My MF Mission 2015

lippy1923

Payday! £2500 added to credit card repayment fund - Needs to be paid off in summer 2020 so earning me some interest for now.



This is likely my last December update in terms of savings. If I get Xmas money then I think it will be stashed away for spending on treats rather than saving..... but you never know. I might squirrel some of it away if nothing takes my fancy.

Total mortgage OP - £33,500
Mortgage Balance- £64200
Total Savings - £40,000
Credit card repayment fund- £4000

lippy1923

Early update of next years targets. They seem smaller than usual but that's because I will be taking maternity leave next year

Overall Goals

1) Overpay £6k off the mortgage- This might be a challenge during the mat leave months but will try to maintain the £500 monthly OP's.


2) End 2020 with min £40k savings- I already have this but hoping that with some good budgeting next year I wont have to dip into these funds. I've nearly saved up enough to pay off my 0% credit cards, hopefully by the end of the next payday I will have that covered.


3) Not necessarily money saving but my overall NEW YEARS RESOLUTION is to make life a bit easier on myself- This might be small things like meal planning/slow cooking, online food shopping instead of having to drive out for big shops, decluttering so easier to clean/ tidy etc. I will look into subscriptions as well, for repeat needs so I don't run out or forget to restock (depending on costs obviously).


Any simple suggestions to making life a little be easier are welcome.

Moneyfordreams

Congratulations...

lippy1923

Start of the month update-

£500 OP to mortgage (63,200)
1 brick coloured in
1 month knocked off remaining mortgage term
TOTAL 6 YEARS KNOCKED OFF MORTGAGE TERM

Results

Total mortgage OP - £34,000
Total Savings - £40,000
Credit card repayment fund £4000/£5500 (Hope to add remaining £1500 required by Jan payday at the end of the month so the entire 0% balance is ready to be repaid in April/May time)

shangaijimmy

Great going as usual, and I particularly like your total years knocked off the mortgage term. I'm definitely going to clone that idea (scurries off to work mine out and post in my diary)!

lippy1923

So I've just found out my current account interest will be slashed from 1.5% - 1% in May. I may as well downgrade to the lite account and take £20k out.


This meddles with my 2020 targets as there really isn't much point in having savings at these rates. We are looking to move house in the next 1-2 years so not really worth chucking it into S&S. I only tend to invest if its for 5 years + just in case.


Some more decisions to make. My mortgage year ends in June, so I have a month to see what I can safely OP for the end of that year. I think I may max the total 10% OP in May and put the rest into my ISA. This will totally mess with my 2020 goals as I planned to OP by only £6k which maintaining my £40k savings.


I think I need to look at my finances with a view to my net worth. I can either OP more of mortgage and have less savings, or more savings (which make me feel safe) with higher mortgage.


Totally rambling now Need to think.

lippy1923

£500 OP sent to the mortgage
1 brick coloured in
1 month knocked off remaining mortgage term
£1,500 added to spend pot

Results-
Total mortgage OP - £34,500
Mortgage balance- £62,200
Total Savings - £40,000
Spend pot- £5,500


Since my current account interest rate is dropping in May I have decided to OP my mortgage with a lump sum to max the yearly OP allowance. I think it will be about £8k *Need to check with my mortgage provider. This will reduce my savings pot of £40k .I'm really going to tackle this mortgage over the next 2 years (even with maternity leave starting soon)


New targets-
OP max 10% allowance this year and next
Mortgage neutral by Dec 2021

lippy1923

>£500 OP sent to the mortgage
>1 brick coloured in
>1 month knocked off remaining mortgage term  
>£1,500 added to savings pot

Results-
Total mortgage OP - £35,000
Mortgage balance- £61,175
Total Savings - £41,500
Less than £20k between my current mortgage balance and my savings fund! £19675 to be exact. Well on track to be mortgage neutral by 2021. Lets see what maternity leave does to the finances.

lippy1923

>£500 OP sent to the mortgage
>1 brick coloured in
>1 month knocked off remaining mortgage term  
>£1,500 added to savings pot

Results-
Total mortgage OP - £35,500
Mortgage balance- £60,152
Total Savings - £43,000

Only £17152 difference between my current mortgage balance and my savings fund!

lippy1923

So after confirmation from my lender, I can overpay more that expected! £11,500 before the end of May. Need to reassess the finances again when I get paid end of April, but I will likely OP this whole amount before my window closes. With interest rates plummeting left, right and center for savings, its not worth keeping it anywhere else at the moment. Will take a big chunk out of my cash though, which is a little scary