Am I Too Late to Start A F.I.R.E?!

#1

Hello Community - An Older Newbie here. Please be gentle! Not everyone gets on the financial freedom train early… Life happens:

A message to Jeremy:

Dear Sir

First of all, a huge congratulations on your amazing achievement - it’s obviously something you’ve worked very hard for. I only discovered your IG a week ago and I’ve been trying to find time to read all your content.

I hope you don’t mind me reaching out and I know it’s a long shot. I hit 45 this year and didn’t really discover the FIRE movement until a couple years ago. While working for the UK + US gov as a civil servant in England (I’m Anglo American) I also have been a long term primary carer for my mother for the last 10 or so years. A lot of people don’t understand this. But mom made many sacrifices for me after my father (a Vietnam vet) passed away when I was six. So I owe her very much.

Unfortunately, this has led me to a stage in life I feel I’ve missed a chance. With maybe only 20 years left to build up a chance at a comfortable retirement. I mean I’m a post grad, but school, college, government work - they never teach you personal finance Sir would you have any advice or content you could offer a guy like me?

VR

Matt

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#2

Hello Matt, and welcome to the community! I just wanted say what you’re doing for your mother is wonderful and very commendable. I don’t think anyone should hold that against you, no matter the sacrifices I’m sure you’ve made.

While you might have missed being able to F.I.R.E, since the second part stands for retiring early, I think that it certainly is not too late to apply those principles to your life and start taking charge of your money. These include living frugally, budgeting, investing, and overall having a plan for your money. I would highly recommend reading through the front page of Jeremy’s website here. This is a great way to get an idea of where you are at and what you need to do next . Then, if you have any specific questions, like budgeting, let us know! We are here you help.

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#3

Hey Matt!

Twenty years is a long time! Many people can start from scratch and get there in far less. A couple initial homework assignments for you:

  1. Calculate your net worth. You can’t know how to get where you’re going without first knowing where you’re at.
  2. Put your numbers into a retirement investment calculator. Play around with retirement age, contribution, etc.

Once you do those two things, I think you’ll have a better idea of what kind of track you’re on. Feel free to report back and share, and let us know if you have any more specific questions and we may be able to give more specific feedback! :slight_smile:

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#4

Thank you both very much. I will do these things over the next few days… It’s daunting and this community seems pretty advanced, but…, better late than never

VR

Matt

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#5

Nahh… we’re easy going and welcoming! Feel free to ask dumb questions. Others will have the same! You can do it! :slight_smile:

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#6

So you have a great and accomplished Comminuty out there. I am in a challenging situation right now - as mentioned above.

But without Having crunches all the numbers in your awesome calculators yet, but see my situation like this:

  • I have about 20 years to catch up/make a difference.

  • As I’m currently in U.K. everything is in ££££

  • I have one major debt and that’s a 400 per month - stupid car payment.

  • I have about 30k in savings/emergency fund account - this is earning me like 0.1%.

  • I have 10k current or checking account for bills, incidentals.

  • I have worked up an art/design side hustle I can work on while spending time with my mother which brings me in another 200 a month

  • when the time comes, I can use my experience/quals to increase my income.

  • I may also inherit the house in which I will live until I get my ducks in a row. I was thinking of investing in its upgrade and renting (military families are abundant here) or even selling.

All-in-all I could invest around 500 a month. Maybe in the future increase this with higher income, get rid of the car payment. And, sadly, I may have a lump some when the time comes.

I have a civil service pension that’s safe. But, I was hoping to amass an engine room of money to make that retirement a lot more comfortable.

There is an inspiring channel of a family, both adults were on good gov job incomes in the US. They used index funds to grow their kinetic, become millionaires and retire at 39 - they worked 18-20 years I think. Their channel is Our Rich Journey.

Anyway. I feel completely… vulnerable, putting this out there. And ya’ll are like “what the heck has this guy been doing”. But I have to forget about the decisions I’ve made in the past and my current commitment and using these as excuses. Now is the time to do my best with the time I have.

Thank you again for the kind welcome. Any mentorship would be greatly appreciated.

VR

Matt

#7

Hey @matt_interrupted, 20 years is still a good amount of time! Is there any way to get rid of that car payment? How long until this is paid off? It doesn’t sound like you’re in that bad of a spot since you have no other debts. I would say to get rid of that car payment holding you back and increase that income.

#8

I agree with @dgurgan here! If you can focus on and knock out that car payment that can free up money in your income for you to really focus on investing. Plus, if there’s no early payment penalty, you will save money. Another way of doing this would be to sell your car and purchase a cheaper one you can pay for in cash using the money you get from the sale of the car plus some extra. Either is fine and the choice is up to you!

I think you have a really great situation here. I know you feel like you’re late, but know that many people are up to their necks with debt at this stage of their lives and are struggling to fill in the cracks in their foundation. You on the other hand, have a great foundation. You just need to build the house. I would do the net worth calculator and retirement investment calculator Jeremy mentioned above and try to figure out what you need to live the life you want to in retirement. Since you mentioned a pension, I would subtract what you will get from that from your cost of living box in the retirement investment calculator since that portion of your income will be supplemented.

Once you know how much money you think you need for retirement based on what you expect on spending in retirement, we can talk about how you can invest to make that happen!

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#9

Thank You both so much for your encouragement. I will get that car payment taken care of ASAP!

I was focussing on the negative - and I may not have that engine of capital driving wealth right now, but nor do I have much debt.

I will get to that calculator as soon as I can Right now… well, I have very long days right now, but I’ll do it.

I’m looking at a solid first investment fund to help grow what I can and will take the boss’ advice from his Instagram post. It’s a battle on all fronts, that I know- increasing income, decreasing liabilities and investing in assists.

Thank you all for being so supportive. I feel like that Guy Matthew McConaughey played in Dazed and Confused - the oldest guy still in high school!

Anyway, thank you bc again gentlemen…

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#10

Never to late to start. I pissed away my money for 42 yrs of my life with zero savings. My friend taught me how to budget, pay myself first and save at age 42. I discovered FI/RE at age 46 and should be ready for early retirement at age 52. I was able to simultaneously decrease my expenses and increase my salary & side hustles.

Good luck on your journey and enjoy the ride. It’s a lot of sacrifice but if you can strike a good balance, it’s fun.

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#11

Congratulations Marc - that is quite a feat and it gives me hope.

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#12

Well dear friends my story has taken a new chapter. Last Saturday I lost our beloved dog Willow and last Sunday, after spending ten years looking after mom’s health and five nights sleeping on the floor next to mom’s hospital bed, she passed away. The British medical system has a lot to answer for and I’m taking them to court.

Anyway. I may have a little legal wrangling over the will with my estranged sister whom didn’t visit mom in 15 years but did show up just before her passing.

But. I am likely to get moms modest house which I will need to live in for the time being as I gave up my accommodation when I move back to moms town and in to assist her living. I may also be in line for a modest lump some too. God! I hate talking like this.

I will def try to get rid of the car payment. Then it’s just bills/Utilities like anyone else - the car is the only debt.

I would like to take any lump sum, no matter the size and invest in the vanguard S and P 500 U.K. index package. It seems to be giving about 10% average a year. You guys have taught me that you need an investment or asset as the “engine” to generate and drive your wealth.

So I will have my checking account or current account as they call it in the UK for bills and incidentals, an emergency fund (any ideas as to how much? Got about 30k in it and that’s too much) and then I want to start the index fund and contribute regularly.

With the house - it’s a classic 1930s pre war. I don’t want to sell it as it probably needs 20-30k spent time get perfect and will lose a lot on the price. Plus it was my family home. I’m so honking of living there and so it up over the next couple years and RENT it out as we have USAF bases here and so I get to keep appreciating property and a rental income of I can get it up to scratch.

What do you guys think? Marc’s story above really gave me motivation at such a sad time - would love to talk deeper on the strategies you used Marc.

In closing thank you for your support in this forum. Please allow me to go off topic for a second. The beautiful souls in this picture both passed last weekend. My mom was a worrier and fought the doctors whom gave up on her till the end - she was a Vietnam war widow and is now with my dad. Thank you

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#13

Sending you my condolences. I can’t imagine what you must be going through.

It seems like you have a solid plan to get your finances in order. To answer your question, people generally recommend having 3-6 months worth of basic living expenses as an emergency fund (e.g., housing, utilities, healthcare, food). Just consider how long it might take you to find another job in the event that you may be out of work. I keep my emergency fund in a high yield savings account.

#14

Thank you so much for your kind words. And thank you for your feedback. Interest rates in the U.K. are really bad as all over I guess but especially bad. I’ve been lazy and set in my ways and been with one bank for a while so gotta shake it up. I’m kinda old fashioned and didn’t trust new or online banks but if they offer better rates, I’ll be moving my emergency funds.

Thanks again. Much love.

#15

I’m so sorry for your loss Matt. Hang in there. Don’t make any drastic financial decisions right now. It’s ok to mourn your loss for a few months without worrying about money.

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#16

My condolences, Matt. Take your time & whenever you are ready, everyone here in this community is ready to to help / support you. The FI community is an awesome group of folks.

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#17

Thank you for compassion sirs, it means a lot right now… This community is awesome. :pray:t2:

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