10 months in and 90 left to go ... the reality is starting to kick in :)

elantan

Hi all sorry I have been missing had a visit from a certain sheep and his flock ... Was really good to meet them

Yep it starting to get to the concerning stage with Z now ... I miss him and his wisdom and wit ... Hope he comes back soon

Have sold another 3 books so that is slowly building up to be a nice wee earner I also have 2 small bids on eBay for one item and one watcher on another

Went to the theatre tonight and saw the rocky horror picture show ... Was fantastic, one of the best shows I have seen in a long long time

elantan

Have been working night shift tonight and playing with my online calculators ... I can see why some people enjoy playing with that very expensive loan companies " sliders"

It's great to figure out how much faster I can be debt free if I use our extra allowance that we will get from the tax man ... This is weird as well cause I worked it out that I will be £80 something extra per month in April and so will mr El ... That seems almost too good to be true tbh ... But if the tax code goes from 8105 to 9205 that means I will earn an extra £1100 per year before I pay tax and dividing that by 12 came to £91.67 ( I took it down to £80 odd due to the national insurance ... But not sure if that's right)

If this is the case, then I will be having the biggest pay rise I think I've ever had ( ok it's not from my company we've had a pay freeze for years... But it's still extra money in my pocket)

Does anyone know if I'm anywhere near right or miles off ?

Anyway between that and the fact I no longer pay for the sofas and will have another couple if things coming off I figured with my way i will be £180 a month better off then there isn't el's £80 so we would be £260 a month better off between us ... Now if this IS the case then I plan on paying £100 extra to the new mortgage ( I still need to share my plans for the new set up ... Will try and do tht shortly) £75 into savings and £85 towards the heating system

I'm quite excited to see if this is going to be the situation tbh

sheilaluc

Sorry to disappoint you. The £1100 extra tax allowance means that you wont't pay 20p in the pound tax on that so now only worth £220 , now divide that by 12 and about £18

elantan

Ok plans for the new set up

We will effectively have 2 mortgages mortgage one ( our current mortgage) is at 4.69% it is also the higher mortgage ... Mortgage two is at 3.29%

Now we are allowed to over pay each one by up to £500 per month so potentially £1,000 a month extra payments ( the stuff of dreams for us)

We plan on paying £500 to the first mortgage as that is the higher rate and Tilly tidies ,sugar shuffles, half the money for things sold, over time , extra tax relief ... Basically anything else we can chuck at it we will chick at the second mortgage, this is of course unless a higher rate savings account suddenly appears ( the likelihood is almost zilch)

We will still keep up with our savings every month as the idea behind this 100 month challenge is to turn the money situation around not just to be debt free ... We want to be debt free and have savings

What would be fantastic to see for us at the end of the challenge would be no debt and £10,000 in savings , just now that sea to be pie in the sky ... But you never know

We currently pay £50 a month for mortgage insurance, we currently plan on offsetting mortgage one with the savings ( whilst paying it down as well) so that when mortgage one is cost neutral we will cancel the insurance and pay the £50 to mortgage two

A very very basic work out of this had me looking at roughly April 2015 but as I say it was very rough when we get closer to the time I will work it out more precise

I still havn't got a debt free date ( apart from the 100 month one) and I havn't thought about challenges to bring it forward I think I will keep that for when I feel it's a long long road and just nowi feel quite confident

elantan

sheilaluc wrote: »

Sorry to disappoint you. The £1100 extra tax allowance means that you wont't pay 20p in the pound tax on that so now only worth £220 , now divide that by 12 and about £18

Darn ... Thanks for letting me know though

I think I need to learn how to work it all out right ... I honestly thought it meant that I needed to earn £1,100 more per year before I pay tax ... Like just now isn't it £8105 a year divided by 12 meaning I don't pay tax on the first £675.41 that i earn per month ? and the new code means I don't pay tax on the first £767 that I earn per month? then I pay 20% on anything I earn over that ?

elantan

One thing I did notice when I was playing with the calculators was because the second mortgage isn't so big and the interest rate aint too high, us paying extra to it every month doesn't really save us a lot of interest to be honest ... But it still saves us more than we would get in interest for savings so it is worth our while to carry it on ... It just would be that bit sweeter if we saved more in interest payments to the bank ... But I think that's just the part in me that likes to know the bankers arnt getting their hands on my money lol

elantan

Ohhh meant to also say ... Found out last night that on Wednesday in our unit we will be recieving a visit from our boss our bosses boss and their boss also ... Thi has never happened in the whole time I have worked here ( I've been here 8 years now) so it is a bit disconcerting to say the least ... I am working whilst they are here ... I hope they arnt coming specifically to see me and I hope it's not to talk about redundancy ... I spose I will find out on Wednesday

gallygirl

elantan wrote: »

Darn ... Thanks for letting me know though

I think I need to learn how to work it all out right ... I honestly thought it meant that I needed to earn £1,100 more per year before I pay tax ... Like just now isn't it £8105 a year divided by 12 meaning I don't pay tax on the first £675.41 that i earn per month ? and the new code means I don't pay tax on the first £767 that I earn per month? then I pay 20% on anything I earn over that ?

Yes, you do need to earn another £1,100 before you pay tax (assuming tax codes quoted are right!). But you would only have been paying tax at 20% on that £1,100, hence the £220 saving. Soz

Why are you going to OP on mortgage 2 rather than mortgage 1 if 1 is at a higher rate (and you want to save more in interest payments ). Am guessing it's psychological? Can't you psych yourself up to murder no. 1 first?

Rats to bosses - maybe will be ok xx

elantan

Sorry GG I've maybe written it wrong ... We plan on overpaying the first mortgage by £500 per month which Is the max tht we can pay we then plan on putting the Tilly Tidies etc onto the second mortgage getting as close to the £500 max that we can pay on that

Right figured out the tax bit now ... Duh I'm a but slowl lol

elantan

I'm blaming night shift brain