MFW beginner! Will be MF by 35!

Hi there I hope you don't mind a lurker coming out of the shadows to submit a diary. I'm a beginner to all this MFW malarki, but have worked out that if I shift a few things around (including the husband!) I should be MF by December 2019! :j In the Smee household, theres me, Mr Smee and Mini Smee, all of us enjoy living life with luxuries, so I am really going to relish this challenge!

We moved into our house in June, having previously owned but spent the last 5 years renting. All through the buying process all I could think of was how quick we could pay this off, looking how much we save compared to renting. I want to get the house in order first, and we've had the builders in since we moved in, but I'm confident we'll be in a position to start overpayments by Christmas.

We have a current balance on the mortgage of £77, 426.45 at 4.5% fixed for 3 years, with provision to O/P 10% each year. The interest is however worked out annually rather than daily (and not yet added to the balance), so I am struggling to work out the effect overpayments will have. Does anyone have a link to a spreadsheet that takes that into consideration?

I've started to look at getting things moving, I've applied for a first direct account, as I'm getting really annoyed with my current bank and the level of customer service I've been receiving, and I've discovered the 8% savings account so hopefully I can start getting £300.00 per month stashed away there, and overpay any extra. I'm hoping filling in a diary will help keep me on track!
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Replies

  • edited 25 July 2012 at 2:50PM
    its_smeeits_smee Forumite
    41 Posts
    edited 25 July 2012 at 2:50PM
    I've deleted my original SOA, as that's the past the future is below and I'm determined to stick to it!

    Goals for this year
    1) Up payment to in laws on loan to 1000.00 per month to pay off quicker & check how much we still owe them!
    2) Up savings pot to 3 months income
    3) Menu plans to reduce unplanned supermarket spends
    4) Continue saving £80 per month for the dreaded C word (plus birthday and wedding gifts!)
    5) convince hubby he does not need Tivo and Sky Plus (probably mission impossible!)
    6) Reduce clothing spend to just mini smee before xmas, as we have plenty of nice fitting clothes (too many!)
  • edited 25 July 2012 at 2:15PM
    its_smeeits_smee Forumite
    41 Posts
    edited 25 July 2012 at 2:15PM
    SOA goal


    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.................... 2
    Monthly Income Details
    Monthly income after tax................ 1383
    Partners monthly income after tax....... 2100
    Benefits................................ 81.2
    Other income............................ 200
    Total monthly income.................... 3764.2
    Monthly Expense Details
    Mortgage................................ 440
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 107
    Electricity............................. 44
    Gas..................................... 44
    Oil..................................... 0
    Water rates............................. 23.79
    Telephone (land line)................... 59.86 Virgin media services
    Mobile phone............................ 65
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 49.25 sky tv (no changing hubbies mind on tv packages)
    Internet Services....................... 0
    Groceries etc. ......................... 260.00
    Clothing................................ 40.00 Petrol/diesel........................... 287.16
    Road tax................................ 50
    Car Insurance........................... 100
    Car maintenance (including MOT)......... 20
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 210
    Other child related expenses............ 225
    Medical (prescriptions, dentist etc).... 40
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 26.48
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 9.9
    Presents (birthday, christmas etc)...... 80
    Haircuts................................ 10
    Entertainment........................... 150
    Holiday................................. 75
    Emergency fund.......................... 50
    Total monthly expenses.................. 2715.39

    Assets
    Cash.................................... 2000
    House value (Gross)..................... 100000
    Shares and bonds........................ 2000
    Car(s).................................. 10000
    Other assets............................ 2000
    Total Assets............................ 116000

    Secured & HP Debts
    Description....................Debt......Monthly...APR
    Mortgage...................... 78300....(440)......4.49
    Total secured & HP debts...... 78300.....-.........-
    Unsecured Debts
    Description....................Debt......Monthly...APR
    Total unsecured debts..........35400.....912.6.....- Not sure of the exact balance of this (hang head in shame, probably nearer to 30000)

    Monthly Budget Summary
    Total monthly income.................... 3,764.2
    Expenses (including HP & secured debts). 2,478.56
    Available for debt repayments........... 1,285.64
    Monthly UNsecured debt repayments....... 912.6
    Amount left after debt repayments....... 373.04
    Personal Balance Sheet Summary
    Total assets (things you own)........... 116,000
    Total HP & Secured debt................. -78,300
    Total Unsecured debt.................... -35,400
    Net Assets.............................. 2,300
    Created using the SOA calculator at www.makesenseofcards.com.
    Reproduced on Moneysavingexpert with permission, using IE browser.
  • DawnWDawnW Forumite
    7.2K Posts
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Forumite
    Hello and welcome to the MFW board :wave:

    You seem to be very organised, so I am sure you will make fast progress towards your goal :)
  • sweetdaisysweetdaisy Forumite
    1.2K Posts
    Tenth Anniversary 1,000 Posts Combo Breaker
    Forumite
    Good luck on your journey to become Mortgage Free :).

    I am hoping to be mortgage free by 2022 (when I'll be 42 years old) - would love to be mortgage free by 35 years old, though there is no way that's going to happen unless I win the lottery :rotfl:.
  • R_P_WR_P_W Forumite
    1.5K Posts
    Tenth Anniversary 1,000 Posts Combo Breaker
    Forumite
    Congratulations on your desire to be mortgage free!

    Before you start making any mortgage overpayments though I would definately recommend building up more like 6 months worth of income in savings if you can. Some people are ok with 2-3, but you just have to think how easy would it be for you or your partner to walk into another job at same level of income (like most of us probably not easy).

    Regarding TV packages - at the moment I am taking a break from Sky and this is helping us with an addiitonal 60 quid a month, but probably go back on again soon as Sky are offering me ever improving deals to go back. However, your partner having both Sky and Virgin media seems crazy to me for how much that costs each month - what does he get from Virgin he cant get from sky (or vice versa)?

    Your SOA didnt have anything in there for life assurance - this is something i would strongly recommend especially as you have children. It doesnt have to cost a lot each month either.

    Your unsecured debt of ~£35k - is that the loan from parents? I assume their is no interest being paid on that? Even so, personally I would be looking to pay that back as quickly as I could.
  • its_smeeits_smee Forumite
    41 Posts
    R_P_W wrote: »
    Congratulations on your desire to be mortgage free!

    Before you start making any mortgage overpayments though I would definately recommend building up more like 6 months worth of income in savings if you can. Some people are ok with 2-3, but you just have to think how easy would it be for you or your partner to walk into another job at same level of income (like most of us probably not easy).

    Regarding TV packages - at the moment I am taking a break from Sky and this is helping us with an addiitonal 60 quid a month, but probably go back on again soon as Sky are offering me ever improving deals to go back. However, your partner having both Sky and Virgin media seems crazy to me for how much that costs each month - what does he get from Virgin he cant get from sky (or vice versa)?

    Your SOA didnt have anything in there for life assurance - this is something i would strongly recommend especially as you have children. It doesnt have to cost a lot each month either.

    Your unsecured debt of ~£35k - is that the loan from parents? I assume their is no interest being paid on that? Even so, personally I would be looking to pay that back as quickly as I could.

    Hi all thanks for your responses and kind welcomes!!

    re the sky/virgin media thing, I don't get it either (something to do with SKy not having the right anytime package and virgin media not having the right 3d channels - he's a long way from a lightbulb moment I fear!!) but I'm working on him!

    I'd completely forgotten life insurance and redundancy insurance from my SOA, I do have that so need to add it in, thanks! Although we are in the fortunate position of husband having a job in the public sector which is in high demand, so it makes us feel a little more secure (I know its not a job for life like it once was but its as close as you can get.

    Have double checked the figure on the loan from parents and not as bad (although pretty bad) as I'd feared its 29k, mainly to do with hubbys divorce from wife no 1. hubby has paid off over 30k himself in the last 3 years of other debts so we will get there and I'm not too concerned, I've set a target of January 2015 to pay them this back by which is easily do-able with my bonuses etc. And they are such lovely people that we could pay them 2p a month from now until eternity they'd be happy with that, just I would like it paid back asap for my peace of mind.

    So onwards and upwards as they say! Today to be MF I will mostly be eating MIL's homecooked leftovers for my lunch and charging my mobile at work! One step at a time!
  • its_smeeits_smee Forumite
    41 Posts
    Not the best of starts this weekend! Found some curtains that I had been looking for for ages to match my dining room set so that was a bob or two spent... However starting again yesterday, NSD yesterday, and aiming for NSDs until Saturday when I'm out for a friends birthday party, starting in the local pub (where they will give me free squash ;-) ) then out for a meal so hoping it won't be too much spent. Increased SO for payment to in laws for the loan, going to try that for a couple of months to check we can definitely afford it (and I've filled in the SOA correctly!)

    So far this week I've earnt 2.50 doing surveys, due to the nature of my job will struggle to do many other money earning schemes, but have a large stash in the attic for ebaying once I can convince Mr Smee to upload, as I don't have an account!
  • Ok since I wrote this post I've been in hiding. I've learnt the benefits of having a large savings pot thats for sure! So far this month I've had a huge repair bill on my car and my roof. As a result I've had to put some things on a 0% cc for a few months. This has completely changed my outlook. My number one focus is paying that off, £3500 (eek!!) then its building up savings pot to avoid this happening again, then I'll restart overpayments to the inlaws.

    Anyway that's enough of the depressing stuff, what've I done this month. Well the above has convinced DH how we need to knuckle down, and I've made progress, he's binned the Sky subscription whoopeee! Also meal planning (thanks to the wonderful folk on old style for ideas!) and using up things we already have in, I've managed to do a monthly shop for £85.00, topping up weekly with bread and milk, approx £5.00 so theres my biggest and best saving. DH and I have also swapped cars to maximise the fuel efficiency of the cars on our respective commutes. I've so far earned around £20.00 this month on surveys, and yesterday added a huge pile of junk that had been lying around to fleebay. (If all sells should make around £200.00 minimum). Our weekly trips out (which DH wasn't originally willing to sacrifice) have switched from the cinema to the park, and although we get free cinema tickets, the cost of taking kids to the cinema with drinks and popcorn etc is unbelievable, we've already noticed a massive improvement there. Our entertainment budget is now £22.00 per month, for our weekend gym memberships. This includes free entry to the pool for DSS and DSD plus gym & pool entry for hubby and I, these are well used and keep the kids entertained without too much additional spend, which mean a massive saving each month (although already starting to miss our meals out each week - its for the greater good!). I've also curbed my addiction to buying clothes for the toddler.

    Onwards and upwards...
  • edited 25 September 2012 at 3:48PM
    its_smeeits_smee Forumite
    41 Posts
    edited 25 September 2012 at 3:48PM
    Things have been going well this week :j although best not speak too soon! Hubby and I sat down earlier in the week and have worked out a new budget which we can stick to (more realistic than our old one!). The fleebay stuff all sold too so not only do I have a large space in my shed but a nice addition to my wallet, which went straight towards the credit card, plus £28.75 I've made in surveys. I've also put my car up for sale :cry: it's my baby and I really didn't want to, but it will pay off a massive chunk of what we owe the inlaws, and DH gets a company car with his job which we had been avoiding due to the extra tax costs but really sticking our head in the sand as we'd worked out we would be better off as no service/mot/insurance costs which were all high on mine due to the type of car, instead a nice eco drive is winging its way to us. I will then keep DHs current car as it costs much less to run (and we wouldn't get much back for it if we sold)

    So all in all as it stands MFW probably isn't the best place for me as I'm more of a DFW but I'll stay here if that's ok as its the long term goal! And still on track for 35 at the moment!

    Current debt to parents- £28,300
    Credit card - £3300
    Mortgage - TBC Mortgage hasn't been updated on line since July - note to self must phone and check everythings ok!!!

    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.................... 2
    Monthly Income Details
    Monthly income after tax................ 1383
    Partners monthly income after tax....... 2400
    Benefits................................ 81.2
    Other income............................ 200
    Total monthly income.................... 4064.2
    Monthly Expense Details
    Mortgage................................ 440
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 107
    Electricity............................. 44
    Gas..................................... 44
    Oil..................................... 0
    Water rates............................. 23.79
    Telephone (land line)..................28.95 Virgin media services
    Mobile phone............................ 62
    TV Licence.............................. 12.12
    Satellite/Cable TV......................0
    Internet Services....................... 0
    Groceries etc. ......................... 125.00
    Clothing................................ 20.00
    Petrol/diesel........................... 287.16 (no change here - hubbies job)
    Road tax................................ 50
    Car Insurance........................... 100
    Car maintenance (including MOT)......... 20
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 210
    Other child related expenses............ 225
    Medical (prescriptions, dentist etc).... 40
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 26.48
    Contents insurance...................... 0
    Life assurance ......................... 25.02
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 80
    Haircuts................................ 10
    Entertainment........................... 22
    Holiday................................. 75
    Emergency fund.......................... 50
    Total monthly expenses.................. 1782.52
    Assets
    Cash.................................... 2000
    House value (Gross)..................... 100000
    Shares and bonds........................ 2000
    Car(s).................................. 10000
    Other assets............................ 2000
    Total Assets............................ 116000

    Secured & HP Debts
    Description....................Debt......Monthly.. .APR
    Mortgage...................... 78300....(440)......4.49
    Total secured & HP debts...... 78300.....-.........-
    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Total unsecured debts.........31600.....2000.....0%
    (1000.00 to parents 1000 to credit card)

    Monthly Budget Summary
    Total monthly income.................... 4064.2
    Expenses (including HP & secured debts). 1782.52
    Available for debt repayments........... 2281.68
    Monthly UNsecured debt repayments....... 2000.00
    Amount left after debt repayments....... 153.68
    Personal Balance Sheet Summary
    Total assets (things you own)........... 116,000
    Total HP & Secured debt................. -78,300
    Total Unsecured debt.................... -35,400
    Net Assets.............................. 2,300
  • It's payday and I'm excited, not because of the cash coming in, but the cash going out and what it's paying off, there's nothing more exciting to me than seeing the balance go down! I'm already counting down to the next payday!!:rotfl:
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