FIRE couple moved abroad, lived on one income, increased their net worth

But a lot has changed for Davis in the intervening years—both financially and philosophically. For one, he increased his net worth to more than $700,000 in May from about $150,000 in 2018, according to documents reviewed by BI.

Davis and his wife plan to live solely on his $50,000-a-year school counselor salary while saving and investing all of their income, which comes mostly from a real estate business he started together in 2016 — he said their annual household income is about $150,000. This savings strategy has been key to boosting their finances.

Davis’s financial goals have also evolved. After learning more about the FIRE movement — a financial lifestyle that aims to save enough money to become financially independent and retire before traditional retirement age — Davis said he’s found that most people who successfully retire early eventually get tired of “drinking margaritas on the beach” and return to work in some form. Instead of early retirement, Davis said his current goal is to live his ideal life, and he thinks staying on the job can help him achieve that.

“I have no plans to retire, but I hope to be financially independent in the next five years,” he said. “The less you worry about money, the more your work opens up to fun, creativity and no limits to the possibilities.”

While many Americans struggle to save for retirement, some are putting themselves in a position to stop working early by using a variety of saving and investing strategies. But not all of these people are looking to retire early. Some people, like Davis, want to continue working toward financial security. But not just any job: They want to spend their time doing work that they enjoy or find fulfilling.

Davis shared how he increased his net worth — and why he believes finding your dream job can help you live your ideal life.

Lower living costs can make it easier to save

Davis and his family, including his wife Katie and daughter, have a huge financial advantage: they don’t have to pay rent.

Related Stories

That’s one of the perks of Katie’s job: She works as a school counselor at international schools around the world. Davis said they first moved abroad in 2015, spending four years in Abu Dhabi and four years in Brazil before moving to Lima, Peru, about a year ago. Davis said it’s not uncommon for international schools to provide free housing for faculty and staff.

In addition to saving money on housing, they were able to take advantage of the “lower cost of living abroad,” including cheaper food and health care. Davis said that was one of the main reasons they decided to move abroad.

“In South America, you can buy beef and pork for a quarter of the price you pay in the U.S.,” he said.

Davis said another great way to save money is to avoid owning a car — he admitted he hasn’t owned a car in five years.

“People don’t realize how much more cars cost than just the monthly payment,” he said. “Without a car, we don’t have to pay for car insurance, repairs and maintenance, gas, parking.”

The family’s reduced costs have allowed them to live solely on Katie’s salary. But Davis said they don’t expect those financial benefits to last forever, so they’re trying to take advantage of them now.

“At some point, we know we’re going to have to move back to the United States for family reasons,” Davis said. “So we’re trying to build our net worth and passive income streams as quickly as we can before we do that.”

How Getting Your Dream Job Can Help You Live Your Perfect Life

When Davis learned that many early retirees were returning to work in some form, he found the news somewhat disappointing.

But he’s since changed his mind. For example, if someone retires at 60 — instead of 50 — it’s much easier to reach their retirement savings goal.

“That means you don’t need as much money as you thought you did,” Davis said. “If you’re going to continue to do some work on your own terms, you’re going to continue to earn an active income.”

But that extra decade of work may not be fulfilling for everyone. That’s why Davis believes the key is finding your dream job.

Davis said that if someone is doing a job they enjoy, they likely won’t be so desperate to quit and retire. And even if that means taking a job that pays less than their previous job, Davis said that’s where the savings strategies that are well-told in the FIRE community can come in handy: They can help close the gap between desired and actual income.

“You just need enough money to cover any shortfall between what you want to spend and what your dream job pays,” he said. “In other words, you can start living your ideal life now or very soon without being financially independent.”

Of course, finding a job — forget about your dream job — is easier said than done in today’s economy. Many Americans are having a harder time finding work as companies pull back on hiring.

For Davis, his business is one component of his dream job. He said he gets all the benefits of real estate investing without the headaches of being a landlord.

“I don’t consider myself financially independent, but I live the same life I would if I were,” he said. “I can do the work I love, on my own schedule, from anywhere in the world.”

His most important piece of advice to people is to imagine your ideal lifestyle and determine what type of job and level of income you would need to make that goal a reality.

“When you look at FIRE from that perspective, it becomes easier and more rewarding, rather than just dreaming of sitting on a beach homeless for the rest of your life,” he said.

Have your savings and wealth grown significantly in recent years? Are you willing to share your best financial strategies? Contact this reporter at [email protected].