Saving £1000 a month. Plans for it possible?

Miss_Moneysaver

Hi,


I have been working part time for the last 10 years (due to becoming a mum back in 2004). I am staying part time in my main profession (NHS), although I can now do extra days here and there to help out when they are short staffed (not planning on having the extra days put in my perm contract though), and I am also doing some teaching one day a week (term time only) from September. My childcare costs have gone down from around £800 a month to £100.


I usually save about £800 a month anyway but I plan on increasing this to £1000. My plan is to pay off the mortgage and fund 2 lots of university fees if I can. My eldest is 11 and starts secondary school next month (the reason I am starting to plan like this). He is a bright boy and I think, if he stays on track, he will definitely go on to university. My youngest is 7 (will leave school 4 years after my eldest).


We have a 25 year endowment maturing in 20 months. I have increased mortgage payments so we are paying off £10K a year. So, by March 2017 the mortgage should be closer to £70K. The endowment will be added to the mortgage so reducing it to around £40K. My plan is to pay off the mortgage balance before my eldest turns 18 and, hopefully, I should have enough to put him through university (especially if he stays at home; we live within commuting distance to Durham, Newcastle, Teesside). I will then have another 4 years to save for the second child. We already have trust fund savings for each child but we don't pay much into them.


Is it possible? My dream is to be mortgage free before my eldest reaches 16! My husband is really against us funding university and thinks the kids should take out loans etc. I hate the thought of them being in debt though. I would expect them to have a part time job through university though (as we did) for spending money/clothes etc.

Miss_Moneysaver

The endowment belongs to my husband (he started it before I came along in his life). I have paid into it for years though. At worst, it will reach £30K so I have gone with that figure.

atush

What % is your mtg?

I am with you saving for university fees (i'd be doing it via S&S isa or investment trust savings plans not cash) bit not too sure abt the mtg. As most investments will average more in growth and income than current mtg rates. This oucl d change, but hasn't yet- at which time you could switch. AS your endowment is also a form of savings so you are basically putting most of your spare income to the MTG when you might have better avenues? And other things to pay for (such as the mentioned fees but add in car replacements, holidays etc).

With rates so low, id be investing in S&S isas, unwrapped, or pensions instead.

Mojisola

Miss_Moneysaver wrote: »

My husband is really against us funding university and thinks the kids should take out loans etc. I hate the thought of them being in debt though. I would expect them to have a part time job through university though (as we did) for spending money/clothes etc.

Stop thinking of the student loan as a 'loan' -
http://www.moneysavingexpert.com/students/student-loans-tuition-fees-changes

xylophone

Your children have CTFs - these can be transferred to the more flexible JISA.

https://www.gov.uk/junior-individual-savings-accounts/overview

If you are happy for the children to access these at age 18, this might be a possibility.

Given your husband's attitude .you might have make it clear to them that this money is all they will get and if they blow it, they will get no more.

You might wish to consider splitting them between cash and stocks and shares.

Best cash rate here https://www.gov.uk/junior-individual-savings-accounts/overview

http://www.moneysupermarket.com/savings/junior-isas/

https://www.charles-stanley.co.uk/products-and-services/junior-isas

atush

Student loans are loans. At 6%.

My 3 wont be paying them as I saved for university and all 3 have graduated owing nothing. Clean slate for wherever they go, and whatever they do.

Sure if you got some silly degree and earn little you might never pay it all off. But I know my 3 would pay (as one will be a lawyer and one is a chartered acct) so I made sure they dont have to.

nonnatus

atush wrote: »

Student loans are loans. At 6%.

My 3 wont be paying them as I saved for university and all 3 have graduated owing nothing. Clean slate for wherever they go, and whatever they do.

Sure if you got some silly degree and earn little you might never pay it all off. But I know my 3 would pay (as one will be a lawyer and one is a chartered acct) so I made sure they dont have to.

But surely Student Loans were BUILT for kids like yours, who take practical degrees leading to well paid careers? They are more than able to meet the re-payments through their career without any hardship. My daughter is off to study Paediatric Nursing next year and no way can I afford to fund her three years of Uni. Fortunately she is almost guaranteed an NHS position at the end of the course and has no problem with taking out her own loans to pay for her own education. I'll send what I can when I can afford it.

atush

The point is, I saved for them from the time they were little so I COULD afford to help them? If you cant student loans (they are 6% now, not the little amts they were before) are for children whose parents can't afford to help.

We made a choice, flash new cars (our cars are 11-15 yrs old), redoing the kitchens and bathrooms (planning this now they are finished) or early retirement (probably will go before SPA but not by 60 for the OH-i have stopped work for good).

I was not going to let them go with debt over 30K (some students are not graduating with over 50K)