Since then Retired at 30 In 2020, Purple is globetrotting with her partner.
“I’m very happy,” said the now 34-year-old Purple goes through online And to maintain his privacy in the media, CNBC tells Make It.
“Some people like to have a lot of structure, and sometimes Retirement is a challenge For them, but I’m very good at doing nothing and relaxing and finding new random hobbies,” she adds.
In 2015, inspired by her like-minded partner, Purple joined Financial Independence Early Retirementor FIRE, a movement with the goal of retiring within 10 years. But thanks to diligent investing and a commitment to low-cost living, he reached his investment goal of $500,000 in half the time and retired five years ahead of schedule.
Part of her strategy in both Saving for retirement And making her savings last was how much money she was realistically calculating Needed to survive And stick to that amount. Before retirement, Purple found she could live comfortably on about $20,000 a year. She splits the rent with her partner, but otherwise keeps her finances completely separate.
Since retiring in 2020, Purple has managed to travel to 13 countries and 16 US states, learn Spanish, try new hobbies like birdwatching, and see friends and family around the world without spending more than $24,000 a year. CNBC Make It.
By far, his most expensive year of retirement was 2023; She spent a total of $23,290. As of November 2024, she’s on track to keep her expenses at about $23,400 a year, despite traveling to Costa Rica, Canada, Iceland, Switzerland and more.
Here are four strategies to help Purple stick to her spending goals in retirement.
1. Eliminating major expenses
Purple has chosen a nomadic life in retirement, eliminating many of the major expenses that other people have. She doesn’t own a house or a car or have a long-term lease on a house. She has no pets or children.
“When people wonder how much I spend, I like to list what the major expenses are for each household, and I don’t have any of them,” she says. “Without those important things, it’s quite affordable for me, who’s a little older.”
Her monthly “rent” is usually a payment to an Airbnb host, but she also spends some time with friends and family or at homestays.
In 2023, he says he spent 271 days at Airbnb, 70 days with friends and family, and 24 days at home. She usually lives in one place for at least a month, often earning her discounts on Airbnb stays, as the website allows hosts. Offer weekly or monthly discounts Booking.
2. Travel hacking with credit cards
To get from place to place, Purple usually flies first class. But she won’t pay thousands of dollars for some plane tickets.
“If I can find a way to get something for less, I’ll do it,” says Purple.
He invented travel hacking — signing up for credit cards to take advantage of rewards — in 2015 and has saved thousands of dollars on flights around the world, he says. she is Flew in first class A $4,000 ticket from Singapore to Sydney, Australia in September 2023 for a fraction of the full price.
To score these deals, they apply for credit cards that don’t charge annual fees in the first year and offer high sign-up bonuses. She hits the minimum spending requirement, collects the bonus, pays off the card and closes it after 11 months, before she’s charged the annual fee.
3. Balancing expensive places with cheaper places
Being retired means being flexible about booking purple trips and deciding how long to stay in any location. That flexibility, along with her travel hacking, allows her to save on flights without compromising on comfort.
As such, Purple tries to strike a balance between high-cost tours and low- or no-cost stays. Regardless of the local cost of living, she usually stays at least a month, but when she knows she’ll be in a more expensive area for a spell, she aims to make her destination less expensive.
This year, they followed up time in Mexico, a relatively low-cost destination, with a trip to Amsterdam, which is on the pricier side.
4. Spending her money purposefully
Since committing to Fire and retiring, Purple has been more deliberate in his spending. Early in her advertising career, she spent money on clothes and accessories until she realized that those things weren’t improving her life.
She is now able to “spend lavishly on the things that really make me happy,” because she is only spending on what brings her happiness, such as traveling and dining out at fine restaurants.
When it comes to bills like her phone service, Purple asks herself if the high price tag is worth it, and if not, she finds a cheaper alternative.
“Figure out what really makes you happy and spend on that and save the rest,” she says.
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