Mortgage free vs lifestyle for kids???

looneyleo

Hi everyone!

Spent some time looking at my mortgage today and calculated we need to make 242 more payments of £880.00 per month to pay it off. :eek:

It's so DEPRESSING!

I have a husband and 2 very young children. We both work hard and have no debt and save for everything (now, thanks to MSE) but things are tight. We only just make it each month and I spend sooo much time on here trying to save (and make) as much money as possible.

My question is...what level of sacrifice should I make to get this huge debt paid off as early as possible? If it were just me and hubby, then I would put my head down, grit my teeth, work as many hours as possible and sacrifice everything to get it paid off.

However, my kids mean everything to me and I want them to have holidays abroad, for me to work part time while they aren't at school and give them a good standard of living. Don't get me wrong, I am not extravagant with them at all, clothes from charity shops, strict budget for birthday's etc and no little gifts every week etc but I want them to have the life experiences that money buys and I want to spend time with them growing up, not just working...

For example, we have saved £1000.00 for a holiday abroad in October. But we went abroad in June with family (at a cost of £400.00 for 4 of us). We would love to take the kids again on our own for the first time...but should I pay this off the mortgage and go without/go somewhere cheap in our caravan???

I know this is a personal choice thing...just wanted some views on Family vs mortgage???

Thanks looneyleo:rotfl:

dave318

I would go somewhere cheap in the caravan, but this would still only bring you down one more payment. 241 to go. Is it worth it? You say very young children. Would they know the difference as long as they had a good time.

Good prices for holidays though!!! Think about the spending money as well though, this can escalate costs.

Also, do you really need a holiday so soon after the last one. (Says he desperate to go and has already booked for Sept/Oct. Hypocrite that I am)

gooismeid

You're obviously giving them a good standard of living if you're prepared to work part-time while they're growing up. Life for small kids is very rarely about money and the amount of toys or holidays abroad they have - that comes later when they're teenagers! If you do take them abroad on holiday, make sure it's not just sitting on the beach or swimming - give them a flavour of the country you're visiting and then you can say you've given them an experience. I took mine to Barcelona for a few days (aged 7 and 4) and was amazed at how interested they were in the buildings, the different foods, different languages, and different modes of transport. Go on that holiday if it'll brighten up your life as well as your kids' - we all deserve a little treat now and again. But just make sure you read, mark and inwardly digest all of Martin's fantastic tips on saving money while abroad (e.g. get yourself a nationwide debit card, and shop around for insurance). Although I'm sure I don't need to remind you about that! We're with you, kid - do what you feel is best for YOU and your family, and grab all the support you need from the MSE forums!

looneyleo

Hi Dave318,

Thanks for your reply. This is exactly what I mean! No, I don't really need a holiday so soon after last one...but then again, as you say it will only save one month of payments...and it's quality time with the kids. This is what I'm struggling with...if I was a Debt Free Wannabe, there would be no question...Debt first...survival budget. But with the mortgage???? I don't necessarily want to sacrifice everything, live on a survival budget to shave years off a mortgage...when it's the kids that will suffer. When it's paid off and we can enjoy the extra spending money, the kids will have pretty much grown up and won't gain the benefit from our saving...even though we'll have a more comfortable retirement...get my drift? (Just had realisation...they will probably be at university...draining all my retirement fund anyway!

Joe_Bloggs

I can only remember the miserable holidays I had in a caravan when I was a kid. Why budget to enjoy yourself once or twice a year. Is there anything local that the kids can enjoy throughout the year. Going away with cousins/neighbours was a cheaper alternative.
In the end the kids can't stand to be with their parents as each grow older.
J_B.

looneyleo

gooismeid wrote:

You're obviously giving them a good standard of living if you're prepared to work part-time while they're growing up. Life for small kids is very rarely about money and the amount of toys or holidays abroad they have - that comes later when they're teenagers! If you do take them abroad on holiday, make sure it's not just sitting on the beach or swimming - give them a flavour of the country you're visiting and then you can say you've given them an experience. I took mine to Barcelona for a few days (aged 7 and 4) and was amazed at how interested they were in the buildings, the different foods, different languages, and different modes of transport. Go on that holiday if it'll brighten up your life as well as your kids' - we all deserve a little treat now and again. But just make sure you read, mark and inwardly digest all of Martin's fantastic tips on saving money while abroad (e.g. get yourself a nationwide debit card, and shop around for insurance). Although I'm sure I don't need to remind you about that! We're with you, kid - do what you feel is best for YOU and your family, and grab all the support you need from the MSE forums!

Hi gooismeid...thank for your kind words. I try very hard to get the balance right...working in my own business three days per week...but spending the other four days with my two kids (aged 3 & 1) doing many fun and free things. When we went to Majorca we hired a car for the week (only £71.00) and travelled all over showing them the sights and finding the best beaches. We had a great time. My business is going really well and I'm hoping to get good dividends this year (and hopefully years to come). I had considered being strict with the dividends (as this is bonus "free" money) and using them for the mortgage...and using our savings for the treats...what do you think?

comping_cat

What i am doing is this, i have my normal budget, so i know what all my bills are and make sure they are paid. I then keep so much extra a week for - any extras!!!! I also have a savings account, which i pay a set amount into towards our holidays (this year we went to Florida, we are saving to go again, prob in another 3 years, sooner if we can, would be nice to have more regular holidays, but we like the expensive ones, so we dont go as often). To be honest, this prob takes all my income so i dont have much left for any overpayments.
But what i do do, is any extra money i get, instead of using it, i pay extra off my mortgage, and its surprising how much ive been able to pay off in the few months ive been doing it. Things like ive managed to reduce my sky payment to half price, so instead of spending the saving, im paying it into the mortgage. If i do any extra hours, sell anything on ebay/car boot/amazon i pay that into the mortgage. Also (as per mortgage pig thread) if i get a money off coupon, i get the money off my shopping, but then put the 50p or whatever it is into the pig, if ive made lunch, not bought it, put the equivalent into the pig etc. Then once a month a count it up and pay it in!!!!!!!
Doing it this way, im budgeting for our normal lives, including doing things that we want to do and still overpaying when i can.
HTH!!!!

looneyleo

Thanks Catowen. I have considered starting a little mortgage pig...or just rounding up my payment from £880.00 to £900.00. At the moment, all those little savings we make by selling things and husband giving up smokiing goes into the holiday fund. I guess we didn't think we would have enough for another holiday this year, but we have saved enough...and now I feel guilty for spending it on a holiday and not the mortgage when we were supposed to be focusing on this. The other thing is, as I mentioned my OH has really worked hard at stopping smoking and put his "CASH NOT ASH" money in this account and wants the holiday as a reward.

comping_cat

looneyleo wrote:

Thanks Catowen. I have considered starting a little mortgage pig...or just rounding up my payment from £880.00 to £900.00. At the moment, all those little savings we make by selling things and husband giving up smokiing goes into the holiday fund. I guess we didn't think we would have enough for another holiday this year, but we have saved enough...and now I feel guilty for spending it on a holiday and not the mortgage when we were supposed to be focusing on this. The other thing is, as I mentioned my OH has really worked hard at stopping smoking and put his "CASH NOT ASH" money in this account and wants the holiday as a reward.

I think that is fair enough, life is too short to go without everything!!!! I would def put the smoking money into the holiday fund, but maybe do 50/50 with the selling and any little extras, that way, you are still putting towards a holiday, but also easing that guilty consience (sp) about the mortgage!!!!
I love the mortgage pig thread, its getting the pig, and posting on that thread that keeps me focussed on putting those extras into the pig, and not just wasting it!!!!

jennifernil

You don't need to go on an expensive holiday to spend quality time with your children. You could still take the time off but stay at home, or you could take a cheaper trip and pay the rest off the mortgage.

looneyleo

Thanks jennifernil. You are right...the best things in life are free. And believe me, I spend a lot of time with my kids doing fun free things together. Visiting the park, nature walks, Sure Start activities (which are fantastic - thanks Sure Start!)

It's not really about the holiday... it's about what sacrifices do you make overall in family life to be mortgage free long term. How far do you go??? I have never been better with my money. I know where every penny goes..i have done everything by the MSE book - and to be quite honest...I think I'm starting to display OCD symptons about the whole thing! (Obsessive compulsive disorder). I'm struggling now to do the good things in life, just to save a few pennies here and there when we aren't in debt and just have a mortgage like almost every other Jo Bloggs. It's a personal thing I know, with no right and wrong answer...just interested in other peoples views and experiences. Got until October to decide anyway about the holiday!