The road to financial independence.

atush

Student_of_£ wrote: »

I envisage I'll be renting for a few years before I get on the property ladder. I imagine I could buy really cheap houses, improve them and sell or rent them out!?

If your house provides the majority of your net worth, what do you plan on doing when you retire? Downsize?

Yes, I'll hardly be needing 5 bedrooms and 4 bathrooms and 2 acres then. but I will mainly rely in pensions and investments as I wont count those chickens until they hatch as it were.

For instance, I was told the house was worth well over a million a few years back, but have reduced the worth to 800K in my mind for now. plus I will soend at least 50K on improvements/redecoration in t he next few years as it is getting to be a while since I built it.

ozzage

If you're serious you can gain financial independence far sooner than you plan, but it would take serious saving rates and a frugal lifestyle.

You sounds like you've got the right idea, you just need to avoid getting caught up in the consumerism of our modern world

Some blogs you might be interested in, if you're not already reading them:
http://monevator.com/
http://www.mrmoneymustache.com/
http://earlyretirementextreme.com/

In particular these two posts:
http://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/
http://the-military-guide.com/2011/01/03/how-many-years-does-it-take-to-become-financially-independent-2/

BLB53

In your opinion, what would be the best way to finance retirement? Especially as it is obvious that one has to look to oneself in order to finance retirement.

Couple of good sites which may be of interest

http://www.retirementinvestingtoday.com/ and

www.monevator.com

Oh, btw, remember to have a good time whilst you are still young - money is not everything!

Student_of_£

ozzage wrote: »

If you're serious you can gain financial independence far sooner than you plan, but it would take serious saving rates and a frugal lifestyle.

You sounds like you've got the right idea, you just need to avoid getting caught up in the consumerism of our modern world

Some blogs you might be interested in, if you're not already reading them:
http://monevator.com/
http://www.mrmoneymustache.com/
http://earlyretirementextreme.com/

In particular these two posts:
http://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/
http://the-military-guide.com/2011/01/03/how-many-years-does-it-take-to-become-financially-independent-2/

This is what I'm on about when I'm talking financial independence, however I have given myself a longer timeframe to account for house/marriage/kids. As I've said I want to be financially independent at 60. I also agree that money isn't everything, my dad is always on about how his dad is a millionaire (on paper) and how he knows lots of rich people bla bla bla... I do want to enjoy my life, have a good career but above all get to a point where I have worked for nearly 4 decades and have nothing to show for it!

guitarman001

srcandas wrote: »

For the first ten years focus on gaining qualifications, good notable experience, increasing your skill set, improving your CV, your people's skills, your adaptability (vital as the world accelerates change).

Yes do all the other things but investing in yourself is vital and should be given the highest priority. Your ability to earn large salaries plus perks for 30 years or more of your working life outweighs anything you will gain at an early stage by saving and/or investing in the traditional sense.

For example (just one of many) becoming fluent in a language you part learnt at school might mean some long holidays overseas, spending a month between jobs at immersion sessions in another country, buying expensive CD sets to listen to in the car on the way to and from work. But the returns career-wise might be again beyond the money and potential gains you spent. And learning a language is a good additive to your CV.

And in my case I even had a spanish wife thrown in

Enjoy whatever

Excellent post!!Exactly my thinking.

guitarman001

Stubod wrote: »

Be carefull!!!!....I don't want to put a dampener on your plans, which I think are basically sound.....but you may spend a lifetime saving and not "having some fun"...only to get to 60 (or earlier), and find you have health problems, or that you have become so used to saving that you can't bring yourself to spend anything...and its too late....!

Its important to get the balance right.

So so so so true.

caveman's post also true.

kidmugsy - forget it. Marry for love and happiness, not for position or wealth.

guitarman001

killerpeaty wrote: »

My long term (domestic) ambition to set up a low imput/passive income of £1k a month for my retirement.

Good luck with that! How!?

I focused (still am) on furthering my knowledge of my own career (engineering) whilst reading all the time about business, and learning another language. Maybe I should have gone into finance or looked at a business or second job, but I can't bring myself to it. I like to enjoy life outside of work and my extra-curricular reading takes up enough time as it is!

kidmugsy

caveman38 wrote: »

Is that the post of a bitter "fleeced" man?

No, it's a quote from a man who found an angel for a wife. But some of my friends.... !

kidmugsy

guitarman001 wrote: »

kidmugsy - forget it. Marry for love and happiness, not for position or wealth.

I did marry for l & h. Lucky me.

Student_of_£

Right! so here's what I plan to do:
- get my degree and continue to invest in myself - increasing my skills and employability.
- save an emergency fund of 6 months living expenses in a cash ISA.
- when this is done, split my savings between S&S ISA and pension.
- retire when I'm 60
Does this seem like a good plan?