Early-retirement wannabe

kidmugsy

spock007 wrote: »

how do you all manage it?

I got started with owner-occupied housing by getting a second job with no pay but with free accommodation. I saved the rent I didn't pay. Transport was cheap (motorbike bought second hand). I'll admit that I got an inheritance: in my early thirties I received £50. A final salary pension helped (you would do well to develop an ear for people spouting opinionated, ignorant rubbish about pensions). Other than that I knew nothing about finance, investments and so on until I was into my forties. At least I had the sense not to be a spendthrift. For example, total number of cars bought brand new = 1. Present car's age = 19. Daily mode of transport for years = bike.

AlwaysLearnin

spock007 wrote: »

how on Earth do you all do it???

Echoing kidmugsy, research and spending wisely

littlelad

Don't worry. In order of importance (in my personal opinion) firstly you're only 30, secondly you're obviously interested in your pension, thirdly you are a 40% tax payer. The only way is up!

BeatTheSystem

spock007 wrote: »

I need to read through this thread but... JESUS< how do you all manage it? Are you all rich? Did you start businesses?
I stay at home, £44k savings, pension's worth about £15k, I'm 30, Salary ~£50k with bonus. Don't think I'll stay at home much longer. With housing costing a FORTUNE and the requirement to save for a pension too, how on Earth do you all do it???

Age 30 I was employed earning under 50K, with less savings than you.
Age 31 I started a business
.
.
.
Age 45 Sold Business

From age 31 to 45 lived very frugally, one of the 'benefits' of running a business is that you don't have time to spend much.

The profits were very good in the last 8 years or so, so plowed all profits into a pension fund which was massively tax efficient for both the company and individual. Should have 2M in pension fund by the time I am 55.

The fact that you are now aware of the issue/challenge is half the battle. I don't know your individual circumstance but if you are able to put lots away in a pension over the next 10 years or so I very much doubt you will regret it.

Good luck

spock007

Thanks guys.

Don't think I'll ever start a business. People always say they've started a business but in what? Can you give a brief hint? Well done, by the way!

I think I will plod along in my engineering job - don't know if I'll ever make a move to management - and hope that my pension payments will suffice. Including employer contribution I'm putting away 12% or so a year - not very much, I know... but housing costs a fortune and that's a big worry for me.


kidmugsy - you meant to say £50k for your inheritance, not £50 right?


I've lived fairly frugally for a while. Took a big gamble on shares and lost a shed-load a few years back... never again. Try to play it safe now.

Always looking out for good opportunities... in general! Unfortunately they say you'll never be rich as an engineer! Strange... as the people I work with are so smart, you'd think they'd be able to make more money! I thought about getting a business degree at one point but I've got so much on my plate right now, and don't know if it'd be worth it!

spock007

Goldiegirl wrote: »

I can't take it with me when I die, and have no children to leave it to, so I'm going to spend my money during my active retirement. When you slow down, you don't get out and about, and you need much less money.

Sorry if this is too personal, but was it a choice not to have kids? I have none at age 30 and don't think I ever will (tired enough as it is and I enjoy having money and free time!).

I agree with being frugal to an extent, but I still want to do fun things while I'm young and have SOME energy (e.g. nice holiday once a year).

kidmugsy

spock007 wrote: »

kidmugsy - you meant to say £50k for your inheritance, not £50 right?

Nope: £50. To be fair I also inherited one rifle, lots of ammunition, a rather fine sweater, and several pairs of woollen stockings of the sort you'd use for golf, or shooting, or hill-walking. Later I sold the rifle and ammo, so I suppose you could add the proceeds onto my inheritance, but they were modest enough that I can't remember what they were.

guitarman001

I seriously doubt I will be receiving any sort of inheritance, so it's all down to me. Unlike some friends who I know will be 'hitting the jackpot'

gadgetmind

Anyone who builds inheritance into their plans risks both a nasty surprise and also not living their life to the full by having to haul themselves up by their bootstraps.

JasonPr

spock007 wrote: »

I think I will plod along in my engineering job - don't know if I'll ever make a move to management - and hope that my pension payments will suffice. Including employer contribution I'm putting away 12% or so a year - not very much, I know... but housing costs a fortune and that's a big worry for me.

You can definitely save enough to retire early with your engineering job paying £50k. I don't know why you think you have to start a business.

What are you spending your £50k/year on at the moment? How much do you save and what expenses do you have?

Congrats btw for saving £44k. While you'll have to save a lot more for early retirement or financial independence, you should also be aware that £44k in savings is more than the many people have, as is your £50k job.