This Is How You Could Retire Before 40 Without $1 Million

Travel on the Cheap

Being able to travel was one of the key motivations for the Kaderlis to retire early. But they’ve had to find ways to do it cheaply to keep their annual spending below $20,000 a year.

The Kaderlis do own a small manufactured home they bought for $2,000 in an active-living adult community in Mesa, Ariz., in the early 1990s. But they rent it out for most of the year and travel full-time.

Since 1991, they’ve visited more than 30 countries in Europe, Asia and Latin America and have kept costs low by housesitting, staying with family and friends and renting apartments for several months at a time. Sometimes, they even stay in hotels, but get a deep discount by asking for a monthly rate rather than a nightly or weekly rate, Billy said.

They buy fresh, local food rather than packaged imported items. Because they do not own a car, they often take public transportation, walk or even hire a private driver in countries where the cost is low, rather than rent a car. And they’ve saved thousands of dollars a year by finding restaurants and hotels that cater to locals rather than pricier options near tourist hot spots, Akaisha said.

Billy said that Mexico currently is the best value for the money if you want to retire abroad. They know retirees living well there on less than $1,000 a month.