So what are your best tips towards becoming MF?

Redbedhead

seven-day-weekend wrote: »

Agreed, yes, we would put tiny amounts in too. If you have seen my entry on the mortgage-free roll of honour, you will see that the main thing we did was kept paying the same amount as it was at the high interest rate even when the rate had gone down again - we couldn't afford much else. This enabled the mortgage to finish about five years early and absorb the shortfall in our endowment.

This was what we were doing pre my mat leave and it was making a fab dent. Unfortunately I only got SMP and it meant our monthly income dropped by £2.5k and we just couldn't justify the extra payments when we were using our savings. Bloody kids:rotfl:

benbenandme

I work out my budget as follows: income = my wages, maintenance for ds, tax credits and child benefit. Then all my dd's, food etc are accounted for out of this. Every penny I make on 'extras' such as matched betting, mystery shopping, ebay, surveys etc immediately gets transferred to an account to overpay into the mortgage. Most of it is never seen as real money if that makes sense as its online, so just gets moved across and doesn't feel like real money as I don't physically have the cash, so this makes it easier, I don't see it as my money to spend

seven-day-weekend

Well done on your debt clearance benbenandme.

Cazzdevil

When I decided that we'd start overpaying the mortgage I phoned up Abbey and asked them to amend the Direct Debit to take the additional payment on the assurance that I could reduce it again if I found it too much to cope with (or if another life gets in the way of our finances), however when the confirmation letter came through they've not only amended the Direct Debit but because of the increased payment they've reduced the term of the original mortgage by 5 years automatically.

Now at first I was worried because I was thinking well what if I want to change it back, but now I'm viewing it as a positive thing. They've reduced the term so if I chicken out and change it back it'll somehow feel like I'm extending the mortgage and that I'm taking 3 steps back, so now I'm looking at it from the point of view that the overpayment doesn't count and that the new monthly payment is just the set amount I HAVE to pay.

Obligation is a strong motivator. Of course now I'll have to make EXTRA overpayments. *sigh*

dimbo61

Hi All
I worked out that we could save £50,000 in interest payments by reducing our mortgage term from 22 years to 10 years
Now this meant that the mortgage payment went up by £500 a month but after 4 years it just seems our normal payment.
Get the best value on everything you buy or service you need to pay for
Gas & elec, food shopping, life insurance,car& house insurance,holidays etc
GOOD LUCK

Jonbvn

jamesd wrote: »

So I track my net worth, not just one big debt. I watch that net worth increasing with daily valuations and know that it's buying me financial independence and an early retirement, not merely one debt gone.

And I thought I had OCD tracking our net worth monthly!:eek:

Optimisticpair

Redbedhead wrote: »

I know there are a few on here that are either MF or close to becoming MF, so would anyone like to share some of their best tips?

I have always accepted becoming MF was a longer term thing for us but sometimes that means I struggle with motivation and can fritter money away, so any tips to stop me doing that (I already budget) would be great.

I wanted to save for a horse so I traced a bare outline of a picture of a horse and labelled each part as a small or larger amount. 1 Hoof = £2, Mane = £10, etc etc. Every time I paid into the fund I shaded a bit in corresponding to the amount and could see progress being made. That's key for me to see progress. Seeing it there constantly reminded me that I wanted the horse more than some frippery thing I didn't really need so I stayed motivated.

Go for good value especially on longer term items rather than simply cheap because there is no saving if you have to replace something a second time.

Factor into funds a holiday or treats so you don't feel deprived and tempted to impulse spend to cheer yourself up and seek out maximum value for your money.

Obvious ones but don't buy what you don't need or a 'bargain' you wont use.

Have a dream goal to look forward to with the spare income that will no longer be going out on mortgage repayments.

Feel good about yourself for being in control but don't kick yourself for the inevitable blips. Enjoy.

ernie_3

what i have done is take photograph of my house. Then say divide segments of 10 or 20, as you pay more off the shaded area is what you is yours and the unshaded area is what you are striving to pay off.

Keep up the good work... ernie from a sunny Plymouth