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!
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.
Have you heard about the new way to retire early? It’s called semi-retiring!
If you’re nearing retirement age or are already retired, you may be thinking about ways to reduce your workload and enjoy a more relaxed lifestyle. Semi-retiring may be the perfect solution!
Everything in life seems to be redefined, and retirement is no different. The traditional retirement, where you retire at age 65 and then do nothing but relax, is no longer the only option.
What is Semi-Retirement?
Semi-retirement is a retirement option where you continue working at a reduced schedule. This could mean working part-time, or it could mean working fewer hours each week.
Basically, with semi-retirement, you’re still working, but you’re not working as much as you used to. This allows you more time to enjoy your retirement without completely giving up your income.
You should note that semi-retirement is different from downsizing, when you reduce your hours or take a pay cut to have more free time. With semi-retirement, you’re still earning the same salary, just working fewer hours.
There are several reasons why someone would choose to semi-retire. Here are some of the most common reasons:
1. They want to enjoy their hobbies and pursuits more
Everyone wants to have more time to enjoy their hobbies and interests. With semi-retirement, you can have that extra time without worrying about money.
As you get older, you may find that your hobbies and interests change. This is natural! Semi-retirement gives you the time to pursue new hobbies or rediscover old ones.
2. They want to spend more time with family and friends.
One of the best things about semi-retirement is that it gives you more time to spend with your loved ones. If you have kids or grandkids, you’ll finally have the time to attend their sporting events or go on family vacations.
You may also find that you have more time to spend with your friends. So whether you want to go on day trips or just have coffee together, semi-retirement gives you the time to do it.
3. Travel is a top priority
Do you love to travel? If so, semi-retirement is the perfect time to do it! With fewer work obligations, you’ll have more time to explore the world.
You can take longer trips and see more of the places you’ve always wanted to go. Or, you can use your extra time to take shorter trips more often. The choice is up to you!
4. Semi-retirees want to give back
Many people who semi-retire do so in order to have more time to volunteer or give back to their community. If you’ve always wanted to do more volunteering but never had the time, semi-retirement is the perfect solution.
You can use your skills and knowledge to help out at a local school, church, or non-profit organization. Or, you can become a mentor to someone who is just starting out in their career.
5. They’re not ready to retire completely.
For some people, the thought of retiring completely is just too scary. They’re not ready to give up their income or their work identity.
If this describes you, then semi-retirement may be the perfect solution. You can still work and earn an income, but you’ll have more free time to enjoy your retirement.
How to Decide When to Semi-Retire
It all depends on what type of lifestyle you want to live. It’s possible when you hit Coast FIRE, Flamingo FIRE, or Barista FIRE, you can start to see if you can semi-retire and live off of your investments.
There is no magic number for how much you need to have saved to semi-retire. However, it’s generally recommended that you have at least ten times your annual expenses saved before you make the switch.
So, if you spend $50,000 annually, you would need at least $500,000 saved before you could semi-retire. This may seem like a lot, but it’s not as difficult to achieve as you might think.
If you’re disciplined with your spending and invest wisely, you can reach this goal in 10-15 years. And, once you reach it, you’ll have the freedom to semi-retire and live the life you want!
It takes discipline to save up enough money to semi-retire. But, it’s possible to do it. If you’re disciplined with your spending and invest wisely, you can reach this goal in 10-15 years. And, once you reach it, you’ll have the freedom to semi-retire and live the life you want!
What kinds of jobs can you consider for semi-retirement?
Almost any job can be a good fit for semi-retirement. It all depends on how much time you want to work and what type of work you’re interested in.
A Few Ideas to Get Started
1. Freelance work
If you’re looking for a way to semi-retire but still earn an income, freelance work may be a good option. With freelance work, you can often set your own hours and work as little or as much as you want.
You can do several different types of freelancing, from writing and editing to graphic design and web development. And, thanks to the internet, you can often do this type of work from anywhere in the world.
2. Retail is always a good option
Another option is to work in retail. This can be a great way to semi-retire because you can often set your own hours and work as little or as much as you want.
And, since retail jobs are usually pretty physically active, they can help you stay healthy and fit. Just make sure to find a job you enjoy so you don’t hate it!
The downside to retail is that it doesn’t usually pay very well. So, if you’re looking to semi-retire and live a comfortable lifestyle, you’ll need to at least be in a management position or own your own store.
3. Start a small business
If you have an entrepreneurial spirit, semi-retirement may be the perfect time to start your own business. This can be a great way to earn an income while still having the flexibility to work when you want.
Of course, starting a business is a lot of work. And, it’s not always guaranteed to be successful. But, if you have a great idea and are willing to put in the work, it can be a great way to semi-retire and live the life you want.
4. Consulting is always an option
If you’re an expert in your field, you may be able to semi-retire and work as a consultant. This can be a great way to earn an income while still having the flexibility to work when you want.
And, since consulting jobs are usually project-based, you can often pick and choose which projects you want to work on. This can give you a lot of control over your work-life balance.
Of course, the downside to consulting is that it can be feast or famine. You may have a lot of work one month and then very little work the next. So, you need to be prepared for the ups and downs.
5. Teaching is a great option
These days you don’t need a degree in education to teach. There are several different ways you can semi-retire and work as a teacher.
For example, you could work as a tutor, teaching small groups or individual students. Or, you could teach classes online. This can be a great way to reach students from all over the world.
Let’s say that you were a nurse; you could teach at a local community college or even online. There are several different options available to you.
What are the Benefits of Semi-Retirement?
There are a number of benefits to semi-retirement. Here are a few of the most popular ones:
1. You can still earn an income
One of the biggest benefits of semi-retirement is that you can still earn an income. This can be a great way to supplement your retirement savings or help you pay for your lifestyle.
2. You can choose your own hours
Another big benefit of semi-retirement is that you can often choose your own hours. This can be a great way to have more control over your work-life balance.
3. Sometimes you can work from home
Another benefit of semi-retirement is that you can often work from home. If you don’t mind sitting in front of a computer all day, this can be a great way to have more control over your work environment.
You must understand that working from home isn’t as easy as it sounds. It can be hard to stay motivated when you’re not in an office environment.
4. It’s possible to focus on your passions and not just money
Before you became semi-retired, you had to focus on earning as much money as possible. But, now that you’re semi-retired, you can focus on your passions and not just money.
This can be a great way to find more enjoyment in your work. And it can also help you feel like you’re making a difference in the world.
5. It can help you transition into retirement
For some people, semi-retirement can be a great way to transition into retirement. If you’re not ready to retire completely, semi-retirement can be a great way to ease into it.
The idea of sitting around all day doing nothing can be a bit daunting. That’s why for many, retirement is something they dread.
But, with semi-retirement, you can still have a sense of purpose. And, you can still feel like you’re contributing to society.
What are the Downsides of Semi-Retirement?
Of course, there are also some downsides to semi-retirement. Here are a few of the most popular ones:
1. You may have to start at the bottom
It’s possible that you’ll have to start at the bottom in your new career. This can be frustrating, especially if you’re used to a high salary and a lot of responsibility.
2. Your skills may be outdated
Sometimes, people who semi-retire find that their skills are outdated. This can be a problem if you’re trying to enter a new field or start your own business.
3. You may not be able to earn as much money
It’s understandable if you get into an entry-level position and you’re not earning as much money as you used to. Just remember, it’s not about the money. It’s about finding a position that you enjoy and that meets your needs.
4. You may have to relocate
If you want to semi-retire, you may have to relocate. This can be a hassle, especially if you have a family.
5. You could feel like you’re not really retired
For some people, semi-retirement can feel like you’re not really retired. And that can be a problem if you’re at a point in life where you want to wind down. It’s easy to find yourself working more hours than you want to.
Conclusion
Semi-retirement can be a great way to enjoy the best of both worlds. You can still earn an income and have more control over your work-life balance. Just remember, there are also some downsides to semi-retirement. So, make sure you weigh the pros and cons before deciding.
For many, the decision to semi-retire is a great way to enjoy a more relaxed lifestyle. But it’s not for everyone. If you’re not ready to retire fully, semi-retirement could be an excellent option. But, if you’re at a point where you want to wind down, semi-retirement may not be the best choice.
It’s all about where you are in life and how you’re doing financially. Talk to a financial advisor if you’re unsure whether semi-retirement is right for you. They can help determine if semi-retirement is a good option for you.
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!
There are also many paths to FIRE, and that’s a good thing! By reading this article, you too may find a type of FIRE strategy suitable for your life and circumstances.
So, what are the different types of FIRE? Let’s take a closer look.
This post may contain affiliate links; please see our disclaimer for details.
Traditional FIRE / Regular FIRE
The traditional FIRE movement is about saving as much money as possible and investing it in a diversified portfolio of stocks and bonds. The goal is to reach a point where your investment or nest egg returns are enough to cover your living expenses, so you can “retire” from paid work (although you may still choose to work part-time or volunteer).
This approach is often called the “4% rule” because it’s based on the idea that you can safely withdraw 4% of your portfolio each year, adjusted for inflation.
So, if you have a $1 million portfolio, you could theoretically withdraw $40,000 per year ($1 million x 0.04) and never run out of money.
Of course, there’s no guarantee that the markets will always cooperate, and you may have to adjust your spending if there’s a major market downturn. But over the long run, this approach is quite successful.
The best thing about traditional FIRE is that it’s relatively simple to understand and implement. And, if you start early enough, you can reach this type of FIRE with a fairly modest savings rate.
Lean FIRE is similar to traditional FIRE but with a twist. The goal is still to save as much money as possible and invest it in a diversified portfolio. But instead of aiming for the same amount of expenses, the goal is to retire with a lower lifestyle than you have today.
This could mean retiring to a smaller house, driving an older car, or giving up some of your hobbies and travel. The idea is to reduce your costs to reach FIRE with a smaller nest egg.
Lean FIRE is an excellent option for people willing to make some lifestyle changes to retire early. And it can also be a good choice for people who are risk-averse and don’t want to rely entirely on investment returns to fund their retirement.
Fat FIRE
Fat FIRE is the opposite of Lean FIRE. Instead of retiring on a leaner lifestyle, the goal is to retire with the same (or even a better) lifestyle as you have today. To do this, you’ll need to save a lot of money and invest it in a way that generates high returns. This could mean investing in growth stocks, real estate, or other assets that can generate a high return on investment.
Fat FIRE is a good option for people willing to take on more risk to retire with a better lifestyle. It’s also a good choice for people who want the flexibility to retire early and then go back to work if they want to.
Let’s be honest the average person isn’t going to be able to save enough to retire on a fat FIRE lifestyle. But, if you have a high income and are willing to take a few gambles, it’s possible.
Obese FIRE
Obese FIRE is similar to Fat FIRE, but with one key difference. Instead of retiring with the same lifestyle as today, the goal is to retire with an even better lifestyle.
Some of you might be thinking, “Isn’t that just called rich?” And, well, yes. But the term “Obese FIRE” is usually used to describe people who are retiring with a lifestyle that is far above their current lifestyle.
This could mean retiring to a private island, buying a yacht, or just living in a mansion. But, basically, it’s any lifestyle that most people would consider to be unobtainable.
Obese FIRE is only an option for a very small number of people. But if you have the income and the investment returns to make it happen, more power to you!
Everyone dreams of retiring early and living a life of luxury. It may be your goal; however, it’s essential to know that if it isn’t your reality, that’s okay too!
It’s perfectly fine to live your life in the clouds as long as your feet are firmly placed in reality. So, if you’re planning to achieve obese FIRE, make sure you have a solid plan in place and that you’re prepared for the possibility that it may not work out.
Coast FIRE
Coast FIRE is a strategy for financial independence that involves saving as much money as possible over a short amount of years, then living off the interest once you reach your goal. With Coast FIRE, you save until you reach a predetermined amount by a specific age, at which point you stop saving and let compound interest “coast” you to your desired retirement nest pile.
You could quit your preparatory work and instead take on a part-time job or establish passive income streams to live off of after reaching your financial independence goal, perhaps 80% there. This would allow you to meet life’s essential expenses.
Coast FIRE is a great way to get off to a fast start with active saving and investing, and it can help you achieve financial independence sooner than you might think.
Flamingo FIRE is a new concept that is quickly gaining popularity. The name comes from the Money Flamingo blog, which discusses various ways to achieve financial independence.
Flamingo FIRE refers to the three stages of retirement: semi-retirement, early retirement, and standard retirement. In the first stage, you work full-time to develop a nest egg by saving and investing.
You enter semi-retirement when you reach half of your FIRE number. During those ten years, you don’t need to invest. You can retire if it doubles in 10 years. After that, you can work part-time or a less-paying job that makes you happy till then. Twenty-five times your estimated living expenditures is full FIRE, stage 3. This final stage is when you are truly retired and no longer working.
The Flamingo FIRE concept is an innovative way to think about retirement. It could be an excellent option for those looking for an alternative to the traditional retirement plan.
Barista FIRE
Barista FIRE is where you’re working part-time to pay for healthcare and whatever costs you encounter. For many people, healthcare is their largest expense in retirement.
Paying for healthcare is one of the biggest financial challenges that Americans face. In fact, healthcare costs are one of the main reasons why people say they can’t afford to retire.
One way to pay for healthcare in retirement is to work part-time. This is what’s known as Barista FIRE.
With Barista FIRE, you’re working part-time to cover your healthcare costs. Once your healthcare costs are covered, you can use the money you’re saving to retire early.
This strategy is becoming more popular as healthcare costs continue to rise. It’s a great way to ensure you have the coverage you need while also giving you the freedom to retire early.
Slow FIRE
Slow FIRE is where you’re working towards financial independence, but you’re not in a hurry to retire. The goal is to reach financial independence, but you’re not in a hurry to quit your job.
It’s a good option for people who want to achieve financial independence but don’t want to retire immediately. It’s also a good option for risk-averse people who want to take a slow and steady approach.
The key to making Slow FIRE work is to find a balance between saving for retirement and enjoying your life. You don’t want to sacrifice your lifestyle today in order to retire tomorrow.
But, if you can find a balance, Slow FIRE can be a great way to achieve financial independence and retire on your own terms.
Fart FIRE (or Fast FIRE)
Fart FIRE is where you’re working towards financial independence, but you’re in a hurry to retire. The goal is to reach financial independence as quickly as possible, so you can quit your job and enjoy your retirement.
If you’re the type who loves to throw caution to the wind, Fart FIRE may be the right approach for you. It’s risky, but it can also be very rewarding.
The key to making Fart FIRE work is having a solid plan. You need to know how much you need to save and how you will invest your money.
You also need to be comfortable with the idea of retiring early. If you’re not ready to retire, Fart FIRE may not be the right approach.
It’s important to remember that when you’re trying to speed up the FIRE process, it’s possible to make mistakes. If you’re not careful, you could end up losing everything you’ve worked so hard for.
So, if you’re going for Fart FIRE, make sure you know what you’re doing.
Which type of FIRE is right for you?
Well, the first thing to do is accept that FIRE is a spectrum. There’s no right or wrong answer. You need to find the best approach for you and your family.
If you’re not sure which approach is right for you, ask yourself the following questions:
What are your goals?
How much risk are you willing to take?
How much time do you have to save?
What’s your lifestyle like?
Do you want to retire early or on your own terms?
Once you answer these questions, you should have a good idea of which type of FIRE is right for you.
If you want to retire early, you’ll need to save more money and take on more risks. If you’re not willing to take on as much risk, you’ll need to save more money and plan for a longer retirement.
It’s important to remember that there’s no one-size-fits-all approach to FIRE. You need to find the approach that works best for you and your family.
Conclusion
Almost all of you reading this will want to go the route of traditional FIRE. It makes sense because it’s the most logical and gives you the most control. You can always adjust your lifestyle later on down the road if you want to, but it’s much harder to do the reverse.
Remember, you don’t have to choose just one type of FIRE. You can use a combination of different types of FIRE to achieve your financial goals.
For example, you could use a mix of traditional and barista FIRE to achieve your financial goals. It all depends on your health, age, and desired lifestyle. Whatever type of FIRE you choose, the important thing is to start working towards your financial goals today. The sooner you start, the sooner you’ll be able to retire on your own terms.
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!
If you’ve seen our recent blog posts, you’ll know that my wife and I quit our 9-5 day jobs after hitting Coast FIRE. I’m super excited to share more with you about our story with the top 14 reasons WHY we decided to move abroad and semi-retire in China.
As many of you know, traveling with kids can be quite a challenge! We have two kids, a two-year-old and a nine-month-old.
It was super easy and everything went perfectly. If you detect sarcasm, you are correct haha.
But actually, it wasn’t too bad since we had an in-flight bassinet and took a red-eye flight.
We took a 15-hour flight and then quarantined for eight days in a hotel because of the China Covid-19 restrictions at the time. You can see here how the hotel was actually really nice, and the time went by pretty fast.
My wife is originally from China and this was the first time her parents got to see their grandkids; it was such a happy reunion. 🙂
Amidst the trials of travel and quarantine with kids, it definitely paid off and was worth it since we are now the dream life!
To be honest, the top reason we decided to semi-retire in China is that we have more help with taking care of our children.
We haven’t talked about this with anyone, including our own family members, but my wife wanted me to share it in this blog post.
My wife suffered from depression since the late stage of her first pregnancy, and it became more serious as time passed.
The original plan was to have my mother-in-law come from China to help when our first baby was born, but due to the covid outbreak, she could not come.
We also ended up having our second baby, but my wife’s depression became more serious. It was very hard to see her struggle on a daily basis.
I want to add that my wife is very strong and insisted on working full-time while taking care of two kids since she wanted to become financially independent to provide us with a better future.
I won’t go into much further on her depression, but moving to China and allowing her to be with the family has been a huge help, and she is doing much better now.
If we had stayed in the US and continued working and investing, our financial situation would be better, but sometimes money isn’t the most important thing in life. Mental health is.
Her situation got to a point where I knew we needed to make a change. So we decided to move abroad to semi-retire in China and fortunately had enough saved in investments to have reached Coast FIRE.
Now we are living in the Chinese culture where grandparents help with grandkids frequently, so we are grateful for this huge help.
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.
That’s why we decided to quit our 9-5 jobs and semi-retire in China!
Yes, if we had stayed in the United States longer, we could have made more money and created a larger nest egg.
But I want my wife to live a happy and healthy life. These things are more important than money.
My YouTube Video Sharing About Coast FIRE
3. Lower Cost of Living
My wife and I really like the concept of FIRE, and we have seen others stories of people who achieved FIRE and chose to live in places with cheaper living expenses.
We don’t necessarily want to fully retire anytime soon because we enjoy working and pursuing entrepreneurial things. We love the concept though of working hard to reach financial independence sooner than later.
So we saw many people on Youtube that hit FIRE and then chose to move abroad to Thailand, Portugal, Bali, etc…
Since moving to China to semi-retire, we have shared many cost of living short videos. If interested, you can follow us on our social media accounts… just search for “Biesinger FIRE Journey”!
For example, in my wife’s city, you can rent a whole house anywhere from $200-$500 depending on how big and how nice the house and community you want.
This rental price is much cheaper than in Utah, where we lived before moving to China.
We currently have two rental properties in Utah, one is currently renting for $1,330, and the other one is $2,200 a month.
This is a perfect example to illustrate how much you can save just on rent in China!
4. Saftey
According to global time, China is “recognized as one of the safest countries in the world” with low harmful crime rates and people’s sense of safety reaching 98.6%!”
I can definitely attest to this since I’ve been to China in the past and have always felt very, very safe.
Even late at night, you will see many people walking around by themselves because they don’t feel in danger.
This is big reason we decided to semi-retie in China because we want our family to grow up in a safe environment.
5. Experience New Cultures
One of the biggest benefits of moving abroad is to experience other countries’ cultures and get to meet new people.
It still blows my mind to think that China has over 5,000 years of rich history! This country has both modern and traditional architecture, making it unique and appealing.
I have always loved Chinese culture, which is why I chose to study Chinese in high school.
Now I can have the opportunity to live in China and really feel the Chinese culture and charm. It’s an exciting time, and meeting the super nice people here is also so fun!
I cannot wait to keep exploring and meeting new friends!
6. Improve Chinese skills
Studying the Chinese language and culture has been a passion of mine for many years. In addition to studying Mandarin in High School, I also served a 2-year Church mission in Asia and came back to the US to graduate with a minor in Mandarin Chinese.
Now that I’m living in China, I have lots of opportunities to speak Chinese with others. The people are so nice here and get really excited when they see I can speak their language.
The city I’m located in now also has its own dialect of Chinese, so I’m working on learning some of that too, wish me luck. 🙂
My next goal is to get a Chinese driver’s license but to do so, and I have to take a test that only has Chinese characters. The rules for driving are similar to the US, but there are quite a few Chinese characters I need to learn before being able to take the test.
Overall I can already tell my language abilities are increasing, and I look forward to learning more!
7. Helping our Business
My wife and I love personal finance so we started this blog to share our stories and insights on pursuing financial independence.
We love sharing videos and tips on our social media accounts too!
Moving to China was the right decision because it has given us more ideas as content creators and made us different.
8. More Fun
We feel the decision to semi-retire in China has been such a fun adventure.
For example, there are many malls, shopping streets, food streets, night markets, and so much more!
Most everywhere also has places to take kids and have children play. So we are grateful to have so many fun activities to choose from!
9. Yummy Food
My wife missed eating authentic Chinese food, especially when she was pregnant with our two children.
There were some Chinese restaurants in Utah, but most of them were Americanized.
We were only able to find real authentic Chinese food when we traveled to other cities such as New York or Los Angeles, but the price there wasn’t cheap either.
I also love Chinese food, such as boiled beef, fried dumplings, Peking duck, boba milk tea, and so on.
It costs about seven dollars to buy a boba drink in the United States, but now it only costs one dollar in China.
Pretty amazing right?
Tips are also not required or common in China. So if you ever have the chance to visit China, make sure to take time to eat the local cuisine!
10. Rent FREE
My wife is the only child in the family, and Chinese culture is very collectivist. In American society, many children must be independent when they are 18.
For example, most American kids need to pay their college tuition and care for their expenses.
When you live in your parents’ house, sometimes you must also pay rent. This is because the United States’ culture is very individualistic.
There is more freedom but also typically less help financially from others.
In China, it is very common for three generations to live in the same house — grandparents, parents, and grandkids.
Now we are also three generations living in the same house because we live with my parents-in-law, who also help care for the kids a lot.
They didn’t charge our rent either. We offered to pay, but they refused.
My wife also said that this is normal. In China, usually, parents won’t charge rent to kids. Because of that, our expenses are even lower because of rent savings.
11. Cheap and Convenient Transportation
In China my in-laws have one car, two motorcycles, and two electric bikes. So we basically have free transportation which is super nice.
As of now I do not have a Chinese car or motorcycle license so I just drive around the fun electric bikes.
Not only are the electric bikes not expensive, but they also are electric and are thus environmentally friendly.
The transportation systems in China are pretty advanced with high-speed trains. Since my wife’s city here is a bit smaller we don’t have trains but there are a lot of bus stations.
12. Affordable Health Insurance
Fortunately, my family qualified for government health insurance so it ended up costing us only $54 per person for the entire year!
A family of four costs $216 annually.
My family’s insurance for one month is higher than one full year in China – pretty awesome!
Let us know how much Health insurance costs where you live in the comments section below!
13. Many Work Opportunities
Hitting coast FIRE means that you only need to work to cover daily expenses, but your investments are large enough so that they will continue to grow without contributions until retirement age.
So it really is just coasting until you hit retirement.
Since we hit Coast FIRE, we have more flexibility to work on what we want to work on, allowing us to semi-retire in China. 🙂 We still want to work hard and build a wealthy future.
It’s important to invest in assets though. I currently have two rental properties giving us healthy cash flows and actually covering all our living expenses.
Besides this rental income, we are working hard to provide valuable personal finance content on our blog and social media accounts. There are also many opportunities to work in China so no worries.
14. Overall Quality of Life
We feel our overall quality of life has improved because we stress a lot less about money and have more flexibility in our schedules.
A big reason for this is due to the lower cost of living mentioned above.
Back in the United States, we would cut our own hair at home to save money. Now in China, a haircut only costs $4 with no tips required.
It feels nice to have a professional cut our hair but not feel like we’re overspending. Here is a picture of my most recent haircut in China. 🙂
We are also able to go out and enjoy more outdoor food, massages, and other fun activities.
Although the cost for these items and activities is much lower in China, we still have a monthly budget and don’t allow ourselves to spend indiscriminately.
More on our budget to come!
In Conclusion
If you’re looking to semi-retire in China or move abroad, I hope these reasons could be of some help for you!
Although everyone comes from different walks of life, there are clear advantages and adventures awaiting you in another country.
Make sure to check out more articles on this blog for tips and inspiration on achieving financial freedom!
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!
Are you looking for a less intense way to achieve F.I.R.E. (Financial Independence/Retire Early)? Look no further than Coast FIRE!
Coast FIRE is arguably the simplest and most effective way to join the FIRE movement. It provides a clear and concise path to FIRE without all the overwhelming financial jargon.
Here is my YouTube video going over this content (if you prefer to watch it instead).
This post may contain affiliate links; please see our disclaimer for details.
What is Coast FIRE?
Coast FIRE Benefits
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.
To achieve Coast FIRE, it is essential to start saving early and invest in a diversified mix of assets. Coast FIRE provides individuals with financial security in retirement and is an excellent option for those looking to retire at the typical retirement age.
How Much Should You Save to Reach Coast FIRE?
Coast FIRE calculation considers variables like age, income, and expenses to determine how much you need to save each month to reach your goal.
While no fixed sum will satisfy everyone’s retirement needs, a rough estimate is often considered 25 times your annual expenses, which is your FI or FIRE number.
Let’s say your monthly expenses at retirement will be $1,300 a month; you will need $15,600 (1,300 x 12) a year and $390,000 (15,600 x 25) to cover expenses for 25 years.
This is based on the 4% principle, which states that you can withdraw 4% of your savings each year without running out of money.
You will want to ensure you have enough in your investment accounts to grow passively without contributions so that it can grow and reach your FIRE number by the time you retire.
Once you hit that number, you will have reached Coast FIRE!
Coast FIRE can be a helpful tool for anyone who wants to retire early or achieve financial independence.
The Coast FIRE approach is simple: you save a certain percentage of your income and invest it in a way that will generate a passive income stream. However, there are a few key components that you need to be aware of before beginning.
First: you must calculate how much you need to save to reach your retirement goals.
Second: you need to choose the right investment vehicle for your needs.
Third, estimate how long you’ll need to keep your money invested.
Coast FIRE example
The formula for determining a Coast FIRE number begins with a regular FIRE number, estimated to be 25 times annual spending.
So, for example, if someone spends $50,000 annually, their regular FIRE number would be $1,250,000.
The Coast FIRE number is then determined by dividing the regular FIRE number by (1+annual growth rate) to the power of “years to grow.”
In the example above, if it is assumed that it will take 30 years to reach the regular FIRE number, and the average annual growth rate over those 30 years is 7%, the calculation would be $1,250,000 / (1 + 0.07)^30 years = $164,209.
Therefore, the Coast FIRE number in this example would be $164,209. It should be noted that this number is only an estimate and may vary depending on individual circumstances.
Nevertheless, it provides a helpful starting point for anyone looking to save for a comfortable retirement.
To sum things up, here are two ways to calculate your Coast FIRE number
Use the formula from the example above. You can adjust your annual return rate and use this exponent calculator. Then divide that number by your FIRE number.
Use a reliable investment calculator to see how much your investments will grow without added contributions.
What Are the Benefits of Coast FIRE?
1. You can achieve financial independence and retire early.
The real reason you want to achieve FIRE is to retire early and live life on your terms. And Coast FIRE makes this possible!
Once you reach your Coast FIRE number, you can quit your job and enjoy a life of leisure. All you need is to work or have passive income streams to cover daily expenses.
2. You don’t have to worry about outliving your savings.
How many people do you know who are worried about running out of money in retirement? With Coast FIRE, you don’t have to worry about this.
As long as you have your Coast FIRE number saved up, you can live off of your passive income for the rest of your life, no matter how long you live.
3. You can still retire even if your investment portfolio takes a hit.
We all know that the stock market is volatile, and it’s impossible to predict what will happen in the future.
However, with Coast FIRE, you don’t have to worry about this. Even if your investments take a hit, you can still retire if you have your Coast FIRE number saved up and have other fail-safes in place (diversified investments, emergency savings, passive income streams).
What Are the Risks of Coast FIRE?
1. Not saving enough consistently
The biggest risk of Coast FIRE is that you might not reach your Coast FIRE number if you don’t save enough.
This is why it’s so important to ensure you’re saving as much as you can each month. I wrote another article with 12 saving money tips and How We Save 56% of Our Income as a family.
If you don’t think you can save enough, think of ways you can decrease spending and increase income.
One way you can increase your savings and investments is by mico-investing.
ACORNS is a popular platform that can round up money from purchases and automatically allocate those funds to diversified investments.
Another risk of Coast FIRE is that you might not be able to retire as early as you want. This is because it can take a long time to reach your Coast FIRE number.
If you’re not patient, you might get frustrated and give up on the whole idea, but the truth is that anyone can reach financial freedom through hard work and perseverance.
3. Lack of discipline and focus
When life gets comfortable, we tend to get lazy with finances. Once you hit Coast FIRE, life may seem easier, but it’s important to monitor all money decisions and transactions constantly. You cannot all of suddenly increase spending and get into debt.
This is especially true if you hit Coast FIRE and have passive income streams covering all expenses.
Just make sure not to miss anything with your finances and ensure all expenses are accounted for. If you own your own business, make sure you have the proper legal protection.
Flamingo FIRE And Coast FIRE Differences
For those who don’t know, Flamingo FIRE is where you work until you have saved up half or 50% of your FIRE number. Then you can semi-retire and let investments grow passively to retire within 10-15 years fully. Depending on your age, this could be less time coasting and more quickly hitting FIRE.
Flamingo FIRE is a great option for those who are okay with sacrificing longer to build up investments that reach 50% of their nest egg number.
Barista FIRE And Coast FIRE Differences
Barista FIRE is where you work part-time to collect health insurance benefits. It’s called Barista FIRE because Starbucks gives health insurance to those working part-time.
Many people in the FIRE movement work at Starbucks as baristas simply for health insurance benefits.
Healthcare costs can get out of hand, especially as you age. And if a good health insurance plan does not cover you, you could end up bankrupt.
So, Barista FIRE is an excellent option for those who want to ensure they’re covered by health insurance.
The difference between Barista FIRE and Coast FIRE is that you have a job. You’re still working, but the sole purpose behind your employment is health insurance and not much more.
In Conclusion
As with any FIRE strategy, there are risks and rewards. It’s essential to understand both before you decide if Coast FIRE is right for you. But if you’re looking for a FIRE strategy that doesn’t require much work and that you can do from anywhere in the world, Coast FIRE might be the perfect option.
As you look at the different forms of FIRE, you’ll find that each has its unique set of pros and cons. It’s important to understand these before you decide which form of FIRE is right for you.
Coast FIRE is a great way to semi-retire early and enjoy life without worrying about money. That’s what FIRE is all about. So, if you’re looking for an easy and stress-free way to join the FIRE movement, Coast FIRE might be right for you.
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!
Greetings from the Biesingers! Welcome to our financial independence retire early (FIRE) blog! We are so excited you are here and to share valuable financial freedom and health content with you. For more information about us, click HERE.
