The Lights Just Went On!

StuartGMC

I've dropped you my address by PM

Regarding the varied accounts, do consider if moving all into Sterling is the best move presently although I guess if you are paid in Sterling then there is some sense. But, can you get better interest rate on savings offshore than the UK rates while you are domiciled abroad?

Pensions in place?
Emergency funds should be 3-6 months of outgoings (I think £10k will be too little)?
Plan your forward known purchases for return to UK (car, holidays, allowance to replace white goods etc) so you have this in the budget too and know your target to save each month.

You should balance the mortgage with savings and investments; markets are very well priced now so you may want to ensure you are taking the opportunity to get in (funds or, if you have time individual equities) so you'll get the returns once markets pick up. Our 55% loss as it stood in December on our funds is now 22%, but it could be a bear market rally as we see a fall-back today. For me, we'll continue to buy whilst the market is cheap.

Then identify some specific targets across the mortgage, savings, "life" milestones etc to give focus to the short term targets which will help hit the long term objective.

I've never bothered with a spending diary in detail but do capture data on the groceries in three categories (food & drink, toiletries & cleaning and, others) which is quick to transcribe from the receipt to the spreadsheet. Clothing and shoes is likewise easy. These then give "real" data with ease.

I_should_be_rich_2

StuartGMC wrote: »

I've dropped you my address by PM
Thanks

Regarding the varied accounts, do consider if moving all into Sterling is the best move presently although I guess if you are paid in Sterling then there is some sense. But, can you get better interest rate on savings offshore than the UK rates while you are domiciled abroad?
Hmmm.....I actually get paid in euro so will think about that. Don't think I would do any better offshore, though will check again (haven't checked for a couple of years)

Pensions in place? Yes, sort of. Again, bits everywhere!! I should seriously reassess this too.
Emergency funds should be 3-6 months of outgoings (I think £10k will be too little)? You may be right that 10K too little. I have a contract until Jan 2011, but renewable. The company does have to give me a minimum of 3 months notice. But even so, I should have a bigger safety net. I am lucky in that my job is as secure as it can be, though I know that the industry I work in is suffering badly in UK and elsewhere.
Plan your forward known purchases for return to UK (car, holidays, allowance to replace white goods etc) so you have this in the budget too and know your target to save each month. Good point. All my furniture, white goods still in UK. White goods are in house, rest in storage (but paid for by company). Would expect company car with any job I would move back for.

You should balance the mortgage with savings and investments; markets are very well priced now so you may want to ensure you are taking the opportunity to get in (funds or, if you have time individual equities) so you'll get the returns once markets pick up. Our 55% loss as it stood in December on our funds is now 22%, but it could be a bear market rally as we see a fall-back today. For me, we'll continue to buy whilst the market is cheap. Would love to understand all of this Stuart, but way over my head, sorry!! I am probably better off staying far away from what I don't understand! I wouldn't know where to start!

Then identify some specific targets across the mortgage, savings, "life" milestones etc to give focus to the short term targets which will help hit the long term objective.

I've never bothered with a spending diary in detail but do capture data on the groceries in three categories (food & drink, toiletries & cleaning and, others) which is quick to transcribe from the receipt to the spreadsheet. Clothing and shoes is likewise easy. These then give "real" data with ease.

I do a weekly supermarket shop (which I haven't categorised but know the totals. My husband then does 'top-ups' during the week, as his time is more flexible, often duplicating what I have already bought, and this is probably a certain amount of the wastage. The rest is probably mainly stuff for the kids - Nintendo games, DVDs, swimming training (my 5 year old swims competitively), ballet lessons and all the usual kids stuff. My husband is a music addict and has his own studio, so I am fairly confident some 'unnecessary gadgets' have found there way in there also!!


Thanks so much Stuart, a lot of food for thought here, and all good points which are very much appreciated! I do need to think of 'bigger picture' rather then just mortgage I know. Maybe once I figure out the spending and what the available 'surplus' is, I can come back for some 'discussion' and advice before making any decisions?

StuartGMC

Enjoy the spreadsheet and keep us updated on progress. :beer:

Thriftyknickers

Hi, I_should_be_rich,

Like the diary! We have a few similarities - both 43 and with 2 young children. Are you an IT-er too by any chance?

Anyway, my MF goal is to have cleared it by the time I'm 50. I've found joining the MFW 2009, keeping a diary here and updating my signature really motivating or should that read addictive???

Good luck and I'll subscribe to you to see how you're doing.

evab_2

Good luck with your plans!

milkybars

I_should_be_rich wrote: »

I do a weekly supermarket shop

I know you're looking at other things at the moment but when it comes round to cutting back slightly in this area, the best advice I can give is to check out the Old Style area of the forums. I too did a weekly food shop but since being inspired by that board, I do a fruit and veg shop at the market weekly and visit the supermarket only once every two to three weeks, the only top ups being milk. It really works, spending about 1/3 of what we used to on food without feeling like we're missing out on any treats.

setmefree2

to the MFW board.

I've been keeping a spending diary in excel for 6 years now. Just make sure you keep a receipt for everything you buy. Updating it becomes 2nd nature after a while. Over time you will see where your money is going and see areas that you can save without too much pain. If you haven't read any of Martin Lewis' books, I would recommend reading "The Money Diet". It's full of lots of helpful tips. "Rich Dad, Poor dad" and "The Millionaire next door" are good books too. However, after buying all those books you will be some what poorer. [IMG]http://smileys.!!!!!!!!!!!!!!!!!!/cat/23/23_2_16.gif[/IMG]

As Stuart said most people feel that you should have adequate savings before overpaying your mortgage - between 3 to 6 months. Martin Lewis also recommends using your cash ISA allowance every year, though not everyone agrees with this.

I'm sure you will find a MF path that suits you and your family.

and I looking forward to reading about your progress.

Kind Regards

SMF2

ema_o

I recommend starting your spending diary from about a week ago (I did this when I was using one) that way you have a weeks worth of what you spent before you started thinking about reducing it! Even if you forget a couple of things you should remember enough to make it worthwhile.
For me the most worrying thing was realising I had spent something every day that week, I was working in town and it was so easy to pop out and pick up something every day!
Good luck with it all!

I_should_be_rich_2

Thanks to everyone for their comments.
Thrifty Knickers - No, I'm not in IT.
Milky Bars - the OS Board is GREAT! I have picked up lots of ideas there to save money, and I will talk about shopping a little bit more. I can certainly save money there I know, but will need to be creative, not as straighforward here as in the UK.
Thanks Setmefree2 for the tips - I haven't read any of those books, but will put them on my list to buy in July when I visit Europe. I don't actually know what an ISA Allowance is - would I be entitled to one if not resident in UK I wonder? (another thing to check!!)

Anyway, a couple of updates from yesterday.

Getting the balances on the dormant accounts will take longer than I thought - banks won't give out balances over the phone any more? So they will have to post statements to me (should take 2-3 weeks). So will have to leave that aside for a little.

Spending Diary.
WELL.......... I was feeling nicely smug last night when I had only spent the equivalent of STG3.90 (lunch for me, and some snacks for kids lunch boxes). Then I asked hubby to fill in his part. The combined total came to..........STG591 !!!!! :eek:
To be fair, maybe not a good day to start as there were a number of 'irregular' and one-off payments. Son's school fees took up a good piece of this (STG355), also STG26 for a plumber, STG70 for a water bill, and STG115 for a new Nintendo DS for my son, as his old one cannot be repaired (I do have insurance on it though, so will get this money back). Remainder was on cigarettes, cane sugar snack (hubby) and postage.

Anyway, will keep going on the Spending Diary - hopefully it will not be so much every day!!! :eek:

I will write a separate post on shopping/food I think rather than making this post any longer.....................:D

pbw

i_should_be_rich,

a bit personal i know, but its been on my mind whilst reading this thread...

...which country are you in and what is your occupation, if you don't mind sharing the information that is