Only freedom will do

edinburgher · 2 May 2014 at 3:58PM

It has come to my attention that I have been here for a very long time

I joined these forums in a dim and distant past, where money was my enemy and the weight of my student debts left me crushed and panicked, unable to picture a future where I would be able to get a debit card (never mind a mortgage).

5 years later and the milestones of marriage, first home and first car have come and gone. Throughout it all, I have had a creeping feeling that something wasn’t quite right. I don’t get the world of work, and while I’ve never been unemployed in my adult life, I’ve tried too hard to try my hand at too many things and I’m left feeling like I’m an actor who recognises the play, but does not understand his motivation.

As some of you will know, I have experienced some real heartache of late. Your messages of support and hope have been so touching and in many cases, I have got more comfort from anonymous individuals who took the time to get in touch than people I know in the ‘real’ world.

While money would have done nothing to prevent it, the luxury of savings and our hard work over the years meant that we were in a position to make the right decisions and take our time with our next steps. Returning to work has been a real blow and without sounding even more melodramatic, I don’t think I’d realised just how damaging I find the merry-go-round of rote work, office politics and bureaucracy.

It won’t do, I can’t believe that this is as good as it gets and to quote one of my favourite singers ‘We can always build a world better than this’.

From this point on, I plan to dedicate myself to achieving financial independence. Not MFW, but freedom from all the nonsense that we go through to just to pay for a pile of bricks and a few years of leisure at the end of our span.

Hopefully you can join me for the journey :beer:

Swampy3k · 2 May 2014 at 4:17PM

Well said edinburgher!, Sorry to hear of your heartache, however you have a brilliant positive attitude well done!

Edinburgher in Glasgow? how's that working out for you?

Alchemilla · 2 May 2014 at 5:21PM

God bless you and all who sail in you E.

What plans? And why has it never occurred to me before that you might have a Scottish (Scots?) Accent?!

skint_spice · 2 May 2014 at 6:05PM

Sounds a fabulous idea, do you have a plan? and a timescale in mind?

t-rexcellent · 2 May 2014 at 6:20PM

Sounds like a great idea - had a really rough week at work and just read this - will be following your journey!

Hope all the heartache heals with time and focuses you on where you deserve to be!

Good luck x

Goldiegirl · 2 May 2014 at 6:25PM

Hi Ed

Good to see you back

I am with you - freedom is the ultimate goal.

It was always my aim to stop working at some point before my state pension age.

I paid in AVC's, and saved money..... but I wish I had my current level of focus 20 years ago. Or I wish there was such a thing as MSE MFW 20 years ago:rotfl:

Hindsight is a wonderful thing, and I kick myself when I think of financial improvements I could have made in previous years.

But, my goal is within reach, so it is do-able, even if I didn't always do the most MSE thing. You have youth and determination on your side, so I think you'll be successful in your quest.

I'll be with you all the way

edinburgher · 2 May 2014 at 6:31PM

Get ready for another essay :rotfl:

I have been reading a lot of personal finance books and blogs. For whatever reason (cheap land?), our American chums do finances entirely different from we Brits.

US = buy a cheap house, invest in the stock market
UK = buy an expensive house, sell it and buy a more expensive house, sell that and buy a finca, be scared of the stock market

I think that the recent budget has made it possible for Brits to move away from their innate obsession with house prices and build wealth in a meaningful way through investments that don't have a front door key :T

We have a home with a reasonable and growing chunk of equity, I don't see any pressure to overpay it just because it's a debt. Personal finances need to be managed holistically, and at this point in our lives, it's already more beneficial to save than it is to repay. Investing should hopefully trump this further.

We now have a fully funded Emergency Fund (more than 3 months of all expenses). Money from this point will be saved and invested, in low cost index tracking funds. I'm expecting quite a bit of volatility, Mrs E supports the plan.

We would still like to move house at some point, but this will probably be on a very long mortgage at as reasonable a rate as we can find. I'm aware that we're in a historically bizarre period of low interest rates, this isn't set in stone. Life is full of choices and I will no longer apologise for changing my mind.

So, next steps will be:

Create a new SOA
Calculate 'our number'
Start tracking all expenses from next payday
Cut expenses
Add the average spare money in our accounts to savings each night (i.e. £100 left, 10 days until payday, £10 into savings)
Increase my income, MB will probably work out quite well for this, also have Mrs E MB now
Find a job that doesn't suck
Do the same with my Freedom Fund
Move savings into the ISA each time they hit £100
Rinse and repeat

As a meaningful start to living our lives both for today, but for an incredible future, I've removed our budget line for a car replacement. We'll move to a car club as and when this car dies, or buy a banger.

edinburgher · 2 May 2014 at 8:29PM

I have decided that I will do a weekly update to keep myself on the straight and narrow, with a more detailed update at month end. Before laughing at the very small figures below, please consider that we a) topped up our EF by several thousand pounds over the last fortnight and b)decided to do this two days ago :rotfl:

Figures are for potential monthly income with a 4% withdrawal rate.

Weekly savings: £92.47 + £140.22 * (4%/12) = £0.76
Weekly investments: £0

I'll probably do ISA vs. mortgage, income from pension age etc. at month end, as well.

Currently drooling in a money nerd stupor...

RoaringTwenties · 2 May 2014 at 9:25PM

Grand to see you again Ed, you've been in my thoughts

Stonking first post btw, have you thought of a career as a writer?

I'll be with you too, hoping for all good things coming your way :T

edinburgher · 2 May 2014 at 10:02PM

Stonking first post btw, have you thought of a career as a writer?

I am one of the few people in the world with a degree in English literature who has never considered becoming a writer!

Me writing

gallygirl · 2 May 2014 at 10:29PM

edinburgher wrote: »

Currently drooling in a money nerd stupor...

Drooling along with you

.

I think you're doing the right thing Ed. If I was your age I'd have invested as you are doing :T. At my advanced years, concentrating on the mortgage is better.

Good luck with finding a job you love. I'm still ruling out things I don't want to do :rotfl:.

Only freedom will do

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