The military can assign you any place it has a base. For my current duty station, they placed me back in my hometown, San Diego, California.
During the 20 years I was away from San Diego, I fell in love with small towns. My wife and I have built extraordinary lives in cities like Yuma, Arizona, and Pensacola, Florida.
I have no intention of retiring in a high-cost-of-living area like California. So I am here as a short-term visitor trying to save as much money as possible.
Save for Your Down Payment Fast!
Finding a budget in California. When I first arrived in California after my seven-day passive income road trip (Financial Mindset, Retirement Planning, Dividends, Cryptocurrencies, Real Estate, Royalties, and Automated Business), I was shocked at the prices.
Living somewhere where everything is expensive is strange, and people seem perfectly normal with paying the prices. As I wrote in “Big Cities Require Big Mindsets,” you’ll have to work hard to break even in these places.
The first couple of days confused me financially. All the spending kept piling on, and I put it on my credit card because I couldn’t keep pace using my debit card.
After two weeks of madness, I finally said it’ll cost me $50/day to live here in San Diego. Keep in mind, I was living in Okinawa, Japan, for $20 earlier this year.
TSP vs. Dividends
So at $50/day, my total for expenses is $1,500/month. This amount is egregious, but I must come to terms with where I live. Gas prices are heading to $7 a gallon by the end of the month.
The rest of my living expenses. I have $1,500/month for gas, food, and entertainment. I rent a room for $800/month. My car payment is $500; I have $200/month for subscriptions (Hulu, etc.).
It is a simple budget, and my allotment for expenses allows for some excellent additions. I usually spend roughly $30/day on food such as salad and premium sandwiches.
This gives me a surplus for a few days until I fill my gas tank. However, I get enough leftovers to buy a video game or two.
Inflation Ate My Paycheck 103
Dividend Debit Card to the rescue. Even better, my Dividend Debit card pays me $200/month, which I can keep as a backup.
If I need to go to dinner with a friend, and my budget is tight, I can use my Dividend Debit card to save me. It’s a nice thing to have, and I keep building my dividend income through monthly automated investing.
Why don’t single people live this way? I am married with two kids. My family stayed in Florida because moving to California as a family would set us back.
Therefore, I am living as cheaply as possible. However, it’s not a bad life at all. I have a full tank of gas, money to eat well, and some extra cash flow from time to time.
505 Takeaways from 101 Books
Most single people want to rent an apartment and live alone—have fun with that line of thinking. They will pay $3,000/month for a decent apartment here in San Diego.
You can add another $200-$400/month of utilities. They probably drive a nice car, paying at least $700/month for their Tesla or Range Rover.
Before they know it, they spend $7,000/month just to live worse than me. It is truly baffling why more people don’t rent a room from someone or their family.
Can you get ahead in San Diego? If you are willing to live like me, you can get ahead quickly in San Diego. Of course, you’ll need to work towards a high-paying job.
I make $170,000 a year, which is not a high amount in California. However, it is a good, livable wage. But I still need to live below my means if I want my paycheck to go further.
Real Estate Investing in Your 70s
I see no reason a single person couldn’t live under $4,000/month. That gives them $1,000/month of social engagement, which I don’t require.
If a single person can live on $48,000/year ($4,000/month) and make $100,000/year, they can begin to get ahead. They would only need to live like this for 4-5 years, probably up until age 30.
What do they do with the extra cash flow? Now that they created a nice bit of cash flow, they can save and invest. They can build an emergency fund and branch out into bonds and dividend-paying stocks.
Not only would they have their earned income paycheck, but their dividends and bonds would add even more money to their accounts. I make $1,000/month in dividends.
5 Takeaways from “The Two-Income Trap”
How to start living below your means. Living below your means is a mindset before it is an action plan. You must have a compelling reason to “sacrifice” your lifestyle for the future.
I drive a 2016 Ford Focus, and everyone around me drives Teslas, Rivians, Range Rovers, and Lexuses. I don’t care what they say as I walk to my car because I have a massive bank account and own three homes.
However, as you get started, their comments may affect you. They don’t want someone working towards something different than them.
Overcoming Limiting Beliefs 101: Defeating Self-Doubt
People take offense because they want you to be impressed with their new car and apartment. If you can build your dream retirement in your head, you can start working towards it today.
Conclusion. I think most single people can live the same lifestyle I am living today and be perfectly happy. But I don’t care what the outside world thinks; they probably care deeply.
There is no reason to rent an expensive apartment as a single person. With high inflation, many people are seeking roommates to make ends meet.
Should Both Parents Work?
If you need to entertain a love interest, you can rent a hotel room for the night. Not only is it exciting and spontaneous, and it makes you look cooler than an empty apartment.
I save the most money on my housing and car because I have no one to impress. I am proud to own my Ford Focus. I never thought I would have a vehicle this nice in my life. Wealth is a mindset, and you can calibrate it how you wish.
If you live in a high-cost-of-living area and want to get ahead financially, think hard about what you drive and your living situation. Those are the easiest ways to reduce your living expenses. Good Luck!
- PDF of the Month: How We Plan to Retire on Dividends 4 (Free 139-Page PDF)
- Free PDF Downloads: Download FREE PDF LIST here
- Financial Mindset: Become CEO of Yourself 2 (Free 196-Page PDF)
- Retirement Planning: Your Retirement Planning Guide 2 (Free 255-Page PDF)
- Investing: How We Plan to Retire on Dividends 2 (165-Page Free PDF)
- Cryptocurrencies: Counting on Crypto 2 (Free 159-Page PDF)
- Real Estate: Financial Independence through Real Estate 2 (Free 123-Page PDF)
- Business: Retire Rich, Retire Comfortable with a Business 4 (Free 149-Page PDF)
- Latest DGWR: Don’t Gamble with Retirement 8 (Free 445-Page PDF)
- Everything!: The Biggest Book on Passive Income Ever 2! (book)(Web Edition)(Art Edition)
- I bought a Kindle Oasis: Check it out on Amazon
- Read My Books for Free: Free Kindle Books Schedule
- Crypto Exchange: My Favorite Crypto Exchange VOYAGER (Join Voyager)
- Kindle Unlimited: Why I Finally Subscribed Kindle Unlimited (learn more)
- Book Reviews: 505 Takeaways from 101 Books (pdf)
- Writing: The Publishing Chronicles (Part 1, Part 2, Part 3, Part 4, Part 5)
- Best REIT- Fundrise: REITs vs. Homeownership (Join Fundrise)
- Follow us: On our Facebook Page and Join our Facebook Group
- Support the Channel on Cash App: $Kingmarine1981
- For more detailed analysis, join my Youtube: MFI YouTube Channel
Monthly Dividend Tracker Template: Buy on Etsy
Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
All Right Reserved Military Family Investing
Leave a Reply