Drip feeding...

edited 28 September 2017 at 8:16AM in Mortgage-Free Wannabe
91 replies 10.6K views
wildesavingswildesavings Forumite
176 Posts
Sixth Anniversary Combo Breaker
edited 28 September 2017 at 8:16AM in Mortgage-Free Wannabe
Updated in bold August 2017 with goals for the next year!!!!

Starting at Aug 2017 - £92441.
Goal to be 80,000 in August 2018
TARGETS
September : Goal - £91400 Actual balance - £91366 (£34 ahead)
October : 90,360
November : 89320
December : 88,280
January : 87240
February : 86200
March : 85190
April : 84150
May : 83110
June : 82070
July : 81030
August : 79990 :beer:

I've been toying with the idea of starting a MFW diary for a few weeks and I've finally decided to bite the bullet. DH and I (plus 3DD's 12,8,2) were very much geared up to getting this mortgage gone as soon as possible but need to replenish our EF first as DH is the only earner and he's just had 4 months off recovering from surgery.

So knowing it would take 4 months to build up our EF again then we'd aim to start on the Mortgage.... well that was the plan. Last week our heating system completely packed up and needs replacing at a cost of £3900 :eek::eek::eek::eek: So with our CC 0% on purchases for 24 months it looks like we're starting our MFW journey with the most CCdebt we've ever had.

MD today at £103,650 fixed for another 20months @ 5.37% with 19y8m left on the term! House is worth about £265k No way do we want to be paying it off in 20 years!!- huge charges to get out of the fix of £6000 :( So we'll stay put for now. Budgets are set, bills are all compared and on the best deals and we're pretty much agreed on our budget. I would love to have the mortgage down to under 90k by the time our fixed deal is up in April 2017.

Until the EF is back up to £5k and the CC paid off any MFWing will be anything I can make, sell, save and squeeze from our monthly budget to drip feed into the mortgage. ... But I like a challenge. We already overpay by £100 within our DD so don't even feel that but it's really making a difference :j

Ideally we want the mortgage gone in 10 years. To achieve that we need to find an extra £250 per month to over pay - OP'd by £400 in Aug before the boiler went pop :mad: but from now on its a lot harder to find anything to cream off the top.

Let the challenge commence. :beer:

Challenges to aim for by 30 April 2017
1. Clear boiler debt from CC before 0% is up.
2. Get EF back up to £5000 - (2600/5000)
3. Get Daily interest below £15 :eek: (£15.25)
4. Average £100 extra OP per month
5. Get Mortgage Under £100k by April 2016
6. Get Mortgage under £90k by April 2017
Started my MFW journey in August 14 : £103,650
2019 : £77,900
«13456710

Replies

  • wildesavingswildesavings Forumite
    176 Posts
    Sixth Anniversary Combo Breaker
    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 3
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 0
    Partners monthly income after tax....... 3100
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 3100


    Monthly Expense Details

    Mortgage................................ 821
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 183
    Electricity............................. 93
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 43
    Telephone (land line)................... 20
    Mobile phone............................ 55
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 30
    Internet Services....................... 15
    Groceries etc. ......................... 500
    Clothing................................ 50
    Petrol/diesel........................... 100
    Road tax................................ 0
    Car Insurance........................... 0
    Car maintenance (including MOT)......... 75
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 130
    Other child related expenses............ 75
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 50
    Life assurance ......................... 25
    Other insurance......................... 25
    Presents (birthday, christmas etc)...... 75
    Haircuts................................ 30
    Entertainment........................... 50
    Holiday................................. 125
    Emergency fund.......................... 280
    christmas............................... 80
    Total monthly expenses.................. 2942.12



    Assets

    Cash.................................... 3000
    House value (Gross)..................... 265000
    Shares and bonds........................ 0
    Car(s).................................. 9000
    Other assets............................ 0
    Total Assets............................ 277000



    Secured & HP Debts

    Description....................Debt......Monthly...APR
    Mortgage...................... 103500...(821)......5.37
    Total secured & HP debts...... 103500....-.........-


    Unsecured Debts
    Description....................Debt......Monthly...APR
    CC.............................3900......30........0
    Total unsecured debts..........3900......30........-



    Monthly Budget Summary

    Total monthly income.................... 3,100
    Expenses (including HP & secured debts). 2,942.12
    Available for debt repayments........... 157.88
    Monthly UNsecured debt repayments....... 30
    Amount left after debt repayments....... 127.88


    Personal Balance Sheet Summary
    Total assets (things you own)........... 277,000
    Total HP & Secured debt................. -103,500
    Total Unsecured debt.................... -3,900
    Net Assets.............................. 169,600


    Created using the SOA calculator at https://www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using other browser.
    Started my MFW journey in August 14 : £103,650
    2019 : £77,900
  • wildesavingswildesavings Forumite
    176 Posts
    Sixth Anniversary Combo Breaker
    Above looks a little off but my DH gets paid 4 weekly it works out to 3400 pm
    Started my MFW journey in August 14 : £103,650
    2019 : £77,900
  • Welcome to MFW diarydom Wildesavings:hello:

    Wishing you good luck as you begin your journey. You're in good company!!

    Thistle;)
    Mortgage at end 05/2007: £90200
    Mortgage at end 08/2018: £71646 paid £18354 (20.5%)
    MFD: :eek:Original:05/2042:eek:
    Car Finance: £8225 : £6392 (22.2% paid off)
    CC Debt (0% until 06/2020): £5640 : £4400 (21.7% paid off)

    Age of Money at 31/08/2018 = 23 days

    YNAB is changing the way I live my life....and spend my money!!
  • SeanymphSeanymph Forumite
    2.9K Posts
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    ✭✭✭✭
    Hi there and welcome.

    Well done you for starting - I wondered, reading your SOA if you could perhaps do a little something and target that at the mortgage? I know that I couldn't do much before mine went to school - but you have such little wriggle room, even if it was some ebaying or a paper round on a Thursday or something it could be something targeted directly at the mortgage?

    I keep toying with taking on more work - I've just left two jobs, and a deadline for applying for a replacement one is today (I do several part time, some from home) - I don't think I'm going to though.

    Anyway - just at thought - Good Luck.
  • ourcornercottageourcornercottage Forumite
    1.5K Posts
    ✭✭✭
    Hi

    Good luck your figures are similar to ours and if you take a look at my diary I had a similar plumbing disaster earlier this year so feel your pain,

    We have similar value house and similar sized mortgage (both are a little higher for us) and only 1 little person but it should be quite a good comparison on SOA so here goes.

    If you were looking for comments on SOA

    I'd say your house insurance is too high unless you have some prized assets!

    We spend £200 per month on groceries on the 3 of us andeat really well, take all packed lunches etc for this.

    Your monthly water charge is same as our quarterly one! We have a meter but it's a big difference.

    You could perhaps review your mobile, TV, broadband, phone packages when they are due as they are a little high but not OTT. I just rang sky the other day and got 40% off for 6 months cos I said I might leave. (I had no intention of leaving!)

    The others are all relative, if you think you need to spend x amount on y then you do. Could you shave a couple a pound a month from clothing, presents, Christmas, haircuts (parden the pun!) you get what I mean. Make each thing last a bit longer, shop around more for gifts, go an extra week between haircuts etc etc etc

    I saved annually about £1000 by just reviewing every bill. It look a few hours but was really worth it :-)
  • shangaijimmyshangaijimmy Forumite
    3.8K Posts
    Part of the Furniture 1,000 Posts Name Dropper
    ✭✭✭✭
    Shiny new diary... Woo!! You'll be in the 99k's before you know it with a diary!
    MFW: Was: £136,000.......Now: £66,357.66......
    Mortgage Neutral Deficit: £49,928.91... Mortgage Neutral Savings: £16,428.75
    MFiT-T5 #8 - £20,682 of £23,100 (89.53%)
    1% Mortgage Challenge - £645.54 of £705
  • Cariad71Cariad71 Forumite
    199 Posts
    Ninth Anniversary 100 Posts Combo Breaker
    Hello and welcome!
    What about child benefit? house insurance seems high for contents. Also, I think you could be creative with grocery shop and cream some savings off here. Good luck😀
    Starting balance £173,000 (Sept 2012) interest only so if we do nothing We will owe this at the end of the term😁😁
    Balance as of Sept 2014 £165,803
    Balance as of Feb 2015 £163,360
    Balance end of July 2015 £159,050
    Balance as of Jan 2017.... £138,033:j
  • Money saving old style board is great for hints and tips to stretch your monthly money.

    I just lived on £86.48 groceries in August (only me in household) by using up my freezer food and bottoming my cupboards, eating every last tin. Now I can replace with own brand food to save save save!!!

    Oh and buy Stardrops! You can't be a money saver without a bottle of Stardrops under your kitchen sink apparently!!!!! :rotfl:

    Make it fun and you'll walk it!!

    Thistle x
    Mortgage at end 05/2007: £90200
    Mortgage at end 08/2018: £71646 paid £18354 (20.5%)
    MFD: :eek:Original:05/2042:eek:
    Car Finance: £8225 : £6392 (22.2% paid off)
    CC Debt (0% until 06/2020): £5640 : £4400 (21.7% paid off)

    Age of Money at 31/08/2018 = 23 days

    YNAB is changing the way I live my life....and spend my money!!
  • wildesavingswildesavings Forumite
    176 Posts
    Sixth Anniversary Combo Breaker
    Wow - so many replies!

    Thank you everyone. Some really helpful comments - I've spent the last 4-5 weeks going through our finances with a fine tooth comb but some how managed to miss house and contents insurance :o And judging by the quote I've just got we haven't shopped around for that for a very very long time. I'm so cross with myself as I always shop around for car insurance but just never thought about the house insurance. But I'm paying that (£99) upfront so £50 will now go back in the pot for OP per month.

    Groceries are one area we just seem to haemorrhage money from - There's 5 of us and 3 of us are Gluten intolerant. So cheap fillers like pasta and bread are out but we're eating plenty of rice, potatoes, veggies and small amounts of good meat. I love to cook and making sure we're well nourished is important to me too :) I'm experimenting with making my own GF bread and it's going well. Just that the children want to devourer it as soon as it leaves the oven, so just how much we're saving is yet to be worked out. But a tiny GF loaf costs £3:eek: in the shops and I can make 3 loaves at home for that. :money:

    I feel that the SOA isn't really showing exactly what we're doing with our money. The holiday, clothes, haircuts, nursery/school trips, car, EF, presents, entertainment and Christmas amounts are all SO into savings accounts so that we have the money we need saved up in advance. So in all we're actually saving around £830 of our money each month for future expenses. If the balance doesn't get used up I'll cream it off and pay it off the mortgage :cool: That's why it looks so tight I suppose - We've assigned it all to something already. This way we avoid any real headache moments if things ambush us and we're not 'hoping' to afford a cottage with the children next summer holiday we're 'planning' to afford one. If something ambushes us above and beyond our EF then the holiday will have to go but at least there's extra money in the pot. It's just a real shame that we'd just spent 4 months dipping into our EF to cover sickness when the CH system packed up - but hey ho such is life :rotfl: We've been home owners for 15 years (1st house purchased at 18) and this is the first boiler we've had to replace, so it's probably our turn. :rotfl:

    Thistle - I'm off to google 'Stardrops!'

    Cariad - We're not entitled to any child benefit as DH earns £50-60k depending on OT :(

    Shanghijimmy - I really hope so!

    OCCottage - I've been reading your diary as we've got similar amounts etc - lots to think about!

    Seanymph - I keep thinking a job would be great but with DH working incredibly antisocial shifts and 3 children in 3 different stages (secondary, primary and preschool) DH and I both agree that what I do at home is invaluable. :o It wont be forever (although I do sometimes wind DH up by calling myself 'retired' :rotfl: ) but it will be for at least another 3 years. I'm quite content being a 'housewife' 80% of the time but after 12 years I'm seriously beginning to look forward to the next chapter. I've began studying to get my grades up so that I can apply for a course in my preferred profession in 2 years time.
    Started my MFW journey in August 14 : £103,650
    2019 : £77,900
  • SeanymphSeanymph Forumite
    2.9K Posts
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    ✭✭✭✭
    Oh I wasn't saying you 'should' work - I haven't 'worked properly' since mine where one and two.

    But I have always done a bit from home, which suits me (actually I took a year off a couple of years ago and owned a shop for a while - but mostly I have worked 'from home).

    I wasn't judging at all - just thought it might be nice to have a little amount going on regularly.
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