Planning for Financial Independence

Albermarle

That's if you find penny pinching miserable - we are fortunate in that we both enjoy the challenge of getting a good deal and are happy to shape our lifestyle around that.

The only issue with this ( and I know from experience ) is that it becomes an ingrained habit, and when you get to a certain age and financially very comfortable , you have no idea how to spend it all and still on the lookout for bargains !

Alexland

Albermarle wrote: »

The only issue with this ( and I know from experience ) is that it becomes an ingrained habit, and when you get to a certain age and financially very comfortable , you have no idea how to spend it all and still on the lookout for bargains !

I'd probably be sitting there calculating increasingly improbably shortfall risk!

Jk920

Thanks for all the replies, I will respond to each one individually when I get a chance. At the moment I have a fixed term ISA with £56k, planning to save up to £64k by the end of the year. I wanted to start a LISA this tax year too as it will be adding to my savings for a house deposit, I'm not sure when I want to buy yet but I want to have this money locked away when I need it.

I have my pension that I started as soon as I started working which at the moment is low with £5k by the end of this year. I wanted to contribute £400 with a £100 from my employer giving me atleast £10k by the end of 2020 then continue to build this too so by the time I'm 30, I have about £30-35k.

I only recently learned about FIRE too and I'm more interested in the FI, I don't mind it takes ages, but I want to ensure to put myself on the path so I'm not stuck in difficult financial situations and want to set up a financially secure future for myself, even if I don't reach FI, I will be in a much better position than shrugging my shoulders and claiming it impossible. And no, I don't find it miserable to save, I don't find buying things I don't need makes me happier. I've become more interested in FI because of how saving a large pot of money makes me feel more stable and secure with my future.

enthusiasticsaver

I think having an aim of FI at your age is great. We bought our first house soon after getting married in our early twenties. Interest rates were high but we were renovating it initially then we had two small children so the only thing we did do was pensions. I just paid the basic amount and I was a SAHM for 3 years but my husband did a booster scheme so 8% initially with his employer matching it but it was increased several times over his career. We did not overpay our mortgages or do S and S ISAs until childcare costs were lower.

I am with you on the not accruing things and I like the security of having savings but we do like holidays, we have two cars and hobbies which cost money. We also gift our children and grandchildren a lot or pay out for holidays, meals out for them. We are now comfortable though so can afford it.

We always did a mix of short term savings for things like xmas and holidays, medium term for large house projects like new kitchen, bathrooms, windows etc and car replacements and long term for retirement either by overpaying the mortgage, pension avcs or sipps or stocks and shares isas.

The best way to secure financial independence is don't get sucked into the constant trading up of property some people get into, expensive cars and don't take on debt. That keeps your outgoings low which is essential for FI. Researching before you buy as well as thinking whether you really need the thing you are buying helps too. We are fairly disciplined with buying stuff and I keep to a rough budget which was more stringent when money is tighter. Now I figure we can loosen the purse strings a little but we still watch what we spend and don't throw money away. I never used to buy lunch out for work days unless meeting a friend as a treat and same goes for coffee. I only tend to buy clothes twice a year and I avoid food wastage as far as possible.

bostonerimus

I think the OP is off to a very good start. Just keep doing what you are doing and in 20,30 or 40 years you will be all set.