Financial independence is a long term goal that requires a plan.
To be financially independent I have calculated that I will need a savings fund yielding a minimum of 4%pa and investment capital in excess of 750k. This is based on my current budget and spending patterns. Additionally I will of needed to ensure that all debt is repaid including mortgage. I also having a pension fund that is c.50% of my investment fund, that will provide additional income in older age.
Below are the steps I have already taken and those I need to develop further:
Steps I have taken to progress towards FIRE:
– Establish a monthly budget and track spending
– Save 10% of gross income into pension
– Save 30% of net income into ISA
– Auto invest monthly and reinvest all dividends
Steps to develop further:
– Establish passive income stream
– Promotion & subsequent pay increase at work
– Reduce convenience food & drink spend
Why am I blogging about this?
– Increase accountability
– By writing it down, makes it easier to identify mistakes
– Avoid over complicating my fund, if I cant easily write it down to explain then its probably not part of my strategy