My MFW diary - keeping on the straight and narrow!

RoxieW

Hi all

Decided that the new years resolution is to overpay as much as poss on the mortgage and thought I'd document it here to keep me on the straight and narrow.
Bit of background- I'm 26, married with 2 ds's (6 and 4) and another due feb 15th. I've worked on and off past few years but am stay at home mum at moment (I was missing out on too much and the juggle became too difficult for all of us.) However we're lucky to still have a good income (OH's wage) and no debts, and our mortgage keeps going down at the moment so think the time is right to start overpaying.

Now for the figures -
Up until yesterday we had £55,000 outstanding on mort - 21 years left on the term.
Yesterday I made an overpayment of £8,000 :T reducing our term to 16 yrs according to the egg calculator. Very happy with this as you can imagine.

The trick is now to try to keep it up. I'm going to set up £500 monthly overpayment from Feb which will mean living within a strict budget (we're not used to doing this!!). In order to be realistic I've budgeted monthly pots of £200 leisure (generally split between adults and kids - we like to do alot as a family and wouldnt want to give this up) - as well as a £400 grocery budget, £100 misc and £200 b'days and hols. I'm ashamed to say it will be a challenge to keep within these budgets, hence the diary to keep me motivated. Anything leftover from these budgets monthly will be added to the overpayment pot

So, for example - today I was going to buy MIL a radley purse for her b'day at £40. However, I've now decided to 'regift' some Vic Beckham perfume I got for Xmas to her. I got two other lovely bottles of scent so can do without this one (wont be mentioning to the gift giver though!) Therefore saving £40 from the b'days budget that can go towards overpaying.

I'm hoping this way of thinking will make me think before I spend!

So, Jan o/p pot £40

Will keep updating- it will be so satisfying to watch that term decrease!! Any questions please feel free to ask

RoxieW

Ok, am working on a plan to up the income a bit. Going to check out the up your income board but so far have a few things to ebay and am going to spend some time each day comping (obv selling on or re-gifting any wins).
Am also going to do a menu plan to try to cut down the grocery budget a bit!

Floxxie

Welcome Roxie to this board!

As you will find it is very addictive overpaying the mortgage.

Congratulations on the baby - do you know if it is a girl? Have you kept anything from the other two? Luckily for me I was so lazy selling things on eBay that by the time DS3 was born, I had everything still in the eBay room. Will not have to buy anything really until he is 2 (except food). Have moved over to reusable nappies (that look like normal ones but a bit bulkier) so they have saved lots of money and just need throwing into the washing machine so easy to use.

I think you have defintely got the right approach to budgets - if you overpay the mortgage and have no fun, then overpaying isn't either!

Looking forward to reading your diary.

Floxxie

RoxieW

hi - no another boy. I was hoping for a girl but hey ho - stick with what you know hey! Havent kept anything from other two boys either - we dont really have much storage space for big items so have to buy it all again. Most of it was sold on though so not to worry.

Floxxie

Hi Roxie,

With your experience at least you won't waste money on unnecessary items. My poor little one has hand-me down clothes and toys but thankfully I have a M-i-L who thinks he needs new clothes every month. In the past I refused her offers as I had spent so much on the other two but now it is very welcome.

Freecycle and Netmums are apparently good places for getting baby equipment etc. I haven't used them personally as I have to get over my second-hand phobia first (came from being poor as a child :rotfl:)

Have you done match betting for bringing in extra funds? If not, details on the gambling board and plenty of help. It is very easy once the concept clicks.

Don't forget cashback sites if you are making purchases.

There's plenty of ideas for upping your income although the hardest problem for me is fitting everything in. Two children are a piece of cake compared to three!

Floxxie

StuartGMC

Roxie
Welcome and best wishes for 2009 in terms of family and the mortgage.

I found that using the credit card for everything and paying in full was good for us in two ways;
1) We're offsetting so obviously this means that cash sits there for 5 weeks instead of draining down, but,
2) It provides a clear record of spend which you can download and look through to gauge your estimates vs reality, and finally,
3) We generate points under the NatWest scheme, but you could be getting cash back, store points etc etc

My own budgeting spreadsheet takes thing like the groceries spend and I just have to split it (food&drink/toiletries & cleaning/others) and it now provides a true rolling average value. If you are very keen then MS Money can be used, but I'm happy with the spreadsheet which a few others are now using or have taken ideas from (PM me if you want a copy).

I have also put an "alternatives" section under groceries (see my thread) and was amazed that e.g. Sainsbury's ketchup rather than Heinz saves us about £30 per year... (I don't eat it but OH and DD do, and say Sainbury's is nicer anyway). The section has a drop-down "acceptable" yes/no box and just totals if the items are acceptable. This will naturally be in your shopping bill but it can help to see things you have tried and both those acceptable and ones you tried but didn't like (and hence justify continuing to buy the more expensive one) to continue the motivation.

As you note, do keep this plan in balance with enjoying life with the family as this is time you can't "bank" or get back. Set some interim achievable targets and I'm sure with the approach you have noted, you'll be making inroads even after that great £8k OP.

**Warning** this forum and spreadsheets can become addictive!

Best wishes for the journey ahead.

RoxieW

HI guys thanks for the replies.
Floxxie - yes am trying to rein myself this time as we have been given tons of sleepsuits, bodysuits etc so only need a few outfits, not go mad. Stuart - yes, have to rein in the supermarket. At the mo we're buying all organic/finest etc but unfortunately that may have to go. Due to do an online shop this eve so am going to compare the prices of things.
A no spend day today and yesterday so thats good

RoxieW

Did our fortnightly big shop today and managed to get it down to £100 instead of the usual £180 OH wont be happy at the 4 'pasta' days as he's definitely a carnivore. Still, hopefully we'll keep on track with the £400 shopping budget.

RoxieW

got OH on the reviewing last night - $6 earned. Well, every little helps!

RoxieW

no spend day yesterday - just dinner moneys to pay today - 2 lots as my little one started big school Definitely mixed emotions about that! He was fine though - he just got stuck straight in.

Am waiting in to see whether the kitchen fitters decide to put in an appearance today or not. My kitchen was supposed to be finished before xmas but due to laurel and hardy type !!!! ups it wasnt and they havent yet given me a date to resume works! Still, am hoping that our lovely new kitchen will add a bit of value to our house - or at least make it more saleable when the time comes to upgrade

setmefree2

Looking forward to reading your diary:D