Yep. That'll work. We are also retired military, our budget is a little less than that and we pretty much do anything we want including travelling overseas. We are full timers in a 40 foot motorhome that we bought 11 years ago when we started this adventure. We still work 4 or 5 months of the year but any of that income goes into long term investment so it doesn't count towards the budget. Suggestion though, work on a daily budget, not a monthly. Easier to keep track of things so they don't get away on you. We retired at 40 and have been at it for 11 years. Hope to be at it full time for awhile yet. At some point a small house or condo wil be in the cards for us but that is hopefully a ways away. :). My point is, try and plan for an exit strategy.