Dude retired at 33.

colsten

Seems people are ignoring inflation in their calculations. If they live from the income their money generates, the capital has zero growth and will be eroded by inflation. In addition, before long it will not be possible to live from the income only, as that income becomes worth less and less over time.

Ryan_Futuristics

You need better than 4% returns really - although we may be in a very low inflation environment for a while

The Yale endowment fund (which I'm not going to stop mentioning) allocates 5-6% of its capital annually on university expenses, and reinvests any spare

Still growing faster than TheTracker's resemblance to Arnold Rimmer

C-dog

I'm a big fan of Mr Money Mustache and co. I'm squirrelling away every penny I can, but it's all to give me the freedom of choice. Choice to not work for money, choice to do something I love. I might become a ski instructor, learn languages abroad, I might start an allotment. I might even continue to work on a part time basis....or start a blog.

Of course I can do all this now if I wanted, but it will always come back to money and how to manage it. Being financially independent removes one more thing to think about. Same reason I nailed the mortgage as early as possible.

Like Ryan Futuristics, I see £500-£600k invested as the point you no longer need to work for a living. But I have other interests, a business and a couple of properties....and a family to consider. My final figure will be a lot higher than this, especially as a proportion of this figure is tucked away in my sipp for the next 25 years.

I've actively reduced costs, but as my mindset has changed, it feels great. Do I really want a 4k tv? Hell no. 2 years ago it would have been a different story. Now I value everything on the opportunity cost. If I have this, how much longer do I have to work?

The one thing I'm very conscious about is that its very easy to say these things from a comfortable perspective. I have a nice german coupe, a fancy watch and the trappings of "success" but of late, these things don't define me. What if I hadn't bought these things. Would I still covet them?

My own personal goal is to achieve a certain figure invested in the shortest time possible and to find out what I want to replace work with.

bugbyte_2

It is interesting reading this thread and others that for some the end game is to retire early, and there is a lot of truth that in this goal spending less and being less materialistic can make you happier. However there is a danger that obsessively living for the future is its own kind of materialism, missing out on the joys of the present. The other massive issue for me is that retirement and the subsequent inactivity can lead to mental health problems - there is little focus for life. People actually need a work structure and to be useful to be happy. I cannot think of anything worse than retiring at 33. That bloke has his whole life ahead of him to do something worthwhile - yes, looking after his family may take him up to his early 50's but what then?
For me happiness is in the following order: Loving and spending time with family, doing a job that is worth while, having enough savings to cover life disasters and making a difference to those around me.

C-dog

Good post bugbyte. One that resonates with me for sure

"However there is a danger that obsessively living for the future is its own kind of materialism, missing out on the joys of the present."

What people are missing out on? I ask this personally as I believe I lead a fulfilling life and always have.

I do fear the What Now when FI is achieved, but I have many years to plan for that.

Ryan_Futuristics

Well you can always tell when you've been stuck in a 9-5 too long - the idea of not working is bliss ... Getting up at midday; wearing sweatpants; watching NetFlix

But it shows how your desires are usually just a reflection your current situation ... When you arrive at the point where you don't have to work, you find yourself with an even larger gaping hole to fill ... People wonder why actors who earn >£10m a film keep working into their 80s

In a lot of ways it's like having investing goals ... I know people who think saving £20k would be life-changing; but you get there and it seems like only just enough (for a safety net) ... They say people with over £10m in assets actually tend to be more anxious about the future than regular earners, and their main worry is still money

bugbyte_2

Its more an obsessive mind set that I have suffered from in the past. You can become very money minded without spending a penny. My obsession was (is) I had to check my fund prices every day. I'm now at once a week and hope to move to once a month. If I didn't think so much about it I wouldn't worry about it. I also obsess about how much I save, which is quite high - about 10 - 15% of my income and have another 14% go into a pension pot. If I reduce my savings one month I feel I have let myself down. I do not particularly want to be like this so I am striving to be money clever but also money stress free.

kingrulzuk

bugbyte wrote: »

Its more an obsessive mind set that I have suffered from in the past. You can become very money minded without spending a penny. My obsession was (is) I had to check my fund prices every day. I'm now at once a week and hope to move to once a month. If I didn't think so much about it I wouldn't worry about it. I also obsess about how much I save, which is quite high - about 10 - 15% of my income and have another 14% go into a pension pot. If I reduce my savings one month I feel I have let myself down. I do not particularly want to be like this so I am striving to be money clever but also money stress free.

Im the same sir i try my best to save more then 60 to 70% of my income every month.

C-dog

Ok yep, I 100% understand bugbyte. I am pretty much the same, checking share prices each day. I think its best I check only when I can make a purchase - £3k+ cash.

I'm very fortunate that I don't have to track every expense, but I do maintain a small budget based on an amount I put in my wallet each week.

Ryan that sounds like hell. Well 1 day a week on netflix maybe...

I see my average day in FI as such

8.30 - Cycle to School with Tarquin or Talulah (we don't know if its boy or girl yet)
9.00 - Gym
10.30 - 1pm - Hobby or Work
1-2 Lunch with wife
2-3 Reading
3pm School run, park and home work
6pm dinner
7pm - bedtime stories
9pm-9.03pm - Sexytime.
Sleep

Change 9-3 accordingly if we decide to go surfing, go into town, or another activity.

What about the summer months? Well how about 2 months travel or moving to France a la every teacher I've ever known. The world is our oyster

bugbyte_2

Ah... you're a teacher! Same here. Can't see me running after / away from my special needs kids past 55 but cant see me retiring either. I have the money to, but would like a second career based on a hobby.