Alizarin's ERE Journal

[alizarinbear]

--- initial post moved away due to unhealthy levels of ridiculousness ---
--- thank you to all who replied! ---

[Nomini]

Great to see someone else from the UK. Just a word of caution, though, about the numbers - you're going to have to earn the megabucks to sustain a £20000/year lifestyle after five years of work:

1) To save £500,000 in 5 years you need to save £100,000/year
2) At a 75% savings rate, this means you need to be earning £133,333/year net
3) Accounting roughly for income tax (around £90,000/year at that level) and NI contributions (around £8000/year at that level), you'd need to be earning around £230,000/year gross

To average £230,000/year in any five years, never mind your first five, is insanely optimistic, and would shoot you straight into the top 0.01% or so of earners in the country. Anyway, I don't like to shoot down dreams, but do look over your numbers for realism.

[George the original one]

20k per year is a handsome sum for living expenses. Your number one priority is to knock that number down and see what it really costs you to live.

It is also worthwhile to understand the math behind MMM and Jacob's plans. It's not complicated, as math goes.

[alizarinbear]

Just a word of caution, though, about the numbers - you're going to have to earn the megabucks to sustain a £20000/year lifestyle after five years of work

20k per year is a handsome sum for living expenses. Your number one priority is to knock that number down and see what it really costs you to live.

It is also worthwhile to understand the math behind MMM and Jacob's plans. It's not complicated, as math goes.

Nomini, George, Thank you for your replies and for making me aware of it! 20k does sound silly now. I've yet to have stayed in London for more than a month, and I retrieved that "average living expenses in London" number off Google, so serves me right

I would really appreciate if you could suggest a guideline to how low it can be really knocked down to. I know may be a matter of personal preference/priorities but I would be interested in what you think is possible

[rube]

Read other journals here and you will get a feeling of COL in several places in the world..London is expensive- you don't need to.stay there (after ERE).

Re. 7 AM - 7PM work: plenty of jobs where it is not the case. But those might not be so.visible. I.guess you'll find some people at the art school that live differently