Four Options for Quitting Work in my 40s

I’m getting a bit sick of my job – It’s a lot to do with the job, but also probably to do with being 42, and with it being January (at the time of writing this).

Also, I’ve now given 15 years full time to ‘the man’. Enough is enough for Christ’s sake. That’s almost a 5th of my entire life.

My original early-retirement plans (in 2015) were to ‘hold-out’ in full-time employment for 7 years – by which time I could travel or transition easily, but the way things are going I might crack earlier, so I need a crack-up plan. NB I’m claiming this as a new concept – a back-up plan is something you have in case a new venture goes wrong (which implies risk taking). In my original early-retirement plan there is no real risk of it going wrong – I just stay in teaching for another 7 (now 6) years and save-hard. However the risk is that I go fucking nuts before the next 6 years are up, hence the need for a crack-up plan. If I feel my mental health deteriorating any more I’ll transition early. This is a post about my options.

It’s interesting to note that this is an indication of how truly awful the UK education system is – I work in a nice college, with nice kids and nice staff, and teach an interesting subject. In short, outside of the immoral private sector teaching doesn’t really get much easier than my job, but my job still makes me feel anxious and miserable and generally shit. This is the effect of the system constantly focussing on the negatives and always demanding more. This is the sub-optimal logic of performativity caused by the neoliberalisation of education. Life is not worth living as a teacher in a marketised education system. The only thing currently keeping me in it is the fact that I earn enough and am frugal enough to save down and get the hell out relatively early, which is something I advise anyone insane enough to go into teaching to do.

How much money I’ve currently got to play with

Current liquid -ish assets

£20K

Equity (-£5K sales shaft)

£110K

Total capital to play with

£130K

Other (approx)

£16K – Ring fenced for spending when I’m 58/9 (Hoping this will grow and extend into my early 50s)

The headline news is that I can already afford to buy a house outright in a cheap part of the UK, which means I could quit my job now, work part-time for the rest of my life and still probably fully retire in my mid-late 50s.

If I wait until 2018, things are a lot more comfortable, if I wait until 2021, that’s near enough sufficient for me to fully retire.

What I perceive to me my total array of practical options to escape work:

  1. Downsize to a small homestead/ croft somewhere else in the UK, or maybe Ireland, quit work and figure out another way to earn money/ live without money, more or less.*

  2. Downsize to a cheaper house in the UK, rent it out to earn a small base income and travel/ do voluntary work abroad.

  3. Downsize to a cheaper house in he UK, rent it out to earn a base income, buy some land in Portugal and ‘do Permaculture’ and figure out another way to earn money/ live without money, more or less.

  4. Downsize to a cheaper house in the UK and buy a houseboat, and figure out another way to earn money/ live without money, more or less.

  5. *I could do this, and then just stay at work and rent in the local area as a sort of ‘transition year’.

NB – It’s unlikely that any of the above will kick in for me until 2018, given the enormous housing bubble currently inflating in my local area, which I think it’s safe to ride it for a couple more years. 

NB – When I say live without money more or less, I spent a lot of time reading about freeganism this holiday – check out the previous post. 

Approximate Costings

Strategy

Initial Transition and capital costs

Additional Capital Required

Anticipated monthly expenditure

Buy a small homestead/ Croft UK

£150K House

£20K

£900.00

Downsize and travel

£160K

£150K property and £10K to kick-start travel fund

£30K

£200.00 – £1000

Downsize and buy land in Portugal

£200K

£150K House in UK

£50K Land and transition to Portugal

£70K

£700.00

Downsize and buy

House-Boat

£180K

£150K House

£30K Boat

£50k

£900.00

Option 1: Buy a small homestead (nearly) outright and earn money working part-time from home

One advantage of owning a two bedroom purpose-built flat in Surrey is that the flat’s worth a ludicrous amount of money, currently around £245K. With £130K left on the mortgage, and after the £5K cost of being shafted by the sales-system (which I could lower if I self-sold it), this would leave me with £110K in the bank. Plus the £20K I’ve currently got kicking around that leaves me with £130K.

With £130K I could actually buy outright a two-bed semi-detached house in Lincoln. I’ve never actually been to Lincoln, but it does seem to be the cheapest place in the UK that’s not a shit-hole where you can buy cheap property. Given that I grew up in a town that was a shit-hole and that I presently live in a town that’s not that dissimilar, Lincoln would probably be a step-up for me. There are probably other towns where you can buy relatively cheap, some may be better, and if you know of any candidates then do let me know!

Amazingly enough £130K would also be enough to outright-purchase a small bungalow in the highlands of Scotland on just under an acre of land. Add on £20K for updating the property and this would leave me with a mortgage of around £20K.

I figure that it doesn’t really matter where I live in the UK, but I do kind of fancy the Scottish Highlands. When all you want to do is grow vegetables, meditate, read Sociology books, and make your money online-tutoring who cares where you live? I figure the cheapest non shit-hole town/ rural location is best.

A £20K mortgage paid off over ten years would mean repayments of around £200/ month, add on my anticipated monthly costs of living @£700/ month = £900/ month income required to survive, which means I could live off a part-time income.

For every year extra I work, I’ll should have another £15K to play with, so if I do this in 2018 I can add £30K on and maybe even buy a nicer house. Also, I could buy for something a lot cheaper in Ireland, which is something I maybe need to explore more.

Option 2: Downsize and travel

This basically involves downsizing as outlined above, with all the attendant costs plus £10K to kick-start my travel fund.

The rental for a £150K ish property would be around £550/ month gross, which would come down to around £400 month net. Obviously whether I can live off this depends on what I can put up with ‘on the road’.

There are numerous people out there ‘budget travelling’ who demonstrate a range of possibilities viz how little money you can get by on. One of the most inspiring is Dan Suelo – The Moneyless Man – who has managed to survive without money for the last 16 years of his life, but I’d personally be more inclined to become the moneyless, more or less, man. Not as cool, I know, but I know myself. And I’m not cool, so that’s OK by me.

This option also opens up the possibility of buying a van (A converted VW Transporter or Mercedes Vito or something similar) and being more mobile (and obviously not money-free), which would ad about £10K to my overall transition costs.

Of course I could combine travelling with a variety of voluntary work and even paid work – time to dig out the TEFL qualification maybe?

Option 3: Buy a house in the UK outright and buy some land in Portugal; rent out the house and move to Portugal and ‘do Permaculture’.

This strategy involves buying some kind of cheap-ish property as in the other options above, but also buying land with a wreck in Central Portugal and then ‘doing Permaculture’ and self-building a small eco-house. I calculate that I’d need about £50K to very comfortably establish myself in Portugal – £30K for the land + a further £20K to transition over there. When I say ‘very comfortably’ – this includes one year’s worth of living costs while I get established + the cost of a van, and yurt.

The advantage of this would mean that I could rent out property in the UK one while I live in Portugal. The rental for a £150K ish property would be around £550/ month gross, which would come down to around £400 month net. This means that if I escaped immediately I’d have to find an additional £300/ month to pay for said property, but if I can hold out until 2018 then it should pay for itself, and after than it becomes an income-paying asset. So, somewhat unsurprisingly, the longer I can stick out my job, the easier my life is later.

I’ve looked at a fair few blogs by people who have done this, and as long as you’re careful to do everything right, it is possible to pick up some cheapish property in a couple of acres of land to renovate, actually for less than £30K. Central Portugal seems like the best bet.

The massive downside of this plan is that I’ve never been to Portugal, I’ve hardly spoken a word of Portuguese, and my earnings potential would be massively limited. I’ll take a holiday there at some point in the future, I’m sure I’ll like it.

On the ‘doing Permaculture’ front – I’m sure renting out property one is against the ethics of the movement, but I’m also sure, given the prevalence of middle class 50/60 somethings in the movement, that this is extremely common practice, just not something which people advertise freely.

As of February 2016 this is my preferred option for escaping work, hence why I’ve gone into the detail.

Total cost of buying a reasonable property outright in the UK

£150K

Total costs of buying land in Portugal and fully transitioning

£50K

Total Net Wealth Ready to Invest

£130K

Additional Capital Required to fully transition

2016 – £70K

2017 – £60K

2018 – £40K

2019 – £30K

2020 – £10K

Estimated monthly income required after property costs

£700.00

Add or Minus money I’d need to pay of outstanding mortgage/ rental income I’d receive

2016 – £300

2017 – £200

2018 – £000

2019 +£100 (need to earn £600/ month)

2020 +£300 (need to earn £400/ month)

Option 5 – Downsize and Buy a House Boat.

As above with downsizing, and then you can pick up a nice houseboat for £30K – I’ve added on £200/ month to cost of living to reflect costs such as licence fees, and mooring fees. This might actually be more. I’m not likely to do this in 2018, but living on a canal boat is just something I need to do for a period in my life at some point, thus I’m including it. Preferably I’ll be able to keep moving for much of the year to avoid the mooring fees!

In conclusion 

It is financially viable for me to quit my job this year and still retire early but it’s optimal in ERE terms to wait until 2021. A reasonable compromise in my noggin is to hold out until 2018.

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