Giving up work.........
Discussion
Sitting in the pub on the weekend whilst a bit p**sed with some mates we were all having a grumble about work. Somehow the conersation got around to how much you'd need in the bank to give up work completely.
A few beer mat calculations later, I figured that providing one was prepared to live in Eastern or Southern Europe and visit the UK by cheapish means about £120,000 should do the trick, invested in a suitable portfolio that should provide a steady stream of inflation linked dividend income in the region of £6000pa :)
This of course assumes that you don't/ aren't inteding to have kids, get married etc. and have bought the place you live in outright.
It's quite tempting really, just relax, see the amazing sites of Eastern/Central/Southern Europe etc, and enjoy this one life.
A few beer mat calculations later, I figured that providing one was prepared to live in Eastern or Southern Europe and visit the UK by cheapish means about £120,000 should do the trick, invested in a suitable portfolio that should provide a steady stream of inflation linked dividend income in the region of £6000pa :)
This of course assumes that you don't/ aren't inteding to have kids, get married etc. and have bought the place you live in outright.
It's quite tempting really, just relax, see the amazing sites of Eastern/Central/Southern Europe etc, and enjoy this one life.
timmy30 said:
Sitting in the pub on the weekend whilst a bit p**sed with some mates we were all having a grumble about work. Somehow the conersation got around to how much you'd need in the bank to give up work completely.
A few beer mat calculations later, I figured that providing one was prepared to live in Eastern or Southern Europe and visit the UK by cheapish means about £120,000 should do the trick, invested in a suitable portfolio that should provide a steady stream of inflation linked dividend income in the region of £6000pa
This of course assumes that you don't/ aren't inteding to have kids, get married etc. and have bought the place you live in outright.
It's quite tempting really, just relax, see the amazing sites of Eastern/Central/Southern Europe etc, and enjoy this one life.
chap i know lives in poland for 9 months of the year just chillin and comes back does 3 months work ( nothing flash driving instructor i think )which pays for it. his house was 9k out there
billb said:
chap i know lives in poland for 9 months of the year just chillin and comes back does 3 months work ( nothing flash driving instructor i think )which pays for it. his house was 9k out there
It really is tempting especially given the scope for asset inflation out there. That house is going to be worth a dam site more than £9k in 20 years time even in real terms
funinthesun said:
i would say you could live in this country for £10k a year as long as you owned the house you live in outright...and cycled everywhere...
Actually I run two cars and have a relatively debauched lifestyle all for under a grand a month I'd say. Main thing is not to live in London, or have a long commute, my *cking train ticket used to cost £400 a month.
Something I think about a lot!
Was recently on a 2 week camping holiday in France
near La Rochelle, and worked out that I could have actually have lived there forever more. Roughly.
I have £100k in bank after selling house which gives
roughly £375 per month in interest.
So £8 per night in camp site = £240 pcm.
+ Some money for food and wine.
So my £100k should just about see me through till the end.
Bargain.
Bitter'n'twisted said:
Something I think about a lot!
Was recently on a 2 week camping holiday in France
near La Rochelle, and worked out that I could have actually have lived there forever more. Roughly.
I have £100k in bank after selling house which gives
roughly £375 per month in interest.
So £8 per night in camp site = £240 pcm.
+ Some money for food and wine.
So my £100k should just about see me through till the end.
Bargain.
If you plump for a portfolio of utilities you should be able to achieve more like 5% yield, also your capital will increase along with inflation, so it's still worth £100k in 20 years.
Or as the other chap has suggested by a house in Poland/ Slovakia/ Bulgaria etc for £10k, and invest the £90k that way you have only food and bills as monthly outgoings.
Met a guy on the plane back from bangkok once.
He had a franchise that involved refilling machines in pubs. he had it worked out so that in each three months he only had to come back to the UK to do three weeks of work. as he said - he would work like a dog during the three weeks and wouldn't even stop for sleep the day he finished - just went straight to Heathrow and got himself on the next flight to Bangkok.
Apparently he earned pretty good money, lived like a king in Thailand with a beautiful wife who banged him every night.
He had a franchise that involved refilling machines in pubs. he had it worked out so that in each three months he only had to come back to the UK to do three weeks of work. as he said - he would work like a dog during the three weeks and wouldn't even stop for sleep the day he finished - just went straight to Heathrow and got himself on the next flight to Bangkok.
Apparently he earned pretty good money, lived like a king in Thailand with a beautiful wife who banged him every night.
funinthesun said:
If you plump for a portfolio of utilities you should be able to achieve more like 5% yield, also your capital will increase along with inflation, so it's still worth £100k in 20 years.
.[/quote]
true but what are you suppossed to live on between now and 20 years time...?
[/quote] No no no, the annual 5% dividend income is what you live on not the capital appreciation, shares will tend to track inflation over time as there intrisic value is a relfection of the wider economy. So whereas evetually your £100k in the bank will be worth bugga all as inflation has eaten it away, the shares will have appreciated at the same rate as inflation, plus given you an income.
funinthesun said:
ok, now im with you.....B2L?
Buy To Loose? No thank you, I want my capital to appreciate in value.
If the Sunday Times financial section is telling you to do one thing do the bloody opposite, Iv'e been in equities for the past 2 years, and pleased I am too. Now switching from UK & US equities into Germany and Japan.
One of the best ways to live cheaply and be able to travel and see everything too is to buy a motorhome. Mrs BG and I did this in 1989, we sold everything and bought a new motorhome tax free for export. We toured for four years 1990-94, our only expenses were food and diesel. We did everywhere in western and Eastern Europe, North Africa, Scandinavia and Russia and the Baltic States too. We spent a long time in Hungary and the Czech/Slovak republics too because it was so cheap to live. When we got back, our battered high mileage Kontiki sold for £17,000, we had only paid £18,000 for it with the best discount and no VAT on it in the 1st place.
What happens in 20 years time when the economy in Eastern Europe has sped up and prices reflect those in the UK? You will be left with a revenue unable to support your lifestyle with as everything will cost more - obviously you could invest heavily in your chosen country but that has its own risks.
maxf said:
What happens in 20 years time when the economy in Eastern Europe has sped up and prices reflect those in the UK? You will be left with a revenue unable to support your lifestyle with as everything will cost more - obviously you could invest heavily in your chosen country but that has its own risks.
Well youv'e benefitted from appreciation of the house you bought for £10k, lets say to a future real term value of £100k ( if it's anything like the UK ) and you still £100k portfolio which by then will have a significantly higher capital value. So will still be worth £100k in real terms.
Not bad at all I would say.
Oh and by the way, dividends also tend to incease in line with or above the rate of inflation an so unlike a bond your income will keep pace with inflation.
>> Edited by timmy30 on Tuesday 13th September 16:56
timmy30 said:
Well youv'e benefitted from appreciation of the house you bought for £10k, lets say to a future real term value of £100k ( if it's anything like the UK ) and you still £100k portfolio which by then will have a significantly higher capital value. So will still be worth £100k in real terms.
Not bad at all I would say.
But you'll need somewhere to live won't you so the house is taken out of the equation (unless you sell for something cheaper I suppose), and if your investments are based on a UK portfolio they *may* have been outperformed by the increase in wealth in your new country - so you go from having tons of cash to only having a bit.
Just ramblings - I don't know anything about this kind of stuff!
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