I took 5 mini-retirements while saving enough money to become financially independent at 32. Here's the 7-part strategy I used to afford it all.
- Jillian Johnsrud has taken five mini-retirements with her family while saving enough to become financially independent at age 32.
- They were able to afford this lifestyle by bringing in extra income through rentals, side jobs, and investments.
- They managed their extra money by saving half of it, allocating part of that income for a travel fund, and creating a budget.
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When I started my money journey, I didn't think I'd be able to retire early. As a couple, my husband and I had $55,000 in debt and low- to moderate-paying jobs.
But we still had big dreams of being able to travel the world, adopt, and pay cash for a house. Over the last 17 years, we've taken five mini-retirements on the path to becoming financially independent at age 32.
Here are seven key ways we helped fund those mini-retirements while still making progress on financial independence.
1. Renting out our house
We lived in the DC area, which has a high cost of living, for four years. After a year in a small apartment, we bought a four-bedroom house further out and rented out one of the rooms. That roommate helped us save an extra $700 a month over three years.
This one strategy alone could provide over $8,000 a year in savings. That's more than enough to cover a one- to two-month mini-retirement.
2. Getting an extra job
Twice, I decided to work two jobs. It was exhausting and not sustainable, but each time I was able to save an extra $2,000 a month for the few months I could pull it off. It helped me save an extra $5,000 altogether.
3. Requesting travel-related gifts
Being a minimalist, I didn't really want a bunch of new stuff for birthdays and holidays. Instead, I started requesting gifts that could help fund or facilitate our next adventure: hotel or restaurant gift cards, travel bags, travel books, or experiences in those places.
The family loved seeing the fun adventures they helped create. Now that we have five kids at home, we still request fun experiences for the family to enjoy.
4. Saving half our income
When my husband and I were first married, we set a goal to always save half. We typically spent his income and saved mine. It meant drastically reducing the amount we spent on the three biggest expenses: food, housing, and transportation.
Our peers ate out much more, drove new cars, and didn't have a roommate. But saving half allowed us to pay down our debt and save for mini-retirements while investing for financial independence.
5. Creating a monthly travel fund
Every month, I saved $200 to $400 a month in a separate checking account. I named the account "Adventures" or "Travel Fund" to help inspire me to save and to use it when I had the opportunity.
If the time became available, like the two months I was between jobs, having the money ready gave me the confidence to tackle an item on my bucket list.
6. Generating passive income
Over time our stock accounts started to grow, creating a new stream of passive income. We were also able to use some of the funds from our "save half" rule to buy rental properties and pay cash for our home.
Between our investment income, rental income, and my husband's pension, we were able to step away from our jobs for our longest mini-retirement, which lasted two-and-a-half years. Now, our passive income could pay our bills forever, so we have the flexibility to take a mini-retirement whenever the need arises.
7. Create a mini-retirement dream budget
One of the ways I stayed inspired to save for mini-retirements was by creating a dream mini-retirement budget. In a simple document, I would research and list out what each element of our mini-retirement would cost.
For a travel based mini-retirement, it might look like this: How much would the plane tickets or driving cost? How much would we spend per day for food? How much would entertainment cost? What things would we want to visit? How much would a night's lodging cost?
It helped take this crazy dream and make it more realistic. Every time we saved $50, I knew that would cover a night of camping at a nice campsite. Or if I picked up extra shifts to earn an additional $1,000, I knew that would cover all our gas costs.
Having the budget planned and the savings in my adventure checking account made me more confident requesting unpaid time off or taking more time between jobs.
We had so many incredible experiences in our 20s and 30s: traveling to 27 countries, road-tripping to over a dozen National Parks, adopting four kids, and learning to renovate homes. Some of the best life experiences have expiration dates. For example, I stopped sleeping on the ground when I hit 30!
But I love the incredible month-long coast-to-coast road trip my best friend and I did in our 20s. I'm so happy we did that when we had the chance. Best $3,500 I've ever spent!