A crazy way to try to Retire Early

33 replies
Have you guys seen this guy and his site:
Early Retirement Extreme: — a combination of simple living, anticonsumerism, DIY ethics, self-reliance, and applied capitalism

Its about this guy who cut his expenses down to something like $7k a year so that he could get out of the rat-race and retire early.

It definitely is extreme, but I like his approach of keeping his spending to a minimum so he can focus on whatever he wants to do

Let me know if you have any intense cost-cutting techniques like he does.

Best,
#crazy #early #retire
  • Profile picture of the author Dann Vicker
    Not for someone with kids in school, I think. But really, surviving on $7k per year is no mean feat.
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  • Profile picture of the author Nics
    I applaud people like this but to me it doesn't sound like much fun.
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  • Profile picture of the author DaveCraige
    yea seems like he has to cut back considerably on just basic life stuff
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  • Profile picture of the author seotothecore
    More than trying to retire early by saving, you invest your extra money in a business that allows you to retire...
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  • Profile picture of the author Josh Monroe
    That's crazy. I read that he only spends $100 per MONTH on food - how the heck does he manage that?

    He states he pays half (as he's married) but that's still only $200 per MONTH on food, most people spend that per week (or every two weeks depending).

    I think I like may comforts WAY too much to even contemplate doing this.
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    • Profile picture of the author bhuff85
      Originally Posted by Josh Monroe View Post

      That's crazy. I read that he only spends $100 per MONTH on food - how the heck does he manage that?

      He states he pays half (as he's married) but that's still only $200 per MONTH on food, most people spend that per week (or every two weeks depending).

      I think I like may comforts WAY too much to even contemplate doing this.
      I think it largely depends on what you eat and where you live.

      We've got three in my household right now (me, wife and 5 year old daughter) and we average around $250 per month in food. We used to eat out a lot more, but managed to trim that down considerably. I generally go for "easy prep" meals that call for a small amount of ingredients and aren't as "elaborate". Of course, we also have the simple "mac and cheese" nights, too.

      So yeah...$250 a month on food is actually easy for us. Then again, we're in the Midwest, so food costs here may be slightly lower than larger cities across America.
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      • Profile picture of the author Jon Sullivan
        I think there are always things in life that we want. Stuff we do or things we buy that we don't need, because it brings us comfort.

        I can understand the idea of wanting to retire early and not work, but why not live a more comfortable life and do a job you love for an extra 5-10 years?

        The desire to retire and live the good life is often born out of a hatred for the work the person does in order to be able to retire.
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  • Profile picture of the author GlobalTrader
    “Too many people are buying things they can't afford, with money that they don't have... to impress people that they don't like!"

    That is often attributed online to Will Smith (the actor) who uses the quote quite a bit but I actually heard it way back in 1979 when Will was all of 11 so I don't think he originated it...but it does hit home for many people.

    My parents both grew up during the depression so their frugality was instilled into my brothers and I. While there is merit in not wasting money on 'things' you really do not need, there is also the need, at times, to reward yourself and to do so as your own personal feelings and needs dictate, something they could have done (and I wish they had) but did not in their later years.

    $7k per year for one person that has everything paid off might be frugally feasible but with inflation kicking into high gear for just about everything I think it is extremely extreme to try to do so at that level.
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    • Profile picture of the author theory expert
      Banned
      Originally Posted by GlobalTrader View Post

      "Too many people are buying things they can't afford, with money that they don't have... to impress people that they don't like!"

      That is often attributed online to Will Smith (the actor) who uses the quote quite a bit but I actually heard it way back in 1979 when Will was all of 11 so I don't think he originated it...but it does hit home for many people.
      I thought the quote came from the movie fight club. Thanks for the insight though
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  • Profile picture of the author theory expert
    Banned
    He is now working a job in chicago, but, I love the thinking behind his writing. Let's be honest we all live a compromised life in some form or another. Maybe you can't afford that yacht, or, that house on 1000 acres, but, with the infrastructure in place you can live off the land and see beautiful places and the take a boat ride by the pier. We do tend to live a consumerist driven lives, but, we can also be a moocher. I remember someone asked Warren Buffett about why he don't have his own plane and he said, "well I have friends with nice things". Also, Warren Buffett one time got an expensive tie from off Jay-Z 's neck because he kept hammering Jay-Z about how nice his tie was. Be a notorious moocher until you can have the world, ok?
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  • Profile picture of the author aars
    I'd rather enjoy my life while i can instead of waiting to enjoy it in 20 years later.. not my cup of tea!
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  • Profile picture of the author MattStevens
    I'm a big guy, so $100 bucks a month on food...I would cry!
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  • Profile picture of the author jgant
    I'd rather apply my efforts to making more money. There's a popular book on the subject called "Your Money or Your Life." Sounds attractive until you forego all the good stuff in life.
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    • Profile picture of the author theory expert
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      Originally Posted by jgant View Post

      I'd rather apply my efforts to making more money. There's a popular book on the subject called "Your Money or Your Life." Sounds attractive until you forego all the good stuff in life.
      It's a matter of preference. Like dealing with the mourning of a loss, no one can tell another how to live. The saying, "get in where you fit in" comes to play. The "good stuff " is all relative. The guy does invest his money, it is not like he is a multi-millionaire, so, he is just living his financial truth.
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  • Profile picture of the author Randall Magwood
    Sounds like one of those Dave Ramsey's "beans and rice" plans. Nothin wrong with that.
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    • Profile picture of the author cashp0wer
      $100 a month on food would not go to well in my house. My wife and I eat about that much in a week. When the kids were home we ate way more than this in one week.
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      • Profile picture of the author Cam Connor
        Great strategy, till the dollar bottoms out, of course.
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  • Profile picture of the author bigballin6161
    Who the hell wants to live like that in your prime years. So you can retire when your old? Who knows you might not even make it there. F that!
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    • Profile picture of the author goindeep
      I heard that serial killers are all tight wads. Lets hope he continues blogging.
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      • Profile picture of the author Kay King
        I saw a couple profiled on a TV show a while back that made an impression on me.

        They didn't live "on nothing" - but they maintained the lifestyle they had when first married. Most people don't do that - they get raises and better jobs and buy bigger houses and newer cars.

        This couple stayed in their first small home, drove cars as long as possible before buying another one, didn't upgrade the cable TV or buy new electronics. They had a garden and canned food and had all sorts of things they did to live inexpensively. The majority of their income went into investments and savings instead of into "stuff".

        They were able to retire in their 50s - and keep living just as they had for years.
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  • Profile picture of the author dadhere
    ha ha, that's radical. Thanks for the info, I'll be on the lookout for more stuff like it
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  • Profile picture of the author GorillazGoods
    While I do appreciate this type of concept of living, personally I'd rather focus on making more money now and not having to sacrifice so many things in life. Why waste your youth not enjoying life to the fullest?

    But of course everyone has different priorities, so I'll leave it at that.
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  • Profile picture of the author Ronno99
    That is crazy.
    I've always thought it made more sense to just make more money.
    You'll get there a lot faster and you don't have to settle for beans and rice.
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  • Profile picture of the author ownergolan
    Crazy is just different, which is always good. Thnx for the share.
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  • Profile picture of the author Jassen
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    • Profile picture of the author JabMonkey
      Originally Posted by Jassen View Post

      I've written extensively on this subject, and last year wrote a guide on how to live in the US on $10,000 per year, if they have no kids and have "no partner, no pets, no debts, no problems".

      My normal expenses when I'm here in the States are under $1,500 per month, and I live fairly well for a single guy. That sum includes food, housing, gas, domestic travel, and several hobbies.

      Overseas, my cost of living doubles, especially in Japan!
      Move to the Philippines! I moved here 10 months ago from the USA and live in a huge American style house for a mere $235/mth rent (this place would easily go for $1500/mth in the USA). My electric/water bill is about the same as in the U.S. at $200/mth. My food expense is $300/mth, but I buy a lot of American food. All together, I live pretty large for under $1200/mth...that's for me and 1 other person, her family (200 pesos here, 300 pesos there....yeah! Great bunch of people!:rolleyes, 2 dogs, 2 cats, and a pig (don't laugh).
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      • Profile picture of the author DaveCraige
        Originally Posted by JabMonkey View Post

        Move to the Philippines! I moved here 10 months ago from the USA and live in a huge American style house for a mere $235/mth rent (this place would easily go for $1500/mth in the USA). My electric/water bill is about the same as in the U.S. at $200/mth. My food expense is $300/mth, but I buy a lot of American food. All together, I live pretty large for under $1200/mth...that's for me and 1 other person, her family (200 pesos here, 300 pesos there....yeah! Great bunch of people!:rolleyes, 2 dogs, 2 cats, and a pig (don't laugh).
        what part of the Philippines do you live in?
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  • Profile picture of the author ArcherWylde
    What an interesting story...

    I probably COULD live that way, but if it was optional I certainly would'nt WANT to...

    Also have to agree with Dann Vicker, aside from my wife I also have 2 daughters...I couldn't imagine trying to get them to go along with that lol
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  • Profile picture of the author smokey58
    I could not even pay my rent on 7K a year. That's not even counting car insurance and upkeep, Phone/Internet, Utilities...etc. Does he live in a cardboard box?
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  • Hi friend,

    Very nice post i know the idea about try to retire early but i used it whenever i want it anyway Thank you for post it.
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  • Profile picture of the author Devin X
    Banned
    Lots have people have tried this. It became quite a trend back in 2008 after the economic crisis. Minimalism is kind of losing it's flair now, though. I wonder if this guy actually made it.
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  • Profile picture of the author Michael Ten
    I want to have the option of retiring as early as possible. Cutting expenses is certainly a good way to work towards having that option.
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  • Profile picture of the author Steve Fleming
    I moved to the Philippines almost 10 years ago and it was the best thing I ever did. I don't think I would ever go back to the west again.

    Steve
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  • Profile picture of the author MartinPlatt
    Little like Tim Ferris, and 4 Hour Work week, only Tim seems to have done it in a more sensible way - using geo-arbitrage.

    Got to give anyone respect for giving it a go though...
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