Hints and Tips to become a member

eddiemacthedog

Would love to be a member of this club thats for sure, i will be moving early next month to a bigger house and yes you guessed it a bigger mortgage, from where i am just now my mortgage will go from 47k to 100k, but the new house is worth £235k so very low LTV.
What i was wondering is my mortgage payments will be £444 per month but my wife and i have a net income of about £3300 per month and i was thinking of maybe paying £1000 each month to get it really down quickly and cleared in 10 year if possible, do you think this is realistic? we have a 1yr old daughter and have allocated about 2k a month for bills/shopping/insurances etc etc. Any tips on where to save more and cut back even further really appreciated.
Thanks in advance:T

CathT

You still have a good disposable income so could really tackle the overpayments. Some of us post SOA's (statement of affairs) to get tips on saving on bills etc. Have you read through some diaries to get some hints?

Use the calculators too and see if your goals are achievable. www.thismuchiknow.co.uk is a really good one (although there are others!)

Good luck, I have a 10 year mortgage free dream too.

eddiemacthedog

Here is a rough idea of my outgoings:

Mortgage: £444
insurances £165
tv sky + licence £82
council tax £170
savings £100-200
shopping £400-500 me, wife and baby
fuel £200
we have income of £3300 approx

originalmiscellany

A full SOA would be great!

http://www.makesenseofcards.com/soacalchelp.html

eddiemacthedog

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 2800
Partners monthly income after tax....... 500
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3300
Monthly Expense Details
Mortgage................................ 444
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 175
Electricity............................. 50
Gas..................................... 50
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 12
Mobile phone............................ 10
TV Licence.............................. 12
Satellite/Cable TV...................... 70
Internet Services....................... 5
Groceries etc. ......................... 400
Clothing................................ 0
Petrol/diesel........................... 200
Road tax................................ 40
Car Insurance........................... 50
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 80
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 10
Buildings insurance..................... 15
Contents insurance...................... 5
Life assurance ......................... 35
Other insurance......................... 15
Presents (birthday, christmas etc)...... 30
Haircuts................................ 0
Entertainment........................... 40
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1758

Assets
Cash.................................... 10000
House value (Gross)..................... 235000
Shares and bonds........................ 20000
Car(s).................................. 14000
Other assets............................ 0
Total Assets............................ 279000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 100000...(444)......2.35
Total secured & HP debts...... 100000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 3,300
Expenses (including HP & secured debts). 1,758
Available for debt repayments........... 1,542
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 1,542
Personal Balance Sheet Summary
Total assets (things you own)........... 279,000
Total HP & Secured debt................. -100,000
Total Unsecured debt.................... -0
Net Assets.............................. 179,000
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

CathT

Your gas and electricty are quite high, maybe you could get a better deal on that. What about your water rates?

Otherwise all looks good and budgeted for.

eddiemacthedog

i live in scotland and water is built into the council tax, the gas and elec are monthly payments that they have set, but i am always in credit, will look into that for the new house once i move in.

CathT

If you do change supplier/deal at any point see if you can go through a cashback site. I use these as much as I can and always OP the money I get back.

eddiemacthedog

anybody any other tips etc?

Tabatha_Kitten

You seem to be doing fine to me. Perhaps adding something in there for clothing, haircut & holidays would give a more accurate picture as to what is left to throw at the mortgage.
Have a look at the car maintenance figure, looks a little low to me. Budget each month and put aside for when the tyres need changing or the exhaust needs replacing etc etc so that it doesnt have to come out of your emergency fund.
Menu planning could cut your grocery shopping down a bit.

cha97michelle

I think for me, the key thing is setting yourself a target. I'd like to pay off xxx this year. I would like to be MF by yy years old.

Then, you can be thinking about what you would need to pay off each month to do that, and then aim for that.

When i first started i was a bit random, putting money in when i thought i could afford it. What really helped me was starting to think about my budget as monthly and annual amounts, and then i started moving money for all the annual bills straight away once we are paid, then set aside money for the DDs for the monthly stuff, then what remains is for food and fuel only. The more i save out of that, the more i can overpay.