(uk centric) Today I topped up my pension and realised that I’m 1/4 of the way towards my goal of FI. My FI goal is pretty simple, £500k invested between both pension which accessible at 55 and ISA’s which will be used to fund early retirement. I wont retire when I’m FI as I own my own business and absolutely love what I do, but I’m determined to travel for an extended period of about a year when I reach FI. Call it an early retirement a la Tim Ferriss.
At 30 (31 now) I paid off my mortgage (160k). This is in an offset mortgage and usable for potential investments if the market drops like a stone. I don’t count this in my net worth as in reality it has “paid off” the mortgage and is dead money unless a huge opportunity presents itself.
Investments today sit at £125k and this has been saved within the last 14 months. Fully invested in Vanguard Lifestrategy 100% acc fund. Growth has been minimal at 3.5%.
I’m very fortunate to have profitable business interests in the past 4 years and while I have some very nice things and do some lovely travelling, I honestly watch every penny like it was my last. 50% of my expenditure last year was travelling so I could effectively hit a > 90% saving rate if I cut that out. More likely though is an increased income, which would have the same effect as I’m on a real saving drive at the moment.
I’m far too heavily weighted in my pensions, but the tax relief here in the UK is too appetising to turn down. 70/30 in favour of the pension, so while I would technically be FI there wouldn't be the funds available in my non-pension accounts to actually retire. I know I need to rebalance and address my pension / non pension accounts sooner rather than later, but for this financial year, it’ll be a “fill it to the top” mission.
I’m super excited to hit my second milestone and the focus really has come from finding MMM and this forum last year.
Oh and before you think it was a huge investment that took me to 25%. It wasn’t!
Old Gambling Account Balances - £12.86
Credit on a now unused credit card - £1.16 (why I was in credit on a credit card is a whole other story)
Balance in an unused current account - £48.30
I stopped short of raiding the change tin. But that is actually being used to pay for all discretionary food purchases, while we run our cupboards down. The price of a pint of milk in Tescos is 49p. I know that because I paid for it in 5ps this morning.
Keep on trucking guys
