MFW - money, life and freedom

elle37

Hey all

Firstly thank you all for the inspiration, your stories are so varied yet you all have a determination to take control of your lives in common and i'm so pleased I stumbled upon this forum.

So my story in a nutshell. 37 have an 17 year old hoping to go to university next September. I'm a single parent and have been over paying my mortgage for the past few years, i didn't really do it with a particular goal in mind, i just figured i'd pay extra. I'm not the savviest person with Money or figures and have made lots of costly mistakes but i'm here to learn and share some of my new found knowledge.

So why the focus on becoming a MFW, now?
(1)I'm on annual leave this week so I can actually think about myself.....
(2)A Level results came in and Uni may well be a possibility,(very pleased! creeping toward a time where life will be more about me (excited but sad)
(3) I was diagnosed with an illness (not life threatening) and it's affect has led me to think I need to try to pay this thing off so I can relax , already finding it's affect on my physically is putting a strain on my work.
(3a) I'm also socially anxious so this may help with that!
(4) I'm planning on selling my flat leasehold and buying a freehold property so I have more control, i'm looking to be there until I pay off the mortgage.

I owe 156,000 on a fixed deal until 2018 which I'm hoping to port to the next property. My short term goal make over payments to 10% each year, once I have come out of the fixed deal my aim is to make better choices with the next mortgage I get hence why i'm here learning from you guys. In the short term i'm going to plan a realistic budget for a more frugal life, organise my savings to maximise interest, prepare my flat to go on the market (hoping to sell via an online agent - any advise welcome there !) and to research fully the area i'm hoping to move to.

My aim is to post each month which is a realistic personal goal and looking forward to looking back to see how well i've done.

:j

midnight_child

Hi Elle37,




I am sure you will find being a MFW quite addictive.


If you post your budget, you will probably get useful advice on where you might be able to save some expenditure here and there.


MC

smallholdingsister

Welcome and Good luck! Great news on the AS results, you clearly provide exemplary home support which is harder work as a single parent. * clapping smilie * Great start!

elle37

Thank you midnight child, yes I can already see that this process will help to keep me motivated! I Have a budget but it's not serving its purpose so I will revise it and post it. Any help is so welcome!

elle37

Smallholdingsister thank you. I am super pleased about results 😃 being pregnant at 18 didn't inspire the confidence of most people that my parenting would work out so I couldn't be more proud!

I think as I'm single I don't have anyone to bounce ideas off. My friends are great but strangely I'm thinking you guys will be able to act as surrogate husband in a more objective honest way, if that makes any sense!

Ali-OK

Welcome and fantastic news on exam results. Am a few years behind you with DS nearly 15, but similarly a single parent, new to the MFW board and a health issue to boot.

MSE is a fab place to pick up lots of saving ways and time off to have a good read and make plans is a great start.

Onboard with your journey

elle37

ah thanks Ali ok, trust me those few years go by so quickly! I wish i'd started planning a while ago but i'm here now. Sorry to here about your health issues, it is a struggle trying to keep everything together when you are on your own and facing these types of challenges but my plan is to focus on building the next chapter of my life so it is exciting.

Today I've done a few things to work towards my target
(1) Some painting in my room which I have been putting off, still more to do tomorrow but a good start
(2) Converted some old copper coins at the local supermarket coin machine thing, couldn't believe I walked out with £61.13p! and still more to change.
(3) Met a friend and did a walk around the area i'm hoping to move to. I find visualisation works well for me. As this is a journey of two parts (move from leasehold to freehold, then mortgage free) I'm going to need a lot of motivation as this may take a while!
(4) Prepared a list of odd jobs that need to get done and a list of builders to get quotes from, not going to town but some basic jobs in prep for going on the market.
(5) Quick scan of my freezer, cupboards and fridge. Planned meals for this week and prepared two meals from a range of random ingredients.

I'm thinking I need a more structured approach to this so i'm going to do some research, by the end of this week i'd like to have a realistic budget and savings plan in place.

elle37

Wow super busy week hence long post! This is my final day off work and although I don't feel rested I do feel more in control of my life which is great and hopefully put me on track to being mortgage free eventually. I realised at the start of the week that I needed a more structured approach and perhaps break my ambition into smaller manageable chunks. So the story so far:

1) Completed the MSE budget planner- triple eek- wow this was very revealing, scary yet rewarding. I had no idea how much I underestimated my spending commitments in particular things like Christmas, birthdays and car costs. I had not planned these items in advance and certainly did not put money aside each month for them. I had to get real! and i'll admit it took a few revisions as I needed to get to grips with my statements. This budget planner really helped me, put me on a slight downer as it felt like there was a mountain to climb but after a few days I pulled my socks up.
2) I looked into the piggy banking idea. On a separate tab on my sheet I organised my anticipated expenses over the next 6 months and the account I would use for each category.I then rearranged my payments and transfers accordingly. I also withdraw cash and placed into envelopes, these were for things like eating out, clothes and travel costs. This was really satisfying, I need to see the money itself and this will hopefully raise my awareness of how I spend and what i'm tempted by.
3) I looked at my direct debits and things i'm paying for that I no longer need e.g my subscription to credit reference agencies (Canceled) Gym membership I can't use due to ill health £30 per mth (trying to cancel but LA fitness require a doctors letter which I am awaiting). Cancelling contact lenses, I have glasses, its not going to be sunny for a while and I think I can cope for a bit look like an intellectual while at the newly joined library!
Areas I can save money
4) Paid my overdraft with saving
5) Downloaded Toshl App for windows phone- really good budget app to track spending on the go
6)Checked if council tax band is incorrect ( it isn't but now know how to do it when I move)
7)Joined the library - I spend loads on books
8)created some lovely meals with food I already have in cupboards, fridge and freezer - May sound strange but I appear to have a habit of buying move food and not using what is already there
9) Booked Cam belt replacement- I have put it off due to expense but a good phone round garages and it's booked for Wednesday.
10)Joined Nector and Clubcard- I'm a lidl shopper but do occasionally get products from Tesco
11) myself and son visiting my brother bank holiday so used Quidco to book tickets.
12) Joined energy saving club, submitted meter reading, unfortunately in debit so my DD is increased, no panic I will switch as soon as and review how we use energy.
On the preparing to move front:
12)created a folder for all house related correspondence and legal paper work in prep for selling
13)finished painting all wood work
14) booked odd job person
15)redecorated Sons room (with him) quite a bonding experience.

Phew - This week return to work. Challenge, make packed lunches!
(also update budget to account for cancellations)

diamondsonly

Hi Elle,

Wow what a packed week you have had. But sounds so productive. I also created a spread sheet which documents which accounts are for what expense, to keep track or I would definitely get confused.

The MSE budget tool is an eye opener. I have realised with the correct amount of budgeting for big expenses like car/annual insurance etc spread across the year we are actually left with more money than I anticipated.
Enjoy your week back at work.

Diamonds x

elle37

diamondsonly wrote: »

Hi Elle,

Wow what a packed week you have had. But sounds so productive. I also created a spread sheet which documents which accounts are for what expense, to keep track or I would definitely get confused.

The MSE budget tool is an eye opener. I have realised with the correct amount of budgeting for big expenses like car/annual insurance etc spread across the year we are actually left with more money than I anticipated.
Enjoy your week back at work.

Diamonds x

Thanks Diamondsonly, You are so right, once I get on top of the next 6 months I can see from my plan that things will be more manageable after that, hope i've not missed anything out. Super pleased that after trying to switch my standing order for council tax to direct debit for cash back on my 123 account, I have discovered i'm in credit by £223.35!!!! super pleased now my £97 each month can go into my savings pot :j Think the bug is hitting me

diamondsonly

Elle, awesome to be in credit by £223.35 :j