25 year old.. How can I retire ASAP?

Simms92
Simms92 Posts: 15 Forumite
edited 14 February 2018 at 10:04AM in Savings & investments
Apologies if this is in the wrong section, I'm just looking for the best advice for me moving forward. I'm 25, not too far from 26 and I really don't like working. I don't want to be working 8 hours a day for the rest of my life, I want to have the option to stop working and do something that's more fulfilling for me.

I do own my home, which also makes up part of my income (renting rooms). Its worth ~200k with ~130k mortgage left.

My monthly income is made up of £2350 wage and £1100 room rent income (after taxes). So £3450 total. Including all bills/mortgage (£630) and living costs, I spend around £1250 a month, leaving me with £2000 a month (slightly less if I include holidays + treats). I have been overpaying my mortgage for the last year, currently paying off the mortgage at a rate of 24k a year including overpayments. No other debts and I don't own a credit card.

Now my original plan was to keep smashing the overpayments on the house (paid off in around 5 years), but I'm now wondering if this is the right thing to do. Is there a better way I could use the spare money I have each month? Another property?

My girlfriend has a 250k property with 100k mortgage remaining. Eventually I will move in with her, but unsure what to do with my house when I do.

My goal would be to get into a position where I have £2k+ income a month with no debts and without working. As soon as possible. Any ideas?
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Comments

  • Lokolo
    Lokolo Posts: 20,861
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    Find a job you enjoy instead.
  • HappyHarry
    HappyHarry Posts: 1,554
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    Being unproductive for the next 60 years is unlikely to make you happy.

    I'm not sure this is really a question about short term financial objectives, as I think the key to your situation is this;
    I don't want to be working 8 hours a day for the rest of my life, I want to have the option to stop working and do something that's more fulfilling for me.

    What is that "something" that you would find more fulfilling? Can you use that "something" to generate an income or wealth for you to live on and provide for your future?

    One of the key reasons that people start their own businesses is that they don't want to work for someone else 8 hours a day / 5 days a week / 52 weeks of the year. They want something more fulfilling.

    If you can find something that you enjoy, and find a way that you can make some money from it, then you could be very happy, wealthy, and fulfilled for rest of your life. Many, many successful people have done exactly that.

    Good luck!
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
  • I would still overpay but maybe only by a few hundred pounds and invest the rest assuming you have enough for emergencies.

    I'm 37 and have just fixed my mortgage for ten years. Paying a higher rate than I could at 2.4% but leaves me free to invest instead. I'm at 60%ltv so at that rate my money can worn harder elsewhere.

    I'm saving 400 Into my companies various Saye schemes and 300 a month into a s and s isas. I keep about 15k in cash and have 24k in shares. Another 6k in p2p. A the moment I want as much of my cash working at a higher rate than my mortgage as I can.
  • You can put 20k a year into a s and s isa so with that kind of spare cash you can build a good fund very quickly.
  • Get yourself in a position of having around a year!!!8217;s worth of outgoings saved somewhere. Build up a business doing something you are passionate about (whilst still working). When your business is starting to make enough to allow you to quit your job and you also have that year!!!8217;s worth of savings buffer, then do it - quit the job and do something you want to be doing.

    I!!!8217;ve stated a year!!!8217;s worth of outgoings as it can take quite a while for your business to build up plus there!!!8217;ll be periods of cash flow not flowing.

    Or your other options are to invest your money in stocks and shares but you!!!8217;ll have to ride it out for quite a few years. Or invest in an established business. P2P lending. Property rentals. Play the lottery and Premium Bonds and hope you get very, very lucky (chances are you won!!!8217;t and will just throw away your money - probably more a guarantee of losing it). Everything comes with a risk, some greater than others.

    It all comes down to what do you want to do with your time?
  • Lungboy
    Lungboy Posts: 1,953
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    Simms92 wrote: »
    My goal would be to get into a position where I have £2k+ income a month with no debts and without working. As soon as possible. Any ideas?

    £2k net i assume? That means £30k a year gross. So £100k every 3 and a bit years. Say you live another 70 years, that's a £2.1m pot. Obviously it's not that straightforward as that assumes no growth in your pot etc but you get the idea. Work out how long it'll take you to make that money and there's your very rough guideline answer.
  • Eco_Miser
    Eco_Miser Posts: 4,708
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    Simms92 wrote: »
    I don't want to be working 8 hours a day for the rest of my life
    Get a job where you only work 5 hours a day, 4 days a week, save hard, invest your savings and retire early.
    Worked for me.
    Eco Miser
    Saving money for well over half a century
  • I'd say get a real idea or get real.
  • Pay it off then go part time? That's what I did (but my house is worth a lot less than yours to be fair)
    :T:T :beer: :beer::beer::beer: to the lil one :) :beer::beer::beer:
  • Do the lottery!
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