The privilege of choosing whether to work or not is a luxury usually reserved for the ultra rich but some British super savers are determined to join the club.
Financial independence is the main goal and it is only achieved when all basic needs can be paid for through regular passive income, such as from investments or property rentals, for the rest of your life. The idea is that working becomes less about money but personal preference and passions.
Mortgage adviser David Scothern, 38, from Sheffield, has devised a thorough four-year savings plan that will allow him to retire at the end of 2023 and free himself from his “repetitive” work.
Mr Scothern has calculated that he can live comfortably on £18,000 a year and plans to generate this through a portfolio of buy-to-let properties and investments in the stock market.
“This modern life of selling time for money does not work for me. Most jobs are unsatisfying and I want the freedom to do my own thing. I work for a good company but there is only so much I can do to make mortgage advice interesting,” he said.
He estimated he would have just over £1m in assets by the time he retires at 40. “It will depend on the stock market and property values but it’s achievable,” he said.
His savings journey has been carefully tracked in weekly blog posts, called Mortgage Advisor on Fire, that started in November 2019 when he first set out his goals of financial freedom.
In his first post, he wrote: “I’m not work shy, but I want to be able to do my own work. I want to create something, be that through writing, a website or a business. I just don’t want to be chained to a desk doing something that I find as frustrating as it is unfulfilling.”
So far, the super saver has amassed £436,000 in assets, which includes £20,000 in Premium Bonds, £42,000 in a stocks and shares Isa, £714 in cryptocurrencies, £53,000 in his pension and money tied up in his residential and buy-to-let properties.
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