LogFAQs > #930875287

The concept of your passive income is enough to pay for your lifestyle.

In July I got that high paying job I've been talking about for the past few years (140k right out of school, hoping to get to 200k within the next two years). And really, it's just not for me. I loved school, residency was alright, but I strongly dislike work. I basically wanted a way out, and found out about early retirement through Mr. Money Mustache and the Mad Fientist.

It basically boils down to just having a high savings rate and putting money into something that makes you money. Most of the community likes low cost index funds like VTSAX because they are completely passive and you can withdraw 4% a year without touching the principal most of the time. Basically an index puts your funds into many companies, like VTSAX holds over 3000 in it now.

Anyways, I put 52k in low cost index funds this year, so that gives me like a 2k passive income. Hoping to do 80k next year (an additional 3k passive income) and any salary raises I get will go to that. Hoping when I get a passive income of 30k (I typically live on less) I can "retire" which most likely means working temp jobs for a few months a year and hopefully not touching my passive income, but we'll see.

But anyways, even on an income of maybe 60k, the math still works out so you can retire early if you live frugally. Like not in your 30's, but definitely in your 40's. Honestly living on less than 30k and I feel like I am living like a king in my luxury apartment with my musical instruments, board games, and eating out at happy hours. Just wish I could move back to Utah and be with my friends and family instead of moving a couple more times with this job.

https://www.mrmoneymustache.com/wp-content/uploads/2012/01/mmm-early-retirement-savings-rate.png

https://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/