FIRE Financial Independence Retire Early

[All uphill]

Anyone into this?

https://en.m.wikipedia.org/wiki/FIRE_movement

Prompted by another thread I thought it might be interesting to discuss here after we have had a couple of years of change to our spending patterns.

Our version of this over the last 15 years has been to ruthlessly strip out things from our household budget that give us little pleasure, and find ways of doing the things we like cheaply, and then invest the surplus wisely.

Examples that suited us but wouldn't suit everyone are sticking with our 16 year old car and planning not to replace it.
I haven't drunk alcohol for 4 years - didn't enjoy it anymore.
I cook 99% of our meals. Again we had many disappointing meals out and decided to stop.

Does this appeal to you?

 

[SpokeyDokey]

Anyone into this?

https://en.m.wikipedia.org/wiki/FIRE_movement

Prompted by another thread I thought it might be interesting to discuss here after we have had a couple of years of change to our spending patterns.

Our version of this over the last 15 years has been to ruthlessly strip out things from our household budget that give us little pleasure, and find ways of doing the things we like cheaply, and then invest the surplus wisely.

Examples that suited us but wouldn't suit everyone are sticking with our 16 year old car and planning not to replace it.
I haven't drunk alcohol for 4 years - didn't enjoy it anymore.
I cook 99% of our meals. Again we had many disappointing meals out and decided to stop.

Does this appeal to you?

Did this over 20 years ago.

Took a real hard look at where our income (lots) was going and asked ourselves was it really worth the relentless slog of earning it.

Took us a while to press the button but when we did it was all or nothing.

Dumped the mortgage, slammed the brakes on expenditure, saved/invested like crazy and both then quit corporate.

Apart from getting together ❤️ it was the best thing we ever did.

 

[Ming the Merciless]

This may help you, examine your needs in each of these categories. Safety needs for example might mean a roof over your head, how can you guarantee that? Now you have a guaranteed roof over your head, what are you now free to do regards other needs?

 

[ClichéGuevara]

I know I've said it previously, but I think some people don't seem to appreciate how wealthy they actually are compared to others. I think a lot of people have to do what you suggest, but not through choice or for investment, but to simply survive.

I've sort of done that, but in a slightly different way.

I worked out what my pension would be for the earliest realistic point of retirement, and I try to live on that, and bang the rest into a savings account. That way, if I've miscalculated, or something unexpected crops up, I have a safety net, and I'm used to living on the lower amount when the need arises.

 

[annedonnelly]

Basically that's how I was brought up. Don't waste money buying things you don't need or to replace ones that you already have. Buy quality that will last. As children we had savings accounts set up for us - I think it might have been my granddad who set them up. He certainly gifted us Premium Bonds.

I was fortunate that I was very well paid for a while and continued with the saving as I'd never done any different. Of course saving is a lot easier when you have no dependents. So I'm now in a position that I could easily retire without touching my pension. That was the plan for this year but if I'm going to have reduced mobility for a few months it might be better to sit at a desk and get paid rather than not be as active as I want to be.

 

[cyberknight]

I need to teach mrs ck this , she spends for fun .

 

[Once a Wheeler]

As someone who holds that the purpose of life is entelechy, the idea of retirement is inappropriate.

 

[oldwheels]

In the past I did I suppose "waste" a lot of money buying caravans then camper vans on to motorhomes and then later had several boats from a Wayfarer dinghy and latterly a 26ft cruiser which got downsized to a 19ft one.
Scuba diving is not cheap either as the gear is pretty expensive tho' the actual diving was not in my case at least. I also had some creels for langoustine.
We got a lot of pleasure from all these things and I did save some cash but better to enjoy things while you still can.

 

[All uphill]

In the past I did I suppose "waste" a lot of money buying caravans then camper vans on to motorhomes and then later had several boats from a Wayfarer dinghy and latterly a 26ft cruiser which got downsized to a 19ft one.
Scuba diving is not cheap either as the gear is pretty expensive tho' the actual diving was not in my case at least. I also had some creels for langoustine.
We got a lot of pleasure from all these things and I did save some cash but better to enjoy things while you still can.

I agree with you, and have enjoyed dinghies too.

What I hated was spending money on things I didn't enjoy or genuinely need, or that I only needed because of the job I did. A holiday to recover, a better car, more wine, please, so I can sleep.

 

[Debade]

Here is a site, I have been a member for many years. USA based but most financial discussions will apply. You might find some helpful tools and perhaps other groups you want to follow such a Boggleheads. https://www.early-retirement.org/forums/

 

[Arrowfoot]

Option 1 - Fire, aim is to retire early.

Option 2 - Another alternative is to find the right job, occupation or business which is pleasure to wake up to, provides a remuneration that allows one to enjoy a lifestyle during the prime of your life and still have enough to retire comfortably.

My sense is that younger generation seem to go for option 2. I see a lot more lifestyle occupations now than before. Live in Bali but design websites online for the Western clients and draw a western income, still pay into National Insurance etc. Take up work overseas such as Singapore, HK, Dubai and draw an expat income. Do proof reading for publishers from the comfort of your home while tending to your garden and family, set up an Artisan bakery at Soho. Mechanic with a F1 team and travel etc etc

 

[Bazzer]

We did a softer version of this when we had our mortgages, whether home or buy to let. - Our first mortgage was when interest rates were in double figures. Provided the interest rate didn't exceed what we had budgeted for, the payments we made at the start of the mortgages we stuck with, by switching to a standing order rather than direct debit. Our reasoning was that if rates fell, our budgets had already been worked out, so why not stick with them? If circumstances changed in the future and we needed the cushion we had built up, it was there ready for us.
It also benefitted us as overpayments effectively gave us a higher return of interest than savings rates.
Also any expenses we received through our jobs, (mainly mine), were also put towards the mortgages as single payments, on top of the standing order. As the amounts were smaller, they just went straight into designated building society account and once the minimum excess mortgage payment had been reached, the account was emptied by another payment and the process started again.

 

[winjim]

I'm getting a bit of a Kirstie Allsopp vibe from this thread, when I wish it was more Jack Monroe.

 

[Deleted User]

My Missus retired from Nursing at 55 (2 yrs ago) so half way there, we have no mortgage but both our kids are at home at the moment 23&20 so realistically until they leave a true assessment of expenditure is difficult.

I've had provisional thoughts on what to cut back on such as the various TV subscriptions that only the kids watch, take aways will be halfed, heating and food bills will reduce so hopefully not too much longer before I look at jacking.

 

[Debade]

There are lots of approaches to FIRE. Perhaps I missed a posting of a calculator. There are many. Here is one that gets some good feedback. I also like the one on the Fidelity website. Perhaps they have a European version assuming there might be some different factors.

Here is the firecalc one. https://firecalc.com/ It's not easy and forces you to make assumptions that might not be comfortable. But, the good news is if you do that, I think your success rate will be enhanced.

My definition of retirement is not necessarily to stop working. It is to place yourself in a position to do what you want. It might be to stay in the same job (my Dad did that) or it might be sitting on a beach. The key is the freedom of choice. It's a powerful freedom that only comes when your resources meet your goals.