Financial freedom

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jamels2
jamels2 Posts: 437 Forumite
in Pensions, annuities & retirement planning
Im 35 and own a maisonette worth 225k with a mortgage of 50k. I work full time and earn about 30k a year.

Im single with no plans for wife or kids. Whats my best route to financial freedom? Id like to one day have an income coming in without working full time and be able to travel etc.

Thanks for any advice.

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  • xylophone
    xylophone Posts: 44,422 Forumite
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    Whats my best route to financial freedom?

    Have you obtained the best deal you can on the mortgage?

    You are saving as much as possible into your occupational/personal pension?

    You are saving into S&S ISA?
  • sheslookinhot
    sheslookinhot Posts: 1,977 Forumite
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    What does "financial freedom" mean ?
    Mortgage free
    Vocational freedom has arrived
  • Triumph13
    Triumph13 Posts: 1,730 Forumite
    First Anniversary Name Dropper First Post I've been Money Tipped!
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    jamels2 wrote: »
    Whats my best route to financial freedom?
    There's no magic wand or sure-fire get rich quick idea to get you where you want to be. It all just boils down to maximising the difference between your income and your spending and investing those savings. Increasing your income can make that easier, but decreasing your spending is best of all because at the same time as increasing the amount you can save, it decreases the amount you need to save to be financially independent.
    If you haven't already discovered it, I can thoroughly recommend Mr Money Mustache. http://www.mrmoneymustache.com/
  • TomSurrey
    TomSurrey Posts: 23 Forumite
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    Agree with the mr money moustache post.

    Basically you need a spreadsheet, with your current outgoings and how much you can save each year. When your income from your saving exceeds your outgoings (or planned outgoings) you can quit your job...

    If you want to do the maths really simply, if you think you need £25k a year, you need 25 times that to be financially free (assuming thats before the state pension kicks in).... so £625,000
  • Reckless_Saving
    Reckless_Saving Posts: 54 Forumite
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    Setup a budget with your current income and outgoings then step by step look at each item to see what you can comfortably downsize on to maximise your savings rate, then it's using the savings in a way to maximise returns based on you tolerance to risk, for me first 10 years I stuck to low-risk.

    For example if you currently spend up to £5 on your work lunch and you comfortable spending a few minutes each day making your own lunch for under £1, saving you £900 a year. Little things don't seem material but years down the line make a big difference.

    Couple of useful Reddit groups, having a read through their about sections
    https://www.reddit.com/r/ukpersonalfinance
    https://www.reddit.com/r/FIREUK


    Flowchart - https://i.imgur.com/ezGWhE3.png
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