Call it semi-retirement, retirement, a mini-retirement, early retirement, embracing the simple life, the mid-life crazies, taking a break from burn-out...I'm not sure what label fits yet. The truly kind people at Megacorp gave me a subtle kick-in-the-pants and I am eternally grateful. The choice was to conform to a job that just wasn't a great fit or get the heck out of the way.
I took it as a sign from the universe to RUN, not walk, from a bad fit to finding the people who need exactly what I have to offer. I may never work full-time again and just volunteer, or work by-the-hour, or even find another, better-fitting job - not sure yet. But I do know that this will test the financial freedom plan I'd been preparing for years. Nothing is more satisfying that being the master of your own life.
$3K per month financial road map - This is a high level outline of my financial readiness checklist that may help you if you are planning or even just dreaming about walking away from the corporate cube. If I can stick to the $3K per month plan, I can choose where and when I work and keep my financial independence for the reset of my life.
None. The only credit card debt I have is paid off each day. I use the credit card every day in order to score the rewards and pay the card each night with a transfer from my online bank.
No mortgage. Sold the townhouse I was renting out and added that cash to my "cache." Found a place to rent that is cheaper than a mortgage plus upkeep (thank you Michael BlueJay!). I do choose to help my daughter pay on her student loans, but I can opt out at any time. My name isn't on the loans. (No worries, honey, I'm not planning on stopping payments in this lifetime.)
2) Cash in the Bank.
Over $350,000 in retirement funds plus almost $80,000 in cash. I have two pensions I can tap into beginning in 3 years. It's squeaky tight, assuming my nest egg growth is equal to my personal inflation rate, around 1.3%.
3) Monthly Overhead - $2,999 per month
- Housing - $600 per month for 280 square feet.
Hello tiny house living! (See photo above. It sounds cheap, but it's actually expensive for my area -- the rent is a little over $2 per square foot which is double local rental pricing. But it's in a great neighborhood, covered by a canopy of 100 year old oak trees. I can walk to the grocery store and say hello to my neighbors sitting on their front porches. It's truly a juicy spend - frugal yet satisfying
- Medical, Dental, Vision, LTC - $800 per month.
- Utilities - $229 per month
$35 for water and sewer.
$68 for cell phone service
$66 for high speed internet (yes, this is my juicy enough splurge).
No cable television, I use rabbit ears and get all the public television that I need, plus ABC, NBC, CBS and Fox.
- Food - $430 per month
- Transportation - $450
$125 per month for insurance. $80 a month for fuel. ( I have a hybrid Honda Insight) $200 per month in a savings account to build up funds for repairs, new batteries for the car, a new-to-me car when this one draws it last energy-efficient breath.
- Gifts/charity/helping daughter with student loans - $250 per month.
- Clothing - $65 per month
- Personal supplies, grooming, etc. - $75 per month
- Household supplies - $100 per month. Includes food and litter for cat, paper goods, cleaning supplies.
Does this seem extreme to you? Or is it close to your monthly budget per person in your household? Would love to get thoughts, comments and suggestions here from the readers.