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Location: Formerly Pleasanton Ca, now in Marietta Ga
10,348 posts, read 8,567,170 times
Reputation: 16693
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Quote:
Originally Posted by eddiehaskell
The $5k for the roof simply comes from savings that grows yearly as I only live on about $10k/year. 3 years with no big expenses equals $30k + whatever return. Let’s $35k. Pay for the roof and now I have $28k...2 more years without big expenses and I have $48k + whatever return. So on and so forth.
Basically making $13-14k/year and I could pay all my bills and save $3-4K/year (what a lot of people are lucky to save toward retirement/whatever per year. It all starts with the housing cost/rent approaching $0/month.
You may have posted it on the other thread, can you list your budget for living? Might be a hassle to write it all out though.
You may have posted it on the other thread, can you list your budget for living? Might be a hassle to write it all out though.
Off the top as of now:
$20/internet
$20/tv service (100+ channels)
$120/Power
$70/water and sewer
$40/car insurance
$50/property tax
$$40/home insurance
$30/gasoline (50 mpg)
$0 cell phone (1 yr free Sprint...was paying $17 month for 5gb unlimited talk and text)
That’s $390/month then add in food/insurance. Throw in a few bucks for clothing - I only spent ~$300 for the year of 2018 or $25/month.
This is most of the required stuff but as you can see, a person could live on $10k with some splurging thrown in. Pretty darn good for $11-12/year. Really good on ~$13-14k with enough money to add substantially to savings.
Now here’s where things get REALLY good. If the person is in a relationship and their partner makes at least $20k/year, wants to work like normal people and agrees to pay half of shared expenses....well, they both live like Kings.
For this family unit, you have a yearly income of $40k.
Expenses go up a little supporting two people, but stuff like internet, TV, power, water, property tax, groceries (buy in bulk, two people so cook more), gasoline (traveling more together so one car), possibly health insurance, etc, get cut in half. I think most people living together should try to split expenses via time or money (for example a mom staying home with 3 kids is probably worth $40k “to the family” if a few of the kids are under 4 years old).
Let’s say expenses for the couple are $15k. $40k - $15k = $25k left over.
At $15k/year, per person living expenses are $7500/yr.
Throw in $5k for the couple to entertain themselves (3-4 decent vacations) and they are living good on $20k worth of expenses per year. $20k/year left over is going to the retirement/unexpected/whatever fund. Maybe one year they want their $5k entertainment budget to be $10k for a very nice 3 week vacation to somewhere special. Well, that extra $5k comes out of the $20k left over after required expenses. You don’t want to spend all that $20k though because you want to get richer and richer and move up in society (albeit slowly). Stay humble and never think you’re better than anyone on your way up.
Cliffs:
Couple, $40k income, no mortgage/rent, no car payment, sorta working/middle class existence, not too materialistic = defeat the matrix, live good, do what you want with your time, screw alarm clocks, no boss, no annoying coworkers, no more driving to work, no more repetitive bull spit...unless of course you’re one of those that absolutely love what you do for work and would do it regardless. For those people this plan means nothing...like the cop who just LOVES being a cop. For those that can’t convince themselves their job is what they love...this plan may come in handy.
But until you provide specifics in terms of how you retired so young (and specifically if you've ever gotten any kind of public assistance), I don't think that for me there's anything much to say.
No harm, no foul. That's just me.
But until you provide specifics in terms of how you retired so young (and specifically if you've ever gotten any kind of public assistance), I don't think that for me there's anything much to say.
No harm, no foul. That's just me.
How I did it is irrelevant. Maybe you could copy me. Maybe you couldn’t. Maybe I’m a idiot genious. Who knows.
Point is - retirement can start becoming a possibility if one has say $10k/year coming in and a home/car paid for.
$20/internet
$20/tv service (100+ channels)
$120/Power
$70/water and sewer
$40/car insurance
$50/property tax
$$40/home insurance
$30/gasoline (50 mpg)
$0 cell phone (1 yr free Sprint...was paying $17 month for 5gb unlimited talk and text)
That’s $390/month then add in food/insurance. Throw in a few bucks for clothing - I only spent ~$300 for the year of 2018 or $25/month.
This is most of the required stuff but as you can see, a person could live on $10k with some splurging thrown in. Pretty darn good for $11-12/year. Really good on ~$13-14k with enough money to add substantially to savings.
Now here’s where things get REALLY good. If the person is in a relationship and their partner makes at least $20k/year, wants to work like normal people and agrees to pay half of shared expenses....well, they both live like Kings.
For this family unit, you have a yearly income of $40k.
Expenses go up a little supporting two people, but stuff like internet, TV, power, water, property tax, groceries (buy in bulk, two people so cook more), gasoline (traveling more together so one car), possibly health insurance, etc, get cut in half. I think most people living together should try to split expenses via time or money (for example a mom staying home with 3 kids is probably worth $40k “to the family” if a few of the kids are under 4 years old).
Let’s say expenses for the couple are $15k. $40k - $15k = $25k left over.
At $15k/year, per person living expenses are $7500/yr.
Throw in $5k for the couple to entertain themselves (3-4 decent vacations) and they are living good on $20k worth of expenses per year. $20k/year left over is going to the retirement/unexpected/whatever fund. Maybe one year they want their $5k entertainment budget to be $10k for a very nice 3 week vacation to somewhere special. Well, that extra $5k comes out of the $20k left over after required expenses. You don’t want to spend all that $20k though because you want to get richer and richer and move up in society (albeit slowly). Stay humble and never think you’re better than anyone on your way up.
Cliffs:
Couple, $40k income, no mortgage/rent, no car payment, sorta working/middle class existence, not too materialistic = defeat the matrix, live good, do what you want with your time, screw alarm clocks, no boss, no annoying coworkers, no more driving to work, no more repetitive bull spit...unless of course you’re one of those that absolutely love what you do for work and would do it regardless. For those people this plan means nothing...like the cop who just LOVES being a cop. For those that can’t convince themselves their job is what they love...this plan may come in handy.
Gee, where the heck do you live? Ill gladly move there if not in frozen tundra like i already live in.
Cable (100+channels ) + internet +applicable taxes is $110.
Power (budget payments) $175. We are actually a little ahead as we cut back on usage.
Water sewer...we pay $90, thats the minimum charge as we dont use up the minimum gallonage.
$140/m car insurance, 2 vehicles( we ARE in NY).
Property taxes are $3k a year. You do the monthly math.
$400/yr home insurance , do the monthly math.
Our gasoline bill is $300/m.(2 vehicles and we live in the city).[ one gets 40mpg, one gets 20, but is used far less)
$150/m 5 gigs cell 2 phones, my OH s conpany requires a certain ( nameless here) carrier for punching in and out and using field tablet ( tablet provided)
What else you got there? That $760/m right there, almost a grand a month.
Mortgage takes it well over a grand. Own 1/2 the house in just 3 years, with only 10% down.
Im not even including food and tp, or other household stuff.
In your other thread I believe you asked people if they wanted to join you.
Well, before I can answer that, let me know how you did it. THEN I can answer that question.
Without specifics, can you categorically state that you've never received and do not receive any public assistance of any kind?
Gee, where the heck do you live? Ill gladly move there if not in frozen tundra like i already live in.
Cable (100+channels ) + internet +applicable taxes is $110.
Power (budget payments) $175. We are actually a little ahead as we cut back on usage.
Water sewer...we pay $90, thats the minimum charge as we dont use up the minimum gallonage.
$140/m car insurance, 2 vehicles( we ARE in NY).
Property taxes are $3k a year. You do the monthly math.
$400/yr home insurance , do the monthly math.
Our gasoline bill is $300/m.(2 vehicles and we live in the city).[ one gets 40mpg, one gets 20, but is used far less)
$150/m 5 gigs cell 2 phones, my OH s conpany requires a certain ( nameless here) carrier for punching in and out and using field tablet ( tablet provided)
What else you got there? That $760/m right there, almost a grand a month.
Mortgage takes it well over a grand. Own 1/2 the house in just 3 years, with only 10% down.
Im not even including food and tp, or other household stuff.
Southeast. I don’t really do anything special to keep expenses low.
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