8 thoughts on “Hello there.

  1. OK – we need numbers or it didn’t happen 😉

    26 is super early.

    What are you working off? 4% SWR? So what are your annual expenses and net worth?

    Whats the housing situation? owner/mortgage/rent?

    1. I’m working on a numbers post. I’m trying to think of the best way to present – either as a story or the Retirement Investing Today approach of lots of numbers and charts.

      Some short answers to your questions:

      – I use a 3% SWR, which is more conservative than the often used 4%. That’s because 3% is more reflective of UK/Global SWRs rather than US. Secondly, it builds in some margin for error.
      – Our annual expenses fluctuate but typically they range from £25k to £35k per year. We’ve been keeping track of these for around 5 years, so I feel pretty confident of a rough figure of £30k per year.
      – My wife and I own our home in the commuter-belt with a mortgage – this drastically reduced our living costs as renting in London was very expensive!
      – Finally on net worth, we are at roughly £800k, my “share” is about £500k. So if you take my half of the expenses, and my share of net worth then you can see I’ve just about pierced my SWR (but it does fluctuate quite a bit month by month!).
      – One thing to note is that I’m not really retired, and don’t plan to be. I’ve earned a bit of money (enough to cover my expenses) since I’ve quit my job. Mainly working with my old employer.

      Hope that helps!

      (Note: Figures as at March 2018)

  2. Just reminiscing nostalgically reminded that I hadn’t even started working aged 26!

    If you had a a 5 year career (21-26) then that suggests an 80-85% saving rate

    Very high! Kudos..

    So if we take the high 5 figure salary as 100k then you’re managing on 15-20k

    I guess that seems pretty plausible if your housing situation isn’t gobbling up too much? Especially if cohabiting?

    chapeau! as they say..

  3. ah apologies – i think i must have been writing that last post at the same time you were? thanks for the additional info..

    1. Thanks Mr. Rhino (can I call you that?)

      One of my blessings is that I’m an August baby, so I managed to eek out a 5 and a bit year career. And your maths is about right, although I never managed to make a 100k salary. There is a large element of luck/unluck in my story which was a big contributor. As you’ve surmised, one of the keys to saving so much is I have always cohabited with Mrs YFG which I plan to talk about in another post.

      I’m under no illusion that what worked for me will work for even 90% of people. But maybe some of the ideas will help and show that it is at least possible for millenials to achieve their financial aims at a young age.

      1. haha – theres a large amount of luck, be it good or bad, involved in everyones story, though most are loathed to admit it..

  4. Glad you are blogging as it’s great to hear the thoughts of another young FIRE enthusiast from London. Am looking forward to your numbers post. Very curious as to how you did it, even with a small six figure inheritance.

    I am 27 years old, and am a 2 years post-qualified solicitor working in the City of London. I have been saving at 85-90% of post-tax income since I started my training contract (still living at home). Not right at the nosebleed end of the City law pay scale (i.e. not at a US firm) but my salary will have comfortably exceeded the equivalent Big Four salaries at the same level (never been sure why junior accountants get paid less than junior lawyers!). Have been following the standard FI advice of investing in low-cost index trackers in tax-efficient vehicles (i.e. various ISAs, pension), avoided lifestyle creep, and yet still feel a long, long way off being FI.

    1. Hi Helium, welcome to the blog. Great going on the savings rate! I completely agree that accountants are underpaid to lawyers ;). But I’m sure Mrs YFG thinks the opposite! I did have a post with a numbers in, but I changed my mind on having that public. For two reasons: (i) privacy, in that I wanted to tell people I know about the blog but didn’t feel I could if I had all my finances laid out; and (ii) I felt the numbers detracted from the overall theme and aim of the blog. There was a lot of granular focus on how each number was/is calculated to the detriment of the big picture. I might change my mind again in the future. And I’m sure I’ll talk about my journey more, but I don’t think I’ll go into too much detail.

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