Mortgage Free in Three Yrs

shazzany

Sounds like a great idea to me.

A few years ago I left my marketing job to train as a teacher and have found it much more rewarding. Next step ( as i've posted about b4)is maybe a few years as SAHM .

Paying off your mortgage has given you choices. And if taking redundancy and trying something new will make you and your family loads happier it's got to be the way to go.

sparklymessygirl

Jonesy_Bonesy wrote: »

Hope I am doing the right thing.

Bonesy

Oh Bonesy - this sounds SO RIGHT!

Sparkly

ailuro2

JB - that's why we're all here - not having the commitment of a mortgage, but having the security of a roof over our heads to raise our family in if it all ended tomorrow.

Good for you, you can use the 18 months to do a night course to help you get a foot in the door of whatever new field you choose.

Dithering_Dad

Hi JB,

For what it's worth, I think you're doing the right thing, especially given the quite long lead time before the redundancy occurs - this will really focus your mind on blitzing that mortgage and also perhaps building up your emergency savings (maybe doubling them?). You can also use this time to retrain into whatever new career you're interested in pursuing (or boning up in your current area of expertise).

It's always scary when you do something new, I was shaking in my boots when I handed my notice in to go contracting and it seems to be working out OK. I have a friend who took voluntary redundancy and got a job the following Monday after he was laid off on the Friday. He found out that those who stayed ended up losing their jobs anyway, but on a much reduced redundancy package. If a company is making redundancies then it's usually better to get out if you can - obviously the company is struggling and may never recover, plus it's never nice to stay on after your workmates have left.

Good luck (in advance) with your new life .

Desperate_Housewife_2-2

That sounds like sound advice Jonesy from DD, I hope it all works out for you.

I have just finished reading 'Rich Dad, Poor Dad' and its set me thinking. I reckon it was written with that purpose in mind but I have been wondering for a while now about diverting some of my cash into a stock and shares isa, what do you guys think?

My plan is to pay off the mortgage and then start saving up into a cash isa, when thats full, start an stocks and shares isa but is this too slow? Is there a more effective way of doing it?

My situation at present is as follows:

- I have virtually a zero balance on my £26k mortgage (due to stoozepot which will be in there for a year) therefore no interest to pay for a year

- Mine and hubby's pensions are ok, We pay aroung £550 per month between us into them

- No debts (apart from mortgage)

-saving for kids to go to uni if thats what they want, should have enough to cover tuition fees each by the time they are 18

Am I missing anything? The reason I am asking is that I think its a good idea to regularly review ones situation instead of staying on a possible outdated plan. My emotions tell me to pay off the mortgage but my head is telling me to think harder, I feel as if there as a solution withing my grasp that I just can't reach or even see.

Sorry to appear to be doubting the master plan guys but I need some feedback!

Thanks in advance

Dithering_Dad

HI DH. I guess it all really depends whether you get more of a "buzz" from increasing your savings or from reducing your mortgage.

Currently I really get excited (sad I know) when I make an overpayment into my mortgage account from my savings. I just love the double whammy of knowing that I'm a little more debt free and also that I'm depriving the banks from a little bit of profit .

TallGirl

Firstly JonesyBonesy redundancy sounds interesting must be a big decision but as you have 18 months that should be enough to get something else lined up. I would say go for it.

With regards to savings vs mortgage I think this has been done quite a few times and I always belive it comes down to the individual and what suits them best. We used to have ISA/TESSA but now with the offset it is just easier to pay it all off the mortgage. I don't think I could be deciplined enough to keep checking I am getting the best rate and move the money around. With regards to stocks and shares I have a few from Denmark and some in Prudential we got when they took Egg over. They are currently worth 50% less but it is only a small sum so will just leave it for now.

chickadee

Hi Jonesy Bonesy. I think you have done the right thing applying for vol. redundancy. You have come to the conclusion yourself that your heart isn't in the job, and I think after 12 years you are well-placed to make that decision. If you have paid of the bulk of your mortgage by the time you finish work, that will give you lots of choices for the future. If I were you I wouldn't use all of your redundancy payout to pay off the mortgage unless it also leaves you with a cash 'cushion' to tide you over in case of unforseen events. You might be better off keeping a bit of it aside.

As others have said, the long lead-in will give you time to re-train, if that is necessary, or to decide what you really want to do.

I was made redundant in 2004 and haven't looked back. The redundancy money I received was paid into my One Account the day I received it. I had a job to walk straight into when I finished, but it didn't work out as I had hoped and I left after two years without another job to go to. That was a big decision but I had decided that I wanted to take some time out (funded by the redundancy money) to spend with my son, who at that point was 10. I had worked full-time since he was born, so it was really refreshing to spend some time with him. In the end, I had three months off, got the first job I applied for and am really happy, having recharged my batteries and found a job I love.

Go for it!!!!

Jonesy_Bonesy

Thanks everyone for the positive encouragement - it really means a lot to me :T

I'll find out in June if I'm accepted for the voluntary redundancy. Will have to keep fingers crossed until then. However, every now and then when I check my banking I look at my salary and think I must be mad giving up this job. I have to keep reminding myself that money isn't everything.

Good advice on keeping some as a cushion and not ploughing the lot into the mortgage. I'll be redoubling my MFi3 efforts over the next 18 months to ensure the mortgage is as small as possible by then.

I've also just picked up the book "Rich Dad, Poor Dad" and am finding it interesting so far. Will probably pick up the others people have suggested as well, as I really enjoy reading this sort of material.

Bonesy

angelavdavis

Good luck jb. I have never regretted taking voluntary redundancy years ago. I was able to pursue different career options as a result that have given me a much richer experience than had I stayed. In my opinion it makes you less afraid of change too.