Category: FIRE

Happy New Year!

On By Mr WayIn Finances, FIRE, Optimisation2 Comments

2019 

2019 has been a year to remember for us, with highlights including: 

Clearly, 2019 has been more expensive than we would have liked!  

Despite this we have still managed to achieve all of the above, as well as an unwelcome new car purchase, while saving in the region of 35% of our income. We much prefer to see a figure above 50%, but considering what has happened this year we are happy to still make significant contributions to our ‘FI funds’.  

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Baby Way

On By A Way to LessIn Baby Way, Finances, FIRE, Frugality12 Comments

We’re Having a Baby!

You’ve met Mr Way. You’ve met Miss Way. Say hello to Baby Way! Well, not just yet….

If the incredibly expensive Africa trip followed by a new car weren’t expensive enough, we’re now expecting our first child!

We recently found out that Miss Way is pregnant, with the baby due in July 2020.

Obviously, we’re absolutely delighted with this news. But at the same time, there are some severe doubts about whether we’re doing the right thing.

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Misunderstanding the FIRE Movement

On By Mr WayIn Finances, FIRE12 Comments

There has been a steady increase in the mainstream media coverage for Financial Independence Retire Early (FIRE), especially here in the UK.  

While it’s a really good thing that our message is being spread to more people, this also brings a lot of frustration with it. Almost every time I have seen FIRE covered in the press, there appear to be severe misunderstandings about the principles by which us ‘followers’ live. 

The most recent example of this was an episode of Money Box Live, aired on 6th November 2019. Money Box Live is a radio programme on BBC Radio 4, covering all areas of money.

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Monthly Spending – July 2019

On By A Way to LessIn Finances, FIRE, Monthly Spending1 Comment

 Summary 

There was a lot going on this month – we even got engaged!!! Excluding the engagement ring and the £500 spend on US dollars for our Africa trip this month’s underlying spending was very much in line with our monthly averages. An annual insurance premium increased our usual housing spend slightly but we were broadly in line with our expected totals. 

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Monthly Spending – June 2019

On By A Way to LessIn Finances, FIRE, Monthly Spending3 Comments

 Summary 

This month was slightly over our ‘normal’ spending of ~£2,000. We had an annual membership fee to pay, as well as a couple of big outlays for our Africa trip added to the total. See below for more detail! 

We break our main expenses down into broad categories starting with the big 3; housing, food and transport. Everything else falls into the entertainment category, with any large inclusions explained in detail.  

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In Defence of the 4% Rule

On By Mr WayIn Finances, FIRE3 Comments

What is the 4% Rule?

The 4% rule was created based on historical market returns data. Simply put, it showed that a typical retiree could withdraw 4% of their portfolio while keeping the initial pot intact. The withdrawn amount would increase by inflation each year.

The rule came about from work by Bengen and later, the Trinity study. Both were based on the same data.

This rule of thumb has been widely adopted in the FIRE movement as a way of calculating the required pot to fund early retirement. It is the basis of Mr Money Mustache’s famous article The Shockingly Simple Math Behind Early Retirement

Negativity

There have recently been a lot of articles criticising the 4% rule. I still think this rule provides a great initial estimate for anyone considering FIRE. That’s why I wanted to create an article giving the other side of the argument.

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Thought Experiment 5

On By Mr WayIn FIRE, Thought Experiment10 Comments

What Will I Do When I Retire?

This is the first time we’ve participated in one of SavingNinja‘s Thought Experiment posts so we’ll add a little explanation.

This is an idea to get bloggers to immediately respond to a question and all post their answers on their blogs. You have to write the first thing you think of and can’t pre-plan or do any major editing.

We’re joining in at Thought Experiment 5 because we only recently started our blog! If you want to see previous versions see SavingNinja’s archives.

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