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Reader Profile Friday – Freedom 48

The following is a new profile for the BFS Reader Profile series. Today we are getting to know Julie from Freedom 48. Thanks for participating!

Personal Background

Hi! My name is Julie, I’m 29 years old and I live in Ottawa, Canada.  My husband Nick is 32 years old and we’ve been married for almost five years. We’ve been together for more than fourteen years… in fact we’re high school sweethearts! We live in a two story colonial house in the “old part of town” with our thirteen year old cat named Fluffy. We don’t have children yet, but hope to in the near future.

Financial Background

We bought our first home in 2003, while we were both full-time university students.  In 2009 we bought our current home, but kept the first home and rented it out to a wonderful family.  Our current home has a two bedroom apartment which is rented to two university students. The rental income has been crucial to our saving and investing and an integral part of our journey towards an early retirement.

I work as a clerk at a medical legal organization, making $40,000 per year.  My husband works as a statistician with the federal government, making $52,000 per year.  Our rental income totals $30,000 each year.  Our total take home income is $7,500 each month.

Our total expenses run about $4,000 per month.  The breakdown is as follows:

  • Mortgage/property tax (income property) – $800
  • Mortgage/property tax (our house) – $1,320
  • Condo fees (income property) – $331
  • Electricity (our house) – $100
  • Natural gas (our house) – $80
  • Water (our house) – $60
  • Cable & Internet – $95
  • Vehicle Gas – $150
  • All Variable Expenses – $1,065

Our only debt is the two mortgages. One will be paid off in seven years, and the other in fifteen. We try to keep our living expenses to a minimum.

Our Goal

Our top financial goal is to retire at age 48. We carefully track our income and expenses each month to ensure we’re staying on track.  We document every step of the journey on our blog www.freedom48.net . Our blog has been a key tool for keeping us accountable to our spending and saving.  We can’t bury our heads in the sand and ignore the facts… if we have to write about it!

While both of our jobs do provide a retirement pension, those pensions don’t kick in until we’re 65.  Therefore, if we want to retire at 48 we need to ensure that our savings alone will provide for a comfortable standard of living. We plan to live solely off of the investment income – so that the initial investment amount can be passed down to our future children and grandchildren.

Crystal’s Comments:  Sounds like you two like rental income as much as we do, lol.  And you are well on your way of hitting your age 48 retirement – cool beans!  Congrats!  Good luck with having those kids.  :-)

If you would like to participate in this series, please follow the guidelines found at BFS Reader Profile and submit your own story.  Everyone is more than welcome and you can stay anonymous if you’d prefer. Thanks!

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4 comments to Reader Profile Friday – Freedom 48

  • Congrats on being able to be debt free besides the homes. I think for your age having surplus income of 3500 a month is great and will def help you retire sooner than later, assuming you are saving and maxing retirement accounts.

  • Sounds like you’ve been smart with money from the beginning. That’s wonderful with your rental income and goals. I’m sure it will be no problem to retire at 48.

  • Thanks guys =)
    I’m happy to hear you think we’re on the right track! Rich Uncle EL – we do indeed save and invest our surplus. Both of our RRSPs and TFSAs are fully maxed out, and the rest goes into a joint investment account.

  • I live in Ottawa too and so does my GDI partner Julie! Congratulations on your success and for staying the course. I don’t have real estate property, but wish I did. With my husband’s and my business, we haven’t invested in anything else…yet. Best of luck and I will check out your blog!