I am a reader of MMM.
Our case: 32 years/ 7 years married
Double income, no kids yet.
Gross salary 1: £62,000.00
Net salary 1: £40,592
Monthly salary 1 post deduction for pension/ shares: £3,345.93
Gross salary 2: £52,500
Net salary 2: £35,368
Monthly salary 2 post deduction for pension/ shares: £2,947.32
18% pension of salary 1. 6% salary sacrifice contribution
10% pension of salary 2. 5% salary sacrifice contribution.
Both contribute about £150 per month, £300 total into an employee share scheme. Equates to approx £400 per month investments.
Other taxes: 2 x Council tax: circa £3000
Net income post tax approx £70k/ monthly
Income £5800 a month
Spend: circa £1,200 on mortgages/ council tax. One rental property income goes against one mortgage so netting that off here.
£200 in long term investment
£100 on utilities
£120 cleaner (I know I know I know)
£1350 credit card which includes all spending - food, clothes, nights out, travel, holidays, house insurance, car insurance and so on.
We can save approx £3k a month.
Current Value of Home £350,000
Current value of Rental property £185,000
Current Value of Holiday Home £70,000
50% Current Value of co-owned home. Cost covered by rent. £70,000
Pension balance 2 £40,157
Shares 2 £3,727
Investment fund 1 £42,000
Investment fund 2 £32,000
Pension balance 1 £62,000
Total Assets £869,884
Left to Pay on House Mortgage £128,700
Left to Pay on rental property £115,130
Left to holiday home £38,000
Left to Pay on co owned place £56,000
Total Liabilities £337,830
Net worth: £534,254
As you can probably tell from the above we have focused on debt repayment and property acquisition. We have some longer term investments but I feel that we should be turning our focus to investments funds but don't know where to start.
In order to achieve FIRE we would be very comfortable downsizing and would need max of net worth £200k for property. When rental property is paid off it will give income of £800 per month.
Really just looking for inspiration and guidance on where to go next. We are in an ok financial situation and are semi-mustachian. If we pay off the mortgage and rent the holiday home often enough so it is cost neutral we then go down to needing £2000 a month annually.
Any ideas on where to go next and time to FIRE? Happy to do it in 10 years but looking to see if that is feasible.