pippa80 is a mfw!

pippa80

Hi there MSErs,

I'm going to try and do a MFW diary. We have been overpaying our mortgage since we got it in October last year. It's with the Co-op, which has a great overpayment fund thing that we are using for our savings, in addition to our regular overpayment. Overall, we're doing well but I think we could do better!

Our 'regular' overpayment is £190/month.

Here is our SOA:

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................ 1700
Partners monthly income after tax....... 1800
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3500

Monthly Expense Details
Mortgage................................ 903
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 8.33
Council tax............................. 95
Electricity............................. 30.5
Gas..................................... 30.5
Oil..................................... 0
Water rates............................. 19
Telephone (land line)................... 18
Mobile phone............................ 45
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 12.5
Groceries etc. ......................... 200 - includes organic box and ocado, don't really want to be less 'ethical' with this
Clothing................................ 40
Petrol/diesel........................... 50
Road tax................................ 2.5
Car Insurance........................... 48.25 - save each month and paid anually
Car maintenance (including MOT)......... 50 - as above
Car parking............................. 0
Other travel............................ 242
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 6
Buildings insurance..................... 6.13
Contents insurance...................... 6.6
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5 - only the 2 of us, so don't need to buy for family overseas
Haircuts................................ 15
Entertainment........................... 900 - I know this is ridiculous, it is the amount we don't transfer into our joint account for bills, overpayments etc
Holiday................................. 350 - saving to go overseas to my brother's wedding next year
Emergency fund.......................... 100
(Unnamed monthly expense)............... 0
Total monthly expenses.................. 3195.31


Assets
Cash.................................... 6800
House value (Gross)..................... 190000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 199800


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 145000...(903)......4.69
Total secured & HP debts...... 145000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 3,500
Expenses (including HP & secured debts). 3,195.31
Available for debt repayments........... 304.69
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 304.69

Personal Balance Sheet Summary
Total assets (things you own)........... 199,800
Total HP & Secured debt................. -145,000
Total Unsecured debt.................... -0
Net Assets.............................. 54,800

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

newgirly

Hi pippa welcome to the mfw board. I'm sure someone will be along to advise you on ways to squeeze a bit more from your soa, But it looks like you have the potential to make massive op's if you choose to, with the left overs each month plus that huge entertainment budget. Good luck, will keep an eye out for your diary.

cha97michelle

Your overpayment each month is as big as my mortgage payment. Plus you have lots of potential there if you ever decide to really go for it.

All i can say is if you plan to have kids in the future, now is the time to be doing it as it does get harder (though not impossible) when they arrive and need stuff too, just when your income takes a hit too.

Good luck.

Onecoincloser

Welcome aboard and good luck with your journey!:D :hello:

lincoln-potter

Hello Pippa,

Welcome to the boards.

There are a few items on your list I am sure that could be trimmed down, but it depends really on how soon you want to be MF and what your targets are?

wynnvegas

Hi Pippa,

Your £900 a month resonated with me. When I did our "ok, let's have a proper go at this" analysis, I identified an average of just over £800 per month was going on entertainment and the like. As long as you've got the balance right, obviously do whatever suits you best. We trimmed the £800 down markedly and it probably knocked another 6 months off our mortgage term. Hope to see you on the mortgage free roll of honour board in the not too distant future.

Cheers,

Billy

sarahevie

I think it's about balance, that entertainment seems absolutely huge - but life is for living:D

OH and I regularly have "if I was on my death bed conversations" it is strange, but does help focus the mind.

As an example this meant this year we have decided on not one but two hols and maybe a third - could have paid a bit more off the mortgage without them - but then life would be dull without.

Good luck - we have around 2/3 of your income very similar mortgage but are managing £5oo a month OPs (not sure how sustainable this is) but shows it can be done:D

pippa80

Thanks all for your comments and encouragement!

I would like to pay off loads, but the OH is more keen to live for now, so we will go for a balance

We are sitting down to break down what that entertainment budget really goes on and aim to trim it down a bit and go from there.

I will report back!

hastie

Hi, I think its generally true that one partner tends to lead the MF journey. However you need to sell the idea of being mortgage free to your partner else it wont work. Having fun and overspending are not the same!

If your partner could see that in 5 years you could potentially have a much larger 'slush fund' for fun and games, then maybe he would embrace the idea more fully?

Starting boldly is good, and its surprising how quickly the balance begins to reduce. Well done for posting and good luck with your journey!:)

edinburgher

Hi Pippa.

Great that you started OPing so soon - OH and I want to buy next year and are already talking about how quickly we could pay it off

pippa80

Thanks all. The OH is broadly onside, it's just that our natural instinct on these things leans in opposite directions. Here is the result of actually breaking down where that 'entertainment' budget goes. What is left in 'entertainment' is genuinely pub, dinner, gigs etc. The OH is a fairly serious amateur sportsperson and travels quite a lot with his sport, which is a) expensive and b) results in him buying food on the run, which is also expensive! ven so, I think we can make some improvements. He also reckons I underestimated the grocery budget and remembered some more expenses that I forgot in the first SOA.

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................ 1700
Partners monthly income after tax....... 1800
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3500

Monthly Expense Details
Mortgage................................ 903
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 8.33
Council tax............................. 95
Electricity............................. 30.5
Gas..................................... 30.5
Oil..................................... 0
Water rates............................. 19
Telephone (land line)................... 18
Mobile phone............................ 45
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 12.5
Groceries etc. ......................... 250
Clothing................................ 80
Petrol/diesel........................... 50
Road tax................................ 2.5
Car Insurance........................... 48.25
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 242
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 6
Buildings insurance..................... 6.13
Contents insurance...................... 6.6
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 15
Entertainment........................... 225
Holiday................................. 350
Emergency fund.......................... 100
(Unnamed monthly expense)............... 0
Cleaner................................. 80
Lunches/meals on the run................ 180
Gym..................................... 45
Sports.................................. 150
Total monthly expenses.................. 3065.31


Assets
Cash.................................... 6800
House value (Gross)..................... 190000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 199800


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 145000...(903)......4.69
Total secured & HP debts...... 145000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 3,500
Expenses (including HP & secured debts). 3,065.31
Available for debt repayments........... 434.69
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 434.69

Personal Balance Sheet Summary
Total assets (things you own)........... 199,800
Total HP & Secured debt................. -145,000
Total Unsecured debt.................... -0
Net Assets.............................. 54,800

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.