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ChooseFI | Financial Independence Podcast

Mistakes Were Made

ChooseFI | Financial Independence Podcast

Jonathan Mendonsa & Brad Barrett | Choose FI Media, Inc

Careers, Business, Investing

4.85.2K Ratings

🗓️ 27 April 2026

⏱️ 68 minutes

🧾️ Download transcript

Summary

Even financially independent people have lost fortunes to bad investments, high-fee funds, and speculation. Brad Barrett, Alan Donegan, and Katie Donegan lay bare their most expensive mistakes—from Alan's 90% dot-com crash loss to Katie's near-£1 million fee trap to Brad's decade-long real estate nightmare—proving that catastrophic errors don't prevent you from reaching FI if you learn the right lessons. Key Topics Discussed [00:00:00] Introduction: Why Share Mistakes? Brad introduces the episode concept, explaining why sharing financial and life mistakes can help others avoid similar pitfalls on their FI journey. [00:03:30] Alan's Dot-Com Bubble Disaster Alan shares how he lost 90% of his £7,000 life savings investing in high-tech managed growth stocks right before the dot-com crash, and how this scared him away from stock market investing for 13 years. [00:08:45] Brad's Early Investment Mistakes Brad discusses investing in WorldCom and other 'top picks' that went bankrupt, plus getting sold a mutual fund with horrible loads, highlighting that there's no secret investment knowledge reserved for the wealthy. [00:13:20] Katie's High-Fee Fund Trap Katie reveals how a financial advisor convinced her to invest in actively managed funds with 2.71% ongoing fees plus 3% entry charges, a mistake that would have cost her and Alan £1 million if they hadn't discovered index investing. [00:18:50] Brad's Real Estate Speculation Nightmare Brad shares his biggest mistake: speculating on golf course community properties with interest-only loans right before the 2008 crash, causing over a decade of stress and significant financial loss. [00:28:15] Alan's Career Mistakes: The Book Incident Alan reveals how he wrote a book called 'How Not to Run a Business' about his boss on the company laptop, got fired, and learned about speaking truth to power and the importance of FI for workplace freedom. [00:32:40] Katie's Confidence and Comparison Struggles Katie discusses how her fixed mindset and comparison with others held her back from pursuing opportunities like netball and football, and how building confidence is as important as building net worth. [00:42:30] The Power of Saying No and Setting Boundaries The trio discusses the difficulty of being direct and honest, the importance of saying no, and how people-pleasing can create more problems than it solves. [00:48:20] Business Mistakes: Email Lists and Sales Fear Alan shares his regret about never building an email list for his successful business and letting fear of rejection prevent him from scaling, emphasizing the importance of owning your platform. [00:54:10] Salary Negotiation and Final Thoughts Brad discusses not negotiating his salary when changing jobs, the hosts wrap up with reflections on learning from mistakes, and encourage listeners to share their own mistakes in the community. Notable Quotes Brad Barrett: "You can make mistakes and you can make catastrophic mistakes, and you can pick yourself back up and you can move on with your life. You're stronger and you're wiser." Alan Donegan: "Your success in life is directly related to how many mistakes you can make as quickly as possible and learn from them." Alan Donegan: "Spend as much time building your confidence as you do your net worth, because it is so powerful in everything you do going forwards." Katie Donegan: "To rinse the value out of the mistakes, it's a lot more valuable if we share them. I would love you to get the value out of my mistake because I've already paid the price." Brad Barrett: "There's no secret. There's virtually no genius. Don't get caught up in wild speculative behavior." Key Takeaways Invest in low-cost index funds like VTI instead of actively managed funds or individual stocks to avoid high fees and poor performance Build an email list from day one if you're starting a business—don't rely solely on social media platforms you don't control Always negotiate your salary when changing jobs or getting promoted Wor…

Transcript

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0:00.0

Hello and welcome to Choose a Phi. Today on the show, we have my great friends, Katie and Alan Donagin.

0:05.4

This is a roundtable. We're calling it mistakes were made. Dot, dot, dot. I think what's fun about an episode like this is the three of us go around and we talk about a lot of the financial mistakes we've made in our lives, but also some life mistakes as well. I think what's

0:22.0

so interesting about this is you might look at people who are FI and think that it was just this

0:27.3

straight path up into the right and that everything was easy. That's very rarely the case, but yet

0:33.4

people reach FI and they live these wonderful lives. That makes this even more interesting.

0:39.4

And frankly, you can learn from our mistakes.

0:42.5

The wisest thing you can do is to learn from these mistakes.

0:45.3

And I promise we're going to keep on making these mistakes.

0:48.1

We all are.

0:49.3

And we can all learn together and move forward and enjoy our lives.

0:53.0

I think you're really going to enjoy this episode.

0:55.5

And with that, welcome to Choose That Five. Before we get started, I keep this podcast entirely

1:03.7

ad-free for two reasons. First, this is a Phi podcast and I don't want to promote products

1:08.4

that I don't want you to buy in the first place. And second, I really like the clean listening experience of a show where you don't have to

1:15.1

fast forward ads.

1:16.3

To keep it ad free, all I ask of you as a listener is the next time you open a travel rewards

1:20.8

credit card, go to choosefi.com slash cards.

1:24.3

And with that, onto the show.

1:29.2

Alan and Katie, it is good to see you guys. We just spent three weeks together in Richmond,

1:33.8

and you're in Istanbul now, right? Yeah, and time apart feels like much more elongated

1:39.5

after spending that concentrated time. Yeah, we miss you and we miss being in Richmond.

1:44.0

Yeah, that was great.

...

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