Only freedom will do

Alchemilla

Its 25 x your annual costs
right Ed?

Oh I forgot-you got the lie in!

edinburgher

All sounds good, apart from Mrs. E's wages. How old is your daughter now and when is your wife returning to work?

She'll be 10 weeks tomorrow Alex and Mrs E won't be returning to work until next April/May. We knew this was coming, it's always pants to have less than you're used to though. Luckily for us we live within our means, so it just means saving less, not going without

Without meaning to sound dumb, what exactly is FI? I presume it would be a different amount for each individual and requires making £XX,XXX per year through some kind of passive investment (not a business)? Does it count money invested in a business, personal or business assets or inheritance or is it purely just money you've saved?

It is enough assets to not have to rely on paid employment. So yes, you pretty much 'get' what it is. It could include money from any source, but it would have to be money that you can access and that is definitely yours. So I wouldn't include a potential inheritance (you might not get one) or money in your business (unless you're able to withdraw that money).

Its 25 x your annual costs
right Ed?

It is for me, but it will be different for everyone depending on their age, tolerance for risk, nature of their portfolio etc. 25x my annual costs is quite a lot more than 25x my salary, so it will be a nice little milestone to pass.

edinburgher

Lovely chilled out day today. Got some groceries, reminisced about Greek holidays with Mrs E and cleaned out the aquarium filter (ashamed to say I've left this job for about 3 months!)

We also spoke about moving house after concluding that we could afford to do so now, even without selling our current home immediately. I don't think we will, but our wants seem to be converging and our expectations seem about £70k lower than last we spoke

• £7.25 to Emergency Fund
• £15.15 to savings

ourcornercottage

As a veggie I have no experience but that online butcher Donald somethingy that was mentioned a while ago is on groupon a couple of times with different offers.

AlexLK

edinburgher wrote: »

She'll be 10 weeks tomorrow Alex and Mrs E won't be returning to work until next April/May. We knew this was coming, it's always pants to have less than you're used to though. Luckily for us we live within our means, so it just means saving less, not going without

Sorry Ed, I think I'd asked this before. Can't quite believe that your daughter is nearly 3 months old, mind I'm sure you can't either! Are you and Mrs E settling into parenthood well?

You'll be fine with the finances, I'm sure but I agree regarding having less than you're used to. We've had a similar experience over the past few months with my business as I've not paid myself a salary as things have not been great. Must be the first time we've not been slipping into debt because of reduced earnings though, so we must be learning something from MSE.

edinburgher wrote: »

It is enough assets to not have to rely on paid employment. So yes, you pretty much 'get' what it is. It could include money from any source, but it would have to be money that you can access and that is definitely yours. So I wouldn't include a potential inheritance (you might not get one) or money in your business (unless you're able to withdraw that money).

It is for me, but it will be different for everyone depending on their age, tolerance for risk, nature of their portfolio etc. 25x my annual costs is quite a lot more than 25x my salary, so it will be a nice little milestone to pass.

Does paid employment include working on a self employed basis? I presume counting money you would receive from the business if you were to cease trading would count? Sorry for all the questions but I am genuinely quite interested in this, even though I doubt I'll achieve this by myself.

...Goes off to work out 25x my annual costs and to then cry myself to sleep at the eye watering amount of money it costs to live each year... :rotfl:

edinburgher wrote: »

Lovely chilled out day today. Got some groceries, reminisced about Greek holidays with Mrs E and cleaned out the aquarium filter (ashamed to say I've left this job for about 3 months!)

We also spoke about moving house after concluding that we could afford to do so now, even without selling our current home immediately. I don't think we will, but our wants seem to be converging and our expectations seem about £70k lower than last we spoke

• £7.25 to Emergency Fund
• £15.15 to savings

Sounds like a great day, especially the house moving. Even if you choose to stay were you are for a while at least you know you can choose to move if you wish.

Karmacat

edinburgher wrote: »

It is for me, but it will be different for everyone depending on their age, tolerance for risk, nature of their portfolio etc. 25x my annual costs is quite a lot more than 25x my salary, so it will be a nice little milestone to pass.

Ed, sorry, I don't understand that. You're saving from your salary, so surely thats the other way round, your costs are less than your salary?

edinburgher

Are you and Mrs E settling into parenthood well?

It feels like it Alex, but I am looking forward to DD attempting sleeping through the night

Must be the first time we've not been slipping into debt because of reduced earnings though, so we must be learning something from MSE.

Recognising that avoiding debts like this is an option is half the battle! Even standing still is a good start and I'm sure that things will pick up

Does paid employment include working on a self employed basis?

Yes, it's having enough money to not have to work in general.

I presume counting money you would receive from the business if you were to cease trading would count?

I'd count any realised capital. So money tied up in a business wouldn't count, after tax money in the bank once the business was wound up would. Financial equivalent of not counting chickens until they have hatched.

Sounds like a great day, especially the house moving.

Thanks Alex. We are oscillating between boxy houses in good areas and well built 30s houses in decidedly unfashionable areas. Have seen several houses online within £30k of the value of our current flat that look like possibles. To try and see whether we would be ok withe compromises required (smaller rooms vs. more rooms/gardens etc.) we are discussing going to view a couple next week :j

Greying_Pilgrim

Ed - have you had the opportunity to listen to R4's Food Programme today? Very much your cup of tea with regard to food matters and social endeavour. Good things going on in Edinburgh - apart from exhausting training seminars that is

Greying x

edinburgher

Interesting stuff, thanks Greying

edinburgher

Rainy NSD spent looking after DD and watching Aliens on the last day of our Skay Movies free trial. 'Treating' myself with £8.70 to Savings