How To Become A Millionaire – My Route


Who wants to be a Millionaire? Do you? I have a confession to make, I would like to become one.


Why a Millionaire? 

Regular readers of this Blog will be aware that I’m pursuing Financial Independence (FI) before my 40th birthday. I’ve written numerous posts on wanting an income from my investments that will cover my monthly expenses. If I’m able to achieve that I’ll be free to make the decision on how I want to spend my time rather than feeling obligated to work a 9-5 job. 

I don’t seek fast cars, expensive watches, or lavish lifestyles, so why do I want to become a millionaire? Isn’t that excessive?

For me, it’s quite simply a mark of achievement. It’s a milestone which I would be immensely proud of reaching. I acknowledge that the amount isn’t something that I need, but I’m drawn into the challenge of getting there. 

It’s a similar question to why do people want to Climb Everest, or complete the Marathon des Sables? What’s wrong with the climbing Scafell Pike in the Lake District, or running the London Marathon? There isn’t anything wrong with either option, but most human beings can climb Scarfell Pike or complete a marathon with a few months of training or in some cases little to none at all. For someone on my salary (approx £30k or $47k a year) in order to get £1m, I will have to dedicate a lot of time, effort and avoid the temptations of consumer spending. Most people aren’t able to manage this. I want to know – Can I?

I have two main passions in life – Exercise and Personal Finance. I can see a lot of similarities in the two subjects. I’m mainly attracted to the challenge they represent, and the addictive pursuit of progression in both fields. (I fully confess to having a compulsive personality. I’m constantly obsessing about something)

I have some physical goals which I’ve eluded to before – such as a 200kg Back Squat, 15 consecutive Muscle Ups and running a 4:59 mile to name a few. These aren’t world records, nor are they unachievable for most humans, but many people will never have the determination and self-discipline required to practice them until they can be achieved. Actually, If I’m able to achieve all three of these examples at the same time, I’d be a rare human indeed and I would take massive satisfaction within myself for these feats.

I believe that having £1m represents a huge accomplishment in the world of personal finance, and I want to know if I have the strength of character to achieve it. 

Priorities & The Road to FI

My route to £1m is a long term goal, and not one I’m focusing on right now. My attention is currently on increasing my Freedom Fund up to £50,000 by the end of 2015. Once I’ve reached this amount, I’ll create another stepping stone until I hit that, then I’ll create another one etc. Ill repeat this process until I reach a portfolio worth £250,000. At this point, if my investment income is yielding 4%, I’ll be receiving £10,000 a year. You can see from my Monthly Budgets that this amount would cover my annual expenses and I’d be officially FI!



How I can become a Millionaire in less than 20 years and FI under 8 years

I recently spent one afternoon reading though other Blogs and I stumbled across an interesting post by The Escape Artist. In this post he explains that many people believe it’s impossible to achieve FI, but they shouldn’t be so deterred as the maths behind it is very simple. He displays a table to show how anyone on £15k a year (after tax) can become FI in 20 years and this got me thinking (oh no!). 

I wonder how I’m currently tracking towards FI based on my situation this year. I decided to make my own table and see for myself. I made some tweaks and I based my numbers on the following assumptions:

  1. My salary after tax would only include income from my current job. I won’t be factoring in Ebay, P2P lending or Topcashback etc. 
  2. My salary would increase by 3% every year.
  3. My spending would remain in line with what I’ve spent this year. It won’t go up or down over the years. 
  4. My annual saving would be calculated by whatever’s left over, and would not include any cash savings (this figure isn’t in line with my current saving %).
  5. My investments would yield a constant 5% income, which I would reinvest. For simplicity, I haven’t included charges or commission for investments made.


Salary Only £21,837
Spending £9,900
Initial Saving rate 55%
Salary Growth 3%
Investment returns 5%
Year Salary After Tax Annual Spending Annual Saving Saving rate (%) Portfolio Before Income Investment return Portfolio After Income
1 £21,837 £9,900.00 £12,010 55 £12,010.00 £600.50 £12,610.50
2 £22,492 £9,900.00 £12,592 56 £25,202.61 £1,260.13 £26,462.74
3 £23,167 £9,900.00 £13,267 57 £39,729.61 £1,986.48 £41,716.09
4 £23,862 £9,900.00 £13,962 59 £55,677.97 £2,783.90 £58,461.87
5 £24,578 £9,900.00 £14,678 60 £73,139.61 £3,656.98 £76,796.59
6 £25,315 £9,900.00 £15,415 61 £92,211.66 £4,610.58 £96,822.24
7 £26,075 £9,900.00 £16,175 62 £112,996.76 £5,649.84 £118,646.60
8 £26,857 £9,900.00 £16,957 63 £135,603.35 £6,780.17 £142,383.52
9 £27,662 £9,900.00 £17,762 64 £160,145.98 £8,007.30 £168,153.28
10 £28,492 £9,900.00 £18,592 65 £186,745.61 £9,337.28 £196,082.89
11 £29,347 £9,900.00 £19,447 66 £215,529.99 £10,776.50 £226,306.49
12 £30,228 £9,900.00 £20,328 67 £246,634.01 £12,331.70 £258,965.71
13 £31,134 £9,900.00 £21,234 68 £280,200.05 £14,010.00 £294,210.05
14 £32,068 £9,900.00 £22,168 69 £316,378.42 £15,818.92 £332,197.34
15 £33,030 £9,900.00 £23,130 70 £355,327.76 £17,766.39 £373,094.15
16 £34,021 £9,900.00 £24,121 71 £397,215.49 £19,860.77 £417,076.26
17 £35,042 £9,900.00 £25,142 72 £442,218.24 £22,110.91 £464,329.15
18 £36,093 £9,900.00 £26,193 73 £490,522.38 £24,526.12 £515,048.50
19 £37,176 £9,900.00 £27,276 73 £542,324.53 £27,116.23 £569,440.76
20 £38,291 £9,900.00 £28,391 74 £597,832.07 £29,891.60 £627,723.67



The green line signifies when the income from my investments cover the cost of my spending (FI). The yellow line is the point where my investment income matches my salary in Year 1. 

These numbers suggest I’d cover my expenses in 11 years, and match my initial income in 17 years. Not bad……

The figures I used in the table above were very conservative and turned out being slightly unrealistic. I think I can do much better than this.

My income was higher this year due to my ‘side hustles’. I would continue making extra money outside of my salary so why not include that. My salary has also increased more than 3% over the last 4 years, I looked back over this period and was surprised to see that it had increased over 12% on average each year! I’m not sure how sustainable this will be so I went with 6%. I updated the table with a new starting salary after tax and I increased the annual salary increase to get the following results.

Salary Only £25,338
Spending £9,900
Initial Saving rate 61%
Salary Growth 6%
Investment returns 5%



Year Salary After Tax Annual Spending Annual Saving Saving rate (%) Portfolio Before Income Investment return Portfolio After Income
1 £25,338 £9,900.00 £15,438 61 £12,010.00 £600.50 £12,610.50
2 £26,858 £9,900.00 £16,958 63 £29,568.78 £1,478.44 £31,047.22
3 £28,470 £9,900.00 £18,570 65 £49,617.00 £2,480.85 £52,097.85
4 £30,178 £9,900.00 £20,278 67 £72,375.81 £3,618.79 £75,994.60
5 £31,989 £9,900.00 £22,089 69 £98,083.24 £4,904.16 £102,987.40
6 £33,908 £9,900.00 £24,008 71 £126,995.36 £6,349.77 £133,345.13
7 £35,942 £9,900.00 £26,042 72 £159,387.57 £7,969.38 £167,356.95
8 £38,099 £9,900.00 £28,199 74 £195,555.93 £9,777.80 £205,333.73
9 £40,385 £9,900.00 £30,485 75 £235,818.65 £11,790.93 £247,609.58
10 £42,808 £9,900.00 £32,908 77 £280,517.60 £14,025.88 £294,543.48
11 £45,376 £9,900.00 £35,476 78 £330,019.98 £16,501.00 £346,520.98
12 £48,099 £9,900.00 £38,199 79 £384,720.07 £19,236.00 £403,956.07
13 £50,985 £9,900.00 £41,085 81 £445,041.10 £22,252.06 £467,293.16
14 £54,044 £9,900.00 £44,144 82 £511,437.29 £25,571.86 £537,009.16
15 £57,287 £9,900.00 £47,387 83 £584,395.94 £29,219.80 £613,615.74
16 £60,724 £9,900.00 £50,824 84 £664,439.73 £33,221.99 £697,661.72
17 £64,367 £9,900.00 £54,467 85 £752,129.15 £37,606.46 £789,735.61
18 £68,229 £9,900.00 £58,329 85 £848,065.08 £42,403.25 £890,468.34
19 £72,323 £9,900.00 £62,423 86 £952,891.58 £47,644.58 £1,000,536.16
20 £76,663 £9,900.00 £66,763 87 £1,067,298.80 £53,364.94 £1,120,663.74



The second table looked a little better now, and I feel it’s a more realistic too. I’ve reduced the time to FI to under 9 years (8 years and 1 month), which is bang on target for my goal of FI by 40. 

I’m able to match my initial income in 14 years, and I couldn’t help but notice the portfolio numbers in year 19 and 20. Hello six figures!

The table is evidence that if I continued on investing in the same fashion I could go on to become a millionaire in 19 years. 

I still couldn’t resist playing around a little bit more with my new favourite toy. The results above were encouraging, but there were still two categories that I could review – An annual decrease in expenses and my investment return. 

Miss FFBF and I will be planning on overpaying the mortgage over the next 5 years. We’re doing it to an extreme level, but we want to make sure we’re making annual overpayments to bring the total term of the mortgage down. It’s currently on 18 years, and we would like to pay it off in 9-12 years. This will impact our expenses more than any other factor. 

If I eliminated the mortgage from my expenses, and just paid house bills, my annual expenses would be under £5,500 (£5,484). 

The last category I wanted to play around with was investment yield. I have some degree of control in this area when it comes to stock selection, and when to buy and sell. The stock market is an unpredictable beast though, so having any one figure is unrealistic, but for the purpose of this table I don’t think it’s beyond my ability as an investor to average a 7% yield over 20 years. When you look at the yields produced in Vanguard Index Trackers over the last 5 years you can see some far higher numbers and I would like to think that I can outperform it in the long run.  

My final table kept the assumptions from table 2, and I added an annual decrease in Salary of 5% (This accounted for me having no mortgage in 14 years – Conservative), and I increased the investment returns to 7%.

Salary Only £25,338
Spending £9,900
Initial Saving rate 61%
Expenses Decrease 5%
Salary Growth 6%
Investment returns 7%



Year Salary After Tax Annual Spending Annual Saving Saving rate (%) Portfolio Before Income Investment return Portfolio After Income
1 £25,338 £9,900.00 £15,438 61 £12,010.00 £840.70 £12,850.70
2 £26,858 £9,405.00 £17,453 65 £30,303.98 £2,121.28 £32,425.26
3 £28,470 £8,934.75 £19,535 69 £51,960.29 £3,637.22 £55,597.51
4 £30,178 £8,488.01 £21,690 72 £77,287.46 £5,410.12 £82,697.58
5 £31,989 £8,063.61 £23,925 75 £106,622.61 £7,463.58 £114,086.19
6 £33,908 £7,660.43 £26,248 77 £140,333.72 £9,823.36 £150,157.08
7 £35,942 £7,277.41 £28,665 80 £178,822.11 £12,517.55 £191,339.65
8 £38,099 £6,913.54 £31,185 82 £222,525.10 £15,576.76 £238,101.85
9 £40,385 £6,567.86 £33,817 84 £271,918.92 £19,034.32 £290,953.24
10 £42,808 £6,239.47 £36,569 85 £327,521.79 £22,926.53 £350,448.31
11 £45,376 £5,927.50 £39,449 87 £389,897.32 £27,292.81 £417,190.13
12 £48,099 £5,631.12 £42,468 88 £459,658.10 £32,176.07 £491,834.16
13 £50,985 £5,349.56 £45,635 90 £537,469.63 £37,622.87 £575,092.51
14 £54,044 £5,082.09 £48,962 91 £624,054.56 £43,683.82 £667,738.38
15 £57,287 £4,827.98 £52,459 92 £720,197.18 £50,413.80 £770,610.98
16 £60,724 £4,586.58 £56,137 92 £826,748.39 £57,872.39 £884,620.78
17 £64,367 £4,357.25 £60,010 93 £944,630.95 £66,124.17 £1,010,755.12
18 £68,229 £4,139.39 £64,090 94 £1,074,845.20 £75,239.16 £1,150,084.37
19 £72,323 £3,932.42 £68,391 95 £1,218,475.19 £85,293.26 £1,303,768.46
20 £76,663 £3,735.80 £72,927 95 £1,376,695.30 £96,368.67 £1,473,063.97




The table suggests I could be FI in 6 years as my expenses are decreasing. I could match my initial salary in 11 years, and I could have almost £1.5m in 20 years. 

C’mon, how likely is any of this!

The truth is, I have no idea. I can’t predict the future.

What it does show is a clear path to the possibility of what can happen. It provides hope! If I’m able to keep within a certain set of parameters I will be able to become a millionaire in less than 20 years and I CAN become FI in less than 8 years. The numbers are undeniable. 

There are some columns that I can impact more than others, and what really excites me is the outcome to numerous improvements. For example, If I increased my investment return from 5% to 7%, the numbers would look very different. 
If I increased my investment return, while decreasing my expenses annually by 5%, it would jump to another level. 
If I increased my income annually by more than 10%, decreased my expenses by more than 5% a year, and created a yield over 7%………. Well, my life would never be the same again.

I’m not planning on living and dying by these numbers. I’m just going to assess my results to them from time to time to see how they compare. When I’m finding frugality hard, or questioning why I’m on this path, these results will provide a healthy reminder to the possibility of what can happen if I continue over time. 


Finances after FI

There’s one more factor I want to consider before wrapping up this post, and that’s what my personal finances will be like when I become FI. 

I’m approximately 8 years away from this stage of my life, and there’s still a huge amount of time for things to happen. I’m not sure if I’m going to quit my job immediately, go down to part time hours or whether I’ll be making an income doing something completely different. I don’t intend on giving it much thought right now, but it does raise an interesting point on how I plan to save/spend/invest once I become FI.

Looking at the numbers in all three tables it suggests that I’ll continue to save and invest all of the money I’m not spending. I’m not sure in reality if this will happen, but I feel certain that I will continue to invest at a high percentage once I reach this point. I just don’t know how aggressive it’ll be at that point. 

You can also see in all of the tables that the compound interest really kicks in after 10 years, and I believe it’ll be one of my closest allies to achieving the 7 digits. It’s one of the few factors that’s guaranteed to happen over time. If I do loose some enthusiasm to save hard as I get older, I think the compounded interest will help make up for that.


Summary

Who knows what numbers I’ll have for Income, Expenses and Investing in the future. I can’t help but find the possibilities of it all intensely exciting and motivating.

I hope some of you can get some comfort or motivation from looking at the data above. Feel free to copy the tables and play around with it yourself. 

What will your portfolio look like in 20 years if you carry on with your current numbers? What will it look like if you play around with some of the columns?

Whatever happens I wish you the very best of luck, and I hope I’m still writing about it when the time comes. Thank you all for reading!


Do you want to be a millionaire? How realistic are these numbers to you? How confident are you of reaching your financial goals?

19 Comments

  • Under The Money Tree

    Reply Reply 27th November 2014

    Hi,

    Nice post FFBF. I've got few observations if I may:

    Expenses – I'm in awe of your minimal spending/low expenses. I'd like to hear some more about how you keep these numbers down, I'm sure I could learn a few things!

    Inflation – Don't forget it. Your £9k expenses today will not be £9k in 20 years time. For example £9,000 20 years ago would be the equivilant to £16,000 today. In your calcs your 'inflating' your investments but keeping your expenses static. As you say these kind of calcs ccan never be perfect but i think you should definitly apply some annual increases.

    Tax – Will all of your investment returns be sheltered form tax (i.e. in ISAs)?

    Keep up the good work!

    UTMT

  • Tawcan

    Reply Reply 27th November 2014

    Great post, the important thing is that you have a plan and you're executing the plan. Nobody knows about the future and can predict the future, all we can do is continue executing the plan.

    One thing I want to point out is you need to take inflation into account on your expenses. Another to consider is what if you decided to get married and have kids? How would that alter your plan?

  • Huw Davies

    Reply Reply 27th November 2014

    Hi UTMT,

    I hope you're well!

    Thank you very much for the kind words and for sharing some observations.

    Expenses – That's nice of you to say. I think this is the area where I feel most at home. I share my expenses with everyone each month, and I don't hide anything. Are there any areas within my expenses that you feel stand out as particularly low?
    I've spent time analysing every single item I spend money on, and questioned if I'm happy with that and if there is any way to make it lower. I'm running out of areas to reduce, but I think the next big one is the mortgage. Please let me know if you'd like me to discuss a particular topic. I'd be more than happy to explain my processes.
    It's also worth mentioning that I live in Herefordshire which is a cheaper place to live than a lot of places in the UK.

    Inflation – It's a great point and it will definitely impact the total figures at the end. Even more so than the commission and charges would, which I also left out. A millionaire in the future will not mean what it does today, and I'm sure there will be a higher percentage within the country in 20 years time. A very fair point!

    Tax – The priority will be to maximise the NISA allocation, then I'll continue to fill a taxable share account as an overflow. I won't be taxed on that account on the first £11k based on the capital gains tax for this year, which would still get me to FI. I think I'm a long way from filling this account to those levels. Filling up the NISA will be enough of a challenge for me for the time being.

    Thanks again for sharing your thoughts.

    All the best!
    Huw

  • Huw Davies

    Reply Reply 27th November 2014

    Hi Tawcan,

    You're absolutely right. A plan is very important as is the intention to execute it. Like a lot of things in life, things happen. I have to be prepared to be flexible and roll with the punches as I'm sure this route won't be plain sailing.

    I agree with your point on inflation, prices are going to go up. I tried to simplify the whole process so people can see how achievable it is. In reality there are a few holes that could be poked in the tables.

    I'm hoping to marry Miss FFBF in 2016. That will change very little as it will be a register office one as neither of us want to spend the money or to have that type of attention, especially Miss FFBF! Who knows what will happen with children. We're not planning anything, but I know that argument stands for very little! If we did have children I only see us having one. I would love the challenge of keeping the cost down of children, but I would have to go back to the drawing board and reassess what was possible. It would not stop me working towards FI, if anything it would spur me on to get there faster.

    Thanks again for stopping by.
    Huw

  • diy investor (UK)

    Reply Reply 27th November 2014

    Some interesting analysis and plenty of food for thought.

    Just one observation – have you made any adjustment for the effects of reinvestment of dividend income? If not, it may be worth some further calculations as your milestone million may arrive even sooner!

    Good luck with the investing journey.

  • Huw Davies

    Reply Reply 27th November 2014

    Thanks DIY Investor UK.

    All three tables have been based on the assumption that the income earned with be reinvested. I've represented this by adding the income directly on top of the portfolio value. I haven't accounted for inflation, charges and commission though so it might not be as smooth as above.

    The interesting thing for me is that no-one knows how this is all going to pan out. Only time will tell!

    Thank you for stopping by and sharing your thoughts.
    Huw

  • Special Agent Dividend

    Reply Reply 28th November 2014

    Excellent post! I love the layout of the plan, and think it is achievable with dedication, along with good investments! I have a goal of becoming a millionaire as well, so I'm hoping us both luck! haha My savings rate is no where near yours, so that's one part I could certainly improve on to push me past the mark sooner. Overall, I'm very confident I can reach the mark, but I'm hoping sooner rather than later!

  • Huw Davies

    Reply Reply 29th November 2014

    Hi Special Agent Dividend,

    Thank you very much. My plan isn't set in stone, and it is a best guess as well. I like to think of it as more of a motivator than a step by step process. It'll be interesting to see how accurate it turns out though.

    It's nice to hear someone share the same goal, and likewise, I wish you all the best with it!

    My saving rate is pretty solid, but I'd like to take some steps to improve my income for 2015 as that's pretty low. compared to most PF/FI Blogs. My low expenses make up the deficit for this. I get a kick out of driving my expenses down, and I hope you can get some equal satisfaction from doing the same soon.

    I will keep an eye on your progress, as I find progression in others motivating. Thanks again for stopping by!

    Cheers
    Huw

  • No More Waffles

    Reply Reply 29th November 2014

    Huw,

    Interesting and well-laid-out post!

    Here's the thing: you'll definitely become a millionaire, wether you want it or not. It's not a matter of if, but of when. Your calculations didn't take inflation into account, which your salary will more or less keep up with. In 20 years time one million will be worth much less than it is now, so it'll be much easier to attain.

    Good luck! I'm rooting for you!
    NMW

  • Huw Davies

    Reply Reply 29th November 2014

    Hi NMW,

    Thank you very much. I hope your doing well!

    Thanks for the vote of confidence. I feel the same way, even if it isn't in 20 years. You're absolutely right, I didn't include inflation, which will impact what a £1m will be worth in the future.

    That said, I still believe £1m will be more than enough for me to live on and I'll gain a great sense of satisfaction from it.

    Thank you for the support. All the best!
    Huw

  • Theres Value

    Reply Reply 29th November 2014

    Hi Huw, really interesting post. Maths was never my strong point, but if you put a £ in front of the numbers, I magically became top of the class… I guess when we take the time like you have done here to put new information into our own personal context, we are able to come up with a great set of potential scenarios like these ones. I find it really fascinating to look at these kinds of tables… it's good to think of where we'll hopefully be in the future. Keep up the good work!

  • Huw Davies

    Reply Reply 30th November 2014

    Hi TV,

    I hope you're well! I'm glad you liked the post.

    I didn't realise how much I liked maths until I started employment in my 20's. Maths and spreadsheets!

    I entirely agree with your points here. The tables above represent potential scenarios, nothing more. They have their faults but the exercise helped me realise how realistic it is to become a millionaire. Compound interest after 10 years is exciting.

    Thank you for stopping by and sharing your thoughts.

    All the best
    Huw

  • weenie

    Reply Reply 30th November 2014

    Hi Huw
    Great post and spreadsheets, which interestingly, look rather like the spreadsheets that I used to calculate when I can become FI!

    I was talking to friends a few years back, our usual chat of what we would do if we won the lottery. I said that if I won a million, I would retire immediately. A few of them looked at me aghast and said "A million's not going to be enough for you to retire on!" They're so wrong, a million will be more than enough! Here's me aiming for only a QUARTER of a million to become FI, haha!

    Anyway, I think the way you are going with your saving and investing, this goal is well within your means and grasp.

    I know what you mean though about it being a mark of your achievement – I see it that way too and would love to be a millionaire but with less time than you have for my investments to grow, I'm not aspiring to be one right now!

    Wishing you the best of luck for this achievement!

  • Huw Davies

    Reply Reply 30th November 2014

    Hi Weenie,

    I hope you've had a nice weekend!

    Did you use the spreadsheet TAE displayed in his post 'Dignity'? I used that as a base and tweaked it.

    I heard someone at work say a similar thing about £500k. They acknowledged it's a lot of money but said "you couldn't retire on it. It would get you a nice house, car and a holiday though". Well yes it could get you a nice car, house and holiday, but if you invested it all at a 4% yield it would earn you £20k in income, which is double my current expenses.

    That's kind of you to say, I hope you're right that I'm on track for it. I'm heading in the right direction anyway. There's a long way to go and a lot of things can happen a lifetime so we'll see what happens. For the time being I'm going to keep on pushing.

    Thanks you for the support, it's much appreciated!

    Huw

  • weenie

    Reply Reply 30th November 2014

    Hi Huw, yes I've had a great weekend thanks – head's still fuzzy from a hangover! 😉

    No, I didn't use TAE's spreadsheet, but my own which I was working from back in April when I started my blog – guess I was on the right track spreadsheet-wise!

    Yep, £500k would enough too – now that's a goal that I could aim for, ie semi-millionaire! 🙂

    Hope you've had a great weekend, I'm still playing catch up, can see there's another post of yours I need to read!

  • Starla

    Reply Reply 2nd December 2014

    I enjoyed this post and have kept coming back to it, thanks Huw. I re-jigged my FI "Master Spreadsheet" (ha ha) and changed some columns to look the same as yours. I like the net salary, spending, annual savings columns. I'd prefer to work on the side of caution and prefer your first example. Inflation, agree with previous comments, inflation is your enemy and should never be underestimated.

    Like "There's Value" maths was never my strong point either, until I realised a basic grasp of it was the key to freedom, and now I'm exceptional at it 🙂

    This week, I was talking to a work colleague who was "depressed" to be back from a 2 week holiday and couldn't see an end to work, ever, so I passed you page link onwards and hopefully she'll be inspired. (I'll know if she's paid attention if she reads this!)

  • Anonymous

    Reply Reply 2nd December 2014

    Excellent point actually, inflation is often a killer, but if you think in terms of debt reduction, it can be a winner. Example: we're paying 1.99% on our mortgage, inflation is running at around this rate too, so it's effectively wiping out the cost of interest…

  • Huw Davies

    Reply Reply 3rd December 2014

    Hey Starla,

    I'm pleased to hear you liked it, and even more so that you've implemented some of it. That's why I love doing this so much. TEA presented a table that interested me. I used a chunk of it and adapted it to suit me. Inflation is a significant factor that I haven't considered in the figures above. My intention behind the post was to show people what's possible on a low salary and some time.

    I've previously been a very cautious person, and I still am to a degree. I am testing myself and pushing my boundaries on what I find comfortable. I want to be much more positive about possibilities now. I've surprised myself this year and I want to see if it's possible to keep surprising myself. My goals for next year will be much more ambitious as I want to see if I can rise to it.

    Good on you for helping a colleague out. You're right there is hope out there. I felt like that a couple of years back and it isn't nice. I feel very honoured that you've mentioned me. Thank you very much! I hope I don't disappoint. You can tell your colleague that I'd be more than happy to help her in any way I can.

    Thanks again for stopping by and offering support, it means a lot. All the best!

    Huw

  • Huw Davies

    Reply Reply 3rd December 2014

    I entirely agree. Inflation certainly leaves a mark. I would suggest that inflation might even surpass the rate of your mortgage if you're able to keep a rate that low for a long duration. Thank you for sharing your thoughts!

Leave A Response

* Denotes Required Field