I am so excited that I can finally start to post about our Ultimate Dream Fund, as this means that it has finally got off the mark and is no longer at zero!


I’m going to post updates on our fund for two reasons; one, so that I can show that living a frugal lifestyle means that we can retire earlier than we should do and still live a good life on the journey, and two; to keep me motivated for the long haul. This journey is going to take us a long time, but it’ll be worth it in the end.


To recap on our plan briefly, as we have changed it slightly, I want us to retire early at the age of 50, 17 years before our other pension options start to kick in. So, we need enough savings/investments/income to last us for those 17 years in between. I have been looking at three different scenarios for budgets, in terms of what to aim for. They are:

  • Retire early with a budget of £18,000 a year, which means needing a £306,000 pot
  • Retire early with a budget of £20,000 a year, needing a £340,000 pot
  • Retire early with a budget of £22,000 a year, needing a £374.000 pot.

Now, in an ideal world, we’ll manage to do this with a budget of £22,000 a year, as that will be worth less than it is today, due to inflation. However, if we manage to get to £306,000 in the time frame, we also know that we could manage, though it may be a slightly less indulgent early retirement (remember that this plan also includes a paid off mortgage).


Related post: The Ultimate Dream

Related post: The Ultimate Dream Part Two: Early Retirement

Related post: Why We’re (sort of) Paying Off Our Mortgage Early


Now, when reading through other personal finance blogs, these numbers seem rather small and not particularly ambitious. However, our combined income is not particularly high, so this will be a stretch goal for us, I think. I’m hoping that one day I’ll have some side hustles going on which will bring in additional income which will predominately go towards our early retirement dreams, but. until that happens, it’ll be a bit of a challenge. But hey, that’s part of the fun, right? 😉


Anyway, our Ultimate Dream Fund now stands at £955.84 which is a great start! To keep on track for the small post aim (£306,000) we’ll need to save an average of £1,182 a month from now on, to meet that aim. This is much bigger savings that we currently manage, so when I said this was going to be a challenge, it definitely will be!


Our journey to early retirement has finally begun and it is seriously motivating. Here’s to adding more to the fund in June!

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