Tini's Task to MF...

Tiniker
Tiniker Posts: 63 Forumite
edited 3 July 2013 at 10:40AM in Mortgage-free wannabe
We received our mortgage statement and as of today the mortgage stands at £103,335.85! Seeing all the interest that we have paid in the last 6 months on paper since we took our new deal was sickening. It gave us the extra push that we needed to actually make OP’s happen. Also to actually start a diary to keep us motivated. The plan is to get the emergency fund finished which is going into an ISA to it’s limit – nearly there £4196.18/£5100. Then save, save, save, op, op, op (hopefully), but life has a funny way of always changing the best laid plans. It will be hard and we will have to find the balance between saving/op and living.
I’m so glad I’ve finally started a diary.
Tini x
Mort Dec 11 - £100k
Mort Dec 13 - £83k
Original MFD - 2032 ** Aim MFD - 2026 ** Now 2021
«134567

Comments

  • Tiniker
    Tiniker Posts: 63 Forumite
    Ok, job no 1. complete. OP are done the old fashioned way either cheque to HQ or debit card over the phone. The latter suits me better, I like to see the money come out of the account straight away.
    Next jobs are to investigate ways to lower the monthly shopping budget. I need to investigate Costco, as to whether I can get a card and of course whether it’ll be worth travelling from leic to cov (think that’s the nearest one to us). If not Makro may be the next option. I already shop at Lidl and Asda, buy the dog food online etc, so I’ll see if bulk buying from either of them can make any difference. For 2 adults, 2 growing boys (11 & 7) & one cat I spent £ 468.87 in a five week month, I don’t think that’s too bad is it?
    Can anyone tell me how to work out the daily interest on mortgages?
    Tini x
    Mort Dec 11 - £100k
    Mort Dec 13 - £83k
    Original MFD - 2032 ** Aim MFD - 2026 ** Now 2021
  • Hi tiniker, goodluck with your plans and i am looking forward to following your progress.

    To work out your daily interest you need to take your outstanding mortgage (ie) £103335, divide this by 100 and then multiply by your interest rate (eg) 5%. This gives the yearly interest and you need to divide this amount by 365 (days)

    I have worked this out for your, assuming your interest rate is 5%, but obviously you can change this to your actual rate

    103335/100 = £1033.35 x 5 = £5166.75 (yearly interest)

    £5166.76/365 = £14.16 (daily interest)

    This amount will go down a few pence everymonth as your outstanding balance reduces

    Hope that helps :D
    Credit card £4461.15Home mortgage £137117Buy to let mortgage £83,000
  • Tiniker
    Tiniker Posts: 63 Forumite
    Thank you so much wantabettalife. I've enjoyed reading your diary.

    The daily interest rate really puts it into even more into perspective, but hurts as well!

    This weekend in our house is the start of our MFW journey...
    Mort Dec 11 - £100k
    Mort Dec 13 - £83k
    Original MFD - 2032 ** Aim MFD - 2026 ** Now 2021
  • Froggy-G
    Froggy-G Posts: 2,145 Forumite
    Hi Tiniker! :j

    Well done & good luck on your MFW journey!

    Cheers
    Froggy :D
    Froggy's New Lillypad Fund
    Total so far: £ 10,009.77
  • yukkibear
    yukkibear Posts: 5,556
    First Anniversary Combo Breaker
    Forumite
    Hi Tiniker, good luck with your journey
  • SmlSave
    SmlSave Posts: 4,911
    First Anniversary Combo Breaker
    Forumite
    Hi Tini :) Welcome to MFW.

    I note that you wish to cut down your grocery budget, the Old Style thread is great for tips and this website is wonderful IMHO http://www.cheap-family-recipes.org.uk/ . I tend to pick and choose receipes as I'm not dedicated enough to follow the month plan. :o sorry weezle

    Look forward to reading about your journey
    Currently studying for a Diploma - wish me luck :)

    Phase 1 - Emergency Fund - Complete :j
    Phase 2 - £20,000 Mortgage Fund - Underway
  • Tiniker
    Tiniker Posts: 63 Forumite
    Thank you everybody for making me feel welcome.

    I'll take a look thanks SmlSave.

    Just found one element that will save some money on the groceries. I use the healthfood shop to buy my veggy foods which is quite pricey. But i've just found the wholefood coop online and they deliver free if i spend over £30. Any savings there will go towards the OP/savings pot. Wish i'd of known about them before i went and spent a hefty amount in there at lunchtime! Oh well i know now and will be making a bulk buy when i next need some.

    OH got paid today, so to the spreadsheet i go to work out the monthly spends and see how much we can save.

    Tini x
    Mort Dec 11 - £100k
    Mort Dec 13 - £83k
    Original MFD - 2032 ** Aim MFD - 2026 ** Now 2021
  • Tiniker
    Tiniker Posts: 63 Forumite
    Transferred £600 into the emergency fund last night. Can't wait till i get paid so that will be finished, it feels more like an emergency fund challenge rather than MFW. But it is for the greater good, and after reading everybodies diary's on here, i know the fund must be there before OP.
    Joined the Feb GC to see if i can save any OP money there. I've allocated 500 food spend for feb in our budget, but challenged myself to 450. If i meet the challenge then the 50 quid saved will go into the OP pot.

    Tini x
    Mort Dec 11 - £100k
    Mort Dec 13 - £83k
    Original MFD - 2032 ** Aim MFD - 2026 ** Now 2021
  • Tiniker wrote: »
    For 2 adults, 2 growing boys (11 & 7) & one cat I spent £468.87 in a five week month, I don’t think that’s too bad is it?

    The amazing Wezel (who I see someone else has already mentioned) has a January Grocery Challenge for 2 adults and 2 childre set to £40! I personally couldn't manage to feed only myself for that amount but I have been surprised to be able to cut my food budged down to £70 for this month without much effort at all. So I think with a bit of work you might be able to halve your food costs.
    Mini Challenge - Halve 2nd Mortgage by Year End
    Starting: £10,000 Currently £8,142.62
    £3,142.62 to go!
  • Hi tiniker, goodluck with your plans and i am looking forward to following your progress.

    To work out your daily interest you need to take your outstanding mortgage (ie) £103335, divide this by 100 and then multiply by your interest rate (eg) 5%. This gives the yearly interest and you need to divide this amount by 365 (days)

    I have worked this out for your, assuming your interest rate is 5%, but obviously you can change this to your actual rate

    103335/100 = £1033.35 x 5 = £5166.75 (yearly interest)

    £5166.76/365 = £14.16 (daily interest)

    This amount will go down a few pence everymonth as your outstanding balance reduces

    Hope that helps :D


    That's a fantastic bit of information there - very motivating.... :D
    Mini Challenge - Halve 2nd Mortgage by Year End
    Starting: £10,000 Currently £8,142.62
    £3,142.62 to go!
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