The Money Mustache Community
General Discussion => Welcome and General Discussion => Topic started by: moment on September 18, 2016, 09:20:48 PM
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Hi,
I'm 35 and have a stash of $700k. My goal is $1.5M. But I want to quit my job and live off my stash already.
How can I use my stash to earn enough to live, while still growing it over time towards my goal?
I don't mind working for myself, for instance flipping houses (which I like), or any other form of side business (ideas/inspiration welcome). I can also move back to Spain where cost of living is much lower, and carry my business over there.
Any advice on using my stash to earn a living while still growing it? What numbers should I consider?
Thanks!
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You never said how much you spend in an average month, or at least how low you could get your spending. It's quite likely that if you spend 4% of your stache that it will end up growing in future, but if you can drop your spending low enough, like 3% it's almost guaranteed to grow.
Anything extra you can do by working part time etc will just increase the chances of you hitting your goal, eventually.
Ps. I'm in a similar boat, I'd like to hit a million dollars, but work keeps getting in the way of all the adventures I want to have! I could live on 2% and my side gig and then just wait it out until growth gets to me, but keep thinking how much faster I can get there if I keep working a little longer.
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A simple way is to earn a minimal income to sustain your living expenses and not touch your stash. At 5-7% average return, it'll take 11-16 years to grow from 700k to 1.5M.
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A simple way is to earn a minimal income to sustain your living expenses and not touch your stash. At 5-7% average return, it'll take 11-16 years to grow from 700k to 1.5M.
This^
If you can get your WR to less than 4% by earning money on the side part-time you can semi-fire and still increase your balance. You're really 1-2 good bull markets away which is probably 15-20 years given growth (hampered a bit by you living on a smaller subset of that growth)
Other than that, it really is somewhat simple math....no magic formula. Keep it invested aggressively..
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Hi there, you should make a 'case study' topic!
http://forum.mrmoneymustache.com/ask-a-mustachian/how-to-write-a-'case-study'-topic/
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This is roughly my plan too. Retire at $625k NW, live for 10+ years on 2-3% and/or side-gig, casual jobs as required. Reassess lifestyle and personal goals at 1 million NW.
Ps. I'm in a similar boat, I'd like to hit a million dollars, but work keeps getting in the way of all the adventures I want to have! I could live on 2% and my side gig and then just wait it out until growth gets to me, but keep thinking how much faster I can get there if I keep working a little longer.
No kidding!!!!