Could you look at our SOA please?

ERICS_MUM

Hi,

your SOA shows that you should have a good amount left over each month. If you don't actually see it, you could try keeping a spending diary for a couple of months. You need to be strict with yourselves and record everything you spend - including the odd magazine, cappucino in Starbucks, takeaway etc! I think you'll be amazed at where and how easily your hard-earned money goes.

Once you see where you can cut down, decide on how much of that £1200 odd you could save and put it away as soon as you get paid. Leave in your accounts enough to see you through the month with a few treats but not enough to "waste" it.

Good luck, I look forward to hearing how you get on.

Linda :beer:

OCD

rictus123 wrote: »

Yeh i think this year, like last, will pass pretty quick and bam, we will have money for a deposit! I wouldnt be too worried about a high interest rate to start with if we only managed a 10% deposit as on a fixed rate for 2 years i think we could pay off £30k or so then the rate and payment should come right down?

Someone(on here i think) said we should aim for 25% deposit then take out mortgage over 35 years, saving up as much money as we can then pay a huge lump sum off it then remortgage down to 15 years...i dont know how we will tackle the mortgage but i want mortgage free pretty sharp! Since i do seem to have time on my side, a bit extra saving for the deposit then over paying will bring the term right down. Also need to bear in mind in 5 years + there could well be a wedding and baby on the way! Wedding will be more or less covered by gfs dad(earns a fair bit and paid alot of gfs sisters wedding) Baby would put everything into perspective i would think! Lol.

Sorry if im taking over your thread! Good to see like minded savers thats all! This year will be a great one,im going to love working for the money to get our own little pad!

Definitely makes things easier having target in place.

Re the deposit/mortgage/repayment period etc:

I am no expert, but two things came to mind based on what you posted.

First, the higher deposit you have, the better that rate you tend to get on mortgages. Second, I'm not sure I understand the reasoning behind the 35 year term. Surely, it would be best to get money off the mortgage as soon as possible, i.e. overpay as soon as possible, instead of saving the money and overpaying a lump sum? It will boil down to interest rates for different terms and the interest you will earn on any savings.

Due to the compounding effects of interest, I think paying a set amount off early will have a greater effect. As I say though, I'm far from being an expert on this, and plan to read up on this area before considering buying. If you have any more information on this though, or know which thread someone advised you on this, I would be grateful.

You're not taking over the thread, it's all good. Getting some fantastic info!

OCD

ERICS_MUM wrote: »

Hi,

your SOA shows that you should have a good amount left over each month. If you don't actually see it, you could try keeping a spending diary for a couple of months. You need to be strict with yourselves and record everything you spend - including the odd magazine, cappucino in Starbucks, takeaway etc! I think you'll be amazed at where and how easily your hard-earned money goes.

Once you see where you can cut down, decide on how much of that £1200 odd you could save and put it away as soon as you get paid. Leave in your accounts enough to see you through the month with a few treats but not enough to "waste" it.

Good luck, I look forward to hearing how you get on.

Linda :beer:

Cheers Linda. Have had a look over a number of months statements to get the figures that went towards the figures posted.

OCD

linz wrote: »

Interesting reading. Your SOA looks pretty good already. Maybe you could get your food shopping down a bit if you went down a brand on a lot of things. Depends how much you like your food or would you consider buying the supermarkets basics brand? I personally buy lots of my shopping basics brand (apart from teabags, can't compromise on that lol) and only spend about £15-20 a week (shopping for just me). Do you plan your meals, cook in bulk and freeze portions? Try looking on the Old Style Moneysaving thread for ideas on how to make your food go further.

Could you go a few months without clothing?

Will be interested to see how you get on with regards to getting on the property ladder and watching you overpay your mortgage. Agree with what you say about living your life at the same time though, but you'll reap the rewards later if you are sensible now. It's still possible to have fun and do new things cheap/free as you'll find out as you browse MSE

All the best, you already seem to know where you want to be.

Thank you Linz. I agree. After transport, food is the next area we will aim to save money on. There is some great advice on the other boards here which should allow this. We certainly don't plan as well as we could do. Have had a look through the cupboards and plan to get through the contents before having another big shop.

Planning recipes (off here), and buying based on a list of required ingredients is definitely the way forward by the look of it.

thriftychap_2

ERICS_MUM wrote: »

Hi,



Once you see where you can cut down, decide on how much of that £1200 odd you could save and put it away as soon as you get paid. Leave in your accounts enough to see you through the month with a few treats but not enough to "waste" it.

Good luck, I look forward to hearing how you get on.

Linda :beer:

This is what i do. Its amazing how much of a motivation it is. Most i have managed to transfer into savings and not dip back into is £600 when i should have £1000 left each month...........where does it go???????

katsu

Ebay gives cashback through cashback sites. Only pennies but those pennies add up over the course of a year. You can earn nectar points shopping on amazon. Every time I want to shop online I look at nectar, top cashback and quidco then use whoever has the best offer.

I've only "made" about £40 from cashback sites but it is £40 I would not have otherwise.

As you are not in debt you could consider applying for a cashback credit card to pay for your monthly expenses, then pay it off in full at the end of the month. We've done that and again, you are looking at a few pounds a month, but all these things can add up to maybe £100 of free money a year. If you could put the flights on the CC that might net you a good cashback sum. Martin's article will give you a range of options for a cashback CC. Co-op are a very ethical bank with UK call centres, Bank of Ireland are probably good too.

Also - use the petrol prices website for the best local source of cheap fuel and use a loyalty card too if possible (so if asda and morrisons are the same price I go to morrisons and get Morrisons Miles).

Hope this is some help.

ellesbellesxxx

exactly that! Just make sure you delete your cookies in between comparison site and cashback site!

OCD

ellesbellesxxx wrote: »

exactly that! Just make sure you delete your cookies in between comparison site and cashback site!

why's that?

OCD

katsu wrote: »

Ebay gives cashback through cashback sites. Only pennies but those pennies add up over the course of a year. You can earn nectar points shopping on amazon. Every time I want to shop online I look at nectar, top cashback and quidco then use whoever has the best offer.

I've only "made" about £40 from cashback sites but it is £40 I would not have otherwise.

As you are not in debt you could consider applying for a cashback credit card to pay for your monthly expenses, then pay it off in full at the end of the month. We've done that and again, you are looking at a few pounds a month, but all these things can add up to maybe £100 of free money a year. If you could put the flights on the CC that might net you a good cashback sum. Martin's article will give you a range of options for a cashback CC. Co-op are a very ethical bank with UK call centres, Bank of Ireland are probably good too.

Also - use the petrol prices website for the best local source of cheap fuel and use a loyalty card too if possible (so if asda and morrisons are the same price I go to morrisons and get Morrisons Miles).

Hope this is some help.

Interesting. Have considered the CC option but don't use it enough to rack up the advantage but combined with cashback - might be a try.

Always associated Nectar with Sainsbury's and since I never shop there, have never considered this.

What is your experience with the Co-op bank like? How is there internet banking service. Can you give me a bit more info re ethics you mentioned?

Where is your name from? The food?

backinbusiness

I don't think you should "go a few months without clothing", especially in this the coldest of winters!! - but perhaps go without new clothing?? Brrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr!!