The Student Room Group

This discussion is now closed.

Check out other Related discussions

F.I.R.E. - Financial Independence; Retire Early

Anyone heard of F.I.R.E, put your hands up!

So I’m a little older (ok - a lot older) than many of you here. And whilst I understand that retirement is far from the top of a student’s list, I feel that it should be something that is, because of the magic of compound interest, and the great financial discipline that it will teach you over the next important years of your life. I wish I had this advice when I was your age.

It’s NOT socking away money into your pension and waiting it out until you’re 68 (though you should do this)

In a nutshell, with smart investments in relatively long term low-risk investment vehicles (e.g. index funds wrapped in a stocks and shares isa - not as scary as it sounds), and if you can consistently save and invest a good chunk of your income over the course of a short period of your life (say 10 years as a rule of thumb) , you could be in a position to be financially free, or darn close to it. The idea being that you’ve invested Enough, and compound interest has had enough of a snowball effect to get your investment to critical mass where you can comfortably take out a % as income without harming your main investments.

What is financial freedom? It’s the freedom to be more daring in the route you want to take in life, without worrying about consequences or the stress of food on the table or bills to pay.

It’s could be the decision to take a few years off to travel, or retrain to do something you’re passionate about, without the need to factor in the salary.

It’s the option to buy back your freedom and the option to quit the rat race (unless you’re amazingly doing a job that you absolutely love and wouldn’t consider changing)

Financial independence is for all,not just the people on 6 figure salaries. It’s the discipline to say that you choose future freedom, over unecesary material purchases now.

It’s not about scrimping and saving and being a miserable miser, rather it’s a conscious decision of where you place your hard earned cash - and prioritising it whilst still budgeting for the fun stuff.
(edited 5 years ago)

Scroll to see replies

Reply 1
Avatar for Reue
Reue
20
Quality post. I've been following FIRE for a few years now, am fairly active in the community and been to a few meets.

My personal aim is for FIRE in my early 40s. Mortgage should be cleared by about age 38 and should have the ~£250k required investment around age 42/43.
Seems like a cult lmao

Just kidding, I've only read this post and watched a video on the BBC about it a few months ago, no hate intended
I’m so pleased that you’ve shared this.
Reply 4
Avatar for Quady
Quady
20
Yeah course I've heard of FIRE.

Though it's just a trendy way of saying 'planning for early retirement'.

Doing it over 10 years would mean I'd have a comparative rubbish standard of living forever. Id rather sell my labour for a while longer and have regular long haul travel and buy all the tasty booze I want.
Takes about 17 years if you save and invest half your income in S&S or BTL
Reply 6
Avatar for ebam_uk
ebam_uk
20
So if I save 50% of income from age 21 (graduating) I should be able to retire by 38 (assuming I make the right investments / buy to let property investments...?
Original post by mattymoo432
Takes about 17 years if you save and invest half your income in S&S or BTL
Original post by ebam_uk
So if I save 50% of income from age 21 (graduating) I should be able to retire by 38 (assuming I make the right investments / buy to let property investments...?


That’s the idea, yes. Based on investing in tracker index funds with average yearly return of 7%.
Reply 8
Avatar for Quady
Quady
20
Original post by ebam_uk
So if I save 50% of income from age 21 (graduating) I should be able to retire by 38 (assuming I make the right investments / buy to let property investments...?


Assuming you want to live the rest of your life (50 years?) on half your average earnings from 21 to 38...

I mean you could retire at 36, you'd just have less to live on.
Reply 9
Avatar for ebam_uk
ebam_uk
20
Original post by Quady
Assuming you want to live the rest of your life (50 years?) on half your average earnings from 21 to 38...

I mean you could retire at 36, you'd just have less to live on.

The way I see it, buy a farm ( chickens, vegetables to grow & maybe livestock), get renewable energy sources ie solar panels and wind turbines to generate income, have a modest mortgage paid off in 30's and buy to let properties and stockmarket investments, recycle and reduce wastage and be resourceful @ diy and general maintenance... That way one has ample money and also conserves major expenses/expenditure to retire or be self sustaining!
Reply 10
Avatar for Quady
Quady
20
Original post by ebam_uk
The way I see it, buy a farm ( chickens, vegetables to grow & maybe livestock), get renewable energy sources ie solar panels and wind turbines to generate income, have a modest mortgage paid off in 30's and buy to let properties and stockmarket investments, recycle and reduce wastage and be resourceful @ diy and general maintenance... That way one has ample money and also conserves major expenses/expenditure to retire or be self sustaining!


Buy a farm?

Any ideas how much they cost....?
Original post by Quady
Buy a farm?

Any ideas how much they cost....?

https://www.onthemarket.com/for-sale/farm/england/?direction=asc&sort-field=price

Could start from approx £10,000, obviously do due diligence, could be a process like buying a house...
Reply 12
Avatar for Quady
Quady
20
Original post by ebam_uk
https://www.onthemarket.com/for-sale/farm/england/?direction=asc&sort-field=price

Could start from approx £10,000, obviously do due diligence, could be a process like buying a house...


Solar, wind turbines, chicken and veg on a field three quarters the size of a football pitch. Solid.

I'd better buy seven with my cash ISAthen retire.
Original post by Quady
Solar, wind turbines, chicken and veg on a field three quarters the size of a football pitch. Solid.

I'd better buy seven with my cash ISAthen retire.

Not all in solar, wind turbines and livestock ( have a mixture of asset :wink:)
Reply 14
Avatar for Molseh
Molseh
19
Original post by Pipsico
It’s not about scrimping and saving and being a miserable miser

Except every single FIRE Forum, Blog post or Article makes them come across as such. The FIRE subreddit is a cesspit of rich people showing off and people begging forgiveness from the FIRE gods for spending £4 on a pint when the average price was actually £3.95 and they might not be able to retire early anymore.
Original post by ebam_uk
The way I see it, buy a farm ( chickens, vegetables to grow & maybe livestock), get renewable energy sources ie solar panels and wind turbines to generate income, have a modest mortgage paid off in 30's and buy to let properties and stockmarket investments, recycle and reduce wastage and be resourceful @ diy and general maintenance... That way one has ample money and also conserves major expenses/expenditure to retire or be self sustaining!


How much more money would you spend trying to maintain a farm? Small scale production is unlikely to be economically viable.

Food isn't even that expensive anyway, if you're trying to save £2 by not buying some eggs at Tesco it sounds pretty desperate.
That’s wrong
Original post by Molseh
Except every single FIRE Forum, Blog post or Article makes them come across as such. The FIRE subreddit is a cesspit of rich people showing off and people begging forgiveness from the FIRE gods for spending £4 on a pint when the average price was actually £3.95 and they might not be able to retire early anymore.
Original post by jameswhughes
How much more money would you spend trying to maintain a farm? Small scale production is unlikely to be economically viable.

Food isn't even that expensive anyway, if you're trying to save £2 by not buying some eggs at Tesco it sounds pretty desperate.


Lol, well I was just trying to be more self sufficient, ideally I want the financial freedom to be able to by £2 eggs from tesco, but why buy eggs when the chickens are laying them every day... I mean theorectically I could spend or invest that £2 elsewhere, same thing with the wind turbine and solar panels ( it is reducing my reliance on the grid and self generating some energy)...
A friend of mine is following FIRE.
He’s 24, already mortgage free. Purchased a £60k house in County Durham 2 years ago with small mortgage. He’s on track to hit his £550k S&S portfolio FI target by aged 35. He’ll then withdraw 4% a year - £22k.
Original post by mattymoo432
A friend of mine is following FIRE.
He’s 24, already mortgage free. Purchased a £60k house in County Durham 2 years ago with small mortgage. He’s on track to hit his £550k S&S portfolio FI target by aged 35. He’ll then withdraw 4% a year - £22k.


What was/is income ?

Related discussions

Latest

Trending

Trending

Articles for you