Vixstar's 3 Step Plan to MF-dom

tiggerjj

Hey Vixstar,
Ive just started my MFW diary as well, so HI!!
I also have and offset mortgage, dont know who yours is with but mine is with Woolwich. You say you have a mortgage rate of 3.49% and you will have OU fees to pay soon and were going to pay in a lump sum as its cheaper than paying by DD.

However i was thinking, maybe you should check out how much extra and if its less than 3.49% extra then in my blonde little brain the money would be better in the offset and then set up the DD from the offset account. I dont think im making too much sense, maybe someone else can explain what i mean a bit clearer!

Also I have a couple of CC for monthly spending, and they clear completely by DD at the end of the month and so my money sits in my current account (offset linked to the mortgage) for as long as possible.

Just some ideas....

Vixstar

Kingster thanks for pointing me towards that mortgage calculator - very motivtional!

Tigger I hadn't considered the benefit of having the money sat in my account offset against my mortgage - will have a good look at the small print before I payoff ny monthly bills.

tiggerjj

Vixstar, if you are feeling really geeky then there is an excel sheet somewhere on here where you can change all the numbers and see the effect, it goes into amazing detail. ill see if i can fine the loink to it for you.
It makes me feel better every time i look at it!

tiggerjj

and here it is!
https://forums.moneysavingexpert.com/discussion/1157173

Vixstar

Tigger thanks for digging that spreadsheet out for me can't wait to have a go plugging a few figures in,unfortunately can't open it on the net book I'm using,but it looks like it has some interesting calculations for offset mortgages.

I have just heard back from my loan company and I can over pay my loan. It'sa little faffy -I have to let them know how much I want to overpay, they send paperwork informing me of the effect of the payment on the length of my term or monthly payments, I select which effect I want, return the paperwork, and then contact them to transfer the money. But it'lldefinitely be worth it. I think I will try and make my overpayments in £1000 chunks, which should be every couple of months if all goes well, but I may rethink this and go for monthly if everything runs quickly and smoothly.

And as to how I'm doing with my first aim of keeping a spending diary - well it seems to be going okay keeping a noteof all spends and then transferring it to a spradsheet. Not trying to modify my spending in anyway yet but it is making me consider spending money when I might not havebefore.

Vixstar

Well still keeping the spending diary, although I do need to transfer some details from receipts from over the weekend into it. It is now very evident that I need to get my food costs under control. Going to have a think about how best to achieve this over the next few days. Doesn't help when I went to a work place canteen today expecting my usual subsidised price and ended up paying the best part of £5 for pasty, beans and a drink. I know what I'll do next time I visit that place over lunch time!

Am now checking my bank account on a daily basis even though I know nothing is due out until towards the end of the month. Will also be able to start the daily check for advance notice of this month's pay on Wednesday. And I was tempted into looking at Rightmove and found some lovely places, need to get my place back on the market and start disappearing the mortgage!

Vixstar

I really could scream/cry! It's nothing too major in the scheme of things but my flat management company as well as charging us exorbitant fees now seem incapable of the simple job of removing said fees from my bank account. Changed banks in February, paperwork went out, they took money from new bank account. Oh good it's all worked properly thinks I. Oh no it hadn't the month after they tried to take it from my old account who turned down the request, so I eventually contacted them and they agreed all their fault re-jig payments to go from normal account. When the finance person spoke to me she said the wrong sort code I corrected her she agreed, now billing schedule came through - oh good it's all worked properly thinks I (admittedly not quite reading all the details correctly). Fee payment day arrives, no fees gone from my account, I've just checked the paperwork with my bank details alongside and they've only gone and used the incorrect sort code - morons!!! I know I can speak to them tomorrow to sort it out, but I end up feeling guilty like I'm with holding payment intentionally or something and I'm not at all. Going to see if I can pay this month's money over the phone and then hopefully end this stupid palaver.

Anyway on a more MFW theme - spending diary has been a bit neglected but with a recent update it all looks quite scary. Not overly sure how I have any money left this month but there you go. Areas to work on next moth are food spending and my own spending money. I know I can talk myself into a one off this month only type of big spend all too easily, which actually isn't a problem as I can affrod it but now I would like to have some extra left at the end of the month. And the food spending I'm going to have to have a little think about.

On a properly positive note done two PC surveys this week, slowly getting back into DY and forcing myself to answer all surveys I receive and, by not using my mobile internet, I've managed to reduce my mobile bill by £4 this month.

Onecoincloser

don't worry about it vixstar....these things are sent to try us!!!

just think about how well you are doing already...:T

Vixstar

And finally payday appears and even with very little reign on my spending and some unusual expenses this month I still have £340 leftover at the end of the month. I'm about to add a little bit to this and then I will be happy to say that I have achieved the first step of my MF plan - to have my savings at £7000. Now I have a huge incentive not to splurge this month as whatever is left over this month will go as an OP to my car loan.

Having looked at my spending diary I think the area I'm going to focus on this month is my food spending as I spent over £200 on one person which is crazy. think working on one 'issue' a month should help me to keep focussed and not to feel overwhelmed and to quit.

Vixstar

Ooops seem to be getting ahead of myself, having looked at my initial post my original target was to maintain £7500 in savings. Hmm going to have to have a think about this as I'd really like to start attacking my loan and mortgage.