Investor · Clemson, SC · Member since 2008 · 198 posts · 156 votes
Hi fellow BP members. I'm helping Bigger Pockets work on a project about using real estate investing to retire early (aka achieve financial independence).
Would you mind taking a brief survey (mostly multiple choice & took me less than 2 minutes to answer):
This survey will help us learn more about how you use (or have already used) real estate investing in your wealth building and retirement/financial independence plans.
Thank you for your help! Feel free to reply and leave comments to let me know what you think.
A good friend and owner of more than 150 Los Angeles and Las Vegas houses, all free & clear once said to me, "You need about $250,000 a year income to really enjoy yourself. I mean, you do want to go to Africa on safari once in a while don't you?"
While I'm not sure if I want to go to Africa or not, I'd like to know the option is always on the table. And if guy with that much net worth says $250K is the minimum one should aim for, kind of hard to argue with him. Of course, that was 10 years ago so one would have to adjust for inflation.
Again, this is going to be a very personal subject. If someone thinks they need $250,000 per year to enjoy themself, who am I to argue. We're all different.
But I can certainly say in my case that I can (and actually do right now) have a fabulous time, traveling the world or doing whatever else I want for MUCH less. We live for $3,000/month in Cuenca, Ecuador sending our kids to private schools, eating great food, buying private health care, drinking local craft beer, and taking excursions around the country. $60,000 to $100,000 per year and you can live like a king/queen here and many other parts of US and the world.
And, something many people don't consider is how much less things costs when you have flexibility of time. You can take trips when there are deals, shop at local markets for food, negotiate long-term hotel/airbnb deals, and travel slower. Traveling slowly is so much cheaper than a 7-day, in-and-out vacation.
Just food for thought. The point of this wasn't to say low or high-income needs are right or wrong. But for those hoping they can enjoy themselves for less than $250,000 per year, I just want to let you know it's easily done.
I have traveled extensively (Big no no to economy class. That ain't traveling. That's being shipped.) and certainly understand one can live way below their means by going to extremes. I met an Israeli guy who said he was living in India on less than $1/day. I didn't think the point of this forum and definitely not this site is to brag about how cheaply we can live on the lowest net worth.
Maybe someone can start an alternative website; tighterpockets.com. People can discuss clipping coupons, buying soon to expire meat and bread, 2nd hand clothes, dumpster diving, yard sale bargain hunting and creative ways to re-purpose broken furniture thier neighbors are disposing of.
To me it’s the best way but not the only way. I’ve done some stat study and the average american need 5k a month to support their monthly expenses. You can achieve that in 1 year 5 year o10year or 1 deal and retire in real estate. But you can also buy a business such as McDonald’s/vending route / convenience store etc.
I plan on having the 3 pillars of wealth:
Real Estate Portfolio
Own a Business
Stock/mutual fund portfolio
I️ feel that it’s one of the best, safest, and fastest ways to build yourself into retirement if you are willing to put in the work to get to that point.
I️ believe the most important part of any wealth building activity that you take part in is that you are passionate about what you do no matter what is I️t. You shouldn’t be doing something just to GET TO THE END GOAL as fast as you can, you need to love the process and journey or you’re wasting your only resource you can’t create more of; time.
I have traveled extensively (Big no no to economy class. That ain't traveling. That's being shipped.) and certainly understand one can live way below their means by going to extremes. I met an Israeli guy who said he was living in India on less than $1/day. I didn't think the point of this forum and definitely not this site is to brag about how cheaply we can live on the lowest net worth.
Maybe someone can start an alternative website; tighterpockets.com. People can discuss clipping coupons, buying soon to expire meat and bread, 2nd hand clothes, dumpster diving, yard sale bargain hunting and creative ways to re-purpose broken furniture thier neighbors are disposing of.
Aaron, I'm not trying to convince you. You've got your point of view, which is one way of experiencing the world. My previous post was addressed to other people who might read and actually believe your comment that "$250,000/year is needed to really enjoy life." Believing that is one of the reasons a lot of people stay locked into a work grind a lot longer than they need to.
A very non-extreme, enjoyable life can be had for much less than that. And it doesn't involve coupon cutting, bargain hunting, broken furniture repurposing, dumpster diving, or any other non-sense. Travel hacking with credit cards, yes. Cutting out huge markups by buying directly from locals, yes. Thoughtful purchases, yes.
And some people do appreciate real, current expense numbers so they can see how things actually work. It has nothing to do with bragging. You're welcome to ignore it and find another comment where someone spends $20,000/mo month.
In fact, maybe someone can start a 3rd alternative website; heaviestpockets.com. People can discuss the pleasures of their first class flights on their 7-day vacations buying chef-selected cuts of fine meat and vintage wine from a select bodega in Argentina. It'll be really popular because these people are obviously enjoying themselves more than everyone else.
I have traveled extensively (Big no no to economy class. That ain't traveling. That's being shipped.) and certainly understand one can live way below their means by going to extremes. I met an Israeli guy who said he was living in India on less than $1/day. I didn't think the point of this forum and definitely not this site is to brag about how cheaply we can live on the lowest net worth.
Maybe someone can start an alternative website; tighterpockets.com. People can discuss clipping coupons, buying soon to expire meat and bread, 2nd hand clothes, dumpster diving, yard sale bargain hunting and creative ways to re-purpose broken furniture thier neighbors are disposing of.
In fact, maybe someone can start a 3rd alternative website; heaviestpockets.com. People can discuss the pleasures of their first class flights on their 7-day vacations buying chef-selected cuts of fine meat and vintage wine from a select bodega in Argentina. It'll be really popular because these people are obviously enjoying themselves more than everyone else.
There already is a website where people only show all the great things they are doing without any of the downside. It's called Facebook. LOL
Retire Early with real estate... At 32 with 34 free and clear homes I could retire tomorrow and not have to worry about working the rest of my life. With that being said I use that freedom to keep getting more free and clear homes and flips. The key now is to help other learn.