Am I Ok saving this way?

pocketrocket_2

Hi

Just wondered what everyone else would do in my shoes after reading and loving all the advice everyone gives and receives on this forum! well here goes
Im 40 years old
Live alone work full time take home 1250 a month after tax
I have approx 200,000 equity in home I only have 20,000 left to pay off mortgage

Next door sold for 220,000 last month so guess the equity is roughly 200,000
I have 16,500 in savings with poor interest so need to sort that out. £5,000 I have 'loaned ' to friends which they should return this yr! £1000 in different shares , so total savings are approx £22,000

Now its taken me ages to save the money as I put away 350-400 a month but have spent over the years when I accumulate a few thousand like a car or expensive veneers a few years ago! at the moment do not need to have any big spends.

The thing im asking is should I bother to keep saving? should I leave the money I have to grow in bank and just spend my earnings after paying bills etc and enjoy my life? after all I have alot of equity which could look after me in old age?

What do others think?

DVardysShadow

Pay down your mortgage. It is expensive to borrow on a mortgage in order to ahve savings - unless you have a really low tracker in place.

pocketrocket_2

I have a repayment mortgage at 2.5% so my monthly payment is £140 so can easily afford to pay that and save from my earnings.

Barneysmom

If you have £350 a month spare cash, could you overpay the mortgage by £100 then spend the rest?
That way you'd be cutting down your mortgage term but still having some spending money too?

pocketrocket_2

I have thought of overpaying monthly but im addicted to saving money in my account sounds odd but I always look at the equity and dream of selling house downsizing then being able pay any outstanding mortgage then

p00hsticks

pocketrocket wrote: »

Hi

after all I have alot of equity which could look after me in old age?

What do others think?

But where are you going to live in your old age ? Unless your current house is much larger than you need (and you say you live alone so i'm not sure that that is the case) so that you can downsize, then you can't easily get at that equity.

Barneysmom

pocketrocket wrote: »

I have thought of overpaying monthly but im addicted to saving money in my account sounds odd but I always look at the equity and dream of selling house downsizing then being able pay any outstanding mortgage then

It doesn't sound odd, I hate spending any of my savings too, thought my big addiction is hoarding tinned and dried goods in the spare bedroom :)

Can I ask, why are you holding on to the house? If you sold it and downsized now, you would save even more on your heating bills in the winter?

pocketrocket_2

p00hsticks wrote: »

But where are you going to live in your old age ? Unless your current house is much larger than you need (and you say you live alone so i'm not sure that that is the case) so that you can downsize, then you can't easily get at that equity.

Its only a 3 bed semi but if I end up on my own wont need this size so 1 or 2 bed place will do me I think with money left over I can pay of the small mortgage

pocketrocket_2

Barneysmom wrote: »

It doesn't sound odd, I hate spending any of my savings too, thought my big addiction is hoarding tinned and dried goods in the spare bedroom :)

Can I ask, why are you holding on to the house? If you sold it and downsized now, you would save even more on your heating bills in the winter?

I hoard stuff like tinned food and loo roll:o I just like watching my savings grow with nothing in particular to buy, but of course things do happen like having to buy a car etc in the past so like to save as much as possible.

I bought a TV last week £200 reduced from £250 and go the £10 voucher for buying before the 4th from argos but felt guilt for buying it even though it was needed I always feel guilt buying nice things! this tv I have been promising myself for the past year

pocketrocket_2

also im holding onto house because house prices are not good and its where I grew up

comping_cat

You have enough savings to pay your mortgage in full and have a little left over. You could then start saving not only your spare money, but also your old mortgage money and watch your savings grow, knowing that you are completely debt free and the house and savings are all yours - and if you do downsize at some point, look at all the equity you can put into your savings then!