Friday, April 10, 2009

Is the end in sight?

Well, while you live a HTA lifestyle, you should learn to reduce your expenses. Being able to control your budget and to survive in cheaper countries is the most important skills for HTA. After knowing where you like to spend most time in, and the expenses you will incur by leading a full-time adventurer (FTA) lifestyle, then you can calculate how much you need in your nest egg to sustain your expenses (see explanation below on how much you need to retire). The cheaper your lifestyle, the earlier you can arrive at your goal. But do not have just enough in your nest egg. Make allowance. You need some allowance to absorb the unexpected risks such as a market failure or poor health. Add 10-30% to what is the logical minimum you need in your nest egg. And, after you have arrived at this level of savings, control your budget so that you don't overspend your way into forced de-retirement.

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