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Is this a reasonable financial plan? - Spend all of your money every few years?
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Ok, the title is intentionally a bit facetious. But a bit about my current situation.
I live in Europe (a high cost of living country) and save around 10,000 Euros per year. I have been doing this for 2 years, so have around 20,000 in cash, but I also have just over 10k in equity in my house.
I have always disliked the 9 - 5 lifestyle, but do not have the mentality to become an entrepreneur. At the same time, I don't want a 'deferred life' plan, of building up a pension and waiting until I'm 70 to live what's left of my life.
So, I would like to ask if the below is a viable plan, if anyone else is doing something similar and if there are any obvious massive pitfalls?
- Work for 2 - 3 years at a time, save up 20 - 30k.
- Take 2 - 3 years off work, travel the world on a budget, stay in hostels, live frugally, learn new skills and just generally enjoy life, (all the while not working and spending most of the savings).
- Repeat steps 1 and 2 until graveyard time.
Pros that I can see:
- No 'deferred life', live 2 - 3 year bursts of retirement while still young (I am 30).
- A couple of years off work should not be enough to deter employers, when it comes time to look for employment again (I am a software dev).
Cons:
- No long-term savings or investments
Thanks in advance!
savings retirement retirement-plan travel early-retirement
asked 1 hour ago
Cloud
1,4803515
add a comment |Â
up vote
2
down vote
favorite
Ok, the title is intentionally a bit facetious. But a bit about my current situation.
I live in Europe (a high cost of living country) and save around 10,000 Euros per year. I have been doing this for 2 years, so have around 20,000 in cash, but I also have just over 10k in equity in my house.
I have always disliked the 9 - 5 lifestyle, but do not have the mentality to become an entrepreneur. At the same time, I don't want a 'deferred life' plan, of building up a pension and waiting until I'm 70 to live what's left of my life.
So, I would like to ask if the below is a viable plan, if anyone else is doing something similar and if there are any obvious massive pitfalls?
- Work for 2 - 3 years at a time, save up 20 - 30k.
- Take 2 - 3 years off work, travel the world on a budget, stay in hostels, live frugally, learn new skills and just generally enjoy life, (all the while not working and spending most of the savings).
- Repeat steps 1 and 2 until graveyard time.
Pros that I can see:
- No 'deferred life', live 2 - 3 year bursts of retirement while still young (I am 30).
- A couple of years off work should not be enough to deter employers, when it comes time to look for employment again (I am a software dev).
Cons:
- No long-term savings or investments
Thanks in advance!
savings retirement retirement-plan travel early-retirement
asked 1 hour ago
Cloud
1,4803515
You might want to read the book called A Four Hour Work Week.
– Pete B.
1 hour ago
@PeteB. I've read the summary. It's aimed at people wanting to make their own business though, which I don't.
– Cloud
1 hour ago
add a comment |Â
up vote
2
down vote
favorite
up vote
2
down vote
favorite
Ok, the title is intentionally a bit facetious. But a bit about my current situation.
I live in Europe (a high cost of living country) and save around 10,000 Euros per year. I have been doing this for 2 years, so have around 20,000 in cash, but I also have just over 10k in equity in my house.
I have always disliked the 9 - 5 lifestyle, but do not have the mentality to become an entrepreneur. At the same time, I don't want a 'deferred life' plan, of building up a pension and waiting until I'm 70 to live what's left of my life.
So, I would like to ask if the below is a viable plan, if anyone else is doing something similar and if there are any obvious massive pitfalls?
- Work for 2 - 3 years at a time, save up 20 - 30k.
- Take 2 - 3 years off work, travel the world on a budget, stay in hostels, live frugally, learn new skills and just generally enjoy life, (all the while not working and spending most of the savings).
- Repeat steps 1 and 2 until graveyard time.
Pros that I can see:
- No 'deferred life', live 2 - 3 year bursts of retirement while still young (I am 30).
- A couple of years off work should not be enough to deter employers, when it comes time to look for employment again (I am a software dev).
Cons:
- No long-term savings or investments
Thanks in advance!
savings retirement retirement-plan travel early-retirement
asked 1 hour ago
Cloud
1,4803515
Ok, the title is intentionally a bit facetious. But a bit about my current situation.
I live in Europe (a high cost of living country) and save around 10,000 Euros per year. I have been doing this for 2 years, so have around 20,000 in cash, but I also have just over 10k in equity in my house.
I have always disliked the 9 - 5 lifestyle, but do not have the mentality to become an entrepreneur. At the same time, I don't want a 'deferred life' plan, of building up a pension and waiting until I'm 70 to live what's left of my life.
So, I would like to ask if the below is a viable plan, if anyone else is doing something similar and if there are any obvious massive pitfalls?
- Work for 2 - 3 years at a time, save up 20 - 30k.
- Take 2 - 3 years off work, travel the world on a budget, stay in hostels, live frugally, learn new skills and just generally enjoy life, (all the while not working and spending most of the savings).
- Repeat steps 1 and 2 until graveyard time.
Pros that I can see:
- No 'deferred life', live 2 - 3 year bursts of retirement while still young (I am 30).
- A couple of years off work should not be enough to deter employers, when it comes time to look for employment again (I am a software dev).
Cons:
- No long-term savings or investments
Thanks in advance!
savings retirement retirement-plan travel early-retirement
savings retirement retirement-plan travel early-retirement
asked 1 hour ago
Cloud
1,4803515
asked 1 hour ago
Cloud
1,4803515
asked 1 hour ago
Cloud
1,4803515
asked 1 hour ago
Cloud
1,4803515
asked 1 hour ago
Cloud
1,4803515
1,4803515
You might want to read the book called A Four Hour Work Week.
– Pete B.
1 hour ago
@PeteB. I've read the summary. It's aimed at people wanting to make their own business though, which I don't.
– Cloud
1 hour ago
add a comment |Â
You might want to read the book called A Four Hour Work Week.
– Pete B.
1 hour ago
@PeteB. I've read the summary. It's aimed at people wanting to make their own business though, which I don't.
– Cloud
1 hour ago
You might want to read the book called A Four Hour Work Week.
– Pete B.
1 hour ago
You might want to read the book called A Four Hour Work Week.
– Pete B.
1 hour ago
@PeteB. I've read the summary. It's aimed at people wanting to make their own business though, which I don't.
– Cloud
1 hour ago
@PeteB. I've read the summary. It's aimed at people wanting to make their own business though, which I don't.
– Cloud
1 hour ago
add a comment |Â
2 Answers
2
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up vote
2
down vote
The very big risk I can see is that you don't plan to retire, ever:
Repeat steps 1 and 2 until graveyard time.
While that might sound feasible now, at a still fairly young age, can you honestly, really say that you'll still be willing (and even able) to work when you're 70? 80? 90?
answered 1 hour ago
Tom Revell
294
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Tom Revell is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
This isn't really an answer. Yes - software development is not strenuous physically.
– Cloud
1 hour ago
@Cloud I'm aware of that (I'm a developer myself). Have you considered the mental aspects of the job though - I'm pretty sure something like Alzheimer's or similar would leave me unable to work even if I was physically fine.
– Tom Revell
1 hour ago
2
When you're young, you think that you'll still be as effective and as efficient in 30-40 years (eg. non strenuous software development) but even if not afflicted with dementia, the mind slows up as the decades add up.
– Bob Baerker
13 mins ago
add a comment |Â
up vote
2
down vote
I can see several problems with your plan:
- Retirement exists for a reason. There are various things that may prevent you from working when you are older:
- You may be less able to work, be it because of physical deterioration of your body or mental exhaustion. And that's just the normal process - if you are unlucky, you might become sick and completely unemployable.
- You are "less valuable" to many employers (at least in their eyes), when you are older. So they might not hire you. Then what?
- People might not hire you when they see your CV, extrapolating that you are going to quit after 2-3 years. It's not the "time off" (that you mention) that deters employers, it's the permanent quitting.
If you are really able to save 1 year's worth of expenses in 1 year of work, just work 2 decades and retire then, with compounding working for you (which it doesn't, if you spend all your savings every couple of years), you may then retire for good.
Or try to find a job/work/occupation that gives you the freedom/adventure/satisfaction you need.
answered 25 mins ago
Weirdo
213
New contributor
Weirdo is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
add a comment |Â
2 Answers
2
active
oldest
votes
2 Answers
2
active
oldest
votes
active
oldest
votes
active
oldest
votes
up vote
2
down vote
The very big risk I can see is that you don't plan to retire, ever:
Repeat steps 1 and 2 until graveyard time.
While that might sound feasible now, at a still fairly young age, can you honestly, really say that you'll still be willing (and even able) to work when you're 70? 80? 90?
answered 1 hour ago
Tom Revell
294
New contributor
Tom Revell is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
This isn't really an answer. Yes - software development is not strenuous physically.
– Cloud
1 hour ago
@Cloud I'm aware of that (I'm a developer myself). Have you considered the mental aspects of the job though - I'm pretty sure something like Alzheimer's or similar would leave me unable to work even if I was physically fine.
– Tom Revell
1 hour ago
2
When you're young, you think that you'll still be as effective and as efficient in 30-40 years (eg. non strenuous software development) but even if not afflicted with dementia, the mind slows up as the decades add up.
– Bob Baerker
13 mins ago
add a comment |Â
up vote
2
down vote
The very big risk I can see is that you don't plan to retire, ever:
Repeat steps 1 and 2 until graveyard time.
While that might sound feasible now, at a still fairly young age, can you honestly, really say that you'll still be willing (and even able) to work when you're 70? 80? 90?
answered 1 hour ago
Tom Revell
294
New contributor
Tom Revell is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
This isn't really an answer. Yes - software development is not strenuous physically.
– Cloud
1 hour ago
@Cloud I'm aware of that (I'm a developer myself). Have you considered the mental aspects of the job though - I'm pretty sure something like Alzheimer's or similar would leave me unable to work even if I was physically fine.
– Tom Revell
1 hour ago
2
When you're young, you think that you'll still be as effective and as efficient in 30-40 years (eg. non strenuous software development) but even if not afflicted with dementia, the mind slows up as the decades add up.
– Bob Baerker
13 mins ago
add a comment |Â
up vote
2
down vote
up vote
2
down vote
The very big risk I can see is that you don't plan to retire, ever:
Repeat steps 1 and 2 until graveyard time.
While that might sound feasible now, at a still fairly young age, can you honestly, really say that you'll still be willing (and even able) to work when you're 70? 80? 90?
answered 1 hour ago
Tom Revell
294
New contributor
Tom Revell is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
The very big risk I can see is that you don't plan to retire, ever:
Repeat steps 1 and 2 until graveyard time.
While that might sound feasible now, at a still fairly young age, can you honestly, really say that you'll still be willing (and even able) to work when you're 70? 80? 90?
answered 1 hour ago
Tom Revell
294
New contributor
Tom Revell is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
answered 1 hour ago
Tom Revell
294
New contributor
Tom Revell is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
answered 1 hour ago
Tom Revell
294
answered 1 hour ago
Tom Revell
294
294
New contributor
Tom Revell is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
New contributor
Tom Revell is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
Tom Revell is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
This isn't really an answer. Yes - software development is not strenuous physically.
– Cloud
1 hour ago
@Cloud I'm aware of that (I'm a developer myself). Have you considered the mental aspects of the job though - I'm pretty sure something like Alzheimer's or similar would leave me unable to work even if I was physically fine.
– Tom Revell
1 hour ago
2
When you're young, you think that you'll still be as effective and as efficient in 30-40 years (eg. non strenuous software development) but even if not afflicted with dementia, the mind slows up as the decades add up.
– Bob Baerker
13 mins ago
add a comment |Â
This isn't really an answer. Yes - software development is not strenuous physically.
– Cloud
1 hour ago
@Cloud I'm aware of that (I'm a developer myself). Have you considered the mental aspects of the job though - I'm pretty sure something like Alzheimer's or similar would leave me unable to work even if I was physically fine.
– Tom Revell
1 hour ago
2
When you're young, you think that you'll still be as effective and as efficient in 30-40 years (eg. non strenuous software development) but even if not afflicted with dementia, the mind slows up as the decades add up.
– Bob Baerker
13 mins ago
This isn't really an answer. Yes - software development is not strenuous physically.
– Cloud
1 hour ago
This isn't really an answer. Yes - software development is not strenuous physically.
– Cloud
1 hour ago
@Cloud I'm aware of that (I'm a developer myself). Have you considered the mental aspects of the job though - I'm pretty sure something like Alzheimer's or similar would leave me unable to work even if I was physically fine.
– Tom Revell
1 hour ago
@Cloud I'm aware of that (I'm a developer myself). Have you considered the mental aspects of the job though - I'm pretty sure something like Alzheimer's or similar would leave me unable to work even if I was physically fine.
– Tom Revell
1 hour ago
2
2
When you're young, you think that you'll still be as effective and as efficient in 30-40 years (eg. non strenuous software development) but even if not afflicted with dementia, the mind slows up as the decades add up.
– Bob Baerker
13 mins ago
When you're young, you think that you'll still be as effective and as efficient in 30-40 years (eg. non strenuous software development) but even if not afflicted with dementia, the mind slows up as the decades add up.
– Bob Baerker
13 mins ago
add a comment |Â
up vote
2
down vote
I can see several problems with your plan:
- Retirement exists for a reason. There are various things that may prevent you from working when you are older:
- You may be less able to work, be it because of physical deterioration of your body or mental exhaustion. And that's just the normal process - if you are unlucky, you might become sick and completely unemployable.
- You are "less valuable" to many employers (at least in their eyes), when you are older. So they might not hire you. Then what?
- People might not hire you when they see your CV, extrapolating that you are going to quit after 2-3 years. It's not the "time off" (that you mention) that deters employers, it's the permanent quitting.
If you are really able to save 1 year's worth of expenses in 1 year of work, just work 2 decades and retire then, with compounding working for you (which it doesn't, if you spend all your savings every couple of years), you may then retire for good.
Or try to find a job/work/occupation that gives you the freedom/adventure/satisfaction you need.
answered 25 mins ago
Weirdo
213
New contributor
Weirdo is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
add a comment |Â
up vote
2
down vote
I can see several problems with your plan:
- Retirement exists for a reason. There are various things that may prevent you from working when you are older:
- You may be less able to work, be it because of physical deterioration of your body or mental exhaustion. And that's just the normal process - if you are unlucky, you might become sick and completely unemployable.
- You are "less valuable" to many employers (at least in their eyes), when you are older. So they might not hire you. Then what?
- People might not hire you when they see your CV, extrapolating that you are going to quit after 2-3 years. It's not the "time off" (that you mention) that deters employers, it's the permanent quitting.
If you are really able to save 1 year's worth of expenses in 1 year of work, just work 2 decades and retire then, with compounding working for you (which it doesn't, if you spend all your savings every couple of years), you may then retire for good.
Or try to find a job/work/occupation that gives you the freedom/adventure/satisfaction you need.
answered 25 mins ago
Weirdo
213
New contributor
Weirdo is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
add a comment |Â
up vote
2
down vote
up vote
2
down vote
I can see several problems with your plan:
- Retirement exists for a reason. There are various things that may prevent you from working when you are older:
- You may be less able to work, be it because of physical deterioration of your body or mental exhaustion. And that's just the normal process - if you are unlucky, you might become sick and completely unemployable.
- You are "less valuable" to many employers (at least in their eyes), when you are older. So they might not hire you. Then what?
- People might not hire you when they see your CV, extrapolating that you are going to quit after 2-3 years. It's not the "time off" (that you mention) that deters employers, it's the permanent quitting.
If you are really able to save 1 year's worth of expenses in 1 year of work, just work 2 decades and retire then, with compounding working for you (which it doesn't, if you spend all your savings every couple of years), you may then retire for good.
Or try to find a job/work/occupation that gives you the freedom/adventure/satisfaction you need.
answered 25 mins ago
Weirdo
213
New contributor
Weirdo is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
I can see several problems with your plan:
- Retirement exists for a reason. There are various things that may prevent you from working when you are older:
- You may be less able to work, be it because of physical deterioration of your body or mental exhaustion. And that's just the normal process - if you are unlucky, you might become sick and completely unemployable.
- You are "less valuable" to many employers (at least in their eyes), when you are older. So they might not hire you. Then what?
- People might not hire you when they see your CV, extrapolating that you are going to quit after 2-3 years. It's not the "time off" (that you mention) that deters employers, it's the permanent quitting.
If you are really able to save 1 year's worth of expenses in 1 year of work, just work 2 decades and retire then, with compounding working for you (which it doesn't, if you spend all your savings every couple of years), you may then retire for good.
Or try to find a job/work/occupation that gives you the freedom/adventure/satisfaction you need.
answered 25 mins ago
Weirdo
213
New contributor
Weirdo is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
edited 10 mins ago
answered 25 mins ago
Weirdo
213
New contributor
Weirdo is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
answered 25 mins ago
Weirdo
213
answered 25 mins ago
Weirdo
213
213
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Weirdo is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
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New contributor
Weirdo is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
Weirdo is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
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add a comment |Â
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You might want to read the book called A Four Hour Work Week.
– Pete B.
1 hour ago
@PeteB. I've read the summary. It's aimed at people wanting to make their own business though, which I don't.
– Cloud
1 hour ago