FIREside Chats

edinburgher

No kill eggs do exist. Anyone in Berlin? I'll add it to my FIRE list

Karmacat

Thanks Ed!  Great article.

gallygirl

SuperSecretSquirrel said:

@QueenJess, the way I see it simply heading in the right direction can't really do any harm, and will more than likely do a lot of good It results in options being made available, and that's something I really appreciate! Waiting until I had a solid full life plan pinned down would be a surefire way for me to never get started

Me too @South_coast I definitely don't see it as an all or nothing thing - there are definitely options made available along the way, not just at the "finish line" (a finish line that I'm sure is quite often mobile and invisible!). A wise man once said "life is what happens when you're busy making other plans". I agree. I just want a secure future and to enjoy the ride

You're so right about options. Choice to work or not work, choice to reduce hours in current job or look for a less stressful full-time or part-time job. I follow a diary on MMM where the writer is trying to FART (Financial Achievement, Reduce Time) , rather than plough on full time till he reaches FIRE. Having FU money is also important, enabling you to walk away from toxic situations, be it work or relationships. Rightly or wrongly, money equals power.

Busy_Mee

I couldn't agree more Gally. One of the reasons I started planning for an early retirement was triggered when working for an obnoxious boss. I wanted the option to be able to walk away if I was ever in that situation again. The last couple of years since we have a good financial position have been very liberating. I have been able to opt out of some of the jazz hands, anything but authentic leadership malarkey and be true to myself.

I think the options point is the key, financial independence does give you lots option. I also think the main thing is making conscious decisions about how you spend and save. It doesn't need to be penury and knitted sandals. 

We ground down cost in areas that didn't impact us too much, and shopped around and undertook lots of low effort shenanigans to get free money (bank switch's etc), but we carried on with holidays and travelling. 

Neither of us wanted to wait until we were retired to see the world, and I am so glad we did that given the current situation.

Cheery_Daff

Options is definitely the thing, and for us, living frugally in general has given us that - Mr Cheery was able to leave main job at 47 with only £17k in the bank, and me mid-PhD with minimal income, because we didn't spend much. We spend more now (having moved house), but I'm still planning to drop to 4 days soon, and working towards ditching work altogether by the time I'm 50 (in 9 years). 

Yes, this has all got much easier since I got a well paid job! But I didn't have one when Mr Cheery left work - we'd both just had pretty low incomes for mot of our lives and were confident we could manage, which we have.

This confidence (misplaced or not!) also let me take a chance on a new job when my old one became unbearable, and is now letting me drop a day a week.

So right about us all being different though- obviously I could speed things up by staying full time but I want my Fridays back NOW (well, September 😂) not in a few years!

Suffolk_lass

gallygirl said:

The best time to start a pension (or any savings) was yesterday. The second best time is today. 

Start by looking at your spending - from large items (have you got the best mortgage rate?) to medium - power, insurance etc, to low - would it kill you to grate your own cheese for instance? Minimise your spending and that will put you in a good position going forward.

As for a road map - see it as a Magical Mystery Tour - you know where you want to end up but not necessarily when you want to arrive or what route to take! Hopefully other people's plans may spark some ideas of your own.

Great post @gallygirl - and your cheese comment I realise is not personal to anyone - just an example of how we could all consider how we broaden the spectrum of things we do differently.

I take comfort on the food front that I know where most of mine comes from. We eat lots of homegrown veg and preserve and store lots of our surplus. I am determined to grow fewer beans this year but that is a whole other thread... our eggs come from a local chap who keeps them in woods near me and lets them live on after they stop laying until suddenly he realises there are not enough layers, and then they go to the food chain after happy little lives. We buy lamb from him too but also use a local butcher for a limited amount of meat with high welfare standards. 

Re money to live on when you stop work - we need less than I planned for and enjoy a good standard of living but have pared back on the consumerism. I have more time to take greater care and we do more ourselves. Basically I suppose we are a nightmare for the economy, except for the premium bonds I keep buying with our non-working, not yet SPA retirement savings 😲

Tartan_Mum

I have a confession to make 😳 

Sometimes I do buy grated cheese especially mozzarella for home made pizzas. 

Do I need to turn in my MFW wings? 😱

Karmacat

Tartan_Mum said:

I have a confession to make 😳 

Sometimes I do buy grated cheese especially mozzarella for home made pizzas. 

Do I need to turn in my MFW wings? 😱

No you don't    the comments about choosing your own options are real  

edinburgher

One of my favourite rules of thumb in personal finance is the rule of 72 (i.e. divide 72 by your expected rate of return and that's how long it will take your money to double).

I decided to combine the rule of 72 with my love of takeaway breakfasts from the lovely eateries that have sprung up everywhere in Glasgow (the joy of living near a major city). I spent £15.50 on breakfast for Mrs E and I. As it's (hopefully) 20 years 'til I retire, I have decided to gift future me (another personal finance concept that makes me smile) a tasty breakfast in 20 years time. I'm happy that I'll achieve 3.6% net over 20 years, so £15.50 / 2 / 1.25 (pension tax relief) = £6.20 paid into the SIPP.

I didn't start this thread because I'm not a personal finance nerd

jennystarpepper

I'm another one who started my 3 - 6 months emergency fund challenge because of a toxic work place environment.  I promised myself I would never let Mr Pepper or I be in the position of having to put up with things because of having bills to pay.

The amount of relief I have knowing we can say, FU as @gallygirl has said, is amazing.  

We hope not to need this money and to keep it growing as an emergency fund / funding us until we draw pension and SP.  It's just nice to have options which we've not had before.