When I first started this blog back in 2012, it was to document my efforts to save enough money to stay in the marital home once my youngest son turned 18. The plan was to convert the house into 2 apartments, live in one of them and sell the other. There was also an annexe that could have been rented out. I had 4 years to save/earn £40k to make that happen. Unfortunately my ex husband changed his mind and that plan fell through.
Fast forward to the present and I find myself endlessly thinking about and working out how much money I need to be able to afford to retire. And I think I've finally come up with a solid plan!
I've poured over this year's income and out goings. I've identified the areas of over spending 😳, areas I can cut back on and things that simply won't apply if I'm not working. I know exactly how much money I have/need to live on now and if I'm retired. If I can save enough money over the next 4 years I should have enough to retire at 60. I can live on those savings plus my teaching pension (available to me from age 55) until I collect my state pension at 67. If I work and save for the next 4 years I'm also adding to my pension pots at the same time.
I'm setting myself a target of saving £10k a year for the next 4 years (see what I did there? 😉 ) It means being really frugal and going back to basics. I'm planning a no spend year, only buying the barest of essentials. I still have a little inheritance money left which will be my Emergency Fund (as you never know what might happen) but I won't use any of that. I currently have just over £1500 in my savings account so that gives me a start.
2020 and 2021 were years we all survived and I suspect 2022 will be the same. But I want to also thrive. So I've decided my goals for next year will be Survive and Thrive! I've added them to the side bar and changed the blurb in the 'Why 40kin4years?' at the top.
It'll be a huge challenge (I'm under no illusions!) but I'm feeling inspired already. It feels good to have a solid plan in place and goals to work towards again 😊