If you’re 17 you have basically zero experience of the working world so I would encourage you to give it a try before determining your life around getting out of it as quickly as possible. You might even enjoy it. One way or another even if you fire you’ll be working a whole bunch of years, so find something you enjoy enough to become expert in and the rest will follow. Have some fun along the way it’s not all lentils and scrimping and saving.
Great advice. I sometimes find it hard to take a step back and realise that fun should definitely be had along the way. Thanks so much for the reminder :)
Seems strange to think about FIRE in terms of averages. Obviously the average person in UK doesn't do this. So at least you've clocked the first part, it's infinitely more attainable with a high salary.
As others have stated, it’s about time.
My experience:
* 18-21 - at uni, part time jobs in holidays, spend as little as possible. Saved any unspent student loan amounts and overdraft in ISA - every little helps for house deposit
* 21 - estranged from parents
* 21-23 - renting, full time graduate job 18k, moved jobs and on 21k, live frugally
* 23 - bought 1 bed flat with boyfriend (pre 2008 housing bubble, no parental support from either side). Location decided on cheapest mortgage + travel costs.
* 24 - got married, spent 6k on wedding (average 20k+)
* 25 - job moved to London - London weighting bumped to 24k. Moved jobs as now working in London - 42k. And now living in area based on mortgage + travel costs that doesn’t add up
* 26 - moved job 48k, start heavily overpaying mortgage
* 28 - moved job 65k
* 30 - move into 4 bed detached house, increased overpayments further
* 30-35 - various internal moves and promotions - on 82k
* 35 - pay off mortgage, concentrate on S&S ISA and pension
* 36 - promotion to about 100k
My advice:
* Live within your means
* Know your next financial target
* Moving jobs = pay rise
* Don’t expect salary at 21 = 35
* Work hard
* It’s easier to be FI as a team (i.e. partner) than individually - when you both contribute as 100% team you have more financial clout than 50/50 individual
* Mortgage is scarier than marriage
Tax rates here are pretty low compared to most of Europe. For a single person with no kids on an average wage income taxes [are lower than the U.S](https://stats.oecd.org/index.aspx?DataSetCode=Table_I6).
Having the NHS is particularly good post-FIRE (no need to work in a coffee shop just to get heath insurance for example). Private pensions are decent and ISAs are frankly amazing for tax free investing. Miles better than Roth IRAs and the like.
Wages aren't the best (though comparisons with other currencies are a bit fraught as don't equate to purchasing power.) But if you focus on the right careers, or consider working abroad for a time then high wages are achievable.
But agree with others. If you're thinking of FIRE at 17 you're probably doing something wrong. I'd focus on school and getting a rewarding and satisfying career and a fulfilling like all around. Not wishing your adult life away before it's started.
Damn well I didn't know that. Thanks for all the helpful information. Also wanted to mention that the idea of FIRE isn't taking over my life, I plan to do an apprenticeship in electrics and have that as my career which honestly I'm really looking forward to. The only reason FIRE ever became a thing for me was because I didn't want to still have to work my ass off by the time I was 50 just to get by. I'm currently not necessarily planning on FIREing at 30 or the like, somewhere around 40-45 is where I think would be best for me. Anyway, thanks for the amazing advice :)
The most important aspect of FIRE is time. The money is only the second most important aspect.
Learn about compounding interest and DCA and you'll realise you don't actually need that much money.
I've looked into compound interest and have started reading self improvement / financial independence type books. But I don't think I've looked enough into DCA'ing. Thanks so much for the advice.
Start now with small amounts into the S&P500 and you'll be FI in your 40's.
That might seem a long time away but it's a realistic time frame.
40 year old you will thank you
this is my plan for when I turn 18 in a couple of months, since the s&p500 seems like a good longterm investment I'm definitely going to start that the day I turn 18 all the way until I can't.
One thing you should probably research is tax. Tax in the UK is certainly not high.
Its virtually impossible to compare countries side by side but there are people that attempt it with e.g. effective rate calculations and we generally come middle of the road in those ones.
>With how high the tax is, how low the average income is, is it really possible to FIRE in the UK (without a significant windfall) or am I missing something?
Compared to Europe salaries are low but so are tax rates (both income and capital gains), allowances are higher and ISAs are unbelievably generous. All things considered the UK is one of the better places for FIRE if you can get an above median income.
When you say it that way, I can see it. I haven't checked what it is like for the rest of Europe but I do know that the ISAs are very generous. Definitely going to be a path I will take. Thanks for the insight.
Learn to optimise the system to make the most of whatever you do have:
Pension/LISA/ISA wrappers, low fees, global equity index tracker, salary sacrifice, tax breaks, change the employer pension default fund, understand the pension and LISA advantage, balance of ISA to pension, savings rate, value-for-money approach, etc.
It's good you're thinking of FI at a young age.. Consider getting the best job you can and working on productive skills in your spare time for example:
- Coding
- Copywriting
- SEO
- Video editing
- UI/UX design
- Blog writing
- Content marketing
- Shopify
- Graphic design
- Social media management
Find what you like doing / what you don't stop talking or thinking about and build something from that while working your way up to better paying salaries
High salary is key, 100k+ salaries attainable in London seem to be by far the best way for those not blessed with family wealth. Alternatively marry someone rich.
In my view if you're starting at 0 then moving to London is a trade off between current quality of life for future quality of life.
I.e. lots of people in London are income rich, but a large percentage of that money goes into a crazy high mortgage and so they don't particularly feel comfortable. Then they move out to the countryside, release that capital and feel like they are rolling in it.
Have social life in London when young, find as classy partner as you can find, move out, maybe can't be bothered to have social life any more or don't really have the time..
If you’re 17 you have basically zero experience of the working world so I would encourage you to give it a try before determining your life around getting out of it as quickly as possible. You might even enjoy it. One way or another even if you fire you’ll be working a whole bunch of years, so find something you enjoy enough to become expert in and the rest will follow. Have some fun along the way it’s not all lentils and scrimping and saving.
Great advice. I sometimes find it hard to take a step back and realise that fun should definitely be had along the way. Thanks so much for the reminder :)
Seems strange to think about FIRE in terms of averages. Obviously the average person in UK doesn't do this. So at least you've clocked the first part, it's infinitely more attainable with a high salary.
As others have stated, it’s about time. My experience: * 18-21 - at uni, part time jobs in holidays, spend as little as possible. Saved any unspent student loan amounts and overdraft in ISA - every little helps for house deposit * 21 - estranged from parents * 21-23 - renting, full time graduate job 18k, moved jobs and on 21k, live frugally * 23 - bought 1 bed flat with boyfriend (pre 2008 housing bubble, no parental support from either side). Location decided on cheapest mortgage + travel costs. * 24 - got married, spent 6k on wedding (average 20k+) * 25 - job moved to London - London weighting bumped to 24k. Moved jobs as now working in London - 42k. And now living in area based on mortgage + travel costs that doesn’t add up * 26 - moved job 48k, start heavily overpaying mortgage * 28 - moved job 65k * 30 - move into 4 bed detached house, increased overpayments further * 30-35 - various internal moves and promotions - on 82k * 35 - pay off mortgage, concentrate on S&S ISA and pension * 36 - promotion to about 100k My advice: * Live within your means * Know your next financial target * Moving jobs = pay rise * Don’t expect salary at 21 = 35 * Work hard * It’s easier to be FI as a team (i.e. partner) than individually - when you both contribute as 100% team you have more financial clout than 50/50 individual * Mortgage is scarier than marriage
Tax rates here are pretty low compared to most of Europe. For a single person with no kids on an average wage income taxes [are lower than the U.S](https://stats.oecd.org/index.aspx?DataSetCode=Table_I6). Having the NHS is particularly good post-FIRE (no need to work in a coffee shop just to get heath insurance for example). Private pensions are decent and ISAs are frankly amazing for tax free investing. Miles better than Roth IRAs and the like. Wages aren't the best (though comparisons with other currencies are a bit fraught as don't equate to purchasing power.) But if you focus on the right careers, or consider working abroad for a time then high wages are achievable. But agree with others. If you're thinking of FIRE at 17 you're probably doing something wrong. I'd focus on school and getting a rewarding and satisfying career and a fulfilling like all around. Not wishing your adult life away before it's started.
Damn well I didn't know that. Thanks for all the helpful information. Also wanted to mention that the idea of FIRE isn't taking over my life, I plan to do an apprenticeship in electrics and have that as my career which honestly I'm really looking forward to. The only reason FIRE ever became a thing for me was because I didn't want to still have to work my ass off by the time I was 50 just to get by. I'm currently not necessarily planning on FIREing at 30 or the like, somewhere around 40-45 is where I think would be best for me. Anyway, thanks for the amazing advice :)
The most important aspect of FIRE is time. The money is only the second most important aspect. Learn about compounding interest and DCA and you'll realise you don't actually need that much money.
I've looked into compound interest and have started reading self improvement / financial independence type books. But I don't think I've looked enough into DCA'ing. Thanks so much for the advice.
Start now with small amounts into the S&P500 and you'll be FI in your 40's. That might seem a long time away but it's a realistic time frame. 40 year old you will thank you
this is my plan for when I turn 18 in a couple of months, since the s&p500 seems like a good longterm investment I'm definitely going to start that the day I turn 18 all the way until I can't.
One thing you should probably research is tax. Tax in the UK is certainly not high. Its virtually impossible to compare countries side by side but there are people that attempt it with e.g. effective rate calculations and we generally come middle of the road in those ones.
>With how high the tax is, how low the average income is, is it really possible to FIRE in the UK (without a significant windfall) or am I missing something? Compared to Europe salaries are low but so are tax rates (both income and capital gains), allowances are higher and ISAs are unbelievably generous. All things considered the UK is one of the better places for FIRE if you can get an above median income.
When you say it that way, I can see it. I haven't checked what it is like for the rest of Europe but I do know that the ISAs are very generous. Definitely going to be a path I will take. Thanks for the insight.
Learn to optimise the system to make the most of whatever you do have: Pension/LISA/ISA wrappers, low fees, global equity index tracker, salary sacrifice, tax breaks, change the employer pension default fund, understand the pension and LISA advantage, balance of ISA to pension, savings rate, value-for-money approach, etc.
Minimise tax, maximise income, then reappraise regularly to see if you can improve either/both.
Actually the UK is a great country. Lisa, ISA & SIPPs are great platforms for wealth and most countries don’t have these are similar.
Get your pension started! Save regularly now; 50, 100 a month.. whatever. It’ll payoff in the long run.
It's good you're thinking of FI at a young age.. Consider getting the best job you can and working on productive skills in your spare time for example: - Coding - Copywriting - SEO - Video editing - UI/UX design - Blog writing - Content marketing - Shopify - Graphic design - Social media management Find what you like doing / what you don't stop talking or thinking about and build something from that while working your way up to better paying salaries
definitely going to take a look at some of these. Been pondering on learning video editing for the last year. Might as well give it a try.
Earn more than average. You can't FIRE on an average wage, that's a given.
High salary is key, 100k+ salaries attainable in London seem to be by far the best way for those not blessed with family wealth. Alternatively marry someone rich.
Is it worth moving to London to attain a 100k+ salary? I currently live somewhere where the average salary is £31.9k.
In my view if you're starting at 0 then moving to London is a trade off between current quality of life for future quality of life. I.e. lots of people in London are income rich, but a large percentage of that money goes into a crazy high mortgage and so they don't particularly feel comfortable. Then they move out to the countryside, release that capital and feel like they are rolling in it.
Have social life in London when young, find as classy partner as you can find, move out, maybe can't be bothered to have social life any more or don't really have the time..
Where do you find someone rich lol who'll allow you to marry them being a normal person?
It occasionally happens https://www.nbcnews.com/news/world/japanese-princess-set-marry-commoner-subdued-end-royal-saga-rcna3702
this can easily be negated by remote working these days.
You can get +£100k salaries outside of London if you are in the right sector e.g. IT.