Brand spanking new to money saving and to my MFW diary

Penny_pauper

Thanks. Trying not to get too excited!

setmefree2

gallygirl wrote: »

:T good luck to OH, and as you say the experience will be good anyway :T

Good Luck

Zeddy

Hope it went well today. :beer:

Penny_pauper

:j :j :j :j :j :j :j

As you may have noticed, the interview went well!

Ah he is a clever boy my OH! And it sounds like he'll be working for a no messing about company, interview in the morning, calling you back in the afternoon. I like it, none of this waiting weeks on end for an answer!

We now find ourselves in a potentially fantastic situation. To explain OH will get served his notice on the 1st of October, entitling him to his enhanced redundancy. His new work have been told all about the situation and they are willing to wait for him and let him start on the 1st of November. This would let him get served his redundancy notice, he can then hand in his notice and then work his four week leaving period.
The only fly in the ointment (and there always is one :rolleyes:) is that HR have the power to say as you got the job before the 1st of October you are only getting statutory redundancy (we'd still take it, a regular wage beats a redundancy package any day in my book).
I'm trying to convince OH to keep quiet for a week but he's being all honourable and wanting to tell his immediate boss as he is a friend as well as a colleague.

Any way very very happy and all this will free up lots of overpayments so that the mortgage will come down even quicker.
Off to wander around in a happy haze for the rest of the day!
PP

gallygirl

:beer: Brilliant news :beer:.

Just gag hubby for a few weeks

Penny_pauper

Thanks Gallygirl

Have been busy negotiating things with my OH. Even though we are both in agreement that the mortgage has to go as quickly as possible, OH has taken a stand and said he can no longer live in a house with a brown bathroom suite and windows with secondary glazing that we can't open for fear the original window will fall out.
He does have a point
Have been working away at the figures and have discovered the mortgage we are trying to get rid of is less than we had thought at £39953.19 not £42600. Not sure how that happened but yipee:j.
We have agreed that we can more or less live on one wage so 90% of OH's will be saved.
To complete the mortgage free in three take 2 challenge, will need to pay about £970 on top of £180 normal payment (currently paying £300 so in real money it is £850 extra.)
This will leave about £400 or £500 for savings per month and this is were our different spending/saving personalities come into play! I want to save up and pay for the windows and bathroom at a later date and he wants to take out a loan and just get it done. Or do we skip the first six months or so of the mortgage challenge and do the improvements and try and catch up at a later date.
Am confused :huh: I think I may have become so inured to the visual disaster that is our bathroom that it doesn't bother me any more so I just don't see it as high priority. Either that or I just have got no taste what so ever :rotfl:
Advice please.
PP

StuartGMC

PP
Good news all round!

Regarding the improvements needed in the home, my view is that these should be on your annual savings requirements when setting your budget, just like the amount required to save per year to replace the car at a future date. That is, these are known and expected costs so account for them.

Having said that, with winter around the corner you'll need to get your skates on to have replacement windows in by end of October or so. I would hesitate to take a loan for this as you are simply paying interest (probably at a higher rate than the mortgage?) so my recommendation is to minimise OP to have cash for the windows (bathroom can be replaced in winter later) and get quotes asap.

I'm sure once you are warm with no winter drafts, knowing you don't have need to paint them etc you'll agree that the investment was worthwhile.

Then get your plans in place for any other things you know you'll do in the next 5yrs (new gutters and soffits, car, new fridge, freezer, TV, PC etc etc) and get your budget reviewed to include these as you never, never want to have a loan to pay for anything again and with your net income vs. outgoings that should be easy to achieve.

Anyway, that's just my take, but hope it helps you both in your discussion this afternoon and the decision on the next steps.

Little_Mama

Hi PP, just had a quick catch up on your diary.

In a similar quandry to yourselves re home improvements vs mortgage overpayments. The former has won as they are things (albeit nice to haves) that we have been 'going on about' for ages. Plan is to still pay small chunks off the mortgage (cashback payments, unexpected monies, £2 coin fund etc).

One thing I do is, say, for instance, you were paid £1550 (figures entirely fictional:o), I'd put £50 off the mortgage, £500 savings/home improvements and the rest is living money. I then feel I've salved my MFW conscience.:D

And just think how lovely your place will look afterwards.

LM

taka

I agree... Saving would be the most cost effective way of doing the work. But if you are needing to have the windows done ASAP (eg before winter 09 hits properly) and you don't want to wait until you have saved enough could you either
(a) pay for it on a 0% for x months purchase credit card - check the fees for this and double check it won't be seen as cash advance and hence @ xx% scary APR
(b) do a balance transfer onto a credit card? Yep there would be money to pay eg ~3% balance transfer fee but it'd be cheaper than a loan unless you can get the windows on an interest free deal!

Pay off before being charged interest with the savings money (+ money you could OP with if necessary too)!

Once all that is out of the way I'd save for Bathroom renovations (unless the bathroom wont survive another year or so?) with the money you have spare! That way you both get your way (sort of)!

I hit my bathroom renovation savings target this month! :j I can finally get rid of the avocado coloured suite from hell! Yipee! :j

SmlSave

Have been busy negotiating things with my OH. Even though we are both in agreement that the mortgage has to go as quickly as possible, OH has taken a stand and said he can no longer live in a house with a brown bathroom suite and windows with secondary glazing that we can't open for fear the original window will fall out.
He does have a point

Ohhhh, interesting discussion with lots of good points/views.

If you've seen my thread you'l know that I've been harping on about our windows (and the black mould that comes with them) for ages :rolleyes: They don't sound as bad as yours though PP, have you got a quote as to how much it will cost to replace them?

Am very interested to see what you and OH decide to do