Hello Friends,
I am a fairly new reader of the MMM blog which has completely shifted my views on finances. I always dreamed of being financially independent, be able to retire early, so that I can pursue my passion: travel around the world to volunteer my skills/services to communities in developing countries. With the help of this blog, and hopefully anyone here who can offer me some sound advice I think it might be possible :)
Below I have included my financial stats, my question is how I should invest/how can I generate enough passive income/what path should I take to be able to retire comfortably within the next few (5-7) years?
Bank Account Balance: 70K
Annual Income: 76K (tax free since I work overseas)
Expenses: 1K/month for Food & Entertainment only (all other fees such as housing, transportation, internet etc covered by my job)
Debt: 0 (payed off all my school loans last year)
Retirement Account: None
Marital Status: Unmarried, no children
Age: 31
I am currently in the process of buying a condominium in the US which I will rent out as a form of passive income. I am putting 50K down on a 150K condo. Average rent in the neighborhood for this type of condo is: 1,400/1,500. Condo fee: 200/mo, taxes, 150/mo. I plan to pay off my mortgage completely in 2 years.
What do you guys think? Should I pay off my mortgage right away and begin to generate that passive income immediately? Should I invest my money in VTSX and leave it there for the next 5 years or more? Should I plan to purchase a second rental property after this one and thereby increase my passive income in the future? Anxiously awaiting your advice/opinions on how I should proceed in order achieve my goal of traveling/volunteering throughout the world in the very near future.
Many many thanks!