24 and wanting to retire early

FireRetire98

Hi all, I'm 24 and eager to retire early if possible! 

I'd love to hear your opinions on how I'm doing, and if there's anything I'm missing that I could be doing.

I realise there are two major obstacles for me:

1. I need to buy a property so I'm not paying rent forever.

2. I need to build up retirement savings.

I'm currently earning around £26k a year and have agreed with my parents that I don't need to pay rent to them if I'm saving most of my income.

Each month I save & invest about £1300 (which is most of take-home pay) in LISAs, stocks and shares ISAs, and savings to build up a house deposit.

I contribute a lot to my pension (at least for my age). £943 a month goes into a workplace pension - this is before tax so I gain tax savings and employer contributions.

I have thought about this a lot and I think I'm realistically doing as much as I can. Is there anything I'm missing? Thanks for your feedback in advance. 

cobson

The Shockingly Simple Math Behind Early Retirement (mrmoneymustache.com)

According to MMM you should be able to retire now 😊

Gary1984

Don't get married or have kids.
Avoid car ownership if possible.
Try and boost your income through training, education, qualifications etc and always be willing to change job for more money.

When you buy a property aim for at least 2 bedrooms for an additional income and to split bills etc.

lisyloo

Getting married has helped me (guess that depends on whether you're the top earner or not) so I wouldn't say that's necessarily something to avoid.
Stay employable (via skills, experience and sometimes training) rather than simply being employed.
Be aware of where you money is going.

AlwaysLearnin

Good on you.  If you're thinking like this in your mid 20's, then I have no doubt you'll be fine!

Make sure you have enough accessable cash for inevitable bumps in the road. Also, make sure you live a little in the here and now too.

2nd_time_buyer

Gary1984 said:

Don't get married or have kids.
Avoid car ownership if possible.
Try and boost your income through training, education, qualifications etc and always be willing to change job for more money.

Getting married or at least sharing finances with someone else is normally a very good financial move. It is getting divorced/separating that is the killer.

bostonerimus

You are starting well. A major part of FIRE is budgeting and frugality which frees up more money to save and invest and also reduces the amount you need to support yourself. So maybe make sure you have that aspect under control.

SouthCoastBoy

I'm in the getting married has had a negative effect on my retirement plans as my wife has never earnt more than 14k per year. My advice purely from a finance perspective is dont have kids, they cost a fortune, if you do get married ensure they earn more than you,  and are planning to stay working. 

Having said that not sure your whole life should be planned around finances, so the non financial perspective would be enjoy life do what you enjoy and don't dwell too much on the past or the future, tomorrow may never arrive

Brie

don't drink, don't smoke, don't party.  But have a hobby - maybe one that is inexpensive.  (so not golf or following the England cricketers around the globe)

you're doing really well to be so organised about it all but all work and saving and no play makes for a dull life. You don't want to be able to afford to retire at 50 but not know what to do with your time at all.  An inexpensive hobby might also give you a second career when you don't need to work for ££ - gardening, cooking, art, leading history tours....

Linton

It all sounds very good and if continued should get you a comfortable early retirement.   Perhaps you should be thinking on how you can get better employment in the future - what extra skills do you need, how do you get broader experience.  Your finances are only part of the picture.  It could be of great benefit to be thinking about the other aspects of your life.

k_man

Just remember that right now you seem to have virtually no essential living expenses.

Life will be harder to manage, once you have your own property and other bills. Saving almost 100% of income will be quite hard then!

But the habit of saving hard is a good one, and best started early.

Unless you never leave home if course 😁