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Can Live On £10,000 Today


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Yup, sounds as though you're thinking like me. My outgoings don't include water rates, I forgot about that one, but my car & house are new so I don't worry about those, I get phone & broadband paid for by work etc. However I look at it I can't get it to £300 (which surprises me too).

The pension part you mention is in my mind too, & to be honest I do want to enjoy later life (mainly travelling) so when push comes to shove I might carry on working for a few more years. In terms of the OP, I could live on £10k p.a. today but only if I gave up all the traveling I do, and without that I would be unhappy. Of course, if I meet a lady then all of this is out the window & I'll be working until 70 at least ...

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Yup, sounds as though you're thinking like me. My outgoings don't include water rates, I forgot about that one, but my car & house are new so I don't worry about those, I get phone & broadband paid for by work etc. However I look at it I can't get it to £300 (which surprises me too).

The pension part you mention is in my mind too, & to be honest I do want to enjoy later life (mainly travelling) so when push comes to shove I might carry on working for a few more years. In terms of the OP, I could live on £10k p.a. today but only if I gave up all the traveling I do, and without that I would be unhappy. Of course, if I meet a lady then all of this is out the window & I'll be working until 70 at least ...

...unless both had £10k each to live on, both could then retire earlier and travel more often out of season. ;)

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The pension part you mention is in my mind too, & to be honest I do want to enjoy later life (mainly travelling) so when push comes to shove I might carry on working for a few more years. In terms of the OP, I could live on £10k p.a. today but only if I gave up all the traveling I do, and without that I would be unhappy. Of course, if I meet a lady then all of this is out the window & I'll be working until 70 at least ...

I took early retirement last year aged 55. I wish I'd been braver and retired when I was 50, but I was scared of running out of money. I've been surprised at how little it costs to live (okay, I am mortgage free), and how much I enjoy the freedom.

The only regret is that future generations are unlikely to get the same option, but if there had been a sustained programme of building 300k houses a year (as this country managed to do in the 1930's) then future generations may well have had that option. Instead it looks like the unspeakably selfish NIMBYs have won.

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I can easily live on £150 a week but prefer £250.My house is now paid for (im 42).I worked until 30 then took a redundancy and had 4 years off.I then went back to work but was sick of being laid off and all the crap that goes with being employed so i left and set up myself an online business 3 years ago.I work probably 8 hours a week and 3 times a year have to graft hard for 4 hours.

I make a good income but only spend around the £200 a week mark.The rest i allow to build up.I have a £400 a month final salary pension at 55 and another £100 at 60.

Im not sure how long what im doing now will last so im banking everything over the minimum into income ISA funds in Asia,etc.

Once i can get another £300 a month income i know then im fine.Il keep the business going as long as possible as just over an hour a day on average id be mad not to.

One thing im certain of.Il never work for anyone else again.Il never work more than a few hours a week.Il never bust a gut to pay tax to the government to hand out.

The big thing is a house.Once ones paid for its pretty easy to live on £150-£250 a week and have a great lifestyle if your good at cooking etc and your hobbies arent too expensive.Mine are astronomy so free once you have the kit and fishing,my permit is £35 a year so nearly free.

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silver Surfer - Interesting, maybe I shouldn't put it off too much then, mate :)

Durhamborn - That's a good point, some of my hobbies are a bit expensive, but I doubt I'll do too much mountain biking or motorbiking after I'm 50. Though I'll still probably buy gadgets I have absolutely no use for (Tablets? Useless things).

As the OP intimates, it's a bit of a guessing game, this!

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This thread is getting spooky, I own my home & have £250k in the bank; I'm currently trying to work out how soon I can retire (I'm 42).

My outgoings (including Council Tax & motoring, not including food or fun things) are £257 per month; my income from interest alone is £527 (though that bond expires next year) and my salary is substantial. I reckon I'll do three more years then jack it in, downsize my house & have around £400k to live on. Given the unhealthy lifestyle I lead that'll do me & if I surprise myself & reach 60 there's always Sainsbury's for pocket money.

Oh, and yes, I'm single with no kids.

This is a good informative blog about early retirement http://www.retirementinvestingtoday.com/2013/06/a-simple-low-expense-low-tax-investment.html

The guy who runs the site posts on here as 'wish i could afford one'

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Another one here who is on the verge of quitting. Drafted a resignation letter last week - went to save it and found two other drafts dating back almost four years!

My thresholds (family of four, house paid for) are:

Bare subsidence 1600pm (food on table, bills paid but no cars or luxuries)

Sustainable minimalism 2000pm (could run a car or take a holiday)

Comfortable 2300pm (this was my target figure initially)

Luxury 3000pm (in my year or two of letting rip, this was as much as my frugal soul could manage)

Am currently just under "sustainable minimalism " by regarding 80% of dividends as income and 20% as a safety factor to reinvest. However, Mrs Bloke has a job she enjoys and we have a couple of pensions that should pay a total of circa 24k in today's money in twenty years time. In theory we could spend capital rather than just take divis -but that would pain the inner miser to much. And we could downsize the house. A lot.just need to grow a pair and print the damned letter!

In answer to the Op; if it were just me and no family or outsized house then 10k exc housing would be easy.

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The pension part you mention is in my mind too, & to be honest I do want to enjoy later life (mainly travelling) so when push comes to shove I might carry on working for a few more years.

I completely dismissed pensions, until my late 30's, then realised if I didn't get my act together I'd be working until my 60's+. I deliberately targetted a job in a corporate with a final salary pension scheme (private before anyone starts on one). Danger here is towards the end game, each extra year massively ramps up your pension, so it's a balancing act between having enough money and not selling too many more years of your soul to "The Firm".

I took early retirement last year aged 55. I wish I'd been braver and retired when I was 50, but I was scared of running out of money. I've been surprised at how little it costs to live (okay, I am mortgage free), and how much I enjoy the freedom.

Currently scared.

This is a good informative blog about early retirement http://www.retiremen...investment.html

The guy who runs the site posts on here as 'wish i could afford one'

Will check it out. This guy is great, he went in his early 50's. Great writing style. http://simple-living-in-suffolk.co.uk/

Early Retirement Extreme Blog - http://earlyretirementextreme.com/ It is exactly that, Extreme. I believe Jacob who writes this has gone back to voluntary part time work now. Scrolling down on the left his 21 Day Makeover had given me some ideas int he past. Some are ridiculous though, like getting rid of the mobile, sure you can make it cheaper, but having no mobile to me is stupid, unless you're ok with dying un-necessarily or being stranded in a snow drift. Best watered down to fit your lifestyle. Also this was partly written in the days when decent interest rates existed, and RV living in the States is more viable than here. I think the best thing I learnt from this is buy the most expensive classic gear, but buy second hand. Consequently the things I own are high quality, but bought cheap. Like the £7,000 retail priced sofa sitting in my front room (bought from E-bay for £50), or the designer clothes wardrobe that I paid less for than someone that shops in Primark. I don't give a crap about labels or how much something is "worth", I want stuff that looks good and lasts, which in the long run is cheaper than buying cheap gear and gets to my retirement goal quicker. Limiting consumerism, without feeling you're ever compromising or missing out is a good feeling.

Edited by Starla
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According to this £10k in 2002 in 2012 money is £13776.43....inflation increase of 3.2% per year.

If only house prices had increased at the same rate over the same period of time.......that does not mean in the next 10 years inflation or house price inflation will follow......can wage increases afford it?, can the public sector afford it?....will the private sector pay it? not if they don't have to, or can help it.....one thing that will bring down HPI is below inflation wage rises so be it.....

So £10k all being equal (I think less) will be ~ £13700 required to buy the same. ;)

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silver Surfer - Interesting, maybe I shouldn't put it off too much then, mate :)

Durhamborn - That's a good point, some of my hobbies are a bit expensive, but I doubt I'll do too much mountain biking or motorbiking after I'm 50. Though I'll still probably buy gadgets I have absolutely no use for (Tablets? Useless things).

As the OP intimates, it's a bit of a guessing game, this!

So many things to consider.....a viable, workable plan comes top....once you have reduced or repaid debt there are far more choices open to you. If you are the sort of practical person that can do many things for yourself such as decorating, fixing things, mending, cooking, gardening and living a simple but healthy life, loves the outdoors and nature, can make friends easily and can join in a mix with the local community and clubs, activities and takes an interest by doing voluntary work, networking, etc.....what have you got to lose. I would say to anyone, your job does not need you, someone can and will always replace anyone.....take the plunge, there is always something out there to do, with skills and lifetime experience learned throughout a lifetime of working 25, 30 to 40 years......what have you got to lose, so much to gain, so many hours to fill, people to meet, places to go, doing what you want not what a boss wants....you are now the boss. ;)

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Another thing is how much you can save.Today as it was a nice day i decided to service mine and my partners cars.

2 x oil,2 x fuel filters,2 x oil filters,2 x air filters.Cost £54 the lot and 2 hours.

A garage would of charged roughly £220-£240 for the two to be serviced.

Popped up the allotment and got some lovely fresh veg (sprouts,onions and leeks) and 6 free eggs from the old boy in the next garden in exchange for some leeks.

It really is amazing how much you save when not working full time.Cooking alone saves a fortune.As does fixing/servicing things yourself.Even if your not handy almost every job has a tutorial on Youtube.

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If only house prices had increased at the same rate over the same period of time.......

Hmmm. 2002-2012. That's 2/3 years (2002-4) of rampant HPI, another 3/4 of hype but little action, a spell of HPC (2008-9), then a spell of drifting. I'm not convinced house prices in aggregate have exceeded inflation: certainly not for those of us distant from London.

HPI comes in bursts. It's vicious when it happens, but it's not a constant over every time period. And 2002 was already well advanced on the last burst of it.

Edited by porca misèria
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It really is amazing how much you save when not working full time.Cooking alone saves a fortune.As does fixing/servicing things yourself.Even if your not handy almost every job has a tutorial on Youtube.

I never let working stop me cooking :o

Well, except lunchtime. Working from home certainly helps reduce the cost of lunch :)

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You can live off 10k a year with no mortgage costs, including paying for bills and something put aside for general maintenance. If you started with 250k in the bank, and use a crude calculation of 3% per annum inflation and 3% per annum interest rate (taxed), that would last you about 20 years and you'll be out of cash. Inflation is killer.

Of course if you have a partner or are married that 10k per year is more like 7k per year each providing you are not married to a spender. Your example is one reason the state pension is so important for those who want to benefit from their life savings because once that kicks in the savings become an extra as opposed to a disqualification from benefits.

For sure I have a lifetime disqualification from welfare ( state pension excepted), so I am just hoping that the moving state pension age doesn't just keep moving, otherwise the life savings may end up saving the Government welfare at some stage.

Edited by crashmonitor
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Your example is one reason the state pension is so important for those who want to benefit from their life savings because once that kicks in the savings become an extra as opposed to a disqualification from benefits.

For sure I have a lifetime disqualification from welfare ( state pension excepted), so I am just hoping that the moving state pension age doesn't just keep moving, otherwise the life savings may end up saving the Government welfare at some stage.

I've calculated for a situation where my private pension income will keep me going for life, regardless of whether the State Pension exists in 20 years. The State Pension is a bonus, and one that will massively help those relying on savings drawdowns and keep the funds going a lot longer.

I won't rely on cash savings at all for income, and plough any cash into buying a property outright. I had considered using the cash as a "rent for life" fund, but Inflation bothers me too much. Not the inflation figures the government give us, but the real inflation figure on food, housing, utilities, fuel etc. Also as you point out, holding too much cash disqualifies you from certain benefits.

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