Onwards to freedom!

SuperSecretSquirrel

I think I've settled on a plan of action regards pension. It's going to make the aim of mortgage neutral by the end of next year very difficult/impossible, but we have enough cash saved for now and the tax relief and potential for growth is too good to miss, not to mention my current contributions are far too low. From April I'm going to increase my contribution from 3% to 20%. If next year's freelance earnings were to match this year, that would see me back down in the 20% tax bracket, which is good. If I have a better year, I may well end up in the higher rate bracket again, and I can live with that. If I have a worse year, which is exactly what I'm expecting, I might have to reduce the pension contributions a little and rein in the savings to make sure we have enough to cover expenses, especially during maternity.

Until now all my freelance earnings have been split between savings (enough to pay the tax bill with a little extra left over) and mortgage OPs. The increased pension contributions, maternity pay, and increased costs mean that will no longer be the case, freelance earnings will need to cover tax bill, make up the shortfall between salary and expenses, and only then if there's any left over will there be savings and OP's.

It's a little disappointing to be slowing down on the mortgage neutral target, but it makes the most sense for us when looking at the bigger picture. Focusing on the positives, we've made a big dent in the mortgage balance, halved the term, and I'm still hoping to achieve the 10% annual overpayments, the only real difference is I'll be saving into my pension and mortgage not a savings account and mortgage.

February and March I'll still be OPing as much as possible, beyond that, big changes. I just hope I don't end up regretting it and that I can get at my pension when I hit 55!

SuperSecretSquirrel

A juicy £499.99 OP'd today Balance is now £60,439.57

Mini-target of balance below £60k by April is in the bag, the standard monthly payment for March will take care of that :j

Just going to keep OPing what I can between now and then. After that I'm expecting a little chaos

Lois_E

You're doing brilliantly, SSS. I just dropped in to read your diary, having admired your post on the "Why overpay?" thread - you said what I think but much more clearly than I could have said it. :T


When is your baby due? When do you plan to start your mat leave? It's all very exciting in your life, isn't it?

edinburgher

When do you plan to start your mat leave?

I thought SSS was a guy?

Lois_E

edinburgher wrote: »

I thought SSS was a guy?

Maybe he is! I think I was subconsciously assuming she was female because Secret Saving Squirrel is female, but that doesn't mean anything. Looking back through the thread, I can't find anything anywhere to say for definite one way or the other, or whether it's SSS herself or his OH who's going on mat leave - OH doesn't even seem to be referred to by any pronouns that might give a hint.

So, I'll rephrase the question. SSS, when is the baby due, and when does mat leave start?

Caeraugirl

Lois_E wrote: »

You're doing brilliantly, SSS. I just dropped in to read your diary, having admired your post on the "Why overpay?" thread - you said what I think but much more clearly than I could have said it. :T

And I second that - Lois_E you've just said what I would have said about what SSS said on the "Why overpay?" thread......:rotfl:

SuperSecretSquirrel

New visitors! Welcome, and thanks for posting

I've managed to avoid sharing much of anything personal so far (I don't want people from real life land to guess who I am) but it's not too much to share the fact that SuperSecretSquirrel is indeed male! OH is due to start maternity leave toward the end of March, and baby is due early April, not long to go now! :eek:

Lois_E

SuperSecretSquirrel wrote: »

New visitors! Welcome, and thanks for posting

I've managed to avoid sharing much of anything personal so far (I don't want people from real life land to guess who I am) but it's not too much to share the fact that SuperSecretSquirrel is indeed male! OH is due to start maternity leave toward the end of March, and baby is due early April, not long to go now! :eek:

Aha - we know you're male, heterosexual and partnered rather than single - we are narrowing it down and will have your RL identity worked out very soon so that we can put our evil plan into operation. :rotfl:

Sorry - couldn't resist. I'm another one who tries very hard to avoid any identifying details in my posts, but don't mind people knowing I'm female, divorced and got kids.

Anyway, sorry to have got your gender wrong, and congratulations on the bump. I think I was misled by your comment about not having spare time for your freelance stuff because of having better things to do once the baby arrives. Sadly, my experience of my own kids' dad didn't involve that kind of enthusiasm. Well done for being a better dad-to-be than that. :T

Finally, thanks for the nice welcome to your thread. Do drop in and visit mine some time. :wave:

SuperSecretSquirrel

Another £499.99 OP'd today, the mortgage has taken quite a kicking this month

Balance is now £60,009.66, This should put us at an LTV of 50% :j

Lois I'll be reading your diary next I like to read from start to end though, so it'll be quite an undertaking - your diary is massive! :eek:

Lois_E

SuperSecretSquirrel wrote: »

Another £499.99 OP'd today, the mortgage has taken quite a kicking this month

Balance is now £60,009.66, This should put us at an LTV of 50% :j

Lois I'll be reading your diary next I like to read from start to end though, so it'll be quite an undertaking - your diary is massive! :eek:

I'm not sure how much of it will be interesting in retrospect, but all readers always very welcome. I'll see you over there. :wave: