Can Your Passive Income Cover Your Budget?

[Retired To Win]

Eighteen months ago, my answer would have been "barely." But since then I have implemented a series of frugality-without-sacrifice cost cutting moves. Now, my passive income covers about 160% of my annual baseline budget! And that has made it possible for me to retire years earlier than I expected!

How about you? Any idea when your passive income will cover your budget and set you free? Have you tried to speed that up by cutting down your budget?

[scfr]

Yes.

[drewc]

After abut a year of growing my passive income, I can just about cover my budget.

[bjl584]

No. Not yet. I still make significantly more from my job than I do from my investments. Ask me again in 5 years.

[97guns]

Yes.

me too, i pocket a little over 3K/month after bills are paid, all passive income, looking at add another $1000 to that by midyear

[LivingAlmostLarge]

Not even close. Perhaps one day.

[cardtrick]

My passive income for 2013 was less than $10. : (

[disneysteve]

RTW, keep in mind that most of us on this site are not yet retired. The reason that we aren't retired is precisely because we don't yet have passive income to cover our living expenses. As soon as our investments are sufficient to pay our bills and support our lifestyle, we'll retire. For me, I'm hoping that will be in 12-15 years.

[KTP]

In a 30% market? For sure.

In a -5% market? Not quite yet.

[Nika]

In a 30% market? For sure.

In a -5% market? Not quite yet.

This exactly.

[jpham540]

For me maybe 10 more years or so, 5 years sound better but only time will tell. May I ask how are you earning this passive income through rental and investments? I am still bouncing ideas around either buy more properties or just stick with indexing. I currently own one rental home at the moment, debating if I should add some more, but still kicking the bucket around about that idea.

[BuckyBadger]

Of course not - I'm not retired and am still in the accumulation phase.

When my passive income exceeds my expenses I'll retire.

[bennkar]

I'm still accumulating too, but... if I could get my pension (at the amount I am vested at as of today) along with my passive income.... then I could probably cover all my expenses. Of course, since I can't get it today I am in no-man's land. I have to wait until 60 to get the pension, which along with my passive income by that point will be way more than I need for my expenses.

Basically I will go from too little to too much in one day. But only if I stay here 9 more years. What can you do?