Mortgage Free For A Happier Me

Happier_Me

Have done very well for my birthday so far... I have been given and bought some things that I will cherish for years to come from my mum.

DH managed birthday cards and the kids bought me something too ( they don't know it but I bought it yesterday and gave it to DH to give to the kids to give to me).

He did stand in the middle of the kitchen the other night and declared 'why do you need presents when you have everything you need right here' whilst waving frantically at himself. The man is obviously delusional.:D

Happier_Me

Hi All. So I've been missing in action since March but I have been busy lurking on various MSE forums.

Things are going well in the Happier Me household although our financial situation ... and mindset about mortgage freedom has changed somewhat recently.

It occurred to me the closer we were inching towards mortgage neutrality that for us it isn't about just paying off the mortgage. We want to be financially independent and retire early - the term I think is FIRE.

Earlier this year we were on track to be mortgage neutral by February 2016. Then we used a portion of offset savings to pay off a car loan, moving this date to August 2016 - but it saved us interest overall. Then DH started to whinge about wanting a new car (alot!). We also have to redecorate the house including some fairly expensive building works and bathroom replacements over the next couple of years. As we have all our cash tied up in an offset, we effectively wouldn't have an emergency fund if we chose to pay off the mortgage at mortgage neutral date (not that we would).

We successfully paid off our first house in our early 30's. It was a great feeling but a temporary one because we intended to upsize. I want to really feel like I have achieved something when this mortgage is done. I want the house sorted, DH happy with the car we have, and savings in the bank.

bexster1975

Hi HM

I am also heading for mortgage neutral. I think it's really different for different people. I will be neutral by the end of October, but like you if I paid off the mortgage I would have no EF. This doesn't matter really as I am in a fixed until next summer anyway so did not intend to actually pay off mortgage until then at least. As my savings make more interest than I pay on the fixed mortgage it doesn't matter as I am ( slightly) in profit keeping the savings anyway. My plan is to save an EF after the mortgage is " gone" so I have a safety net back. Things are a bit more complex here as I plan to leave a well paid, if far from ideal, job next year anyway so finances are a bit more of a mystery from about 12 months time!

Outgoings are reduced so I can pay as little as possible for the essentials ( utilities and insurances) which makes room for some of the things that are enjoyable in life. This will mean even when my income reduces, my quality of life need not.

Good luck with your plans, I'm sure things will change again for you in terms of what you want but that doesn't affect what you have achieved so far!

I shall follow with interest

Bexster

Happier_Me

So the new plan is as follows:

Car:

DH has had his way and he has a shiny new car on the drive. Not very MSE but it has cost me less than a divorce. And if I think about it long enough I am sure I can come up with a list of redeeming features he has that makes the expense all worthwhile....

Nope, nothing yet... I might have to sleep on it!

House:

The intention is to sort this out over the next 12 to 24 months or so. First job is for DH to dig a hole to check conservatory foundations. If he doesn't do this soon I shall have to restrict his access to San Miguel...he hasn't figured out he can buy his own yet so this should work.

Mortgage:
We currently pay £1,490 a month and our 'new'mortgage balance is £84,707. At this rate the mortgage will be cleared within 5 years.

Car Loan:
We have a loan for the new car that we will clear at the end of this month using cash raised from 'money transfer credit cards'. This is where money is paid straight into your current account for a transfer fee (we have paid 1.9%). This one off fee will allow us to move £24k to 0% credit cards and is much cheaper than keeping the remaining car loan or paying the loan off from savings.

Savings:
We now have £57k in offset savings. This will continue to grow although the home improvements and new credit card payments will slow this down somewhat.

In 5 years time we should be mortgage free with our savings all our own. I will update my signature for the above soon.

Happier_Me

Hi Bexter

Thanks for reading and your reply. If your user name indicates your year of birth then we are the same age!

I can relate to being in the 'not so ideal' job situation. Whereas you have a plan to change this though, my plan is far less inspiring... I am just going to stick it out for a bit longer. On paper it is the ideal job but in reality it is a pretty miserable place to work.

Good luck with your plans and I will have a look for your diary.

Luckyinlife

5 years is a great target

having a new car isnt very mse but if you can afford it why not i say your paying 1.5k a month of the mortgage you deserve some luxury's :]

bexster1975

hi HM

Yes we are the same age! Do you work at my place!:D

It is most certainly the place rather than the role that is the problem. To some extent my hand has been forced as my employer has made my job so untenable that I became ill. So planning on leaving is the only real choice. I'm not sure I'd have done it if circumstances hadn't become so dire!

No job is worth being made ill over.

Oh, I don't have a diary. If my employers even read this and
Knew it was me writing it I'm sure they would try to sack me!
Also people in RL know me on here so don't want to share all financials in a diary

Bexster

P.S you don't teach by any chance?

bexster1975

I think lucky in life is right, if you can't buy some of the things you want, there really isn't any motivation to go to work is there!

Paying off a mortgage is a marathon not a sprint. It would be very easy to give up if you deprived yourself of everything you enjoyed.

Bexster

Happier_Me

Hi Luckyinlife

Although I wouldn't choose to spend vast sums on a car if I were single, the fact is, I am not and so a compromise has to be found. The car we have now will be with us for many years to come I hope.

And it is very nice to drive:D

Happier_Me

Hi Better

No I don't teach, I work in Finance. But I can relate to your situation.

I have worked in roles that have been relentless but rewarding with the people great fun to work with - the pressure and long working hours seem a small cost when you enjoy the job, the people and feel valued for your contribution.

I have worked in a high pressured job previously but the environment was absolutely toxic. This combination made me poorly and I know firsthand of the need to get out.

I am now in a job that isn't stressful nor is it inspiring and the atmosphere is certainly unhealthy. I can deal with this at the moment though while I reassess my options workwise and watch the current work situation play itself out.

Our mental health and wellbeing is so important to us all and you are making positive steps to change the things that are negatively affecting yours so very well done to you. Plan to get out and do it on your terms, I suspect it will be the best move you make.