The mindful MFW: A healthy, happy journey to a mortgage free life!

Just found out you can't actually transfer directly from FDs 1st account to the mortgage account via the app! Have to phone and ask them to do it manually. No idea why as used to be able to via the web. Annoying for a 4p TT :rotfl:!

Courgette wrote: »

Well it's good advice and I stand by it! Definitely think there's admin improvements to be made in our house right now though. Having lovely DS3 seems to have thrown everything into chaos and it seems to be taking a very long time to get back on track!

Oh yes, our third threw us completely off track too! Amazing the difference between two and three - as my mum said when I told her I was pregnant with DD2, it's not like having an extra one!

themadvix wrote: »

Have read bits of your past diaries MW, so looking forward to this one - the mindful, healthy way to becoming mortgage free sounds like one we should all be following

Thanks themadvix, it's definitely an aspiration, but something I really want to embed into my daily life.

shangaijimmy wrote: »

I like your terminology of stretch and super stretch goals. It makes my realistic goal and dream goal seem bland! We're quite similar in target albeit we're 12 months behind you so will be great to see how we go compared against each other. You've got a 10k headstart, so i'll try and chase you down...;)

You're doing brilliantly and may well beat us to the end line. Whoever makes it first needs a chilled drink waiting for the other!

Doing a lot of thinking about financial independence, and whether we need a broader look at our finances beyond mortgage freedom. One of the things that is obvious is that OH is a higher rate tax payer, and we also have to pay back our child benefit as he earns over £50k. Penny has finally dropped that if we up his pension contributions from 4.5% to 27% we can save an additional £29K a year in his pension for a difference in take home pay of £1,105pm. He would still take home about £2,500pm, which would cover mortgage, household bills, food, childcare etc.

I forecast this means we could afford a £500 pm overpayment, which would mean it would take just under 8 years to mortgage freedom. HOWEVER by the time the mortgage was paid off we also would have an additional £231,201 in OH's pension fund (not including growth/interest) :eek::eek:! It would also take us close to OH's 55th birthday, meaning early retirement could be a possibility.

Any thoughts on this gladly accepted, my mind is slightly blown especially due a hangover from the-not-very-healthy-but-very-happy night out yesterday :rotfl:.

wishingthemortgaheaway wrote: »

Higher rate tax payer issues are not something we are ever likely to face, so I've no idea!

But... if you consider increased pension contributions as 'paying forward the salary' and you can maintain the lifestyle you won't on the net pay, it does seem like a no brainer.
Also, you could do it for a period of time and if circumstances change you could reduce the contributions again.

With regard to the ch!ld benefit payments (stupid stupid system if you ask me!!) has anyone given suggestions on how to get the money to work for you while you've got it? (before you've got to pay it back)
I guess the simplest thing to do is to stick it in a savings account so it gets a little bit of interest, but I wonder if there's a way of it really working for higher rate tax payers.

Wish.

I know, we are very fortunate that one of us earns a decent salary. If we both had museum salaries that would be a different story :rotfl:.

I'm doing some sums and asking for help on the pensions board but it does look like we could gain £1900pm in a pension fund for a total difference of £350 pm less than out current income. The numbers will change but the principle behind it remains the same and we could potentially still overpay up to £1k a month.

Don't even get me started on Ch!ld benefit, it really is the bane of my life :rotfl:. We currently scrabble to find the money each Jan but hopefully as part of this finances review we can be a lot smarter than that.

You're right it doesn't have to be a permanent change, circumstances change but I think now we're starting to get back on top of our finances it would be possible to reduce our ready income without huge detrimental affect on our finances.

Morning! Appointment with DD1 today so have an hour to myself in a quiet house. Bliss!

Have applied for the H$BC Advance account as mentioned in this week's tips, hoping to get accepted as will be a £200 bonus.

Have been given some really useful links about adjusting net income through pension contributions, I've sent OH a set of questions he needs to answer :rotfl: and then I think we should be good to work out exact amounts. It will be pretty hard to play catch up this year as will need to make changes from the 6th paycheck of the year but having it all written down will help us see what is feasible.

Off out this evening to a leaving do, seeing as still feel rough from Tuesday am planning to stick to lime sodas, although will buy a drink for the leaver. I will have to eat beforehand, but will try to get something cheap on the way. Hoping for sub £15 night out.

I found £30 cash when sorting through the paperwork :j so hoping can just do spends from that rather than tap into our current account.

Now time for some HM porridge before have to rouse DD1 :eek:.