Want to be a mfw but worried?

cha97michelle

Interesting comments from James about saving rather than overpaying. To be honest, i know i have more discipline overpaying, and if i had a savings pot i would be tempted to touch it. Although i can claim back my overpayments i would rather not. It is harder too, having to write a letter to the bank than fiddle round on internet banking.

Good luck with your challenges.

jamesd

cha97michelle, an ability to resist temptation is definitely helpful. I treat my ISA and pension money as untouchable and just forget that the ISA part is available to me if I asked for it. Works for me, maybe not for others. Just do whatever works for you. Beats doing nothing.

cha97michelle

I did look at the calculator you suggested, and i have a mortgage rate of 2.5% and as a non tax payer any savings over 2.5% would beat it. I already have easy access savings at that rate, so maybe i might change tactics slightly and save for a certain period or to a certain amount and then overpay. I find it hard to see the difference between saving at 2.5 or overpaying at the same 2.5 though. I guess it is less difference than if my rate were lower.

Also, my motivation is probably slightly different as though i am overpaying to reduce the term while the rate is low, i have also reduced my payment to a more manageable level to stay home with the kids. So i am trying to prepare for when rates go up/payment increases again. Can't have it all ways, although i am trying to.

ally18

Hi all,

Well a spending weekend for me, went to Ikea, topped up on candles, didn't go over the £10 budget fortunately and change is in the jar.

Jar total - £4.55

On a worst note, took out £30 from xmas act and spent the lot which I didn't intend doing! Got one main xmas pressie, a couple of things for each daughter for their stockings, advent calenders ready for Weds and thats about it. It didn't go far though, arn't advent calenders expensive!

I tried to do my shopping at L this week to use my voucher but I gave up on the first aisle. It was so busy and just one person on the till that I decided the £5 off just wasn't worth it and went to Mr Ts instead. On the downside, I spent the rest of my budget for Nov which was £49.... still not over thank goodness. Freezer full, cupboard full, fridge is never full somehow and have decided its the shop round the corner for the next 2 weeks for just fridge stuff and the kids pack ups.

NSD today as back at work, lovely and warm now as i've turned the heating here high. (Worth coming to work just for that). Got to sort out new g & e suppliers tomorrow, hope i'm making the right decisions, its hard to know who to go with now!

jamesd

cha97michelle, savings are definitely best for when rates go up, can't usually use overpaid money from the past to cover that. Have you seen the 8% regular saver rate from First Direct? Need to open one of their current accounts and pay in (and out) £1500 a month, any number of payments allowed to get there, then they will pay £100 for opening the account after three months. Open a normal saving account or reach the £1500 amount and their £10 a month charge for an account won't apply.

ally18

Can someone help me with doing one of the these soa, I tried completing one but couldnt get it to save and so I couldn't put it on here.
Not exactly IT literate!

Thanks

cha97michelle

The make sense of cards site is the one i have used before. It is good as it saves your data and you can also import it to a post on here if you want to.

ally18

Thats the one I used but it didnt work. Will try again.

Ladyshopper

Thought I'd say hello, I lurk lots on this thread and read lots of the diaries, but never post!

I'm in a similar position to you, single and with 2 children. I did get really into overpaying last year, and paid off quite a big chunk thanks to cashing in an endowment, and from saving money when I used to use coupons at tesco. Unfortunately they don't do that policy any more, so am now spending a fortune on grocery shopping!

I do get a little disheartened with myself when I read others diaries (especially Pammy who I know from another forum and have met in person, and she is doing so fab with her overpayments!). However, I then put a little perspective on it and looked at the things I had paid in cash for this year, and have not gone into debt for, and realise that whilst I have not overpaid at all this year, I have probably paid out around £5k cash for "stuff" (fridge/freezer, tent and accessories, summer holiday to lanzarote, disney cruise and flights for next year, tumble dryer and various other household appliances that have broken not to mention the other usual bills!). I have not gone into any debt for any of these, so am pretty pleased with myself. Some may consider some of these luxury items, and I guess a holiday abroad is. However, the bargain hunter in me found fab deals for both, and the cash paid out is actually far less than I would have ended up spending going somewhere in this country.

I don't think I'll ever get to the stage of doing a diary, but next year I definitely want to try and overpay again. Hopefully this will be slightly easier, as main holiday (cruise) is paid for, and I now have the 10 berth tent (which is like a mini mansion!) for other holidays, and really looking forward to using it. I do need to reign my grocery shopping in, and also my compulsive buying!!

Meanwhile, I want to wish ally luck, and will continue reading all the diaries to get some more inspiration! I am due my annual mortgage statement soon, so will see what the damage is!

ally18

Many thanks ladyshopper for your comments.

Well, gas & electric sorted today so fingers crossed some extra funds via quidco next year.

Another NSD today. Pay day as well and have checked all DDs have gone. I was right, a little overspent this month, think its about £25 in all so will try and recoup that from next month's food budget. Have £80 in vouchers to use at Mr Ts for xmas so not bad. A few luxuries maybe.