Nerdjenni
Dryer sheet wannabe
It's surprising how much it takes just to get by these days, especially in CA. With 2 kids, I can't imagine... I wouldn't be surprised if you re-evaluate your annual expenses once you have had a chance to experience the high cost of living first-hand. (London is 6% cheaper than SF!) If you lived in another state, I'd say you're there with your home equity; but you need to develop some cash flow. I've read it will take more than $100K of income per year for a middle-class Bay Area family lifestyle.
So true. I just checked out the EPI Family Budget calculator (link here: https://www.epi.org/resources/budget/) and it says that for family of 4 in the SF metro area to live a "modest yet adequate standard of living" requires $148K/year. Taking out taxes (assuming minimal taxes if I'm retired), I still need close to $120K. It's really crazy and explains why when I went back home over the holidays to visit friends in the bay area, everyone seemed to be struggling despite earning good incomes. Also just read this article on "Why Households Need to Earn $300K to live a middle class lifestyle" (https://www.financialsamurai.com/living-a-middle-class-lifestyle-on-300000-year-expensive-city/). Really puts a damper on any dream of real early retirement.
That said, I know myself well enough to know that complete retirement isn't my ideal life. I just want to be able to downshift and have greater freedom and flexibility.