How much I've gained on the Money Diet

annie-c

I'm starting this thread so that I can keep a record for myself of the savings I make as I embark on the money diet.

I came to the site looking for mortgage advice, but it's been a real eye-opener and I've begun to change my ways in so many ways.... I've even learned to cook (thanks OldStylers!!!).

One of the most important things so far is that as well as saving money, I'm also really enjoying the process. I have always been really embarassed and uncomfortable talking about money, and even the thought of going to see my bank manager would have me feeling tearful, but I'm actually enjoying haggling and getting better deals.

At first the log will probably be more about action I've taken, than about actual figures/money saved. I hope others might find it useful to see what I've done, but as an amateur to all this, I'd be really grateful for others' opinions too!

OK then:

Mortgage: I already have a good deal, but am coming to the end of a fixed-term mortgage, so I've made an appointment with my existing bank to see what they can offer. At the same time I am awaiting quotes from 2 independent mortgage brokers (including Martin's suggested London and Country), and if they are any good I'll take them with me to see if my bank can match or better the deals.

House & Contents insurance: I have a really bad deal here, so have shopped around and am awaiting written quotes before setting the wheels in motion to cancel my old policy and start afresh


Income Protection: I have no spouse or dependents so I'm taking income protection (with cover until retirement) rather than life assurance or critical illness. I already have a competitive deal, but while I was speaking to the mortgage brokers I thought it was worth checking I'm still getting the best deal out there.


Utilities: I've used Uswitch to check I'm getting the best deal on gas and electricity. I have a water meter. I've used Martin's suggestions and subscribed to call1899 for my telephone calls.

Phew! Well that's enough for today.....

Former_MSE_Forum_Manager

annie-c wrote:

I have always been really embarassed and uncomfortable talking about money, and even the thought of going to see my bank manager would have me feeling tearful, but I'm actually enjoying haggling and getting better deals

That's how a lot of people feel Annie and the change in the way you think about money is exactly why this site exists. Well done for taking the first big step and we look forward to seeing how much money you can continue to save!

annie-c

Thanks MSE Forum Manager.

Well, my first saving in cash terms is on my home and contents insurance - I've saved nearly half the annual premium, with a reduction from £470 to £237!!

I don't know whether I should feel pleased with myself for such a big saving, or stupid for paying so much over the odds in the first place!!!

divadee

annie-c wrote:

I don't know whether I should feel pleased with myself for such a big saving, or stupid for paying so much over the odds in the first place!!!

you should definately be pleased doubly so that A) you have saved all that money and you wont ever make that same mistake again now you have martins book !!!

annie-c

Thanks divadee!

Another way in which I'm saving huge amounts of money (though it's hard to know how much just yet) is by taking advice from the Oldstyle board and cooking all my meals from scratch. I used to eat mostly chilled ready meals and take-aways (so unhealthy as well as expensive!!) but now I'm loving cooking from scratch and using so much fresh fruit and veg. I don't know if I want to know how much I used to be wasting, because then I'd feel very stupid; that's another mistake I won't be making again!!!

divadee

glad to have you on board, can you keep us updated on this thread how much you save when you do your gas/elec etc.... will be nice to know how you are getting on.

[Deleted User]

I feel like you annie-c. I am almost exhilarated by this conscious effort to save money and to get back to basics.

The board is quite like an extended family, or group of friends in a community and it is filling in for something which is sadly lacking these days. It is a forum combining the wisdom of the older generation and the new ideas and enthusiasm of the younger generation. I love the give and take and the sharing that goes on.

Somehow Martin has managed to create community spirit and I and countless others have been energised by this board. I am proud to say that I am addicted to MSE and to its concepts. Thank you very very much Martin

:T :T :T :T

annie-c

Mortgage

Well, Ive had some quotes back from the mortgage brokers.

I was coming to the end of a really competitive fixed deal of 3.99%. I wasn't expecting to get anything like that as the market isn't as competitive right now, but I thought I'd see what the brokers could come up with.

MoneyExpert was a bit disappointing. They came back with 2 quotes, one with a 2 year fixed rate deal of 4.69% which I had seen myself in the newspaper tables. Their second quote was 5.49%, which is only marginally less than the SVR of 5.5% that I will move onto with my current lender!! With the arrangement fee on top, that would leave me worse off than if I did nothing! The broker also wasn't very clear about the fees position. At first he said it was fees free. When I asked for clarification he then told me about the £500 booking fee, but brushed it aside quickly as something that could be added to the loan.

London & Country were much more straightforward and clear to deal with. They explained that I couldn't get the best deals on the market because I need a loan of just over 75% LTV, but they have found a 2 year fixed deal at 4.49 with a £400 booking fee and no legal or valuation fees. A saving of around £35 per month or just over £400 per year compared to the payments I would make by staying on my bank's SVR - along with the peace of mind of knowing where I stand with fixed payments.

I'm still going to see my bank to see if they can offer anything to keep my custom, but otherwise the L & C deal certainly seems worth looking into once I get the paperwork to look through.