Let’s Play A FIRE Game…

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When you start your investment journey, it can be quite tempting to log into your account every day to see how your investments are performing.

This isn’t necessarily a bad thing, but if you don’t quite have the resolve to accept the potential temporary losses, you might find your fingers soon hovering over the ‘sell’ button.

And as long term, growth investors, that’s not something we want to be doing.

So I propose a game to help those looking to turn auto-invest on, and let their portfolio do its thing.

The Set-up

Firstly, you have to make sure you have the monthly auto-invest feature turned on and to set the initial monthly amount you’d like to deposit.

For Hargreaves Lansdown users, this guide will help you find out where that is.

The Game

The game is incredibly simple.

Every time you log into your account, you receive a forfeit. But in true FIRE style, the forfeit also benefits your investing goals and forces you to save slightly more.

The forfeit is flexible and can be adapted as you see fit, but I propose the following…

The first time you log into you account, you must increase your monthly contributions by 1% of what they currently are.

If you log in a second time, increase that new amount by 2%, then the third by 3% etc. etc.

You can see how this will start to compound the more and more you log in.

The amount could get quite high, quite quickly if you log in enough. But you obviously need to put some sort of cap on it or have a rule in place to make sure you can afford it – this is just a game after all.

Maybe you could reset at the beginning of the year. So say you’re up to 10 log ins that year, as soon as it hits 1st Jan, you reset back to 0.

The Example

So I’ve probably explained that incredibly poorly, so here’s an example:

  • You start off investing £100 month in Jan.
  • You log in once in Jan:

[+1% of £100 = £101 is your new monthly contribution]

  • You don’t log in at all in Feb – good on you.
  • But then you log in 3 times in March:
  1. [+2% of £101 = £103.02 is your new monthly contribution]
  2. [+3% of £103.02 = £106.11 is your new monthly contribution]
  3. [+4% of £106.11 = £110.35 is your new monthly contribution]
  • You don’t log in again for another two months.
  • June you log in once:

[+5% of £110.35 = £115.86 is your new monthly contribution]

  • July once again:

[+6% of £115.86 = £122.81 is your new monthly contribution]

  • Nothing for the next three months.
  • November you log in 5 times:
  1. [+7% of £122,81 = £131.40 is your new monthly contribution]
  2. [+8% of £131.40 = £141.91 is your new monthly contribution]
  3. [+9% of £141.91 = £154.68 is your new monthly contribution]
  4. [10% of £154.68 = £170.14 is your new monthly contribution]
  5. [11% of £170.14 = £188.85 is your new monthly contribution]
  • December you only log in twice:
  1. [+12% of £188.85 = £211.51 is your new monthly contribution]
  2. [+13% of £211.51 = £239 is your new and final monthly contribution]

You’ve gone from your first contribution of £101 in Jan. to a final monthly contribution in Dec. of £239.

So if you’re struggling with logging in too much, give this a go and see if you can deter yourself from constantly checking the small, daily movements.

4 thoughts on “Let’s Play A FIRE Game…

  1. Interesting idea.

    However, I don’t know about you but I log into my Freetrade account several times a day and usually, I end up topping up so I can buy!

    Like

    1. That’s very true. And writing this I completely forgot about my speculative Freetrade account (somehow). I was referring more to the longer term, fund and tracker investments but should have made that clear 🙂

      Liked by 1 person

  2. I cannot…and neither can my wife, resist checking our accounts like a horrible itch. It becomes addictive. I did challenge myself to not check…managed two weeks. I did get anxious though, I must admit. I hope longer term free trade get some form of auto investment / direct debits in place, this remove so much checking when automation kicks in. Fingers crossed.

    Like

    1. It takes time and I checked quite a bit when I first started but you tend to settle down eventually once you get used to it. It’ll be interesting what Freetrade come up with in the future…I know they’ve recently started offering a SIPP, but I don’t know if I’d trust the longevity of such a knew platform with my pension.

      Like

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