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    • Financialfreedom
    • By Financialfreedom 6th Sep 17, 9:02 PM
    • 15Posts
    • 16Thanks
    Financialfreedom
    5 year plan
    • #1
    • 6th Sep 17, 9:02 PM
    5 year plan 6th Sep 17 at 9:02 PM
    Having achieved all the usual aims of house, job, family etc. I am now in desperate need of a new 5year plan! So instead of upgrading my lifestyle, I'm keen to follow the motto of 'same house, same spouse, same car' to take us to a mythical place known as 'mortgage free living'. Having scrimped by for years living pay check to pay check whilst paying out vast sums for the kids nursery, we are now back in the land of financial comfort and able to enjoy all the little extras, like a new car, bigger house, more holidays etc. Sounds great, but it's comes at a price. The rat race! And I am asking myself the question of whether I want to work for the next 30 years in a 9-5 office job with 25 days holiday. Maybe not...

    I have been reading these forums and the idea of being mortgage free is an exciting concept. My partner and I are in the position we can live off one wage (frugally) and save the other. Putting the spare cash into savings, house renovations, holidays AND have spare to pay off the mortgage. Mainly possibly because of low interest rates and no more school fees.

    As much as I want all the material things in life, like a new sofa, huge house and bigger garden, the idea that I can still have all that in 5 years when I am debt free and have savings is a massive appeal. I also need to think about splitting between house payments, savings and investments.

    Having done the maths, I believe I can make regular overpayments on my mortgage by next spring of up to £2k per month (still less than childcare fees! It really has been tough...) and have some cash saved up.

    Over 5 years, that's £120k off the mortgage without any consideration to pay rises or bonuses. I haven't factored in overpayment charges, my mortgage allows up to 10% overpayment per annum. Anything over that will be saved and repaid at the end of each mortgage term.

    I have never saved in my life, so this will be a novel and trying experience, so please do send lots of saving tips my way!

    Step one - remove bank cards from wallet and accept cash allowance of £500 per month from OH...
Page 2
    • Financialfreedom
    • By Financialfreedom 12th Sep 17, 9:18 PM
    • 15 Posts
    • 16 Thanks
    Financialfreedom
    An update on spending - my OH and I are really getting into this saving malarkey! (Seriously, we have never saved any money before, relying on bonuses for holidays and paying off cards etc.) So the big thing I have noticed is our food - reducing the nipping to the shops, takeaways and convenience food is a must to save. So now that every night is a home cooked meal, we are healthy living whilst we save. Big bonus!

    We get a box of veg delivered by a local farmer bi-weekly, which is all seasonal and always a bit of a challenge to manage meals with (Kale and rainbow chard?) But now we have to be more economical, everything is being used up. Though meals are now rogue attempts at classics (tonight's chilli con carne featuring kale, aubergine and lentils actually a total hit with the kids), and definitely our biggest challenge on the frugal front to date.

    If anyone has any frugal food hacks to try, please share!
    • Dragonrider
    • By Dragonrider 12th Sep 17, 9:26 PM
    • 141 Posts
    • 630 Thanks
    Dragonrider
    Hi Financialfreedom,

    I'm at the beginning of a 5 year plan too, although you're aiming to OP 10 times what I can

    Ah well, it's all relative!

    I'll be following your progress,

    Dragonrider
    Goal = to get under £300k by Aug 2022 (by reducing the balance by £1k per montb - this needs an OP of £200 per month)
    Sept 2017 -£359,337.18
    Monthly interest £792.22
    Daily interest £25.56
    • Financialfreedom
    • By Financialfreedom 12th Sep 17, 10:45 PM
    • 15 Posts
    • 16 Thanks
    Financialfreedom
    Hi dragonrider! I just caught up on your post. Exciting times! My first OP happens this month I am building up cash reserves mainly, but wanted to start small inroads into repayments of £300 per month and will slowly increase over the next year each quarter.

    Good luck with yours!
    • Betterthanever
    • By Betterthanever 13th Sep 17, 7:37 AM
    • 356 Posts
    • 1,480 Thanks
    Betterthanever
    These Five years are going to fly by! We are so on it!!!

    Current balance £115,428.65. Offset £1,775.31. £113,653.34 needed to be mortgage neutral!
    End date - 03/29 but aiming for 10/22
    Money for Nothing pot = £392.99
    Former DFW Nerd 230. Determined to be MF. Bring it on!
    • Financialfreedom
    • By Financialfreedom 13th Sep 17, 9:27 PM
    • 15 Posts
    • 16 Thanks
    Financialfreedom
    Hi everyone! I am in need of tips for saving apps and cashback schemes you all seem to use. Betterthanever, what is Shopium?

    Alas, I have had set backs this week on the coffee front. No milk at home, so bought out twice, and down £3.50. It's not all bad though, as I have kept to my lunch budget and not bought anything else all week (except more milk!).

    Hair cut this month will be my biggest outgoing, and a night out with friends. With lunches, food etc. I am set to underspend this month by £150, which I will set aside for Christmas.
    • Betterthanever
    • By Betterthanever 13th Sep 17, 9:31 PM
    • 356 Posts
    • 1,480 Thanks
    Betterthanever
    With shopmium you download the app from your app store and it gives you some items you can buy and get refunded in full from certain stores and others that are money off. You just upload a pic of your receipt and they pay the money into your account within 48 hours. Superb!!

    If you refer friends you can get £4 per referral once they start. My referral code is ha2d6 if you want to use it....and then you get to refer others and get the extra yourself too!!

    Current balance £115,428.65. Offset £1,775.31. £113,653.34 needed to be mortgage neutral!
    End date - 03/29 but aiming for 10/22
    Money for Nothing pot = £392.99
    Former DFW Nerd 230. Determined to be MF. Bring it on!
    • Betterthanever
    • By Betterthanever 13th Sep 17, 9:36 PM
    • 356 Posts
    • 1,480 Thanks
    Betterthanever
    And if you want me to refer you to swagbucks, send me a PM with your email address and I shall do so....I've withdrawn £10 in my first week to PayPal quite easily.

    Current balance £115,428.65. Offset £1,775.31. £113,653.34 needed to be mortgage neutral!
    End date - 03/29 but aiming for 10/22
    Money for Nothing pot = £392.99
    Former DFW Nerd 230. Determined to be MF. Bring it on!
    • Betterthanever
    • By Betterthanever 13th Sep 17, 9:54 PM
    • 356 Posts
    • 1,480 Thanks
    Betterthanever
    Also, if you shop at Waitrose or Sainsbury's download green jinn for money off coupons. It all helps spread the shopping budget a bit further!

    Current balance £115,428.65. Offset £1,775.31. £113,653.34 needed to be mortgage neutral!
    End date - 03/29 but aiming for 10/22
    Money for Nothing pot = £392.99
    Former DFW Nerd 230. Determined to be MF. Bring it on!
    • Financialfreedom
    • By Financialfreedom 15th Sep 17, 9:08 PM
    • 15 Posts
    • 16 Thanks
    Financialfreedom
    Thanks Betterthanever. I don't have a Paypal as mine was hacked.

    Spending has been down overall. Nearly two weeks in and only £150 on shop, fuel and lunches, still on track to underspend and already have savings building up by spending only partners wage, and up on that too, so doing well overall!
    • louloubelle79
    • By louloubelle79 16th Sep 17, 10:47 AM
    • 244 Posts
    • 119 Thanks
    louloubelle79
    Reading for tips although I'm on a 9 year plan ��Just downloaded Shopmium with your referral thanks

    Ps as now joined Shopmium you can use my referral code 2t74j
    Last edited by louloubelle79; 16-09-2017 at 10:54 AM.
    Hoping to be mortgage free by 2026 age 47
    Current rate 2.79% fixed for 10 years
    Current mortgage end date: 03/10/2043
    MFW Starting Mortgage Jan 17 - £114,703
    • Financialfreedom
    • By Financialfreedom 27th Sep 17, 8:57 PM
    • 15 Posts
    • 16 Thanks
    Financialfreedom
    Having a disastrous couple of weeks on spending: Had to replace the iPad, lost my travel mug, went out with friends and got a tax bill. All in all, quite an expensive couple of weeks. Not only that, but I have to pay planning fees for our house (loft conversion), so savings are somewhat depleted, but I suppose that's why I am saving, to be able to cover the big things. However, I have been frugal and underpants on the day to day costs. So I'm going to take the positive from this and continue to be frugal where I can.
    • Silence101
    • By Silence101 27th Sep 17, 9:24 PM
    • 284 Posts
    • 433 Thanks
    Silence101
    Underpants? I'm assuming it's a autocorrect
    We had to save a bit more drastically these last few months, and it's strange to now be spending the money...
    09/17 Shared Ownership 50% share - Mortgage £77500 Original MFW 2052
    10/17 OP £108.01 /£100 11/17 £176.54/£100
    • sleepygirl126
    • By sleepygirl126 27th Sep 17, 10:06 PM
    • 273 Posts
    • 599 Thanks
    sleepygirl126
    That tickled me too! Underpants....
    Original mortgage £154,850 (2013)
    Mortgage now £148,370.15

    Original savings £0 (2013)
    Savings now £3000 in ISA and premium bonds
    £60 in mini savings pot, £600 in Xmas vouchers
    • Financialfreedom
    • By Financialfreedom 30th Sep 17, 7:47 AM
    • 15 Posts
    • 16 Thanks
    Financialfreedom
    Lmao! Was supposed to be underspend... I may have been distracted when typing. ��
    • wildesavings
    • By wildesavings 30th Sep 17, 6:59 PM
    • 170 Posts
    • 475 Thanks
    wildesavings
    Underpants �� I thought you were going off on a tangent and meant you were being 'tight' !!!
    Started my MFW journey in August 14 : £103,650
    2017 : Mortgage at 1/1/17 - £96,839 - now : £91,342 - capital reduced by £5497 so far this year
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