saving £100,000 ten years to utopia !!

streethack

Having revived my old user name and password I am going to begin the process of paying of my mortgage in ten years. The way im doing it is perhaps a little bit different to over paying I have decided to save along side my mortgage

Being mortgage free by the time im 41 would be a dream but i hope an achievable one. Heres where im am

Mortgage £158,000 currently being switched to a first direct 5 year fixed at 3.89%.

Freedom pot
Isa saving £5,100 maturing october 2012 @3.2%
general saving (G.S) maxium to be transfered to Isa each year £5642
First direct savings (F.D.S) £600 this account is at 8%
Company share scheme (C.S.S) £581

As you can see im a long way off:(

Having compeltly overhauled the way i spend money I have found this to allow me to have the same standard of living while still being able to save. The biggy for me was reducing my shopping bill from £130 a week to £65 by online shopping and also going to a meat market every couple of months. Other things include switching home and buildings from £400 a year to £165 WITH £65 cash back!! And just cutting back on waste, knowing where my money has been frittered away for years and been a huge eye opener.

We currently have savings separate from this should we need it. Wish me luck I know this is possible from being inspired on here. Any advice would be welcome.



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SmlSave

Wishing you lots of luck streethack

dimbo61

Unless your ISA,s are earning you 3.89% tax free you are losing money so yes have a good emergency pot of upto £16K but then overpay the mortgage ( check with FD)
We are on target to clear our mortgage in 8 years or less so keep at it

streethack

Just an update really

ISA :- £10200
General savings £629
F.D savings £1200
Company shares £826

2010 target £5100 reached :j
2011 target £5100 currently £1829

Still a long ways off £100,000 but slowly slowly im getting there. Have been trying to be more economical, manged to get 530 miles out of 51 litres if diesel so its all adding up. the online shopping has helped a ton.

another great thing is I never realised I had £100 tesco vouchers which I doubled up and spent on a table and swinging hamock for the garden.

Amazing how I really love finding a bargain now gives me a real sence of joy.

GeorgieFTB

dimbo61 wrote: »

Unless your ISA,s are earning you 3.89% tax free you are losing money so yes have a good emergency pot of upto £16K but then overpay the mortgage ( check with FD)
We are on target to clear our mortgage in 8 years or less so keep at it

He's right, you seem to be paying more interest than you are earning, you might want to look at that.

If I was you...
I would fill this years ISA as quickly as possible, look for any deals on regular savers etc that are greater than your mortgage, everything else gets paid into your mortgage until you reach any limit on it. Then find the next best account.

There is a mortgage calculator tool on MSE that should help with your sums.

Good luck, your timetable is similar to mine but I'm not sure I'm going to make it!:D

Gx

streethack

Yeah I get that im not doing this a conventional way. Just a little update for now.

ISA: £10,200
General savings: £929
FD savings: £1500
Company shares: £1187

2011 target £5100 currently £2429

Im still a little confused about ISAs, I currently have two seperate ISA one is a two year ISA maturing in oct 2012 the other is a one year ISA maturing April 2012.

I hope to start a new ISA in April 2012 using the 2011 target. I understand if I withdraw the two 2012 ISAs once mature I wont be able to save them again. But from what I understand if I transfere them into a new ISA I can have tax free savings even though I have started a new ISA for 2012.

Is this correct?

streethack

After getting a loft conversion done and spending more than I am expected im trying to get back on track.

Update
ISA £10,200
General savings £543
FD Savings £3000
Company Shares £1871

2011 target £5100 currently £3543

streethack

Have starting to pay back loan for loft conversions, luckily my low mortguage rate is paying back most of the difference 01-09-2011 was the first payment *

LesleyKD

Yeah thats right, you can transfer an old ISA into a better Isa and so long as you dont pay new. savings into it you can open another isa for new savings. That way you don't lose compounded interest
LK

streethack

Got my first bit of interest today with one of my ISA must be from Oct to Oct. Came in at an interest of £163 also checked my other ISA which has an interest of £56. So that takes my ISAs upto £10,419. Nice to see these start paying off. Wonder what my First direct regular saver will bring in as I have been paying the maxium into that only two months until that matures. Squeezing the most amout of interest out of my money is going to be key to saving £100,000.

streethack

Happy New Year everybody and heres to a Happy money saving year for every one

Well end of the year and I have missed my target of £5100. Building a loft and having another little one made it difficult here.

Heres the update:

ISA: £10,419
General savings: £443
F/D savings £3,600
Company Shares :£2,466

2011 Target £5,100 currently £4043

Its not all bad news my first Direct savings will be maturing at the end of Jan also i recieve a Christmas bonus at the end of Jan which I have ear marked for my savings so heres hoping I can achieve my 2011 target. On ward and up ward for 2012! I can taste the freedom already :beer: :beer: