Life Situation: Living in a major Australian city (and money shown is in $AUD), Late-20s, healthy, no dependants (or plans to create any), I have a long term partner but I'll keep this focused on my own specific finances (she's also frugal though and on-board with retiring early)
Gross Salary/Wages: $65,000 AUD per year inc travel allowance, plus 9.5% additional superannuation contributions
Other Ordinary Income: About $3,000 pa from savings interest
Adjusted Gross Income: approx $68,000 pa (a fairly average wage in an Australia city)
Yearly net income (after tax): ~$51,500 after tax
Taxes: ~26% (applicable after $18,200 tax free threshold reached)
Current expenses (in order, yearly, all $AUD):
-Rent: $11,440 (my share is $220 per week for a small apartment close to the beach but far from work - a compromise I considered extensively. I have recently listed our spare room to sublet, but haven't had any success finding a suitable person as of yet update: now have a tenant, but it's only short term)
-Groceries and household goods: $4,160 (about $80 per week, all fresh plant-based food and I always make leftovers to bring to work for lunch)
-Car expenses: No repayments; bought a good condition, used Toyota Corolla with cash, comprehensive insurance $800, yearly license fee $650, fuel $1560 (about $30 a week, as I rarely use it other than camping/road trips), servicing and maintenance approx $400 yearly (most servicing I do myself) total about $3,410
-Leisure travel: $3,000 each year, a big 2-3 month trip every year or two (many long trips in Europe, Americas and Australia and worth every cent. I always do it on the cheap, stay with family and friends, couch surf, secure deals where possible, use public transport or buy a car, sleep in it and resell at the end of the trip etc)
-Commute to work: $2,574 (weekly discounted train ticket, $49.50 per week)
-Utilities (power, water and home internet): $1,300 ($25 per week)
-Tech: $1000 (I buy 2nd hand where possible and resell when I no longer use it)
-Sports equipment: ~$400 (I get a lot of use from my surfing and cycling gear and often have to replace worn or damaged equipment, I always wait for a sale)
-Phone plan: $300 ($25 per month, post-paid, no-contract unlimited plan)
-Eating out: $200 (we rarely eat out, as it's expensive and we make better, tastier plant-based food at home anyway)
-Clothing: ~$200 (I infrequently buy good quality clothing and footwear for hiking/cycling when it's on sale and make it last, or thrift clothing for regular use)
All up, around $28,000 in expenditure on average, per year
Assets:
$106k in a high interest online savings account (generating ~3% pa variable)
$18.5k in superannuation (has about $5,800 after tax added per year), essentially locked away until a set retirement age of 60, can be accessed earlier in special circumstances after jumping through some hoops
Liabilities: approx $30,000 government student debt remaining (no interest or other fees, other than being adjusted for CPI inflation yearly). I was paying off about $250 a week in the past, but I am not earning enough in my new job to reach the threshold.
Specific Question(s): As the title suggest I have always been a very frugal person, lifelong bicycle rider, and wary of obscene consumption. Despite my humble, country childhood teaching me the value of the simple things, I also missed out on lessons on how to make money work for me. Essentially I am really good and not spending needlessly, at saving money and reducing expenses when it is necessary etc but now I am at a point in my life where I don't know what to do next.
I want to be retired or semi-retired in the next 10 years. I really hate working full-time in an office, which is why I have taken mini-retirements every year and gone for a long trip. I have a moderate amount of money saved, no debt (my student loan isn't a worry as it's interest free), no loans, bad habits etc.
At the moment I am looking to save around $23,000 each year. Even if I was able to buckle down and keep working a professional job that I really don't enjoy and constantly dream of leaving, I will have less than $500k in savings and no house or other solid assets by the time I am 40, even if I take into account pay rises and promotions (if they occur).
The best case scenario is finding a way to significantly reduce my living expenses, especially rent, so I can kick out sooner than later and live off the returns. On this note I am looking into buying a van and living out of that, or securing a position in a intentional community/ housing co-op with base-level, lifetime leases at affordable rates.
Frugality is part of my lifestyle, I don't see anything unusual or unpleasant with owning a economical car, riding a bicycle for local trips or errands, buying clothes from a thrift store etc. But what I really want to do is get out of the expensive city, office jock rat race, consumer, car-clown madness as soon as possible and on a permanent basis (not just the 2-3 month escapes that I've done in the past). To be honest, I don't think I can last another 2 years, let alone 10.
To do this I need to go 'next level' to accelerate my income and generate a higher return from my savings than what they are currently producing, although I am aware they are significantly more profitable than savings accounts in the US. But when I look at other options to generate higher, but still reliable, ROI the subject leaves me feeling dazed and confused. I've looked into P2P lending (still relatively new in Australia) and investing but from what my research showed the returns would be only slightly higher than my high interest savings account, more risky, and far more inconvenient.
Apologies for the rant. I'm just fed up with watching my savings accumulate so slowly despite my careful frugal nature, and having to spend 50+ hours a week in the office or stuck in a crowded train carriage with the light at the end of the tunnel so far away still.