£10,000 to £1,000,000 in 6 years - Journey of a Chronic Income booster

Broken_Biscuits

im a self taught investor, so may be making mistakes. I hope not. Ive got two pots in my mind. Retirement fund.. "safe" slow and steady. There's about 50k in there so far. I top this up monthly and its made up of a fairly sensible mix of equities and bonds. Then there's the outside chance of early retirement and play fund- that has about 10k in it. Then the rest is in my house, cash and a small amount of shares in my old work.

Europe definitely has some legs, and 18 months probably is about right and yes as a fund its very unlikely to collapse rapidly like Russia might. much too early to be rebalancing 10 days after buying(!!) but yes, that's the plan- pull out any profit and put it into something a bit more stable and reliable.

most of my emerging markets is in India. They have 25% of the worlds under 25s. The next 20 years looks strong with such a young workforce.

ive got a chunk in ratesetter (peer to peer lending) where i was getting 6.5% returns, but the reinvested money is getting closer to 6% now, so slowed down on investing any new money until rates pick up.

the posibility of sitting at a desk for the next 30-40 years scares the poop out of me. So prepared to take some risks (as it seems are you) to get there a bit sooner - but also not prepared to gamble it all and lose, so have the sensible savings plan for the majority of my investments.


waiting to see if the 3k ive applied for into the new Woodford patient trust all gets accepted. That one, another gamble, is mostly about investing in start ups so much more scope for both increased profits and also obviously risk of it all going wrong.

in todays money i was looking at about 300k minimum needed before i can consider retiring or at least working less. I know you are aiming for a million, but i think i could retire on a lot less!

chronicsaver

Broken_Biscuits wrote: »

im a self taught investor, so may be making mistakes. I hope not. Ive got two pots in my mind. Retirement fund.. "safe" slow and steady. There's about 50k in there so far. I top this up monthly and its made up of a fairly sensible mix of equities and bonds. Then there's the outside chance of early retirement and play fund- that has about 10k in it. Then the rest is in my house, cash and a small amount of shares in my old work.

Europe definitely has some legs, and 18 months probably is about right and yes as a fund its very unlikely to collapse rapidly like Russia might. much too early to be rebalancing 10 days after buying(!!) but yes, that's the plan- pull out any profit and put it into something a bit more stable and reliable.

most of my emerging markets is in India. They have 25% of the worlds under 25s. The next 20 years looks strong with such a young workforce.

ive got a chunk in ratesetter (peer to peer lending) where i was getting 6.5% returns, but the reinvested money is getting closer to 6% now, so slowed down on investing any new money until rates pick up.

the posibility of sitting at a desk for the next 30-40 years scares the poop out of me. So prepared to take some risks (as it seems are you) to get there a bit sooner - but also not prepared to gamble it all and lose, so have the sensible savings plan for the majority of my investments.


waiting to see if the 3k ive applied for into the new Woodford patient trust all gets accepted. That one, another gamble, is mostly about investing in start ups so much more scope for both increased profits and also obviously risk of it all going wrong.

in todays money i was looking at about 300k minimum needed before i can consider retiring or at least working less. I know you are aiming for a million, but i think i could retire on a lot less!

Same, I don't know how people do it tbh.

i guess if you want to retire early (like me) you're going to have to take a bit of risks. Free money in the market is going to come to an end soon so best make the most of it!

What's your age range btw? PM me if you want.

Broken_Biscuits

33. Ive always been a little better at saving than most, but only really started taking proper attention to best uses for savings and early retirement in the last couple of years.

considering you are 24 now, if you keep up this sort of approach you would hope that absolute worst case scenario is you will be done with working by 50 but i know you are aiming for your 30's.

for motivation i break up the amount i need into chunks. So for example, if in aiming for a portfolio of 300k, then having 60k currently means i now at worst only have to work a 4 day week. If i get it to 120k, i could choose to have a 4 day weekend for the rest of my life.

fed up paying the council tax? Save 25 times what you pay in a year and then assuming you get better than 4% returns, the interest will pay the bills for life. You can do this with every bill and outgoing you have... Make a list and tick each one off when you get 25x times it in your portfolio. Once you have 25x all your outgoings, the rest you save is going directly to your living/enjoyment/retirement fund.

with your saving rate and age i assume you live off much less than 40k a year gross, so why 1 million? Could it be less? Could you live off 20k gross and so 500k would be a more achievable target... Especially since your best effort (although really good) is 2k a month. A long way off the £170 a day you said you could make in addition to your salaried job.

chronicsaver

Broken_Biscuits wrote: »

33. Ive always been a little better at saving than most, but only really started taking proper attention to best uses for savings and early retirement in the last couple of years.

considering you are 24 now, if you keep up this sort of approach you would hope that absolute worst case scenario is you will be done with working by 50 but i know you are aiming for your 30's.

for motivation i break up the amount i need into chunks. So for example, if in aiming for a portfolio of 300k, then having 60k currently means i now at worst only have to work a 4 day week. If i get it to 120k, i could choose to have a 4 day weekend for the rest of my life.

fed up paying the council tax? Save 25 times what you pay in a year and then assuming you get better than 4% returns, the interest will pay the bills for life. You can do this with every bill and outgoing you have... Make a list and tick each one off when you get 25x times it in your portfolio. Once you have 25x all your outgoings, the rest you save is going directly to your living/enjoyment/retirement fund.

with your saving rate and age i assume you live off much less than 40k a year gross, so why 1 million? Could it be less? Could you live off 20k gross and so 500k would be a more achievable target... Especially since your best effort (although really good) is 2k a month. A long way off the £170 a day you said you could make in addition to your salaried job.

it could be less, but to be honest, I want to retire early. I'm already sick and tired of work. There are too manyopportunities out there to be sitting in an office job doing sweet nothing. I earn £31k gross and live at home with my parents (don't pay bills etc, but give my parents money when i can) - I won't be moving out anytime soon! My expenses are next to nothing, and I have a pension pot (employers contribution) which is at £1500 atm.


And I agree I'm very well off the target of £170 a day. Technically, I could make that if I up'ped my stakes on my horse racing Strategy but quite frankly, I haven't tested it out for long enough for that. I've set myself a new target of £100k for the next 3 years - which IMO is very doable at my current rate. I'm already up £1164 for March and we're only 12 days in.

Broken_Biscuits

ha, it April. Didn't anyone buy you any Easter eggs? Lol

so about 2k a month after taxes? With no real outgoing to speak of, i think you are being a bit soft on yourself with a 50% savings rate.

you are effectively spending about a grand a month on beer and skittles! I would say with your plans and income you should be looking at a savings rate closer to 70%. £1000 a month is a lot to spend for someone who describes themselves as a chronic saver.

i think mr money mustache retired in 7 years with a 70% savings rate. Nice to be in that position at 24 though. 9 years ago i would have been on about half that salary. You are at a really good starting point, but think you could be a bit tougher on yourself to speed up the process.

chronicsaver

Broken_Biscuits wrote: »

ha, it April. Didn't anyone buy you any Easter eggs? Lol

so about 2k a month after taxes? With no real outgoing to speak of, i think you are being a bit soft on yourself with a 50% savings rate.

you are effectively spending about a grand a month on beer and skittles! I would say with your plans and income you should be looking at a savings rate closer to 70%. £1000 a month is a lot to spend for someone who describes themselves as a chronic saver.

i think mr money mustache retired in 7 years with a 70% savings rate. Nice to be in that position at 24 though. 9 years ago i would have been on about half that salary. You are at a really good starting point, but think you could be a bit tougher on yourself to speed up the process.

Haha let me explain. £75 goes into my pension pot which my employer matches up to 6% (of total salary). I took out an interest free graduate loan from my company in September which comes out of my wages so roughly £150 a month. I then pay £200 a month on a loan I took out before i started work (£2000 loan). lol totally the opposite of chronicsaving, but seeing it was free money I might as well have made the most use of it (and I have seeing as I've earnt money off of it). And the £2000 loan i took out before i started work was for a job on my teeth. My teeth were horrendous as in seriously stained so it's something I had to get done before i started work. All that said, I'm against loans etc. Net after deductions, I get paid £1745 or something like that. I always still have money left over in my account(s) but always good keeping cash about just in case of an emergency.

Bare In my I only started the Chronicsaving Journey last month so those loans don't really count haha

I don't drink either, but tend to eat out a tad! and you're right, I should be harsher on myself. You got a link to Mr Money Mustaches profile?

Oh and forgot to say, student loan repayments as well!

Broken_Biscuits

http://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/

that's the article that talks about percentages of savings linked to years until retirement.

if you havnt read his blog before, its definitely an eye opener!

chronicsaver

Hi All,

Another week, another gain.

Profit: £442.10 (A variety of sources, Saving (£250), Trading, Betfair and Cashback) That takes me up to £1606.10 for March. Haven't traded much on the market this week, hence low profits. I'll post up pictures later - I'm at work! btw that FTSE position that I was talking about last week, well I kept it - saw it as £20 profit today. It's now at -25.00 unrealised loss but with the marlarky with Greece and Elections on the horizon, I'm going to let the position run.

If there's one thing I've learnt this week, it's to be patient and have a risk reward strategy with EVERYTHING. One of the biggest reasons why people lose money with anything, is because they always risk more than their actually rewarded for. i.e whether it's gambling, buying a brand new car etc. I've learnt this the harsh way over the years, and glad I did when I was younger and had no responsibilities (I still don't). Whatever you do in your life, when you take risks make sure the reward is far greater!

Short posts, but food for thought nonetheless.

I'll try and post snapshot of profits from various sources and a trend line later - just take long that's all!

KathyBerry

Hi CronicSaver, I have only just joined but I have found your journey inspiring :j

chronicsaver

KathyBerry wrote: »

Hi CronicSaver, I have only just joined but I have found your journey inspiring :j

Thanks Kathy . This is one of the main reasons I do this - to inspire others. Still a long way to go yet but Iim happy with my start!.