Early retirement without a fortune
- Thread starter oracle
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I agree with your comments. 100k pre-tax per year for a single person is the bare minimum to be truly comfortable. It is good to have some excess for the "just in case" scenarios. From my budget posted previously, it has been pointed out to me that I am living on about 60k per year at present.
I don't wish to shop at Aldi and I almost never look at the price of groceries before purchase. I fill my car with petrol when I want to and never wait for "discount" days. I would hope that this could continue in my retirement.
I consider 100k per year as being able to live a comfortable yet frugal lifestyle. On 100k per year, one cannot live on the Sydney harbour. One cannot drive E class merc. One cannot fly business class regularly. One cannot send children to private schools. Therefore, lifestyle is still very frugal without any restrictions.
I find that eating out for a single person costs about $25 per meal. This would usually include an entree and a main and a drink at some average Asian restaurant. Eating out by myself , I tend not to frequent upmarket restaurants as the atmosphere is too awkward for a solo diner. I tend to favour places which serve rice and noodle dishes.
I want to retire in New York City (or even more there before retiring 
). About 500k will get you a pretty nice apartment in a great neighbourhood, you don't even need to worry about a car or commuting as their subway system is amazing, there is so much to do and see and everything is open late. So many nice places in the US, Europe and surrounds that are just a quick few hundred dollars flight away as well. You can't buy that kind of lifestyle in Australia
). About 500k will get you a pretty nice apartment in a great neighbourhood, you don't even need to worry about a car or commuting as their subway system is amazing, there is so much to do and see and everything is open late. So many nice places in the US, Europe and surrounds that are just a quick few hundred dollars flight away as well. You can't buy that kind of lifestyle in Australia 
What a happy story Peter. I bet your daughter was the key (if not only) reason for this change.
In a round about way, yes. She was the key.
What happened was atypical of those who do a career/life change. A major pattern interrupt occurred. Wife had a major car accident that caused a rethink
FYI
Wife was committed sales executive. We lived the DINK life, we had been married 15 years no kids no issue. Then Wife had car accident (hit from behind whilst stationary). It took a 9 months physical and mental recovery but her back was and is stuffed.
The 9 months of rest made her realise the life she was leading was rush rush. And the fact her employer went from supportive to aggressive to dismissive made her realise her job was not the be all and end all. So she left her employer, as they were unwilling to work in with her new driving limitations
She was of course well respected in her industry and still uber dedicated and thus immediately head hunted to local competitor who were willing to set up a home office and reduce her driving. She started in the new year with company car Merc SLK and a planned trip to Spain and Italy in the first three months, all the trappings of success etc... but something had changed. She was ho hum about it all. Then we found out she was pregnant. For her that was a good enough excuse to admit what she was really feeling ....that at almost 40 she was over work and needed a new challenge.
Now don't think she was clucky, in fact the opposite, if anything peeved at the situation but approached the pregnancy like she did with all things, organised efficiency (Her ascent in to motherhood is an entire new thread but let me say the mummy hormones conquer all.)
Myself I always had the goal of not working myself to a wealthy and early death. I worked to live, not lived to work. So I took her feelings as a sign and pushed hard for change. Sold up and moved ot country VIC in some modern day Green Acres episode. Was hard at first with me away and wife outside of comfort zone and a new mum but 7 years later she agrees the decision was the best thing to do. Change is hard.
My wife was caught, like some people, in believing her work identified her as a person completely where it was only a part of who she was. She was also (like me) been brought up to never leave a good job and the security of income for alturistic intents. Her father worked until he was 70 and counted every penny. When her employer hurt her she took it bad.
Now she is a wonderful mother and loving every minute of it. I can say her joining our company was the reason for the growth we have had as I was struggling before. She has a german heritage is uber organised and efficint so all the paperwork biling, wages is her. Myslef , not so much
So that the story. It is scary to gear down. I know we would never have given up her $100k income and benefits with the accident. We had been told, work and dave hard for that rainy day. But we did and it worked for us.
Regards Peter 14.7
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Thats one of my worst fears, that I accumulate two mil and then kark it. It would be good to have time to enjoy the fruits of my labours. If this negative scenario happened, then I am not sure who benefits. I guess that maybe it is more about the journey than the destination.
Peter, just wanted to say I have enjoyed all of your posts on this topic, well done for making such a big change for the benefit of your family and the quality of your life, and thanks for sharing your experiences.
Peter, thanks for sharing your story. I enjoyed reading it. I am at a stage of my life where I am enjoying more living than working and travelling more. The south of France is great for 3-6 months of the year especially the variety of food.
YLC
If you have no dependants or close relatives, set up a testamentary trust that will support charities and not-for-profits if you die.
Your name will continue to support the good work of others for ever!
If you have no dependants or close relatives, set up a testamentary trust that will support charities and not-for-profits if you die.
Your name will continue to support the good work of others for ever!
But this would not help me unless you believe in after life or reincarnation.
You will have eternal life through remembrance, sounds like a good deal to me
Great posts, Peter. Like the others here, I found your story inspiring.
Money to me is important but not the most important thing in life. In fact, I only started to really invest when I got into my 50s. My life up until then was centred around what I thought was important in life - relationships and my family. After my 4 children left the nest, I had more time to invest and do other things which I wanted to such as working overseas. I am typing this from a University in China where I'll be for 4 weeks teaching accounting to the locals.
Interesting thread.
Money to me is important but not the most important thing in life. In fact, I only started to really invest when I got into my 50s. My life up until then was centred around what I thought was important in life - relationships and my family. After my 4 children left the nest, I had more time to invest and do other things which I wanted to such as working overseas. I am typing this from a University in China where I'll be for 4 weeks teaching accounting to the locals.
Interesting thread.
Only if you believe in after life or have a religion.
Only if you don't.
i dont think you got what i was saying at all.
Life is not always about you, or about the money, or even an after-life.
If all you are here for on this planet is to make money, and nothing else, then no amount will ever make you happy.
There is always a risk of early death - talk to someone that has had it affect them directly and they will all say - "Life is short - make the best of it".
If you want to make money, that is fine, just don't make it the only thing in your life.
Yeah; it's amazing how many folk you see with their bum hanging out of their pants so to speak, yet can feed the family on a meal of take-away several times a week.
On a slightly different tack, but a similar scenario; crying poor - one of my mates (starting to go cool on him though; read on) was recently grizzling to me how it's tough to make money ATM, and was whining about the Gubbmint and payroll tax and so on...he drives a Senator and the wife drives a newish X5, and they spent a month at the snow last year and completed a $150k reno at the PPoR this year. I mean; seriously...
The classic one I see on a far-too-regular basis (in the workshop) is the 65 year old lady who looks 80, has the smoker's hack raspy voice and cough, and complains she has no money because she is on a pension, yet is walking around with a packet of Winnie Blue 50's in her hand and reeks of ciggy smoke.....
Now, I know everyone has a legal right to smoke, but.....
That gets me too.
I also hate watching advertisements on TV when the campaigning for Xmas presents to be donated for "underpriviledged" kids/families.
Or stories about do 'food drives' for needy families.
One day a friend and I were discussing at work how we cannot figure out how some of our other co-workers can afford smokes, booze,fast food,and partying on their income. We don't, and we certainly don't have that type of disposbale income after paying our bills/mortgages.
She looked at me and laughed and said...well, we know they don't pay their bills and rent...just enough not to get evicted or the power cut off.
I hate food banks for the chronic users. All it does is encourage bad behaviour. My daughter has used it a couple of times, and she feels embarressed going there. The last time she asked me to go with her, which i did out of curiousity.
My daughter didn't need to go there, she could have made do or spent her money more wisely.
Who determines who is needy?
I imagine a lot of people who need it because of a drastic, unexpected experience in their life..such as a death in the family, illness,escaping domestic violence, accident are probably the least likely to ask for it. It will be the ones who have the "I deserve it" attitude who get it.
