I used to think that there was no way I’d be able to retire “extremely” early by Jacob’s definition. But, I just realized that we’ll have our house paid off in a little over three years, when we’re both age 35.

Once the house is paid for, the only ongoing housing costs will be property taxes ($200/mo), utilities (varies but normally about $350/mo), and repairs/maintenance (say $200/mo), totaling about $750/mo for two people.

Not bad for a “regular” house, and certainly enough for us to sock away savings for a retirement sometime in our 40s if that’s what we choose to do.

@tracy – I no longer feel that I have to keep a low profile wrt my previous career, hence the full name. The “Jacob Lund Fisker, Freelancer” is simply the name of my dog and pony show (for taxation purposes).

@Kevin – Kids can be had and raised in an RV. Some designs have bunk beds (ours don’t), which would do away with the hassle of making beds daily. We do not have any plans for kids as I think this would negatively influence our quality of life mostly in terms of loss of time and freedom and the extra work that bringing them up entailed. Also I can think of projects that are more rewarding to me than successfully raising kids. I don’t mind kids, but I would prefer them to be 18 years or older and moved out 😀

In terms of what kids would cost, it would seem that the consensus (at least on this site) is that they cost as much as you can afford. I know that feeding, clothing, and entertaining a few additional mouths would not cost a whole lot for me. Others would “need” to move to certain school districts and “need” to set their kids off with their own room, travel soccer, toys, fashionable clothing, cello lessons, tutors, nannys, daycare centers, and college degrees, etc. and that would obviously cost a lot.

@Kevin M – My SIL has a travel trailer (looks < 30') with a queen size double bed and two bunk beds, which fits two adults and two teenagers. Admittedly, they can't bring much stuff, but it will fit the people, their clothes, and the food. It could be done. Obviously in such a case, I'd prefer to spend most of my time outside doing things and REALLY consider any purchase.

@Alex – Yeah, most posts these days are inspired from comments on other posts. The RV thing is an “old” issue though or at least as old as the time we have lived in one.

I don’t think I ever hit a 97% savings rate (I wish. It would mean needing to work less than a year to become FI). I was close to 90% just before I quit my fulltime job, but most of the time while working fulltime I have been around 80% after-tax. These days, I’m down to a measly 50%.

Indeed, the modern American middle class lifestyle is very expensive if everything has to be bought and billed.

Incidentally, we have cable TV (and internet), this neighborhood, the RV/mobile home park, is the safest I have ever lived in (helpful and attentive neighbors), and while an RV is not a house it has everything a house has except separation—actually it has more such as backup battery power, a one week emergency water supply, and about 6 weeks of winter heating (propane supply). My DW is happy; at least she’s not complaining 😀 and given kids, I would have almost all day to help them with their homework and teach them stuff.

@Alex – My DW has a cable TV feed (directly into the eyeballs like gamma rays) which keeps her calm 😀 [I hope she doesn’t read this comment, LOL].

Go for 200-400/adult (income earner). If nothing usable is found, bring in more adults. But it’s likely mainly a location problem. I would not expect to find anything with a foundation around here (sf bay area) without at least 3 adults. Hence the RV.

For professional reasons, I have had to move constantly every few years for the past decade (I’m on my third country and 7th place in the 4th city since 1999), so moving is something I’m used to. Put in an aggressive effort when you move. Join a club or two instead of hanging back with the spouse.

@Alex – sorry if I came across negative, I kind of thought Jacob was responding to the earlier Motley Fool discussion forum he linked to. I’m with you that I could not personally live in an RV long-term. My wife would not hear of it, and with a son, another kid on the way and 2 75lb dogs, it would be a squeeze. We lived in a 750 sq ft home until this July and that was tight when we were all in the same room. Maybe I’m just spoiled.

Speaking of Mom/Pop stores….

When I was in middle/highschool, I used to have a bit of a disdain for non corporate chains. I thought they were a bit unproffesional and rinky dink, and some still are no doubt, but nowways I MUCH prefer shopping there than at some large faceless mega corporation.

Funnels money intothe local community better I woudl imagine, and I just love how many places will cut you off the cuff deals and other under the table type of options.

And the most Mom/Pop intensive areas are usually rural settings, which is where we are moving too officially in a week(Sandy, OR).

YAY!

What a great idea. Buying land in New England. There is some beautiful land out there. People will tell you “Its so cold”. Hello? Blankets, hot coco?

I live in Lake Elizabeth California. It is 40 miles from Los Angeles, but it is a slice of heaven to me.

I retired from teaching (i’ll be 35 next month) and while I am not fully retried (extreme if you will) I do enjoy my life much more.

Buy the land Jacob. San Fran is over rated.

Keeping your options open, yet knowing what you can tolerate, provides the best opportunities for cutting housing costs.

I’m not an RV person, so looking for real estate deals offers the fantasy that we could make a lifestyle change. Right now, in western Oregon and SW Washington, there are some sweat equity opportunities for homes with a half acre or more starting at $80k. Some are livable as-is if you do basic clean-up & painting. Most would benefit greatly from an added $10-20k and then you’d be set.

These are always rural properties, sometimes scenic or coastal, but property taxes typically run $1000-2400/yr depending on size and vicinity (Castle Rock, WA, for instance, has higher property taxes than most locations).

The homes run from 700 sq ft to 1600 sq ft, so many are suitable for small families.

@Jacob – my favorite site for Oregon is http://rmls.com

In my area there are very few trailer parks. There were more a few years ago, but some of them were closed to cash in on the real estate boom.

RVs, too, really suck in cold winters. They weren’t designed to be lived in during cold conditions. They are very energy inefficient and too many water pipes are exposed to the elements.

Finally, it’s hard to have dogs especially large dogs when living in an RV. Some parks place limitations on dogs. Even the best behaved dogs can be tough on walls and doors and RVs just are built sturdy enough to take the continual abuse.

It’s a shame there are so few housing options. For me, I didn’t want to live in apartments with their thin walls and lack of outdoor living areas. I bought a townhouse when I moved out my mothers house when I was 22. A house *is* a huge financial drain. But, for me, I still can’t think of any viable alternatives.

My house is now paid for. I’m considering building a 400sq ft studio on 40 acres I own and then either sell the house or rent it out. Now that I no longer pay interest on a mortgage, I could pull in $1000+ a month in income renting it.

@Jacob
http://rmls.com also includes some Washington State counties. Here is the map of covered counties: http://rmls.com/RC2/pdf/RMLSCoverageArea.pdf.

Jacob

I’m 37 and have followed a similar path to you. I have a 6 figure job that I hate and I’ve been saving 60% since I was in my mid 20’s. Living way below my means. My net worth is about $700k. I’m ready to leave this corporate nightmare that is killing me day by day.

I’m single and want to live in an RV. My goal is to follow my fly fishing passion through the Rocky mountains, Alaska, Canada, etc. I want something small, but nice. Large enough for 2 people to comfortably live out of. I would prefer a used RV (I always buy used – depreciation) Any recommendations you have would be appreciated.

One more note.
I can’t understand for the life of me why anyone would want to retire extremely early. My father attempted this in his early 40s only to be bored to tears.
He traveled, golfed, fished, read. Later he asked himself-now what?
After 2 years of retirement he had enough and returned to the world of work, full time, in the same career (Accountant). He then worked until his 60s and was much happier retiring at this stage in his life.

I am in my mid 40s and have zero desire to retire early. My siblings and friends are all in the late 40s, early 50s and can’t even imagine retiring this early. Yes quite a few are stuck in corporate rate race as well.

I think for many people under 60 it’s not retirement that they really seek but rather a sabatical (ie:a year off) or even a change of scenery or career.

Retiring too soon before being financially ready to do so can seriously jeopardize financial security in old age when one is less likely to be able to return to work.

I am sorry but having 780K at age of 37 doesn’t mean money will last, in the absence of employment, until your 80s or even 90s.
When you consider inflation, the rising cost of living etc. that money will be long gone in less than 40 years.

Futhermore, as more people lose homes in this country, the cost of staying in an RV park will rise substantially. You see others will seek ways to survive with their families and living in an RV will become much more appealing to the masses that had not considered this lifestyle in the past.

I sold our RV in 1994. Back then we paid between $5 & $15 a day at a park (including water, electric, sewer)
Nowadays you are looking at $20-50 per day depending on the location.
I suspect that number will rise as the masses turn to Rv’ing as a means of survival on limited incomes.
Unless you are childless and with considerable income in bank and investments, please please please reconsider early retirement.

One of my neighbors (in her 40s)absolutely HATED her abusive corporate job which gave her 95K income. She had invested and saved for years and decided to change careers to a more “socially concious” one. She now does tours at a natural museum and teaches children about the environment. She absolutely loves it. While it doesn’t pay anywhere near what she made before, it pays the bills and certainly made her life and career much more enjoyable. In addition, since she lives frugally, has no debt, and substantial savings/investment (which she doesn’t touch)she feels safer knowing that she will be financially set in her old age.

[…] hasn’t been totally wasted – I have more stuff than Jacob including a house, and living in a motorhome is not totally my idea of good living, and the harsh exercise regimen is also not to my taste, […]

@Hoplite – Not dated, just written some time ago. We’re still looking at New England. Vermont scored some points for being the first state to make the move towards a sane health care system. Thanks for the links.

@Jacob – What would you do if you couldn’t find better (cheaper) living arrangement in your area?

I’m very specialized in my work (game industry) and being in Sweden doesn’t help with the amount of job opportunities. So finding another job and move isn’t very likely, unless I switch career…

At 23, do you guys think it would be smarter to go back to school and pick a different career that would in the long run be more beneficial and not so specialized?

@Jacob,
Your blog is inspiring. We want to try living in an RV in SF Bay Area, like you did. May I know what’s the RV park that you park your RV at, when you lived there? Thanks so much. I’d appreciate it.

Sam

Great post. Having the right amount of space is important if you want to retire quickly. I guess the more space you need the further away retirement gets.

@Dave – There are some pics of it on http://facebook.com/earlyretirementextreme