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    • rasputin_thorpedo
    • By rasputin_thorpedo 1st Mar 16, 7:18 PM
    • 387Posts
    • 2,627Thanks
    Man vs Mortgage
    • #1
    • 1st Mar 16, 7:18 PM
    Man vs Mortgage 1st Mar 16 at 7:18 PM
    Come on in and put your feet up!

    The aim is to be Mortgage Free by May23 - the same month I turn 40!

    I purchased a lovely flat in Brighton in May15, and after setting up and settling in, am ready to take on the big kahuna.

    I'm really fortunate that I am healthy, single (I'm 32), have a great job I enjoy close to where I live and can spend a lot of my time training for triathlon.

    I'm an analyst by trade, so I've crunched the numbers and here is what I found most interesting;
    1) I can take my mortgage from 30 years to 8 by overpaying and be Mortgage Free by 40!
    2) Using that plan (carved out in detail by month in Excel), every extra £1 I can save this year will save me £1.30 over the mortgages life.

    I have to say I'm being quite thrifty here and giving myself £10 a day to live off and £200 a month for fun money. I keep an Emergency Fund of £2k in my spare account so I can cover breaking my mac/iphone/bike etc.

    I've been through all my monthly and annual expenses and optimised them to within an inch of their lives!

    Finally, I'm buying the freehold of my flat with the other leaseholders (update - completed Apr16).

    My hopes are that I can achieve this and then spoil myself and my parents afterwards.

    My fears are that I spent my 20's scrimping to pay off my student loan and then saving for my own flat deposit - that I will end up doing the same in my 30's and never living!!!

    All thoughts/experiences/advice welcome

    Original Targets
    May15 Mortgage - £185k | Dec16 - £162k | Dec17 - £142k | Dec18 - £120k | Dec19 - £97k | Dec20 - £73k | Dec21 - £46k | Dec22 - 18k | May23 - £0 Mortgage Free at 40 in May23!
    Last edited by rasputin_thorpedo; 17-12-2016 at 12:09 PM.
    May15 Mortgage - £185k | Dec16 - £157k | Dec17 - £135k | Dec18 - £113k | Dec19 - £90k | Dec20 - £66k | Dec21 - £40k | Dec22 - 12k | May23 - £0 Mortgage Free at 40 in May23!
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    • rasputin_thorpedo
    • By rasputin_thorpedo 13th Jul 17, 8:57 PM
    • 387 Posts
    • 2,627 Thanks
    Hi all,

    Firstly, THANK YOU to everyone who read my last post and to those who left a comment. I'm not ashamed of leaving my May23 goal behind, but as with anything you work towards it's still there in my DNA. It's okay though, and we move onwards

    A handful of you commented on having £300 (£400 once I've paid off a loan I took out earlier this year to leverage my mortgages LTV and secure a fantastic rate) a week pocket money. I can freely say that it hasn't been hard to spend it this month, if anything my mindset has been TO spend it. I have, in these first two weeks of July, re-acquainted with friends, taken the friends who helped me out for dinner, beers and/or experiences. I have made myself splash out on some home stuff, new clothes, tri kit.

    And the result?

    It's nice. But it's not life changing. Other than treating my closest friends, it's been fun to pass the time but that's all. Stuff I buy just clogs the flat up and I have to get ride of other stuff in return to keep space free. Beers are fun at the time, and I had forgotten the ways of the 'pub friend' who is always there when it's my round and never seems to be theirs...

    The best thing I have done this month is visit the Escape Rooms in Brighton - if anyone has not heard of these, you are locked in a room for 1 hour with one starter clue and a series of tasks to work out/complete/solve etc - these have been ABSOLUTELY fantastic.

    So I resolve that while I will be a lot more flexible with the spending, it certainly won't be squandered. I will spend on experiences, and the odd job at home - if there's cash left, it goes into a holding account until I decide to put more towards the Loan (taken out to lower the mortgage LTV), £10k Premium Bonds goal, Mortgage or something else.

    This month I reckon I will have £200 spare as it is payday in two weeks and I don't think I can go out and spend all the cash I have allocated to myself as pocket money - NOT a gloating comment, I am just learning how to manage all this...

    SSS - I have let lunch cash go this month, and have been back on it already tonight making meals for tomorrow and preparing a shopping list for Saturday. The waters have calmed and I've got going out every night out of my system, back to meal prep Upside of that is it was good to have a reminder how piddly lunch portion sizes are and how much they are. £7.20 for a chicken burrito!? That can make me three BIG lunches from home.

    Haha, I already feel like my old self again.

    Frugal wins this fortnight:
    - First overpayments on the loan were received by loan company Because they added interest up-front every payment I make gets extra - e.g. I pay £100, they deduct £110 or whatever number to account for the interest they shouldn't have charged. Fun but keeping this at round £100's will now be impossible :'(
    - Have set up a new sinking fund for the lease extension on my flat. I own the freehold too, so that won't be legally problematic - I just know that I have to renew the lease before 2050, so I have set up a new e-savings account and a direct debit for £5 a month so when I get closer, that will be covered (even if partly)
    - I've also considered setting up similar sinking funds for the big things in life that WILL go wrong for me, these things being bike sinking fund (it will get stolen), phone sinking fund (it will get lost/smashed/stolen/lost), laptop sinking fund, holiday sinking fund (I already do this but it will move banks), is there anything else to consider here? I don't have a car. Maybe the boiler? I'm not sure here - I have a £1k Emergency Fund in place, and I am saving my £10k. Ugh, over analysing again. Just the Lease Extension fund needed for now... let's get the loan paid off and the £10k storm fund covered first

    That's everything that's in my head for now. I have a few things to look forward to in the first couple of weeks in August: Brighton Pride (PET SHOP BOYS LIVE!), A Midsummer Nights Dream and Fiddler on the Roof. But the next two weeks should be just what I need - peace and quiet.

    Early bed tonight The house is cleaned and the washing machine is nearly done

    MvM x
    May15 Mortgage - £185k | Dec16 - £157k | Dec17 - £135k | Dec18 - £113k | Dec19 - £90k | Dec20 - £66k | Dec21 - £40k | Dec22 - 12k | May23 - £0 Mortgage Free at 40 in May23!
    • Busy Mee1
    • By Busy Mee1 14th Jul 17, 7:16 AM
    • 333 Posts
    • 1,134 Thanks
    Busy Mee1
    Hi MtM I have been reading along with interest and it seems to me that you have developed a really healthy approach to your MF journey. I think "going hardcore " as you did initially has been really helpful in giving you the knowledge of what matters to you in terms of spending and I think what you have discovered is that being savvy with money gives you choices. Already you have decided that although you have £400 "spending money" that it is a waste buying lunches, because it is expensive and you just don't get the quantity and quality you get if you make it yourself. I think this journey really helps us to focus on what we want to spend our money on and what is simply a waste of money.
    My approach it to try and have balance. We don't waste money, we try and save as much money as we can for our retirement (which is looming for OH) but we do spend money on the stuff that matters to us, family and travelling. I didn't have the opportunity to travel when I was young ( married at 19, 15% mortgage interest rates and then kids ) and therefore I feel like I need to do it now while we are still fit and able. If I was in your shoes that is what I would be doing with my spare money, I would be trying to travel and get as many fantastic experiences as I can. I can honestly say that I have never felt like any money spent on travel has been a waste, but I know this might not be for everyone. You are already finding out where you want to spend your money and where you don't .

    Best of luck with it all, I look forward to reading about what you get up to : )
    • EatingTheElephant
    • By EatingTheElephant 14th Jul 17, 7:17 AM
    • 1,036 Posts
    • 5,443 Thanks
    Great to see you back, I've just caught up with your recent posts. Fantastic work on getting the mortgage rate down.

    I'm definitely with you on the whole experiences vs stuff thing and I think money spent on experiences will be memories banked for life.

    Good luck with your new goals, which I am sure you will smash.
    • shangaijimmy
    • By shangaijimmy 14th Jul 17, 7:31 AM
    • 2,000 Posts
    • 8,495 Thanks
    You'll get the balance just right. ~Think of it in terms of percentages. 33% towards debt, 33% towards living costs, 33% towards savings/retirement (i split this block to 15% retirement and 18% cars/holidays/kids university etc...). This may be a method that works for you.
    MFW: Turning June 2036 into March 2023...
    28//120 Payments Challenge, Diary Reduction £29,621.76
    Aug 2009: £163,051 // Current: £106,378.27 // Avg Daily Interest £4.78
    MFiT-T4 #8 - 42.45% of £41,000
    • Mortgagefreeby50
    • By Mortgagefreeby50 14th Jul 17, 7:42 AM
    • 497 Posts
    • 1,901 Thanks
    Great to see you posting again! I'm sorry that the relationship didn't work out, definitely his loss. I liked the checklist of financial things to get in order, I have taken a screenshot and will get planning. It does worry me that we don't really have any savings. Assets, yes, cash savings, no.

    Keep posting, your enthusiasm is infectious!
    Slow progress is better than no progress.
    • museumworker
    • By museumworker 15th Jul 17, 9:54 AM
    • 1,808 Posts
    • 10,355 Thanks
    It's good to take a break from MSE ways sometimes, and check whether we need to adjust our money mindset. Experiences, family time and travel are very important to me. I count eating out as an experience only if it's something I really enjoy, rather than just needing to eat because I'm hungry! Sounds like you have a lovely August planned, enjoy!
    Mortgage 16/03/2011: £190K 01/01/2017: £107,729.65 01/07/2017: £95,979.89
    OPs 2011-2016 = £45K 2017 OPs = £9250.20
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