Mortgage free in 10 years

mbbetter

Firstly congrats on going for it!

Quick question - no budget on holidays or going out?

Engeroosi

Have arrangements with family and friends that I would normally buy gifts for that we dont do birthdays and we do a secret santa. Which is max £15.
Clothes are not a regular purchase, every now and again we might buy some but we don't go mad.
There was an allowance of 2k a year for holidays and also 100 for going out per month and 50 for eating out. I work away alot with work so most of the time i get expenses.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 2100
Partners monthly income after tax....... 1400
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3500
Monthly Expense Details
Mortgage................................ 1300
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 144
Electricity............................. 30
Gas..................................... 34
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 9
Mobile phone............................ 35
TV Licence.............................. 13
Satellite/Cable TV...................... 19
Internet Services....................... 13
Groceries etc. ......................... 250
Clothing................................ 100
Petrol/diesel........................... 50
Road tax................................ 15
Car Insurance........................... 33
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 26
Contents insurance...................... 0
Life assurance ......................... 12
Other insurance......................... 0
Presents (birthday, christmas etc)...... 15
Haircuts................................ 40
Entertainment........................... 150
Holiday................................. 200
Emergency fund.......................... 0
Total monthly expenses.................. 2508

Assets
Cash.................................... 6500
House value (Gross)..................... 170000
Shares and bonds........................ 500
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 182000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 143000...(1300).....6.29
Total secured & HP debts...... 143000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 3,500
Expenses (including HP & secured debts). 2,508
Available for debt repayments........... 992
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 992
Personal Balance Sheet Summary
Total assets (things you own)........... 182,000
Total HP & Secured debt................. -143,000
Total Unsecured debt.................... -0
Net Assets.............................. 39,000
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

ps realised some of the things I thought were on there werent so done another one.

Engeroosi

Well this is the first post of my diary, new to writing diaries so here goes.

Cheap weekend, had visitors so we stayed in had dinner and drinks, dinner was steak so wasn't cheap but drinks were left over from xmas. Cheaper than a trip into town which adds up to over £100 for my wife and I.

Also my gambling addiction paid off for the month of Jan, up £260 which is unusual, normally either lose or break even so thats a boost.

Start my new job tomorrow after not working since Jan 5th, a month without wages is a bit of a pain but should get a full wage middle of Feb. Will really start to pay the mortgage off from March onwards. Have a cheque for £100 waiting to overpay as soon as I get the wifes name changed on the account.(It's taken 2 weeks so far and RBS sent another hoop for us to jump through again this morning)

Well if anyone can think of any ways I can make extra money or save money then please do help out.

getmore4less

If you have not been paid then what have you been spending.

The SOA needs updating since cash reserves have probably gone down.

I would allocate some of your surpluss to the emergency fund to start building that up to 6months spends( and you settle into the spend pattern).

I would also split the mortgage payment into payment and overpayment this gives you a better picture of your must spends.


I think you also need a seperate gambling pot that has a limit on how much it gets fed from income(idealy zero) and at some point in the future if you actualy have a profit pay down the mortgage.

Any medium(5year) term spends like white goods or new cars needed to be saved for?

£143k over 10 years is around £1610pm

Whats the actual mortgage outstanding, if you have paid £1k for 2 years 3months it should be around £137k which is round £1500pm.

Engeroosi

I have taken my spending over the last 3 weeks into account with my SOA. We have recently got married in December and had a 5week holiday which we had spending money saved up for and we had surplus which has took us up until now and still have some left over. Our finances are actually in better shape than the SOA.

We have savings which would cover 6 months bills. The mortgage is currently at 138,000 ish. Our car is reasonably new, 3 years old. So no plans to buy a new one and our white goods are all 2 years old and should last for another few years at least.

Thanks for working out roughly the numbers required to pay per month, this gives me something to work towards. We do have the flat which has around 40k equity and is rented out. I am unsure what the long term plans are with this flat, possibly sell in 2 years when the fixed rate expires and then use any profit to reduce the mortgage when I remortgage in Oct 2013. By this point I am hoping that we are both earning more and able to have more disposable income to overpay more in the later years.

Engeroosi

Have just evaluated the money situation from all of my accounts and found some extra money I forgot i had stashed for spending on our honeymoon, made me smile. £2000 off the mortgage just like that!!!

Engeroosi

Ok, Have a cheque for £100 which I am away to put into mortgage, not alot but it all adds up I guess. Just read a post about someone who sold the flat they were renting to clear their mortgage, might be something for me to consider also, although it wouldn't clear my mortgage, it would put a serious dent in it. Maybe once I come out the fixed rate periods on the mortgages I will look into this, not for another 2-3 years by which time hopefully house prices will of steadied or gained a little and interest rates are still at a decent level.

Anyway Im rambling on now, not that anyone has prob read this far.

originalmiscellany

I've read it! I read most posts in this forum, but thought I'd say:
a) Pay the cheque off and keep going

Engeroosi

the cheque has been paid in, and hoping to pay more off once I get paid, got a feeling that I could perhaps do this in 10 years. I thought it was just a pipe dream and that I might get it down to 15 years at best but now I see how easy it is just to stick 100 here and there.

Think I should maybe set a target for end of the year?

originalmiscellany

I would certainly! I worked it out by: Average amount I save over several months *10. It allows some flexibility and give. Also means you should be able to reach your target which is a great bonus.