I saw an interesting Reddit post the other day on the Financial Independence Retire Early thread that I read from time to time. I do quite like Reddit for obtaining that kind of ‘insider’ knowledge about things. However, you do have to take things with a pinch of salt as opinions tend to sometimes lean greatly towards each end of the extreme and with the internet, being the internet, you of course have to grow a slightly thicker skin upon engaging with someone in a debate!

One post I did see though which did spark a thought is, has anyone ever failed at FIRE?

Sure, I could imagine people ‘giving’ up in the early stages, or even the late stages. Or perhaps one of those thought experiments comes true such as the one where a ‘hacker’ has obtained your financial details and depleted all of your hard earn’t savings. But I don’t hear about many who have given up on the process. Perhaps the goal of having a financially secure future for the rest of your life without the need to work is just such a pull / draw to people which makes everyone that bit more motivated? (It sure does me! 😛 )

Have I had a set back towards FIRE?

Fortunately I’m grateful not to have suffered a set back most likely down to that fact that I’m just over a year into my FIRE journey so nothing has yet come and bit me in the ass (just yet). As my income is predominantly made of salary and dividends, I do have a welcoming tax return to make come January 2020 meaning that my savings rate will drop towards the later end of this year in saving for this. Alternatively I do have the option of depositing into my pension to work on reducing some of my tax liability, however I do have to be mindful that this money won’t be withdraw-able until the grand old age of 55 and pension contributions don’t effect tax on dividend income (just my salary).

I did work out though, if I save ?100,000 into my pension in the next 6 years (my current pension sit’s at just under ?10,000 currently), by the time I’m 55 (20 years from when I’m 35, anticipating 8% annual returns) and without depositing anymore than ?100,000, this pot would grow to just over ?570,000 come the year 2045. To me, this sounds like a no brainer!

Anyway, I digress! Have you had a set back towards FIRE?