Mortgage free by 40 ... with Dh, 2 cats and the baby!

edited 19 June 2011 at 9:48PM in Mortgage-Free Wannabe
6 replies 933 views
Chopsie&ChelvisChopsie&Chelvis Forumite
409 Posts
edited 19 June 2011 at 9:48PM in Mortgage-Free Wannabe
Well, the baby isn't due for another couple of weeks :), but I am too big to waddle anywhere, so I have a lot of time to think about the future. We both want to be MF by the time my husband is 40 (when I will be a youthful 38 :rotfl:). This last year has been a minor disaster, with DH and I both being made redundant within a 6 month period, me when I was 6 months pregnant :mad: not nice at all.

However, DH has just been offered and accepted a job starting this September so we can finally start thinkiing about the long term. This SOA is our income and outgoings as we anticipate them to be in September onwards. I doubt we'll be overpaying before then as DH is just working supply (he's a teacher). The savings mentioned is my redundancy payment and I would like to pay it off the mortgage as a lump sum (which we are allowed to do - up to 10% can be paid off each year without penalty).

Our mortgage remaining is £125,298, although the house is only worth about £105,000, so we need to get it down drastically to have any chance of remortgaging in Sept 2012 when our fixed rate ends.

Here is our SOA - any help appreciated!

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.................... 1
Monthly Income Details
Monthly income after tax................ 50 (I mystery shop as a second income. Until I began waddling and was too uncomfortable to work much, I was making £300-400 a month. Even now, I'm making £100 a month, so this is a very conservative estimate. I have free childcare for when I want to mystery shop, care of my MIL).
Partners monthly income after tax....... 1719
Benefits................................ 90 (I've been advised that this is what I'll receive as child benefit).
Other income............................ 0
Total monthly income.................... 1859
Monthly Expense Details
Mortgage................................ 797
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 98 (paid at £118 for 10 months a year)
Electricity............................. 33
Gas..................................... 44
Oil..................................... 0
Water rates............................. 24
Telephone (land line)................... 0
Mobile phone............................ 35 (I am stuck in a £20 a month contract until April 2012, DH spends £15 a month)
TV Licence.............................. 12
Satellite/Cable TV...................... 40 (This includes line rental, broadband and calls)
Internet Services....................... 0
Groceries etc. ......................... 120
Clothing................................ 0
Petrol/diesel........................... 80
Road tax................................ 13 (Paid for annually in the months when we don’t pay council tax)
Car Insurance........................... 0 (Paid for out of savings from August 2011)
Car maintenance (including MOT)......... (Usually paid for/done by my dad)
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 14
Buildings insurance..................... 15 (included contents insurance)
Contents insurance...................... 0
Life assurance ......................... 10
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 (We mostly give people things I have bought when mystery shopping, hence no cost. We do spend some actual money though... I don't plan for it, so no idea how much).
Haircuts................................ 0
Entertainment........................... 80 (usually spent on meals out - neither of us drinks or smokes)
Holiday................................. 0 (used to save £100 a month for this pre-redundancies, not sure what to do now).
Emergency fund.......................... 0
Total monthly expenses.................. 1415

Assets
Cash.................................... 8800
House value (Gross)..................... 105000
Shares and bonds........................ 0
Car(s).................................. 800
Other assets............................ 0
Total Assets............................ 114600

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 125298..(797)......6.9
Total secured & HP debts...... 125000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 1,859
Expenses (including HP & secured debts). 1,415
Available for debt repayments........... 444
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 444
Personal Balance Sheet Summary
Total assets (things you own)........... 114,600
Total HP & Secured debt................. -125,298
Total Unsecured debt.................... -0
Net Assets.............................. -10,698
Created using the SOA calculator atwww.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

Replies

  • DragonriderDragonrider Forumite
    168 Posts
    Tenth Anniversary Combo Breaker
    Welcome, and good luck, not only with the mortgage, but with the new arrival!

    Dragonrider
  • SmlSaveSmlSave Forumite
    4.9K Posts
    Part of the Furniture Combo Breaker
    ✭✭✭✭
    Welcome to the board Chopsie :)

    How do you manage £120 on groceries? I'm trying to get ours down.

    Your SOA looks healthy
    Currently studying for a Diploma - wish me luck :)

    Phase 1 - Emergency Fund - Complete :j
    Phase 2 - £20,000 Mortgage Fund - Underway
  • SmlSave wrote: »

    How do you manage £120 on groceries? I'm trying to get ours down.

    Well, I think it is a much lower budget for food than a lot of families can realistically manage - we're lucky to be able to manage on so little, and once the baby is weaned, it will have to go up.

    The baby isn't here yet, so it really is only for 2 adults (I'm planning to BF, so we hopefully won't have the expense of formula milk) and 2 cats, who mostly eat dried food (a £2 bag lasts a good week, plus maybe £3-4 on wet food).

    Even before I was made redundant, I only worked part time, so I had time to shop around for bargains (we're near several supermarkets, a market, and lots of cheap shops like B+M). I had a lot of time to cook from scratch - I love baking and making big vegetable curries/stews etc, throwing in lots of cheap veg. I really don't think I could manage on such a low amount if I didn't have time to make my own puddings/prep veg/pies etc and to find bargains.

    I'm veggie (DH eats meat), which saves us a lot - and I only buy it when it's reduced and freeze it. My local co-op tends to reduce meat to less than half price at 3pm, so I try to time my visits for then! DH eats veggie a once or twice a week as well.

    And - probably the biggest factor of all - we only eat about 4/5 evening meals a week out of that budget. The 'entertainment' bit of the budget is mainly meals out and takeaways - we go to the local pub once midweek for a 2 for £8 meal (comes to about £12 with drinks), and sometimes get a takeaway on Fri or Sat night (about £10-12). Quite often, that's with DH's parents and they sometimes treat us. And we go there for Sunday dinner, so that helps too. The generosity of others helps us a lot :T I am very appreciative of them, and to my mum, who can't seem to turn up empty handed.

    Sorry for such a long response! Thanks to everyone who has replied :) I'm going to try to sort out a few bits to ebay, so hopefully that's a bit extra I can pay off the mortgage.
  • yukkibearyukkibear Forumite
    5.6K Posts
    Part of the Furniture Combo Breaker
    ✭✭✭✭
    welcome to the boards and good luck with your journey. I'm trying to get my shopping budget down as well, perhaps I might cook some more veggie meals
  • museumworkermuseumworker Forumite
    2.2K Posts
    Part of the Furniture Combo Breaker
    ✭✭✭✭
    Welcome and good luck for your MF journey. I would love to be MF before 40 too, but fear that is a slightly unrealistic target given the size of our mortgage (£186K) and my age (31!). How old are you now?

    Your SOA all looks fine to me, I would recommend you keep a spending diary though as I'm sure you'll end up spending on some of the unplanned items (e.g. holidays).

    What a good amount of income from MS, how much time did you have to commit to earn that?
    Mortgage [STRIKE]16/03/2011: £190K 01/01/2017: £107,729.65 [/STRIKE] 01/07/2017: £95,979.89
    OPs 2011-2016 = £45K 2017 OPs = £9250.20
  • Welcome and good luck for your MF journey. I would love to be MF before 40 too, but fear that is a slightly unrealistic target given the size of our mortgage (£186K) and my age (31!). How old are you now?

    Your SOA all looks fine to me, I would recommend you keep a spending diary though as I'm sure you'll end up spending on some of the unplanned items (e.g. holidays).

    What a good amount of income from MS, how much time did you have to commit to earn that?

    I'm 27 now, so 40 is a long long way away for me ... well, that's what I keep telling myself. I'm still slightly in shock that I'm not 19 anymore, 2003 was only a year or two ago surely :rotfl::eek:

    I think a spending diary is going to have to be my next step - I have a bad tendency to pick up 'bargains' or little treats that really add up. Holidays definitely need to be budgeted for as we both really enjoy travel, although I'm not sure if we'll be going too far once the baby is here.

    It took me quite a while to earn that much from MS as I had to build up my reputation with companies. In my main job, I only used to work term time only and only until 2pm, so I had a lot of time to devote to it - anywhere from 6 to 10 hours a week. It is so variable though - last week, I only had 2 jobs and after fuel/taxes etc, I made about £3 an hour, but the week before, I had 22 easy jobs which took me 7 hours and I made about £15 an hour. I am quite picky with jobs now though - with my sore back :( and the cost of fuel being so high, some jobs aren't worth my while, so I'm trying to just pick the most profitable ones.

    Just defrosting some bargain co-op chicken now for DH's dinner and writing the list for the fortnightly ASDA shop. An lovely parcel of baby clothes from the Tesco half-price childrenswear offer has just arrived, so I will have a bit of strength to resist the clothing section in ASDA (hopefully!) - I think the baby is already outfitted until she's about 3!
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