How to retire at 45 in the uk from a minimum wage job (guide)

[Chuckle]

bob left school at 16 and 

Started working in a shitty job while still living at home

2 years later bob has saved £8k to put down a 10% deposit on a house

 

Bob is now 18 and because his job pays minimum wage hes in the lowest possible tax bracket

Bob works 36 hours a week

bob earns

£190 per week 

£763.2 per month 

£9158 per year 

Bob pays 0% tax

Mortgages are 40%+ cheaper than renting in the UK 

Bob now has 40% more money than his other friends who moved out of home and rented a house

RENTAL PRICES IN THE SAME AREA ARE £500-600

 

Bob lives on £500 per month for 3 years

Bob is now 21

he gets a pay increase from £5.30 to £6.70

bob now earns

£241 per week

£964 per month

£11500 per year

Bob now pays 20% tax on his wage above £11001

bob pays £99 tax per year

but has alot more money

 

The bank likes this

bob remortgages his first house to buy a 2nd

he rents his first house out for £500 per month

 

This pays the full mortgage on the first house and gives him £245 extra per month

Bob spends £80 of this on repairs and land lord insurance.

 

bob repeats this process remortgaging his properties every 2-3 years 

Bob loses some money when some of his houses are vacant but the area is desirable and 80% of the time they all have tenants 

Bob hits 40+ and his first few mortgages are paid off

 

bob now quits his job and hires a handy man to manage his properties

he gets paid £2000-4000 per month for doing very little

 

Bob retires at 45

bob is smart.

be like bob

 

 

 

 

 

 

 

[Deceiver]

very true

[Jab]

I like this

[Decode]

Are you bob?

[Chuckle]

Are you bob?

no

I am buying a house tho 

[Krys]

nice one

[Mustikurupt]

Amazing

[Kittens]

Chuckle back at it again!!!!!!!!! I love you bro!

[Wishy]

Im on a similar path except im on 2x that wage at age 20

[artkid0]

I don't know why, but I just got happy in the end for Bob.

[Solzhenitsyn]

And then you factor inflation. And the fact that without credit, you won't get a good fixed rate on your mortgage. And that in the post-recession world, financial institutions are less likely to give you loans unless you have excellent credit with a large transaction history.

 

And then Bob is sad.

 

Sorry Bob, you tried.

Edited October 18, 2016 by Solzhenitsyn

[Chuckle]

And then you factor inflation. And the fact that without credit, you won't get a good fixed rate on your mortgage. And that in the post-recession world, financial institutions are less likely to give you loans unless you have excellent credit with a large transaction history.

 

And then Bob is sad.

 

Sorry Bob, you tried.

mortgages are secured loans. if you miss repayments the bank keeps your deposit any repayments and can repossess the house

 

They love giving them out

if you have a 10% deposit and a job for over 24 months then its very easy to get a mortgage 

 

other loans that are unsecured maybe but not mortgages :P

[Jordan]

Bob waited too long to enjoy himself. 

[Swayy]

mortgages are secured loans. if you miss repayments the bank keeps your deposit any repayments and can repossess the house

 

They love giving them out

if you have a 10% deposit and a job for over 24 months then its very easy to get a mortgage 

 

other loans that are unsecured maybe but not mortgages :P

in the U.S it's preferred to put down at least 20%

[THS]

I respect Bob.