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Back in the black.

edited 18 November 2014 at 8:37PM in Mortgage-free wannabe
65 replies 5.1K views
blacksteblackste Forumite
1.1K Posts
Part of the Furniture Combo Breaker
edited 18 November 2014 at 8:37PM in Mortgage-free wannabe
Hello there.

In some way, shape or form, this will document my efforts at financial independance. Im not going to call it a mortgage free diary specifically, as this is more about all of my debts than just the mortgage.

Well, this has taken a long time to get around to writing. I have been a MSE forum member since July 2006. I have lurked on this particular forum almost daily for as long as i can recall. I was heavily involved in the matched betting forum for a few years, but when i reached my goal there, i stopped betting, and largely stopped using the forum.

So, a little about my and mine. Im the grey side of 40, DH is the right side. DS is 9. Married 7 years (paid for by match betting), together for 12. We both have good jobs, as secure as jobs can be these days. Our incomes are both really good. She got promoted last month and received a nice pay rise for her troubles, which will be going straight to debt clearance. Im working shifts at the moment, and getting 25% allowance for it. Im waiting to find out of i stay on shifts next year, as the guy i am covering is waiting to here about an extension to that role. Fingers crossed, as that money will give us a lot of scope to clear debts.

I concider myself fairly financially savy. I have been overpaying my mortgage in some form since i was about 25. paid AVCs since i was 18. Sadly while im pretty good at paying my debts, im god awful at saving. We have a share save scheme at work, which i pay the maximum into, but asides from that, i have less than 2k in savings (and thats a record for me).
Mortgage £242500 on completion
FD CC 11/2014 £5900 (£3900 after BT)
FD loan Approx £5700

Deeply depressing total - £254100
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Replies

  • blacksteblackste Forumite
    1.1K Posts
    Part of the Furniture Combo Breaker
    So. A short, and slightly painful SoA.

    Mortgage - £105702.90 - 3.09% fixed until 13/4/2019 (FD)
    Debt to mum - £11250 - Indefinate if i needed, but 2 years imo.
    FD CC - £5473.80 0% until 30/08/15 paying £300pm
    LLO CC - £4900 0% until Aug 2017 paying £175pm
    GOCARD - £720(ish) -19.99% until Jul 2016 paying £35.89
    Total debt - £128046.70

    We run 2 cars. Both pretty new and good quality, but both good on fuel. Not planning to downgrade at this time. we both have decent commutes, and need reliable cars.
    My car £379
    DH car £209
    Servicing £75
    Fuel £250
    Groceries £460
    DS clubs £80
    Gas and elec £92
    Water £27
    Council tax £172
    Sky £11.50
    Tv tax £12.12
    Union fees (x2) £26.26
    Mobile phones (x2) £32
    Gym £9.99
    Lottery syndicate £16
    Nice cleaning lady £120

    Savings.
    Co. share save £18000 (approx) must be held 5 years to gain tax relief. approx £2000 available.
    Premium bonds £1250
    Savings account £930

    Income.
    Me - £2780pm plus annual dec bouns of 1 weeks pay. Will go up slightly next month due to cycle2work ending. No overtime.
    DH - £1600 (approx due to new job). She also gets fuel expenses which get paid either bimonthly, or quarterly of about £75pm
    DS - lazy little !!!!!! earns nothing. We do get child benifit though £82

    So, we do have a really good income/outgoings, but straight up, were a bit.....spendy. We like to travel, we like nice hotels. Im not overly strict with what DH spends. As long as we dont hit the overdraft, and all the bills are paid, i can sleep at night.
    Mortgage £242500 on completion
    FD CC 11/2014 £5900 (£3900 after BT)
    FD loan Approx £5700

    Deeply depressing total - £254100
  • blacksteblackste Forumite
    1.1K Posts
    Part of the Furniture Combo Breaker
    And so, i guess to a goal.

    DS it turns out, is a bit bright. University will beckon. Im fairly determined that he wont be leaving uni with debts. So, i need those debts clear.

    Goal 1 is to get the FC CC clear by the time the interest free period is done.
    Goal 2 is to get my mum paid back. At this time, thats the £930, plus the premium bonds, plus i need another £9kish.
    Goal 3 is to clear the LLO CC way before the interest free runs out.
    Goal4 is to clear the mortgage in 9 years. It currently has 14 years and 4 months to go.
    Mortgage £242500 on completion
    FD CC 11/2014 £5900 (£3900 after BT)
    FD loan Approx £5700

    Deeply depressing total - £254100
  • blacksteblackste Forumite
    1.1K Posts
    Part of the Furniture Combo Breaker
    First bit of good news. DH just got a letter from the people who run the mothercard storecard, which she cancelled a few years ago. Turns out they owe her £6. Straight into the pot as soon as its received. Yay us.
    Mortgage £242500 on completion
    FD CC 11/2014 £5900 (£3900 after BT)
    FD loan Approx £5700

    Deeply depressing total - £254100
  • in_need_of_directionin_need_of_direction Forumite
    6.9K Posts
    Eighth Anniversary 1,000 Posts Name Dropper
    Forumite
    Sounds like a fine plan. Best of luck with it.
    Mortgage at 01.01.14 £119,481.83:eek: today £23,624.83. Emergency fund £5.5/5.5k & £200/200 cash.:jWeight 24/02/19 14st 7lb now 12st 3lbdetermined to stop defining myself by my mistakes. Progress not perfection.:T39% through my 1% mortgage challenge. 1% = £387aiming for 50% by year end
  • PushkinPushkin Forumite
    795 Posts
    Hi Blackste - I love your attitude, very honest and very witty!

    If you've been reading for a while you'll know you'll find loads of support & tips on this forum. We are not in a dissimilar situation to yourselves - maybe a few years older :(

    For me the most important thing is having total visibility of both income and outgoings. I spent years wondering where our money was going and buying things without really considering if we could afford it. While I probably don't go down to the level of some people on here in terms of spending (and maybe I should) I do now allocate everything each month including a lump sum in 'miscellaneous'.

    Look forward to reading your updates...
  • edinburgheredinburgher Forumite
    13K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    Forumite
    So, what is the plan to help DS through university? Clear debts now to free up income, some savings/investments to help pay his way, or a combination of both? :)
  • Thanks guys.

    We are never going to get down to the pennies. I know us, and if we try and kill ourselves to do this, we will both give up. For us this will be about balance. Working hard on the debts, while still having some treats.
    If im being honest, the serious effort will being after the new year, for 2 reasons. The better halfs best mate has just come home from Australia for 4 weeks. They have not seen each other for nearly 2 years (barring the weekly skype), and Bestie is pregnant, so wifey will spoil her rotten for a few weeks. Reason 2 is the fella in the red suit is due a visit soon, and as a very small family, we love christmas. However, i will be doing what i can in the mean time. DH and myself have put very limited (for us) budgets on each other this year. The upside is i dont have to go through the indignation of queueing to get into pandora this time. God i hate that.

    So, todays plan.
    Order £25 paypal voucher from Swagbucks.
    Replumb downstairs toilet. (2nd worst diy job ever).
    Learn how to use YNAB. (im crap at stuff like that)
    Tidy the study.
    Go buy cheap cereal, and take DS to get measured for new bike, taking him to a shopping centre for tea and "dad n lad" time.
    Mortgage £242500 on completion
    FD CC 11/2014 £5900 (£3900 after BT)
    FD loan Approx £5700

    Deeply depressing total - £254100
  • Hi Edinburgher,
    Yeah the plan is to be debt free by then. If finances work out well, we will likely buy a house local to whichever Uni he chooses, to reduce living cost/add to his future wellbeing. We should be able to pay all of his living costs as well, rather than have him take student loans etc.
    Im hoping that nothing major crops up in the next few years, so that i dont have to use my company share save money. If i dont that should leave me a very nice lump sum, tax free.
    Mortgage £242500 on completion
    FD CC 11/2014 £5900 (£3900 after BT)
    FD loan Approx £5700

    Deeply depressing total - £254100
  • FWIW, we are more than capable of clearing the mortgage. Up until March, we were down to 32k. However, we were looking at moving house, as we were struggling with space. Looking at our local market though, we needed to spend in excess of another 120k to get what we wanted, where we wanted it. When we thought about it, it wasnt worth it. We have truly fantastic neighbours, and having had bad ones, we know the value of good ones. So, we decided to extend the downstairs, and renovate. New orangery, kitchen, en suite and a good decorate of everything else. Best thing we ever did.
    Mortgage £242500 on completion
    FD CC 11/2014 £5900 (£3900 after BT)
    FD loan Approx £5700

    Deeply depressing total - £254100
  • GoldiegirlGoldiegirl Forumite
    8.8K Posts
    Ninth Anniversary 1,000 Posts Rampant Recycler Hung up my suit!
    Forumite
    Hi welcome to the forum.

    I like your approach to thinking about the bigger picture, and thinking about financial independence, rather than just focusing on the mortgage.

    You also mentioned one of my favourite words -'balance'.

    If the budget is set too low, and the regime is too harsh, it's almost impossible to to adhere to - treats and things you enjoy are needed as well.

    I'm hoping to start on matched betting next year, to fund a few treats after I stop working.

    Good luck with your plans
    Early retired - 18th December 2014
    If your dreams don't scare you, they're not big enough
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