It’s now been six months since I realised I could realistically (semi-) retire by the time I’m 51, and ambitiously by 48. I’ve saved a bit of cash in that time, but TBH I’ve only just got into the swing of the early-retirement drive since the start of this year, 2015, so this isn’t so much of an update, rather a starting-point statement of where I’m at, a base from which to compare in the future.
I’ve now started (since January 3rd) to keep a record of everything I buy in various categories, with the intention that this will inspire me to spend less and save more. It worked a treat in January, but that’s probably because (a) it’s still a complete novelty and (b) I haven’t actually needed to buy anything of significant value.
At the moment my data’s only in Open Office, I might move it online laters.
January 2015 Early-Retirement Extreme Update
Reminder of Long Term Financial Goals –
- Be mortgage free in 7-10 years (£138k outstanding)
- Pay over £1000 a month towards the mortgage (15 year term) with a mind to either using savings or ‘trading down’ to pay off early.
- Save an absolute minimum of £250/ month in additional funds (=£30K after 10 years, without accumulations). Ideally this figure will be significantly higher.
- Find additional income streams to boost the above figure. Target = £20K in five years.
- Save £200 a month towards a ‘land fund’ – eventually to be used to purchase a van and land on which to establish a forest garden.
- Continue paying into the Teacher Pension Scheme.
January Update 1 – ‘Spending days compared to non-spending days’
I figure that I need to internalise not consuming – to this end I’ve started keeping a record of everything I buy and (roughly) how much it costs me. One of the interesting things that’s emerged is that there are several days during which I spend nothing and my non-spending days just over the 50% mark! This is now a new goal for 2015 – simply to clock up more non-spending than spending days.
NB – Transport was £000.
- Frivolities = beer/ coffee/ subscriptions/ transport, (because I only really use transport for ents).
- Necessities = council tax, services, food, ‘stuff’ (because I’m not a frivolous materialist consumer).
- Property = mortgage repayments + service charge.
Ratio of expenditure to income including mortgage – 30%
Ratio of expenditure to income excluding mortgage – 71%
If I can keep this up for another 11 years, then I can basically move to full retirement – but this is premised on the following:
- Having a Teacher’s pension which kicks in at 60 (most of it anyway), meaning by the time I’m 51 (or thereabouts) I’ll have enough saved to simply see me through for 9 years.
- Continuing my very low consumption – After property my expenses come to around £600. I really don’t see why anyone needs to spend much more than this.
So – that’s me formerly started and outed on the ERE mission, bring it on!