How much per year?

starshard0 · 02-13-2009, 07:38 AM

This is sort of an important question for me, because it will determine when I can retire. What is the lowest amount of income that you've ever seen someone live on? I've always estimated that with the right combination of factors I could live on about $12000 a year, or $1000 a month. But with inflation like it is now, I suppose that could easily change. Really though, what are the bare necessities that I would need if I wanted to live on as little as possible?

amyschiff · 02-13-2009, 08:22 AM

it sort of depends on if you rent or own your home, whether you need a car etc. There can be a lot of factors that quickly add up like regular maintenance and gasoline for vehicles, utilities if you live in a place with especially harsh winters.

$1000/month doesn't sound terribly unreasonable to me though, but not a lot of wiggle room.

BrianneG · 02-13-2009, 09:09 AM

I could probably get by on $1200/month net, since my rent is $700 and I'd still have to eat and drive to work and pay for the gas and electric.

starshard0 · 02-13-2009, 09:49 AM

The idea is that I can invest enough money by the time I'm 35 to retire early and live off the interest. I imagine if I had no debt and low monthly costs, it wouldn't be too difficult.

amyschiff · 02-13-2009, 10:35 AM

Yeah, it's really a matter of how much you want to "rough it". I'm pretty sure you could find a reasonably priced efficiency/studio apartment which would save a lot on rent (and probably heat too hehe). In the college town i used to live in, there were ones as low as $400/month. And if you were willing to go without cable TV and/or internet that's another big savings.

gt0163c · 02-13-2009, 10:40 AM

Quote:

Originally Posted by starshard0

The idea is that I can invest enough money by the time I'm 35 to retire early and live off the interest. I imagine if I had no debt and low monthly costs, it wouldn't be too difficult.

I think the key would be the "low monthly costs". If you're going to be not working, you've got a big chunk of time each day to fill. And that means finding lots of stuff to do. And, often (although not always) doing stuff costs money. Not saying it couldn't be done, but you need to make sure that your "monthly costs" include budget for doing all the stuff that you'll be wanting to do while you're not working.

starshard0 · 02-13-2009, 10:44 AM

Quote:

Originally Posted by gt0163c

I think the key would be the "low monthly costs". If you're going to be not working, you've got a big chunk of time each day to fill. And that means finding lots of stuff to do. And, often (although not always) doing stuff costs money. Not saying it couldn't be done, but you need to make sure that your "monthly costs" include budget for doing all the stuff that you'll be wanting to do while you're not working.

You make a good point. I figure I'd spend everyday the way I spend weekends now. On the computer, posting on forums, reading blogs and writing my own, playing games, and finding other things to do for free online.

KevinW · 02-13-2009, 04:37 PM

There are various ways you can exchange free time for reduced expenses.

I have relatives that bought a plot of forested land. They chopped down some trees and built a log cabin, and hired a consultant to tell them how to harvest firewood such that the forest would last for their lifetime. If they pay off the mortgage on the land, and follow through on logging for the rest of their lives, they'll never have to pay rent or fuel bills again.

Some people maintain a large garden and raise poultry or goats for food. If you get good at that and do a lot of canning and dehydrating and so forth, you can meet much of your food needs without spending very much money.

How much of this sort of thing do you want to commit to?

Another way of asking this is, would you rather commit to these kinds of homesteading activities and retire ASAP, or work longer to buy more investments to pay for food and housing through the money economy?

starshard0 · 02-13-2009, 04:42 PM

I'm totally willing to commit to a few homesteading activities. I've been interested in that kind of stuff for a while.

KevinW · 02-13-2009, 05:05 PM

You might want to check out "The Self-Sufficient Life and How to Live It" by Seymour. He describes a 100% self-sufficient lifestyle, which is far too "extreme" for me, but of course you can pick and choose the parts you want to do.

Also check out these blogs/podcasts, if you haven't already:
Early Retirement Extreme
Geek.Farm.Life
Downshift Me

I looked into this sort of thing rather thoroughly, and ultimately decided that my preference is to take up a few of these things, but still meet the bulk of my needs the boring way -- earning a salary, investing in mutual funds, and paying for stuff.

Do you want to end up in an urban/suburban area, or more rural? I have some more harebrained schemes if you're interested.

02-13-2009, 07:38 AM	#1
starshard0 Senior Member Join Date: Apr 2008 Location: Monterey, CA Posts: 608 Thanks: 0 Thanked 1 Time in 1 Post Reputation: (12)	How much per year? This is sort of an important question for me, because it will determine when I can retire. What is the lowest amount of income that you've ever seen someone live on? I've always estimated that with the right combination of factors I could live on about $12000 a year, or $1000 a month. But with inflation like it is now, I suppose that could easily change. Really though, what are the bare necessities that I would need if I wanted to live on as little as possible? __________________ Why should you read my blog? Because I'm awesome, that's why. من جون جالت؟

02-13-2009, 09:49 AM	#4
starshard0 Senior Member Join Date: Apr 2008 Location: Monterey, CA Posts: 608 Thanks: 0 Thanked 1 Time in 1 Post Reputation: (12)	The idea is that I can invest enough money by the time I'm 35 to retire early and live off the interest. I imagine if I had no debt and low monthly costs, it wouldn't be too difficult. __________________ Why should you read my blog? Because I'm awesome, that's why. من جون جالت؟

02-13-2009, 04:42 PM	#9
starshard0 Senior Member Join Date: Apr 2008 Location: Monterey, CA Posts: 608 Thanks: 0 Thanked 1 Time in 1 Post Reputation: (12)	I'm totally willing to commit to a few homesteading activities. I've been interested in that kind of stuff for a while. __________________ Why should you read my blog? Because I'm awesome, that's why. من جون جالت؟

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02-13-2009, 08:22 AM	#2
amyschiff Senior Member Join Date: Feb 2008 Location: Lansing, MI Posts: 471 Thanks: 0 Thanked 2 Times in 2 Posts Reputation: (77)	it sort of depends on if you rent or own your home, whether you need a car etc. There can be a lot of factors that quickly add up like regular maintenance and gasoline for vehicles, utilities if you live in a place with especially harsh winters. $1000/month doesn't sound terribly unreasonable to me though, but not a lot of wiggle room.

02-13-2009, 09:09 AM	#3
BrianneG Junior Member Join Date: Mar 2008 Posts: 6 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (10)	I could probably get by on $1200/month net, since my rent is $700 and I'd still have to eat and drive to work and pay for the gas and electric.

02-13-2009, 10:35 AM	#5
amyschiff Senior Member Join Date: Feb 2008 Location: Lansing, MI Posts: 471 Thanks: 0 Thanked 2 Times in 2 Posts Reputation: (77)	Yeah, it's really a matter of how much you want to "rough it". I'm pretty sure you could find a reasonably priced efficiency/studio apartment which would save a lot on rent (and probably heat too hehe). In the college town i used to live in, there were ones as low as $400/month. And if you were willing to go without cable TV and/or internet that's another big savings.

02-13-2009, 04:37 PM	#8
KevinW Member Join Date: Nov 2008 Posts: 77 Thanks: 0 Thanked 1 Time in 1 Post Reputation: (26)	There are various ways you can exchange free time for reduced expenses. I have relatives that bought a plot of forested land. They chopped down some trees and built a log cabin, and hired a consultant to tell them how to harvest firewood such that the forest would last for their lifetime. If they pay off the mortgage on the land, and follow through on logging for the rest of their lives, they'll never have to pay rent or fuel bills again. Some people maintain a large garden and raise poultry or goats for food. If you get good at that and do a lot of canning and dehydrating and so forth, you can meet much of your food needs without spending very much money. How much of this sort of thing do you want to commit to? Another way of asking this is, would you rather commit to these kinds of homesteading activities and retire ASAP, or work longer to buy more investments to pay for food and housing through the money economy?

02-13-2009, 05:05 PM	#10
KevinW Member Join Date: Nov 2008 Posts: 77 Thanks: 0 Thanked 1 Time in 1 Post Reputation: (26)	You might want to check out "The Self-Sufficient Life and How to Live It" by Seymour. He describes a 100% self-sufficient lifestyle, which is far too "extreme" for me, but of course you can pick and choose the parts you want to do. Also check out these blogs/podcasts, if you haven't already: Early Retirement Extreme Geek.Farm.Life Downshift Me I looked into this sort of thing rather thoroughly, and ultimately decided that my preference is to take up a few of these things, but still meet the bulk of my needs the boring way -- earning a salary, investing in mutual funds, and paying for stuff. Do you want to end up in an urban/suburban area, or more rural? I have some more harebrained schemes if you're interested.