Smaller Mortgages

Let’s pretend my remaining expenses are actually interest-free mortgages that need to be paid off.  What would they be?

Food $150k

$500/month, $6000 a year.  Using the 4% rule, that’s $150k.

Remaining Housing $163.5k

$75/month insurance

$150/month property tax

$320/month HOA

$545 / month total.  $163.5k.

Entertainment $7.5k

$10 Netflix

$15 Audible


Utilities $45k

$75 PG&E

$75 Comcast

HOA fee covers water and trash.


Healthcare $300k

This is a little tricky to calculate.  My work pays for my healthcare now.  I could calculate it according to some private market plan, but I need to account for the steep increase later in life (e.g. I think my mom is paying ~$1000/month now for health insurance / health related things).  I’m just going to pretend $1000/month.

Car $150k

Overall, I think past estimates have shown this is about $500/month for insurance and cost per mile (up to 200k miles).

Travel $150k

Historically, this is also about $500/month.

Storage $39k

I’m breaking this out as a separate item b/c it’s something I should be able to kill.  $130 / month * 12 * 25.

The total is around $1M.  If I wanted to cut down on that in order to quit earlier:

  1.  Cut healthcare in half
  2. Cut car in 1/3, both b/c of less driving, driving w/ a beater, and dropping insurance.  The current estimate includes depreciation assuming a new car, but at 200k miles, I could just drive a piece of shit or a bike.
  3. Kill the travel budget until my business makes some money
  4. Kill the storage by selling or donating it all
  5. Utilities stay the same
  6. Entertainment stays the same.
  7. Food stays the same
  8. Housing is a little tricky.  You’d think I could save that $320/month HOA by moving into a $150k house, but then I’d have to account for the external maintenance of the house, the structural insurance of the house.  It’s not immediately a clear win.  I’d need to do research on states with very low taxes.

These cuts drop the figure down to $566k.  Much more manageable. but still a pretty daunting goal.




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