We RETIRED EARLY. Revealing our INCOME STREAMS for Early Retirement

Summary

The video details the journey of Xan and Jan, who were once $60,000 in debt with no retirement plans until at least 60. Fast forward to today, they've created four income streams that have made them financially independent, allowing early retirement at 45 and 51. They share their experiences with a high-interest savings account, YouTube earnings, rental income from a Brazilian condo, and most significantly, dividend income from a substantial investment portfolio. By August 2024, these streams have collectively earned them $49,718.5, demonstrating that with effort and smart financial strategies, anyone can achieve financial freedom.

Takeaways

• 😀 The couple, Xan and Jan, were once in $60,000 of consumer debt with no plans to retire early.
• 💼 They have since created four different streams of income, allowing them to retire early at 45 and 51 respectively.
• 💰 Their first income source is a high-interest savings account, which has earned them $386 in interest since April.
• 🎥 Their second source is YouTube, where they've earned $1,823.74 in 2024, but they emphasize that they create content for enjoyment, not just for income.
• 🏠 The third income stream is rental income from a condo in Brazil, which has generated just over $7,000 Canadian in 2024.
• 📈 The largest income source is dividend income, which has brought in $40,576 Canadian as of July 2024, averaging to about $5,800 per month.
• 💹 They have over a million dollars invested in dividend stocks, which is the primary source of their passive income.
• 🌐 They encourage others to consider these income streams but acknowledge that each person's financial journey will be unique.
• 🏡 They sold their house in Canada and moved to Brazil, where they enjoy a more relaxed lifestyle and have outsourced many tasks.
• 🌐 They emphasize that anyone can achieve financial independence and early retirement with effort, time, and determination.

Q & A

How much consumer debt did the couple have five years ago?

The couple had about $60,000 worth of consumer debt five years ago.

At what age did the couple retire?

The husband retired at 45, while the wife, Xan, retired 7 months ago at age 51.

What are the four different streams of income the couple created?

The four streams of income are: a high-interest savings account, YouTube earnings, rental income from a condo in Brazil, and dividend income from their investments.

How much interest have they earned from their high-interest savings account since April?

They have earned $386 in interest from their high-interest savings account since April.

What is the couple's YouTube channel's primary purpose according to the script?

The primary purpose of their YouTube channel is not to make money but to share their journey to financial independence and to help others on a similar path.

How much money have they made from YouTube in 2024?

They have earned $1,823.74 from YouTube in 2024.

What is the source of their rental income and how much have they made from it in 2024?

Their rental income comes from a condo in Brazil, which has generated just over $7,000 Canadian in 2024.

How much dividend income have they received by July 2024?

By July 2024, they have received $40,576 Canadian in dividend income.

What is the total amount of passive income they have earned in 2024 from all sources?

Their total passive income for 2024 is $49,718.50.

What is the couple's monthly budget from their dividend income?

Their monthly budget from dividend income is around $5,000 Canadian, with a slight buffer for overages.

How much money did they invest in dividend stocks to achieve their current dividend income?

They have invested just over a million dollars into dividend stocks to achieve their current dividend income.

Outlines

00:00

💼 Journey to Financial Independence and Early Retirement

The speaker shares their personal financial journey, starting with being in $60,000 worth of consumer debt five years ago with no thoughts of retiring before 60. Fast forward to the present, they have created four different streams of income, which have allowed them to become financially independent and retire early. The speaker retired at 45, and their partner retired 7 months prior at age 51. They discuss their intention to cover the sources of their income, how they built them, and how much they have made so far, focusing on the first seven months of 2024. They plan to discuss their income streams from smallest to largest, starting with their high-interest savings account, which serves as an emergency fund and has earned them $386 in interest since April, thanks to a 4.2% interest rate from Wealth Simple.

05:01

📺 Earning Through YouTube and Rental Income

The second source of income discussed is YouTube, where they have been creating videos for over four years, amassing more than 300 videos. They earn money through AdSense, with ads appearing before or during their videos. From the beginning of 2024, they have earned $1,823.74, which is not a significant amount but is appreciated. The third source of income is rental income from a condo in Brazil, which they rent out when not in use, generating just over $7,000 Canadian for the year. They have a property management company that takes care of the property, making this income stream relatively passive. The speaker reflects on the differences in managing properties in Canada versus Brazil, where they now outsource maintenance tasks instead of doing them themselves.

10:04

💰 Building Wealth Through Dividends and Investments

The fourth and most significant source of income is dividend income from their investments in dividend stocks. They have been investing heavily for four years, and this income stream is their primary means of support during their early retirement, allowing them to travel and spend time with family. As of July 2024, they have received $40,576 Canadian in dividends, averaging about $5,800 per month. They maintain a budget of around $5,000 Canadian per month, with a little buffer for overages. The speaker emphasizes that this income requires a significant investment; they have over a million dollars invested in dividend stocks. They also mention diversifying their investments by buying more dividends and ETFs after retirement and invite viewers to join their community to learn more about their financial strategies.

🌐 Summing Up the Multiple Income Streams

In conclusion, the speaker sums up all four income streams for their retirement year to date in 2024, amounting to $49,718.55. They reflect on how each stream contributes to their financial independence and emphasize that while it didn't happen overnight, learning about finances, budgeting, and investing have been key to their success. They encourage viewers that anyone can achieve this with effort, time, and determination. The video ends with a reminder to check out their budget playlist for more details on how they manage their monthly expenses and a farewell note until their next video.

Keywords

💡Consumer Debt

Consumer debt refers to the money owed by individuals to financial institutions or other lenders for the purchase of consumer goods and services. In the video, the couple mentions being in about $60,000 worth of consumer debt, which was a significant financial burden they had to overcome before they could think about retiring early. This term is central to understanding their financial turnaround and the steps they took to achieve financial independence.

💡Financial Independence

Financial independence is a state where one has enough savings, investments, or other sources of passive income to cover their living expenses without the need for a regular job. The video's main theme revolves around the couple's journey to achieve financial independence, which enabled them to retire early. They discuss various income streams that contributed to their financial freedom.

💡Early Retirement

Early retirement is the act of leaving one's job and ceasing work before the traditional retirement age. The video features a couple who retired early, with the husband retiring at 45 and the wife at 51. Their story exemplifies the concept of early retirement, showcasing how they managed to escape the typical 9-to-5 work cycle and enjoy their lives on their own terms.

💡Income Streams

Income streams refer to the various sources through which an individual or family receives money. The video details four different income streams that the couple created to achieve financial independence: a high-interest savings account, YouTube earnings, rental income, and dividend income. Each stream plays a role in their overall financial strategy.

💡High-Interest Savings Account

A high-interest savings account is a type of bank account that offers a higher interest rate than a traditional savings account, allowing money to grow more quickly. In the video, the couple mentions having $20,000 in such an account, earning them $386 in interest since April, illustrating how even a relatively small amount can generate passive income.

💡YouTube

YouTube is a video-sharing platform that also serves as a potential source of income for content creators through advertising revenue. The couple in the video earns money from YouTube by creating and uploading videos, although they clarify that the income is not substantial enough to retire on. Their YouTube channel is part of their financial journey and a means to share their experiences with others.

💡Rental Income

Rental income is the money received from renting out a property to tenants. The video mentions that the couple owns a condo in Brazil, which they rent out when not in use, generating over $7,000 Canadian in a year. This income stream is considered relatively passive and is a significant contributor to their financial independence.

💡Dividend Income

Dividend income is the money received from dividends paid by stocks or other investments. The couple emphasizes that dividend income is their main source of passive income, allowing them to live their lives as they wish. They have invested heavily in dividend stocks, which have provided them with a stable income stream of over $40,000 Canadian in the first seven months of 2024.

💡Compound Interest

Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods. The video briefly touches on the concept when discussing their high-interest savings account, where the $386 earned is an example of compound interest at work, as it represents the growth of their initial deposit over time.

💡Investment Portfolio

An investment portfolio is a collection of financial assets such as stocks, bonds, and other securities. The video discusses the couple's significant investment in dividend stocks, which forms a large part of their investment portfolio. This portfolio is crucial to their financial strategy, providing them with the passive income necessary for early retirement.

Highlights

Five years ago, the couple was in $60,000 worth of consumer debt with no thoughts of retiring soon.

Today, they have created four different streams of income, allowing them to become financially independent and retire early.

The husband retired at 45, and the wife retired 7 months ago at age 51.

They will cover the sources of income, how they built them, and how much they have made so far in the first seven months of 2024.

Their first income source is a high-interest savings account, which serves as an emergency fund.

They earn 4.5% interest on $20,000 in cash, earning $386 in interest since April.

Their second income source is YouTube, where they have been creating videos for over four years.

They have made $1,823.74 on YouTube in 2024, which is not their primary income but a fun way to share their journey.

Their third income source is rental income from a condo in Brazil, which has generated over $7,000 Canadian in 2024.

They have a property management company that takes care of the condo, making this income stream relatively passive.

Their fourth and main income source is dividend income from a significant portion of their portfolio in dividend stocks.

They have received $40,576 in dividends up to July 2024, which works out to about $5,800 a month.

To achieve this level of dividend income, they have invested over a million dollars into dividend stocks.

They encourage others to consider these income streams but acknowledge that it requires time, effort, and capital.

The total income from all four streams for 2024 so far is $49,718.5, demonstrating the power of diversification.

They emphasize that anyone can achieve this with the right mindset, effort, and financial strategies.

Transcripts

well a little over five years ago xan

and I were in about $60,000 worth of

Consumer Debt and to be honest with you

had no thoughts of retiring anytime soon

probably at least until 60 Flash Forward

to today we have created four different

streams of income that have allowed us

to become financially Independents and

actually retire early I retired this

year at 45 and Jan retired 7 months ago

at age 511 one year later was play to

retire at 50 but I'm so happy with my

decision and here's what we be covering

on today's video what are those sources

of income how we were about to build

them and the most interesting part it's

maybe you might be interested how much

have we made so far we do record this

video in August so we going to be

covering the first seven months of 2024

yeah we're going to just do this year in

2024 to give you guys a bit of an idea

so we're going to go through our income

streams and we're going to start from

the smallest income to the largest

income just to give you guys a bit of

perspective and not all of them are huge

earners but they all generate some

income and the first one that are going

to be sharing with you is our height

interest savings account this account is

basically an emergency fund that we have

in cash for something that comes up so

we would have the money available right

away and it's something that all of you

you I would hope are starting to

generate as well because you never know

what's really going to happen down the

road but this money shouldn't just be

sitting there and depreciating so we put

it into a highin savings account yes we

did do this with well simp and by the

way all the links that we just Shar on

this video are going to be appearing not

only in your screen and also on the

description of this video but the first

one it is actually with weal simple

wealth simple does pay

4.5% interest on this amount that we

have and as Christine said it's not a

lot but money is always money right yeah

so currently we have 20,000 in cash

sitting there as an emergency fund just

for something that may come up and at

42% interest we just put this in in

April by the way but so since April

really we have earned

$386 in interest and that's completely

passive we don't have to do anything to

earn that money except keep the cash

invested in this or sitting in this

highin savings account so really easy

way to earn a little bit of extra money

and that's the far of compound interest

you have not heard about that please go

and take a look join nothing we have

$386 so our second source of income and

our second smallest I guess is YouTube

yes we do make money off of these videos

that we try to put out every week for

all of you however it is not as much

much as many people like to think we

make on these videos yes we have been

creating videos for over four years

there's more than 300 videos that we did

create and every weekend we come up with

a new video that we can take a look and

see how our journey to financial

Independence since it started back in

2020 or 2021 I can't even remember that

until today so more than 300 videos

hours and hours and hours of hard work

sharing our experience to financial

independence with you yeah and the way

we get paid yeah it's through AdSense

every video that you just see on your

screen they might come up with you know

a advertise at the botom or even you

have to watch this before we can see the

content from us and this is how we get

paid we don't get to choose the adverse

type is that you guys see but usually

what happens is there is going to be

something related to what we do right so

drum roll since the beginning of

2024 how much have we earned on YouTube

$1,823

74 can't retire on that one guys no no

but we don't do this honestly we don't

do this for the money uh we do it

because we enjoy it and we want to

hopefully help other people with their

financial Independence Journey too would

we love it if this income stream group

sure yeah um but right now it's just a

little bit of extra income that we can

add into our pool we are not even

discounting the amount of money that we

invested in buying equipment and

everything else so this money is not

even there if you were the amount

received from YouTuber will be on the

negative part of it however if it's

something that you're interested in

doing by all means we would totally

encourage you to start a channel it's a

lot of fun and the people that you get

to meet and interact with are amazing

and you really don't need to put a lot

of money into it to start a channel you

just start recording things and put them

up and wait for people to uh to start

watching yeah it is definitely great so

but not passive no weot of work you have

to work you have to work you have to

create videos if you don't create you

can't earn them no our third source of

income and our second largest uh stream

of income in retirement is actually

rental income uh we did sell our house

in Canada along with everything we own

however we do own a condo in Brazil inan

pesoa Brazil and in fact that's where we

are right now recording this video when

we're not staying at the condo we do

rent it out for vacation rentals um and

how much has that generated for us this

year uh just over

$7,000 Canadian Canadian that's how much

we have received um and this one is

pretty passive as well it I mean it took

a little bit to pick out all the stuff

that goes into it but really there's not

a lot of our own work and sweat that has

to go into this particular stream of

income we have a property management

company that really looks after the

place extremely well for us any issue

even when we're here if there's an issue

that we need fixed with the condo they

help us out and they fix it no problem

so before I going to the fourth one is

it different than in Canada I was even

telling Christine because since we moved

to Brazil now we are spending some time

here I was asking her you miss kind of

fixing things and doing things around

the house and she said yes I do and I

said no I do not because this is how we

are used to uh do things in you thank

God we can you know afford to have this

sort of I don't know is not a privilege

but we can pay and people will do the

work for us rather than us having to pay

yeah and having to do ourselves and this

stream of income does require quite a

bit of capital in order to set this one

up I mean High interest savings account

you put whatever you can in there and it

starts to generate the interest rate

YouTube doesn't require a lot of capital

in order to start that stream of income

but but a rental property is going to

cost you money right and in on average

the condo here in Jan pesoa cost us

about

$140,000 Canadian to buy it new build

and put all of the fixtures and

appliances and furnish it there was

startup Capital but we considered it an

investment into our future and right now

it's doing well I mean for the over the

course of the year if this keeps up

that's going to be another $114,000

worth of income yeah for us yeah and if

you were to actually include the end of

the year with the New Year's Eve and

everything this amount that we have

received it's almost doubled because

it's High season and as a result a lot

more it's a lot more money yeah and then

comes our fourth and final stream of

income and it's one that you guys know

we're passionate about and the main

reason that we have been able to retire

early it is dividend income yep by so

dividend and distributions that we have

been receiving since we started

investing more heavily which is going to

be how many years ago four years ago now

right um and we do have a significant

portion of our portfolio in dividend

stocks so not our entire portfolio is

not dividend stocks but there is a large

portion of it that it is and that's the

money that we use that P that income and

it is passive income that comes in every

month is the money that we use to live

on and do what we're doing now travel

the world spend some time in Brazil with

family um and start seeing some new and

exciting places yeah so how much have we

uh earned so far so far in up to July

2024 we have received

40,576

Canadian dollars it works out to about

$5,800 a month and as many of you know I

think sh will link a playlist but we try

to stay on a $5,000 Canadian budget each

month um but we do have that little bit

of a buffer each month in case there's

some overages here and there and it's

this one is a very stable yeah it's

pretty stable but it it requires quite a

bit of investment and if you're

wondering how much does it cost or how

much do you need to invest in order to

receive this quantity of dividends in s

months we have just over a million doll

invested into dividend stocks yeah so

it's not something that's just going to

happen overnight it's taken us years of

investing and saving and earning to be

able to achieve this as well as selling

a house and bunch of other stuff so yeah

so far so good and even talking about

dividends uh we use it to share the

dividends that you know even the

individual companies that we've had we

kept doing this inside our community so

when by by the way we also after pris

retired we Diversified a little bit more

and we bought more other uh dividends

and ETFs as well if you are interested

you can take a look on our community and

you can join us and we can learn

together yeah so when you add up all of

our passive in or I shouldn't say

they're all passive because they're not

all passive but when you add up our four

income streams for our retirement year

to date in 2024 so far we have earned $

[Music]

49,7

185 yep not bad four different streams

of income bringing in a little bit here

and there it really does add up yeah it

does and this is something that you can

all do as well it's not I mean this

didn't happen overnight for us but

really once we started to learn about

finances we learned how to budget track

our spending control our spending

because it was a little crazy we started

to find more money here and there to

begin the Investments to start investing

into highin savings accounts to start

putting towards rental in properties

abroad right like these are these are

options for people and we're not saying

that they're going to be you know the

best ones or the best fit for everybody

yeah for us they've worked out quite

well we are real people and you can see

that it's working because since 2020 on

this YouTube channel you have seen how

we struggle and how we succeeded and how

we were able to relax early and here we

are yeah real numbers anybody can do it

it's achievable it's just how much

effort and time and grit you're going to

put into it yeah so anyways if we can do

it he can believe me that's true so that

was the video for this week we wanted to

share with you our four streams of

income four retirements and if you're

interested in how we spend that dividend

income you can check out the divid or

our budget playlist where we break down

our monthly budget each and every month

to let you know if we're tracking at

5,000 over or below we hope that you're

safe and we will see you in our next

video take care guys bye