since Retire at 30 In 2020, Purple traveled the world with her partner.
“I’m very happy,” the 34-year-old said. Online name is “Purple” and maintains her privacy in the media, telling CNBC Make It.
“Some people like to have a lot of structure, and sometimes Retirement is a challenge To them, but I’m very good at doing nothing, relaxing and finding new random hobbies,” she added.
In 2015, inspired by like-minded partners, Purple joined Financial independence and early retirementor FIRE, a movement that aims to retire in 10 years. But thanks to diligent investing and a commitment to low-cost living, she reached her $500,000 investment goal in half the time and retired five years early.
part of her strategy save for retirement Finally saving her savings is to find out how much money she actually has. need to continue living And stick to that amount. Before retiring, Purple found she could live comfortably on about $20,000 a year. She shares the rent with her partner but otherwise keeps her finances completely separate.
Since retiring in 2020, Purple has successfully traveled to 13 countries and 16 U.S. states, learned Spanish, tried new hobbies like bird watching, and met friends and family around the world, all while Spending never exceeded $24,000 in a year.
So far, her most expensive year in retirement is 2023; she has spent a total of $23,290. As of November 2024, she’s still on track to keep her full-year spending at around $23,400, despite traveling to Costa Rica, Canada, Iceland, Switzerland and more.
Here are four strategies that can help Purple stick to her retirement spending goals.
1. Eliminate major expenses
Purple has chosen a nomadic life in retirement, eliminating many of the major expenses that others have. She doesn’t have a house or a car, and she doesn’t have a long-term lease on the property. She also doesn’t have any pets or children.
“When people are surprised by my spending, I like to list the typical major expenses for every household, but I have none,” she said. “Without all that important stuff, it’s pretty affordable for a little old guy like me.”
Her monthly “rent” is usually paid to her Airbnb host, but she also spends some time staying with friends and family or looking after homes.
She said she spent 271 days on Airbnb in 2023, including 70 days with friends and family and 24 days house-sitting. She usually stays in one place for at least a month, often getting discounts on Airbnb accommodations because the site allows hosts Offer weekly or monthly discounts Make a reservation.
2. Travel hacking using credit cards
To get from one place to another, Purple often flew first class. But she doesn’t pay the thousands of dollars some flights can cost.
“If I could find a way to buy something expensive for less, I would,” Purple said.
She said she discovered travel hacking in 2015 — signing up for credit cards to take advantage of rewards — and has since saved thousands of dollars on flights around the world. she Fly first class Fly from Singapore to Sydney, Australia in September 2023 for a fraction of the full price of $4,000.
To get these benefits, she applied for a credit card that had no annual fee in the first year and offered a hefty sign-up bonus. She met the minimum spending requirement, claimed the bonus, paid off the credit card, and closed it 11 months later, just before she was charged the annual fee.
3. Balance expensive locations with cheap locations
Retirement means Purple has the flexibility to book travel and decide how long to stay in any particular location. This flexibility, combined with her travel hacks, allows her to save on airfare without sacrificing comfort.
Likewise, Purple tries to strike a balance between high-cost travel and low-cost or free accommodation. She usually stays for at least a month regardless of the local cost of living, but when she knows she’s going to be in a pricier area for a while, she aims to make her next destination more affordable.
This year, she followed Mexico, a relatively low-cost destination, with Amsterdam, for example, where ticket prices are higher.
4. Spend money on purpose
Since joining FIRE and retiring, Purple has become very intentional with her spending. Early in her advertising career, she frequently spent money on clothes and accessories until she realized these items did nothing to improve her life.
She is now able to “spend lavishly on things that really make me happy,” in part because she only spends money on things that bring her joy, like traveling and dining at nice restaurants.
Even when it comes to bills like phone service, Purple asks herself if the higher price is worth it, and if it’s not, she finds cheaper alternatives.
“Find something that really makes you happy, spend it on it, and save the rest,” she said.
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