How much do we need to FIRE?
We’ve been living overseas (Turkey) for about 2 years, and the city in which we live is similar to Miami, Florida. We have the intension of settling here indefinitely. I am 39, DW is 36. We have 2 kids ages 11 and 2. We don’t necessarily budget but keep detailed track of our spending for many years. We are LBYM kind of family, in general. We are both engineers with masters and run a home-based business, a New York State based LLC.
Below are some stats;
Our Essential Expenses (groceries, utilities, transportation, health insurance, family, clothing, eating out, vacation and donations to be exact.) are about $36,000/year.
Our oldest, a 5th grader, goes to a private school, and it costs about $5,000/year. We do intend to send our younger one to private school as well but don’t have to. If this is added, our essential expenses will be $41k/yr for now and $46k/yr in about 3 years. We are open to the idea of sending them to the college here, which costs a lot less than the US. We are now in 15% tax bracket and will most likely to stay in that bracket.
We earn in $USD but spend in local currency. The local inflation rate is averaging about 8-9% per year. The exchange rate has been very favorable for a few years (1$ = 2.70 TL). (I teach part time at a local private university’s engineering department and that income is in local currency, which is $6k-$8k/yr)
We have a rental property back in New York. It is paid for, and it has about $12k-$13k/yr positive cash flow. Our current condo in Turkey is also paid for and it is fairly new, only 5 years old.
Based on these input, how much do you think we need to have in our portfolio to be FIREd?