- Financial Independence for small business owners -
You need to be the tortoise rather than the hare to catch Financial Independence (FI)
Leveraging my small business to build freedom and the life I want for myself and my family
New articles posted weekly
Government Covid-19 Bounce Back Loan for small businesses
Earlier today the government released the final details of the new Bounce Back Loan Scheme (BBLS). Businesses can apply for £2,000 to £50,000 and will be able to access the cash in days. The loans will be 100% backed by the government as opposed to the Coronavirus Business Interruption Loan Scheme (CBILS) that were only
Daily lockdown walks with my family
Each day during the lockdown i go out for a walk after lunch, always with my youngest daughter. and usually with my girlfriend. This normally involves my 2 year old walking until she gets a little tired before sitting in the pram and having a snooze. We normally walk to the next village and around
What does a tortoise have to do with FIRE?
You may have noticed a few tortoises doted around on this web site. I often refer to myself as a tortoise not because I am old and wrinkly (though I am no spring chicken), but because when it comes to achieving goals I am more like a tortoise than a hare. I also recognise that
Who is this website for?
Although the My FI framework could be utilised by anyone, it was constructed to take full advantage of being self employed or running a small business in the UK. If you are currently working a 9-5 job and have always wanted to get off the treadmill and setup your own small business, you may also find the articles useful.
There are many blogs covering FI and FIRE on the internet but as the movement started in America, most of the content is US centric. Not only is the information in this financial independence blog aimed at people resident in the UK, but specifically British entrepreneurs looking for a way to build a sustainable future for themselves and their families doing what they love.
Personally i want to be a in a position where I can spend my time working because I want to, not because i have to. Having totally autonomy to be able to choose when, where, with who and doing what is my aim. Work takes up such a large proportion of your life that is seems such a waste to spending this time doing unfulfilling work with people you are not particularly keen on.
"Find a job you enjoy doing, and you will never have to work a day in your life.”
The My FI Framework
Pay down debt
Before you can invest in your future you need to pay off your past
Protect the downside
Create an emergency fund and insure against disaster
Conscious purchasing
Only buy for need or really want, not for just want
Your 'why' should be at the centre of your plan
Build multiple income streams
Diversify your income by building non related multiple income streams
Keep more of your cash
Invest tax efficiently
Know your numbers
Track your figures and leverage compound interest
Quick FIRE Questions
Financial Independence is generally defined as having enough income from passive investments to be able to cover your living expenses for the rest of your life.
FIRE is an acronym for Financial Independence Retire early and describes a movement where people cut their expenses while increasing their revenue and investing the difference to enable them to retire early.
You need approximately 25x your annual expenses to be able to draw 4% a month from your pot.
It’s more of a guide than a rule. The calculation was based on something called the Trinity study. It showed that under regular market conditions, if you withdrew 4% of your pot per year, you should have enough income to last you the rest of your life without running out.
This is dependent on many variables such as how much you save, what type of retirement you would like to live and how well your investments perform.
Anyone that can save a good percentage of their income has a good chance of reaching financial independence if given enough time.
Reaching FI is a numbers game. If you have less time you need to invest a bigger percentage of your income. If you have less income, you need a longer runway.
ISA stands for Individual Savings Account and is a form of tax free savings account. There are different types of ISAs but the one that you will hear about the most when discussing FI or FIRE is the Stocks and Shares ISA.
A pension is a pot of money that you and your employer pay in to and the government also gives you tax relief on. As you can only access this money from a minimum of 55 years old, under normal circumstances you would have both an ISA and a pension.
Described by Albert Einstein as the 8th wonder of the world, compound interest occurs when you receive interest not just on the amount you invested but also previous interest.