Anyone else feel down about how long it takes to see meaningful difference to savings?

jamesd

Ibrahim5 said:

The truth is that FIRE only works really well for high salaries. Most people spend more as they earn more. If you can live a more average lifestyle you can save a lot and retire really early. Without the large income to save a lot you really have to have a poverty lifestyle which can sound really sad. Unless you can boost your income you have to accept that saving massive amounts quickly won't be possible. Live for today and if you have some left over to save that is great. You won't regret it later.

FIRE can work well at almost any salary level. Lower earners can have the benefit of being used to low spending and because of that needing to accumulate less capital before they can retire. I ended up saving more than 60% of my income and retiring after about 11 years with a lot more money than I really need. I wasn't skimping on my spending during those years. Now for maybe 20-40 years I can forget about working and within reason do whatever I like, with a higher income than the level I was spending at while working.

It's true that most people increase spending as their income increases but that isn't necessary and if you don't it can make a big difference.

It's not sad that someone doesn't spend much as long as they are enjoying their spending level. Fancy homes, fancy cars, expensive brands and expensive eating and drinking out aren't required to have a happy life. It's a case of individual choice and preference.

jamesd

ForestBluebells said:

How does everyone else keep motivated? I know it’s a long journey anyway but kind of lost my enthusiasm. 

I used a spreadsheet and graph that I updated monthly from the start until I retired at 55 about 11 years after starting. I was able to invest more than 60% of my income without skimping at all because I cam from a background of low incomes and lots of unpaid voluntary work.

ForestBluebells

jamesd said:

ForestBluebells said:

How does everyone else keep motivated? I know it’s a long journey anyway but kind of lost my enthusiasm. 

I used a spreadsheet and graph that I updated monthly from the start until I retired at 55 about 11 years after starting. I was able to invest more than 60% of my income without skimping at all because I cam from a background of low incomes and lots of unpaid voluntary work.

Thank you. I think I’ll try updating my spreadsheet to be clearer and maybe include a graph. I don’t give myself a large spending budget but I wouldn’t away that made me unhappy. I’m not interested in fashion or brand names or eating out often anyway. I’d rather go on an adventure with my dogs. 

Ibrahim5

If someone is on a low income and trying to save most of it they end up with a pretty poverty existence. No food,  holidays, car, heating etc You do read it in the FIRE world. I guess it's only relative poverty. OK if you want to live like that. With a high income you can just live an average lifestyle just forgoing luxuries and retire early.

MaxiRobriguez

FIRE is certainly easier for those earning more, but it can be useful for lower income earners too. Perhaps it might not help with early retirement but what it can do is help focus on cutting out needless cost, which for lower earners is essential.

And just generally the world would be a better place if more people shunned mindless consumerism.

MX5huggy

One thing that keeps me happy is the Spreadsheet showing showing pension contributions but it also shows how much take home pay I have forgone so £10k of contributions cost me £5900 of take home pay (20% tax 12% NI & 9% student loan on Salary Sacrifice). The pension is worth £13k so I’ve more than doubled my money in 18 months. I know I might have to pay tax on the way out but that’s decades away. 

ForestBluebells

I wouldn’t say I had a low income, it’s above average just not at the extreme end of the spectrum usually seen by men. 

Ibrahim5

Maybe your boys could be high earners? Dog tricks on YouTube for example.

bostonerimus

jamesd said:

Ibrahim5 said:

The truth is that FIRE only works really well for high salaries. Most people spend more as they earn more. If you can live a more average lifestyle you can save a lot and retire really early. Without the large income to save a lot you really have to have a poverty lifestyle which can sound really sad. Unless you can boost your income you have to accept that saving massive amounts quickly won't be possible. Live for today and if you have some left over to save that is great. You won't regret it later.

FIRE can work well at almost any salary level. Lower earners can have the benefit of being used to low spending and because of that needing to accumulate less capital before they can retire. I ended up saving more than 60% of my income and retiring after about 11 years with a lot more money than I really need. I wasn't skimping on my spending during those years. Now for maybe 20-40 years I can forget about working and within reason do whatever I like, with a higher income than the level I was spending at while working.

It's true that most people increase spending as their income increases but that isn't necessary and if you don't it can make a big difference.

It's not sad that someone doesn't spend much as long as they are enjoying their spending level. Fancy homes, fancy cars, expensive brands and expensive eating and drinking out aren't required to have a happy life. It's a case of individual choice and preference.

FIRE is easiest if you are frugal and you earn a lot...and you don't have children. If you have a low, or maybe middle, income it becomes increasingly difficult as you don't have the spare income to put into tax advantaged pension and ISA accounts. I also saved very aggressively and have always lived frugally and retired when I was 53. After a decade of retirement I now have more money than I could ever sensibly spend, but I'm an outlier and most people will find retirement saving and income generation far more difficult. 

daz378

I too started at 35     starting as a council carer    20.5 years ago...but  lgps pension  from the start  putting from the beginning   80 pound a month i vaguely remember...to now putting 150 at least a month...not a clue the size of my pot now    for the first 10 years was in debt   ...paid off...now im trying to save a lump sum  with a modest lifestyle ..to have a chance of retiring at 60...but more realistically  62...good luck