I really hate to burst your bubble, but within the next 10 years, the retirement age is going up to 67 for both men and women.
Are you really looking forward to working for that extra 2 years… that’s an extra 4,032 hours if you take into account you are roughly working 42 hours a week for 48 weeks of the year.
I’m not going to be doing it. That’s for sure… I’m setting myself up all the time.
The plan is to not have to work after 55 and then spend 45 years cruising the planet being awesome (What a dream, oh yes I do plan to live to 100).
But have you looked into this?
One thing is for certain up until the last couple of years I’d not even thoughts about retiring, because I wasn’t that interested in my financial self. I knew that I had property assets and that was good enough for me…
Side note: My retirement fund is sad at best. I was on track to have £55k in there. Errmm that barely covers 1 year worth of retirement for me.
I’ve been delving into this A LOT. Statistics suggest you need around £465,000 to retire on.
So, you’ve gotta get your £465k before you want to retire…
That could be £750 per month into a 5% per annum interest account for the next 25 years. With compounding the interest you’ll be at £445,381.81.
(Don’t pass out at finding £750 per month, it’s a mindset shift)
Or you want to supercharge that?
£500 a month x 5 years = £30,000
Buy an investment property worth £100,000. Let it out for £650. Save the profit rent of £250 a month.
Save your profit rent of £250 plus your £500 a month… in 3.3 years you’ll be able to buy property number 2 (same thing £30,000 to get the £100,000 property with £650pcm income so another £250pcm profit rent)
Now you can save £1,000 pcm, which means in 2.5 years time you’ll be able to buy the next £100,000 property. To get you £1,250pcm.
Save the £1,250pcm income for 2 years you’ll be able to buy another £100,000 property…. That’s Property Number 4.
Now you have £1,500pcm coming in. In 1 year 8 months you can buy property number 5 and increase your monthly income to £1,750.
1.5 years later you buy property number 6. To create £2,000 a month you are able to save. Within 16 years!! Plus you will have AT LEAST £150,000 in equity from these 6 properties.
Within another 3 years you could buy yourself another 2 properties and stop saving the £500.
WOAH THERE…
Ok, Ok you are probably now thinking, ‘Natasha where on earth am I getting £500pcm from to save?’
Well £500 a month is roughly £115/week.
- £28 from 7 x £4 Lattes
- £50 from those 5 trips to Pret where you ‘accidentally’ spent £4.50 on the Roast beets, squash and feta veggie box, £1.50 on the Kale Crisps, the dark chocolate and almond butter vegan cookie £1.45 and a Coco-Berry Bircher Smoothie – £2.75
- That accidental shopping splurge you do on a Saturday where you most definitely need that £37 Zara shirt
Simply put, make your coffee and lunch at home and spend £160 less on your shopping trips a month.
And then just be patient. You have to be consistent and this will grow.
Sounds a lot more exciting than retiring at 67 right?!
Natasha
DISCLAIMER: You need to do a deal analysis on each property that you look to buy to make sure you can get that £250pcm net rent. This is only an introduction in this blog.
DISCLAIMER 2: It’s assuming that you are borrowing at 75% LTV on a 3.5% interest rate
P.S You have to get my FREE E-book which will help you find these £100k properties – Hit Your Property Investment Goals in 2019
