Before we dive head first into 2015 and a wave of inevitable soon-to-be-broken new year resolutions, I think it’s important to reflect upon what we’ve worked towards in the past year and to identify the major achievements. 2014 was a real life changing year for me. It marked the point of 5 years full time employment and utilising some of the accumulated funds to stabilise for the future.

We bought a house

Like many young people out there in the UK, home ownership has been one of the primary goals for my 20s. Due to having 5 siblings and parents having taken early retirement themselves; There wasnt the chance of a gifted deposit and so it would have to be earned the hard way. My partner and I moved into a tiny 1-bedroomed flat out of the city and saved every spare penny we had. It was like trying to fill up a cash bucket whilst watching the money escape through a hole in the bottom to pay the rent. Through hard work and drastically lowering expenses, we finally reached the required deposit point and exchanged on our first property at the start of 2014.

Going against some of the advice on similar blogs; we didn’t automatically go for the smallest/cheapest suitable property. Instead we decided upon a reasonably priced 3 bed semi-detached in a nice area.. knowing that we wouldn’t be forced to move due to children or the desire for more space anytime in the near future. Moving is expensive, stressful and time consuming. It’s not something I want to have to do again in the next 10+ years. Saying that however, we’ve been careful to ensure the mortgage payments are affordable even if interest rates rise or one of us becomes unemployed. Having a house also means we can invest through mortgage overpayments for a guaranteed rate of return against the borrowing interest. It can also be considered as a buffer against inflation.. for the long term economists out there.

But most of all, buying a house was about planting the roots of stability both financially and emotionally.

I got a new job

I had a colleague a couple of years ago who occasionally liked to moan about his salary or lack of. The guy was a hard worker, very friendly and had been with the company for a good number of years. One day I overheard him talking to my manager about how he comes in everyday.. works hard.. never complains.. and yet never receives a pay rise. My manager being as bunt as always turned to him and replied:

“Well if you come in and work hard without ever complaining… why would they change anything?”

Which is a great point. The days of being with the same employer for 40 years while working up the ranks has long gone for a majority of the workplaces in this country. Loyalty is often ignored and automatic pay rises barely above inflation. Instead if you want to progress you need to put the effort in yourself. Invest in your own skills and know your own market value.

I’d been with my employer for almost 5 years. A relatively long time-span for recent graduates in the UK however it was clear there would be no further progression for me with them. I could have very easily and comfortably settled down for the 9-5 ride at an already above-average salary however it would have meant taking a big hit to the Early Retirement date. Instead I worked on my professional qualifications, updated all of my online professional networking and was quickly contacted by a headhunter for a new role. Moving jobs is always a risk, however there is a bigger risk in my opinion when settling down with a job that has no further prospects at such a young working age.

We kept expenses low

While buying our first house, furnishing it and making repairs.. the overall theme has been to keep expenses low. Many of our friends who have purchased their first home instantly went out and maxed the credit cards on fancy furniture or expensive bathroom re-models. Instead we have tried to maintain the same spending mindset as when we were saving for the deposit. 2nd hand sofas, flatpack furniture and alot of DIY have been thrown into the mix to keep everything reasonable.

One of the first areas identified for needing improving was the old bathroom fixtures. We shopped around for local plumbers and obtained quotes in the region of £1000 for labour alone! Instead I researched online, youtube videos and an evening’s help from my old manager.. and we have shiny new fixtures at 0 labour cost. A similar story for re-felting a roof, tiling the kitchen and plumbing in the appliances. Money saved on the expenses and valuable life skills which I can reuse again in the future.

2014 for us was about planting the roots for a stable future. Taking the risks now which should pay off dividends in years to come and investing in ourselves to learn skills we can use again and again. I expect 2015 will be focused on accumulation. A big drive towards paying off the mortgage and investing in new sources of income or expense reduction.

I hope everyone had a great holiday season and is feeling refreshed for 2015.