Let’s pretend my remaining expenses are actually interest-free mortgages that need to be paid off. What would they be?
$500/month, $6000 a year. Using the 4% rule, that’s $150k.
Remaining Housing $163.5k
$150/month property tax
$545 / month total. $163.5k.
HOA fee covers water and trash.
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.
Overall, I think past estimates have shown this is about $500/month for insurance and cost per mile (up to 200k miles).
Historically, this is also about $500/month.
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:
- Cut healthcare in half
- 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.
- Kill the travel budget until my business makes some money
- Kill the storage by selling or donating it all
- Utilities stay the same
- Entertainment stays the same.
- Food stays the same
- 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.