Hope is not an Effective Financial Strategy

ourcornercottage

shangaijimmy wrote: »

Inspired by ourcornercottage i've just looked back and charted our monthly interest for each of the last 5 Augusts. This makes for startling reading, and a definite set of figures to show Mrs SJ to help with her compliance in this quest!

• Aug 2011 - £472.33
• Aug 2012 - £500.14
• Aug 2013 - £479.51
• Aug 2014 - £467.00
• Aug 2015 - £221.43

So as much as i thought we were doing well for the last 5 years, we possibly weren't!

Wow that is a massive difference. Amazing

shangaijimmy

SO i've made some assumptions. The first is that we'll overpay by £500 each month (conservative figure) and the second that the interest rate will remain the same (highly unlikely). That gives the next 8 Augusts as:
2016 - £201.52
2017 - £181.35
2018 - £160.91
2019 - £140.05
2020 - £118.78
2021 - £97.51
2022 - £76.14
2023 - £54.33

I must confess to being slightly disappointed as to the speed of potential progress, especially given the interest rates are likely to much higher. Us MFW'ers are never pleased!!

Ali-OK

It's the one bit I find disheartening on a monthly basis as it's pence and all the effort amounts to about £36 a year drop here, but higher interest rate for me (3.69).

Phenomenal drop from last year to this :T - have to look at it that's £200+ freed up for capital, rather than profit to the bank. You're beating them!

shangaijimmy

I suppose you multiply that drop by 12 and then it looks significant too. Great little task inspired by ourcornercottage.

And Ali that is perfectly correct. consider it a £200+ OP each month.

Lynplatinum

So if its 200 per month - even with my rubbish maths - thats £2400 the bank has not got their grubby little paws on! Well done SJ!!

Imagine the chaos tho, if everyone managed that????!!!! A very different world! ah well one can dream!

shangaijimmy

Chaos - the government would need to bail them all out again, whilst safeguarding their astronomical bonuses to ensure future votes and (tax free) donations...

Quiet day moneywise planned, and hoping for a NSD (unless its my turn to buy milk for work). Tilly tidied 36p first thing and counting down the sleeps to account posting and brick colouring in (will it be 1 or 2 that's the dilemma) - 6 sleeps...

Oh and thanks to DFOD's reminder i relisted 22 items on ebay, and asked Mrs SJ to sort some photos for the next wave of stuff.

lippy1923

I'm also looking forward to account posting day and brick colouring in lol.
Good luck with the ebay sales.

shangaijimmy

NSD achieved, but sadly nothing sold in eBay. Summer hols not the best for eBay so think I'll hang on a week or two and relist when schools fully back.

Nothing else happening, so I'll leave it for tonight and check in again tomorrow.

sarahevie1

Definitely a huge reduction in interest from five years ago. In five years I've gone from £18.70 per day to £6 a day, which will decrease again when my remortgage goes through.

When I took out my mortgage is 2007, 30 years, 5.99%. The projection wasd I'd borrow £143000 but pay £167000 in interest - shocking:eek: if that doesn't focus the mind ....

debtfreeoneday

It's brick colouring in day here, the question is what colour? Ours is a rainbow house, as requested by the littlies!