My Wife and I hit Coast FIRE number which is close to $500,000 this year, allowing us to quit our 9-5 jobs, move abroad to China, and more fully pursue our passions in life at age 26.
You may be asking yourself, what is this Coast FIRE term exactly?
In a nutshell, Coast FIRE is a popular retirement strategy involving saving enough money so your nest egg can grow without additional contributions. Once you reach Coast FIRE, you no longer need to work to save for retirement; instead, you only work to pay for current living expenses. This allows you to enjoy a more relaxed lifestyle and focus on activities you enjoy rather than working simply to earn a paycheck.
Before breaking down our $500,000 net worth, I want to share some interesting statistics.
The average net worth by age for Americans
Let’s see the average net worth by age for Americans according to CNBC.
For those under age 35, the average net worth of Americans is $76,300.
For those ages 35 to 44, the average net worth of Americans is $436,200.
For those ages 45 to 54, the average net worth of Americans is $833,200.
For those ages 55 to 64, the average net worth of Americans is $1,175,900.
For those ages 55 to 64, the average net worth of Americans is $1,217,700.
For those ages 75 and above, the average net worth of Americans is $977,600.
Our Net Worth Breakdown
Now let’s take a closer look at our net worth broken down into 7 categories.
1) US Checking Accounts: $5000
Not much to add here, we have about $5,000 cash sitting in our checking accounts in the US.
2) China Bank Accounts: $3100
We currently have around 20,000 CNY which is $3100 in our China bank account. If you wonder how much it costs to live in China, you can check our other blog post – Cost to Semi-Retire in China (Our First Month Expenses).
3) High Yield Saving Account: $21,000
We have one high-yield saving account, which acts as our emergency fund.
Having an emergency fund gives us peace of mind. For example, we have rental properties in the US and if something happened, we have money to fix it.
Actually, we have $40,000 total because of the Biden student loan refund. We put it there to receive higher interest payments. Once we know if the forgiveness part will pass or not we know how to use this money. We don’t account this as our net worth since we don’t know the final results yet.
4) Retirement/Tax-Advantaged Accounts: $100,000
These include all of our Roth IRAs, HSA, Rollover IRAs, etc. Even though after hitting Coast FIRE you can choose to stop investing, we still want to max our IRAs if possible so our nest egg can grow even larger.
5) Brokerage Accounts: $2,300
In Robinhood, we did some higher risk investing like crypto, but only a very small bit compared to the rest of our net worth. As you know recently the market has not been very good so the value dropped a lot!
6) Single house rental Property: $200,000
We built a single-family house and finished the basement and yard after we moved in. In total, it is 0.12 ace with 2300 sqft. 4 bedrooms and 3.5 baths.
When we move to China, we decided to rent it out.
The total home value now minus the loan we have is about $200,000, which is our equity.
7) Condo Rental Property: $150,000
We have another rental property which is a cozy 3 bedroom/2 bath condo.
We checked condos in the same community and can say we have at least $150,000 house equity in it.
Side note: when calculating net worth for home loans you take the current market value minus what you owe on the loan.
TOTAL: $481,400
“When you invest, you are buying a day that you don’t have to work.”
Aya Laraya
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Disclaimer:
We hope the information in this article provides valuable insights to every reader but we, the Biesingers, are not financial advisors. When making your personal finance decisions, research multiple sources and/or receive advice from a licensed professional. As always, we wish you the best in your pursuit of financial independence!
Today I will briefly explain why my wife and I decided to quit our 9 to 5 jobs and semi-retire abroad. Then I will share our main income streams and what those look like in terms of monthly cash flow.
Why take the plunge and quit our day jobs?
We hit our Coast FIRE number (which was 500,000) at ages 26 and 29 late last year. At that point, we knew that our investments or nest egg would continue to grow and be large enough at retirement age for us to retire, EVEN without us contributing anything. All we needed was enough to cover monthly expenses.
On top of that, we have an entire year’s cost of living saved and have a fully funded emergency fund. For these reasons, amongst others, we decided to make the huge decision to quit our 9 to 5 jobs and semi-retire abroad!!
The goal now is to build pursue our passion for building this online business to help inspire and help others achieve FIRE. If we don’t happen to make enough money from our online business, we always have the option to find some part-time work here in China.
Although we have money from our income streams to help cover daily expenses in China, we want to increase our income to continue maxing out both of our IRAs each year and continue contributing to our kids’ education funds (529 accounts).
Our income streams
Our two main income streams can be broken into two categories: rental income and influencer income.
We technically have investment dividend income and high-yield saving account interest payment income but those are basically re-invested so I will not count them today.
Rental Income
Currently we have two properties being rented out in Utah. The first one is a condo and the second property is a single family home.
We have a good friend who owns her own property management company so we decided to have her be our property manager for both of our properties.
After property management fees, HOA, and mortgage payments, the total positive cash flow we have from both properties is $900 per month. In Chinese money (yuan) that is about ¥5,850.
Influencer Income
This category includes our social media and online presence such as our blog, YouTube channel, and social media accounts in China. In total these combined is giving us $400 a month or ¥2,600 yuan.
Honestly the majority of this income is coming from my Wife’s Chinese social media platforms.
We are still working hard to create valuable content on YouTube so we really appreciate your support. A like and subscribing both go a long way to help us grow and reach more people!
The reason we decided to build a YouTube channel, blog, and social media is due to the low cost of starting. There is also the added benefit of flexibility and being able to work anywhere and anytime, not to mention no work drama and can be our own bosses. haha
Even after hitting full FIRE one day, we would love to keep sharing on these platforms!
Conclusion
The total amount of positive cash flow we get from all income streams each month is $1,300 USD. I know that doesn’t seem like a lot, but it is enough to cover our expenses while living abroad in China. This amount wouldn’t full cover our living expenses in America though, haha.
Since we’ve hit Coast FIRE we have the flexibility to work where we want and on what we want. It’s our hope that we can continue to improve, we still have a lot to learn and want to help others better understand and manage money to achieve financial peace!
Hello everyone and welcome back to our Biesinger FIRE Journey blog. In today’s post, I’m excited to share with you the breakdown of our expenses here in China for the month of March (2023).
Just a side note that hitting Coast FIRE, quitting our 9 to 5 jobs, and moving abroad has been such a fun journey and we’re excited to share it with you.
Without further ado, let’s jump into each of our expense categories! The currency type mentioned here is USD (just an FYI).
KID’S EXPENSES: $798.3
The expenses for our kids were unusually high this month because we purchased year-long fun center passes; one for our son and one for our daughter.
At first, we just got a pass for our 2-1/2 old son but quickly found out that our 1-year-old daughter also really liked the fun center. The reason we didn’t get her a pass at first is that she couldn’t walk yet.
It was actually a very good deal since they have unlimited entries into the fun center and we already have been going multiple times each week. Inside there are tons of fun things our kids can do. 🙂
In March we also spent money on diapers and milk. In China, most things are cheaper than in the US but milk actually costs more than double the price!
My wife runs some Chinese social media accounts so we’ve been fortunate to receive some kid items such as clothes, formula, skincare, and more from brand deals. Our social media accounts in China have been growing much better than in the US, so we always appreciate the support if you’d like to subscribe to our YouTube channel so we can grow here too, and produce more content!
Lastly, we were fortunate to receive some second-hand outfits from neighbors for free! This helped us save a lot of money for our kiddos.
DINING OUT: $138.8
If live or visit China, we HIGHLY recommend using the apps called Meituan and Douyin! These apps provide discounts at tons of places like drink shops and restaurants.
At first we made the mistake of thinking, oh wow everything is cheaper here when compared to US prices, BUT we shortly found out we could save MORE money by using these apps.
We also love going to food streets where the food is typically cheaper, and also so delicious I’m getting hungry just thinking about it.
MEDICAL: $25
This cost came from our daughter needing a vaccine. In China, the vaccine or shot requirements are sometimes different. For example, we want our kids to get all required USA shots so we need to pay ourselves for some of them.
Something really nice though is kids’ wellness checks are free!
RENT/LIVING EXPENSES: $149.
As mentioned previously, my wife has had some success on a few Chinese social media platforms. So we also received some items such as shampoo, skin care, and even pizza from doing brand deals.
This has allowed us to save a lot of money! Another quick shoutout to subscribe to my channel so I can catch up with my wife’s channel lol!
Currently, we are living with my in-laws so they have helped with utilities and also frequently make meals.
Sometimes we try to give my in-laws money but they always refuse. The culture in China is very different, especially since my wife is the only child in her family. They tell us that once they pass away all the money is my wife’s anyway. So we still take care of our personal things like clothes but they have helped us with rent and some food costs.
If you’re curious, rent is actually really cheap in my wife’s city, especially if you’re comparing it to big cities such as Beijing or Shanghai. In my wife’s city, you can rent about anything from between $200-$500. It just depends on how big and luxurious you want.
PHONE PLAN: $25
Our Chinese phone plans are currently on a family plan with our in-laws, but we are covering the cost of my international phone with Google FI. This helps me stay in contact with my family in America.
TRANSPORTATION: $0
While not all people have zero transportation costs, my wife and I fall into the category of not owning a car in my wife’s city here so we just ride electric bikes! Which honestly is very convenient, and FUN!
So in total, our expenses for the month of March amounted to $1,136.10. Make sure to bookmark this website so you can see more updates on our costs of living and semi-retired life abroad! 🙂
The cost for my wife and I to use transportation in China is basically ZERO.
How could this be possible?
What is the typical cost of different types of transportation in China?
No need to fear, I’ll elaborate on the answers to both of these questions momentarily.
Our Transportation Situation in China
While not all people have zero transportation costs, my wife and I fall into the category of not owning a car in my wife’s city here so we just ride electric bikes! Which honestly is very convenient, and FUN!
No matter if China gas prices rise or fall, we’re set with our electric bikes which also don’t need any insurance.
My in-laws already had two electric bikes and two gas motorcycles. Fortunately, we did not have to purchase these, and we don’t drive motorcycles since they require a motorcycle license.
There are actually different types of electric bikes classified by different colors of license plates. Red license plates represent a slower bike and don’t require a license. We drive this kind since we both don’t have licenses, well at least not yet.
Typical cost of electric bike rentals, busses, and taxi services
So there are really nice rental electric bikes located throughout the entire city where we live. If you’re visiting and only planning to stay a short time, then using these rentals is a pretty nice option.
The first 20 minutes only cost 0.30 cents (USD) with every minute after that at 0.15 cents (USD) per minute, not too shabby right?
If you’re planning to stay longer, I’d recommend buying an electric scooter. There are smaller models for as low as 100 USD. If you are looking for more space and comfort, a larger one could be purchased for around $500 USD. One of the electric bikes we ride is 10 years old and just had a replacement battery added. That replacement battery cost $77 USD.
The bus price is also great although we haven’t used it yet since we love driving around the electric scooters. The bus fare can be as low as $0.20 cents (USD) for each ride and go around the city.
There are also services similar to Uber or taxis here in China. The typical cost for a 15-minute ride is only $2 USD in my wife’s city in Southern China. Still, the price is not bad at all.
Although there isn’t a subway where we live, there are many subway stations and options available in other cities such as Beijing and Wuhan (both places we’ve traveled to before). The price is still affordable and it’s a very convenient way of traveling, especially between cities.
Our two-year-old son absolutely LOVES going to the arcade game center here in China, and the costs may surprise you!
Even though my wife and I hit Coast FIRE late last year, we still continue to practice important personal finance habits that helped us hit Coast FIRE in the first place. 🙂
These habits include but are not limited to knowing where our money is coming and going each month and living within a budget. Having this awareness of our money and boundaries on spending helps us stay emotionally and financially happy.
Arcade game center in China (atmosphere and costs)
Now on to this arcade center in my wife’s city in China. The arcade is located in one of the many large and luxurious malls here (even though it’s a smaller city, the malls are still so big and fancy haha).
There are many types of arcade games from water guns to racing cars. The atmosphere is very lively and upbeat for the whole family.
The most awesome part is the cost. I should add that my wife and I are always looking for the best deals when buying practically anything. Those small savings can really add up over time and allow us to invest more in our future.
Recently there was a holiday flash sale that we found where we could get a total of 1,000 arcade coins for the low cost of $60 USD. We plan to use those coins for the ENTIRE YEAR since we don’t use a ton of coins per visit and each game ranges from 1-5 coins each round.
We don’t want our kids to be around those bright screens all day (call us traditional and conservative), so we usually go to the game center when it’s rainy so we have somewhere nice inside to play. It rains a lot in this city we’re in, haha. It’s nice to have this fun option in case of bad weather.
Semi-retiring and moving abroad as a family
When we first started our FIRE journey, we saw many YouTubers that had retired abroad due to a lower cost of living. We saw others that work from home or own their own businesses allowing them to make US dollars and then making those dollars have more buying power by using them in a country with a lower cost of living.
Since we moved to China, we have experienced firsthand the benefits we saw others experience by retiring abroad. The feeling of spending fewer dollars but seeing it buy more is quite amazing! It allows us to enjoy more things, such as buying 1,000 coins at an arcade center!
Make sure to bookmark this website so you can see more on my family’s journey of reaching Coast FIRE and semi-retiring abroad in Asia. 🙂
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