Are your FIRE(d) up for retirement - What does it take to retire early? The idea of retiring in your 50s or even your 40s sounds like a pipe-dream to most, what with the increased cost of living, inflflation and other economic factors slowly eating away at your predicted earnings. This hasn’t stopped the rise of the FIRE (Financial Independence Retire Early) movement, though, a new method of frugal living that aims for early retirement, escaping long working lives and living off the stock market or other supplementary income for good. One of the most infamous experiments carried out by Stanford University is the marshmallow experiment, where a pair of psychologists gave children a choice: one reward now, or two rewards if they waited around 15 minutes. Some of the children took the early reward of a marshmallow. Others struggled, but managed to wait longer, occupying themselves until it was time to receive a double reward. Saving for retirement can be very similar to the lesson in delayed gratifification, only more diffificult.The children knew what reward awaited them should they be patient – most adults don’t have a clue if their savings will be enough for the future. When the reward is intangible or complicated, it’s even more diffificult to set limits now in the hope of future benefifits. So, how do you do it? Keep your spending in-house - from small seeds of saving do sturdy trees of retirement grow. Simply put, it’s good to aim small when beginning your savings journey. That £2.65 coffee from your local coffee shop is now going to be an instant in the offifice. No more eating out for lunch, it’s time for homemade meals to be brought into work with you. Cutting out the small daily expenses can really help boost your long term savings and help usher in that desired early retirement. Let’s take our £2.65 coffee for example, the average UK citizen works around 260 days a year – that’s £689 a year! Utilise technology - there are a number of apps available, such as Pretirement, that make some basic assumptions about stock market returns and inflflation rates which then inform you as to how much you’ll need to save. Having a handy app on your phone can help you make decisions on the flfly and allow you to check what a potentially impulsive purchase may cost you in the future. Shop around - saving money where you can on bills, transport and other outgoings can help to grow your retirement pot quickly and without too much skin off your nose. Ask yourself whether you really need that magazine subscription or streaming service. Can you fifind a better deal on your phone or energy contract? The answer is often yes. Take advantage of saving opportunities - so many different ISAs exist out there, all with different saving rates that can help you grow your savings. The government has recently introduced a new Lifetime ISA where every £1,000 that you contribute receives a 25% bonus added by the government, up to a maximum of £1,000, which could potentially give you an extra £1,000 per year in savings. Decide what your goals are Ready for some serious saving? By saving £800 a month towards youretirement, you potentially shave two decades off your working lifedepending on what your retirement goals are. And there’s the big question.What are your retirement goals? Do youwant to live a life of luxury, enjoying all the potential freedoms that younew found free time will have to offer? Or would you rather have comfortable yet frugal retirement. There’s a whole range of optionavailable to you, and your retirement goals will help to inform you of howmuch you need to save and invest.A fifinancial adviser can be a great helpin determining this factor as they can give you direction on what the ideasavings plan is for you. At the end of it all, the message is to save when and where you can. It’about growing your savings and securing your fifinances. • For more information, do get in touch, we’d love to hear from you andhope to see many of our clients at Cotton Clouds this August. This is thethird year we have supported the festival, we were in it from the start andas a local fifirm we think it’s really important to support charities, as weas events of all sorts across our area – fifingers crossed the sun decides toshine on us. A WEALTH OF GOOD ADVICE. Family, conveyancing, personal and medical law Business, corporate and employment law Financial and tax advice Jonathan Beardmore Independent Financial Adviser T. 0161 785 3500 E. enquiries@pearsonlegal.co.uk pearsonlegal.co.uk www. SADDLEWORTH.co.uk Around