Quest To Pay Off My 150K Mortgage in 3 Yrs!

Dithering_Dad

Latest Update...

After 2 years of contracting and being away from home all the time, I have decided that I've had enough and I've accepted a permie job close to where I live.

I've been up from 6am, doing my books and closing off my Company Yr 2 and opening my Company Yr 3 folders. I really won't miss all this book keeping when I'm a PAYE slave again.

My current contract runs until the end of March and then that's me. The new job starts straight after. I would have liked a bit of time off, but my new employer have been good enough to wait out my contract, so I didn't want to push it.

Not sure where this leaves my MFi3 quest because I won't have as much disposible income, though I will be on £10k more than the job I had prior to contracting and I have reduced my outgoings quite significantly since the start of my MFi3 quest.

The good news is that my current contract is paying £4k per week and I have zero expenses (I'm working from home), so I'll be able to salt as much money away as possible over the next 2 months. I found out from my accountant that if I close down my company I will be able to receive £9k completely tax free (capital gain), so that should help with my mortgage balance.

It feels like I'm making the right decision. I always wanted to complete at least 3 years contracting, but my last stint away in London for 9 months was really hard and I've decided that I need a better work/life balance.

The new plan is to leave as much cash in my company as possible so that I can take it out as tax efficiently as possible, then I will put a chunk (£10k) into my offset account for rainy days and use the rest to buy a new car (Mini Cooper S, methinks).

I'll then increase my regular monthly mortgage to a comfortable level within my new income and leaave it alone to pay itself off.

Normal life, here I come

gallygirl

:T well done on your decision DD. You've worked v v hard whilst being s/e - the last contract has been fabulous money and much easier than previous jobs but you've put in the hours and had a lot of time away from home.

Why did you initially decide on 3 years? Was it with a particular financial goal in mind - I wouldn't be surprised if you've accomplished in 2 years what you set out to accomplish in 3 :beer:.

Just don't come moaning to us when the family are driving you up the wall and you're longing for a nice quiet hotel room

Dithering_Dad

gallygirl wrote: »

:T well done on your decision DD. You've worked v v hard whilst being s/e - the last contract has been fabulous money and much easier than previous jobs but you've put in the hours and had a lot of time away from home.

Why did you initially decide on 3 years? Was it with a particular financial goal in mind - I wouldn't be surprised if you've accomplished in 2 years what you set out to accomplish in 3 :beer:.

Just don't come moaning to us when the family are driving you up the wall and you're longing for a nice quiet hotel room

Thanks GG. I initially decided on 3 years because that was the length of my discounted mortgage arrangement. I based the Mortgage Free in 3 and my intended contracting period on it.

I was hoping to be mortgage free by the end of the three years, but a combination of my wife giving up her job to look after our little one, contributing more into our pension schemes, carrying out work on the house (new patio, new office, etc.) and having a couple of nice holidays a year put paid to all that. I've no regrets though, I had no intention of living like a monk in order to pay off my mortgage and feel that my time away from my family was penance enough.

If, by the end of the mfi3 challenge, we have renovated our house, put £10k into our offset savings and paid our mortage down by £50k, I'll be absolutely delighted.

TallGirl

Well done DD sound like you have made the right choice. Work life balance is important and you have done so well being self employed. Just think if you had never done it do you think you would now be started a new job in March or would you still be stuck at the old one.

Keep going

uzubairu

Well done.

You've made the right balanced decision for you and your family and that is most important.
Especially the Mini Cooper S (I love my Mini Cooper)

setmefree2

with the new job. It's nice to have the security of a permie job in a recession - you can always go contracting again in the up turn.....now when will that be:whistle:

alflavor

Well done, inspiring stuff.

We've just decided to start overpaying our mortgage this week!

Dithering_Dad

alflavor wrote: »

Well done, inspiring stuff.

We've just decided to start overpaying our mortgage this week!

Good luck with that!

setmefree2

Dithering_Dad wrote: »

Good luck with that!

gallygirl

setmefree2 wrote: »

:T What they said :T