I’ve just returned from an impromptu short trip to Hong Kong (a close member of the family was seriously ill but is now recovering) to find that as of today, my Future Fund has reached the £100,000 mark! The actual figure is £100,436.
My Future Fund is made up of the combined savings/investments I have in ISAs, SIPPS, P2P, Premium Bonds and cash. It does not include my company pension.
How long did it take?
“The First 100k is a Bitch!”, as supposedly famously quoted by Charlie Munger.
In total, it has taken me 8 years to get to this milestone.
Wow, sounds like a very long time?
Well, the first £30,000 took me FIVE years to accumulate – I only started saving in 2009/2010 after I had finally paid off all of my credit card debts. I thought I was doing pretty well, saving and not getting into further debt, but the thing was, I had no plan and didn’t really know what I was saving for, except that it was a ‘good idea to save’ something.
In 2014, I discovered the FIRE movement, worked out a plan to aim for early retirement, read up on DIY investing, automated much of my savings, cut back on unnecessary/unimportant expenses and have managed to boost my savings/portfolio by £70,000 over 3 years.
A combination of saving hard and luck with favourable markets has helped me achieve this goal. All dividend income/interest has been reinvested to add to the growth of the portfolio.
Note that no money from my recent severance package has been added to my Future Fund – until I secure a permanent job, I’ll be using up those funds gradually so they form no part in my future plans.
I don’t have any regrets that I didn’t start saving harder earlier – what I did (or didn’t do) in the past (spending or otherwise) shaped the person I am today.
No sense in dwelling on ‘what if’, ‘if only’, ‘should have, would have, could have’ – I can’t change the past. All that matters is what I’m doing now and what I do in the future as I continue to chase after my goals.
Of course, when the stock market crashes (and it will), my portfolio could well drop back below £100k as I have most of my money in equities but hopefully, it’s diversified enough to withstand the brunt of such a crash and will be able to recover sufficiently.
How much of this £100k could I get my hands on now (or within the next few days) if I really needed to?
£41,975, so just under 42%. I’m not sure if the liquidity ratio should be higher or lower? I’ve no need for this money right now but I guess it’s good to know what I could get at immediately that’s not tied up in pensions or long term investments/savings.
Righto – onto the next £100k! 🙂