New Diary, New Start-mortgage be gone

tattycath

Right, it's a rainy bank holiday Monday. Mr tc is settled in front of the TV and I've been busy.
I've done some housework and was thinking about the mortgage...
So, I started number crunching. I really need to more or less double the payments we make a month in order to achieve the objective I've set. :eek:
I've made a start by paying a £150 overpayment this morning.

I've been trying to work out where the money goes... Would I be right in thinking that the best way forward is to make overpayments first (as opposed to seeing how much disposable income I have left at the end of the month please?)

jwil

Well done on the overpayment!

I think it depends how disciplined you are with when you pay it. I fritter money away if I leave it 'in case' so I just tend to make the overpayment. You could always do a bit of both - make an overpayment but leave a bit in the account in case you need it.

greent

I always worked on a large overpayment going out the same day as our mortgage payment - so felt like the one payment, which happened to be just after payday, so the money then was 'gone' and couldn't be spent. (I also then made smaller OPs throughout the month from 'extra' money - ebay sales, cashback etc. )


x

tattycath

jwil wrote: »

Well done on the overpayment!

I think it depends how disciplined you are with when you pay it. I fritter money away if I leave it 'in case' so I just tend to make the overpayment. You could always do a bit of both - make an overpayment but leave a bit in the account in case you need it.

Thanks for this jwil. I'm kind of thinking that I can make a couple of decent sized overpayments during the month and then maybe even a third overpayment if there is a residue just before payday. I'm also Tilly tidying and trying to put a set amount in another account every month so I can build up a decent emergency fund. ideally I'd like a 5k emergency fund, but my initial target is 2k and we will go from there.
I'm already super excited about this journey. I don't know why but it seems surreal, being on the mortgage free wannabe board, like I'm now more serious About clearing the mortgage than when I was on the debt free wannabe board.
The aim in my head is to clear it in 5 years, but we'll see. :j

tattycath

greent wrote: »

I always worked on a large overpayment going out the same day as our mortgage payment - so felt like the one payment, which happened to be just after payday, so the money then was 'gone' and couldn't be spent. (I also then made smaller OPs throughout the month from 'extra' money - ebay sales, cashback etc. )


x

Ooh, I'm really liking the sound of this idea. Yes, maybe I should make one larger overpayment around the same time as the mortgage goes out and then any extra ones I can afford during the month. :j

peaceandfreedom

tattycath wrote: »

Thanks for this jwil. I'm kind of thinking that I can make a couple of decent sized overpayments during the month and then maybe even a third overpayment if there is a residue just before payday. I'm also Tilly tidying and trying to put a set amount in another account every month so I can build up a decent emergency fund. ideally I'd like a 5k emergency fund, but my initial target is 2k and we will go from there.

Given all that's happened lately, I would be inclined to build up the emergency fund first. Once the money is gone against the mortgage you can't get it back.

That's what I plan to do when I'm finally debt-free, build up a fairly hefty emergency fund before tackling the mortgage. That way I know I've got something to fall back on.

tattycath wrote: »

I'm already super excited about this journey. I don't know why but it seems surreal, being on the mortgage free wannabe board, like I'm now more serious About clearing the mortgage than when I was on the debt free wannabe board.
The aim in my head is to clear it in 5 years, but we'll see. :j

It is exciting isn't it - I am slightly envious but also plan to follow your example in due course .

tattycath

It's been a bit hectic tonight.
Before it got hectic I did manage to buy an extra large cooked chicken for £1-ideal for a few meals.
4 Chinese chicken portions for 20p
Fresh chicken nuggets for 20p
:j :j
I've been moving some money around and now have £500 in savings for emergency fund. :j

tattycath

I need to keep track on all spends this month, especially grocery spends. I've buried my head pin the sand for far too long about how much we spend. The only way I'm going to clear this mortgage is if I get on top of things.

Today, so far, I have spent £3.75 for hospital parking. I found £1 on the floor -so I've only spent £2.75. Not planning on spending any more today.

tattycath

peaceandfreedom wrote: »

Given all that's happened lately, I would be inclined to build up the emergency fund first. Once the money is gone against the mortgage you can't get it back.

That's what I plan to do when I'm finally debt-free, build up a fairly hefty emergency fund before tackling the mortgage. That way I know I've got something to fall back on.

thanks p&f, you're right, I should sort the emergency fund first, but I'm going to try and organise it simultaneously at the moment-as I have money in various pots that I can use in an emergency, but not an official reserve pot.


It is exciting isn't it - I am slightly envious but also plan to follow your example in due course .

I am so excited. I've put my suggestion forward to Mr tc and he's on board with it so its all systems go.

tattycath

Tilly_MFW_in_6_YRS wrote: »

Hi, hope life is calming down and will definitely be following you x x x

Tilly

I'd like to say life is calming down, but there have been a few hiccups with various things going on and on going.
I've been so inspired by your journey, it's really spurred me on to start my journey.