Now that another year has passed, it is worth to review my progress towards reaching F.I.R.E.. For those that don't know, FIRE is about reaching financial independence and retiring earlier than the conventional retirement age. This is acheived usually by a high (some people say extreme) savings and investment.
With FIRE, the most important thing is to start as early as possible to get that snowball rolling.
Last year i used the retirement calculator and it forecast that I was 13.1 years away from early retirement and that i required a pot of €1,267m to reach retirement. That is 6,3% towards reaching retirement. That was based on an income of €85k and expenses of €44k. The forecast assumed a savings rate of 51,76%.
So how did i do this year?
Total income was less at €81k, but expenses were much higher at €57k. That equals a savings rate of 32,22% for 2022... so that goal was not achieved.
So, based on this savings rate, my new FIRE number would be 18.1 years!!!
Clearly this isnt acceptable, so my goal for 2022 is to set a savings rate of 52% which would mean saving €42k and then my time to reach FIRE is reduced to 11.4 years. Thats all for this time, thanks for reading.
The savings calculator you can use for yourself here.
