Interesting article, couple to FIRE on $22k/year

Source:
‘We are young but can retire at 40’

Sarah Lawrie and Laura Turner only purchased their two-bedroom house in 2017, but are already on track to pay it off by the end of next year, and then quit their jobs to retire by the age of 40.

Their aim is to use the passive income from their investments, which includes funds placed in Vanguard that have purchased Aussie, EU and US shares and using REITs (real estate investment trusuts) to get into a property without owning more real estate themselves.

They have even dabbled with $2000 in cryptocurrency, mainly invested in ethereum and a Perth-based company using blockchain called Power Ledger.

“We are hoping to live off around $22,000 a year from our share portfolio,” Turner revealed.

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I'm assuming the $22k is the profit after all expenses paid, which is not too bad I guess. Thoughts from others?

 

$22K with a kid or two is nigh impossible. And I'm guessing they don't intend to go overseas for travel...ever.

I reckon their budget should be doubled at a minimum, if not tripled.

 

Paid off house, and maybe 500k in shares. Plus the business income. If they can keep expenses to the share income and they are fine with that (low) level of spending, it's viable.
But little buffer and vulnerable to market corrections and inflation. Their expenses will be very concentrated on food and fuel for example.

 

Living like a homeless person has no appeal. One day one of them surely wakes up and realises the person beside them is a miserable tight arse and as they dont work they have any other social point of reference and are being controlled. Its a good example of the psychological "stockholm syndrome""

I aspire to flying towards the point end and staying in nicer places and not being miserable skimping on every cent to sleep in a fleapit to save a few dollars. Doesnt mean I chase 6 star either. I'm never budgetting a $13 a night tent in some disgraceful place. Eating 2min noodles and taking the regional italian train at night when there are no conductors.

FIRE can over focus on costs not on budgetting income and life balance.

 

LMAO. Agree 100%..

 

I think they are basing their budget on their 12 months travelling and only spending 30K in the year. I doubt the share income proceeds would keep up with inflation and sounds like it would be a very restricted lifestyle - I guess if it does not work out they go back and start work again. Good think is they have nearly paid for their property so that takes away the rent/property risk as long as they are happy to stay in that place for the rest of their lives. I dont think that would suit many people.
There is a lot more detail on their blog here Did we reach SideFIRE? - Our 2021 Journey Update | Keepin' It Frugal

 

QFT

 

Sounded to me like they I tend to keep the business. I wonder if they are going to get someone else to run it?

That’s going to take a large chunk of that 150k!

 

please tell me how a site with a few tips on how to save money by cooking rice on a portable, can earn $150k per year??

 

Good point. Teach me this magic, please!

 

For a couple of old, self-funded pensioners, we would need a “1” on the front end of that number

 

I've done my share of living off of nothing, when we were younger, although not by choice. I can tell you that it's totally doable, but not a lot of fun.

 

Their lifestyle is also not for me, but some comments here are a bit harsh. They're together for 8 years, know themselves and planned ahead, pretty much aligned on financial goals and life values. They probably already knew the other one is a miserable tightarse at this point .

Maybe one day they will need more income, a minimum wage job would double their income essentially.

 

That article says they are earning $150k from their food blog, yet on their blog they say they are earning $57k. Either way, it's much more than $22k.

 

Projected income after an advertorial appears.

 

i suspect if you lived a self sufficient in the countryside lifestyle and you enjoy that sort of stuff its probably fine, but if you enjoy actually going to a restaurant, going on a international holiday, owning a car etc a pretty basic lifestyle

 

Live a frugal life in a self sustain farm.
I am sure off grid living is doable.
If you have your farm and everything own outright.

But is it likely to be sustain long term? For life?

 

We took that Italian night train on our honeymoon and ended up in the train station at the back end of nowhere well before the coffee shop opened and supplied the homeless with their free coffee, first thing in the morning. It's a fond memory... and some of the best camp sites in the world cost $13 a night!

But I totally agree. With 3 kids, in order to live a life that is relatively unconstrained in terms of financial considerations of where to live and what to do, without wanting luxury items, requires substantially more passive income than mentioned here.

In addition, I want to feel that our net worth is still heading safely north while I'm enjoying that lifestyle. That means the ability to keep making new investments, not just keep old ones. Just as a buffer against circumstances. We have had to deal with our share of family illnesses etc and that buffer really helps the SANF.

 

They also say that 30% of their combined income goes to "investing" in their website.
Just more FIRE garbage, if not scam.