Welcome to The FI Journey Website. This is a place to allow me to express and collect my thoughts, ponderings and feeling about my journey through Financial Independence and life in general.
Matched Betting – The Good, The Bad & The Ugly
I am writing this from the understanding that most readers will already be familiar with what matched betting is. What follows is a frank, honest and sometimes embarrassing account of my experiences with matched betting over the last 3 years. I am going to focus more on the bad and ugly parts as these are what I want to share more so. This in no way is referring to any intrinsic good and bad experiences that everyone will find if they pursue it but is simply my own story as it were… here goes.
Roll back the clock around 3 years ago and I was reading some posts from TheFireStarter (as you do…) and I couldn’t help but notice Matched betting as an income source in his monthly reports. This really confused me at the time as I thought ‘The poor guy is gambling? How long will this last!’. It wasn’t for a couple of months and after some email exchanges that I finally realized that it might not be gambling per say. I started reading into it and researching what it was and how it supposedly worked. It really did seem too good to be true at the time and I was hell bent on trying to find the negatives. I was searching for terms like ‘matched betting scam’, ‘matched betting doesn’t work’, ‘matched betting is illegal’ etc… Even though I couldn’t find negatives I still thought to myself, why don’t more people know about this? There’s gotta be some downsides surely? It dawned on me that I had to at least try it to see if it worked for myself. I eventually did the Coral free bet offer, fully understood how it worked in the process and never looked back.
This has been an incredible side hustle for me. I have earnt more than I thought would be originally possible. It has enabled me to fully pursue my FI targets while still having money for big expenses such as a new phone, tablet and holidays etc. If it wasn’t for the ridiculous profits that TheFireStarter reports, I would feel thrilled about what I have made (shakes fist at you…..). Joking aside. This has been a great side hustle financially speaking.
As for other good things. There is no need to leave the comfort of your own home, you can do this whilst still in your pants as it were sipping a Pina colada (not that I do). There is guaranteed risk free money to be made as long as you do things properly. This last point is where I myself have feel down previously but I will get to that later.
I think when I look at my experience with matched betting, the main bad thing that sticks out is how much time it has taken from me when I am doing it. I won’t go into specifics of what particular matched betting I was doing but it certainly would take up a big part of my week especially the weekends. I would be almost engrossed in thinking what matches are coming up, working out my profit pipeline, filling in my tracking spreadsheets etc. I remember once being out having a meal and I was on my phone placing bets and checking scores etc, I got a stern telling off at the time but this is what I was doing for a long period of time. I found it exciting to be fair so it wasn’t like it wasn’t enjoyable but it was distracting me from everyday normal stuff a bit too much. I had a break from matched betting for a good many months last year and I couldn’t believe how much free time I had as a result. It was really noticeable.
The other bad thing for me personally was, should I be doing this? Even if not illegal – the terms and conditions were starting to change to clearly state, you cannot use methods to lock in guaranteed profits etc. You are clearly breaching terms and the threat of withholding winnings is increasing. I guess the is this morally dubious thoughts were appearing. The exchange usually wins and those are likely real people placing bets and losing money after all.
This is the part where embarrassment comes in. I have no doubt that this is down to my personal character traits and failings but this could be helpful for others to bear in mind as it could happen to a small number of us. In typical easy matched betting, there is no real risk or perhaps it’s better to say very minimal risk. There are the risk of errors made by yourself whether it’s reading their terms of offers, placing bets on the wrong team or twice or laying the wrong amount etc. This of course can and does happen the opposite way. I have layed the wrong team and then happened to win that game as well. I have forgot to finish sequential laying an Acca and the Acca has won. My errors going for and against me have probably evened out by now however my own psychological failings could have destroyed me… I don’t say destroyed lightly.
My problem boiled down to the old classic of not accepting your losses. I had a profit pipeline. I expected a certain amount of profit from the different bets I was doing. I feel like I already had counted this money as my own even though I might not have earnt it yet. Most of what I discuss now is going back 2 years ago.
I place the bet on a horse. I am just about to click the lay button on an exchange and the odds disappear…I can no longer make £18 as expected. I place the bet anyway hoping someone will snap it up. Nothing… and the odds that are offered increase. My profit goes down even further. Screw it… I just place the same amount of money on the horse. It’s 17/1 anyway so prob won’t win. I overlay in terms of odds and liability. Guess what happens? The horse wins and instead of £18 up, I am down £18. This annoys the hell out of me. So.. I do a real bet that Italian series b team 1 v team 2 will not win 3-2. It currently 1-0. I risk £300 to make back that money. The game finishes 3-2.
The feeling of needing a result desperately to go a particular way is heart wrenching. This is gambling, this is a problem. This is what can lead to compulsive gambling. The above example is one of many that I had done during this Period. Once I remember risking £700 to win back a £100 loss. I didn’t want the under dog team to win. It was 1-0 to the favourite at 65mins or so when I placed the bet. It then went 1-1. I went for a long walk in the cold with drizzly rain and every 5 minutes checked the score in my phone. Luckily it stayed 1-1 but this feeling was horrible. When I win back the loss,I would do no further actual gambling for many weeks or months until an error annoyed me that little bit too much that I chased. Chasing £5 turned into a £730 loss once and then onto my lowest moment of all. I risked £3000 to win back that £730 and I won. Pure luck of the draw. I dread to think what could have happened.. if I was chasing £5, then £730. What would I do to chase £3735. Due to being on the pursuit of FI, I had the money to risk after all…
You’ll be glad to know, I have never chased losses since the £3k bet. I feel incredibly lucky as I dread to think what could have happened if I did lose it. All my previous effort of matched betting would have been eliminated on top of losing the money, I would of felt like I had lost all the time and effort as well. How have I changed since? I don’t count any money as a given in any profit lines and it never feels like it’s my money already. I accept losses, mistakes and not earning what I thought I might. I feel like thankfully, that brief terror 2 years ago has been surpassed now. I am quite confident I have changed as around 3 months ago, I layed the wrong team with similar sounding names, lost £300 and just marked it down as an error. The thought of chasing never even occurred to me.
I am looking into no lay each way betting. The money I have put aside is not even included in my funds so it’s a punt really. I will look at it like an investment where it will have volatility but hopefully there is an upward trend like there is for others. I feel very comfortable with this as have already done something similar with 2up. The losing streaks never bothered me as long as I understood the variance would switch around and that it would likely work in the end. It is an exciting time, it’s a bit of an experiment. I have stopped normal matched betting because of the amount of time for me that it was taking. The idea of simply placing bets, no tracking other than totting up balances monthly really appeals to me. I will report back on how I get on :D..
For all intents and purposes, I have no regrets at all of getting into this and I have TheFireStarter to thank for helping me discover this. I feel I have gotten over the Ugly experiences as I no longer have any inclination to chase at all. I hope you don’t judge me to harshly on my failings as discussed, I just hoped sharing this might be of help to someone who was a bit like the old me.
Let me know how you have got on with your experience of matched betting in the comments!
What makes a Job good?
I was working on an issue at work the other week when I noticed a new email pop up in the lower right-hand corner as I often do. I so happened to catch a glance of who it was from with the subject which stood out very clearly — ‘IT Restructure Consultation’ which was sent from the top dog in IT, my managers manager. As I was reading, there was a deadly silence in the office and I was consumed reading the content which discussed an upcoming restructure with an invitation to myself for a group consultation, I was one of those marked as at risk. Everyone in the office more or less at the same time shouted up “Did you just get that email about an IT restructure…?!”. Everyone in my team had got it and the speculation started en masse…
Fast forward to writing this post. I have since had that meeting and I will discuss what comes of it when its finalized which won’t be too long thankfully. Until then, I wanted to write a post on what makes a Job good? What, that in my experience of having had a very bad and a very good job has taught me personally.
The Bad Job
When I first got into the FI world as it were, I was working for a company that at first wasn’t too bad. I felt fortunate that I had got a job with the field I wanted relatively quickly and without too much hassle. I quickly however started to really dislike going to work to the point where the whole FI journey really did feel like tunneling out of a prison and moving to Mexico to show tourists around the coast. I think having a bad job really contributed to me considering a more bare bones FI and really saving as much as possible to the extent of slightly depriving myself of some things I have since loosened up on. What follows is the main reasons for disliking the job so much.
This was without a doubt the worse part of the job. My boss was not a people person at all. He was so sharp and would shoot you down in an instant. The atmosphere in the room suffered as a result and no one felt like they could make suggestions or put forward ideas for fear of being bitten. He was largely responsible for the next 2 points as well.
Unmanageable work load
There was simply far too many things to be done in the day. The list of projects and tasks was too high and simply was not achievable. No matter how much work you did and whatever progress you made, there was always something you wasn’t doing which would be picked up by the boss and then criticized. This led to you never truly feeling comfortable and always expecting a telling off around the corner. You may have completed task 1 through 32, 39 and 40 but progress on task 33 would be soon be questioned.
Too Formal/Corporate (TPS Reports anyone?)
There was little banter in the office and talking for any length of time would often be looked down upon. I had experienced being timed with a stop watch when going for lunches, and we had to account for our time for every 10 minutes on a tracking system. There were discussions around whether we needed a tea making project code and that we all went to the toilet too frequently at times. There was very little banter within my team and the corporate feel was overpowering at times.
The pay was ok for me at the time but not great for the profession and job role I had. What made it worse was that there were no benefits per se, auto enrollment for pension was set at the lowest amount allowed, and we only had no real perks. Holiday allowances was the minimum by law.
Some good stuff
Of course, it wasn’t all bad as with anything. I had some good banter with other teams and have made some long term friends as well as have gotten vast experience with my work and even using the bad negatives above as the main reason I now appreciate the good my current job provides which I will get too shortly.
As you can probably gather, I really didn’t enjoy my old job. I had said many times as many often do, that I needed to look elsewhere and move onto something better etc and after one outburst from my manager too many (not even to me). I thought thats it…I really need to leave. So, I put together a plan to move on by the new year and to get a certification to help with my future job hunting. I remember being at the christmas meal out with my boss and team knowing that it would be my last one, it felt really good and I had no doubts at all that I wouldn’t follow through and leave the following month…. I handed in my notice 3 weeks later.
The Good Job
I left my old job just over 2 years ago. I honestly feel like in some ways I have been on holiday for the last 2 years when compared with the first. It proves the grass really can be greener (especially if your grass is mostly brown and dead :D)… All the reasons I left the old job were remedied in the new one:
• Awesome Manager (The complete opposite of my other manager, so approachable)
• Management workload (Challenging but achievable)
• Banter! (We have a good bunch of lads, and we get on well, we work hard but have a laugh in the process)
• Good Pay & Many Benefits… (Pay rise, great pension, discounts, good sick pay etc.)
There have however been a few new aspects of the job which really were unappreciated until I had experienced them. These additional things make this job feel like to me at least what really make a good job good. It wasn’t until I experienced them at this place in the absence of such strong negatives that I knew how much I now value them.
One thing that from almost the first week in my new job I noticed was that colleagues and managers actually appreciated my work and input. I was given praise frequently and that was something that I was not at all used to. My efforts here are noticed whereas in my old job, they weren’t. People value my input at project meetings and will take my concerns seriously whereas before, I felt like people would often ask your opinion but already knew the answer and path they were going down.
Interesting varied work
I work in IT and have to work on many different projects involving vastly different technologies. We have a lot of challenges and the work itself is positively varied. It is certainly not monotonous. There are always problems to solve and new solutions to design. This helps keep work fresh enough as to not get stale.
Feels purposeful in of itself
I work in the health care sector. The work I do impacts people when they are often at their lowest and in the most need of help. The systems I help build and maintain are designed to help people get better and to treat illness. This certainly helps motivate me more than in my previous job. It feels like something I would do on a volunteering bases or part-time. I think that’s what make me feel at times like I have already pulled the FI trigger and simply choosing to do this line of work for the joy of it in and of itself. That certainly feels good.
Of course, just as the old job did have good parts, there are still some negatives in my new job. The commute is slightly longer, there are some office politics higher up, system documentation is poor and some staff are very lazy to the point of affecting what you do. I am certainly not wearing rose-tinted glasses. The difference is that all the things that really matter to me are good enough to allow me to enjoy my job, give me no dread of going to work… and that’s such a big difference!
I appreciate that not everyone can work in an environment that’s similar to mine. I know a lot of the good could change simply with new management etc. I don’t think it’s a honeymoon period as I have been there over 2 years now but I know my feelings could of course change. But for now… I really do think I have a good job.
As always, I’d love to hear how you feel about your work, and if you have ever been in a similar situation to my first.
Chris @ TheFIJourney
Hey everyone. Hope you are all doing ok :). It’s been quite a while since my last post on here which was made at a very difficult time for me. I didn’t really want to leave that as the last post and it certainly wasn’t the only reason I have been away for so long, I have just been consumed with life and other things (Excuses…). I took the summer off but then unlike Little Miss FI who came back to her blog after a similar break, I seemed to take the whole year off and then some hehe…I did want to post again but struggled with what to write about and didn’t want to write something just for the sake of it, it would probably bore you all if I did hehe.
I do however hope to get back to posting the occasional article on my thoughts and ramblings on a few different topics including of course FI. I still feel reluctant to do posts sharing the specifics of what I spend and don’t spend, what I invest, where and exactly how much I have in Investments. A lot of other bloggers don’t seem to have a problem with sharing that and sometimes in amazing detail (Looking at you theFirestarter :D). Does anyone else feel uncomfortable sharing that? Maybe I will change my mind, I am not sure. At least that way there will be some regularity and as QuietlySaving said in a post on her blog, those seem to be some of her most popular posts. I do wonder if people love to compare there own efforts to others and see how they are getting on. it’s quite natural to do that and can be a great encouragement sometimes to envy others to help improve your own efforts but also can foster a bit of jealousy too no doubt.
The last several months
So what have I been doing? Am I still into FI or have I descended into mass consumption, money burning a hole in my pocket new type of philosophy desperate to spend every penny on things that don’t really bring to much enduring joy? Hehe. No I am afraid it’s stuck on auto pilot. I have met my targets every month, continued to invest as normal and haven’t really thought too much about it which is boring but great. I still treat myself without any guilt (Looking at you my shiny lovely new Samsung S10 Plus hehe).. well just to note my phone was 4 years old and buggered and I love technology so I HAD to get one. I have been immersed in Matched betting, keeping fit, learning and reading and going out with friends and family as much as I can. It hasn’t been a bad time really. I think I need to do less matched betting though, I may even retire from it. A post regarding this is certainly in the works, this is another post I question whether I should or shouldn’t write about.
Short and sweet
I will leave it there for nice, short and sweet. I just really felt yesterday like I had to either write something and start to be more regular or maybe close the site down. I chose to carry on for now :D. I will be writing a post soon about my job and potentially big changes that are coming to it. It might not even be there in a weeks time :/. I wanted to write about the things about it that make me really appreciate it so much compared to my previous job and how that made me feel so different about the whole work thing, and how much I might want to escape it. If I do lose it, those older thoughts might come back hehe.
Thanks for reading as always.
I thought twice at first about writing this post as I figured people might think it was a bit morbid but then I thought to myself, no… this is all about facing reality head on and being honest and open. This is supposed to be a blog where I get to share my thoughts and opinions after all :).
For the past few months, a very close family member of mine has been battling with advanced cancer. Last night from 1 – 7am I was in a hospital side room with many family members waiting for the inevitable to happen. It did happen with all of us present at around 4am. She passed pain free surrounded by loved ones which was something we all wanted but of course at the same time was a horrific experience and many images of which I still can’t get out of my mind right now. This isn’t the first time I have been with a close family member when they died but is the first time since my pursuit of FI began.
During these 6 hours together, we all were talking about many different things and at one point the subject of money and priorities in life came up. The general opinions and thoughts that appeared were that you should live life as if it were your last day and money doesn’t matter, it’s better to spend it now and be happy etc. This is in part what made me think about writing a brief post on this sentiment whilst being enveloped in the grief and trauma of it all. Has it changed any of my beliefs around the pursuit of FI?
I didn’t really disagree with the general sentiment of what they were trying to convey but did disagree with what they said if taken in a literal sense. I completely agreed that when such moments in life crop up that it can make certain goals and pursuits look trivial and can make you question things that you might be doing or worrying about in life. It certainly does make you reflective on such things. Should I live like today will be my last day, should I start spending all my money as who knows when I will die, it could be tomorrow, a week or 10 minutes. How can I think about an FI date 8 years in the future?
Live each day like it will be your last
The idea of living each day like it will be your last day I think is easy to dismiss. There’s no way I could do that as it would mean straight away that I wouldn’t go to work, I would want to be with my family all day. I would need to make arrangements etc.. it’s not feasible to think like this. I would say that the more realistic and perhaps what is really meant is – Live like each day could be your last. Now, I think there is some truth in this because I do try to enjoy the present moment and each day. I try not to live life on fast forward to the next weekend or month or next major event. Despite this though, I still live each day with the presumption that there will likely be a tomorrow and that there will likely be a next week, month and year. I don’t know this for certain but I live my life as if it were the case whilst trying to as best I can balance being present minded and enjoying each day for its own sake.
Stop saving & spend all your money so you can be maximally happy
You shouldn’t save so much was said to me during this time. Now, I think this boils down to believing you are depriving yourself by not spending money which I have written about before. I think this certainly can be true if you are extreme in your approach but even then, deprivation is a very personal thing. Someone could get immense pleasure from not being materialistic, having minimal items and living a simple life. To someone else however this might be torture. So would I be happier spending over a grand a month instead of investing and running down my current stash? I don’t believe I would no as I don’t feel deprived and I get immense joy from having strong finances and FI as a possibility.
What if I had a terminal diagnosis – would I regret my FI pursuit?
I obviously don’t know how I would feel for sure but based on how I think I would feel. This would be a strong no. I would not feel that my life was deprived whilst pursuing FI so I don’t think I could feel regret. I would also have enough money to know I don’t need to worry about money or work as I wouldn’t need to work in this scenario as I already have a sufficient stash to last a decade or more. I would be able to focus my complete attention on my family and approaching the end. I could go on vacations with family and do things that I perhaps would have done less frequently before. In essence I know that being in the position I am already because of my FI pursuit, I would be able to remove some barriers and worries that I might have had if I had not pursued it. The whole experience would of course still be terrible and I don’t want to suggest otherwise.
Will I go down a gear after this?
If I was still at the early stages of my FI pursuit when I was more strict with myself and the slight feelings of depriving myself were present, I have no doubt this would have made me ease up a little bit faster perhaps than I did originally. Because I already have got to a sweet spot for now at least, I won’t be changing anything about how I approach FI. For me, what will change in the short term at least is how frustrated I get about the little things which of course seem so insignificant when you go through something like this. The pursuit of FI is still on…
As always, Let me know your thoughts on this article, I always value your input and opinions.
Chris – The FI Journey
The thought of tracking expenses to the penny always struck me as being way to strict and burdensome. I remember when I read the book ‘Your money or your life’ which talks about doing exactly that as part of its FI strategy that it wasn’t for me and even though I’d like to budget and know fairly accurately what I’m spending that it was a step to far. I can’t really recall what specifically changed my mind or made me give it ago in May 2015 but since this date I must be honest, I haven’t looked back.
Pre FI Exposure
I have been budgeting probably since 2011 which was pretty much before I had a full time job. I tracked my incomings and regular bills but I never tracked my actual expenses when it come to what I called disposable income (money left after standard bills) or exactly what I spent on food or fuel. I simply recorded the direct debits so I could see if anything increased on a monthly basis. I would know that I roughly spend £100 on fuel for example and £120 for food and that with my regular direct debits/static bills that I would have £200 disposable income left or £50 a week to spend on daily activities/outings and spends through out the month which could include a book or a game etc.
As I knew I would have £50 a week on average, I would loosely spend accordingly. It was easy to know if I was spending more or less as I had no real savings so all I had to do was look in my wallet and at my bank balance and I’d know if I had overspent or not. During this time, I used my credit cards now and then for big purchases but always tried to pay back the balance over a couple of months. The largest balance I ever had was £2200 from the time I went window shopping at Comet and bought a £2000 TV :o.
To the Penny
As I mentioned in the intro, I decided to start tracking all my expenses down to the penny in May 2015 as part of trying everything I could to help move FI closer to being a reality. To be honest and even to my own surprise, I found this rather easy and not burdensome at all. I actually enjoyed doing it! I liked keeping my receipts and working out what category to put things into.
I still use my monthly budget which is simply an evolved version of my older budget spreadsheet that provides me a rough idea of how much I expect to spend in categories such as Food and Fuel which aren’t completely static but now on my expenses spreadsheet I record exactly what I spend for each which allow me to see if my budgets are realistic or not as an average cost per month.
I gave a fair bit of thought as to what to call this article. Some of the names that I thought of were “The privilege of being on the path to FI” and “The Good fortune of being on the path to FI”. I settled on Gratitude instead as for me this allows for appreciating the luck, good fortune and privilege of being on the FI journey whilst not making it seem like it was all random without any effort and awesome work from yourself included.
My Buddhist background
After graduating Uni I had a gap year, and during this year I got heavily into Buddhism after reading ‘The Art of Happiness’ by the Dalai Lama. Over the next couple years, I studied Buddhism very closely and read countless books on the subject, I even went to see the Dalai Lama in Manchester as well as going to a couple of weekend meditation retreats. I will no doubt do a future article on my experiences and thoughts on Buddhism but it’s worth clarifying that I was only ever interested in Modern Buddhism (no literal rebirth, Karma, nirvana) and that I don’t consider myself a Buddhist anymore. I mention this however as I am no doubt very influenced by much of what I learnt and am still very grateful for some useful ideas/practises I picked up during this time. This has no doubt informed the creation of this article.
So what do I mean when I talk about gratitude about being on the path toward FI. I simply mean acknowledging, appreciating and being grateful for the good fortune, privilege that you have for being on this path towards FI. There is no doubt that some people will feel that they are independent and are completely self made. They have put all the effort in, worked two jobs, learnt about how to achieve FI and have been disciplined throughout the process. Other people who are not pursuing FI could for sure be in the same position as me if only they tried harder, retooled, got that degree, worked day and night to start a new business etc… Now I believe that the above sentiment is indeed true up to a point and that you can be a relatively independent person but that this is in no way the absolute truth. There is so much more at play, so much that we have no control over.
Now all of what I state below is meant to be the generalities, it’s all about probabilities. A person born in a country without many freedoms or options to a poor family with an abusive relationship with parents still could end up on his path. But I would argue it is much less likely.
Time period & Country you are born into
I feel very fortunate to have been born in this time period that we currently live in as a well as a modern free country (relative yet again). We are performing so well on so many different quality of life metrics and things keep improving. This is not to deny problems and areas where there is decline but I feel so fortunate to not live in a world dominated by superstition, unequal rights, real poverty etc. Just having access to the Internet, a warm house with running water and a hot shower is bliss. We have so many luxuries available to us and countless activities you can partake in in the modern world many of which we of course naturally take for granted. Having this setup as a foundation for which to build FI on is the take home here, we live in a time period and country where FI is a possibility for probably more people than it ever has been at any time before.
I thought it would be nice to make a short post while chilling in the lobby of my hotel during the final day of my lads holiday outing to Amsterdam. It’s lovely just to sit back on a nice sofa with gentle music playing. Watching people and the world go by… it feels like it’s been hours already but that’s another side effect of being in the dam :D.
Pre FI Aware Days
Some of my most fondest memories come from going on family holidays when younger. The feeling of just being on holiday where most of your daily worries can just be parked or put on hold for a week or two. It’s interesting when your entire surroundings change for a period of time. I love that nothing NEEDS to be done but there are always things to be doing on holiday even when that includes specifically not doing anything at all. I used to look forward to my yearly big holiday which included Florida or New York at the time. I would spend a fairly large sum of money and take lots of spending money too. I usually paid for the holidays in full on CC and then would pay them off over several months.
Since learning about FI
I for the past few years have gone to European destinations at least once a year. I always look for a good deal, go on a weekday etc. I certainly have not lost the joy of looking forward to and of being on a holiday but the days of multi thousand pound holiday are things of the past for now. I much prefer to go to 3 star if I can help it rather than a 4 or 5 although right now I am sitting in a 5 star lobby due to an irresistible deal… To try and be as efficient with money as possible though – I use a Revolut card so I can get the best travel currency exchange rate and withdraw from cash points without being charged (£200 limit a month). I get travel insurance for like £5 online and I don’t waste money on drinks/snacks that are charged at ridiculous prices. I find a supermarket and get better priced goods or simply take bottles of water out with me to help save.
I am certainly not a complete spendthrift though. I enjoy eating out, paying for experiences and activities out. I had a Chinese massage and speedboat ride earlier.. I did the speedboat ride first hehe. As of now, I still have only spent £250 over 5 full days though, so not bad. Money well spent for me. Maybe what makes these holidays even easier for me to justify is that they are still coming out of my matched bettings winnings and the next 4 or 5 holidays are already covered :D.
Local trips & Staycation
I have recently been going to more places in the UK itself and have recently gone on many day trips to Liverpool and Manchester etc. I definitely don’t need to go abroad just to have a good time. I have had many staycations during he last few years also. It’s interesting how sometimes I get a strange reaction from people at work when I tell them I am not actually going anywhere on holiday but simply am having a staycation. I even had a two week staycation a year or so ago where I wanted a 2 week kind of trial of being FI to see how I would find it – it went well albeit two weeks simply being used mostly to relax from having worked for so long.
So do you all still go on holidays? Have you reigned it in completely or do you still have a guilty pleasure of a traditional holiday that can’t budge?
Chris – The FI Journey
There are many people who are pursuing FI almost solely it seems to escape the so called ‘Rat Race’. I am sure we can all relate to this in some way ourselves as work isn’t usually a place we go to beaming with energy and excitement looking forward to another day. Fridays don’t tend to be the most depressing day with Mondays being the best due to us having a whole week of wonderful bliss fueled work ahead! I have read so many FI forum posts over the years of people dreaming of never having to work for their awful boss anymore, no more long traffic filled commutes, no more office politics, no more writing TPS Reports! The list of things at work which we despise can be long indeed and being able to escape these things can be a huge motivator in striding towards FI.
You apparently didn’t put one of the new coversheets on your TPS reports – Office Space Movie quote
Despite work not being perfect and still providing frustrations at times, I have definitely changed my views over the last few years as I have been in both a really bad job and now find myself in a really good job. This post will discuss my ever evolving thoughts on Escaping the Rat Race.
Work before FI
Its interesting trying to remember exactly how I viewed work before I started on this path to FI. I had only been working for 4 years from the age of 23 as I finished Uni at 22 and then had a gap year. I got into the FI world as it were at 27 so I hadn’t been working for very long without having FI as an ultimate future possibility. I do recall not feeling like rushing into work which is exactly why having 3 months off after graduating from Uni turned into 6 months and then finally into 1 year. I remember thinking that I will be working for the rest of my life so why rush, I have earnt a break after working hard (I was never one to leave assignment of the FYP (Final Year Project) till the last week or few days before hand in :D…. oh no wait, that was me!).
I think at this time my priorities were more on things that were happening at that moment. I certainly didn’t think about retiring early or that I might be able to do so. I was just like everyone else it seemed who used a credit card for certain stuff, my monthly money came to an end before the month itself usually so the last week was usually tight. I really needed that money to go in on pay day and it was a relief. I did feel under more pressure at work because of this bigger reliance on needing the cash and being hit negatively so quickly if I didn’t have it. Work was just something we all HAD to do for money we DESPERATELY needed.
Work in the early FI Days – The Bad Job
A big driver of my initial interest in FI was to escape the rat race. I loved to read articles and stories of people who needed to no longer work for an income. Work really was something I disliked. I had an awful boss who was very nasty, there was a really bad work atmosphere because of him. We had unmanageable work loads where it felt like you was setup for failure because in doing something, there would always be something you wasn’t doing that would be highlighted. The thought of being able to escape this situation was just awesome. The idea of FU money seemed to appeal more when having an awful boss.
When I was working at my previous place, I had a conversation with a work friend of my mine about Financial Independence. This came about because he was talking about how he had just come into a fair sum of money (£10,000) and he was not sure what to spend it on. New car?, Las Vegas? He really didn’t know what to do with it. I chimed in and said well why not invest most of it and treat yourself to something with £1,000 or something.
The conversation progressed and we spoke about it a few other times. Now at this point, I was fairly new to all of this FI business and was hooked on learning more and enjoyed talking about it more openly. I told him that with my current savings rate and a fair wind I could stop working in 23 years time at 50 and all my necessities would be met – £1000 a month with house owned. I didn’t tell him I saved over £1k a month but he could tell it was prob close to that, he was shocked… shocked that I would sacrifice so much fun, joy, entertainment for some future in 23 years time that might not even come and when it did just to live on basics covered only. He proudly said “Live for now man, spend now while you’re still young and healthy”.
Live for now or later
This idea that I might be depriving myself wasn’t something new to me. I had heard it many times on forums and comments on certain blogs. There was a dichotomy set up of live for now OR live for later. Below are common things I have heard online, in real life and that I have come up with when thinking about it:
- You’re only young once
- Stop sacrificing your happiness now for future happiness that might not come or not even be what you thought it would be
- You could lose all that money, if you spend it on doing things then you will actually get use out of it
- Stop living your life on fast forward, why do you want to race to being older. It’s like you are racing towards the box.
- You won’t enjoy your money as much when you’re older
- You are restricting your life far too much
- In short – you are depriving yourself
Am I depriving myself? Am I living my life on fast forward desperate to get to future FI. Now I think these are great questions and it’s easy to simply say no, of course not! and be done with it but there often can be some truth in the general view that you could be depriving yourself in the here and now whilst on the journey. I have certainly come to see this with myself.
Examples of my deprived life
- I could go on several holidays a year all around the world with many weekends away (Paris & New York even would be on the table every now and then)
- I could own a Mercedes car, even a Porsche if I wanted instead of regular basic car
- I could buy £200 jeans and have a full wardrobe of designer clothes but I buy from Sainsbury’s or Tesco instead
- I could have all sorts of gold chains and expensive watches but I don’t
- I could have a 70inch TV and buy new technology and stuff for my house almost every month.
- I could buy Sainsbury’s tase the difference or Tesco finest selections on all my food. I could eat like a king!
When it comes to the basics of what Financial Independence (FI) is and all the different types of FI from full FIRE (Financial Independence Retire Early) to just plain old Financial Independence, I think there is ample resources elsewhere that defines this and explains things such as the Safe withdrawal rate, savings rates, and precisely at what point one becomes FI. I expect most people that frequent this site will likely already understand FI in general so this post will mostly be about what FI means to me personally and why it’s such a big goal of mine to obtain it.
Despite the above, just to clarify. I define FI as simply having enough money from passive income such as a stocks/bond portfolio that will provide a person with all his expenses taken care of in perpetuity without the need to ever work again if one chooses not too.
What FI is not
Being FI is for me not about being rich or well off in the sense of driving a Mercedes Benz, going to the finest restaurants with 6 holidays a year, shopping in New York at Christmas and going to Paris every other weekend. When I am FI, it will look on the surface very ordinary for an outside observer, I will look very average and maybe even below average as my car will remain simple and functional, my wardrobe will consist of mostly items from Sainsbury’s or Tesco. I will go on maybe 1 holiday a year with a few weekends away in the UK at times – I will essentially be very much the same as I am now outwardly except for a few major differences that are harder to see. If I choose not to work or switch to part time, my neighbors might even feel I have fallen on hard times with me not doing the usual 9 to 5 every day. They would not suspect even for a moment, that in actuality I have hundreds of thousands in investments, own my home and with a fair wind will never need to work again for an income. I am glad about this, I don’t want to attract unneeded attention as discussed.
So to summarise for me – FI will give me the ability to live a mostly normal life activity/possession wise without the need to work which in turn will give countless sustained life benefits that are harder to see from an outside observer.
FI is an enabler
For me, FI is not the end goal or life mission as it were. It is simply a goal, a challenging long term goal and on reaching that goal the result – a sustained state of affairs and circumstances that will persist for the rest of your life. It is these enablers and circumstances that make this such a juicy, awesome goal to achieve. It is a goal that once reached will bear fruit that can be enjoyed each and every day. Not only however will this bring benefits at the point it’s reached, the journey towards FI itself provides similar enablers and plenty of fruit to gorge on along the way.
I am now going to discuss the FI enablers that stand out for me at various stages along the journey towards FI.
Enabler 1 – The possibility of FI
I think that before I come to some of the main enablers that stand out for me along the journey is firstly what many might not appreciate as much when creating articles like this which is – the mere awareness of FI and realisation that it is possible to achieve. Knowing that you are on a path towards hopefully never needing to worry about money, or even never even needing to work again as you could retire years before the norm is quite frankly liberating. Knowing you won’t HAVE to work until you’re 70 even if it results in worsening a medical condition you have is priceless.
Enabler 2 – Freedom from Debt