Episode 035 – Using Mini Retirements and Fun Funds as a FI Strategy
Today we interview Leanne, a 23 year old who works in the music industry in London. She is saving for financial independence as well as organizing multiple streams of income. We discuss how she’s finding the balance between being frugal, working and mini retirements.
We also talk about:
- Active and passive income streams
- Earning more money or being frugal as a general approach to FI
- Compensating fluctuations in income
- Being flexible in negotiation
- Defining a relationship with money
- Having a fun-fund!
- Mini retirements
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Organising multiple income streams in the creative industry
Leanne works as a product manager at a company that conglomerates about 15 music labels: at the same time, she runs her own artist management company. She started early with both her active and passive income streams: active being her everyday work as a product manager and passive being her saving a relevant percentage of her income and focusing on the releases of her artists. She also organises her revenue streams between long and short term income, for both her pension and her ‘fun fund’.
Mini – retirements: how to get started
Leanne will be taking a three-months sabbatical – or mini-retirement – in 2 weeks. How did she organise it? She wrote a policy in her company’s papers that allows employees to take some time off, and is now going off and doing exactly that! #hackthesystem. By showing them the benefits of breaking routine, learning new skills and visiting new places, she’s convinced them that mini retirements are more good than bad, and is now aiming to incorporate them in her future lifestyle. This is especially true for people in the music industry, where Leanne says you really have to love the job to take it.
Finding the right balance between saving and spending
Leanne is managing her income streams by combining a very frugal lifestyle with enjoying free entertainment through her work. Even living in London, she manages to keep rent and other expenses as low as possible. She also has several funds she allocates her money to; investments for FI, an emergency fund and a ‘fun fund’. She says everyone should have a fun fund that they should use to spend on whatever they want. She’s choosing to spend it on her 3 month mini retirement 😛
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Want to stay in the sun and surf with the brightest minds of the FI Europe tribe? Check our FI Europe Retreat 2019!