FIRE on £500/month — the starter savings rate.
Can you reach financial independence saving £500 a month? See how long it takes to hit your FIRE number at different return rates and spending levels.
£500 per month is a realistic starting point for many UK earners on £30,000-£40,000 gross salary. At this savings rate with 7% nominal returns and £25,000 annual expenses (a 4% SWR target of £625,000), it takes roughly 28-30 years to reach financial independence from a standing start. That's a long road, but it's achievable — someone starting at 25 could be FI by their mid-50s. The key leverage point at £500/month isn't the savings rate itself, it's keeping expenses low. If you can sustain £20,000 annual expenses instead of £25,000, your FIRE number drops to £500,000 and the timeline shortens to around 24 years. Workplace pension contributions and employer matching effectively increase your £500 without costing you anything extra — make sure you're capturing the full employer match before optimising anything else.