Retirement Conversations

Just a random post to share a few recent conversations I’ve had about retirement:

Conversation #1

I had a routine medical appointment the other day and was attended by the same nurse I’ve been seeing for a while.

When I saw her, I made a comment about her not wearing her usual glasses.

She proceeded to tell me how she had finally gotten round to having a minor operation on her eyes, which meant that she no longer needed her glasses.

The reason why she was able to have the time to have the operation and recover from it? She’d dropped to part-time hours, or as she revealed in our ensuing conversation, she’d gone into semi-retirement (Is there a difference? I don’t know, I’m just repeating what she said).

I realised then that she didn’t look different just because she wasn’t wearing her glasses, it was because she looked a lot happier and relaxed!

She told me that after a 30-year career with the NHS, she still wasn’t mentally ready for full retirement but that at age 55, she was drawing on part of her pension and that this, coupled with her part-time wages was enough for her to live on and pay for her holidays and hobbies.

Conversation #2

One of my neighbours semi-retired a year ago when she was 53.

The last time we spoke, she was working part-time for a non-profit organisation.

I hadn’t seen her in a while so when I spotted her unpacking some shopping from her car the other day, I stopped for a chat and asked her how things were going.

“Oh I’ve jacked in my part-time hours,” she told me.

“Why’s that?” I asked.

“I’m too busy to work! Too much to do, too many places to visit!” she replied.

Work/Semi-Retire/Early Retire

So that’s just two examples of people who are very happy with the decision they’d made as regards retirement/semi-retirement, and although not extremely early retirement, still early in that state pension won’t be available til they are 65.

However, I wonder how easy it was for them to make that decision? Unfortunately, I didn’t feel that it was something I could ask either of them!

Which brings me to all the kerfuffle going on about early retirees changing their minds (nicely put in this excellent post by Monevator).

Who really knows what they will do when the time comes (unless you absolutely hate your job, in which case it’s clear what you will do!) and you reach your financial goals?

Jim from SMHD tried the early retirement thing and decided to go back to work.

Early retirement is not for everyone,  even for those planning for it!

There’s every chance that instead of going for early retirement when I reach my FI number, that I may choose to work reduced hours. However, like my neighbour, I may find that even part-time hours will get in the way of me enjoying my new found freedom properly!

Or I may actually go for full retirement, which sounds very appealing when I’ve had a tough week at work and wish every weekend was a bank holiday weekend.

Or I might continue working (one more year?), which is how I feel when I’ve had a good day at work, had a great laugh and felt like I’ve achieved and contributed loads. (Yes really, I do have good days!).

I have no idea how I will feel when the time comes to pull that retirement trigger but the most important thing is that I will get to choose what I want to do.

There was a third conversation I had:

Conversation #3

Bumped into an ex-colleague at the gym. She’s still at the company which made me redundant and things seem to be going well for her.

While we were chatting, she revealed that her husband had retired some months earlier.

“When will you be retiring?” I asked her, knowing that she was in her mid-50s.

“I’m not,” she replied, “It would do my head in sitting at home with him all day! I go to work to get away from him, the weekends are enough!”

She was joking…I think!

And Another Thing

The nurse and my neighbour? Both single (one divorced) which cements in my mind that I’m fine going it alone, since it appears that most people aiming for FI are married or with significant others, helping them build their FI pot, sharing expenses.

Not that I’m intentionally staying single (or plan to stay single for long…ooooh!) but if things don’t work out on that front, I’ll be just fine! 😉

And on that note, have a great weekend all!

Where you’ll probably find me at some point on Saturday night…

2018 Goals + Bingo

Happy New Year to you all!

For those who work, I don’t know about you but this felt like the longest week ever in the office!

I have no idea what this year will bring but just hope that it will be interesting (bubbles and market corrections? Bring ’em on!), with a lot of good stuff and laughs in between! Oh and with me (and you) continuing to head in the right direction with our finances (bubbles and market corrections notwithstanding!)

Anyway, back to the main topic…Goals!

I only set a few goals last year and the focus on just those few worked well for me with little room for distraction so I’m going to do something similar exactly the same for 2018.

So without further ado, here they are:

Continue reading

Comparisons

Before embracing it, I very nearly dismissed the whole FIRE (Financial Independence/Retire Early) concept.

The idea had piqued my interest immediately but at first glance, it seemed as if I did not fit into ‘the same mould’ as everyone pursuing FI (or having reached FI).

I looked on in dismay as I compared myself with the entrepreneurs, consultants, engineers, bankers, IT specialists and other high earners who were able to tuck away not just the equivalent of my entire salary year on year, but in some cases, multiples of my salary, for their financial freedom and early retirement. My initial thought was, ‘Crap, I can’t do this, I don’t earn enough and I’m in the wrong sort of job!’

Then I compared ages and everyone seemed so young – people in their 20s and 30s aiming (and on track) to be FI and to ‘retire early’ by 40 or by their early 40s. I was already in my mid-40s by the time I came across MMM – crap, was it all too late for an ‘old girl’ like me? (although it’s a good job I don’t look or act old 🙂 )

Another thing was that it appeared that you needed to make huge sacrifices to become FI. I mean I am and was able to cut back on my spending but I couldn’t see myself taking the extreme route and being a frugal recluse, living a cheap but not very cheerful (in my opinion) life or living like a student again.

More importantly, I didn’t want to be seen as tight-fisted by friends and family. Yeah, I know I shouldn’t care what anyone thinks.  While I don’t mind being a bit different, I do care about what the people I care about think, especially if it may affect my relationships.

So, it would have been no surprise if I had gone about my merry way, thinking FIRE was a nice idea but not for me.

Except that I continued to read about it with an open mind. Why? Because despite my initial misgivings, the whole concept really fascinated me and I couldn’t stop thinking about it!

I ran some basic numbers (on the proverbial back of a fag packet) and it dawned on me that I didn’t need to earn megabucks (no, I don’t need £1 million!) or do exactly what someone else was doing or did – I could just take certain (good) ideas and apply them to my own situation.  Yep, personal finance being what it says on the tin!

FIRE  comparisons are like comparing these two

More Comparisons

However, despite embarking on my FIRE journey, I couldn’t help but continue to compare myself to others.

People whose net worths were waaay bigger than mine after a shorter space of time, people achieving astronomically high savings rates, effortless side hustles and blogs earning income to die for. Some had already reached FI, or they were only X years away and they were only in their 30s etc.

Such comparisons were at times a little disheartening until I eventually realised that it was just  pointless comparing myself to others.  The only comparison worth taking note of is that of comparing my own progress over time.

These days, I can now look at other people’s very high net worths and mega savings rates and admire them and applaud them, without feeling bad about my own attempts and performance.

To say that I never feel any envy would be to lie, but hey, I’m only human – I just don’t dwell on the envy or allow it to become negative, I just focus on what I’m doing myself. Everyone’s situation and circumstances are different, whether it’s their background, age, stage in their lives, different countries, different jobs etc.

Numbers

Not everyone likes to share their actual numbers but I made the decision to do so when I started this blog – I just know that some readers like to see real figures (to compare with their own, I suppose, haha!).

Until around nine years ago, my net worth was a negative number due to my numerous credit card debts. I eventually paid these debts off and by the time I started my FI journey in 2014, my net worth was £74,596.

As at the end of August, it stood at £205,509.

STOP! Try not to compare my net worth with your own – we are different! 🙂

I didn’t even notice that I’d passed the £200k milestone because by itself, it doesn’t actually mean anything, it’s just a number since I’m not using it in any of my calculations. However, it’s good to compare how far I’ve come since those negative days!

[EDIT – I see from some of the comments that I need to make a clarification – my £200k race with John K is with my Future Fund, not my Net Worth. My Future Fund currently stands at £125,946]

Do you compare yourself or your savings/investments progress and how does it make you feel?

My New Hobby, plus Home Brew #8

As mentioned in my post about 2017 goals, I’d got it into my head that I didn’t want to wait until I was retired before doing something I’ve always fancied doing – that of learning to play a musical instrument!

With my mind made up, I struggled to think of what instrument that someone like me (ie non-musical) could easily learn, which didn’t require formal/expensive lessons. Fortunately, I mentioned my dilemma to my sister who announced that coincidentally, she had just started to learn to play an instrument….

So, that’s how I came to buy a ukulele!

Yes, it’s like a little guitar!

TFS wasn’t too far off when he suggested a banjo in the comments, in that it is a stringed instrument!

For those who don’t know (which included me, before I bought it), a ukulele does resemble a small guitar, except it’s got just 4 strings, not 6 like a guitar. The version I bought is a Concert ukulele.

How Will I Learn?

YouTube will be my teacher – there are loads of free ukulele lessons online. Thus far, I’ve just been learning a few chords and how to strum – I’m just sooooo happy that something sounding vaguely like a tune is being produced! Wow, who knew I had it in me – I certainly didn’t! 🙂

Now, I’m not aiming to be an expert or to be able to perform in public. I’m finding it both fun and relaxing just picking it up and practising for a few minutes at a time. My fingers hurt a little but callouses are already starting to develop.

The total cost of this new hobby was around £60, including case and tuner – I’m very glad I decided to go for it!

Another Home Brew Success

Home Brewing was a new hobby which I took up back in September 2014 – like any good hobby, it’s still going strong and I still get a kick out of brewing my own beer!

However, my last home brew update was back in April as my brewing timetable was interrupted due to having family staying for most of the summer.  I was able to resume at the end of October, although the brew wasn’t really ready until last month.

So the kit I made this time was Milestone’s Black Pearl Stout – yes, I’m partial to a bit of Guinness and wondered if I could do a fair imitation of a decent stout!

The kit produced 42 bottles (21 litres/36 pints) and was free – it was a birthday present.  As I spent £5 on a new tin opener (to open the big cans of malt), the cost of these beers work out at £0.12 per bottle or £0.14 a pint! Not just happy hour, happy days! 🙂

Alcohol strength just under 4%, obviously it’s not a patch on Guinness but..it’s got a good ‘stouty’ flavour and the most important thing of all, it pours with a decent frothy head! I’d notch that as a success, plus my friends and ex-colleagues like it too!

I’ve now done 7 different beer kits and one cider kit. I had originally been planning to brew (and document) 10 different kits and then just reverting to brewing my favourites.

However, there are so many different kits out there, I may just keep going and trying new ones that catch my eye and picking up old favourites when I see them on offer.

Alcohol Budget

Whilst not a specific goal of mine, but as mentioned in a comment I posted on FireinLondon’s post about his spending on alcohol, I’m going to try to reduce my ‘Alcohol At Home’ budget to zero this year…

No, I’m not turning teetotal – this is just to stop me spending money on alcohol for home consumption. This should encourage me to continue brewing my own and it helps that I received 3 homebrew kits for Christmas!

I should also drink the stuff that’s in the house already, which at the last count included 3 large bottles of gin (leaving gifts), plus various other (unopened) bottles of both spirits and wine.

Barring an outrageous alcohol problem, this should all last me a while (not just til end of Feb, FiL haha) – even though I’m not working, I’m still keeping to my not drinking on ‘school nights’, as I don’t want to descend into bad habits!

Anyway, have a great weekend all!