Keep calm and carry on....

South_coast

Morning all, 

Prompted by my response to mortgagefreegonnabe and re-reading kaycastle's diary, there has been much thinking going on over here over the last few hours about the question of earnings and timescales (much of it while I was trying to sleep - whoops 😂)

I thought it might be useful to know the overall figure I'm looking at, rather than the cost of each stage, so that I can see my progress more easily. Adding up the remaining credit card balance, remaining mortgage, refurb costs and the amount I'd like in savings to allow me to not have to work between the age of 60 and receiving the state pension at 68, then deducting what's currently in the S&S ISA, I get the total "money needed" sum of....£122,266.35 😱 Gotta love an exact figure though! 

This feels simultaneously terrifying and achievable - two words I've never put in the same sentence before 😂! 

In terms of timescales, there are a whole load of factors that I can anticipate will affect how quickly I can reach that figure, many of them outside of my control:

* Salary

* Pension contributions (versus net income)

* Interest rates

* Stock market performance (ostensibly for the ISA, but also influences lots of other things)

* Inflation (I might need more in savings)

* Increases in the state pension age (I might need more in savings)

So instead, I need to focus on the things that I can control, as every step I take (every move I make 😂) is going to impact that timescale. I won't bore you by reporting how much difference each Prolific payment etc makes to the total money needed, but I'm going to keep a track offline of the position at the beginning of every month - I already tally up my mortgage v savings position, so just need to add a few more columns. 

I feel quite excited! And tired 😂!

newgirly

themadvix said:

Okay, now you’re sounding like New Girly with her complicated plans and changes of mind! 😂

Cheeky! 😆

South_coast

newgirly said:

themadvix said:

Okay, now you’re sounding like New Girly with her complicated plans and changes of mind! 😂

Cheeky! 😆

We were all thinking it....😂 But that's why we love you! 

themadvix

What SC said! 😉

SC that sounds like a very organised plan and very FI! I love that you have a total to aim for - it must be really satisfying!

South_coast

Thanks Vix 😀 It weirdly makes me feel much more in control. If I want to shorten the timescale, then I need to earn more/save more/invest more. If I feel more relaxed about the timescale then I can lengthen it and earn/save/invest less, as long as I'm aiming for that same number (which should always be decreasing). I've drawn up my chart and already looking forward to updating it on the 1st of the month 😀😀😀

South_coast

I got the very last place on a Prolific survey - that NEVER happens 😀! And even better, it was the first of a three-parter, whoop whoop 😀! 

Thick_n_Thin

Looking forward to hearing more about your plans for funding retirement, it’s quite terrifying calculating the funds needed to bridge the gap before SP, and learning about investing is a whole new language😆

South_coast

Thanks TnT, not sure there really is a plan though - just try not to spend any money 😂!

shangaijimmy

I just love a 'plan', and especially a new plan! In the same way as I looked on the mortgage as a challenge to bring forward the finish line, I look at retirement planning in the same way. I'll use Mrs SJ as an example as I was working on her plan at the weekend. She can access her DB work pension at 60 and although she pays some AVC's it doesn't help for early retirement as she can't access the money. So we've recently started a SIPP for her and initially pay in £100 a month (£125 when she gets the tax back) and know that this should bring forward her retirement date to aged 58 (I'm working on the assumption that pension rules will change and she'll only get access at 58). Once this 'plan' is embedded I'll start looking at how we can nudge forward her finish to potentially 57 with use of ISA allowances...and so on.

Thats how I approach it anyway... The main challenge is to earn more though and I don't seem to be solving this conundrum...

Jessy103

Good plan SC and i wish you all the best in achieving it! X