How a 34-Year-Old Retiree Travels Full-Time on Less Than $24,000 a Year

Retirement is often viewed as a time to settle down and enjoy a slower pace of life. However, for Purple, a 34-year-old who retired at the young age of 30, it marks the beginning of a full-time globetrotting adventure. Embracing the Financial Independence, Early Retirement (FIRE) movement, Purple has mastered a lifestyle that many aspire to but few achieve.

The Leap to Early Retirement

In 2020, Purple accomplished her goal of retiring early after diligently saving and investing $500,000 in a span of just five years, instead of the planned ten. This milestone was made possible through strategic financial planning and a commitment to low-cost living.

Purple’s Spending Strategy

While many envision an opulent lifestyle post-retirement, Purple focuses on spending wisely to maintain her low-cost living. Here’s how she does it:

• Eliminating Major Expenses: Purple embraces a nomadic lifestyle, foregoing the conventional burdens of homeownership and car maintenance. Without pets or children, she sidesteps significant costs and finds affordable accommodations through platforms like Airbnb and by staying with friends or housesitting.
• Travel Hacking with Credit Cards: Purple employs savvy credit card strategies to fund her first-class flights at minimal costs. By signing up for cards with high sign-up bonuses and no initial annual fees, she maximizes rewards before closing the cards to avoid fees.
• Balancing Costs: Flexibility is key. Purple contrasts expensive destinations with more affordable ones, ensuring her spending remains consistent. A month-long stay allows her to benefit from discounts while freely exploring varied locales.
• Intentional Spending: By focusing only on what brings her joy, such as travel and good food, and scrutinizing her expenses, Purple ensures her money is spent on enhancing her happiness rather than acquiring material goods.

A Year in Review: Travel and Expenses

Purple’s meticulous approach has allowed her to visit 13 countries and 16 U.S. states while learning new skills and reconnecting with friends and family. Despite this extensive travel, her annual spending has never exceeded $24,000.

In 2023, her most expensive year to date, she spent $23,290. This figure includes travels to various countries like Costa Rica, Canada, Iceland, and Switzerland. As of November 2024, Purple’s spending was predictably on track, thanks to her disciplined financial practices.

Lessons from Purple’s Journey

Her approach offers valuable insights for those looking to manage their finances post-retirement or for anyone aiming to lead a fulfilling life on a limited budget:

• Plan and Execute: Setting clear financial goals and executing them is crucial. Purple’s early planning enabled her early retirement success.
• Adaptability: By remaining flexible in her financial and travel plans, Purple exemplifies how adaptability can lead to fulfilling experiences without unnecessary expenditure.
• Focus on Happiness: Evaluating what truly brings happiness and prioritizing spending on those things safeguards financial resources.

Conclusion

Purple’s journey shows that it’s not just about the amount of money you have, but how you choose to use it. Her ability to retire early and maintain a happy, travel-filled life on less than $24,000 a year presents a compelling case for reconsidering traditional retirement and spending methods. Whether you aim for early retirement or want to improve your spending habits, Purple’s story provides a roadmap for a content, fulfilled, and financially independent life.

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Source: https://www.cnbc.com/2024/12/05/i-retired-early-and-travel-full-time.html