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Original poster

FIRE starter

595 replies

Mia85 · 14/02/2021 17:37

This is a thread for discussing FIRE (Financial Independence Retire Early) and supporting each other in planning for the future.

For anyone new to FIRE, the idea is that you live significantly below your income and invest the surplus, usually in low cost funds. The aim is to amass enough that you can live off the returns. At that point you are finanically independent and you are free to spend your time as you wish (which might include working if you want to do that).

There's a huge amount on the internet about it. Lots of news stories e.g. here and here One of the main gurus of the movement is Mr Money Mustache and his website is a good starting point www.mrmoneymustache.com

A lot of the FIRE discussion out there seems to be very US based and/or men in their 20s with no kids trying to retire extremely young so I though it'd be great to talk here and hopefully find likeminded people.

OP posts:
Chewingle · 27/02/2021 18:56

* Or I do both - but then accept less savings for the children or later retirement*

That should read “for the children AND later retirement”

Chewingle · 27/02/2021 18:57

* We've supported them through university, so they're well-educated adults with degrees. At that point they can support themselves, imo.*

Which is great and completely understandable

But some will want to provide for beyond.

And this is why I’m teasing this out in my mind. Hell to leather on early retirement or very significant support for my adult children

LunaHeather · 27/02/2021 18:58

yellow I hate shopping, it stresses me out so much.

Chewingle I absolutely see the dilemma and difficulty.

1940s · 27/02/2021 19:22

@Chewingle

* We've supported them through university, so they're well-educated adults with degrees. At that point they can support themselves, imo.*

Which is great and completely understandable

But some will want to provide for beyond.

And this is why I’m teasing this out in my mind. Hell to leather on early retirement or very significant support for my adult children

Does it have to be such an either or? Eg retire at 40 abs leave the children nothing. Or retire at 48 and leave the £20k each? Doesn't have to be retire at 40 OR 68
CarolinaWeeper · 27/02/2021 19:39

On the savings for ourselves vs children front, I save for my own retirement in a much bigger way than I save to help my children with a house deposit but I do still save some money for them each month. My parents gifted us 50% of a house deposit and that was amazing, I'd like to do the same for my children but would be uncomfortable giving them any more than that because I do want to instill in them the importance of saving and not relying on handouts from DH and I. My children are still tiny though so who knows how I'll feel nearer to the time?!

SeasonsInTheAbyss · 28/02/2021 00:24

In our situation, we are working class, deprived backgrounds but now live on the London/Essex border (near Zone 6 tube). We would like to help our kids (2 together and my stepson) at least afford something in the south east in which case they may need some help with deposits and this is a priority for me.

lannister · 28/02/2021 09:34

Would people advise getting on the property ladder as a top priority for FI? I rent in social housing and not sure whether I should concentrate on buying a house first before other investments.

MrsSmith2020 · 28/02/2021 10:19

@lannister

Would people advise getting on the property ladder as a top priority for FI? I rent in social housing and not sure whether I should concentrate on buying a house first before other investments.
Great thread by the way!

I will post and share our fire approach, but currently dealing with screaming child.

@lannister
I think once you have a certain amount of savings/investments you would no longer qualify for SH. So I think it's worth getting some advice before making any firm decisions.

I would check with the citizens advice bureau but in my view, yes - getting on the property ladder would be a good first step. Everyone has a different approach to FIRE.

A roof over your head that you own was our first priority, but some approaches are different and some people prefer to rent and put that money into investments for a 25 year period. It's all about risk, what level of risk are you willing to tolerate etc.
We felt a roof over our heads was a solid first step for us. That does mean a large mortgage that we have to clear/overpay etc.

LunaHeather · 28/02/2021 11:02

lannister my view is yes...but we are all different. In london, rent or mortgage was the biggest bill by a mile.

MrsSmith look forward to hearing about it.

I had been thinking to leave MN but now we have a good thread, yay.

MrsSmith2020 · 28/02/2021 11:13

@LunaHeather do you follow FIRE accounts on Instagram? That's all my feed is full off and it's fascinating to hear from a wider pool of people pursuing the same goal.

I'm so chuffed there's a thread on MN about it!

LunaHeather · 28/02/2021 11:15

[quote MrsSmith2020]@LunaHeather do you follow FIRE accounts on Instagram? That's all my feed is full off and it's fascinating to hear from a wider pool of people pursuing the same goal.

I'm so chuffed there's a thread on MN about it![/quote]
Thanks for the thought but I am going low internet too, trying to simplify my life in all ways. It's good 😁

Dashel · 28/02/2021 11:39

Hi @MrsSmith2020 can’t wait to hear about it. I don’t really use Instagram but if you have a few to recommend I will take a look.

With the posts regarding children, I don’t have any so please feel free to ignore my advice, but I believe the best thing you can do for them is teach them about finances and that there are other ways of living other than working till 68.

I also wouldn’t give them so much that they don’t need to rely on themselves too much. Plenty of parents don’t teach their dc life skills. I phoned a colleague last night and he was moaning he would be late home from work so he had phoned and ordered food delivery as his wife was also late and his two dc 22 and 25 couldn’t Ian’s wouldn’t sort out their own dinner! I was shocked internally, but it’s not my place to say anything, neither does or can do housework either so I feel sorry for the their future partners.

My husband’s parents made him pay board when he got his first job at 14 (paper round) and when he got his first job all his board money plus interest was given back to him.

LunaHeather · 28/02/2021 12:02

Dashel I find that shocking too.

I don't have children but the infantilisation of adults culture is very weird I think.

Chewingle · 28/02/2021 12:28

@LunaHeather

yellow I hate shopping, it stresses me out so much.

Chewingle I absolutely see the dilemma and difficulty.

Thank you... it is a real dilemma for me
Chewingle · 28/02/2021 12:30

I just feel like I had it so easy
Left uni
Straight into graduate training scheme
Moved to london
Highly paid in financial services

And now... what lies ahead for them?!

Chewingle · 28/02/2021 12:34

[quote MrsSmith2020]@LunaHeather do you follow FIRE accounts on Instagram? That's all my feed is full off and it's fascinating to hear from a wider pool of people pursuing the same goal.

I'm so chuffed there's a thread on MN about it![/quote]
Anyone in particular you recommend?

yellowspanner · 28/02/2021 13:09

For me owning somewhere to live is important. You never know what is going to happen....just look at Covid....and I always think that at least I am secure in my home. I don't have to worry about paying rent when I am very old. And I don't like the idea of paying someone else's mortgage.
When interest rates and investment rates are very high compared with mortgage rates some (particularly on MMM in America) suggest investing the money and paying rent or at least paying the minimum on the mortgage and investing the rest in tracker funds.
I like the security of knowing that no one can make me homeless.
But we are all different and have different priorities and risk levels.
I have owned a property that I rented out and I earned a good payment each month which I saved. I've sold it and now just own the house I live in. I paid the mortgage off aggressively even though the interest rate was low.

LunaHeather · 28/02/2021 14:16

Btw is anyone else dreading the Budget?

lannister · 28/02/2021 16:06

Also can't wait to hear your story @MrsSmith2020, am not too afraid of risk but just stuck at what to do as I feel am not ready for a house purchase but still want the money I have to work for me in the meantime. I do agree that having the security of your own home is such a great feeling, so will probably prioritise that. @LunaHeather, I heard there may be a tax rise, that's what am worried about

yellowspanner · 28/02/2021 16:11

Yes, I am dreading the budget. But my long term partner has recently died and his funeral is on Wednesday so not really thinking about the budget.

MrsSmith2020 · 28/02/2021 16:21

@yellowspanner

Yes, I am dreading the budget. But my long term partner has recently died and his funeral is on Wednesday so not really thinking about the budget.
I'm so sorry for your loss. Sending you stranger hugs through the internet.
WombatChocolate · 28/02/2021 16:41

There won’t be tax rises in the immediate term. The Chancellor needs to stimulate the economy and spend, not take money out at this point and that will be the case for a while.
In the medium to longer term, some boosting of revenue coming in will be needed and he will be talking about that. It will come and has to come. But it’s not for right now. But what we’ve spent on dealing with coronavirus will need to be paid for....not necessarily over a couple of years, and it can be very gradual and inflation can erode some of the value of the debt, but tax increases of various types will happen. But for now, it will be more spending as that’s what’s necessary to get us through this phase. It’s far too soon for tax rises now.

lannister · 28/02/2021 17:30

@yellowspanner

Yes, I am dreading the budget. But my long term partner has recently died and his funeral is on Wednesday so not really thinking about the budget.
I'm sorry for your loss. Sending you virtual hugs
Dashel · 28/02/2021 17:34

I’m so sorry Yellowspanner. I hope the funeral goes as well as it possibly can.

WombatChocolate · 28/02/2021 17:40

Yes Yellowspanner, I’m really sorry to hear that too.

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