Want to be a mfw but worried?

ally18

Hi,
I've been reading these threads for a long time now and they have inspired me to want to be a mfw but I have to admit I don't know the best way to go about it. I've looked on the links at the calculator and would love to knock off 10 years off my 26 yr mortgage term. But how to do it and stick with it? I'm worried about the future as there is only me.
I'm a single mum, working hard to bring up 3 kids and pay all bills on my salary. At the mo I am putting the majority of the money I'm saving from the low interest rates into my mortgage payment so to overpay a little, but with all other bills as well, it means I'm not paying off much. I don't have the large excesses of money left over to do this, just little amounts. I've also been trying to save money for the 'emergency fund' that people say you should have just in case.
I've recently changed my utility supplier for cheaper bills, thinking about cancelling landline no etc but still need broadband for kids homework etc.
Sorry for long post but could do with a bit of advice as no one else to ask.
Ty

Malski

Every little bit counts. From what I understand is that for every £1 you OP you save yourself £5 in the long run. Some people on these boards only overpay as little as £10 a month.

daisy_1571

Hi Ally18

IMHO if you are on a fairly tight budget and relying on only your wage - even although it is tempting to think "I should be getting rid of this debt" it may be a better idea to build up some emergency savings first. If you have little spare cash and have put some money into the mortgage that is great and will save you some interest and a couple of monthly payments on your mortgage but the monthly benefit you will see will not be until 25 years (or however long your mortgage is) down the line. That "saving" is in the future and will not help you pay an unexpected expense in two months time unless you can withdraw that overpayment back again. Perhaps, in your circumstances, it may not be the "safest" thing to do if an unexpected expense could derail all your progress.

I think I understand how you feel as I was tempted to start overpaying but have managed to get together some emergency cash. So now if an emergency happens - like the washing machine breaking and having to pay a £160 call out charge which happened this month - I can cope with it. In times past that would have either tipped me over into overdrawn/credit card bills etc or else screwed up xmas. Now I have my emergency cash and I save a small amount every month towards xmas/birthday presents etc so December is not such a slog.

Although you can't beat the feeling of overpaying and beginning to get rid of the mortgage - you also can't beat the feeling of being prepared for anything that may happen day on day, month on month.

Whenever I feel like the mortgage is NEVER going to be paid off as it seems to take so long I try to remember that as long as I make the mortgage payments every month it will be paid off in the term expected. Any extra is just a bonus. Slow and steady wins the race every time.

I hope this helps - and rememrb it is only my opinion - you do whatever feels best for you rather than what you think you should be doing.

Daisy

golfiematt

i agree that you need 3 months wages saved just in case and whatever you have left at the end of the week month try to put to o.p even if its only a few pounds its worth it in the long run.....good luck with your challenge.

dimbo61

Have a look at Martin,s e-mail this week re Talk talk deal for landline and broadband, £15 a month for both.
Agree with other posters about building up savings
Sometimes its better to say right washing machine U/S and look for new BOSCH ( which best buy ) as going to save money long term.
Having 3/6 months of income in savings makes me sleep better at night.
Every little helps GOOD LUCK

dimbo61

Part of credit rating is do you have a landline !!!

ally18

Thanks very much everyone, I have got my savings pot in hand and am trying to get it up as quickly as I can, though it takes time. I've been looking through no end of threads today to try and find ways of cutting costs and I'm full of ideas and motivation at the mo. Just have to start it and stick with it. I'm going to try and begin my new start in January. I was wondering if anyone had a spreadsheet I could use to help me budget? Normally I stick everything down in my little book but could do with something more advanced.
Thanks
ps didnt know a landline affected yr credit rating, thanks for that.

pammyj74

HI ally, I am a single mum to 3 as well and I have excelled myself with what I have OPd this year, thanks to all advice on here and paidtoshop forum.
I do the grocery budget and try and stick to the budget, I have re-started doing meals in the slow cooker and this saves me money as well. I shop around for everything (and I mean everything!) I look on HUKD almost every day, do surveys and competitions (although just started this again and do about an hour a night on here for them) and also any proper bargains I get I sell on ebay and carboots for a profit.
I buy clothes mostly from charity shops or real bargains online and sales. If I dont need it I dont buy it.
If I change any suppliers I look through the cashback sites (ie just changed my house insurance and got £49 back through quidco)
I have also started recently walking more than we used to. If we can walk there we try to. My kids have a few clubs and things and most are only a 20 min walk away so thats what we do. I also walk to the supermarket for small things (stops me buying too much as well lol as have to carry it back!)
I have been reading through recipe saving ideas etc as well

I wish you luck on your MFW journey. I am hoping when my fixed term finishes in a couple of months I can reduce my term from 20 to 15 years and then gradually have it finished in 10 years when my youngest is 16.
Join bingoport to earn amazon vouchers (this has saved me money of xmas gifts no end!!)
Any questions hun dont hesitate to ask. I'm not financial whizz but might be able to point you in the right direction

pammyj74

If you want to let people know your numbers ie, mortgage term, how much left, rate you are on, with who, someone can give you a bit more advice hun.. its also a good thing to look back on to see how far you have come.
I look at my mfw diary in July and I was on £87k ish, now on under £83k and I can look back and see what I did, how much I OPd, how I did it etc and its good motivation to keep going

cake21

Good luck with your MFW quest, just wanted to add if you haven't already I recommend checking the terms of your mortgage - with mine I can get my overpayments back within 48 hours if needed for a new boiler :eek: So my "emergency savings" are sitting in there.

Definitely echo the others - every little helps - I'm totally addicted and love putting my latest little OP in the spreadsheet and thinking "cool, saved another £4 just by putting £1 to the mortgage"

dimbo61 wrote: »

Part of credit rating is do you have a landline !!!

I didn't know that either...haven't had a landline for years as it's worked out much cheaper overall for me to have a cheap SIM only mobile phone tariff and cable broadband. And they're still flinging credit my way, whether that's a good thing or not is something else

Edited to add: Can't believe I haven't invited you to join the 2010 MFW thread! You could start with a target of say £5/month or £60 for the year. At the beginning I loved smashing my targets, may work for you as well?

SmlSave

Hi Ally! Come and be a MFW!

Just think....:think:.....even if you just put all your spare change in a jar everyday and used that to OP you're still OPing more than you did before!

I was wondering if anyone had a spreadsheet I could use to help me budget?

Stuart GMC has an amazing spreadsheet, its very complicated (to me anyway) so I just adapted it to suit me.