SF's road to mortgage freedom!

Jo4

Well done SF. :money:

You are doing so well and only in your 20's - you have your head well screwed on!! :T

AlexLK

Hadn't realised SF was only in her 20s... definitely agree with Jo4. You're an inspiration to those of us less blessed with financial sensibilities.

Goldiegirl

slowlyfading wrote: »

GG - yes, the only person to comment on the article mentions that too - not sure what to do about that? Hopefully income via investments/interest will help to boost the amount but its definitely something to have a think about,

I was having a think about this. I think, if I was in your position, I'd try and project likely figures, based on historical inflation.


For this completely non-scientific dabble, I looked at an inflation calculator on This Is Money


We'll just assume a 30 year old, looking for the equivalent of £18000 draw down per year from age 50


For the 20 year period 1995 - 2015 the historic inflation figure is 77.75% (scary, or what!)


So in 20 years time the £18000 would be increased by 77.75% to £31995.


So, in the first year of retirement a draw down of £31995 would be required


If we assumed 4% inflation for each year, in year 2 £33275 would be needed, in year 3 £34606 would be needed and so on to age 67.


Therefore, whatever the total is after 17 years, is ballpark figure to save.


But, having said all that, a lot can change over the years, and by starting early you are doing the best possible thing. I didn't start seriously planning until my late 30's and saved the most money in the last few years before we stopped work.


As has been said in many areas of MSE it's a snowball, and it'll all mount up over the years

slowlyfading

Jo4 wrote: »

Well done SF. :money:

You are doing so well and only in your 20's - you have your head well screwed on!! :T

Creeping ever closer to 30 though but thanks!

AlexLK wrote: »

Hadn't realised SF was only in her 20s... definitely agree with Jo4. You're an inspiration to those of us less blessed with financial sensibilities.

Thanks Alex

Goldiegirl wrote: »

I was having a think about this. I think, if I was in your position, I'd try and project likely figures, based on historical inflation.


For this completely non-scientific dabble, I looked at an inflation calculator on This Is Money


We'll just assume a 30 year old, looking for the equivalent of £18000 draw down per year from age 50


For the 20 year period 1995 - 2015 the historic inflation figure is 77.75% (scary, or what!)


So in 20 years time the £18000 would be increased by 77.75% to £31995.


So, in the first year of retirement a draw down of £31995 would be required


If we assumed 4% inflation for each year, in year 2 £33275 would be needed, in year 3 £34606 would be needed and so on to age 67.


Therefore, whatever the total is after 17 years, is ballpark figure to save.


But, having said all that, a lot can change over the years, and by starting early you are doing the best possible thing. I didn't start seriously planning until my late 30's and saved the most money in the last few years before we stopped work.


As has been said in many areas of MSE it's a snowball, and it'll all mount up over the years

That's made my head hurt :eek: if we work on that assumption, then the number needed is absolutely huge in comparison :eek: it's given me lots to think about though, thanks

slowlyfading

greent wrote: »

Well done, Sf! Off to read said article now.....


xx

Thanks!

slowlyfading

Another week over, and it's been pretty good going obviously being featured in a national newspaper is pretty high on the list but having the big guy himself (Martin) send me a tweet on twitter and posting on the savings thread I run on here was a pretty good moment too there's also something else potentially else in the pipe line but I can't mention that at the moment...

It's also payday today, and it wasn't too bad in terms of reduction in pay. It reduces quite rapidly from here on in though, so need to continue to keep a tight hold on our finances. That being said, I managed to transfer just over £400 to savings and did an OP of £200 to our mortgage, which now stands at £101,000 getting closer to under 6 figures! We'll be there by the end of the year now, there's no doubt about that

Nothing much else to report; DS is still a nightmare at sleeping - he was awake from 11pm til 6am last night so very tired here. He's snoozing now but due another feed soon so no point in me trying to go to sleep just yet.

Happy Friday everyone

AlexLK

All sounds like good news apart from your son not sleeping. I hope you're getting some support. How old is son now?

Karmacat

Another one here hoping you're getting some RL support with mummying. As far as blogging goes, you're obviously a screaming success, keep at it!

Goldiegirl

slowlyfading wrote: »

That's made my head hurt :eek: if we work on that assumption, then the number needed is absolutely huge in comparison :eek: it's given me lots to think about though, thanks

I didn't go any further than year 3, as I knew the figure would be depressingly massive.


But carry on doing what you're doing - starting early is the key, and who knows where life will end up.

slowlyfading

AlexLK wrote: »

All sounds like good news apart from your son not sleeping. I hope you're getting some support. How old is son now?

He's 7 weeks old now

Karmacat wrote: »

Another one here hoping you're getting some RL support with mummying. As far as blogging goes, you're obviously a screaming success, keep at it!

DH is at work until 6:30 every night, so he helps when he gets home. It's tricky at times though. And I don't feel like a success, but working on it

Goldiegirl wrote: »

I didn't go any further than year 3, as I knew the figure would be depressingly massive.


But carry on doing what you're doing - starting early is the key, and who knows where life will end up.

I'll keep plodding along and hope