Shouldi - Mfw 2009

StuartGMC

I'm pleased you spent the time on collating your data for the spreadsheet and hope it has given some good pointers to the way ahead. Best wishes for the plan.

setmefree2

and

SHOULDI

Hi SetmeFree2.

Thanks for the good luck. You are my inspiration!

Looking at your signature, You were in a very similar position to us when in 2003 your mortgage was £250k.

I would love to hear more on how you went about cutting your mortgage in half in less than 5 years! Congratulations! :money:

I'm hoping with BoE rates (& Libor) relatively low I can chip away at it as much as you have in the past 5 years.

Question, Overpay every penny we can for 5 years or Offset and potentially look at investments? (I already have a tidy rainy day fund put aside).

SmileyG_2

SHOULDI wrote: »

Hi SetmeFree2.

Thanks for the good luck. You are my inspiration!

Looking at your signature, You were in a very similar position to us when in 2003 your mortgage was £250k.

I would love to hear more on how you went about cutting your mortgage in half in less than 5 years! Congratulations! :money:

I'm hoping with BoE rates (& Libor) relatively low I can chip away at it as much as you have in the past 5 years.

Question, Overpay every penny we can for 5 years or Offset and potentially look at investments? (I already have a tidy rainy day fund put aside).

Hiya SHOULDI

What a great question. I guess it depends on your attitude to risk. I have an endowment that is very unlikely to achieve its target and may struggle to make 80% of its original target. To cover the shortfall I have been investing approx 50% cash and 50% stock market. But it's not the stock market that's letting me down, it's the returns on cash. As I am currently locked into a fixed rate, it's the reason why I have decided to start overpaying the mortgage.

I will continue to invest, but I do have a worst case scenario at which point I would convert the investments into cash and use the cash to pay down the morrtgage. I am comfortable with the risk (24 years of stockmarket investment has taught me a lot, including never buy an endowment!) so if you feel the same I would do it.

Make sure your expectations are realistic though when you choose your investments!

SmileyG

Floxxie

SHOULDI wrote: »

Spreadsheet has taken some time but have put in as much information as I can get from receipts, payslips, Direct Debits, estimates and previous costs.

All in all, I think I am ready for the challenge. I have got all the tools, will power, OH on side and a plan for overpayments.

Now for the execution. Let's hope for a successful 2009 and a life towards becoming MF!

I have decided to use slow stoozing (0% credit card).

Two things to look at while I am off this week:

1. Cut down my electrical usage. I.e. Look at what is left on standby in the house
2. Looking at making some money using Bingo cards and onine clicks.

Has anyone got any quick tips to get me started or any other money saving ideas I can use while I have a few days off to look at them?

Thanks.

Well done on getting organised!

Bingo cards and daily clicks are ok for gap-filling but perhaps you could look at other money-making ideas such as match betting and selling your stuff on eBay? There are several threads on the gambling board (no it's not gambling!) and there is an eBay board.

As for money saving, check out the OS board and the 'live off £4k a year' on the DFW board. I'm sure that you have checked your utilities to make sure you have the best deals - don't forget to use cashback sites to get extra money.

There is a great deal that you can do but don't try and do it all at once. Even doing one or two things can make an enormous difference.

Good luck!

Floxxie

SHOULDI

Great advice. Trouble is, The stock market scares the life out of me. I once brought Lastminute.com shares (around 10 years ago) when they floated and got only £140 worth. They didn't do very well and have never looked at it since. I can see the rewards are there for those willing to risk their money, but as they say, don't risk what you wouldn't mind losing. Good advice.

I'm not saying never, but how do you know a good investment in today's climate? I can't see the logic in it. No company is safe, so to me it is just a pure gamble. Even the big companies who you expect to survive anything (Lehmans etc) if they go, what chance do I have? :rotfl:

SmileyG wrote: »

Hiya SHOULDI

What a great question. I guess it depends on your attitude to risk. I have an endowment that is very unlikely to achieve its target and may struggle to make 80% of its original target. To cover the shortfall I have been investing approx 50% cash and 50% stock market. But it's not the stock market that's letting me down, it's the returns on cash. As I am currently locked into a fixed rate, it's the reason why I have decided to start overpaying the mortgage.

I will continue to invest, but I do have a worst case scenario at which point I would convert the investments into cash and use the cash to pay down the morrtgage. I am comfortable with the risk (24 years of stockmarket investment has taught me a lot, including never buy an endowment!) so if you feel the same I would do it.

Make sure your expectations are realistic though when you choose your investments!

SmileyG

SmileyG_2

SHOULDI wrote: »

Great advice. Trouble is, The stock market scares the life out of me. I once brought Lastminute.com shares (around 10 years ago) when they floated and got only £140 worth. They didn't do very well and have never looked at it since. I can see the rewards are there for those willing to risk their money, but as they say, don't risk what you wouldn't mind losing. Good advice.

I'm not saying never, but how do you know a good investment in today's climate? I can't see the logic in it. No company is safe, so to me it is just a pure gamble. Even the big companies who you expect to survive anything (Lehmans etc) if they go, what chance do I have? :rotfl:

Hiya SHOULDI

You've told me everything I need to know.

If you're not comfortable with the risks in the stockmarket, don't play in it. Throw your money at the mortgage, at least you will sleep at night.

As Warren Buffett says: "Don't buy anything you don't understand."

SHOULDI

I can't beleive two months have passed by...

Well, what has happened with my Money Saving challenge... I must confess, the spreadsheet has not been updated and I have gone back to spending on what I need rather than planning in advance.

On the plus side, I have used a cashback site and made £60 and also did a focus group which made me an additional £60.

My mortgage has changed in January to First Direct and I am on their tracker rate of 1.49% + BoE rate. So very pleased to be on a rate of 1.99% currently.

Also, I have increased my monthly DD payment into my mortgage to £2000. So that makes £24,000 per year minus Interest payments of approxiamtely £400-£500 per month (variable).

I must admit, i'm finding it really difficult to keep motivated through this journey but I am determined to make it happen!

setmefree2

well done on your progress so far. Keep going. :T

RosieTiger

I must admit, i'm finding it really difficult to keep motivated through this journey but I am determined to make it happen

Join in the challenge and use everyone else as your inspiration - the term length reduction and interest saving will make it all worthwhile !:T