Why We Keep Our Finances Separate

On By A Way to LessIn Finances, Optimisation2 Comments

Society Expects 

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! 

Continue reading “Why We Keep Our Finances Separate” →

What a Difference the Sun Makes

On By A Way to LessIn Mental Health, Optimisation, Travel3 Comments

Ode to Sunshine 

S.A.D vanisher 

Negativity banisher 

Energy creator and motivation shaker 

Reinvigorates smiles and unused miles 

Of muscles that wake as you shine 

The slate is wiped clean 

As faces beam at rays that rain down from the 

Blue, cloudless sky, bringing twinkles to eyes  

As collectively spirits are raised! 

Miss Way
Continue reading “What a Difference the Sun Makes” →

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 The withdrawn amount would increase by inflation each year.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.

Continue reading “In Defence of the 4% Rule” →

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.

Continue reading “Thought Experiment 5” →

Frugal Fitness

On By Miss WayIn Fitness, Frugality, Mental Health, OptimisationLeave a comment

We Love Exercising!  

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! 

Continue reading “Frugal Fitness” →

My Money Journey

On By Mr WayIn Finances, FIRE2 Comments

The Beginning 

It all started normally enough.  

I grew up in a comfortable lower middle-class household. We never really discussed money. My parents weren’t flashy by any means, but they saw it as a matter of personal pride that we never went without. 

Looking back, it’s fairly clear that there wasn’t any significant money being put into savings (other than for holidays and new cars!). I now know that any savings my parents did have was all held in cash. My Dad has a fear of the stock market – he has a very conservative approach to money!

The conservative version of a money journey - a wallet clamped shut!

The mindset I had been encouraged to adopt was that of the majority of people in my scenario; work hard at school, get a good job, settle down and have a family in a nice big house with a shiny car. After all, it’s not surprising when that’s exactly what my parents have achieved.  These examples were the start of my money journey.

Continue reading “My Money Journey” →

How Do You Save for ‘FIRE’ in the UK?

On By Mr WayIn Finances, FIRE, Optimisation9 Comments

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.

Continue reading “How Do You Save for ‘FIRE’ in the UK?” →

The Importance of Having a Goal

On By A Way to LessIn FIRE, Optimisation, Travel1 Comment

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
There's a lot of spare time when work is optional. What will you do with it all?!

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’!

Continue reading “The Importance of Having a Goal” →

Monthly Spending – March 2019

On By A Way to LessIn Finances, FIRE, Monthly Spending6 Comments

While developing ‘our way’ and learning about financial independence, we found reviewing other people’s spending really helpful. We can all learn something from each other because there’s so many ways of doing things!

To this end, we aim to regularly summarise our spending for comparison. It will also act as an accountability test for us, meaning we have to justify every purchase! 

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

So here it is – our March 2019 spending!

Continue reading “Monthly Spending – March 2019” →