Hey all!
We're a couple with three kindergarten aged kids and we are both working at the moment. She is enterpreuner so she doesn't want to retire, at least not in the next 10-20 years. I on the other hand wouldn't mind retiring tomorrow :) Some figures:
Combined yearly income after tax: 70k€ (+15k€ from rentals) = 85k€
Savings: 110k€
Expenses per year:
Groceries: 3600 €
Electricity: 1000 €
Internet: 170 €
Gas: 3000 €
Childcare: 6500 €
Others (insurance, medical, maintenance, gifts, etc.): 9600 €
Total: 24 000 €
Debt:
295k€ (mortgage and rentals) -> interest rate is about 0,5%.
I have been keeping track of our expenses for almost two years now and these are rather accurate, but the figures don't include any "unexpected" costs such as freezer breaking etc.
We own three rental apartments that each yield 8100 € and cost 3100 € per year, so the income from these are about 3x5000 €/year.
I estimate each of the rentals to be valued about 125k so the simplify the calculation let's say I would sell them for 375k€ and pay the debt which would leave us with 80k€ in cash. So we would have 190k€ to be invested.
Summary:
Income: 70k€
Savings: 190k€
Expenses: 24k€
So the 25x rule states that we would need 600k€, or 310k€ more, to retire both of us. To save 310k we will need 310/(70-24) = 7 years to reach FI.
Am I missing something? Do you think we should keep the rentals or sell them? The idea of having so much savings in cash is to buy two more rentals when we find good ones.