Onwards to freedom!

Hello diary, long time no write

I've been enjoying an extended digital detox over recent months... Backed right off to fully enjoy summer, and not really got back in the habit since!

All things financial are ticking over like clockwork. I now have a reduced number of accounts, most payments and transfers are automated, and there are no short term targets to micro manage. My more relaxed approach to tracking our financial world hasn't resulted in the wheels coming off, so I'm more than happy to do a full accounts audit just once a month and post a simplified net worth update here once every three months.

With that said, the figures for 1st October 2018 were:

• £291,327.81 net worth (+£11,432.80 quarter / +£32,212.73 year)
• 33.2% financially independent (state pension not factored in)

All good :cool:

I hope you are all well and smashing your personal targets!

Happy new year all! :beer:

It has been a bit rough out there the past month or two :whistle: Our figures slammed into reverse, all thanks to the market doing what the market does... Our pensions dropped nearly 7% in the last quarter _pale_ Oh well, easy come, easy go :rotfl:

The figures for 1st January 2019 were:

• £285,393.17 net worth (-£5,934.64 quarter / +£16,004.34 year)
• 31.9% financially independent (state pension not factored in)

I've started mulling over my next 3 year challenge target (mfit). I think it will have to be a total net worth target this time, and very much at the mercy of the markets as a result... Coming up with a target will be as far from an exact science as things get!

It's that time again, the start of a new MFiT challenge! I'll be going for a savings target, the "savings" value being our total "interest accruing assets" value.

Our total annual household spend is around 18k in today's money. A good rule of thumb for early retirement is to have 25x that amount saved (in cash, ISAs, pensions, BTLs, etc - in our case that's the sum total value of everything we own excluding our home and cars and day to day "stuff" like clothes, food, furniture, etc). Our target "interest accruing assets" value would therefore be 450k in order for us to be loosely considered financially independent. This would likely be on the high side for us, as the state pension isn't given any consideration. I consider the exclusion of the state pension to be a convenient way of ensuring we don't run dry ahead of time. Later on I'll try to get a bit more scientific about it!

So, on to MFiT5... By the end of this challenge I would like us to be 50% FI, which means boosting our "interest accruing assets" value from £143,378.17 to 225k within three years :eek: That's an increase of over 27k a year - no idea if this is in the least bit realistic!

I've always had a vague feeling that once we pass the halfway mark to FI that I might have the courage to make some great life changing decisions. We wouldn't really need to earn much, 18k between us to save depleting the pot, some more to keep topping it up to eventually hit 100% FI. That would afford us a huge luxury of choice. I reduced my working hours as a reward when we paid off our mortgage (OH was already working reduced hours). Hitting 50% FI might see us negotiate fewer hours per week again, or embark on career changes, or start a business, or buy a BTL, or take a mini retirement, who knows... There's a chance we won't make any immediate life changing plans and keep on working towards 100% FI once we're half way there, but simply having the option of making big changes is enticing enough a target for now.

This one could absolutely be a rocky ride. Last MFiT I included my S&S ISA, which dropped by thousands of pounds in value in a matter of days towards the end of last year. This time I'm also including our pensions, their total value saw a five figure drop in those same few days last year! The rises and falls could potentially be quite spectacular this time... Should be fun

No idea if we can make it, but where's the harm in trying!? :cool: