Financial Independence – Step 1 Completed



Friday was the day I formally submitted my letter of resignation, so step 1 of our journey to Financial Independence has been completed.

I have asked to leave on 9th June 2017, which is earlier than my contracted notice period, but I believe that I will be able to leave on this date.

Mrs FIUK (who will also stop work on the same date) and I have picked the 9th June as it is around the time when I will have earned the full value of my annual tax free allowance, so all my earnings for 2017 / 2018 will be tax free, as an added bonus I will have paid tax through PAYE therefore I will get a refund at the end of the tax year. We have also picked this date as it will allow us to start our Financial Independence period during the long days of Summer, and should also be able to be outside doing the things that we enjoy instead of being shackled to our desks in an office.

Once we no longer have to turn up for work 5 days a week, it will allow us to get up later in the morning, look at the weather and choose to do what we want to do, so if the weather is good that day we can go out walking or cycling in the beautiful scenery that surrounds us, see photo below of Ennerdale which is about 20 minutes away.

We could choose to work in our garden, which although it is not massive, has been left mainly as grass to minimise the time required to maintain it during the two days per week we currently have off work. In future we will be able to create a garden that we enjoy, as the time we have for tending to it will only be governed by the weather.

If the weather is not so brilliant, we could choose to bake bread, cook a lovely meal from scratch, make meals that we can freeze for future to use up leftover food (which we tend to throw away at present). We may also not feel that we want to minimise the time spent doing our weekly shopping as we will have seven full days a week instead of two, and therefore we can shop around to get the best value, which may involve shopping at several shops in order to obtain the best quality at the best prices as compared to currently wanting to “waste” as little of our weekend as possible. This should also allow us to keep more of our spend local and help local shopkeepers.

The extra time will also give us the opportunity to undertake voluntary work either for charities to help people who are in need of assistance, or for nature and wildlife organisations to help protect the environment in which we live.

Red squirrel from our living room

All in all, once we have finished work, we have total choice of the things that we do, and when we do them, so it fits in with our chosen lifestyle as compared to the present where it has to fit around the demands of our employers.




6 thoughts on “Financial Independence – Step 1 Completed

  1. FIREin' London

    Congratulations of part 1 of the journey to FI! Does it feel like a huge weight has been lifted from your shoulders? I can only imagine how it must feel!

    I am curious – your portfolio / net worth pages haven’t been updated since 2015 so wondering how you are going to be able to retire on the portfolio – I am assuming you have paid off your mortgage?

    Thanks,
    FiL

    Reply
    1. Financial Independence UK Post author

      Hi FiL

      Thank you for your comments and welcome to my blog

      It does feel great to be on the countdown to freedom, although I have plenty things to clear from my desk before I leave so it is not specifically a weight off my shoulders. It was also surprisingly quite nerve racking as I approached the point of actually handing in my notice, as there is always the nagging doubt of do I really have enough to live on for the rest of my life!

      My Portfolio page is up to date although as you pointed out my Net Worth isn’t, but the portfolio shown doesn’t include my company pension (defined contribution), which I will transfer into my SIPP after I leave. We do still have a smallish mortgage, but to be honest the interest rate is so low (below 1% as it is a tracker), that we are deliberately not paying it off as I believe we can achieve a better return in our SIPP / ISA.

      In our calculations, which are based on an assumed 6% growth and 2.5% inflation, We should never drop below £200k in our portfolio, as we will have income from a final salary pension each, and our state pension, so this is the buffer to cover unforeseen events / short term drops in the market.

      I hope you manage to get there soon, and look forward to following your progress.

      Best Wishes
      FIUK

      Reply
    1. Financial Independence UK Post author

      Hi Weenie

      Hope everything is going well on the job hunting front, and great to see you pass the £100k barrier – woo hoo.

      Most of them were surprised and a mixture of jealousy and pleased (there were a few smiles through gritted teeth). Some people new an outline of my plans and only a couple new the likely timescales so most people were properly surprised.

      It’s fantastic to be working my notice to retirement, and I only have 40 days left to actually be at work, so it will fly by.

      I have of course told everyone that I will be sending them emails saying “what do you mean you are at work, I am still in bed” 🙂

      I look forward to following your progress, particularly with matched betting as it is something I may consider doing a bit of with to top up my income.

      Best Wishes
      FIUK

      p.s have you looked at betting arbitrage at all?

      Reply
      1. weenie

        I have read up on betting arbitrage but it’s not something I’ll do right now, I’ll continue to plug away at the matched betting while I can make profits.

        I can imagine some of your colleagues smiling through gritted teeth! Hopefully, you quitting early may jolt some others to consider their own financial situations and start planning accordingly, so you don’t end up being the only one still in bed while people are at work! 🙂

        Reply
  2. theFIREstarter

    Having stumbled across this rather late on I have to say… What a tease!!!!???!?

    Where are the rest of the posts describing how the lead up to the send off went, the last day, and first few weeks and months of FI?

    Come on we are dying to know!

    Hope it all went smoothly and you’re just enjoying the new found freedom far to much to be bothered writing boring old blog posts…

    🙂

    Reply

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