Saving to retire early.

DiggerUK

andys15, It's a balanced reason, not one I would have considered.

You need to do a number of income and expenditure balance sheets. From here to 50, from 50 to 57, from 57 to 67 and from 67 to eternity.
For now I would go with max PB's, any spare should be laid down for the future as you feel comfortable with. Best of fortune..._

andys15

Thanks Digger. Yes once I get the mortgage out of the way then I will get the PB, which I have never have before. 

I will then see what happens. 

The biggest risk is retiring early and giving up the incomes. That is what I still need to get my head around. It’s quite scary. 

DiggerUK

andys15 said:.....The biggest risk is retiring early and giving up the incomes. That is what I still need to get my head around. It’s quite scary. 

When the sums add up to show you can retire....retire. Trust me, it's luvvly jubbley..._

andys15

What do you reckon would be needed to retire comfortably? On a monthly basis. 

I know that is a how long is a piece of string question but have a go. 

We would be retiring to Spain, but also taking lots of holidays. I am working on £5k a month but my wife doesn’t think that would be enough. 

Friends I know who have retired say they don’t need half as much as they thought. 

Prism

andys15 said:

What do you reckon would be needed to retire comfortably? On a monthly basis. 

I know that is a how long is a piece of string question but have a go. 

We would be retiring to Spain, but also taking lots of holidays. I am working on £5k a month but my wife doesn’t think that would be enough. 

Friends I know who have retired say they don’t need half as much as they thought. 

That length of string can vary a lot. Depends if you a single or a couple. Depends on if the mortgage is paid off. Depends on the age of any children. Many people could retire comfortably on half of what you suggest - others will want double or more.

We are aiming for something in the region of  £8-10k per month.

Audaxer

andys15 said:

What do you reckon would be needed to retire comfortably? On a monthly basis. 

I know that is a how long is a piece of string question but have a go. 

We would be retiring to Spain, but also taking lots of holidays. I am working on £5k a month but my wife doesn’t think that would be enough. 

Friends I know who have retired say they don’t need half as much as they thought. 

£5k a month would be more than enough for most of us for a very comfortable retirement with lots of holidays.

How much you do spend on average each month now, not including your mortgage payments? 

andys15

It’s really difficult as we have separate finances. She is not onboard with what I do. 

When I get paid I put £1000 into my spending account and I am happy if I have a few quid left at the end of the month. 

She gives me £2100 on payday, and she buys all the groceries. I have no idea about what she spends. If she wants it she buys it. Although she is getting better. ( I am talking clothes and shoes). 

We don’t save anything. I have about £1300 in another account which is what’s has been left over from the £1000 I have each month. 

About 6 months ago I decided one day I wanted a new driveway. We hadn’t saved for it, so I didn’t overpay the mortgage for a month and the month after I didn’t overpay the full amount I usually do. 

I am far more sensible with money than she is, but I also like being in the position that if I want something, I get it and currently with such high incomes there is no consequences. 

That is the worry with having no income and still wanting to live the life of getting what I want. 

Although if we can have £5000 a month from savings, I know we will have months where we won’t spend much and that can be put into months where we have gone over the top. 

eskbanker

That's all ringing some pretty loud alarm bells!  If between you you're earning £240K but don't really know where it's going and aren't on the same page, then switching off those income streams early in the hope that you'll have enough to fall back on seems rash, so the obvious thing to do is to model income and expenditure (current and projected) in significantly more detail before making any potentially irreversible decisions you'd regret over a long time.

Is your signature correct that you've only been out of debt since earlier this year?

lawisadrift

Andy15 can I ask what do u do work wise?

andys15

eskbanker said:

That's all ringing some pretty loud alarm bells!  If between you you're earning £240K but don't really know where it's going and aren't on the same page, then switching off those income streams early in the hope that you'll have enough to fall back on seems rash, so the obvious thing to do is to model income and expenditure (current and projected) in significantly more detail before making any potentially irreversible decisions you'd regret over a long time.

Is your signature correct that you've only been out of debt since earlier this year?

Yes. I had a car on pcp. I have done pcp for my last 3 cars but this time I decided to own the car, so I paid of the PCP in March. 

I do know where my money is going. I overpay my mortgage by nearly £6k a month. If I didn’t do that then I would have a lot of savings. 

I know exactly where all mine goes, and my wife gives my £2100 a month. So the majority of the money we get combined I know where it is going.