I've been doing some research lately...
The FIRE (Financial Independence Retire Early) crowd is very fond of investing big sums of money into index funds, such as those offered by Vanguard (VSTAX and VTI) to generate passive income. The idea is that if you save most of your income, you can retire early. Like, super early.
The idea is that if you invest $1,500 a month for 10 years or so, you could very well be earning about between $15,000 - $28,000 a year in passive income based on a 4-8% dividend yield each year. Obviously, this is very doable even on a meager internet income when living abroad. These are approximations, but you get the point.
Here's a link where you can see the numbers in action.
https://networthify.com/calculator/early...awalRate=4
That money sounds like shit in the USA, until you start to think that's a huge chunk of your living expenses in a developing country, prompting early retirement as a legit option at this point. Of course, you could keep it going for even longer, and subsequently yield more money. At the very least, it seems like a really great insurance policy to ensure future remote income.
If this is possible, I'm wondering why I have not heard of more people doing it, especially on this corner of the internet?
The FIRE (Financial Independence Retire Early) crowd is very fond of investing big sums of money into index funds, such as those offered by Vanguard (VSTAX and VTI) to generate passive income. The idea is that if you save most of your income, you can retire early. Like, super early.
The idea is that if you invest $1,500 a month for 10 years or so, you could very well be earning about between $15,000 - $28,000 a year in passive income based on a 4-8% dividend yield each year. Obviously, this is very doable even on a meager internet income when living abroad. These are approximations, but you get the point.
Here's a link where you can see the numbers in action.
https://networthify.com/calculator/early...awalRate=4
That money sounds like shit in the USA, until you start to think that's a huge chunk of your living expenses in a developing country, prompting early retirement as a legit option at this point. Of course, you could keep it going for even longer, and subsequently yield more money. At the very least, it seems like a really great insurance policy to ensure future remote income.
If this is possible, I'm wondering why I have not heard of more people doing it, especially on this corner of the internet?