Early retirement extreme

[bob246810]

Just wondering if anyone has come across this blog, or the general concept of "extreme" early retirement:

www.earlyretirementextreme.com

Or better yet, anyone actually living this sort of lifestyle?

Seems like an interesting idea, although it really just seems to boil down to extreme cost cutting. Not sure I could deal with all the suggestions (especially the part about taking cold showers and having lentils for dinner every night).

 

[kathryn d]

I don't think most people would be comfortable with this extreme lifestyle.

Everyone will do what is important to them.

For some, eating once a week, at a high end restaurant would be frugal, especially compared to their friends or family.

For others, cutting back on take way coffee would be frugal.

How my husband and I choose to live, to many on Somersoft, we would be regarded as tightwad, cheapskate etc.

After watching Extreme Cheapskates (tv show) we are not even close.

How we live in our personal lives is very different to how we treat our rental properties. For our properties we buy new..but basic. We used to buy used appliances for our rentals, but the older models (1970's) have come to the end of their lives, and secondhand models of new appliances, are garbage.

But yes, we live very happily on very little money...about $1000 a month or less...on average.
We live a minimalist lifestyle..it is very freeing

 

[Terry_w]

Yes, I came across it about a year ago even bought the book - which is actually heavy going so i have never finnished it.

It is a great concept - retire quicker by radically cutting back expenses - the less you spend the quicker your retirement will be. It is up to you with extreme you want to be.

 

[Nattl3s]

I have read a bit of early retirement extreme but I prefer Mr Money Moustache. While i don't live a frugal lifestyle, I certainly don't spend like theres no tomorrow. Many of the concepts in these forums are interesting and certainly put things in perspective. With access to easy credit, many people don't know how to live within their means anymore, let alone save.
In essence the concept as I understand it is - working towards financial independence which you can achieve sooner if you spend less. Thinking about buying things in terms of "how much longer/extra do I have to work to buy item X" and then deciding if its worth your time.
Cheers nat

 

[WillG]

The concepts in these blogs are good however you need to find your own way.

Only buy stuff you NEED, sell all the stuff you don't currently use, downsize your house and you can probably retire NOW!

 

[WattleIdo]

I too bought the book and haven't read it all. Kind of reminds me of being a poor uni student and traveller. You just get by with what you can afford and be happy.

I find I can do this tight wad stuff when I have more time and I'm not tired - ironic really.

He asks some good questions e.g. what type of accomodation do you really need. Here I am in a huge house with three rooms that I don't even use - four animals - 2 on the bed and 2 next to the bed.

It's a good book because it's confronting. But hopefully my extreme days are over.

Impressed with Kathryn's budget!

 

[HomePage]

There are a few good early retirement forums out there, ranging from the super frugal ERE website to Mr Money Mustache (MMM) in the middle and early retirement org at the more consumerist end of the spectrum. It was the MMM website that made me realise that my stash was already big enough to support my current spending level, and then some, for the rest of my life, so 8 months ago I entered the world of early retirement. It's certainly not for everyone, but I certainly have no regrets at this stage.

 

[Terry_w]

I recall reading the the ERE man lives in a caravan... That is a bit too frugal for me.

 

[kathryn d]

Impressed with Kathryn's budget!

We live in 2 countries...4 months in Canada, where our rental properties and children (adult) are, and then 8 months in Australia where we are on vacation.

In Australia, my husband finds it relaxing to be a maintenance man at a Roadhouse, just outside of Tennant Creek, NT. (have been there 3 years)

We are provided with all our meals and given a motel unit to live in. As a bonus, they also pay him. We are there about 4 months a year.

The rest of the time we house sit for other people..in turn they provide us with a house and all utilities covered. We look after their animals.If they have chickens and a garden..bonus food.

I find this to be the most fun while in Australia.
We get to see how how other people live. Everything from living in a straw bale house,off grid, to a hilltop house caring for orphaned wallabies (bottle feeding them).

We own a van, and camp in it when we are travelling. We use a combination of free camping and paid camp grounds..depends on where we are.

In Canada, we bought a 5 unit apt house. It's very much like co-operative housing. Our 4 adult children and us, each occupy a unit. We paid for our part upfront, and the kids pay the mortgage. We share the expenses such as cable, local phone, internet, maintenance,water, insurance and property taxes.


I think most people will find, that after their house is paid off, living on a small budget is easy.

We are very easy going. Going to museums is fine, but after 5 or so..really..you've seen them all. Same with zoos.
Homesteads are still fun to view.

We like to cook our own meals, but still enjoy the occasional meal out.

While in Canada,we are foster parents for the SPCA and at the moment we have a momma cat and her 3-3 week old kittens, and she has adopted the 5 week old orphan, that was also placed with us.
SPCA provide all the kitty litter and food..we provide the love
They also sleep under our bed at night.
When they are old enough for adoption, they go back.

So, I'd suggest, find out what is important to you, and figure out how to get it for free/ low cost.

Our vehicles are 2005 & 2006.
Nothing fancy, but exactly what we need...and paid for.

 

[Gockie]

Ohhhh Kathryn... Now I really admire your lifestyle! Thanks for sharing!

 

[redwing]

Isn't the author now un-retired and employed as a "quant trader" in Chicago?

I think he is a very smart person with some interesting, if not sometimes odd views

 

[Kristine..]

Hedonic Adaption

I really liked Mr Money Mustache reference to Hedonic Adaption

We all experience that euphoric response to change, the change we experience as beneficial to us, whether that be a great night out or a permanent change such as a 'better' job or a new car or house etc

But is all too soon becomes common place and our temporary elation sinks back to our usual level of happiness

No: 2 Son recently settled on a vineyard, at 26 he achieved what had been his goal for when he was 30. Great excitement but now, with the land to pay for and the building permits taking an extraordinary amount of time, he is feeling rather flat.

No: 2's Main Squeeze recently settled on an apartment she bought Off The Plan back in June 2011. Great excitement after waiting more than 2 & half years but now, instead of saving the mortgage payments she is paying the mortgage payments. Not quite the same thing.

So this thread comes at exactly the right time: The Hedonic Adaptive Response means that they have had the elation, had the deflation, now can get back to what had become normality for so long, being living not just within their means but slightly below what could have been their discretionary income which thrift enabled them to achieve such great things!

Mike and I have always used debt to keep us within the straight and narrow confines of the shortest route to reach our goals. It may sound like a backwards tactic but it is all about commitment and if we hadn't had that / those monthly commitments we wouldn't have achieved anywhere near what we managed to do on very ordinary incomes over a thirty year period.

Thanks for the link, I shall make Mr Money Mustache my reading for the week

xxx
Kristine

 

[Richard Feynman]

I shall make Mr Money Mustache my reading for the week

xxx
Kristine

Might require a shade over a week.

But it's worth the investment.

 

[kathryn d]

Might require a shade over a week.

But it's worth the investment.

I agree.
Lots of information there.