Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • Simms92
    • By Simms92 14th Feb 18, 10:02 AM
    • 6Posts
    • 2Thanks
    Simms92
    25 year old.. How can I retire ASAP?
    • #1
    • 14th Feb 18, 10:02 AM
    25 year old.. How can I retire ASAP? 14th Feb 18 at 10:02 AM
    Apologies if this is in the wrong section, I'm just looking for the best advice for me moving forward. I'm 25, not too far from 26 and I really don't like working. I don't want to be working 8 hours a day for the rest of my life, I want to have the option to stop working and do something that's more fulfilling for me.

    I do own my home, which also makes up part of my income (renting rooms). Its worth ~200k with ~130k mortgage left.

    My monthly income is made up of £2350 wage and £1100 room rent income (after taxes). So £3450 total. Including all bills/mortgage (£630) and living costs, I spend around £1250 a month, leaving me with £2000 a month (slightly less if I include holidays + treats). I have been overpaying my mortgage for the last year, currently paying off the mortgage at a rate of 24k a year including overpayments. No other debts and I don't own a credit card.

    Now my original plan was to keep smashing the overpayments on the house (paid off in around 5 years), but I'm now wondering if this is the right thing to do. Is there a better way I could use the spare money I have each month? Another property?

    My girlfriend has a 250k property with 100k mortgage remaining. Eventually I will move in with her, but unsure what to do with my house when I do.

    My goal would be to get into a position where I have £2k+ income a month with no debts and without working. As soon as possible. Any ideas?
    Last edited by Simms92; 14-02-2018 at 10:04 AM. Reason: edit
Page 1
    • Lokolo
    • By Lokolo 14th Feb 18, 10:09 AM
    • 19,937 Posts
    • 15,057 Thanks
    Lokolo
    • #2
    • 14th Feb 18, 10:09 AM
    • #2
    • 14th Feb 18, 10:09 AM
    Find a job you enjoy instead.
    • HappyHarry
    • By HappyHarry 14th Feb 18, 10:12 AM
    • 549 Posts
    • 812 Thanks
    HappyHarry
    • #3
    • 14th Feb 18, 10:12 AM
    • #3
    • 14th Feb 18, 10:12 AM
    Being unproductive for the next 60 years is unlikely to make you happy.

    I'm not sure this is really a question about short term financial objectives, as I think the key to your situation is this;

    I don't want to be working 8 hours a day for the rest of my life, I want to have the option to stop working and do something that's more fulfilling for me.
    What is that "something" that you would find more fulfilling? Can you use that "something" to generate an income or wealth for you to live on and provide for your future?

    One of the key reasons that people start their own businesses is that they don't want to work for someone else 8 hours a day / 5 days a week / 52 weeks of the year. They want something more fulfilling.

    If you can find something that you enjoy, and find a way that you can make some money from it, then you could be very happy, wealthy, and fulfilled for rest of your life. Many, many successful people have done exactly that.

    Good luck!
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
    • Fatbritabroad
    • By Fatbritabroad 14th Feb 18, 10:13 AM
    • 283 Posts
    • 147 Thanks
    Fatbritabroad
    • #4
    • 14th Feb 18, 10:13 AM
    • #4
    • 14th Feb 18, 10:13 AM
    I would still overpay but maybe only by a few hundred pounds and invest the rest assuming you have enough for emergencies.

    I'm 37 and have just fixed my mortgage for ten years. Paying a higher rate than I could at 2.4% but leaves me free to invest instead. I'm at 60%ltv so at that rate my money can worn harder elsewhere.

    I'm saving 400 Into my companies various Saye schemes and 300 a month into a s and s isas. I keep about 15k in cash and have 24k in shares. Another 6k in p2p. A the moment I want as much of my cash working at a higher rate than my mortgage as I can.
    • Fatbritabroad
    • By Fatbritabroad 14th Feb 18, 10:14 AM
    • 283 Posts
    • 147 Thanks
    Fatbritabroad
    • #5
    • 14th Feb 18, 10:14 AM
    • #5
    • 14th Feb 18, 10:14 AM
    You can put 20k a year into a s and s isa so with that kind of spare cash you can build a good fund very quickly.
    • CatLady13
    • By CatLady13 14th Feb 18, 10:30 AM
    • 40 Posts
    • 36 Thanks
    CatLady13
    • #6
    • 14th Feb 18, 10:30 AM
    • #6
    • 14th Feb 18, 10:30 AM
    Get yourself in a position of having around a year!!!8217;s worth of outgoings saved somewhere. Build up a business doing something you are passionate about (whilst still working). When your business is starting to make enough to allow you to quit your job and you also have that year!!!8217;s worth of savings buffer, then do it - quit the job and do something you want to be doing.

    I!!!8217;ve stated a year!!!8217;s worth of outgoings as it can take quite a while for your business to build up plus there!!!8217;ll be periods of cash flow not flowing.

    Or your other options are to invest your money in stocks and shares but you!!!8217;ll have to ride it out for quite a few years. Or invest in an established business. P2P lending. Property rentals. Play the lottery and Premium Bonds and hope you get very, very lucky (chances are you won!!!8217;t and will just throw away your money - probably more a guarantee of losing it). Everything comes with a risk, some greater than others.

    It all comes down to what do you want to do with your time?
    • Lungboy
    • By Lungboy 14th Feb 18, 10:45 AM
    • 1,208 Posts
    • 1,120 Thanks
    Lungboy
    • #7
    • 14th Feb 18, 10:45 AM
    • #7
    • 14th Feb 18, 10:45 AM
    My goal would be to get into a position where I have £2k+ income a month with no debts and without working. As soon as possible. Any ideas?
    Originally posted by Simms92
    £2k net i assume? That means £30k a year gross. So £100k every 3 and a bit years. Say you live another 70 years, that's a £2.1m pot. Obviously it's not that straightforward as that assumes no growth in your pot etc but you get the idea. Work out how long it'll take you to make that money and there's your very rough guideline answer.
    • Eco Miser
    • By Eco Miser 14th Feb 18, 10:46 AM
    • 3,423 Posts
    • 3,183 Thanks
    Eco Miser
    • #8
    • 14th Feb 18, 10:46 AM
    • #8
    • 14th Feb 18, 10:46 AM
    I don't want to be working 8 hours a day for the rest of my life
    Originally posted by Simms92
    Get a job where you only work 5 hours a day, 4 days a week, save hard, invest your savings and retire early.
    Worked for me.
    Eco Miser
    Saving money for well over half a century
    • PeacefulWaters
    • By PeacefulWaters 14th Feb 18, 11:20 AM
    • 7,738 Posts
    • 9,700 Thanks
    PeacefulWaters
    • #9
    • 14th Feb 18, 11:20 AM
    • #9
    • 14th Feb 18, 11:20 AM
    I'd say get a real idea or get real.
    • dawyldthing
    • By dawyldthing 14th Feb 18, 11:24 AM
    • 2,813 Posts
    • 2,742 Thanks
    dawyldthing
    Pay it off then go part time? That's what I did (but my house is worth a lot less than yours to be fair)
    My targets to end 2018:
    1) To get down to 11 stone then treat to a safari. At start 17 stone 7 lbs *60lbs lost* *31lbs to go*
    Started SW16st13lbs tues11/7/17 - 32 weeks in -52lbs
    -> target 11 st 13lbs by mid June -> 15 weeks & 18lbs to go
    2) to find new challenges
    • JohnLondon
    • By JohnLondon 14th Feb 18, 11:32 AM
    • 9 Posts
    • 1 Thanks
    JohnLondon
    Do the lottery!
    • droopsnoot
    • By droopsnoot 14th Feb 18, 11:39 AM
    • 1,109 Posts
    • 706 Thanks
    droopsnoot
    There's plenty of stuff around the web on this subject, FIRE is a term I hear a lot. You could read some of the stuff on the "Mr Money Mustache" web site though some of it is very US-centric and the poster handily started with a very well-paid tech job. Plenty on the site comments and forums that have not, though. ( http://www.mrmoneymustache.com/ )
    • dunstonh
    • By dunstonh 14th Feb 18, 11:46 AM
    • 91,128 Posts
    • 58,147 Thanks
    dunstonh
    I made a career change in my early 20s after thinking I was in a job-for-life. To get to that stage, I went to college three nights a week after work for several years. It was hard work but it put me in a position that I could never have dreamed of in my 20s.

    That made my days effectively 9-5 work, 6-9 college. So, 12 hour days.

    If you want something, you have to work for it. You are in your 20s. If you cant handle 8 hours now then you have no hope in your 40s or 50s. However, now is the time to do something about it. Decide what you want and how you need to get it.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Curos
    • By Curos 14th Feb 18, 12:00 PM
    • 16 Posts
    • 5 Thanks
    Curos
    There's plenty of stuff around the web on this subject, FIRE is a term I hear a lot. You could read some of the stuff on the "Mr Money Mustache" web site though some of it is very US-centric and the poster handily started with a very well-paid tech job. Plenty on the site comments and forums that have not, though. ( http://www.mrmoneymustache.com/ )
    Originally posted by droopsnoot
    +1 for MMM but for a UK slant/insight on Financial Independence check out The Escape Artist at https://theescapeartist.me/ (who cites MMM as his inspiration for creating his blog).

    There's an episode of the Choose FI podcast that had The Escape Artist and Alan Donegan on that was interesting.
    • aj23
    • By aj23 14th Feb 18, 12:02 PM
    • 191 Posts
    • 88 Thanks
    aj23
    I'm 25 too and by the time we reach retirement age, it will probably be 70/71.
    • MoneyGeoff
    • By MoneyGeoff 14th Feb 18, 12:03 PM
    • 83 Posts
    • 45 Thanks
    MoneyGeoff
    You are doing very well but it's a bit mind boggling to see threads like this without the word Pension mentioned even once.

    If you are serious about it you could retire in your 40s given the start you have already made. FIRE is something of a lifestyle and you need to do a lot of reading up if you want to get into it. Here's some examples:

    http://www.retirementinvestingtoday.com/
    http://www.mrmoneymustache.com/
    https://theescapeartist.me/
    http://financiallyfreeby40.com/blog/
    http://monevator.com/
    http://diyinvestoruk.blogspot.co.uk/
    https://www.reddit.com/r/financialindependence/
    https://simplelivingsomerset.wordpress.com/
    http://earlyretirementextreme.com/

    Most of the above contain lists with links to other sites.

    Tax efficiency (and therefore pensions) is one of the keys along with saving hard and investing wisely.
    • kidmugsy
    • By kidmugsy 14th Feb 18, 12:03 PM
    • 10,198 Posts
    • 6,924 Thanks
    kidmugsy
    I don't want to be working 8 hours a day for the rest of my life
    Originally posted by Simms92
    Eight whole hours? Ooh, the agony.
    Free the dunston one next time too.
    • PeacefulWaters
    • By PeacefulWaters 14th Feb 18, 12:12 PM
    • 7,738 Posts
    • 9,700 Thanks
    PeacefulWaters
    You are doing very well but it's a bit mind boggling to see threads like this without the word Pension mentioned even once.

    If you are serious about it you could retire in your 40s given the start you have already made. FIRE is something of a lifestyle and you need to do a lot of reading up if you want to get into it. Here's some examples:

    http://www.retirementinvestingtoday.com/
    http://www.mrmoneymustache.com/
    https://theescapeartist.me/
    http://financiallyfreeby40.com/blog/
    http://monevator.com/
    http://diyinvestoruk.blogspot.co.uk/
    https://www.reddit.com/r/financialindependence/
    https://simplelivingsomerset.wordpress.com/
    http://earlyretirementextreme.com/

    Most of the above contain lists with links to other sites.

    Tax efficiency (and therefore pensions) is one of the keys along with saving hard and investing wisely.
    Originally posted by MoneyGeoff
    Retiring on a private pension in the next few years appears to be unlikely aged 25.

    While pensions should be part of a retirement plan, they're no use for income for another three decades.

    The OP seems to need a dose of reality to match a retirement ambition which most probably share and few can achieve.
    • Freddie Allen
    • By Freddie Allen 14th Feb 18, 12:21 PM
    • 18 Posts
    • 2 Thanks
    Freddie Allen
    It seems like you want to enjoy rest of your life with your girlfriend instead of wasting time for about eight hours daily So just start investing in any of the best early retirement benefits scheme.
    HNY
    • economic
    • By economic 14th Feb 18, 1:28 PM
    • 2,705 Posts
    • 1,438 Thanks
    economic
    Im 34 and thought i would just "retire" but i got bored and found myself recently back in work. I had 10 years of good income. I have my own home worth 600k (45% ltv) and wealth outside of my own home worth over 500k. I do not consider it a lot to retire on tbh (even though i know i will receive decent inheritances when i am older). So i have got back into work.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,319Posts Today

7,735Users online

Martin's Twitter