How to Live Summers in Hawaii and Winters in Colorado
I'd love to create a life where I live by the seasons. Something like winter in mountains and summer near the ocean.
I don't think it'll be this way forever, but it's a life I really want to try.
What would that look like? How possible is it? Cause shit, if I can live that way and continue on my path to financial freedom then, "See you later!" I'm out the door. My girlfriend is interested in a life like this too. So let's say we take off on this adventure together.
Let's dig into it and pick two spots.
Winter in Colorado There's an awesome small town in Colorado's Western slopes called Crested Butte. It has many sun-filled days, good snow and some solid mountains. I went out here with my girlfriend last winter. We met a small crew of her friends and had a killer time. So there's already people we'd know in the community.
Summer in Hawaii Which island or town? I'm not sure yet. But it's gotta be on the south coast cause that's the coast that's gunna be getting swell in the summer.
Great. So here's the projected spending I mapped out using the Financial Trail Guides I shared last week:
Hawaii: $1,080/mo (my spending)
Here's a few epic spots I found on Craigslist:
Colorado: $835/mo (my spending)
Cool. So let's assume I work a simple job, like a ski/surf-resort camp and make $15/hr (after tax). That's $2,400/mo.
With income and spending projected it's now obvious that I'll be able to keep a 50%+ savings ratio. That makes the move 100% possible. But shit, I'm still nervous to do it. Would living a lifestyle like this really be O.K.? As you know I'm very keen on reaching the point where my passive income covers my spending well before I'm 40. Will this derail my hope? Would I still have options down the road?
Let's say I live this lifestyle for a year. I will make $28,000/yr. And I will spend $12,000 to keep it simple. That means I'm still dumping $16,000/year into my stash. That's pretty damn good for such a mellow plan!
What if I love it so much I decide to live this winter in the mountains and summer in the islands lifestyle forever? Or maybe I'd want to come back to it in the future. How much money would I need to do it financially independent?
There's this very easy rule called The 4% Rule. It states that you can withdrawal 4% from your investments each year and your portfolio will never deplete. Ever. I'll explain it in depth later. If you're curious read this epic MadFIentist article.
Another way to see this (after some algebra) is once you have 25 times your yearly spending you have enough money to be financially independent forever. (.04 * X = 1, X = 25)
So to be financially independent living this mountain/island lifestyle I've outlined I need $12,000 x 25 = $300,000. How long would that take?
Let's assume I have $10,000 in debt, bomb out there today, and start this lifestyle in Colorado tomorrow. I would reach $300,000 in about 12 years and 10 months! Just living as a ski and surf bum!
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And just for those of you who may want to consider adding a spouse to your own picture... if we add in my girlfriend working a simple 4 days a week at $15/hr together we'd make $4,320/mo and have expenses of about $1,700/mo. This powers us to stash $31,440 per year! We'd have $300,000 in only 8 years. And in 12 years and 10 months we'd have $660,000!
What about travel costs? I'd use some credit card travel hacking to make those plane tickets be 100% free. It's so easy (and legal and safe) it's stupid. I'll explain how to make your air travel free soon too.
Could you image being $10,000 in debt and someone saying, "Want to have $300,000 in your bank account? Great. The only catch is you have to leave tomorrow. We will shred blue-bird powder in the winter and flow through warm water barrels in the summer for the next 12 years." I'd say Let's go!
It's also exciting because what I outlined is such a simple life. It'd be very easy to start a career like this, work hard, and move your way into higher income. But you don't really even need to, unless it's what you really want. Once you understand your spending you have full control to lead your life exactly how you want.
Welp, looks like the door is open. All I've got to do is muster up the cahones to get out there and do it!
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