The journey to financial independence.

Cream_Tea

Hi,
In 2012 I took out a 30 year £166,500 mortgage @ 6.4% with my now husband. We were cautious after hearing so much about how expensive it is being a home owner. A few months in it struck us after using the mortgage overpayment calculator here. In 30 years we would have paid more than double the cost of the house to the bank! That day changed our min set (thank you Martin!)

We immediately starting over paying £50 then when we could £200 a month. We recently renewed our mortgage and took the term down from 28 to 19 years with an interest rate of 2.5% (what a difference!).

Our aim going forward is to over pay £350 a month. If we maintain this it will knock off another 6 years. We did talk about reducing the term further but decided we liked the flexibility of overpaying even though to date we have never needed to cancel an overpayment.

Wish us luck at this rate we will be mortgage free by my 40th birthday!

Cream_Tea

I missed out a few bits I see looking at other peoples posts. I see it's full disclosure here, so here goes....

At the beginning of the year we had a £1000 and £1500 over drafts and £1000 on credit card. (Total £3500) post wedding, new house, student debt.

With a little bit of organisation and the money and time to sort it we are down to £0 and £900 overdrafts and £600 credit card. (Total £1500). We also have £2300 in ns&i so far this year which we cannot bring ourselves to use to clear debt because it just feels like a step back!

Anyway again.. Wish us luck and any helpful hints and info would be appreciated.

Cream_Tea

Interesting fact for today....My fear is that by over paying I will miss out on life and fun. I talked to a friend who told me Tesco Club card points are worth four times more if you 'boost' them. I called up Tesco and I have £49.50 of unused vouchers I've changed up £5 which is worth £20 in pizza express (can only be used on food nog drink) and I am going to do this every so often to be our treat for all our good saving!
MFW 1 - boredom 0!
I will keep you posted for any other good ideas.

Cream_Tea

Hi all,

Today is my favourite day of the month, the day when my bank calculates the interest and everything minus what we have paid that month and I see how well we have done. This month more than £900 off our mortgage! Two years in and I'm an addict I'm sure. So please I found this site because it is helping the addiction for the last 4 days!

I've started my Christmas presents already. Two years ago a friend and myself made jam, chutney and chocolates as presents which were very successful and really added to the festive spirit in the lead up. This year we are making for 14 couples: spiced beetroot and orange chutney because it was so popular last time, chilli jam, festive chocolates, fudge, mulling syrup and salted caramel vodka.
We have already purchased the jars, bottles and festive print cellophane bags costing £25, £23 and £3 and have estimated if we buy all the ingredients in Tescos it will cost £60. Which works out as less than £8 per couple. Which is well under my normal £20 per person budget for each friend/family member. Feeling pretty good about that!

Any way best go. Onward and upward fellow MFW!

Watty1

And home made pressies are definitely the best

Mrs_E_3

Welcome to the boards. Home made Christmas pressies are great. I plan on doing some of those this year.

I think finding the balance between overpaying and the addiction that comes with it and having a life to live at the same time. It's just a case of finding out what works for you without going without too much so you end up spending far too much because you rebel etc. A monthly / weekly treat or a treat when you reach certain targets etc are a good idea.

Cream_Tea

Thanks I think that's a good idea. I will have a think and plan some nice treats like nights out and trips basically something to look forward to each week/ month.

greent

Another vote for having a life whilst OP-ing here - it's all part of memory making and keeping life fun. Balance is the key


x

Cream_Tea

Hi all,

I've had a day off today, one of the perks of shift work. I decided to have a productive day and rang round some of our bills (mobile phone, house phone and internet, home insurance and life insurance. I asked each company if they would reduce my bill and explained that our outgoings were too much at this time. All bar the life insurance gave us discount. I am so pleased. Each one gave us about 10%. I was so impressed because none of them were up for renewal. The life insurance did allow us to amend our cover which reduced the cost. We now have a slightly lower payout on death or injury and still probably more than we will need.

Nearly one week in and I must say I am feeling very clear about finances and feel more organised than ever before.

Any ideas what to do next to save the pennies?

JimLad

Cream_Tea wrote: »

Any ideas what to do next to save the pennies?

Maybe you could post a list of all your monthly outgoings? Then we can see where your maybe spending too much.

After you have squeezed all the savings from your outgoings its time to try and up you incomings

Cream_Tea

I will work the outgoings out and get back to you in the next few days. I was sort of putting off doing that out of laziness but having said that into I do love a spread sheet.