Comments on: Preliminaries to retiring in 5 years

By: Steven

Steven — Wed, 06 Jul 2011 21:28:09 +0000

Hey Jacob, I love this proposed lifestyle. I’ve lived without a car for 4 months and I find it incredibly do-able, a huge save on money, and made me more healthy.

Early retirement is an interesting concept, although I have to admit I am not sure I want to settle for a “lesser life” (in my eyes) just because I want to stop working at an early age.

I’d rather work doing the things I love, and also be able to accumulate some material wealth along the way. Those are just my personal values though. They do take a bit more work, and there is a risk of becoming too attached to material goods, but it’s something I want to pursue at the moment.

I do however exercise some “minimalist” type practices in my life. I have no need for a TV. I don’t buy new clothes hardly ever. And I eat relatively cheaply (though not necessarily as healthy as I would like).

The biggest idea is to assess your own values and not just buy into what society expects of you. Do that, and you’ll save a lot of unnecessary costs (both physical and mental).

By: Little House

Little House — Wed, 06 Jul 2011 20:29:40 +0000

Thanks for including my link in your post! That’s awesome.

By: Bridget

Bridget — Wed, 06 Jul 2011 16:37:24 +0000

I bought my car new in 2001, it has 184,000 miles and going strong to due regular maintenence. I have no plans to replace anytime soon. Thanks to the encouragement of you, Jacob, & Retired Syd, I am on track to retire in 4 years at age 50.

By: FrugalZen

FrugalZen — Wed, 06 Jul 2011 10:23:03 +0000

I’m more of the “Car Lite” type…while I have a pickup truck ( I’m second owner..1981 so its 30 years old and runs great…not so hot on looks though)…I only use it on very rare occassions and since I don’t need collission insurance because I don’t have a loan on it insurance cost is less than $300 a year…even in Florida, home of the uninsured motorist.

What I do depend on is a “Super Scooter” as they call any of them over 250cc…mine being a Suzuki Burgman 400. It has a large trunk under the seat and my weekly fuel expense is around $10 and annual insurance is about $230.

I ride it all the time even when cold and wet out and have even taken it to Key West twice. (400 miles one way and each time spent only about $50 for fuel round trip…great way to take a vacation).

Unfortunately the bus system here in Orlando…and I have to give Lynx credit they do a SPECTACULAR job considering the way the roads are laid out is a bit too cumbersome and time consuming for me and does not run everywhere…only where their is high ridership.

As a point though having a good mass transit system so that a car is not required often means that rents are higher…so you do have a tradeoff.

By: blah

blah — Fri, 10 Dec 2010 08:11:30 +0000

Also, for trips further away from home, take public transit to the airport or greyhoud station, etc. Some smaller cities have shuttle buses that run between several smaller towns and an airport in a major city. These are not too expensive if you live in a town without an airport.
Also, depending on cost, you can choose to order some items you need online and save, maybe even over going to a store to get them. This way you can have them shipped directly to you and don’t need a car to get them.

HTH

blah

By: blah

blah — Fri, 10 Dec 2010 07:52:39 +0000

@dougster Car free is simple to plan, but difficult for those not used to it to implement. DH and I are both blind and so have no choice but to be car free. When I see how much friends spend on car related expenses, I have to say that sometimes I actually feel better off despite there not being a choice for me.
First, live somewhere on a transit line, bus, train, or subway, etc. Second, live somewhere close to the things you need so that you can walk most places. Fourth, for those emergencies or times when you have to have the cargo capacity of a car, the speed of a car, or have to go somewhere where public transit does not go, make sure you live somewhere where you can call an ambulance or a cab, etc. Also, if you and friends want to go somewhere, you can always offer to help with gas money then. It is not difficult to plan these things, it is just difficult for some people to make the lifestyle change. To me, I feel that in general blind people can tend to be healthier due to walking most places instead of driving and so this would be true for anyone who doesn’t own a car.
One last thing to consider is the importance of good equipment. You need good walking shoes or boots, etc, you need very effective warm clothes if you live in a place that gets cold in the winter, and you most definately need a good packpack. A good back pack, large enough and sturdy enough to carry groceries and other essentials is very necessary. Get a good pair of walking shoes, and a good backpack, and if you live in a wintery area, an excellent coat and warm boots with good traction that come up high on your leg so that snow drifts don’t get into your socks. Never forget the good backpack and don’t skimp on quality or size because remember, most people keep their personal effects in their car. You don’t have a car and so will be using that backpack to hold the things you need to bring with you as well as any cargo you are going to haul.
HTH,

blah

By: dougster

dougster — Tue, 16 Mar 2010 11:16:03 +0000

All great ideas to retiring but what about more in depth information on car free living since that would seem to be the hardest part of cutting back expenses. Many people would love to be car free but realistically doing it requires a workable plan.

By: Jacob

Jacob — Mon, 08 Mar 2010 16:35:23 +0000

@Financial Samurai – I did not work before grad school. I went the straight from HS. Since it was science, though,I got paid in grad school (about 20-25k). After that I worked 5 years. I was FI for the final two years that I worked.

There’s a lot of retirement stuff in my archives. This is why I don’t write so much about it anymore. IF inspiration strikes, I will write about it again.

By: Debbie M

Debbie M — Mon, 08 Mar 2010 15:42:01 +0000

@Our Take on Freedom – walking isn’t so great where summers are super hot, either, or where it’s always raining. But for any of these situations, there are things you can get to make walking much more pleasant: warm coats, shoes with good traction in the snow, galoshes, hats that can help. I do have trouble looking professional when I come to work on a hot day–fortunately, it doesn’t get super hot on my commute to work the way it does on my commute home!

@Simple in France – ouch! Hope DH is recovering quickly. When I was carless, I did occasionally rent a car. In your DH’s situation, can you rent a wheelchair? (Is it possible to do so, and is your area wheelchair-friendly enough for this to be a good idea?)

@glippy – I miss Boston’s mass transit. And I didn’t even live there, but I lived where a train could take me there!

By: Forest

Forest — Mon, 08 Mar 2010 11:49:00 +0000

I guess I have already started gearing towards this… I work from my laptop now, I don’t own any vehicles and I walk everywhere.

I never went to Uni but am certainly living that enlightened poverty and enjoying it much more. Not a lot of cash but not a lot of stress from commitments either.

Thanks for a great post (oh the post has a small typo… where you say some people can sell their homes, don’t normally point these out but it changes the sentence a bit ).

By: Little House

Little House — Sun, 07 Mar 2010 19:12:52 +0000

Thanks for mentioning my post for this month in your short carnival! As for downsizing, I like that idea. I also like the idea of short commutes. I live within 6 miles of the school where I teach (sometimes, I’m a sub) and on beautifully sunny days, I bike. I love it! I’ve even encouraged some students to start riding too.

By: The Rat

The Rat — Sun, 07 Mar 2010 18:14:11 +0000

I know of a friend that ‘shed’ his car and moved to an apartment close to work and he just walks. His savings on the vehicle expenses enables him to fast-track his retirement objectives.

Nice post!

By: LeanLifeCoach

LeanLifeCoach — Sun, 07 Mar 2010 15:47:52 +0000

I won’t be car free anytime soon but it is amazing how much more can be accomplished when you refuse a commute.

With our last move I made it a point to buy a house within a 15 minute drive.

Compared to our arrangement while living in L.A. I now have 2.5 hours more each workday!

Its amazing to consider how much more productive society could be if we could eliminate commutes.

By: Mo

Mo — Sun, 07 Mar 2010 15:03:54 +0000

@George, a relatively quick way to make the calculations you mentioned is to use the IRS standard mileage rate– currently 50cents per mile. I’ve done my own calculations on comprehensive car ownership: insurance, fuel, depreciation, financing, maintenance, registration, inspection, etc… and the numbers come out pretty close.

If you drive a particularly inexpensive and efficient car you can get the costs down to around 38-40cents per mile.

These numbers require a certain set of assumptions to be made, and these assumptions may not be accurate for each individual’s situation. But, that’s true in any estimation.

As you rightly note, the car provides a great deal of convenience, particularly in most of the US where public transportation is an after thought. The cost for that convenience is high though. If you’re daily commute is 70 miles round trip, it probably costs you around $35 each time you make that trip.

Something interesting to realize is that all significant rail systems in the world are money losers if you factor in the cost to develop the rail system. Also, in the US, many public transportation systems receive some form of subsidy to cover a portion of operation costs. So, transportation is actually more expensive than it might seem on the surface.

By: glippy

glippy — Sun, 07 Mar 2010 09:04:27 +0000

Count me in as another happy, car-free guy. I rent a car for the day about once every 6 weeks to go visit the relatives and friends who live outside the city. But other than that it’s all subway and walking.

I’m in Boston, a city with an, I think, under-rated public transit system.

By: Simple in France

Simple in France — Sun, 07 Mar 2010 08:22:23 +0000

Hmmm I’ve been rethinking ‘dependence’ on walking since DH broke both his legs and one foot.

I’m thinking that having a backup for needing to walk to work is probably a good thing. Even a relatively simple sports injury could be a big problem if walking is your main way of getting around. (although admittedly, there are some fairly simple injuries that can keep you from driving as well).

I’m still committed to walking, but I think the next time we move, DH and I will consider walking backup alternatives: bus routes, bike storage and bike friendly roads, I think veganprimate just got a scooter for backup. . .I’m still gathering ideas.

You can’t plan for everything but you can create contingencies.

By: Financial Samurai

Financial Samurai — Sun, 07 Mar 2010 07:40:21 +0000

Good stuff Jacob. If you can write more about getting to retire in 1, 3, 5, 10 years that would be great.

Remind us again how many years you worked before grad school and after again?

I like this topic a lot. I plan to downshift, sell 75% of my stuff, and make sure my cash flow is OK 2 years before the day.

Looks like your Alexa ranking is moving like a rocket ship since you joined the Yakezie!

Best,

Sam

By: He Who Is Frugal

He Who Is Frugal — Sun, 07 Mar 2010 03:33:22 +0000

Some parts of the country it is very difficult to live without owning a car. Be that as it may, there is no need to spend a lot of money on a car. Many can be had in the 1,000-3,000 dollar range and kept for 10-plus years. If you don’t how how it looks, you can keep it a long, long time, and it can be quite cost effective. If you live where you can go without a car, more power to you.

By: dandan45

dandan45 — Sun, 07 Mar 2010 02:53:01 +0000

You have hit on some good points. Cutting back and getting rid of the accumulated items. I have to say that is my failure. I am not good at tossing things out. But, as you said, just get starting doing it. It may take a while, but one can reach his goal.

By: RetirementInvestingToday

RetirementInvestingToday — Sat, 06 Mar 2010 21:48:18 +0000

My current retirement strategy calculates that retirement (work becoming optional) is about 7 years away for me.

One of the sacrifices I have made to achieve this is to give up on car ownership altogether. If I ever seperately need a car I will just hire one for the short period required. I live in a major UK city so a car free lifestyle is possible. This is cutting costs and is just one of many of the sacrifices I have made.

The other ‘sacrifice’ (I’m happy with my lifestyle so wouldn’t class it as a sacrifice howevers other might) I have made is to live a frugal lifestyle generally and not increase my standard of living as my earnings have increased. This now enables me to save a significant portion of my earnings. Last month this was 83% of net earnings.