Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I agree, but this is why I'm not trying to get by on the skin of my teeth.
I could say - I want to retire on $10,000 because my expenses are only $9500.
That would be foolish by cutting things way too close.
However, I'm saying I want to retire on $20,000 and my expenses are $10,000.
I have a lot of wiggle room and I'm asking why not?
You could and can do it, but you will be living on some luck. Save lots of shamrocks.
EDIT: FWIW, my grandmother lived on $1200 S/S a month with just about everything you listed. She did fine for years until she became bored and had to sell her home for entertainment money.
While I'm in full agreement with the OP's reluctance to place himself firmly "on the treadmill", I have to point out that most of us succumb to the need for a life partner sooner or later, and since our spouses often tend to hold different economic views, and children, by nature, can't accept the discipline inherent in a life of frugality and self-sufficiency, even the best-laid plan has a lot going against it.
A better plan might be to investigate alternative economic lifestyles; by the age of 25, I had come to the conclusion that I was simply too independent-minded to get very far in "corporate life". There followed a 15-year stretch in the certitude of a unionized factory job with a small-business sideline; later, a series of roles, some of them in other parts of the country, including one more-or-less "off the books" -- running the finances and governmental-relations matters of a foreign-owned hotel in return for a modest stipend and living quarters.
Looking back over those years, there were times when I felt I'd "thrown it all away". but as I approach my 65th birthday next summer, I know that I'll never face the harsher regret of never having investigated the "roads not taken" --- and given the prospect of choosing between uncertainty and "security at the price of tedium", I would opt for the latter.
Last edited by 2nd trick op; 12-30-2013 at 11:05 AM..
while I'm in full agreement with the OP's reluctance to place himself firmly "on the treadmill", I have to point out that most of us succumb to the need for a life partner sooner or later, and since our spouses often tend to hold different economic views, and children, by nature, can't accept the discipline inherent in a life of frugality and self-sufficiency, even the best-laid plan has a lot going against it.
a better plan might be to investigate alternative economic lifestyles;
It seems that the trick is finding someone that sees the appeal or at least isn't opposed to a non-wasteful lifestyle. A lot of intelligent women get it, but I can understand how it may add some difficulty to the search.
With most women, "I live good on $20k" doesn't go over nearly as well as "I have a 3500 sq ft home and a new BMW to carry you around in[omitting living paycheck-to-paycheck]"
Kids seem to be the easy part because they have no control over finances. I had no idea how much money my parents had as a kid.
What exactly do you do that pays you $200,000 a year at age 24?
...
He is one of society's bloodsucking parasites.
He gets people and commercial entities indebted beyond their capabilities, adds on disproportionate lending fees, adds on disproportionate penalties, adds on every other fee that he can dream up, and jacks up the interest rate because the mark is now in a higher risk pool. He cackles in the background, rubbing his hands, praying for the moment that the person or entity cannot scratch up the loan-and-fees payment within the 30 day grace period. On the 31st day, he files foreclosure and tacks on additional fees, interest and penalties to make sure that the person and entity cannot cure the 'default' he himself has created by ballooning the original loan amount to twice its size with the imposition of fees, penalties and jacking up the interest rate to punitive levels.
The minute he can get away with it, he takes the collateral while continue to harry the targeted person or entity. He resells the collateral, indebting the next in the string of marks, while continuing to squeeze the original person or entity for what they still "owe" him.
He will repeat this process three or four times until the collateral is worthless. Then he will call one of his affiliated partners and have them set a warehouse fire. Then he will collect the original price of the collateral from the insurance company, who benefits from the income stream of his continued use.
Listen, Eddie, I have no doubt that an individual can live well on a modest income such as yours (and you sound frugal), but I'm not going to read 10 pages of posts to ascertain how you're receiving that $20K annually since you stated that you don't particularly care to do any of the things that one generally has to do when employed.
It seems that the trick is finding someone that sees the appeal or at least isn't opposed to a non-wasteful lifestyle. A lot of intelligent women get it, but I can understand how it may add some difficulty to the search.
With most women, "I live good on $20k" doesn't go over nearly as well as "I have a 3500 sq ft home and a new BMW to carry you around in[omitting living paycheck-to-paycheck]".
It doesn't have to be either/or. BMWs are extreme if you are in debt and retiring so young on 20k/yr is extreme in the other direction. Most people don't have BMWs or retire on such a low income. It doesn't have to be full corporate and full debt or nothing. Some of us can put together a life with a good income while also enjoying life and taking time to travel or do the things we like, without surrendering to the treadmill/debt wheel. Your way of doing it seems extreme and all or nothing. For me that 20K passive would be extra income over my earned income, or a cushion should I lose my job or decide to change jobs. Making more money doesn't mean getting in more debt, it means more freedom to do things I like and to save more.
I can't believe the contempt that some posters have for the OP. Our society would be much better off if more people valued their time and actually took the time to think about what it is that makes them happy. The OP is probably more motivated than most people that get up everyday in a drone-like state to try to move up the Corporate ladder and buy the newest car or phone.
I'd mooch from the government for health care, since that's exactly what they have legislated that they want people to do. I'm no fan of being dependent upon government but it's obvious that intelligent conservatives such as myself are on the losing side of this battle. If I cannot win and see the US healthcare system get reformed in a sensible way that actually reduces costs rather than masking them with endless subsidies, I am at least going to hasten the demise and complete overhaul of the system by helping to suck the current system dry. I've seen countless people who have no money find ways to get health care. I'm sure I, with my brains, could figure it out as well.
I know, right? If you can't beat 'em, join 'em. Since they are hell bent on redistributing wealth, I'm starting to wish they'd just throw all the money in one big pot and divvy it out equally, no matter profession or work ethic or even whether we work. Heck, give me my share of that and I'll quit working too! Why should I work if I can get the same amount for doing nothing?
I can't believe the contempt that some posters have for the OP. Our society would be much better off if more people valued their time and actually took the time to think about what it is that makes them happy. The OP is probably more motivated than most people that get up everyday in a drone-like state to try to move up the Corporate ladder and buy the newest car or phone.
What I am motivated by is having CHOICES. I don't want to be at the mercy of whoever I am getting that $20,000 a year from. Like someone else said, that $20,000 "passive income" would be in ADDITION to my earnings. I really think it's disingenuous of the OP not to say what the source of income is; I mean, if it's welfare he's calling passive income then that's just wrong.
Anyway, if I am getting $20,000 a year from a certain source, how do I know that source is always going to be there? How do I know $20,000 a year is going to always be enough? It just seems like the OP is too passive and not playing a role in his own financial wellbeing if he's content to live on $20,000 and hope the source never dries up. Seems kind of like playing Russian roulette to me.
If you live car free in an inexpensive city such as Pittsburgh, in an inexpensive small home with fairly low maintenance costs and utility bills, and you have that home paid off, then you can probably live well on $25,000 a year (maybe $20,000), assuming you receive healthcare from either the government (Obamacare) or from a private corporation. You'll have no car payment, no car maintenance/repair costs; you'll have no mortgage payments to make. Health insurance will be provided, so you'll only have deductibles, premiums, and co-pays, which shouldn't amount to all that much on that relatively low income level. You will, of course, have food, homeowner's insurance, home maintenance and repair, utility bills, other expenses like internet service, and real estate taxes to pay. Even with all of those expenses, you'll still be able to put away a healthy sum each month into a "rainy day" fund. Or, if you like, you can consistently invest it. Either way, you'll accumulate money, and when something unexpected does occur--and it will, as it always does--you'll be okay.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
