# A milestone; living off investment income



## james4beach (Nov 15, 2012)

November was the first time in my life that I lived entirely off my investment income (dividends & interest) without eating into capital !

Mind you, that's not really my goal (as I'm a young guy trying to save up more capital) but I'm thrilled I was able to do that. I've been job hunting, and had no income.

Not as impressive as it may sound, since I've radically slashed my cost of living. I cut back expenses heavily, living with family, but still had a reasonable quality of life. Anyway, a neat little milestone even though it happened due to reduced cost of living as opposed to increased net worth.

Nothing too amazing about the vehicles that generated the investment income: GICs, HISAs, government bonds, and some ZUT. All the things I usually post about here

Don't get jealous... you probably _wouldn't_ want to live on as little income as I've been doing


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## Jon_Snow (May 20, 2009)

So how much are making off your investments? Or, if you prefer, how low are your monthly living expenses? Curious.


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## james4beach (Nov 15, 2012)

It's pitiful really, monthly living expenses $500 (6k annually). Think "living like a student" at family property, no rent or mortgage, and sharing food expenses with household.


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## techcrium (Mar 8, 2013)

I am guessing your principal is around 260K then?

500x12=$6000

$6000/0.023= $260 000

That is a pretty good feat. What is your age?


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## Janus (Oct 23, 2013)

It's good to be able to see the silver lining to things. 

Congratulations - just think about how your standard of (work-free) living now has a floor, and it's already a good one.


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## My Own Advisor (Sep 24, 2012)

Well done James!

You don't need $260k invested to yield $6k annually, unless you have tons in GICs and bonds, which maybe you do?


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## KrissyFair (Jul 8, 2013)

Nicely done. Though I'll keep my fingers crossed for a job promptly in the new year for you.


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## Eder (Feb 16, 2011)

That's a pretty good job at frugality...a skill many don't have. Don't forget that with inflation at about 2% you will need to live on about $100/month to avoid drawing down your investment funds. Lots of Raman noodles!

Here's hoping that dream job awaits you in the New Year though!


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## Hawkdog (Oct 26, 2012)

Well done, good luck with your job hunting!


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## My Own Advisor (Sep 24, 2012)

Yes, please update us on your job status James. Good luck with the search and here's hoping Santa brings you a great gig.


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## james4beach (Nov 15, 2012)

My yield is a bit higher than that so I have a bit less than 260K, but yeah, I am thankful that I've saved enough money to date and true... it really does establish that "floor" which, as you point out, is do-able! That's a really good feeling 

Thanks for the well wishes. The good vibes from all you great people must have had an effect because a written offer just flew into my inbox a few minutes ago and suddenly I am literally looking at TWO real job offers... one of them being almost 20k above the other!

I'm excited beyond belief, actually had trouble sleeping as I knew offers were imminently coming.


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## Causalien (Apr 4, 2009)

james4beach said:


> My yield is a bit higher than that so I have a bit less than 260K, but yeah, I am thankful that I've saved enough money to date and true... it really does establish that "floor" which, as you point out, is do-able! That's a really good feeling
> 
> Thanks for the well wishes. The good vibes from all you great people must have had an effect because a written offer just flew into my inbox a few minutes ago and suddenly I am literally looking at TWO real job offers... one of them being almost 20k above the other!
> 
> I'm excited beyond belief, actually had trouble sleeping as I knew offers were imminently coming.


Ah, I envy you. I spent too much time in my own business that I am now unemployable in pure engineering as my skills are mostly outdated. Time to get back in school.


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