The Matrix - Re-Evolution!!

thriftyscotslass

You spoke once about thrifting yourself into paralysis MG and it is so true, that feeling of being stifled and stuck is just pants

So enterprise it is then - bring it on

Winnie_in_Pooh

I like the sound of enterprise too fed up of scrimping, still want to save but want things to be fabulous for my boys!

MG - could you explain a mortgage tree to a newbie?

Bitsy_Beans

Dorastar wrote: »

Can't overpay mortgage and stuck in a fixed rate till next year with huge early repayment clause so trying to squirrel a bit away to pay off a chunk when we re-mortgage. So far have squirrelled away bog all

Not feeling very much up for life today, not helped by overdoing it with choccy fountain last night bleurgh, and then yet more rain today and two grouchy kids. Good intentions are still there but this greyness outside is pretty much reflected inside. Am off to attempt a few 15 mins accompanied by loud music.

I am quite lucky, despite being on a fixed rate mortgage (over 5% <weeps softly>) Nationwide allow up to £500 overpayment per month. Per mortgage. So as I have 4 different mortgage account numbers (accrued from house moves, advances etc) in "theory" I could over pay my mortgage by £2K a month without incurring any penalties. <sigh> if only I had that sort of money in the first place to over pay :eek:

Feeling tired, demotivated, struggling to get anything done at home with kids at home. Not enjoying the local rioting either, am suprised just how much this has made me feel angry and sad. Anyway enough of my rambling. Only 2 weeks til we're off to sunny (or it had better be ) Norfolk and quite frankly I can't wait!

Firewalker

thriftyscotslass wrote: »

You spoke once about thrifting yourself into paralysis MG and it is so true, that feeling of being stifled and stuck is just pants

So enterprise it is then - bring it on

I hate to say it but...I told you so! A number of times and about a year ago on this tread (well a previous one of the series).

There always have to be something left for life - then money comes easier. I am having another dilemma - in fact I feel a blog post coming.

Firewalker

Firewalker

Mortgages! MrF and I have it as part of our plan that the mortgage will be gone within five years. However! Someone (a financial advisor) recetly mentioned to me that he meets many people with mortgages that are paid off and not much to live on.

I am not a anti-house owning crusader, I am not! But this has important implications. First, do not put every single spare penny to overpay your mortgage - allow for a bit of life. Second, before going big time for overpaying your mortgage build serious buffer account (£25,000 and over) - only after that start putting it off the mortgage.

And remember that a house is a liability; necessary and acceptable one but still a liability. Tell me about it at the moment! Have been paying property taxes and maintenance fees all week and this is turning out to be very expensive; if the properties here don't sell fast I am going to sell all real estate everywhere and rent! This is it - I'll be done with all that and going for buying gold and storing it under my bed (probably should not have announced this here but I trust you all).

On a more serious note, our plan is to: a) get rid of the negative wealth; b) build serious buffer account and investments; c) pay mortgage off (this will have to be done in large chunks or even in one go).

Firewalker

Firewalker

OK, I am more interested in developing other income streams - in theory one should have a minimum of five income streams and the more of these are 'passive' the better. We currently have four: one of these is not very regular and one is tiny (my royalties). So, the race is on.

A question I saw on a blog which we may have fun with. If you had to raise £300 per month above you current income what would you do?

Firewalker

tellmeitsfriday

A £25000 buffer fund...!!!! You're kidding!

Sorry, but that is the most ridiculous thing I've read all day!

Back in your box TMIF!

Bitsy_Beans

Firewalker wrote: »

A question I saw on a blog which we may have fun with. If you had to raise £300 per month above you current income what would you do?

Firewalker

Bar getting second job......no idea. Nope. Nada. Nothing

tellmeitsfriday

How much would I get for a slightly used kidney?

Memory_Girl

Winnie_in_Pooh wrote: »

MG - could you explain a mortgage tree to a newbie?

Its a huge drawing of a tree with 1000 leaves on it - every time I pay off 1/1000 th of the mortgage then I colour in one leaf - easier to visualise amounts in the hundreds than in the thousands IYSWIM.

I have an offset mortgage so I can be building my wealth, paying down my mortgage and building a buffer zone all in the same place.

I do also have a cash ISA set up - but it currently only has £37.65 in it (mind you it has only been open two weeks)

£300 extra per month??

I've got 25 ideas of how -:rotfl: But I better save that for the other side.

I did FW net worth calculation early this morning - how come if my net worth is over 40K I am counting pennies for car repairs???? S'funny ole world.

Calculation:

20K - difference between what I bought house at and value (conservative but I did by a repossession)

£14K - -deposit on house

£7K forgotten pension


S I get what FW says about asset rich and money poor.

MG