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. This plan also includes us being mortgage free, so that our monthly outgoings are reduced and manageable.
May was the first month that I was able to post an update for the Ultimate Dream Fund, as it was the starting point of our journey. I said in that post that this is definitely a challenge for us; the savings target is very steep and there is a very good chance we will miss our target. June was the second month of me updating our Ultimate Dream Fund, July the third and August the fourth. So, this is the fifth month of our fund growing, which is exciting!
At the moment, as I said in August’s update, all of my Ultimate Dream Fund is sat in an instant access savings account, which doesn’t particularly pay a great deal of interest. In fact, the interest paid for September was a whole £1.21 – not really going to get us far in our plans! I must sound like a broken record, but I still haven’t opened a stocks and shares ISA. I have, however, been researching different options and I have a short list of places where I could potentially open an account. Maybe October will be the month where I stop being such a wuss about it!
Anyway, as of September 30th, our Ultimate Dream Fund stands at £3,581.66 which is an increase of £804.92 from last month. I am pleased with this amount, although it still is behind the £1,000 a month we need to be consistently hitting in order to reach our long term goals. So, need to continue to cut back or increase our household income to ensure we can do this. The only (major) sticking point with this now is that because I’m now on maternity leave, our household income is vastly reduced, so saving any money in the long term will be a challenge, never mind four figures. I really need to start working on some side hustles, though with a new baby I don’t know how easy this will be time-wise. But, if I want us to meet our long term aims, I need to start bringing in more money! If you would like to work with me, please check out my Hire Me/Advertise tab!
How was September for your savings/investing targets? Are you still on track?
Keep it up Nicola! You’re doing well. I’m realizing that this is a process. When I get frustrated at how little progress we’re making, I start thinking about how if we can just keep it up, we’ll get momentum behind us. We’re still in the early phases of pushing hard.
Thank you! Yes, the slowness of the operation can be frustrating at times; remembering the long term goals and waiting for the snowball effect to start 🙂
You’re doing so well especially with a new baby too! Keep it up x
Thank you! And thanks for stopping by 🙂
I know the feeling about income being reduced by maternity pay, I’ve recently had a baby too but it seems as though you guys are doing really well. Good luck!
Thank you! And congratulations – how old is your baby? 🙂
I know you’re fretting about meeting the monthly targets you’ve set yourself (and a little stress is a good motivator, I find!), but once you’ve transferred some money into a higher interest scheme that will help contribute to your fund, and as the fund grows that will help even more. You really must sort out an ISA or other high interest fund this month! Then being on maternity leave won’t feel so painful to your savings!
I know, it really is on my to-do list =/
Well done for being committed to your FI dream. I myself feel frustrated with myself as I save around 55% of my income, £1100 a month but after being a member of mr money moustache forums, I feel like that’s not a good amount when you hear people with 70/80% and £3000/4000 saved a month..I must stop comparing myself to others both down or upward 🙁
Comparing yourself to others isn’t helpful but it’s so hard not to do. £1100 a month is fantastic, and 55% is a great savings rate. £4000 a month savings would be impossible for us, it does depend on income though. Are you aiming for FI?
Yes. Fully committed to reaching FI. Will take 8 years for current expenditure but I’ll likely have kid/kids by then so it will be more of an essentials FI probably but still nice.
I will likely carry on working, change career or work part time though, I don’t intend to completely FIRE and retire early. I just like idea choosing to work and having the freedom in that.
60% stocks / 40% bonds, 4% rule. Nice cash buffer.
Chris b
8 years isn’t very long really, that’s exciting!