We are a family of three, about to be four in the spring. Wife and I are 27 & 28 and about to experience some major life changes. I am currently in the military but will be released in the next 12-24 months due to mental health issues. I've served since high school so this is going to be a major culture shock for me, plus my wife who has followed me for the past six years. I will be out of work, not seeing friends daily, exercise routine will change, income will change (sole income family), and we'll likely move for work and lifestyle.
I just need to lay out my thoughts and ask if you all think I'm crazy.
My income is currently $84 000/yr cdn. I've been reading the blog for two years and have made some serious habit changes towards badassity.
When I learned that I would be leaving the military my wife and I took a hard look at our living expenses. Of that income a fair bit is taxed, $7880 is invested per year (increasing yearly as debt is reduced), $13 500 per year towards LOC ($30k, last debt except mortgage). Turns out our living expenses (mortgage, bills, groceries, etc) plus some family fun is currently $35k per year.
When I leave I will receive a yearly pension (indexed) of ~$18-24k. We expect to have ~$50k invested which we don't plan on touching.
I'm looking for the support of family and friends but having trouble explaining to them what our lives will look like outside.
Well off family can't seem to understand life under $100k, never mind $50k. If we only need $35k to live on, and my pension provides $20k net, then I only need enough to net another $15k right?
I know, the math feels stupid simple but no one beside my wife seems to get this. There are just questions about how I'll earn a living. We have side gigs we're looking at ramping up to make the difference, plus the military will pay for more education (trade training, whatever) so I've been considering a part time gig. But if we're only talking about netting $15k I don't feel like this is a difficult amount to earn.
When it comes down to it I'm not mentally capable of working 40 hours a week. Time with my family helps me a lot. I really want to be able to work part time to make enough money to live on for the next few years, plus work towards earning more to increase our investments towards FI.
Am I out of it? Will we be unhappy living the luxury of $35k? Will it be impossible to earn $15-$20k from part-time work doing things I enjoy?
Worried about our future, in need of reassurance, and wondering if we're being unrealistic.
Andrew