We began planning 10 years..yes I said 10 years before we both were retired and ready to start our great adventure.In 1996 , actually 1995 we said ..were do we want to be financially in October of 2006 When Helen retired.We developed a course of act ion that included paying off all credit cards and small outstanding loans. We wanted to have as little outstanding debt as possible. We adjusted our investments for maximum return. We examined our Quicken categories to see what expenses we could eliminated or cut back on.We knew we would have at least a 25% reduction in income so we started to reduce spending and expenses by that amount before we retired.Economic conditions changed during that period and I took a job driving a bus to replace lost income and then some. Yes there are always unforeseen circumstances along the way but if you have a plan it is easier to adjust it that having no plan at all.

We were successful in being were we wanted to be in Oct of 2006. It did not happen by chance.It took planning and dedication to a plan and hard work.It is good to look at what others have done and what they spend it should not deter but help you in your course of action.

Like Rich and some others we also planned many years ahead of time for our fulltiming. We "knew" we wanted to be fulltimers about 10 years before we started. We always lived WELL below our income levels....in our case we lived on around 25% of our earned income. So we did not really have to adjust "much". But we did work out a budget and then tried to live on a "housing version" of that budget. Debt was never an issue for us, because we are of the thought that if you can not buy it outright then you don't need it. With the exception of primary housing.

The advice to try to live on your proposed budget now - as much as is practical - is good advice. We did it, and many successful fulltimers I know did the same thing. There must be something to it....

Like Rich and Jack we planned many years in the future.We also had an exit plan in case full timing didn't work out,which it didn't. I see you have somewhat of an exit plan also so you are on the right track.Good Luck

The bottom line is that you will spend your money just the same way you do now. If you eat out 4 times a week you will porbable do the same thing. If you go to the movies every week you might do the same thing....etc, etc, etc.

So look to what you spend money on now...will it work on 25K a year? Only you will konw that. I suspect that many are doing just fine on an amount close to 25K or even less.

The full timing decision yes or no should be a decision made with great care.Folks who are full timing tend to defend it and there is nothing better. Those who do not tend to do the same thing with their decision not to. I was pro full timing. Wife not so much.We gave it a one year try.At the end of that year we were both on the same page.We both liked it but also both liked the S&B life style. In our case we found a way to do both and live the best of both lifestyles.

IMO full timing is a great lifestyle but one must not burn the bridges behind them till they are sure it is a lifestyle suited to them.

  On 2/12/2013 at 10:18 PM, richfaa said:

We began planning 10 years..yes I said 10 years before we both were retired and ready to start our great adventure.In 1996 , actually 1995 we said ..were do we want to be financially in October of 2006 When Helen retired.We developed a course of act ion that included paying off all credit cards and small outstanding loans. We wanted to have as little outstanding debt as possible. We adjusted our investments for maximum return. We examined our Quicken categories to see what expenses we could eliminated or cut back on.We knew we would have at least a 25% reduction in income so we started to reduce spending and expenses by that amount before we retired.Economic conditions changed during that period and I took a job driving a bus to replace lost income and then some. Yes there are always unforeseen circumstances along the way but if you have a plan it is easier to adjust it that having no plan at all.

 

We were successful in being were we wanted to be in Oct of 2006. It did not happen by chance.It took planning and dedication to a plan and hard work.It is good to look at what others have done and what they spend it should not deter but help you in your course of action.

That's some consolation for us. We started last year and we both retire in 2018 (five more years) and we retire one month apart. My wife's medical will stay with us for life so that's covered. We have no debt other than the new truck and 5th wheel (which will almost be paid off when we start). We've already down sized from the large home to a much smaller home so we've cut all utility costs in half. The car will be paid off in a couple more years.....we'll sell that when we go and put that into savings. Until then, we just continue on the savings path.

These kinds of threads surface every so often. There are probably a dozen or so one could find in the archives, maybe more. (I haven't looked, just remembering.)

The interesting thing is, if you think you can make it on $25k / yr, you probably can. And if you think you can't make it on $25k / yr, you probably can not.

I have a retired pastor friend who decided years ago that they'd save up with the intention that for one year, they'd simply volunteer their services to their community, their neighbors, whoever needed them. Kind of a neat idea, I thought. They had planned to do it for one year. Interestingly, their funds held out for around 7 years before either of them sought any employment of any kind.

I've also known of people earning over six figures that couldn't seem to manage to spend less than what they earned. I know a couple like that right now and if they ever lose their jobs, they're in a world of hurtin' cause most everything they own is mortgaged to the hilt and borrowed against to the nth degree.

We can only share our personal experiences. Only we know what is acceptable and unacceptable to us. One man's feast is another man's famine. One man's trash is another man's treasure. How much will it cost you to eat dinner tonight? $200? Or $20? Or $2? Will you be satisfied if you spend $200? Will you be filled and satisfied with $2 worth of food for your meal? The answer could be "Yes" to either... or "No" to either. If ya happen to like rice & beans, you have a lot better shot of living good on less than if you can't live without the champagne and caviar.

Sincerely, best of luck as you figure it all out.

Brian

Good post, Brian.