This is another one of those aspects of life where we have challenged the ‘norms’ of society. We decided to forge our own way of doing things by keeping our finances separate.
The accepted norm for couples is to merge finances, particularly when you own a house together as we do. In our opinion this would have led to unnecessary conflicts between us. We are both naturally frugal and would have resented any spending by the other which we felt wasn’t necessary!
Staying physically fit is something that is important to both of us. It fits really well with those who are seeking financial independence. If you aren’t at your physical best, you won’t be able to enjoy the retirement you work so hard for!
As mentioned in A Way to Less……. Spending! we are always looking for more ways to be frugal and found that reducing our fitness costs was an easy way to do this.
For many, the cost of fitness can be huge! The fitness industry must make so much money out of all those people with unused and unwanted gym memberships! Don’t get me wrong, there are many people that use their gym membership in a cost-efficient way and really benefit from it, but there is a very large proportion of the population that don’t!
As somewhat of a personal finance geek, I (Mr Way) have learnt a fair amount over the last few years. As a result, I wanted to share my specific take on saving for FIRE in the UK with you. I am not a qualified financial advisor and nothing in this article should be considered financial advice! This is simply a log of my own findings/opinions in the hope they may help you to do your own research!
Most of the information in this article will be based on my own situation as a full time employed basic rate tax payer. The advice will differ depending on your circumstances so do your own research.
You may well have more efficient ways of saving than I mention below. If so, please let me know!
Mr Way
There are many resources out there on how to save for financial independence. In my experience, most of these are US centric with their own tax and savings implications (401k, Roth IRA, healthcare etc). The general principles are very similar and can be broadly followed. But what about the UK FIRE saving nuances?
Obviously saving for FIRE differs from ‘traditional’ savings techniques because you need to access your money much earlier than traditional retirement dates (55+). If you aren’t planning to retire early, the best course of action will be very different.
In What is FIRE? we described the process of achieving financial independence and having the freedom to retire early from work. That’s great, but what are you going to do with all that spare time? You need to have a goal!
“One can find time for everything if one is never in a hurry.”
Mikhail Bulgakov, Heart of a Dog
What Are You Retiring TO?
It’s vital that you understand what you’re retiring TO rather than focussing on what you’re retiring FROM. This is what we mean by ‘have a goal’!
Frugality is a term that gets thrown around quite a lot. But in our experience it can mean very different things to different people! Typing the word into Google generates this definition and example:
The quality of being economical with money or food; thriftiness.
“He scorned the finer things in life and valued frugality and simplicity”
We actually think that’s a pretty good summary, especially the example!
Essentially, frugality boils down to optimising every spending decision, so that you get maximum benefit from every pound spent.
Being car free can be a pretty difficult lifestyle choice to make. It goes against the ‘ideals’ of most people in our society. But the potential benefits are huge. And it goes much further than just the financial gain!
I’m lucky in that I have an office based job. Currently there is no requirement from my employer to own a vehicle. As such, it’s fairly easy for me to walk to work each day.
I’ve chosen to walk rather than cycle for a number of reasons but it mainly comes down to the length of journey. I can walk to work in 25 minutes, whereas cycling would take me 15-20. Allowing extra time for unlocking and locking the bike up and getting changed into suitable clothes, they work out the same. As I’ll discuss below, I get many other benefits from walking which, for me, make it the better option in my situation. However, if my commute was further, cycling would start to look like a much more attractive option. You should weigh up your options but first and foremost, do whatever you prefer. That way you’re more likely to stick to it!
To be without some of the things you want is an indispensable part of happiness
Bertrand Russell
Minimalism essentially means wanting less ‘stuff’. Clearly this fits well with those seeking financial independence. When you discover such a productive and worthwhile way of using your money, you no longer want to splurge on unnecessary things.
We really identify with The Minimalists’ definition of minimalism. They essentially explain that minimalism can mean different things to different people depending on your priorities. Being a minimalist is more about intent than any particular number of items owned for example. The intent to reduce your consumption and free your mind from the stress of ‘stuff’ can have a huge impact on your day to day happiness.
Tidy desk, tidy mind!
Owning stuff comes with responsibility. Each item requires maintenance, upkeep and/or storage. This process saps your energy – financially and mentally.
