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

Lynn11

Congrats on your new job and as long as your family are happy with your work/home life balance, forget what other people say. it is easier said than done sometimes but you are doing what is best for your family. I went part-time when daughter born, then made redundant late last year but got another part-time job which ties in with daughters nursery days but the hours and pay is reduced, as its in a school and you start at the bottom of the pay scale. Luckily hubbie is earning a good wage at the moment, but who knows what will happen this year as he works in the housing industry. Good luck in clearing your mortgage

Dithering_Dad

I had a bit of a spending spree over the last couple of weeks. I guess it's a consequence of having saved up so much over the last 9 months where I was so concerned about the credit crunch that I salted away as much money as possible. I've spent heavily on my mountain bike and on our house (some building work, new boiler, other items that allow us to enjoy our home even more).

I have been asked by my current client to extend for a further 3 months. It was a real quandary because they would pay almost as much in the that 3 month period as I will gain in a year's salary at my permie job. In the end, I stuck to my guns and decided to stick with the permie plan, in terms of pure money I think I'm mad, but in lifestyle choice I am still convinced I'm doing the right thing. :undecided

I'm still dedicated to the MFiT challenge, despite my recent speding, and will be hoping to drop below 100k once all the outstanding money has been received by my company account and I have closed the company down (probably around June time). I will put about £20k into my offset account to make sure that I can cover any surprise tax bills, but once my tax affairs have been settled, I'll also dump whatever is left of this £20k onto the mortgage (probably at the end of the MFi3 challenge).

The new job has a final salary pension and this has really calmed my fears in that area. I will be able to concentrate more on Mrs Dither's personal pension and on reducing our mortgage even further.

I' finally starting to feel a lot freer financially than I have in a long time, certainly since having children. Our mortgage amount is moving into a comfort zone, our pensions are reaching a point where I feel that we should have a comfortable retirement, our house is pretty much how we wanted it with all the major work done (apart from a new bathroom, but that's not a huge priority) and our emergency savings are at a good level. Not bad considering we're in one of the worst recessions in decades.

StuartGMC

Dithering_Dad wrote: »

I have been asked by my current client to extend for a further 3 months. It was a real quandary because they would pay almost as much in the that 3 month period as I will gain in a year's salary at my permie job. In the end, I stuck to my guns and decided to stick with the permie plan, in terms of pure money I think I'm mad, but in lifestyle choice I am still convinced I'm doing the right thing. :undecided

That all sounds very good and reasonable in planning for the future.

The new job has a final salary pension and this has really calmed my fears in that area. I will be able to concentrate more on Mrs Dither's personal pension and on reducing our mortgage even further.

To get final salary pension now on entering a new job is excellent, well done!

I' finally starting to feel a lot freer financially than I have in a long time, certainly since having children. Our mortgage amount is moving into a comfort zone, our pensions are reaching a point where I feel that we should have a comfortable retirement, our house is pretty much how we wanted it with all the major work done (apart from a new bathroom, but that's not a huge priority) and our emergency savings are at a good level. Not bad considering we're in one of the worst recessions in decades.

Ticking all the boxes, congratulations on the progress.

setmefree2

great to be so much in demand, especially during a recession. However, that must have been a really hard choice:o

on all your progress :T

Dithering_Dad

We're finding it a bit of a struggle financially at the moment, I have quite a lot of money in my company account but I don't want to take any of it out now that we're in the new tax year, so we're just scratching along until I get paid in my new permie job. Once all of my invoices are paid, I can close down my company and take the profits as a Capital Gain. This means that £9600 of my profits will be tax free and the remainder will be taxed at just 10% due to Entrepeneur's Relief.

If I take any money out now, I'll pay 40% tax and will also have to self-assess and have a tax bill for yet another tax year. So it's well worth struggling along for a bit. I reckon my company will be closed in August (I'm still doing bits for my client) and will then be able to make quite a significant overpayment on my mortgage.

In the meantime I have a £5k income tax bill to pay and will have to save this up from my salary. Gulp!

happilass

Hi DD,
I have not posted on your thread before but often read it and I just wanted to say that you are an inspiration, really. I would not be in the fortunate position that I am at present, ie being able to sleep at night if it wasn't for you, and people like LJ an SMF. You maybe don't realise just how important your threads are to others and just what a difference they make to us. Thanks so much and good luck with the objective, I'll be with you all the way.
Happi

ps I think angelavdavis is magnificent !!!

gallygirl

Dithering_Dad wrote: »

In the meantime I have a £5k income tax bill to pay and will have to save this up from my salary. Gulp!

Welcome to our world DD! Seriously, I hope you can muddle through till you can close business down - I would not be able to sleep at night if I had to +30% tax for the sake of a few months

If all else fails maybe you should look for a dodgy part time job to tide you over

Dithering_Dad

happilass wrote: »

Hi DD,
I have not posted on your thread before but often read it and I just wanted to say that you are an inspiration, really. I would not be in the fortunate position that I am at present, ie being able to sleep at night if it wasn't for you, and people like LJ an SMF. You maybe don't realise just how important your threads are to others and just what a difference they make to us. Thanks so much and good luck with the objective, I'll be with you all the way.
Happi

ps I think angelavdavis is magnificent !!!

Thanks for your really nice post. I'm not sure how inspirational it is but I'm glad that there are some people still reading my blog .

Now you've posted, I hope you return more often

Dithering_Dad

gallygirl wrote: »

Welcome to our world DD! Seriously, I hope you can muddle through till you can close business down - I would not be able to sleep at night if I had to +30% tax for the sake of a few months

If all else fails maybe you should look for a dodgy part time job to tide you over

Worst case scenario is that I will have to 'borrow' back some of my overpayments for a month or so. I'd really not want to do that, so will be saving like mad to try and get that tax money saved up (incidently the tax money is saved up, it's just in my company account and I'll pay even more tax if I try to get it out ).

gallygirl

I think the dodgy part time job would be a better option DD