Retireearlyfool's Personal Finance Blog

What can $5000 a year get me?

$5000 / 12 = $416 a month = PHP20800 a month.

Imagine in the Philippines the minimum wage is around PHP6000, so with the interest alone I can have 3x the minimum wage. I know its not going to provide all the luxuries that a person may want in their lifetime but its enough to maintain a healthy, happy lifestyle.


Given I already have a new house/cars paid off.

rent/mortgage = $0

food = $100 a month (this will provide me with fresh seafood and the meat i need) - imagine a decent sit down meal can only cost $1 per person.

utilities = $100 (provide for nighttime airconditioning, all day electricity, water)

entertainment / leisure = $75 (movies, billiards, fishing, tennis, endless supplies of DVDs, i need to learn how to play golf)

DSL internet connection = $25 (can't live without it)

Gas for car = $40

I still have $76 left over per month - this can be for miscellaneous expenses - clothing, insurance, etc.

This looks simplistic - but I think its a definite possibility.

My plan is simple - to retire early, and never work again. I have a five year plan to save as much as possible and live of the savings/interests for the rest of my life.

Laughing yet? The plan will look plausible knowing that I'm planning to retire in a tropical island in the Pacific, where the cost of living is very low.

How much do I need to retire for life? (I currently have about 30k in cash and 10k in a retirement fund.) I'm thinking i need about 100k in cash to retire for the rest of my life - tips,comments,help will be greatly appreciated.

I'll use this to help in making my dreams a reality.