Ecoelle's MFW Diary

ecoelle

Ok. So let's hope it's doable:)

As a couple we earn 1600 a month.
We owe 105232 on our mortgage.
We have another 24 years to pay it off.
Hmm.
Well here goes:)

ecoelle

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................ 563
Partners monthly income after tax....... 1100
Benefits................................ 100
Other income............................ 0
Total monthly income.................... 1763

Monthly Expense Details
Mortgage................................ 570
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 75
Electricity............................. 25
Gas..................................... 35
Oil..................................... 0
Water rates............................. 24
Telephone (land line)................... 12
Mobile phone............................ 30
TV Licence.............................. 15
Satellite/Cable TV...................... 12
Internet Services....................... 12
Groceries etc. ......................... 160
Clothing................................ 30
Petrol/diesel........................... 20
Road tax................................ 10
Car Insurance........................... 35
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 24
Buildings insurance..................... 18
Contents insurance...................... 0
Life assurance ......................... 16
Other insurance......................... 60
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 30
Holiday................................. 30
Emergency fund.......................... 0
Total monthly expenses.................. 1323


Assets
Cash.................................... 8140
House value (Gross)..................... 130000
Shares and bonds........................ 700
Car(s).................................. 1900
Other assets............................ 0
Total Assets............................ 140740


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 105232...(570)......3.99
Total secured & HP debts...... 105232....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 1,763
Expenses (including HP & secured debts). 1,323
Available for debt repayments........... 440
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 440

Personal Balance Sheet Summary
Total assets (things you own)........... 140,740
Total HP & Secured debt................. -105,232
Total Unsecured debt.................... -0
Net Assets.............................. 35,508

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

ecoelle

So the above SOA shows the basics. On top of this we pay £100 a month into stocks and shares ISA so only actually have £340 per month available to pay off the mortgage as extra. At the moment we are paying an extra £100 but i'm hoping to increase this. I want to be MF by the time we are 50, so we have 17 years and 5 months. Meaning in order to pay it off we definately need to increase what we are paying. My plan is to keep a steady overpayment going and then to put any extra money we earn above the norm into a cash ISA. This way we'll have access to it if needed and then we can use it periodically to pay off lump sums. Not sure if this is the best way to go but don't have the money to be able to pay off small amounts all the time through the years and then not be able to access funds if needed.

We are not well off people, but if there's one thing i've learnt from MSE it's not about how much money you earn but what you do with it. I did a car boot at the weekend and made £15 so this will be going in the MF pot. Little and often i think is the key, all the small things will add up:)

So in my MF pot at the moment is £15 and i will update it as and when we get money we have not earned through our regular job. My plan is that this will include things such as TCB, Quidco, cashback on my current account, cashback from our credit card, car boot earnings, ebay, nearly new sale earnings. If anyone can think of any others then let me know:)

ecoelle

Well i've emailed a friend who sold an item on ebay for me and she should be getting the money to me asap. That's another £27 for the MF pot, also filled in the health insurance claim form for my husbands dental work so that's another £17 that will be coming back into the account, strictly speaking it should go back in the current account, but i think as i had forgotten about it anyway i can happily put it into the MF pot. Right. Off now to set up the DD on the new 123 account so i can start earning cashback asap:)

ecoelle

Oooh, just remembered about washing our uniforms at home.Going to ring up HMRC and see if we can get any money back:)

ecoelle

Well just spoken to HMRC and they have updated my tax code to 816L for the 12/13 tax year. And all i need to do to claim back from when i started there is to write in to them:) also going to get my hubby to do it and we should get some money back:) Anyone know how much you get per year? forgot to ask.

ecoelle

Sorted the DD for the CC, water, gas, electric, mobile and council tax. Need to get hubby to do tv and mobile when he gets home, then all DD i can earn cashback on will be with the new 123 account, plus going to pay for petrol on new 123 CC, and also any supermarket shopping.

abouttimetoo

Hi Ecoelle, welcome to the board :hello:

It's great to see a new diary and I look forward to reading about your progress. From your signature it looks like you've also cleared your debts so well done on that too.

I completely agree with your sentiments that it's not all about how much money you have but how you use it or make it all work for you.

I know from looking in on other boards that some people think the posters on here are either daft or have too much money. This is far from the case, we just recognise that a mortgage is just another debt and you don't have to pay it over the original term. As I always say, most people know if they just pay the minimum payment off their credit card it's going to take an awful long time to clear, and to me, the standard monthly mortgage payment that you must pay is just akin to making the minimum payment off your credit card!

Have you thought about joining some of the challenges on here? I think Miscellany runs the 2012 one. We will most likely be having a three year challenge start again at the end of the year (when the current one finishes) You don't have to clear your mortgage in three years (though plenty do) but it's just another way of staying focussed and getting support from others

Are you signed up to things like Topcashback?

I can see you've quickly sorted out your uniform washing with HMRC, I had been going to direct you to a thread on this on the tax forum on here so if you need any further pointers then I'm sure they can help

Finally, everyone is a friendly bunch on here so don't hesitate to put your thoughts on here as well as any other ideas you just want to bounce around

Good luck with your plans

Regards
ATT

Jock_Tight

Welcome to the MFW board

ecoelle wrote: »

My plan is to keep a steady overpayment going and then to put any extra money we earn above the norm into a cash ISA. This way we'll have access to it if needed and then we can use it periodically to pay off lump sums. Not sure if this is the best way to go but don't have the money to be able to pay off small amounts all the time through the years and then not be able to access funds if needed.

Ideally you should look to build up an easy access 6 month emergency fund, just make sure you are getting the best possible rates for your ISA.

Then I would throw everything else at the mortgage as this will make the biggest difference in the long term with your mortgage rate being 3.99%

For some extra 'free' cash have a look at the Halifax / Bank of Scotland reward current accounts. You can have 3 (1 in each name, plus 1 joint). Each account gives you a £5 reward when you pass in £1000 a month, just move £1000 through the accounts and out i.e £1000 -> R1 -> R2 -> R3 - to where it came from. This can be done online in minutes, the money does not need to stay in the account. This would give you £15 a month for free. (ps lots of MSE members do this!)

Regards,
Jock

ecoelle

Is there a limit on how many bank accounts any one person can have?

abouttimetoo

Ecoelle

I'm not sure whether your question is a general one or specifically related to JockTight's post about reward account?

If it's a general question, then no, there are no limits about how many accounts people can have and no limits as to how many banks/buildings societies etc that they have them open with. The caveat here of course is that some institutions will have opening criteria that you will need to meet

If you mean about the Halifax reward accounts then I believe they allow you can have three in total as long as that is made up of sole ones each for you and your partner and a joint one