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  • FIRST POST
    • PennyJar
    • By PennyJar 20th Jul 16, 9:43 PM
    • 114Posts
    • 293Thanks
    PennyJar
    Penny by penny...brick by brick!
    • #1
    • 20th Jul 16, 9:43 PM
    Penny by penny...brick by brick! 20th Jul 16 at 9:43 PM
    Hi everyone,

    This is the start of my fledgling MFW diary

    Little bit about me...I'm 33, happily married and and have a 5 month old daughter.

    I seen the light a couple of weeks ago - thanks to the MSE overpayment calculator and have been constantly thinking about how I'm going to put our plan into action ever since.

    Whilst the overarching goal is to be MFW - as a family we are also looking to purchase our second home within the next year or so. But I figured still paying off the mortgage to better the LVT is a win win situation

    I have a 3 point plan:

    1) Overview finances and set up weekly budget cash envelopes (complete)
    2) Save a £3000 emergency fund (with plans to continue adding to the pot whilst OP)
    3) Start OP mortgage with as much as possible (to reach 10 year MF goal)

    I'll provide a SOA tomorrow...with more details about the nitty gritty and I would greatly appreciate feedback/tips from the MSE community on ways I could potentially better any part of my approach.

    This is such a great opportunity and I'm so ready to take on this challenge. So please feel free to join me, in the quest for freedom
    Debt Free - 2011 (£15, 000) | MFiT - T4 #78 £0/£20,000 (Mortgage reduction target)
    Mortgage Free Goal - 2026 (£101, 062) | #198 Emergency Fund Challenge £500/£1000
    Massive fan - thank you for changing the game!
Page 4
    • zcrat41
    • By zcrat41 13th Aug 16, 7:20 AM
    • 1,400 Posts
    • 3,840 Thanks
    zcrat41
    Hi Penny,
    Just a thought with the private healthcare thing. I thought if you were diagnosed with something you can just say hang on, what's the cost of going private. My dh was diagnosed with testicular cancer on the Monday. He was quite prepared to pay and asked the consultant could he go private. The consultant said of course you can. (He also said that the op was going to be 2 days later anyway and going private would only get you an earlier appt and a nicer bed). Point being if you don't have bupa but save up you're self insuring.
    Maybe worth thinking about.
    • PennyJar
    • By PennyJar 13th Aug 16, 7:54 PM
    • 114 Posts
    • 293 Thanks
    PennyJar
    Wow Gallygirl that's what I call 'good' Anything worth more than a fiver I would class as good ha ha maybe I'll give the other 190 odd pgs a good look
    Debt Free - 2011 (£15, 000) | MFiT - T4 #78 £0/£20,000 (Mortgage reduction target)
    Mortgage Free Goal - 2026 (£101, 062) | #198 Emergency Fund Challenge £500/£1000
    Massive fan - thank you for changing the game!
    • PennyJar
    • By PennyJar 13th Aug 16, 8:04 PM
    • 114 Posts
    • 293 Thanks
    PennyJar
    Hey ZC,

    Thanks for the post I really hope DH is doing ok and all goes well...I agree with what you've said actually, because even with the insurance when I have used it there's always £150 excess charge anyway. Will have a serious think about it...I think it's a comfort blanket really (an expensive one at that).

    Awe thinking of you and DH
    Debt Free - 2011 (£15, 000) | MFiT - T4 #78 £0/£20,000 (Mortgage reduction target)
    Mortgage Free Goal - 2026 (£101, 062) | #198 Emergency Fund Challenge £500/£1000
    Massive fan - thank you for changing the game!
    • zcrat41
    • By zcrat41 14th Aug 16, 6:23 AM
    • 1,400 Posts
    • 3,840 Thanks
    zcrat41
    Thanks Penny. I should have said this was 3 years ago now and he's got the all clear after the op so all is good. It is why we have our children so close together though - after one was removed we thought it might take extra long - it sleeker to have the opposite effect!!
    • PennyJar
    • By PennyJar 15th Aug 16, 11:09 PM
    • 114 Posts
    • 293 Thanks
    PennyJar
    Hi all,

    Really pleased as today I manage to add £219 to my EF pot...would have been more but had gas/elec switch bill which came out this month (£300), but at least long term we will save money.

    Hoping to reach at least £600 by next pay day.

    Also did apply to become a mystery diner today lol submitted my written piece and will update you if I am successful or not, and whether I'm going to give it a go - still slightly unsure about it to be honest.

    Also slowly progressing with OnePoll, but not had any feedback from Pinecone Research even though I've already done three studies (emailed them - so await a response on what's what).

    Finally, had such a good 'yellow' sticker day at M&S today (3:00pm) with a massive haul of fresh fillets of salmon and medallions for £0.90 to £1.35. As well as other brilliant steals - my freezer is now chocker-blocker!

    Hope all is well with everyone.

    PennyJar
    Debt Free - 2011 (£15, 000) | MFiT - T4 #78 £0/£20,000 (Mortgage reduction target)
    Mortgage Free Goal - 2026 (£101, 062) | #198 Emergency Fund Challenge £500/£1000
    Massive fan - thank you for changing the game!
    • gallygirl
    • By gallygirl 16th Aug 16, 12:29 AM
    • 16,046 Posts
    • 105,244 Thanks
    gallygirl
    Wow Gallygirl that's what I call 'good' Anything worth more than a fiver I would class as good ha ha maybe I'll give the other 190 odd pgs a good look
    Originally posted by PennyJar
    The grown-up in me feels obligated to point out your time would be far better spent investigating where to invest your pension etc. Sorry
    A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
    Mortgage Balance = £0
    "Do what others won't early in life so you can do what others can't later in life"
    • PennyJar
    • By PennyJar 16th Aug 16, 10:44 AM
    • 114 Posts
    • 293 Thanks
    PennyJar
    Hi Gallygirl,

    I don't currently have a pension if I started one at 33yrs when would I be able to cash it out. Never considered having one - realise financially it would be beneficial.

    Last question, you may be able to help with - if we are currently happy with an approx £40k annual income - how much would we need to invest for pension, or be financially independent?

    Thanks,
    PennyJar
    Debt Free - 2011 (£15, 000) | MFiT - T4 #78 £0/£20,000 (Mortgage reduction target)
    Mortgage Free Goal - 2026 (£101, 062) | #198 Emergency Fund Challenge £500/£1000
    Massive fan - thank you for changing the game!
    • MissCreative
    • By MissCreative 16th Aug 16, 11:50 AM
    • 81 Posts
    • 125 Thanks
    MissCreative
    Hi PennyJar,

    Not sure on the exact amounts because it will depend on what you can put away in to your pension each month (though the more you can put away the more you'll have later in life obviously!)

    You should definitely read Mr Money Mustache's website - he and his family became financially independent by saving a lot of their income and he a few posts on how how he did it, about finiancial markets, and how to calculate what you'd need to retire with/become financially independent.

    http://www.mrmoneymustache.com/2013/02/22/getting-rich-from-zero-to-hero-in-one-blog-post/

    You can have a google for other retirment calculators too
    Originally October 2042 // Goal December 2024
    Current total overpayments: £5902
    December 2014: £155,000 // December 2015: £149,307.31
    Currently: £144,245.08
    Short term goal: £139,999.99 by Jan 17
    • zcrat41
    • By zcrat41 16th Aug 16, 7:32 PM
    • 1,400 Posts
    • 3,840 Thanks
    zcrat41
    Work backwards PennyJar. I.e. I add up what I need to live on to be happy and that's what I draw from out business. (In the good years, anyway.) So I add up my bills, food, contingency fund, holidays etc. I guess in retirement I'd add in any support I want to give adult kids etc. Then work out how much I'd need to invest to get that figure.


    I.e. We between us spend about £1600 a month on bills and essentials. In retirement I can't see that changing much (we don't have a mortgage on the main house). So therefore a round figure of £750k will give a rough 3% return which is £1875 pcm that's not far off what I'd need. It's not a case of saying I'd need to save £37500 over the next 30 years though as there's compound interest which I don't always get but the basis of that is that the earlier you put money in the better.
    • PennyJar
    • By PennyJar 16th Aug 16, 8:46 PM
    • 114 Posts
    • 293 Thanks
    PennyJar
    Hi both,

    ZC thanks for post...its a lot to get my head around lol still slightly confused.com oops - so based on your example when you say to get a £1875 PCM return you would get this from total pension pot put in over working life/ or including savings up to £750k.

    Say hypothetically if I came across approx £1.5M (capital) say at retirement age, aside from pension (55-60) would I have enough to be financially independent?

    PennyJar
    Debt Free - 2011 (£15, 000) | MFiT - T4 #78 £0/£20,000 (Mortgage reduction target)
    Mortgage Free Goal - 2026 (£101, 062) | #198 Emergency Fund Challenge £500/£1000
    Massive fan - thank you for changing the game!
    • PennyJar
    • By PennyJar 16th Aug 16, 8:54 PM
    • 114 Posts
    • 293 Thanks
    PennyJar
    Hi MC,

    Thank you I'll have a look at that...I find it hard to look to the long term future- I purposely avoid it, or put it off. For personal financing I can only look perhaps 10 years ahead comfortably at the moment which is where my MFW goals sit.

    It is interesting mind...

    PennyJar
    Debt Free - 2011 (£15, 000) | MFiT - T4 #78 £0/£20,000 (Mortgage reduction target)
    Mortgage Free Goal - 2026 (£101, 062) | #198 Emergency Fund Challenge £500/£1000
    Massive fan - thank you for changing the game!
    • PennyJar
    • By PennyJar 16th Aug 16, 10:52 PM
    • 114 Posts
    • 293 Thanks
    PennyJar
    Good news - Pinecone Research have got back and I've got £9 for 3 surveys. So really pleased with that :-)
    Debt Free - 2011 (£15, 000) | MFiT - T4 #78 £0/£20,000 (Mortgage reduction target)
    Mortgage Free Goal - 2026 (£101, 062) | #198 Emergency Fund Challenge £500/£1000
    Massive fan - thank you for changing the game!
    • MissCreative
    • By MissCreative 17th Aug 16, 11:20 AM
    • 81 Posts
    • 125 Thanks
    MissCreative
    What ZC is saying is with £750,000 in the bank you could live off the interest at 3% (because she's calculated how much they need per month to live on)

    Basically, if you had £1.5m in a bank account with 3% interest, you'd be able to take out the interest (£45,000 a year) and live on that, without ever touching the £1.5m itself.

    If £45,000 is enough for you to live on and you have £1.5m in the bank, then that's great. If you only need half of that to live on, you could only need £750,000 in the bank.

    BUT, if that capital is also locked away in a house, you can't live on it because it's not earning you annual interest you can live on.

    Even though you don't like planning ahead, if you want to be financially independent you need to read up on the basics. A lot of blogs explain it in simple terms so it would be good to start simply and work up to understanding more and more.

    You just have to know about compound interest and investments to actually take action.

    I'm in the process of learning a lot about this myself and starting to take action, so you're not alone
    Originally October 2042 // Goal December 2024
    Current total overpayments: £5902
    December 2014: £155,000 // December 2015: £149,307.31
    Currently: £144,245.08
    Short term goal: £139,999.99 by Jan 17
    • BBH123
    • By BBH123 17th Aug 16, 3:15 PM
    • 96 Posts
    • 107 Thanks
    BBH123
    Hi all,

    Loving the thread and everyone's financial endeavours

    Have to echo the thoughts of others in that pension is the first consideration of financial planning and security. It may be the best way of saving anyway with the tax relief.

    When I was your age PJ I never thought about the future but now i'm 50 I cant tell you how quickly that time has gone and thank goodness I have a solid pension behind me.

    It really bought it home to me a few months ago when I was in our local supermarket , Mr T, and there was a guy who looked about late sixties early seventies scrabbling on the floor with huge heavy boxes of large soft drinks and this baco suited kid came over and said ' come on hurry up with those thers's more out the back' and the guy turned round and looked absolutely broken. I vowed I would never be that guy.

    Saving for a forever home is great and you need to think about how you are going to run it on nothing but a state pension ( if its still around ) when you do retire. Otherwise you will have to sell the home you are saving so hard for just to have money to live.

    You are in a far better situation than most with your disposeable income and presumably even more when hubby gets back to work I think you should get some sound financial advice to really make sure you are doing things the best way.

    Good luck I'm loving your enthusiasm and I really believe if you want something badly enough you'll always get it. xx
    • PennyJar
    • By PennyJar 17th Aug 16, 6:49 PM
    • 114 Posts
    • 293 Thanks
    PennyJar
    Thanks for all your advice ... really appreciate every ones input. I'll have a look into a pension when I return to work from Mat leave.

    Hope all is well with everyone.

    PennyJar
    Debt Free - 2011 (£15, 000) | MFiT - T4 #78 £0/£20,000 (Mortgage reduction target)
    Mortgage Free Goal - 2026 (£101, 062) | #198 Emergency Fund Challenge £500/£1000
    Massive fan - thank you for changing the game!
    • PennyJar
    • By PennyJar 28th Aug 16, 9:50 PM
    • 114 Posts
    • 293 Thanks
    PennyJar
    Hi all,

    Been away for a lovely week away in Cornwall and really enjoyed myself...savings this month will probably be minimal - but I did manage to clock up some good pounds on the surveys when I had a spare (6hrs stuck in traffic! LOL!

    Also I've been accepted to be a mystery diner hooray...so looking forward to my first venture out there ha ha.

    Hope all is well,

    PennyJar
    Debt Free - 2011 (£15, 000) | MFiT - T4 #78 £0/£20,000 (Mortgage reduction target)
    Mortgage Free Goal - 2026 (£101, 062) | #198 Emergency Fund Challenge £500/£1000
    Massive fan - thank you for changing the game!
    • lincoln-potter
    • By lincoln-potter 2nd Sep 16, 12:48 PM
    • 732 Posts
    • 3,893 Thanks
    lincoln-potter
    Hey Penny,

    I've been a little lazy and not come online for a while and just seen your message on my diary so thought I'd pop along and see how you are getting on.

    You mentioned LED bulbs, did you end up getting yours sorted in the end?

    Diary looks to be going well though!

    All the best
    LP
    Mortgage (MF Target 2019)
    2011 - £195,757
    Current - £89,650
    Stoozing total - Starting soon

    • PennyJar
    • By PennyJar 18th Oct 16, 10:11 PM
    • 114 Posts
    • 293 Thanks
    PennyJar
    Hey,

    I'm ok - I've been really quiet too...I had a tough couple of months because my maternity pay dropped well below what I had anticipated. We also had quite a considerable number of expected costs which wiped us completely out (one of the main reasons I am determined to get my emergency fund in place)...to be honest it felt like we were going a million steps backwards and each day away from pay day seemed like a lifetime away...but thankfully I'm now back to normal pay (hooray!!!) and back on track with my goals.

    So plans still are to get £3,000 emergency fund by December

    One new goal is to save £1, 500 towards legal fees towards a new house...

    Then to start OP mortgage in January...

    Loads more to update on but will do a few posts over next couple of days...

    PennyJar
    Debt Free - 2011 (£15, 000) | MFiT - T4 #78 £0/£20,000 (Mortgage reduction target)
    Mortgage Free Goal - 2026 (£101, 062) | #198 Emergency Fund Challenge £500/£1000
    Massive fan - thank you for changing the game!
    • PennyJar
    • By PennyJar 20th Nov 16, 7:42 PM
    • 114 Posts
    • 293 Thanks
    PennyJar
    Hey all,

    Been so busy since returning to work and juggling being a new mammy.

    On track with the savings plan now despite set backs, but I've slightly changed my goals. I want to save £3, 000 contingency fund (as a starting point) and £7, 000 (legal/moving fees). Then when £10,000 established I will look to start overpaying the mortgage.

    I've also made a 100 squares chart with 1% being £100. So me and DH will be colouring them in as we go.

    Like to do a big shout out to MSE and say a big thank you because we also recently qualified for marriage tax allowance as per MSE Newsletter and have just had £211 transferred to account for 15/16, with a further £232 less tax to pay between now and April! So grateful and it all helps - 4 more squares to colour in - fab!!!

    Mystery Dining Company - I had two lovely meals at Zizzi and Prezzo and was refunded £70 for two short reports - so pleased for that. No other mystery dines are available yet - but will keep you posted.

    The envelopes are still working well for us...

    I'm itching to OP, but if we move within next year I don't want to add any fees to the existing mortgage. Think I'm doing the right thing here...but would welcome any advice!

    Hope everyone is well and on track with their financial goals...

    PennyJar
    Last edited by PennyJar; 20-11-2016 at 7:45 PM.
    Debt Free - 2011 (£15, 000) | MFiT - T4 #78 £0/£20,000 (Mortgage reduction target)
    Mortgage Free Goal - 2026 (£101, 062) | #198 Emergency Fund Challenge £500/£1000
    Massive fan - thank you for changing the game!
    • PennyJar
    • By PennyJar 25th Nov 16, 9:03 PM
    • 114 Posts
    • 293 Thanks
    PennyJar
    Hey all,

    So this week I've put my old mobile on eBay and should hopefully get about £100 which I'll add to the savings pot.

    Also we've been really careful this month and have no unforeseen expense - hopefully (as you never know).

    I've been progressing well with OnePoll and I'm hoping to cash out £40 in next week or so. Also, I did two questionnaires with Pinrconeresearch and have £6 to cash out too.

    Also just to update you - I finally got my free smart meter installed to help with gas elec bills. But I've still not cracked being able to use less - other than keeping heating on minimal levels and changing some bulbs to LED.

    I keep focusing on 1%s (£100) as it feels more achievable...

    That's all for now.

    PennyJar
    Debt Free - 2011 (£15, 000) | MFiT - T4 #78 £0/£20,000 (Mortgage reduction target)
    Mortgage Free Goal - 2026 (£101, 062) | #198 Emergency Fund Challenge £500/£1000
    Massive fan - thank you for changing the game!
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