MFW: Next step towards total freedom!

powerspowers

Thanks for the update Caeler!! 

How happy are you at work? Is there anything you’d like to do that you’ve been unable to because of having to pay the mortgage each month? Just a thought, how about reimagining being mortgage free as a stepping stone to something else rather than a goal in its own right… 

jennystarpepper

I think it's amazing for anyone to pay off their mortgage early, I think you deserve a holiday.

Our situation is a little like yours, get rid of the mortgage and save every penny for retirement and that 'gap' waiting for SP to kick in. We try to increase pensions when we can, even if it is just 1%.  Our premium bonds are being topped up and buying a few shares when I think the price is good.  

I hope you keep updating, even if it's just to say your holiday is booked.

caeler

Thanks for all the responses @badmemory @killerpeaty @powerspowers @jennystarpepper

Thank you for the suggestion about the groupon activities section, I’ll check out the alpacas! I think pension is a good place to focus although I’m probably 20 years away from full retirement but hopefully I can slow down at some point.  Or maybe try something new like you suggest, I do enjoy my work but I haven’t enjoyed the recent stress and pressure.  I’m going to take some time to assess my options and I’ll keep updating periodically!

eat_that_frog

Wow @caeler I can't believe it's been a year since you became mortgage free. So nice to hear from you. I remember your post letting us know you'd made the final payment, unbelievable that was a year ago! You've done so well to save as much as you have in a year. That's quite a monthly savings % of incomings to have! Read your post with interest because, although I am still some years away from overpaying, I wonder how I'll feel without an MF goal to strive for. Re: your job, appreciate you're some way off retirement but could you look at going part-time? Could that help?

killerpeaty

I think the aim of going part time is really good. (It's one of mine!) 

I hope you do keep us updated, I always like hearing from you.

caeler

So here I am. 2 years after repaying my mortgage. 

I promised to come back with an update! With the cost of living crisis and mortgage rates now increasing, I’m so grateful to my perseverance and frugality in the months leading up to the redemption that’s for sure. 

I’ve focused on strengthening my financial position. I’ve increased pension contributions significantly, which has added an extra £20k into my pot. I’ve done this by using my work salary sacrifice scheme. I’m saving 70% of my salary each month and once I’ve hit my savings goal I’ll increase my pension contribution again. I’ve now saved 52% of my original mortgage value which is held in a mix of long term and short term saving access arrangements. 

I’m still working full time. I’m managing the stress and strain of the job better now. My aim is to keep going like this for a few more years then properly review what I want and need. I feel I have a huge opportunity to save some money and add to my pension. You never know how long an opportunity will last so I want to take full advantage. 

I’m not very good at spending money but I’ve enjoyed some home improvements and a holiday. And I have holiday plans for 2023 too. I want for nothing which I feel I’m already starting to take for granted, forgetting the pain and struggles of making ends meet. I don’t want to lose touch with reality. I do however continue to live modestly so hopefully I’ll find some balance. I did fancy a new TV recently but there is nothing wrong with my 9 year old unit so after 3 weeks of research I decided against it! The 10 year old car needs some work doing so it’s nice to know I’ll be able to afford that bill when it comes in. 

I don’t know what the future holds but I’m happy and financially content. No alpacas yet but I am creating another bucket list of things I’d like to do. 

Thank you for reading! 

eat_that_frog

Wonderful to hear from you @caeler!!!

Firstly, I cannot believe that it has been 2 years since you became mortgage free. I still remember really well reading your post when you became mortgage free and it's crazy that 2 years have passed since!

Your 70% monthly savings are incredible, and building your savings up to 52% of your original mortgage amount in such a short period is really very well done, especially considering inflation/cost of living increases! 

It's really lovely to read that you are happy and financially content. And it sounds like you've found a good balance with your job. That's so important. I really cannot wait to be in that position myself - mortgage paid off and financially content.

Hope you enjoy your new bucket list when you start making your way through it!

killerpeaty

I'm so impressed with you, I hope to emulate your success.

Most importantly, I'm glad you are managing the stress well, hope you continue and be happy 

caeler

I managed to miss year 3’s update, not sure why but here I am for year 4! 

I’ve since saved 100% of the original mortgage loan since I repaid 4 years ago. (104.71% to be specific!) That’s feeling pretty unbelievable right now. Seemed like an improbable goal given how long it took to pay off as a loan! (£169,000).  Mind blowing actually.  

In exciting news, I just had the result of my council tax challenge and I’ve been rebanded down and given a back dated refund to 2012! So pleased I followed Martin Lewis’s guideline. I thought I didn’t have a chance! 

I still live pretty modestly so most of my salary is saved, still around 70%. 

Still trying to replace my tv but no luck yet. I actually brought a new one last year but it arrived broken. So I thought that was a sign, got a refund and didn’t try to order again! Maybe 2025 is my year?!

I’ve another nice holiday planned this year plus the idea for a city break is being formed. 

Car is getting on a bit. I flirted with the idea of an electric company car but couldn’t make up my mind. I really like my car, suits me perfectly. So I’ll stay as I am for a while longer. 

For me it’s now all about FIRE. How much will I need for a “comfortable retirement”? I will definitely be in a position to retire early. I’m targeting pension contributions for the tax relief as well as cash. I made a post on the retirement planning side of the MSE forum and received some good advice.  I’m disappointed at the effect Trump has had, let’s hope it starts to recover soon. 

glass_half_full

Hi @caeler, good to see your post. I remember your diary from when I was reaching paying off my mortgage. Congratulations on your saving rate! One site I can recommend if you are interested in FIRE is guiide.co.uk (two i's). It's free and is helpful in modelling various pensions and savings towards a retirement income.