It’s not as if I’ve had huge pay rises over the years – in fact, there were several years where I had no pay rises and was just lucky that I kept my job when many others in the industry were being laid off.
When I started this blog in April 2014, my Future Fund was around the £30,000 mark. Not bad, you might say, compared to people who have no savings whatsoever.
However, this had taken me over FIVE years to save up!
Yes, I actually thought I was doing great, saving money and not getting into debt but it was only when I came across PF/FI and ERE blogs that I realised that I wasn’t doing that great, that there was so much more I could do!
Still, I have no regrets about not saving more during that time – I think I just really enjoyed life being debt free for the first time in 15 years!
Anyway, I was playing around with some graphs the other day against my original FI plan:
The blue bars chart how my savings/investments need to steadily grow into my Future Fund of £250,000 by 2029, ie when I turn 60. This was the original goal that I’d set myself when I started this blog.
However, check out that little red bar, which is what my Future Fund was totalling at the end of 2014 (I’ve used the correct figure, not the incorrect one!).
And if I hit my 2015 Future Fund goal of £50,000, well that’s pretty much where I thought I’d be in 2016!
Anyway, after one month, things look quite good:
Ahead of the Game
Ok, I can’t get too excited as it’s only Year 1 out of 15 years, the markets could all get messed up between now and then (in fact, they will at some point, such is their nature) but if I were able to keep this going, then there’s a real possibility that I could get to FI earlier than I thought I would (and could).
However, with my Cerridwen-hat on, I would have to consider the implications of stopping work earlier as it would mean stopping paying into my company pension scheme, ergo the pension will be less.
Stopping work earlier would also mean I would probably need a bigger pot that my planned £250,000 to make up for the extra years of not working, the extra difference depending on how early before 60 I stop working.
It’s perhaps not surprising that I seem to be ahead of the game as when I set my original goal, I had no idea how much I would be able to save/invest, or how I could change my own spending habits. The thing now is to remain focused and to maintain this long term.