Financial Independence is a journey filled with trade-offs, choices, and personal nuance. In this episode, Dave and Hayden dive into a listener case study and a batch of audience questions that get to the heart of what FIRE-minded Aussies are grappling with. Think buying property versus investing, using AI in retirement planning, and how much to save before buying a home.

A strong financial foundation with lifestyle ambitions

The featured case study follows a 34-year-old listener living with their partner. With a fully offset mortgage, $90,000 in income, $53,000 in annual expenses, and $22,000 in shares, they’re contemplating some big life decisions. They're wondering whether to have kids, take a year off to live in Latin America near family, and how best to prepare financially.

Their options include:

• Saving more cash
• Working overseas to partially fund their year off
• Debt recycling
• Buying an investment property in Australia or Latin America
• Simply staying in Australia and aiming for early Financial Independence

Dave and Hayden commend the listener’s position. "You're already in an awesome position," says Dave. "You could essentially semi-retire right now… and spend some time overseas each year as well."

Income and expenses: is there room to optimise?

While the couple's expenses are relatively modest, especially without a mortgage, Hayden suggests their $50k in annual spending might still be high for a couple with no kids. Vehicles and food are flagged as potential areas for trimming back.

Still, Dave is quick to note: "They’ve done an incredible job of being in a mortgage offset position by age 34. That’s pretty damn awesome."

As for income, the couple might benefit from exploring ways to increase earnings. Dave says: "If you're earning 45 grand per person while working full time, there's definitely a lot of upside there in almost every industry to earn quite a bit more than that."

Wealth is typically built in the early stages of life through income, as Hayden reinforces.

"Everything else is just garnish," he says. "If you have the capacity to get more income, then go for it."

Should they debt recycle or buy property?

One option they floated was debt recycling. But Dave cautions against it: "If you're going to be renting out your home while you're in Latin America, then the mortgage is going to be tax-deductible anyway. And since it's fully offset, you're probably not going to be paying any interest."

As for buying another property – whether in Australia or Latin America – Dave notes the complexities. Positively or neutrally geared Aussie investment properties are increasingly rare, given high costs and low yields. Meanwhile, buying property overseas could be profitable through something like Airbnb, but it introduces currency, legal, tax, and distance-related risks.

"I don't know how much debt you actually want to take on in another country while you're trying to enjoy a year with family," Dave says.

The kids question changes everything

If the couple chooses to have children, it could significantly impact their financial path.

Hayden acknowledges this fork in the road: "You could go down the route of debt recycling... but that would come at the cost of more financial stress, in the short term at least. Trying to get your money in investments as opposed to cash and offset will set you up for the longer term, typically better, by putting stress in the short term."

Dave echoes the importance of aligning finances with lifestyle.

"One parent is going to be at home for at least a while, possibly for an extended period, depending on how they choose to approach it," he says. "Then there's the expense side of things as well, which goes up. So, it's a little bit more pressure again."

Hayden adds nuance, suggesting a blended approach: "It's totally possible. If you had a $300,000 mortgage, consider investing half, or a quarter, or 80% of it. It depends on your circumstances and risk appetite ."

Latin America: dream lifestyle or financial drain?

Working during the Latin America trip could help reduce financial strain, though it depends on the nature of the work and local wages. Hayden shares from personal experience: "All the travel I've done in the last three years, I have worked on every trip because I could. It gave me financial security without hugely impacting the experience."

However, travel costs can be deceiving. Despite expectations, Hayden recalls: "I went to Chile and it was still one of the most financially difficult trips I've done. Inflation had hit, and a Big Mac Meal was around $20 AUD."

Renting out their Aussie home is a viable move, offering income while avoiding common tax issues. As Dave explains: "If you rent out your primary place of residence in Australia, you can still leave it as your primary place of residence. This should work as long as you don't declare something else."

A lifestyle-first approach to decision-making

Ultimately, Dave recommends a simple path.

"I'd probably just live off the cash, maybe look at some part-time work. Then, when you get back, if you choose to have kids, you'll be able to better decide where you live from then on," he says. "You can combine this with how you want to invest your money going forward, and how much risk you're comfortable taking at that point as well."

They finish with a fitting parting insight: "Spend more money on travel and experiences, not on things."

This distinction reinforces the FIRE philosophy: maximise life satisfaction, not possessions.

Should you use ChatGPT for retirement planning?

Another listener asks whether using ChatGPT to model retirement is a good idea. The AI had recommended a net real return of 2–4% post-inflation. Dave and Hayden are intrigued.

"ChatGPT is an exceptional summarisation tool of the internet," Hayden says. "You just have to be very careful using it for stuff you don't understand. I would never use ChatGPT ironically, for things I don't understand."

Dave agrees with the cautious optimism: "For very long-term share market returns since 1900... the average is about 5% per year after inflation. Going by that, you might assume 5% is pretty reasonable. And it could be."

While 2% is likely too low, Hayden and Dave conclude that using 4–5% for retirement planning is generally a sound and pragmatic assumption. It allows for caution without unnecessarily delaying financial freedom.

How big of a deposit should you save?

A 23-year-old listener earning $4,000 a week asks whether he should buy a home to live in or invest in property, and how much of a deposit to save .

Hayden went with a 20% deposit when he bought his place, calling it a "simpleton" approach. Dave, however, offers a different perspective.

"If saving a 20% deposit is going to take years, you might be better off buying with a 5% deposit, maybe a 10% deposit. Because in the meantime, while you're saving, the property market's not just staying stagnant, waiting for you,” he says.

“The property market is like the share market, where we can expect prices to go up over time."

They agree that buying your own home has added incentives for first-time buyers, like grants and stamp duty concessions. And even if you change your mind later, "You don't have to live in it forever. If you don't want to live in it anymore, you can move out and turn it into an investment property at that point." Buying property is a personal choice, so it's worth considering all options.

Keep it simple and live well

The common thread through each question and case study is clarity of purpose. Whether it’s navigating big life changes or fine-tuning financial levers, Hayden and Dave keep coming back to one core idea: build a life that works for you.

No matter your situation, this episode reinforces that personal finance is never one-size-fits-all. With the right attitude, you can come up with a plan that makes sense and feels doable.

We're always keen to hear your thoughts and topic suggestions, so hit us up at hello@aussiefirepod.com . Head over to Pearler for resources, calculators, and community insights that complement what we chat about on the show.

Until next time, keep dreaming big and living on your terms. Catch you on the next one, and happy long-term investing.

Dave and Hayden