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  • FIRST POST
    • AsgardFI
    • By AsgardFI 12th Mar 17, 3:10 PM
    • 6Posts
    • 7Thanks
    AsgardFI
    The Pursuit of Financial Independence
    • #1
    • 12th Mar 17, 3:10 PM
    The Pursuit of Financial Independence 12th Mar 17 at 3:10 PM
    Hi All,

    I hope this is the best place to put this blog type post. I wanted to make a place where those of us on here that might be pursuing full Financial Independence (FI) after becoming Mortgage free or of course whilst on the way to being Mortgage free.

    I myself have been on a journey toward FI since 2013. I had the goal at the time of becoming full FIRE (Financial Independence retire early) however I since like the idea of only going for FI with the option of part time work or early retirement if I wished so. I now work for the NHS and get a huge amount of pride helping people with my IT skills and retiring from this currently doesn't interest me as much.

    I currently have bare bones FI at the 4% withdrawal rate which would allow for me to have all the essential bills paid for (council tax, food/drink, gas electric, internet etc however to reach my current level of spending, I will need to keep investing at my current 55% savings rate until 2022 assuming 5% real growth on average. My actual final FI target though includes more of a buffer and extra money for future expenses and will take me up until 2025.

    Some of my actions so far
    • Track my expenses and outgoings to the penny. I used to think this was crazy but I actually enjoy doing this and it helps me only buy things that provide me with real value
    • I use the Vanguard Life Strategy 60% Acc Fund (diversified global index tracker low fees fund)
    • Still maintain a large cash fund so if I need the cash for employment loss etc, I don't lock in losses by selling fund units if it happens to be in a decline at the stage. Still having cash also is nice psychologically for me
    • Invest 55% of monthly income
    • Low monthly outgoings (budgeted well)
    • I have no guilt spending money on activities and things if I get good bang for buck as it were, I was too strict at first and learnt to ease up a little
    • 2 extra side hustles to earn extra income each month
    • Live for the moment and the future, it's not an either or

    I would love to hear from anyone who is also into the FI commmunity or those who are interesting in starting.

    Cheers
    AsgardFI
    Pursuing Financial Independence each and every day...

    Debt/Mortgage Free - 2014 // Side Hussle - 2014 // 50% + Savings rate - 2015 // Bare bones FI - 2017 Jan // Current spending FI - Prediction 2022 // Target spending FI - Prediction 2025
Page 1
    • edinburgher
    • By edinburgher 12th Mar 17, 3:56 PM
    • 10,611 Posts
    • 55,084 Thanks
    edinburgher
    • #2
    • 12th Mar 17, 3:56 PM
    • #2
    • 12th Mar 17, 3:56 PM
    Welcome
    • 2013-2017 is incredibly fast for FI (you would have needed a savings rate of 87% or thereabouts), I take it you had a good savings rate for quite a few years before you 'saw the light'?
    • Do you own your own home? Any kids? (not chatting you up, just curious about your circumstances as you're already practically FI)
    • You have a very low equity allocation compared to most of the FI-minded folk that I read about on blogs, Reddit, Early Retirement Extreme etc. Any particular reason for that?

    There are quite a few posters on this board who are FI/RE minded. Secret Saving Squirrel is quite far along the road, I'm also interested (although much further to go, only managing 30% or so SR), Slowly Fading is all frugalista/FI bloggertastic etc. with an inexplicable love of dividend shares
    • AsgardFI
    • By AsgardFI 12th Mar 17, 4:18 PM
    • 6 Posts
    • 7 Thanks
    AsgardFI
    • #3
    • 12th Mar 17, 4:18 PM
    • #3
    • 12th Mar 17, 4:18 PM
    Thanks Edinburgher for the welcome. ...

    Yes I own my own home, no kids yet. I had a boost financially speaking from a Family tragedy in 2013 that gave me a head start on the house front albeit one tinged with sadness of course. I am however eternally grateful as some people lose a family member and have no such financial help.

    With regards to equity exposure. Well, I have been in the community a good few years like you it sounds. I think 60% is moderate and not really low, I toyed with 80% using the whole 100 divided by 20 math but I'm 30 years old now so I should be on 70% but to be fair, I just am comfortable with 60% personally, that allows me to capture the majority of the returns whilst historically at least being able to withstand the inevitable declines more easily. I once read how 60% captures 93% (90% correction) of possible returns if globally invested etc.

    I have been the definition of an arm chair investor, I learnt a lot about it all, chose my fund, Invest every month, check it twice a year and that's it. .

    It's great to start posting on here

    AsgardFI
    Last edited by AsgardFI; 12-03-2017 at 4:32 PM.
    Pursuing Financial Independence each and every day...

    Debt/Mortgage Free - 2014 // Side Hussle - 2014 // 50% + Savings rate - 2015 // Bare bones FI - 2017 Jan // Current spending FI - Prediction 2022 // Target spending FI - Prediction 2025
    • greent
    • By greent 13th Mar 17, 7:06 PM
    • 5,869 Posts
    • 59,327 Thanks
    greent
    • #4
    • 13th Mar 17, 7:06 PM
    • #4
    • 13th Mar 17, 7:06 PM
    There are several on this board who are at various stages of FI/RE, as Ed has said. It's something that we haven't paid that much attention to as yet, just passing thought - but we have decided to get more active on it (just waiting to see if some big changes are going to happen which will affect what we do/ how we do it) Have to admit that OH and myself are fairly clueless on it all though!
    I am the master of my fate; I am the captain of my soul
    Repaid mtge early (orig 11/25) Bal 01/09 £124616 01/10 £104927 01/11 £89873 01/12 £76317 01/13 £52546 01/14 £35356 01/15 £12133 07/15 £NIL
    Next: BTL Mtge 12/16 £69786. 2017 OPs (#18) £3000/£3286
    Net sales 2017 £657.00/£500 PAYDOX17 £9887/£10k Decluttered 865/2017 items
    • AsgardFI
    • By AsgardFI 14th Mar 17, 7:35 PM
    • 6 Posts
    • 7 Thanks
    AsgardFI
    • #5
    • 14th Mar 17, 7:35 PM
    • #5
    • 14th Mar 17, 7:35 PM
    Before I got into reading about the whole FI thing, it's amazing how I never even knew about it being a possibility. I always assumed I'd be working until 60s and that early retirement was only really 55. It's really changed my life learning about it..it's obviously easier the earlier you start but it's never too late really unless already retired at 65
    Pursuing Financial Independence each and every day...

    Debt/Mortgage Free - 2014 // Side Hussle - 2014 // 50% + Savings rate - 2015 // Bare bones FI - 2017 Jan // Current spending FI - Prediction 2022 // Target spending FI - Prediction 2025
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