Peonie's journey to smart money management

Peonie

I have checked my bank accounts and I did not cancel the National Trust membership for my parents so another annual payment has gone out. I don't really mind as they have helped us out a lot. Hopefully they will use it more this time.

I exchanged £70 of Mr T vouchers for hotel vouchers. We're being naughty and plan to use them for my parents as a thank you.

My energy company has really increased our electricity and gas payment. It's gone up to £123 this month. Ouch. Update: I asked Mr P if they took a meter reading recently and they have asked for one by email. As he has not replied the hike in price could be because they do not know how much we are using. Hopefully next month it will go down again. Update update: Mr P has input the meter reading and they have credited the account with £45. But he told me not to expect it to go back down to £24 next month.

Mr P is back from the electrical hardware store so we have everything for the electrician in Monday. On Monday night we will have a hob and oven again. :j The hardware is a lot cheaper than the big orange store.

We've got the kitchen parts we wanted. Phew. We do need to go back to the big yellow and blue store to exchange some under bed storage boxes as they are the wrong size.

I bought a lot of 'sell by' food this week. A few deserts may have found their way into my basket. But I have picked up a lot of fresh fruit and microwavable meals to get us through until Monday.

Next Month we're going to a 1940s party so I'm looking for a WW2 dance hall dress. I've had a look on fleabay and there's a nice replica one for £19 plus postage. I figure hiring a dress will cost around £25 so I might as well buy one. My hair and makeup may be a bit tricky. We will need to hire Mr P's military outfit.

In the coming week, we're going to my parents for Sunday dinner and contributing a 'sell by' desert from the freezer. Then I'm seeing friends on Monday night at one of their homes. So other than fuel they should be free.

Peonie

Hello all,

A few months ago we reached our rainy day target even if the money is not in one place. Recently I have not said why I'm continuing to save rather than OP the mortgage. We're trying for a baby and as I would like to take over 6 months off work; it would take over 9 months for me to save for my maternity/baby stuff fund. So, I'm saving in the hope I get pregnant soon.

I'm trying to use my accounts as effectively as possible to gain the highest rate of interest.

When I change my current account to include the new tier of interest, and when the account is full, the new hierarchy of money saving will be:

1. Monthly saver, 8% AER, 6.4% net, interest compounded (c) annually.
2. Current account, 4% AER, 3.14% net, interest c monthly.
3. ISA, 3% AER, interest c annually.
4. Mortgage, 2.49% AER, interest c monthly.

Do you think that order looks right?

If I follow this order in October I will not move the monthly saver money into the ISA but into the current account to get it into the top tier. When the account contains over £6,000 interest is not paid rate so it will be moved into the ISA. In March I will move over the remaining funds to fill the ISA.

I will continue to review the accounts throughout the year. But hopefully in April/May I will reach my target and can focus on something else.

I am also toying with the idea of overpaying the mortgage a tiny amount each month to get it down to the nearest hundred. That way I won't feel too out of place on a MFW board.

Any comment are appreciated.

Thanks, P.

Tilly_MFW_in_6_YRS

Hi Peonie, you have really thought this plan through and it will be a big help next year.

I am not the best for advice on saving, as I struggle with the OP/save debate yself. However, as your driver is increased cash, to tide you over mat leave, then it looks like a very sensible approach.

Good luck, Tilly

Peonie

Hi Tilly, thanks for your comment. Sometimes its hard to know what is the right thing to do. I have used the 'pay mortgage with savings' calculator on MSE. It says I should repay the mortgage with spare cash unless I have a savings rate of 3.1%. As I have plans for the cash, e.g. an emergency fund is not good if I can't get hold of it for 2 years, I will keep the money in the easy access ISA.

Here's what I've done this weekend:

1. Spent too much time on MSE.
2. Yesterday had a NSD.
3. Gardened for a few hours yesterday and a few more hours this morning. We cut back a few trees and bushes, cut back some plants in preparation for winter, raked a lot and scattered some weed and feed. Even after a good 6 hours of hard work I have only finished the front garden and hardly made a dint in the back. It's a lot bigger; hopefully next weekend will be nice so I can carry on. I now have blisters on my fingers and pains I used to get from a legs bums and tums class. To quote Monty Don 'any gardener who needs to go to the gym is not turning over the compost enough'. I didn't turn over the compost but Monty you were right.
4. Phoned Mr T to inquire about the free and points cavity wall insulation offer. I need to have a survey first before they will say if the house is eligible and we can proceed.
5. Ordered the fabric drape fabric for the master bedroom. I have drooled over this fabric for over a year and finally it was in the sale at 30% off. After I ordered it I stupidly looked at TCB and could have got another 7% off. :mad:
6. Had Sunday dinner at mum and dads, we contributed the desert. Mum agreed the shoes I have are perfect for the 40s party.
7. Threw an extra duvet on my side of the bed instead of putting on the heating.

I'll probably be back on Wednesday.

Px

Tilly_MFW_in_6_YRS

Morning Peonie. Thanks for the tip about th MSE calculator for saving vs OP. It has finally answered my question once and for all.

Thank you

Tiily x

Peonie

Hi Tilly, no problem, it's nice to know someone has found something useful in my ramblings.

Today was a NSD, I had a lovely evening with friends, my blisters have gone down, the electrician has finished in the kitchen - hurrah, tonight we had our first meal on the hob and oven of turkey escalopes (sp) and veg (all sell by food) and chips, and I am warming my feet on a hot water bottle.

Confession, I did throw away 2 'sell by' ready meals that we did not eat in time. When I bought the meals there was not enough room in the freezer to store them. I will eat meat a day, 2 or 3 after its use-by date but 4 is going too far. But that means we can live off freezer meals for a while.

Night everyone.

Px

Peonie

Hello MFWers

Me and Mr P had a lovely night in a local city. There was a camera crew and a lot of props which made it a bit exciting. I kept looking for someone famous :-(

We had a meal in a restaurant we have wanted to try for years, had a walk around, bought a present to a friend's child and came home.

Night, Px

Peonie

Peonie wrote: »

Mr P had to wash his jeans 3 or so times to get rid of the washing machine stink. We have bought a different washing detergent in the hope the smell will go.

The smell has gone. :j Washing the machine and changing detergent did the trick. Plus, I was sick of the old smell; this one is like a breath of fresh air.

Peonie

I was determined to make today a NSD, rather than buying much needed tea bags for work I took a couple of handfuls from home.

I kinda took a packed lunch to work. I grabbed the ingredients from home and made my lunch at work. Although it's a pain at work at least I save time in the morning. Today makes it my 3rd packed lunch this week.

For dinner we had sell by pies and sweetcorn, served with chips. :whistle:

Peonie

Woo hoo :j:T:j:T:j

I set up a payment transfer to our mortgage account a few minutes ago and made my first overpayment. I love it. I OP'd £41.46. I wasn't going to bother with the pennies but then Tilly said she has OP'd the pennies may times and it all adds up.

So there you have it, 14 months after our first overpayment I have made our second. Our mortgage total is now:

£148,000.00

And, I have even knocked another month off the mortgage, the end date is now:

May 2036

(Skips off to update signature).