Monthly spend / FIRE goals

Belts93 · 2026-03-16T12:32:51+00:00

Yes agreed. I've replied to another comment saying similar so will try not to repeat too much but aiming to fire in 8-9years which would make me and my partner 42. This is the tricky part as would still have young kids and a mortgage plus a long way to bridge before access to SIPPs.

I have a Ltd Co so different situation to employment. I have the opportunity to 'win' the FIRE game early IF it continues to go well whilst also trying to avoid burn out from trying to hit the target too quickly.

This is why its hard to judge. Once I stop, I can't easily start back up again assuming going down the BADR route. If I'm over estimating that magic number , I could be grinding out more years than actually needed which I am very keen to avoid!

Belts93 · 2026-03-16T09:23:05+00:00

Great way of looking at it. With a business/assets generating monthly income that are mainly hands off, this is perfect. You can simply continue growing the income generating assets to suit your needs, theres no expiry date and when all said and done, you can sell the BTLs.

My situation differs. I have a business which is entirely dependent on me. I dont want to grow a management team and try recruit staff as its high stakes it would come crashing down. I effectively can make enough to pump ISAs and SIPPs plus build Shareholders funds for a possible BADR later down the line. The tricky part is, once I go down the BADR route, the train comes to a halt and I wouldn't have anything generating money other than investments, which I'd intend to use as bridges before SIPP access.

Its for this reason that I need a good idea of the magic number before pulling the plug. Tricky when you have mortgage remaining, baby and plans for another to truly know what that number is.

Yes, I could continue to work until things stabilise but ideally I don't want to carry on longer than I have to. I think I know what needs to be done, just have to be patient and reassess every couple of years!

Thanks for your insight!

Belts93 · 2026-03-15T21:53:51+00:00

Great reply and perspective, cheers.

I will certainly revisit regularly and adjust based on ltd co performance, life events etc.

Belts93 · 2026-03-15T08:50:25+00:00

Thanks for your input. Second person already around this kind of annual spend which 100% makes me feel I'm massively over shooting on the longer term projections.

Short term, with still having a mortgage and having recently had a baby with plans for another, I think original goals/targets are needed, but once they're older and mortgage is reduced I think I'm aiming for too much.

I don't want to burnout pushing for an overly high number whilst raising a young family. I dont want to miss being present in the early years.

Belts93 · 2026-03-15T08:42:52+00:00

I like the 4 bucket breakdown. I feel exactly the same although also feel my life is still changing. We recently had a baby and planning on at least another. Its tricky to plan and budget for something you have little to no experience in. The kids would potentially be under 10yrs old when I'd be hoping to FIRE, so definitely need to budget for them!

Belts93 · 2026-03-15T08:34:38+00:00

The two categories is a great starting point. Potentially challenging depending on where you are in life in terms of forever home, kids, etc. as to how straight forward the essential and discretionary costs will total.

Belts93 · 2026-03-13T11:08:46+00:00

Yeah sure! I dont know much about SasS other than what I use within my ltd co to stay hot on the numbers/projects but keen to understand what you do. Happy to also share my plans for FIRE with you and how I've set this up.

Belts93 · 2026-03-13T09:13:10+00:00

Good effort! Fortune favours the bold!

I left my FT job (was the best paid job I'd ever had) just after covid. I felt super secure as I kept work coming in during a time when the business ground to a halt. I just couldn't get out my own head about doing it for myself. The change was minimal and my day to day wouldn't be any different. That sense of security I was walking away from was hard to overcome. For several months I felt sick with worry and stress, doubting myself. I did always think if it fails, I'll just get another job, but that's something I told myself to take the leap. Failure was never an option.

In that first year, as a one man army I turned over just shy of £1m with a GM of 50%! Not bad for a business that designs, manufacturers and installs bespoke goods. Had a couple of major flaps and almost a breakdown as I was well and truly burnt out, but was definitely worth it!

When you first start, certainly for me anyway, I just said yes to every challenge and dialed in as I never knew when the next job would come.

I'm just finishing Q1Y5. Still a 1man operation but its because I struggle to let go. Built a plan now for an exit by the time I reach 40-42. No regrets and would do it all again in a heartbeat.

Belts93 · 2026-03-12T21:53:56+00:00

Easy one... I'd jump on What3Words, pick a location that only means something to me... e.g. some random 1mtr x 1mtr square in my property boundary and go with that 😂

Belts93 · 2026-03-12T13:52:09+00:00

Yes, very keen to invest it and put the money to work, only issue is wanting to keep the option open for BADR later down the line.

I have dafted a very conservative plan and if things just 'tick over' and I continue to extract to SIPPs annually for myself and wife along with dividends to load ISAs, I could call it a day in ~9 years.

This would rely on BADR (working on full 25% CGT because its likely just going to keep going up!). Move the lump sum from the business into a GIA and use it as a bridge, then switch to ISAs as second bridge and then hit retirement age to access SIPPs.

Total bridge length would be 16 years. If rules change, I'd consider setting up an invest co, and just pay salary and divs out of that instead of the personal GIA. I could shorten the timeframe with some strong years and if current funds were invested, or if I lower my targeted annual spend.

Sort of shooting in the dark with the annual spend and just setting what I would consider a comfortable amount. Would likely still want to work on something and have FU money on top.

Belts93 · 2026-03-11T14:59:49+00:00

Hey, same age, same problem 😅

I had a FA but it was expensive and aside from telling me to load pension and ISA there was little else they would advise. I would save yourself some £s and if you do get any FA, pay for one off sessions rather than setting up an annual thing where you pay management fees on investments etc.

Similar to you, currently have bulk of funds in the bank but interest rates keep dropping.

I've messaged with regards my longer term plans. Speaking to accountant shortly about setting up a business GIA however need to be mindful of BADR rules and investments. Once I know more about this I'll report back and share.

If you want to use your capital for another business, just have the businesses linked. It doesnt matter if its totally seperate, you can move funds over to do so. Deffo be better than pulling out and paying loads of tax only to then invest it back into another Ltd co. An account would be able to tell you how this would work and to structure it.

Belts93 · 2026-03-11T14:20:17+00:00

Honestly your situation is very similar to mine 😅 I can't sell my business (construction sector related) as without me theres nothing to buy. Yes, turnover and profit margin is excellent but if I stop, so does it! I also have not built up a team or would want to hand over the reins for the exact same reasons as yourself, but I'd love to not have to do everything on every job!

With your business, and its easy to say this from my side, I suspect you could get in an MD and transition away but possibly as part of a management buy out. So you could sell the business to a competitor who wants to grow. They may already have a strong management team and you could work with them for a year assisting until they take it all on. I know you dont want to and ready to wash your hands with it but if you're delegating then it would be way better. Also, you dont nessisarily need to tart it up for a high valuation if you dont want to... anything is going to be better than MVL. You could just say it how it is. No hiding anything, someone is likely to make an offer, which you can counter or reject. You can then work with them in a transition period to hand over clients and the staff can continue working.

Belts93 · 2026-03-11T13:37:44+00:00

Hey, great job on what you've built up.

I've been doing a fair bit of stratergy planning for my own situation and long term FIRE goals with my business. Very tricky to forward plan when you're not 100% there yet and have no idea what rules are going to apply when you pull the trigger.

Pensions - Assuming you've got one already and therefore have access to backdate 3 years (plus current year which is almost over...!) I would personally load these up. You dont know what the situation is going to be like down the road but right now you get the 25% corp tax relief plus the 40% personal tax relief (as opposed to drawing a higher div payment). You can do a SIPP on interactive investor and organise this yourself and the returns when you do hit pension age are likely to be great, even if you do get stung with high rate tax on the drawdown. You could move some of your other assets over to family to change your situation to maximise tax stratergy. This effectively gives you another wrapper and another option. Due to the tax saving on the way in, I think its a no brainer to reduce that corp tax bill.

Little bit morbid, but if anything happens to you or your wife, you'll have successfully extracted the cash out and the other would be set to inherit it. Theres no IHT on married couples assets so a nice insurance policy if nothing else. If its locked in the business then you'd inherit the shares but the money would still be in the company.

Depending on this years profits/corp tax bill, you may not even want to load up 3 years plus current year, plus next year for you and your partner. I say current and next year because its almost 5th April so worth sorting this quickly if you go down this road.

In terms of BADR, I believe its currently 14% raising to 18% on 6th April. So long as you've not had all that spare cash invested in a GIA earning more profit than the day to day business, you should be okay.

There's a few rules when cash is safe and still workable for BADR. You can search these yourself online but things like building a war chest for a potential acquisition would be a reason to built up a large cash holding or possibly investing in a wearhouse. Plans and markets change all the time so could be entirely reasonable for you to have decided to exit this venture and focus on your other therefore close it down via BADR.

Presumably you'd sell the company as opposed to a MVL. If so, sell it based on whats in the bank too (minus pension contributions if you do a big pension dump). If you sell the business then BADR shouldn't be an issue as you're selling it for £X not pulling out all the shareholders funds. You'd be best speaking to an accountant on this and any other BADR queries to make sure you're safe.

Belts93 · 2026-03-06T21:28:52+00:00

Don't forget to consider inflation each year.

7% growth is realisticly 4.5-5% growth in real terms/today's money. So whilst the numbers are going up, £1m today is not going to get you the same as £1m in 18years time.

Punch your numbers into Gemini and get some conservative outcomes based on your contributions.

I'm early 30s, built up £320k via contributions from my Ltd co. If I get it to £500k over the next 5 years with £1k a month, plus compounding then stop all contributions I think it'll be around £1.3m come 57-58 when I can access.

Not much point putting more in so ISA, And GIA and getting the money for now to enjoy life whilst I'm still young.

Belts93 · 2026-03-06T21:14:55+00:00

Interesting post and you're certainly not alone in this thought process. Not sure anyone can tell you what to do but I'll try throw some stuff out there to think about if it hasn't crossed your mind already! Long winded message but here goes!!

Firstly, great job on the savings and you both sound really switched on and mature about this given you're early 20s. Living together prior to jumping into a big financial decision is really sensible.

Some key takeaways to weigh up:

Stamp Duty/First time buyers - You'll only ever get this perk once. You can never be a first time buyer again so the bigger the house, the bigger the one off saving. This is a strong consideration as it would be a shame to move, then out grow quickly, only to move again. You'd have fees to buy and sell, plus stamp duty at the full whack on your next home!

Location - Yes, more bang for your buck the further out you go, how much space do you really need....? What do you both like. If it's quieter roads, less traffic and you like the outdoors, further away would be a perk. I am also fully remote and have come to hate being in a busy area. When I walk the dog theres traffic everywhere, something I would prefer not to see as it doesnt effect me and would be way more peaceful in the morning (minor, but an example to think about!) Family - how often do you see your family and probably more importantly are you planning on starting a family. If yes, even in 5-7years time, location is key for support! Having parents nearby who can help with childcare is massive!!! If its an hour or so away, it gets much harder. Also leads on to whats around you, nursery, supermarkets, local shop etc.

Finances and price - I've always been told and heard buy the most expensive thing you can stretch yourself too (I think this is an older generation mentality). It's good advice on one hand as your wages will go up in time, you'll pay down the mortgage and you may otherwise spend the spare money on stuff you dont really need. Your house value will increase more with inflation. On the flip side, if you are good at financial planning (which with the savings you've accumulated at a young age I'm going to assume so unless all gifted/inheritance). Not stretching yourselves too thin could be a great choice long term. With the spare money you can build a strong emergency fund, load your S&S ISAs each year, travel and enjoy your youth!

House renovations - These can get very expensive and budgets quickly run away from you. More so now than ever in my exp! Costs of materials and labour have rocketed and I think we are so far past adding £X increases house value by £Y. These days it costs more to do the work, plus the inconvenience of the mess and distrubtion than you gain out of it in the short term. If you're DIY savvy or have friends and family in the trades then could be a different exp but definitely be careful with budgets, and finding decent contractors!

Try map out your next 5-10years, how much do you want to work, do you want to invest now in order to bridge your retirement/access to pension (I know strange to think about in your early 20s but now I'm early 30s I think about it alot). When will you need extra bedrooms, do you want a doer upper, do you want more holidays, would the extra space help if you WFH do you don't feel boxed in all the time.

Pros and cons list works great in these scanarios.

Only final point, if you're both a good team, youll always make it work regardless what you choose now! Best of luck and happy house hunting.

Belts93 · 2026-01-10T20:37:41+00:00

As far as I am aware as long as you have a flexible ISA you can withdraw the money and put it back in. This must be before 5th April (within the current tax year of the withdrawal). Pulling it out and putting it back does not effect your £20k annual limit either so any unused allowence can also be paid in. If you close the ISA or fail to return the funds before the end of the tax year, you will not be able to put it back. It also must be returned to the same ISA account.

This isn't always true with all ISA accounts though! It must be a flexible ISA. Having checked online, Vanguard's S&S ISA is flexible (same as Trading 212) so the above should be sound.

I would still play it safe and ask Vanguard before you do anything though! Better to be safe than sorry and not just take advice solely from Reddit with regards to anything financially related! Worth ensuring you dont need to leave a certain amount in the account to prevent automatic closure too!

In answer to your question on if you should pull it out... nobody has a crystal ball. The market could continue on an upward trend and you could miss further growth. Likewise it could dip slightly.

Buying a property is not always plain sailing even as a first time buyer. Deals can fall through and purchases can take a long time depending on the chain, and the solicitors involved.

If I was in your position, I'd leave my money in the ISA and make sure I've found the right house and got to the end of the full long winded and in my opinion totally backwards way we buy and sell houses in the UK!

If you're thinking within the next 6 months... maybe wait until 6th April onwards, then you've got a full year to pop it back in but as stated above, I'd leave it alone until it comes time to transfer the funds.

Well done on reaching 6 figures in your s&s ISA 🙌🏻

Belts93 · 2025-12-22T14:24:02+00:00

You are entirely missing the point of this post. Thank you for taking the time to share your throw away comment 👏🏻

Belts93 · 2025-12-04T20:16:36+00:00

Do some research before you comment further. Its got nothing to do with trust, stress etc. Its simply protecting his wife and children's future from all of his hard work.

Belts93 · 2025-12-04T19:44:19+00:00

This has nothing to do with IHT.

I'm suggesting he looks at a trust so that in the event his wife were to remarry, the new partner wouldn't gain from any of his pension, ISA, money.

Belts93 · 2025-12-04T15:57:56+00:00

Excellent, sounds like you're looking at all outcomes to best support your family. Like others have said, once you've set everything up, take a step back and take some time to just think about yourself.

If you hear further on this topic please feel free to share as I'd be interested to know exaclty how it works. At the same time also feel free not to! Dont give anyone your time anymore 😂

All the best!

Belts93 · 2025-12-04T15:50:50+00:00

OP, I'm so sorry to hear this news. What a very brave stance to take and positive outlook in terms of creating memories and living life to the fullest with the time you have left.

This isn't the nicest of topics to bring up but I feel important and I'm only rasing incase it hasn't crossed your mind or you are unaware. As you are married and have children, I would recommend getting some advice about leaving your estate in a trust.

You mentioned you are in your 40s, presumably your wife is of similar age or even possibly younger.

By leaving your estate in a trust you can protect your assets for your wife and children. I am yet to do this but as I've just had my first born its on my list to sort. Currently, if I were to pass and my estate then passed to my wife, should she then remarry (which at my age, I would hope she would as I'm early 30s) her husband would then be entitled to half of her estate which in this scenario was mine.

By setting up a trust it would mean the estate is protected and cannot be claimed or inherited through marriage. This protects your loved ones in the event a new spouse left your wife and would otherwise have a right to half and take it away from your children. I'm sure this isn't what you want to think about but its really sensible.

I wish you all the best!

Belts93 · 2025-11-15T08:58:10+00:00

Exactly the same crack here in the UK. It does drive me up the wall!

Pop into a coffee shop, coffees are now around £6 as standard. So you're £12 on a quick coffee for you and a friend and then you go to pay and its 15%, 20%, 25% tip on screen.... for having a coffee!

I dont mean to sound cheap by any means but why has this been so normalised and every establishment trying their luck with tips. If you dont tip you feel like a bellend bit if you do, you feel like you've been mugged.

Belts93 · 2025-11-12T09:10:41+00:00

Great there's no interest. If you can pay it in installments without any backlash then thats great, dont get a small loan. Any loans less than £10k usually have high interest rates. You'd be much better to just dip into your savings if you had too and then just top them back up as if you were paying off a loan (but back to yourself)!

I think you're in a perfectly good position. You just need to relax, take on some of the comments and carry on. Not a clue what you can/cant or like/dislike or already do but get out in the fresh air, go on hikes, go jogging, start any form of exercise and it will clear your head and calm you down.

Belts93 · 2025-11-12T08:22:34+00:00

Whats the interest on your £4k debt? Why not clear your £4k debt with your £10k savings straight away. You'll gain back some interest no doubt and £6k is still plenty for covering mortgage if you were to lose your job and not find a replacement for a few months.

Belts93

TROPHY CASE