MF by age 40! Then I am buying a Mercedes SLK

diamondsonly

Thank you newgirly and bexester. Its not harsh at all and its one of the reasons I signed up for my diary. I value all your opinions and need the honesty.
We have made sacrifices along the way but definitely not enough. We didn’t have a TV in the house until dec last year as ours broke 2 years ago and we didn’t replace it so we could save money. But I know we are in a better place than most and I am thankful of that but we do need to look at our spending and cut back more to ensure we stay on track for MF by 2022.

Saving Raven, thanks for the welcome.
A holiday fund is a good idea. We are so rubbish at putting money into different pots but its something I told DH about last night and that way we allocate funds and live off the rest.

Also good to know others are still managing holidays whilst aiming for MF.

I have some birthday money I have been saving for the last 6 years.. I will use that to OP this month.. I don’t need what ever it is I thought I was saving it for.
The SLK has always been a dream of mine and then when someone told me I could buy a second hand one for 10k (8 years old i think) I am using it as motivation to be MF. I want to be MF more than I want a car… would be awesome to have both though

bexster1975

Second hand, I may forgive you then! if it's a dream fair enough.

I think your last statement hit the nail on the head. It's just about priorities. Things aren't right or wrong ( as the car conversation proves!). Buying freedom is the most valuable thing for me. I am also lucky in that my needs are covered, and I don't have bigger wants than financial freedom just now. It's definitely a mindset. Sounds like the plans are in place. If you post a statement of affairs ( SOA) people on here will be happy to help you trim your costs if possible.

Good luck

Bexster

diamondsonly

Bexester you could have bean a alot harsher so I thank you for being easy on me.. newbie and all.
OO a SOA sounds great would love the input to cut back where we can..although I suspect alot of it is eating out...my DH has an addiction to KFC lol.
Will post a SOA later... be gentle everyone

diamondsonly

So here is my SOA:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 3000
Partners monthly income after tax....... 1500
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 4500

Monthly Expense Details
Mortgage................................ 900
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 139
Electricity............................. 120
Gas..................................... 120
Oil..................................... 0
Water rates............................. 80
Telephone (land line)................... 20
Mobile phone............................ 50
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 300
Clothing................................ 150
Petrol/diesel........................... 260
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 150
Car parking............................. 0
Other travel............................ 55
Childcare/nursery....................... 200
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 100
Pet insurance/vet bills................. 0
Buildings insurance..................... 20
Contents insurance...................... 20
Life assurance ......................... 90
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 100
Holiday................................. 0
Emergency fund.......................... 0
MSc Degree.............................. 500
Total monthly expenses.................. 3406.12


Assets
Cash.................................... 20000
House value (Gross)..................... 420000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 440000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 147800...(900)......2.79
Total secured & HP debts...... 147800....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 4,500
Expenses (including HP & secured debts). 3,406.12
Available for debt repayments........... 1,093.88
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 1,093.88

Personal Balance Sheet Summary
Total assets (things you own)........... 440,000
Total HP & Secured debt................. -147,800
Total Unsecured debt.................... -0
Net Assets.............................. 292,200

ourcornercottage

Electricity, gas, water all high.

My water rates are about £45 per quarter (although this doesn't include seweage as I'm on a septic tank)

I have solar panels but prior to this was paying a max of £40 per month. (Not its about £20!) Gas I don't know as I'm on oil but it seems a load to me.

Perhaps just ring current provider for annual usage and go on switching sites first of all.

Groceries seem a tad high too although a lot better than some!

Others seem reasonable if you have same attitude as me and like to enjoy life as well as save. There is definitely room for further savings in more areas if you want to go down the super frugal route!

Ps have personally looked at public schools too and the fees add up. We have similar income to you and decided we couldn't afford it at primary level but will reconsider age 11. It iwill be definitely cheaper to move especially with 2.

diamondsonly

Thanks ourcornercottage. the utilities is one of my stresses.. I have switched supplier in feb 15 and it is much cheaper than before.. We live in a 1920's property that has poor wall insulation as its brick built and suffered from damp when we moved in 5 years ago.

Our groceries usually only cost £45 a week max but that is for 4 adults and 2 small people mon-fri as my parents live with us to look after the little ones during the week

I can definitely try and cut back and also start shopping in Aldi more regularly too.

ourcornercottage

There are massive grants on our area for insulation of single skin houses if that applies to you, it's really worth looking into. Might be worth investing some time looking into.

cwhiskey45

Hello.....are you me?


I had (long story but no longer have a mortgage) almost exactly the same mortgage as you, we are the same age, we also live in a 1920's semi that was cold and damp!


We insulated the walls and loft, filled every hole with expanding foam (there were a lot!) slowly but surely replastered, new windows, carpets to get rid of drafts etc etc but made the house warm and not damp anymore....anyway the reason I am saying this is because we only pay £35 a month/10 months a year on water and £87 for gas AND electric, so it really does sound like you are massively over paying, and even before we had all the work done, we have never paid that much and we live in an expensive (ish) area. If it helps we are with sainburys energy at the moment, and dealt with the swap over very well and whooohoo for extra nectar points!


Good luck with your journey

gaffel

I love the idea of having a dream purchase when mortgage free. For mrgaffel I have promised him a new car. Not sure on what mine is.

Again (sorry to sound as if nagging), really not sure private education is worth it before 11. After 11, yes, before no. Personally I would reallocate that money to OP until they are 11.

PrincessLou

gaffel wrote: »

I love the idea of having a dream purchase when mortgage free. For mrgaffel I have promised him a new car. Not sure on what mine is.

I agree. I think with all the savings you have made and effort one must make to clear their mortgage early, you definitely deserve a treat at the end of it. If anything it will serve as motivation throughout the whole process.