Early retirement without a fortune

[virgo]

retired

hiya

So i know this jolly couple whose husband retired at 47 I bought them coffee and had a good chat. They have been retired for 20 years

Retired the day their child turned 17 and started uni with his own part time income...

They live well on 20K net a year; this includes groceries for 180 a week. They live near a train station and make do without a car. No computers as they live near a library and make full use of the facilities. They walk everywhere (shopping is 20 min walk). keeps them fit i reckon...

PLUS they can travel overseas once or twice a year (depending on whether there are any special airtickets).

Health insurance (basic) is 180 a year

They have a big house ( worth 1.2 million i reckon) fully paid off.
They live solely on rental incomes from 2 small units.

They told me the income is probably quite close to pension income...i guess they could sell their IPs and give it to their child but they do not want to rely on the Government.

So this is the BASIC model i aspire to aim for; of course i would hope to achieve higher but it is good to hear from someone that that is the minimum for what i see as a pretty happy retirement
(as my mother says, you do not need to eat Lobsters everyday and all you need is a 6ft bed) - wise woman my mother......

 

[geoffw]

My parents retired in their mid fifties, thirty years ago, younger than I am now.

They had enough to set themselves up for overseas trips and a comfortable lifestyle. My mum got dementia, the care was all taken care of. She died in October, there was money for the funeral with enough left over for a donation to charity.

However although I could retire now, I don't aspire to be retired in the way my dad did. Retirement is about doing something, not about doing nothing with the odd trip thrown in.

 

[kathryn d]

I still can't get my head around people spending only $50/wk on food for two.

We are only three - and I've already spent around $300 this week at the supermarket. Granted, there was some on special Olay face moisturiser (a girls' gotta keep her looks), dog food and laundry products in this - but they do need to be bought regardless.

It's not like I'm extravagent - I buy veges/fruit in season, meat on special, use a lot of better quality mince and generic chicken, homebrand whenever the product is of similar quality (sugar, cling wrap, flour, milk etc) and we waste very very little.

I do splurge a little like bought Magnum's today as treats - but they were 50% off.

Lizzie,

This is in no way putting you down. Just trying to let you see how us "frugals" look at food. Your income is higher than most, so you dont really need to 'watch your pennies'. Not everyone has that luxury. I do it, because it really is a game for me. My thrill is in the bargain, and the ability to eat for a small cost. I do splurge, but on my terms.( I ate so many ice cream drumsticks a year ago, I don't even want to eat another )

How much did your actual groceries cost-less moisturizer, dog food, and detergent?

Frugal people can make their own detergent for pennies a load (I still haven't bothered going this route)...all you need is a bar of fels nappa/ ivory (any pure soap bar) washing soda, borax (and some people don't even use add this anymore). If you use water you get a liquid detergent, or keep it dry, you get powered.

What did your packages of meat cost and what cut of meat?
They should be around the $3-$9 range, and hopfully able to get at least 2 meals from them.

How much meat do you serve at each meal? Doesn't need to be more than the size of the palm of the consumer.
Do you buy whole chickens? Frugals would get 3 meals. One as a main, another in a casserole/stirfry and a soup.

How much are you paying for the container of juice? $5.99 or a cheaper brand for $2.29. If your family is eating fruit/ veggies each day, water will suffice and juice really isn't necessary.

Do you look for reduced veggie/fruit first? If you don't find any, what do you buy instead? We normally buy carrots, because they are always cheap and Rob loves them.

Some people hate leftovers. Pop in them in the freezer, and when you have enough make a soup, pot pie, casserole or integrate into the next recipe.

Do you shop at Aldi's. Much cheaper prices there.
The selection is limited, but is a great starting point.

I honestly can't imagine anyone spending $300 a week for groceries for 3 people, unless they buying a lot of packaged convenience food.

I came across this website the other day. She is a mother of 8, and they have gotten their spending down to about $100 month.(thru necessity) and she homeschools. How she finds the time to do it all, I am amazed.
Stockpiling her pantry, canning, gleaning, growing a garden, shopping in bulk, cooking everything from scratch ...

http://www.theprudenthomemaker.com/

 

[cimbom]

One thing I've found helpful is to make a fortnightly meal plan and then a shopping list for everything on there. Buy what is on the list only and some fruit/snacks. Then don't do any "top up" shops until the next fortnight. Repeat

We spend about $250/fortnight for everything using this which I'm happy with.

 

[Fifth]

I came across this website the other day. She is a mother of 8, and they have gotten their spending down to about $100 month.(thru necessity) and she homeschools. How she finds the time to do it all, I am amazed.
Stockpiling her pantry, canning, gleaning, growing a garden, shopping in bulk, cooking everything from scratch ...

http://www.theprudenthomemaker.com/

She eats so much better than I do for a fraction of the cost (and I mean a really small fraction). I feel so lazy. I really need to quit the prepackaged goods...

 

[kathryn d]

She eats so much better than I do for a fraction of the cost (and I mean a really small fraction). I feel so lazy. I really need to quit the prepackaged goods...

Yes, but her family eats things, many people wouldn't...such as powdered milk.

The prices are very low, in comparison to Australia. She goes to the supermarkets/ food markets and when they are having a sale, she orders in 200-300 lbs of the produce at an even lower cost (sometimes)

However, the show on ACA or TT talked about this very thing, so it possible to do it here.
It just might not be practical for a small family..but great if you are buying and sharing wioth other family or friends.

 

[Aaron_C]

Well duh if you order an entire pallet of produce you will get it cheaper per kg...but that is just not practical for most people. I for one don't want to eat potatoes every day of the week for 4 weeks just to finish my allotment.

 

[sanj]

it requires a major shift in thinking and approach but can be done

look at examples around the world, some of the worlds greatest food has come out of necessity/poverty. so much of the italian cucina povera approach, SEA, Indian, Chinese, mexican, brazilian etc cooking was created as a way to eat delicious, nutritious food on a very tight budget.

anyone buying scotch fillet, pre-packaged meals etc and crying poor needs their head read yet this is an extremely common occurance.

some of the tastiest meals ive eaten have been some of the simplest, it absolutely can be done.

sourcing of ingredients make a big difference too, buy whole fish from an asian fishmonger instead of fillets from the supermarket. buy whole beef fillets, rumps whatever and trim and portion them yourself. buy whole chickens like kathryn has suggested.

so many people eat absolute rubbish in this country and claim poverty as a reason, in a lot of cases it is ignorance and laziness.

 

[Fifth]

My household is a small one so it wouldn't be practical to buy in super vast quantities. That said, I buy way too many prepackaged foods and over the past 6 months our grocery bills have spiraled out of control. Most depressingly, our diet isn't that great. We could eat much more healthily and cheaply if we 1. ditched the prepacked foods and 2. bought in slightly larger quantities. Growing our own vegetables would also help, but one step at a time!

Great post, sanj. The laziness aspect definitely applies to me. There's this misconception that eating cheaply means sacrificing taste. Pssh! Prepackaged food doesn't taste great, especially the frozen stuff which has been constituting almost all of our dinners.

 

[lizzie]

I don't buy a lot of prepackaged - and hope to reduce the bill when we get the vege garden up and running ... and meat cheaper when we put the freezer in the new house (no room here).

Yep - a roast chock does 3 meals (roast, cold salad, soup). I do buy a few tinned goods like diced tomatoes, coconut cream etc - but most meals I make from scratch. We usually eat around $7-10 worth a meat a night between the three of us, so that does add up, but hubby gets a lunch for the next day out of every dinner.

I did buy generic corn chips ($1.50) and tinned tomatoes (90c) to make nacho's tonight with spiced mince ($6.50+$2), salad, cheese and natural yoghurt - last night we had on special T-bone steak ($10), cheese stuffed potatoes and leftover salad - night before was spagetti bol mince ($6.50), tinned tomatoes (90c), pre-packaged spag bol sauce ($2), garlic, chilli, homegrown cherry tomatoes, capsicum, wholemeal spaggetti and homemade salad ... nothing posh or extravagent but healthy and yummy ...

So perhaps $12-15/dinner meal for 3 ... 15x7= $100/wk without even trying - add in breakfast/lunch/snacks/dog and cat food/bathroom products/pantry basics (salt, flour, sugar, sauces, butter, bread)/tea and coffee etc ...

... oh - I did buy $20 worth of new socks for junior and myself - 3x3 packs

 

[devank]

I don't buy a lot of prepackaged - and hope to reduce the bill when we get the vege garden up and running ... and meat cheaper when we put the freezer in the new house (no room here).

I don't think the veg garden would reduce any costs but definitely more satisfying and healthier. If you need to put a new freezer then energy cost of that might eat any savings on the bulk meat as well

 

[The Y-man]

M Most depressingly, our diet isn't that great. We could eat much more healthily and cheaply if we 1. ditched the prepacked foods and 2. bought in slightly larger quantities. Growing our own vegetables would also help, but one step at a time!

.

You could do 1 without necessarily doing 2 and still save money.

In prepacked foods, you are paying for:

• Labour (preparation)
• Profit for the manufacturer
• Packaging
• Other additions (preservatives etc)

We don't buy in bulk, although as per Aaron's nightmare, we do tend to get the occasional weeks where it is beetroot every day, or lamb every day....

The Y-man

 

[The Fence]

I don't think the veg garden would reduce any costs but definitely more satisfying and healthier. If you need to put a new freezer then energy cost of that might eat any savings on the bulk meat as well

I dont think Lizzie said a new freezer...she said put the freezer in the new house.

Anyhow...most folks have a freezer no?

A freezer full will run more economically than half full as the frozen goods tend to keep the freezer colder for longer.

We always buy multiples of anything when it is on special.
Cartons worth when half price.

Picked up 20kg bags of chook feed today, 6 bags for price of 5.
Brings the cost of our home grown eggs to $2/doz as they are free range and dont eat near the bagged feed they would if continually locked up.
6 months supply.....
Not gunna stop feeding the chooks are we....?

The wife gets antsy when I load up the cart with multiple bags of dunny paper rolls though...!

 

[Peter 14.7]

I partially read it. I found ideas like outsourcing jobs overseas very difficult to apply to a Subway.

There have been several authors espouse the idea of a passive income stream. Those authors have achieved this by writing books on how to achieve a passive income stream.

Agree.

It is always a question mark about property experts, CFD experts, Exchange Trading Experts, that they sell courses, books, services, advice on how to be financially independent for a fee? When asked they say "we only do it because we want to share knowledge" yet why charge if you are financially free.

Thankfully some Experts don't charge like, this sites owners, Jan and Ian Somers. Retired on property investment and provide all running costs etc of this site and access for free with no ads.

Regards Peter 14.7

 

[Peter 14.7]

I dont think Lizzie said a new freezer...she said put the freezer in the new house.

Picked up 20kg bags of chook feed today, 6 bags for price of 5.
Brings the cost of our home grown eggs to $2/doz as they are free range and dont eat near the bagged feed they would if continually locked up.
6 months supply.....
Not gunna stop feeding the chooks are we....?

The wife gets antsy when I load up the cart with multiple bags of dunny paper rolls though...!

Wow, that a good price on feed. Which brand and supplier. $2 for organic free range versus $6 plus is good value

We also get prime aged black angus beef in a pack of 10kg from friend mother for $15kg bulk. Farm slaughter with no chemicals, stress etc.. it is excellant beef. Pack is mince, sausages, steak, roasts, fillet, etc. WIth good mince around that price we are saving 25% on the lot and 50% on the choice cuts alone.

Peter

 

[The Y-man]

Wow, that a good price on feed. Which brand and supplier. $2 for organic free range versus $6 plus is good value

Peter

I thought it wouldn't be organic free range (equivalent uncertified) unless the feed was certified.... (many feed contain imported cheap GM corn and grain etc)

The Y-man

 

[starter]

I'm another one who can't speak highly enough of the lifestyle advantages of moving overseas. I eat out 3 times a day, 7 days a week and could easily do it for $50 for my partner and I for the week.

 

[Peter 14.7]

We live the summer in canada, and summer in Australia. Other than our flights, and the costs of of vehicles ($6k each average) we live on $1000 a month for the 2 of us.

We started in Melbourne at the end of September, and making our way to Townsville, then to Darwin, and then back to Tennant Creek for mid Nov. The owner invited us back at the roadhouse, because he needs someone he can trust with the water pumps so they can travel OS and visit family.
After they return, we have no clue where we will go. We have the map of Australia in the camper van, and we color in where we have been.This is our third year of "retirement".
We take advantage of free camping areas and showrs whenever possible, and go to camping grounds when not.

We have our rentals in Canada, and this year has been the year from hell, as far as getting tenants to actually pay their rent. Thankfully we are naturally frugal, so it doesn't really affect us...other than making me anoyed at the tenants.

When at the campground last night, watching the parrots playing in the trees, by the river, in sunny warm Queensland, Rob wondered how many others were making homemade chicken soup with their chicken carcass on the stove?
Later today we are going to a Pioneer Heritage Village.

For many this may not seem like a retirement worth having, but at 48 & 52 years old, I think it is pretty great. I don't see us doing this for very many years, but I bet I have seen more of Australia than many.

Visited the grave of my great great grandmother in Maryborough, Qld this week. My father would be pleased.

Like someone said, it doesn't take a lot of money to retire. The simple things are great too.

To each, their own

Excellant Lifestyle if you ask me.

I dont use the word retirement as it assumes you are steeping down from life.

Regards Peter

 

[Peter 14.7]

She eats so much better than I do for a fraction of the cost (and I mean a really small fraction). I feel so lazy. I really need to quit the prepackaged goods...

Packaged goods are a serious killer of spending and often a lot less heathy.

My best find POPCORN

Instead of going to the picture, my daughter wife and I do a Friday Night Pizza and Popcorn Night. She is allowed to invite a friend or two and we make gluten free (both wife and DD are gluten intolerant) pizzas and popcorn. Movies are existing so little cost there.

I guesstimate pizzas cost about $5 to make so $10 total and we do NOT do budget ham, cheese etc... The popcorn costs $1.50 for small package and which only 20% makes a huge bowl of popcorn.

Overall costs would be popping corn $0.30 butter say $0.30, olive oil say $0.20 and sugar et all so lets say another $0.20 so only $1 for popcorn for all, fresh and hot. So we have healthy pizza, popcorn and movies for two adults and three kids for $11. One kid ticket alone is $11. Overall would be over $100 plus...

And kids love popcorn. Do not buy the pre-packed microwave stuff but the real popping corn usually hidden away in Coles so feel free to ask.

Regards Peter

 

[Peter 14.7]

i
sourcing of ingredients make a big difference too, buy whole fish from an asian fishmonger instead of fillets from the supermarket. buy whole beef fillets, rumps whatever and trim and portion them yourself. buy whole chickens like kathryn has suggested.
.

Agree.

I get three meals from chicken. Main, Rissotto and Stock for Soap or other and feed scraps to our own chicken for eggs. PS they dont know it is chicken as i tell my wife and they are natural cannibals anyhow

Often our COles after8pm dorps the price of unsold stick cooked around 50m that day to $5 per chicken! Buy a few , remove the meat, plan meals or freeze, turn bones into stock. BINGO!

Same for fish and beef about to go over date, freeze or slow cook and it is all good but I dont like Coles beef compared to local real stuff as we live in the bush.

Regards Peter