Hello all,
The standard MMM philosophy combines a DIY approach to fulfilling daily needs with reliance on the anticipated performance of the stock market to provide money to cover requirements that must be purchased.
One alternative approach that I've wondered about is that of pre-purchasing a lifetime's worth (or many years worth) of needs via strategic purchase of assets.
The most common example is buying residential property to provide for your need for shelter. If the property is part for your use and part rental, you may be able to reach the point of living "rent free" with far less capital than the alternative of saving 25x rent.
Another example is buying solar panels to provide for your energy use. Some states like Oregon have rebates that make solar nearly free. Essentially, you can pre-purchase 25 years of electricity use for just a few thousand dollars. Even in states without such generous rebates, you can easily generate a return of 7-10%. Since most of this return is in the form of avoided cost rather than income, it is tax free.
Each of these strategies can shrink your budget dramatically and therefore shorten your time to FIRE.
Does anyone have other ideas for or examples of pre-purchasing major, continuous life expenses to shrink budgets and accelerate FI?
