MFW Challenge - Completed

george_jetson

Well I've done it - from today I'm MF. Or, to be precise, the balance of the accounts linked to my offset mortgage equals the mortgage amount. I missed my initial target (MF by 40) by a year and a bit, but I've got rid of my mortgage in ten years so I won't give myself too much of a hard time.

I thought I'd jot down a few notes about how I got here and my motivation in the hope that you find it useful and hopefully encouraging.

I bought my property about ten years ago. At that time the Virgin One account as it was then was a newfangled thing. I liked the idea of it, but somehow allowed myself to be talked into an endowment mortgage by a big gobbed-financial adviser. Possibly the worst financial decision I've ever made… :mad:

My smartest financial decision was remortgaging with a fd offset mortgage (I'd been a fd customer for some time) and had that lightbulb moment where I saw my mortgage as a debt to be cleared rather than a regular bill that would be with me for most of my working life. It also helped that I saw a few Michael Ruppert clips on youtube and saw him stress the importance of getting out of debt. If you watch these videos now it's amazing how much he said is coming true. His timing may have been out a bit out, but on the substance - the price of gold and oil soaring, while property and the dollar tank - he's spot on.

Linked to the mortgage were my current account and two savings accounts. Each month I paid into one savings account a set amount specifically to drive down the mortgage. I didn't allow myself to touch the money in this one. Anything extra went into the second savings accounts which I was allowed to dip into for holidays and other 'treats'. I also got myself a Nationwide cashback credit card and put almost everything on that, just to keep money in my accounts for as long as possible.

I kept track of my progress by charting each month my mortgage interest. I found the numbers less scary than keeping track of my total debt, and it's just as satisfying watching the interest figure slowly decrease. Earlier this year I decided to cash in my endowment. After 10 years it was worth pretty much the book cost i.e. what I had paid into it. So I lost out but not too badly. That really dented the amount I owed, and working abroad for a month earlier this year pretty has pretty much taken care of the rest.

I think the key thing with becoming MF is to keep your expectations realistic. If I'd really tried I could have been MF a couple of years ago, but that would have meant missing out on some memorable holidays and other experiences. Set your sights too high, and I think you run the risk of becoming disheartened and jacking it in early.

I realise this is not for everyone, but my quest was made a lot easier by my decision not to have a car. This is a conscious thing - I've never owned one, and I find the amount friends and colleagues spend on theirs truly frightening. I joined Streetcar car club last year, and that along with my Oyster card, and bike is pretty much all I need. OK, if you don't live in London, or have kids this may not be an option for you, but I think this is the single biggest thing to have got me MF.

I would also recommend getting a breadmaker. Seriously! I think my little Panasonic has saved me a fortune over the years as it encourages me to take my own lunch into work rather than buy sandwiches every day.

Over the past few years I have often wanted to pack it in and blow the money I'd saved, but I'm so glad that I resisted that very strong temptation and stuck at it. I think everyone at some point wonders if it's worth it but I can assure you it is. It hasn't really sunk in yet what I've achieved (others have said it takes a couple of months) but for now I'm happy knowing that no-one can take away the roof over my head, and my next salary is mine to do what I please with (after I've paid the poll tax). Anyway please let me know if you have any questions, I'm off to browse Travelocity…!

shirlgirl2004

Well done :T . I have the same target as you. MF by 40 which for me is almost 2 years away. It is very achievable and we may well beat that target so it's good to read a success story.

Kavanne

Thanks! It's from this board that I've considered my mortgage as a real debt from the moment I took it out.

Congratulations to you, you are an inspiration to me at least!

kezza12

huge congrats george what an achievment, i also have the same target, for me and my hubby to be mortgage free by the time we're 40 (there's only 10 months between us). Reading what peeps like you write on these forums really inspire me to continue what we're doing. so thanks for posting:D

poppyoscar_3

Well done!:beer:

MF by 40 is out of the question for me because i'm 47! However, by 50 would be good!

PO xx

zekepes

Fantastic News!! Congratulations!! It must be a wonderful feeling

Thanks for sharing your tips and observations :money:

benbenandme

Thankyou for sharing, I love reading stories of people who've reached the goal :T :T I would love to reach mine by the time I'm 40 but realistically I'm challenging myself to reach it in 10 years-ish when I will be nearly 45 :eek:

Baileys_Babe

Congratulations George. Its a fantastic achievement.

evab_2

Well done, that's fantastic news!

setmefree2

Well done you:j:j:j:j:j:j:j

:T:T:T:T:T:T:T:T:T:T:T:T:T:T:T