Work hard now to pay off your mortgage by 30, and retire by 40

[Ieattoomuchsugar]

And to buy a house at 19/20 whatever age

Maybe exaggerating with the ages a bit but these are examples I've seen.

People who've gone without holidays, new clothes etc, lived with the bare minimum and worked endless overtime for years in order to achieve the above.

Has anybody actually done this or in the process of doing it?

I do see the appeal but I personally wouldn't want/wouldn't have wanted to spend my 20s and 30s living that way. I do think life is to be enjoyed, I of course want to save but I am not prepared to go without things I enjoy for such a long time. I think it's better to strike a balance, and I'd rather enjoy life now just as much as when I am 50/60.

most people i know take bigger mortgages on in their 40s

The scum often has stupid articles (I see them on fb) about a smug 20-something who has managed to buy a 2 bed flat in Central London just by giving up take away coffees, taking pack lunches and not buying clothes for a year. but when you read further they always lived rent free with parents for years and usually got the deposit from the bank of mum and dad

Why would 27 be young to buy a house?

because statistically it is

I'm doing it brought house for cash aged 32 now 36 and contributing 40k a year to pension currently likely to hit the lifetime allowance just about aged 58 with no more contributions to pension. So just saving for living expenses between target retirement age of 48 with making additional no contributions till age 53 to get full state pension.

I do a job I enjoy no travel required and back home in 30 mins when I go into the office 3 days a week. I do live away from London though so house was cheaper. So I wouldn't flog myself to retire at 45 indeed I may flex that and go part time at 40 and just work till that age 53 retirement date (it will certainly be more tax efficient as the government take s lot of tax if you earn the money PAYE.

Everyone has different starting points, experiences and set of circumstances. It might work for some, it might not. Some might be bored retiring at 40, some might not. It’s far more complex than a one plan fits all.

That should say making additional NI contributions till age 53

We worked overseas for 25 years and were able to buy house for cash and retire at 52. We also travelled a lot (55 countries and counting) and had some amazing experiences.
However, being away from parents and siblings etc does not suit everyone so there are always sacrifices, even if they are not financial.

Much better to enjoy life and experiences while you’re young and fit and healthy and spend your time whilst old and infirm working.

I spent my entire 20s saving for a house and was renting at the time so yes my own luxury was cinema pass and doing things in the UK, no holidays. Got my house at 30 and will be mortgage free by 43. 4 yrs left to go.

Once I had the house, I started overpaying a little as I got a promotion and balanced that with travelling.

I tell you what I'm so glad I could overpay cos a few yrs later I was made redundant and that overpayment was a lifeline!

The way I see it being mortgage free means no matter what happens to my job I have a roof over my head it gives me options to day go part time, change careers. As I get older if I fall ill again uts less financial pressure.

I dont see it as be mortgage free and retire early just this sense of financial freedom really.

I see it quite a lot people works 20/30 yrs and by 40 ish that sense of wanting to do something different, cut back on hours, wbmabf to retrain but can't take the financial hit because of mortgage.

So for me its about giving myself options.

Retire at 40??

Sounds bloody awful

We are struggling a bit just now and I'm overpaying the mortgage every month. I prefer managing without short term to secure our future. I also think it won't do the kids any harm to do without for a bit.

How many people don't reach retirement age?

I know several who didn't make 55...

It has to be a balance. Living such a frugal live in your young years sounds so miserable. We are careful with money and aim to pay a bit extra off the mortgage every year but we don't go without fun times to do it. We don't buy loads of new things for the house though.

This is my brother and SiL. Both ran their own businesses, sold them in their mid 30s and retired. Tbh they have a great life, very busy but only with what they want to do (kids, horses, dogs, art). It really isnt an option for most people in most jobs though.

It is all bollocks. Every single one of these stories has the younger people receiving some significant form of financial support by a parent or other benefactor if you look hard enough. Yes you might be able to do it by your 50s, but paying off a mortgage on a decent property by 30 with normal job? Fantasy.

We'll be mortgage free by 50. That's good enough for me. As for retiring, never!! Only if I lose the use of my legs/arms would I.

@chessycurls

most people i know take bigger mortgages on in their 40s

That is the main obstacle for me the housing market being cyclical will crash sometime and assuming I am fit and well and it is a 1990s type event I will trade up to a bigger house. That depending on the size of mortgage may make those plans change. But currently my 2 bed and no kids with a big garden suits me fine.

I don't think it's possible with today's property prices. It's got nothing to do with scrimping and saving anymore. I hate the undertone of "strong work ethic / suffer and deny yourself and you will be rewarded" around this topic.

We were mortgage-free by 40. We bought cheap in a cheap area after renting for ages. We were saving but also going on holidays etc - no interest in clothes, shopping, drinking etc. 40% deposit, all inheritance on DH's side. Some people would say he was "lucky" to lose his grandparent's early . We deliberately chose low repayments and overpaid regularly.

We have what passes as good jobs locally but my job is below the national average wage - DH earns well but nowhere near what I see on MN. Retiring at 40 would require an insane amount of cash savings or equivalent. The only people I know who can do this are the ones that caught the property prices increase at the right time - they own several properties and that's their pension - funded by those who will never be able to afford the security of owning regardless of how hard they work.

@Summerfun54321

Much better to enjoy life and experiences while you’re young and fit and healthy and spend your time whilst old and infirm working.

But when you're working you often have to get up very early. I get up at about 06.20 and I do wonder if I could still do this in 16 years when my state pension will be available to me. It's hard now especially in winter.

As other have said, decades of total retirement probably doesn’t suit most people. Unless you are some genius artist etc, decades of sitting around (or even walking/travelling) at “leisure” might be an empty existence, not really in our evolutionary nature. Hence why in many parts of the world, grandparents loge to spend hours each week caring for their grandchildren. Yes, it’s also to help out financially, but you can just tell those old people who are constantly around others and/or “being useful” in some way are just just happier.

Rather than early retirement, most people and society should probably aspire to a better work/life balance. Eg, 3 or 4 days working week, while keeping the retiring age at 65+ or even 70. That would make for a much happier society and if the demands of global capitalism/rampant middle class consumerism would rein its neck in by a certain amount, would be easily achievable.

@Riverlee
Why would 27 be young to buy a house?

My dc plans to buy a flat in the next up year, and he’s in his early twenties. He’d rather pay a mortgage then rent.

I'm sure an awful lot of 20 somethings (and 30/40 somethings) would rather pay a mortgage than rent!
You need either a hefty deposit or a well paying job to get a big enough loan to cover a mortgage. If you earn an average wage (RL rather than MN, so let's say 33k) it's going to be pretty difficult to buy anywhere in the south east.

It's not something I think is a particularly good way to live. Its great being financially savvy and to start sowing the seeds for retirement early but not at the expense of more exciting things. I bought my first house in my twenties and paid nominal amounts into my pension etc but travel the world, went to loads of gigs, festivals etc. Even though by our late 30's we had paid off our home and bought our first rental , we made sure we and our dc had lots of fun, Birthday parties, holidays, days out etc I hate penny pinching and I've only missed something in life if I really can't afford it.
I've noticed on these retire early websites that they all seem to still be doing something either blogs or reviewing for holiday companies, either that or I suspect they've had huge inheritance or trust funds.. 40 is too young. Mid 50s is our aim to almost retire ie very part time to start, then nothing when we feel like it, so we're still young enough to have more holidays etc but without the sacrifice of anything.

This is a really interesting thread. I suppose like anything there’s a balance to be struck. I’m in my 50s and have a lowish mortgage (£100k) but have enough investments to pay it off now if I wish. At the moment it’s better to have the income from the investments than use them to pay off the mortgage. I also have a good company pension. What it does do is give me the freedom to do the kind of work I want to do. I remember working with someone who hated her job but was determined to stay there for the next 30 years because it had a good pension. She fell ill with a progressive condition and was invalided out at 44. Doing good, positive, meaningful work that you enjoy has benefits beyond salary. It is interesting, feels worthwhile, and makes a difference in even some small way, and of course is great for your own health and well being, and social life. So, I have no interest in retiring though I may become part time at some point. I’ve travelled and I’d like to do more, but I don’t want to travel relentlessly for the rest of my life.

I agree with you op. Life is for living. Old age, even middle age, isn't guaranteed.

I think balance is better - a sensible mix of saving for retirement/mortgage over payments/saving, but also having a career you enjoy and enjoying the life you have today, not deferring all enjoyment for a day that you aren't guaranteed to get.

I wouldn't find a walking tour ''staid'' but then I don't buy in to the notion that all socialising requires alcohol or that all younger people are more interesting than all older people. This definitely isn't true. I was out last night with a younger man (6 years younger) so I don't think I'm old for my age. Being ready for something different doesn't make you boring. I would love to walk the camino. And a walking tour of my city, that's something I haven't done before. Eating out in city bars, done that. Many times.