FIRE - how low could you go

Adyinvestment

ajfielden said:

I'd also like to know where they are getting car insurance from. Because at £100 for 2 cars that is a spectacular deal!

Really? I actually thought that was quite expensive but assumed it was about right as I am older.

QrizB

Audaxer said:

What surprises me is that your food bill, including pet food, is only £300 per month. Does that mean all food, including lunches etc. and also include all non-food items in the supermarket shop, like toiletries, kitchen roll etc.? If so, you are doing very well, as we as a retired couple spend over £400 per month on that, and it would be even more if I included the pet food in that figure.

Really? We're spending roughly that (£70-80/wk) on groceries (not just food) for four of us. Mostly in Tesco or Sainsbury's but I do pop into Lidl now and again for their in-store bakery.

ajfielden said:

I'd also like to know where they are getting car insurance from. Because at £100 for 2 cars that is a spectacular deal!

£100/month seems a lot to me, insurance for our two cars come to under £400/yr even with a 17yo learner as a named driver (one Panda, one Nemo).

Scrudgy

I read about one guys FIRE journey where he shared his expenditure. His clothing spend for the previous 12 months averaged £1.78 a month. His ability to not spend money was astonishing, but it was too extreme for me and I quickly lost interest.

LV_426

QrizB said:

Audaxer said:

What surprises me is that your food bill, including pet food, is only £300 per month. Does that mean all food, including lunches etc. and also include all non-food items in the supermarket shop, like toiletries, kitchen roll etc.? If so, you are doing very well, as we as a retired couple spend over £400 per month on that, and it would be even more if I included the pet food in that figure.

Really? We're spending roughly that (£70-80/wk) on groceries (not just food) for four of us. Mostly in Tesco or Sainsbury's but I do pop into Lidl now and again for their in-store bakery.

ajfielden said:

I'd also like to know where they are getting car insurance from. Because at £100 for 2 cars that is a spectacular deal!

£100/month seems a lot to me, insurance for our two cars come to under £400/yr even with a 17yo learner as a named driver (one Panda, one Nemo).

Oops, I was reading it as annual. My mistake. Yup £100 does seem a bit pricey.

michaels

QrizB said:

Audaxer said:

What surprises me is that your food bill, including pet food, is only £300 per month. Does that mean all food, including lunches etc. and also include all non-food items in the supermarket shop, like toiletries, kitchen roll etc.? If so, you are doing very well, as we as a retired couple spend over £400 per month on that, and it would be even more if I included the pet food in that figure.

Really? We're spending roughly that (£70-80/wk) on groceries (not just food) for four of us. Mostly in Tesco or Sainsbury's but I do pop into Lidl now and again for their in-store bakery.

ajfielden said:

I'd also like to know where they are getting car insurance from. Because at £100 for 2 cars that is a spectacular deal!

£100/month seems a lot to me, insurance for our two cars come to under £400/yr even with a 17yo learner as a named driver (one Panda, one Nemo).

Who is the learner insurance with please, adding our 17yo learner seems to add £500pa to the lowest quote (£170).

I think with fire you can do something very simple, work out how much you earn per year on average, multiply that be different numbers of years and then share it out over a typical adult lifetime to give a 'flat lifetime expenditure'.

For example average net income 50k per annum, expected adult lifetime 91 minus 21 (age at which start working) = 70 years.

Work for 10 years gives an annual spend of 500,000/70 = 7.1k

Work for 25 year gives an annual spend of 1,250,000 / 70 = 17.9k

Tax, investment growth, earnings growth, swr, employment costs, etc etc make things more complicated but this should be a good starter for what fire means.

QrizB

michaels said:

QrizB said:

£100/month seems a lot to me, insurance for our two cars come to under £400/yr even with a 17yo learner as a named driver (one Panda, one Nemo).

Who is the learner insurance with please, adding our 17yo learner seems to add £500pa to the lowest quote (£170).

The car's a 2004 Fiat Panda, I'm an early-50s professional with full NCB and the policy is £137 fully comp with the RAC via the Meerkats. Mrs QrizB is also named and had a no-fault accident a couple of years ago.

bostonerimus

I discovered FIRE in the US maybe 15 years ago, but I'd sort of been following most of the principles anyway as just common sense money management and thrift.

DoublePolaroid

When you have your kids might be relevant. 

I’m 40 as is the missus. The kids are 4 and 0. We are fortunate enough that we could have planned to retire at 55 or even earlier. In fact we still could, but what would be the point? The youngest will still be at school, so we might as well carry on working until she’s an adult. We had the kids at the right time for us but if you’re trying to construct the perfect early retirement plan then having kids young enough that they’re (vaguely) independent before your target retirement age would be ideal. 

relishy57

Don’t forget the grandchildren if you are lucky enough to have them eventually. Most shopping trips I come home with things for them. 

MallyGirl

michaels said:

QrizB said:

Audaxer said:

What surprises me is that your food bill, including pet food, is only £300 per month. Does that mean all food, including lunches etc. and also include all non-food items in the supermarket shop, like toiletries, kitchen roll etc.? If so, you are doing very well, as we as a retired couple spend over £400 per month on that, and it would be even more if I included the pet food in that figure.

Really? We're spending roughly that (£70-80/wk) on groceries (not just food) for four of us. Mostly in Tesco or Sainsbury's but I do pop into Lidl now and again for their in-store bakery.

ajfielden said:

I'd also like to know where they are getting car insurance from. Because at £100 for 2 cars that is a spectacular deal!

£100/month seems a lot to me, insurance for our two cars come to under £400/yr even with a 17yo learner as a named driver (one Panda, one Nemo).

Who is the learner insurance with please, adding our 17yo learner seems to add £500pa to the lowest quote (£170).

I think with fire you can do something very simple, work out how much you earn per year on average, multiply that be different numbers of years and then share it out over a typical adult lifetime to give a 'flat lifetime expenditure'.

For example average net income 50k per annum, expected adult lifetime 91 minus 21 (age at which start working) = 70 years.

Work for 10 years gives an annual spend of 500,000/70 = 7.1k

Work for 25 year gives an annual spend of 1,250,000 / 70 = 17.9k

Tax, investment growth, earnings growth, swr, employment costs, etc etc make things more complicated but this should be a good starter for what fire means.

RAC learner insurance was best for daughter as the car was in her name (she couldn't learn/practice in either of ours). Once she passed Admiral little box (black box) was cheapest