-pay in full.
• Fees matter — advisor and fund fees compound dramatically over decades; a concrete example comparing returns with/without fees.
• Emergency fund rethink — smaller cash buffer + deployable assets, and using Roth contributions / investment accounts as available liquidity.
• Bank & miscellaneous fees — avoid ATM/overdraft/convenience fees; consider online banks and better account setups.
• Documentation best practices — invoices for kid earnings, scanned 1099s, HSA recordkeeping.

Main takeaways / insights

• Small, consistent actions (incremental gains) plus good systems beat heroic one-off efforts. The process is the product.
• Automate finances: autopay bills, automate saving/investing, and auto-pay credit cards in full to avoid interest.
• Fees are stealth wealth destroyers. Even “small” advisor or fund fees (1% AUM) can cut decades-long investment returns roughly in half — evaluate costs closely.
• Use ETFs (VTI) where appropriate and be mindful of buying mutual funds at a different brokerage (potential fee traps). Platform rules about fractional shares and pricing vary.
• Roth IRA contributions are flexible: you can withdraw contributions (not earnings) tax- and penalty-free — a useful liquidity option.
• If a child earns income, consider opening a custodial Roth IRA for them (document earnings—1099s or invoices).
• MVNOs (Mint Mobile, Google Fi) can save significant money on phone bills; Google Fi excels for international travel but must be set up/activated before leaving the U.S.
• Reassess the “massive emergency fund” idea once you have meaningful invested assets — smaller cash buffers plus access to investments, Roth contributions, HSA, etc., can be more efficient.
• Documentation matters: keep receipts, 1099s, HSA records and simple spreadsheets in cloud storage for future tax/withdrawal proof.

Notable quotes & soundbites

• “The detours are the journey.”
• “The how you get there is as important as the outcome.”
• “Pay yourself first.”
• “Time in the market is so much more important than timing the market.”
• “Fees matter — and they compound against you.”

Practical action items (quick checklist)

• Try a Red X month (a week–month of scheduled space): unplug, recharge, do deep work or family time.
• Automate everything you can: bill autopay, invest/pay yourself first, set credit cards to auto-pay in full.
• Review investment fees: calculate the drag a 1% AUM fee would impose over your time horizon.
• Prefer low-cost ETFs (e.g., VTI) where suitable; confirm platform rules for fractional shares and trade/pricing mechanics.
• If a child has earned income, open a custodial Roth IRA and save documentation (1099 or invoice).
• Remember: Roth contributions can be withdrawn penalty-free; use this as part of your cash/liquidity planning.
• Audit phone bills: consider MVNOs (Mint Mobile) to cut ~$50–$100+/month; use Google Fi only if you need premium international service — set up before travel.
• Minimize bank & convenience fees — move to fee-free/online accounts if needed; keep a small checking buffer to “sleep well at night.”
• Keep a cloud folder with scanned 1099s, invoices, HSA receipts and annual summaries.

Resources & links mentioned

• ChooseFI episode 516 — “Masterclass on building muscle” (Dean Turner) — recommended listening to learn the “trust the process” approach to incremental gains. (choosefi.com/516)
• ChooseFI community submission portal: choosefi.com/login — submit “Frugal win of the week” or “Life hack” and access local group event info.
• Commonly referenced funds: VTSAX (Vanguard total stock mutual fund) and VTI (Vanguard total stock ETF).
• MVNOs mentioned: Mint Mobile, Google Fi.
• Suggestion for life-hack/tool: ToDoist (task manager) for recurring local savings reminders.

Who this episode is for

• Newcomers to FI who want a broad list of ideas to explore.
• People already on the FI path who want refreshers and practical tweaks (phone bills, Roth kid accounts, automations, fee checks).
• Parents considering how/when to introduce kids to tech, money, and earned-income savings.
• Anyone who prefers actionable mental models and small changes that compound into real optionality.

How ChooseFI is engaging listeners

• New recurring segments: “Frugal win of the week” and “Life hacks” — submit via choosefi.com/login to be featured on future episodes.
• The show remains ad-free; hosts ask listeners to check Travel Rewards cards at choosefi.com/cards to support the podcast.

If you want more detail on any single item covered (e.g., the fee math example, Roth IRA rules for minors, or how to switch to an MVNO safely before international travel), look up the linked episode (516) or check upcoming ChooseFI follow-up episodes — the hosts plan to keep expanding this “incremental gains” series.