This just came up talking about passive income with an English speaker who wanted me to lay out the specifics of how they could retire 40 years early:
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Take a $9000, 40-hour-per-week in-person ESL job.
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Live on $1000 very comfortably abroad, invest the other $8000 at 5%; index funds are a good option and often outperform 5% returns.
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After one year, you have $96000 invested, returning 4800 indefinitely, $400 USD per month.
That’s enough to live in dozens of countries in a private bedroom with utilities/wifi and afford groceries and data.
- After two years, your return will rise to $9600 per year at 5%, $800 USD per month.
That’s enough passive income to live in most of the world in a private house/condo/apartment with utilities/wifi included with $400 left over for food and entertainment.
If you want to work 20 hours a week instead of 40, it takes 4 years instead of 2, working 10 hours a week takes 8 years.
8 years might sound like a long time, but it’s a lot shorter than 30 or 40 years and you only work 10 hours a week.
You can also blitz 40-hour workweeks 2 months of the year and work 10-hour weeks the rest of the year, there’s a lot of customization to be had.
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You may have misunderstood the math, although you are correct that $56 per hour earns you over $2000 per week.
$56 USD per hour, 40 hours per week
56x40 = $2240 per week.
2240x4 weeks = $8960 per month.
It’s very comfortable living on $960 a month in China.
Invest the other $8000 each month.
After 2 years, 24 months, investing $8000 per month, you’ll have $192,000 invested.
A 5% annual return on $192,000 is $9600 in annual passive income.
That is $800 USD per month.
That’s enough passive income to live in most of the world in a private house/condo/apartment with utilities/wifi included with $400 left over for food and entertainment.
After 2 years, you’re retired comfortably.
Can you please update your comment with an acknowledgement? Your comment is currently misinformation and I’ll have to remove it without an edit or update so that nobody gets thrown off, thanks.
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tldr: that GBG price list is very inaccurate.
Croatia and Hungary are known for being expensive(very tiny countries with severe housing crises), but
even Croatia:
It’s important to remember that most index funds outperform 5%, your actual ESL pay can be higher(my regular tutoring pay was closer to ~70 USD per hour and the highest I’ve received was a little over $100 per hour), and 2 years is not a deadline.
Work 6 more months and have $1000 in passive income. Every month, your leftover income can be reinvested and your passive income will create a little more passive income.
The property guide you’ve provided focuses on a few population centers around the world, a miniscule sample of the housing market.
List claims 1-br in Medellin is $860 per month.
Real world, private 1-br apartment in Medellin is $369 per month:
List claims 1-br in Mexico City is $1290 per month.
Real world, private 1-br apartment in Mexico city is $275
Casablanca, notoriously expensive city, $900 on the list.
Real world: private 1-br apartment in Casablanca is $423:
and $256 in other Moroccan cities