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

ForestBluebells

Compound interest calculator set to 5% and putting in my savings at a reasonable level not what I’m currently adding which is higher as I’m doing a lot of additional unsustainable work says I’ll have over £1m by the time I’m 60 in pensions and my ISA….seems unlikely but reassuring. It also shows how boring those first few years are on the graph! 

jim8888

Some great advice here. From my experience, keeping a spreadsheet updated on progress on a monthly basis is essential. Apart from anything else, it gives you a feeling that you're somewhat in control. In terms of motivation, I found a lot of the FIRE websites, books and podcasts really helpful - Mr Money Moustache, Early Retirement Extreme, J L Collins, Mad Fientist etc.. The best UK site on finance, apart from these boards, is Monevator. Although I'm not a massive advocate of FIRE, I seldom leave these resources without having picked up a good tip or two. It's also important not to deprive yourself financially and to remember that Retiring Early isn't as good as Retiring Comfortably, however you define that   

Workerdrone

By way of an example, I had a work pension scheme which I stopped paying into when I left in 2003. Between 1994 and 2003 I paid in £29.6k

For some odd reason when I go back it shows contributions of £29.6k but the yearly tallies seem to start lower. No matter. This shows how this particular pot has grown left to its own devices. Hope this helps

2021 £146,938

2020 £118,417

2019 £96480

2018 £86,101

2017 £73,859

2016 £62,664

2015 £52,834

2014 £49,858

2013 £48,384

2012 £43,994

2011 £35,393

2010 £32,850

2009 £27,437

2008 £26,121

2007 £26,712

2006 £24,516

2005 £23,553

2004 £21,289

2003 £20,007

noclaf

Workerdrone said:

By way of an example, I had a work pension scheme which I stopped paying into when I left in 2003. Between 1994 and 2003 I paid in £29.6k

For some odd reason when I go back it shows contributions of £29.6k but the yearly tallies seem to start lower. No matter. This shows how this particular pot has grown left to its own devices. Hope this helps

2021 £146,938

2020 £118,417

2019 £96480

2018 £86,101

2017 £73,859

2016 £62,664

2015 £52,834

2014 £49,858

2013 £48,384

2012 £43,994

2011 £35,393

2010 £32,850

2009 £27,437

2008 £26,121

2007 £26,712

2006 £24,516

2005 £23,553

2004 £21,289

2003 £20,007

The magic of compounding! Out of curiosity how was it invested e.g: 100% Equities, Lifestyling fund etc

ForestBluebells

Workerdrone said:

By way of an example, I had a work pension scheme which I stopped paying into when I left in 2003. Between 1994 and 2003 I paid in £29.6k

For some odd reason when I go back it shows contributions of £29.6k but the yearly tallies seem to start lower. No matter. This shows how this particular pot has grown left to its own devices. Hope this helps

2021 £146,938

2020 £118,417

2019 £96480

2018 £86,101

2017 £73,859

2016 £62,664

2015 £52,834

2014 £49,858

2013 £48,384

2012 £43,994

2011 £35,393

2010 £32,850

2009 £27,437

2008 £26,121

2007 £26,712

2006 £24,516

2005 £23,553

2004 £21,289

2003 £20,007

Wow time really makes the difference doesn’t it!

Workerdrone

For the first few years (thinking I was risk averse as wage was low and money hard to come by) I was 100% high equity with profits. After the dotcom crash. Right at the bottom of the market I surmised people will always need technology so from then it was about 40% high equity so and the rest argon technology fund A. I left the wp alone as it has a terminal bo us on plan maturity. Probably got another 15-20 years to run with argon. I have a separate plan with my current employer

Bravepants

ForestBluebells said:

Compound interest calculator set to 5% and putting in my savings at a reasonable level not what I’m currently adding which is higher as I’m doing a lot of additional unsustainable work says I’ll have over £1m by the time I’m 60 in pensions and my ISA….seems unlikely but reassuring. It also shows how boring those first few years are on the graph! 

This is one of my favourite posts from one of my favourite bloggers...

https://theescapeartist.me/2019/11/09/how-to-build-a-compounding-machine/

Ibrahim5

I clicked on the 'pay yourself first'. I hadn't understood what that meant. I didn't do that at all. I just spent what I wanted and transferred the rest into savings at the end of the month. If I needed something I would get it. Some months I would save loads and sometimes very little. I only bought what I needed and didn't waste money. I don't see how monthly spending can be constant. I suppose if something unexpected turns up you would have to raid the savings.

jamesd

bostonerimus said:

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. 

Yes, lots of income can help a lot. In my case I have several advantages based on my own lifestyle:

1. I've never smoked.
2. I tend not to drink much, at least after university.
3. I've never learned to drive.
4. No children.
5. I tend not to go for expensive and showy things just because they are expensive and showy.

In my case it wasn't so much aggressive saving as just not increasing my spending much after lots of years of low income changed to a fair bit above average. But that's me. It can be done on less, just takes longer sometimes. At minimum wage of around 14k a year, the state pension provides 9.5k and that's 68%, already above one common retirement income target, 60%.

Ibrahim5

I think children and dogs go in the same category. The OP has 2 dogs which are expensive but I don't think she would want to get rid of them. They also lead to random and unexpected spending. People without children seem much more in control but I wouldn't want to be without my children. Not learning to drive sounds sad to me but when I think about it further it's only because I have children. All those family holidays and day trips. Everyone has two figures. Their take home pay and the amount they spend. As long as there is a gap between the two which is invested well early retirement is possible. The bigger the gap, the earlier the retirement. That's why I said FIRE is much easier if you earn a lot.