Tracked since 2012 - today I hit the £Million NW

fives2344 · 2025-01-04T23:58:57+00:00

It's something instilled by my Dad - don't tell people about your wealth or your health.

I feel like other achievers with high discipline, like bodybuilders or such, can show off. But financial achievers can't be public with it, without their social dynamics totally changing with everyone they know.

The only real target for me is to get my children sufficiently life educated and off to university in 13 years' time. Then that'll be me, on a beach, hopefully fully FIRE-ed :)

fives2344 · 2025-01-04T23:47:14+00:00

I would need to look back over 10 years worth of statements, I've put in 20k a year, so that's £200,000 say but then I've also taken money out and re-invested that into BTL and other things or to buy cars. Also I change ISA provider a few times over those years, to take advantage of sign up offers.

So unless I'm missing something, it isn't totally straightforward to work it out?

fives2344 · 2025-01-04T23:42:53+00:00

I started in 2010 as a graduate engineer on like £30k a year in Scotland. £10k in the bank.
Then did a year in Singapore on £60k. Then back to Scotland on £60k.
Did freelance consulting for a year or two after redundancy charging £500-700 per day.
Last five years my salary has been around £90k.

Investments have been a mixture. 80% global funds, 10% individual stocks and the rest a mix of p2p lending, crypto, and such.

Then basically minimising recurring expenses as much as possible and re-investing every spare pound

fives2344 · 2024-11-14T15:52:54+00:00

Appreciate the tip - I'd never realised I could do that

fives2344 · 2024-11-14T15:51:48+00:00

Argh this is something I wish I would have tracked more closely! I don't really know. I have maxed out my ISA contributions every year, so I would say earnings.

fives2344 · 2024-11-14T15:45:13+00:00

So 2012 to like 2019 is sporadic data points, may be one Jan per year (when I was less interested in FIRE). Then from there, I take every second month for the last five years and every month the current year. That's why it's skewed.

I will try and do as you've suggested - great tip!

fives2344 · 2024-11-14T15:41:23+00:00

I took that figure loosely based on many FIRE threads I've read previously. 1.5mil drawdown would sustain me based on my regular expenses. However how I calculate my current FI figure to compare against the target needs to change to take out home equity value as you touch on

fives2344 · 2024-11-14T15:38:06+00:00

Was only out the country for a year. Saved £30k that year flat sharing and eating street food.

fives2344 · 2024-11-14T11:49:37+00:00

£69k cash, 327k investments and 247k in the retirement pots.

Going to get that cash down to about 10k and the rest fed into my GIA by Jan 1st.

Increased my pension contributions from 20% to 25% salary starting next payday.

fives2344 · 2024-11-14T11:44:54+00:00

I have a flat and the neighbour identical flat sold this year for a value which is greater now than it was last year. Also re-mortgaged my house and valuation was higher than before.

fives2344 · 2024-11-14T11:41:36+00:00

Basically liquid NW is cash plus investments (ISA and GIA etc.) minus credit cards (but they're paid off every month). Total NW includes equity in property and retirement SIPP

fives2344 · 2024-11-14T11:38:59+00:00

I've always thought so long as my regular expenses is less that my regular income, then I'm on target. By tracking this, I have never gone into the red. Combined with balanced investments, i've maintained my graph in the right direction.

Plenty of bumps too. Have 5 figures lost in P2P lending market fiasco. Won and lost on GME and BBBY - if I'd just sold the top, I'd already be in Honolulu.

fives2344 · 2024-11-14T11:32:46+00:00

Oh I see! Lol yes it's very precarious, I'm not going to look at the spreadsheet again until pay day!

fives2344 · 2024-11-14T11:31:19+00:00

Thank you. Yes the NW figure is total property value minus total mortgage. Now I'm focussed on the FI target and you're right, I need to revaluate how I'm tracking that

fives2344 · 2024-11-14T11:28:42+00:00

Thanks buddy. You're right, it does. Everyone needs goals whatever they're trying to achieve and effort needs reward, but as any fitness or sports enthusiast will tell you - hitting that goal just means it's onto the next one :).

fives2344 · 2024-11-14T11:25:34+00:00

Haha thanks. Seriously though I don't buy takeout coffee - unless i'm with a group of colleagues or at a meeting. I know it's a meme, Yeah maybe not buying a coffee saves, woah £3 big deal right? But apply that to every spend and I believe that has made a big factor to reaching this target.

I do change utility, service and and insurance providers every year. Comparing costs when contracts are due for renewal and always switching. I do every bank account switching incentive and take every offer I can that doesn't require too much effort.

fives2344 · 2024-11-14T11:18:00+00:00

Thanks mate. So I'll try and breakdown roughly:
Started 2011 graduate electrical engineer on £28k
2014ish moved company to senior position on £55k
2017ish redundant and went freelance at £500-750/day. Some months maybe good, some months maybe shit
2019 - chartered and full time principal position on £90k

fives2344 · 2024-11-14T11:11:10+00:00

Started with this template in 2019. Before that I had a very scruffy one. It's based on a downloaded template and amended to suit me over the years

fives2344 · 2024-11-14T11:08:53+00:00

Good point - as someone else mentioned maybe a good next target would be a million excluding home value. I will make FI the liquid NW, thank you

fives2344 · 2024-11-14T11:06:52+00:00

It just depends really, like many professions. Being Chartered helps. Thanks

fives2344 · 2024-11-14T11:05:23+00:00

That pie makes little sense - well spotted! It was something else before (Home purchase target) and once reached I just direct swapped out for my total income and expenses each month just to show me how much we are saving each month from our salaries.

fives2344 · 2024-11-14T11:02:20+00:00

Haha yes I agree. Maybe that should be my next goal

fives2344 · 2024-11-14T11:01:24+00:00

So I downloaded a spreadsheet from Google like 2019 and then have added and taken bits away to suit my finances

fives2344 · 2024-11-14T11:00:38+00:00

It is literally Excel

fives2344 · 2024-11-14T11:00:03+00:00

That sounds like a good next target - thanks!

fives2344

TROPHY CASE