Our 'Mortgage Free By Forty' Dream - Truly Madly Hannah

trulymadlyhannah

newgirly wrote: »

Hi Hannah, I wanted to pop and wish you all the best with the new diary. I did notice on your soa that you don't have any child benefit listed?
I have used approved foods in the past and it can be worth it, if you shop in aldi then it may not always be cheaper as it is often named brands discounted, but I have found things like casserole mixes etc. Much cheaper

Anyway all the best and I enjoyed reading your blog

Thanks for stopping by. I will have a look at the casserole mixes and similar and see if i can get some family to order with me to try some of the things out.

We do get child benefit and child tax credit, I combined all the different incomes together, partly because I am a bit ashamed of the amounts of tax credits we actually get (but I did work full time from being 17, and will return to work when the children are in school, so maybe i shouldn't be so hard on myself)

I was just about to get the breakdowns when I realised that I didn't added my working tax credit to my the SOA, and its £68 per month, and my original SOA was down by £66 ( £52 plus the £10 I missed for cubs) So all my original amounts were okay and didn't need amending!! and I have £2 spare from my budget.

It was a bit of a phew moment really, because i had wondered how I hadn't realised I was nearly £70 a month down!!

To make things easier I have done a new SOA:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 4
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 1149.18
Benefits................................ 914.8
Other income............................ 247.2
Total monthly income.................... 2311.18

Monthly Expense Details
Mortgage................................ 675
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 114
Electricity............................. 50
Gas..................................... 41.5
Oil..................................... 0
Water rates............................. 41.5
Telephone (land line)................... 15
Mobile phone............................ 32
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 10
Groceries etc. ......................... 250
Clothing................................ 100
Petrol/diesel........................... 25
Road tax................................ 25
Car Insurance........................... 25
Car maintenance (including MOT)......... 68
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 6.5
Contents insurance...................... 6.5
Life assurance ......................... 0
Other insurance......................... 22
Presents (birthday, christmas etc)...... 95
Haircuts................................ 0
Entertainment........................... 10
Holiday................................. 120
Emergency fund.......................... 20
Household fund (decorating, allotment).. 120
Total monthly expenses.................. 1884.12


Assets
Cash.................................... 0
House value (Gross)..................... 115000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 117000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 97400....(675)......0
Total secured & HP debts...... 97400.....-.........-

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


Monthly Budget Summary
Total monthly income.................... 2,311.18
Expenses (including HP & secured debts). 1,884.12
Available for debt repayments........... 427.06
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 427.06

Personal Balance Sheet Summary
Total assets (things you own)........... 117,000
Total HP & Secured debt................. -97,400
Total Unsecured debt.................... -0
Net Assets.............................. 19,600

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

Our min mortgage payment is 675 which is what Ive entered on the SOA, but we overpay by £425, and Ive altered the direct debit to £1100, because otherwise I would probably find an excuse to spend it! So we have £2 unbudgeted!

Their is a little more flexibility that what the SOA shows. The tax credits are paid 13 times a year, so we get 1 additional payment of £914.80. Historically we haven't actually 'seen' that amount as it was soaked up on extras during the year, but this year we have stuck to our budgets and are buying me a DSLR camera for my 30th birthday in July, and we have decorated the girls room and bought them new bunk beds and a desk.

The child benefit is also paid 13 times a year, shown in 'other' incomes 247.20.... That is paid into a separate joint account and we use that specifically for food, which helps me keep track of our food budget. We use the full 247.20 every four weeks on food, so no extra payment, but i couldn't find a way to show that very well on the SOA.

The only think I can think that I haven't mentioned is that my lovely MIL occasionally arrives with bags full of shopping, normally basics and freezer stuff. And the children's great grandma regularly sends them enough chocolate biscuit to feed the street!:rotfl:

I'm glad you liked my blog Its a bit unorganized and not all the links work. Ive been scared to share our 'mortgage free' ways before for fear of being judged, and people thinking our children are missing out. Recently Ive realised I spend most of my days making such they don't miss out, and its really the simple things that matter like love, time and experiences. Its more a record of our memories, but if it helps one person then its worth it, i don't make anything financially from it. I am looking forward to reading your diary.

lulabelle1 wrote: »

Best of luck with your MF journey. I'm truly impressed and inspired with your OP's... It actually makes me feel ashamed of my current spends, which is good as it might kick me up the backside to sort myself out. well done and good luck!

Glad your inspired, but please don't feel ashamed, every pound helps! I have the feeling that we might have to decrease our overpayments as the children get older, unless our income increases too. Your diary is on my list to read Thank you

Beckyy wrote: »

Hello!

Looking forward to reading your diary. We have chickens and they're great!

Thank you, I am really looking forward to getting chickens, most of my friends think im mad :rotfl:! We aren't allowed a cockerel on our allotment, but DH as agreed we can get a incubator and some fertile eggs so we can hatch some chicks ourselves. I need to do a lot of research first but the children will love it! I am looking forward to reading your diary too, good luck!

Wow that turned into an essay!

SueP19

Don't be ashamed of your working tax credit, you and your OH pay your dues. Xx

newgirly

Great news you have balanced the books already :T totally agree, there is no shame in getting tax credits and child benefit, you are raising four future tax payers after all :rotfl:

Have you had a look on on the up your income board? Lots of ideas for earning whilst being at home, surveys, freebies etc. I used to do a lot of that when my three were younger and I was a sahm.

trulymadlyhannah

SueP19 wrote: »

Hiya if you have a smart phone I have found a fabulous app called "my supermarket" great for comparing

Approved foods- not tried I did look but found it was things I wouldn't buy anyway

As for your budget shave the pressie fund :rotfl::rotfl::rotfl:

I dont have the app, but ive used the online website before for a few things, the app sounds good, I will have a look!

I know our pressie fund sounds huge doesnt it! :eek: Its split into 2 seperate accounts £20 for others and £75 for our family.

For the 6 years prior to 2014 we didnt really buy for others at all, but we occasionally made things if we could. Now we save £20 per month (£240 per year) We have 6 nephews and nieces and give them £10ish for birthdays and Christmas - £120 - a lot really, but for years we really didnt do anything, and they are aged 8-16 so are a bit older now. I dont really have any family to buy for, but we buy for my DHs parents and his grandma £10 each, Birthday and Christmas so another £60. The remaining £60 is spent on cards, wrap, wedding presents / baby showers / childrens birthday presents for partys ect. My eldest DS has had 4 parties since Jan :eek:, but we do 'recycle' unwanted gifts we recieve too.

The £75 for us is fairly new! It works out at £75 per person for birthdays and Christmas, because there are 6 of us.

We try to limit to 4 gifts at Christmas using the "want, need, wear, read" approach which helps, but DS's christmas list spanned 3 pages last year :eek:

For birthdays, it seems to vanish even quicker. And normally covers a party / day out, a present and a cake.

The two eldest want a party for their next birthday, and all their class seem to be doing partys at local venues at £10 per person, then inviting 20+ people :eek:. That wont be happening, but we will probably host a smaller party at home, with a buffet and games.

I made these for my DD's 5th birthday, and my nephews 11th birthday. The rainbow cake cost about £18 to make :eek:, but was huge and the minecraft one about £12, we could have got a shop bought cake much cheaper, but its a nice tradition, and they all love their special cakes! I am still trying to justify it by saying im saving money by making it myself instead of asking a cake baker :rotfl::rotfl:

DH and I didnt used to buy more than a small token gift for each other at birthdays and christmas. I think we would both be happier lowering our portion, and the younger ones dont really need so much, we try not to spend for the sake of spending.

I would love to hear how others with young children make it work, and its nice to reevaluate where it goes. Ive been reading a few other diarys and our gift amount looks huge!

SueP19 wrote: »

Don't be ashamed of your working tax credit, you and your OH pay your dues. Xx

I try to think of it like that

newgirly wrote: »

Great news you have balanced the books already :T totally agree, there is no shame in getting tax credits and child benefit, you are raising four future tax payers after all :rotfl:

Have you had a look on on the up your income board? Lots of ideas for earning whilst being at home, surveys, freebies etc. I used to do a lot of that when my three were younger and I was a sahm.

Thats a good way to look at it :rotfl:

I havent yet, I am thinking of trying to monetise my blog, or set up in business designing websites/logos or prints when the littlest is older (I did briefly before I fell pregnant, and it was going well)
I dont get a lot of time at the moment, the littlest objects loudly to being put down at the moment and thinks sleep is for the weak.:rotfl: I will admit it, I am weak! :rotfl:.
I will have a look, thank you

I found out what Tilly Tidy is, yay! ... but I think ive been doing it in reverse! Instead of tidying my bank accounts, ive been tidying my mortgage account down to the nearest round number. I might give the other way a go, I bet its so satisfying making small overpayments regularly.

newgirly

It's a while since mine were little (although it seems like about 2 weeks ago :eek:) you forget how hard it can be to get anything done somedays

Your cakes are amazing, I want to make a rainbow one now for my dds birthday, did you use the rainbow cake pan from that high street store that starts with lake?

lulabelle1

Where to start....

Your cakes are amazing
You have a beautiful family
Your website is fab

And, what a wonderful focused attitude too. I really admire you.

You've got a real creative talent - I'm sure that once you return to work you could earn some great money and get that mortgage paid off even quicker!

debtfreeoneday

Hello, nice positive feel in here and I share your thinking, so will subscribe to keep up with you.

One thing I do a fair bit of is surveys when kids are in bed, just to build up present funds.

trulymadlyhannah

newgirly wrote: »

It's a while since mine were little (although it seems like about 2 weeks ago :eek:) you forget how hard it can be to get anything done somedays

Your cakes are amazing, I want to make a rainbow one now for my dds birthday, did you use the rainbow cake pan from that high street store that starts with lake?

I baked each layer separately and used one tin. It took ages to cook but my oven is unreliable and if I use more than one shelf, the top shelf doesnt cook! I did write a (rather waffley) guide (here) with a few photos if that helps.

That cake tin sounds awesome, the lake place is amazing, and i could probably spend our full months food budget just in one visit. I will have to have a look for that tin! This could be dangerous...:rotfl:

lulabelle1 wrote: »

Where to start....

Your cakes are amazing
You have a beautiful family
Your website is fab

And, what a wonderful focused attitude too. I really admire you.

You've got a real creative talent - I'm sure that once you return to work you could earn some great money and get that mortgage paid off even quicker!

Aww, thank you Your comment did make me cry! I have honestly been hiding our mortgage journey for so long now, its so good to be able to share, especially with people who dont think I am crazy! I told one of my friends a few years ago, and she said she was doing the opposite, lowering the payment as much as she could to have more money now :eek:

I am really looking forward to returning to work, being a sahm is so rewarding but equally exhausting some days.

I always have moments of self doubt and at least once a month I ask my DH if we are doing the right thing... I hope we are, and I hope that the children will appreciate having more when they are older, and not feel like they missed out on expensive toys/holidays now. Looking back to my childhood, I remember the joy of being together and the simple things like walks in the woods and feeding the ducks. I dont really remember any material things.

For the last few nights I have been diary reading and I love it, so many ideas! Tonights plan is to tilly tidy, then meal plan, I cant avoid it any longer:rotfl:

newgirly

Don't doubt yourself on account of other people's spending habits as so many people are totally reckless!

Mfw'ers are still very much in the minority in my experience, it seems the norm to want to maximise spending power, conversely on this board many people seem to be working towards early retirement or the luxury of having choices when it comes to their working or family life, rather than materialistic things.

It's much easier to cut back when they are all still little, it gets much more expensive the older they get :rotfl:

trulymadlyhannah

newgirly wrote: »

It's much easier to cut back when they are all still little, it gets much more expensive the older they get :rotfl:

I thought it might :rotfl: thats half why I am so dedicated now!, because even my eldest at 6 1/2 is only just starting to realise there are lots of things to spend money on, he even browses @rgos on the computer!

I managed to complete my 6 week meal plan. We are running into the next periods money already :eek: and still have 2 weeks to go for this period! We ran over last month too so we were already behind, we had a meal out at TGIs for DHs birthday and 3 trips to mcdonalds due to illness, which run us well over our usual budget.

I am trying to stretch out whats left of our next pay over 6 weeks so it brings us back inline. I am going to do a large shop to order frozen veg, tinned food and store cupboard ingredients sometime this weekend, and only buy what we need from the meal plan. Ive also had a look at some budget meal ideas & recipes on pinterest, including a recipe to make our own tortillas, which I am far too excited about trying!:rotfl:

I tilly tidied for the first time and managed a total of £36.40 :T It was strangley rewarding to see all my various saving accounts tidied to the nearest £1 or £10, and ever penny counts on the mortgage!

Today has been very productive. Myself, DH and the children spent most of the morning and early afternoon at our allotment (with a picnic and flask:T:T) DH almost finished the base for our new chicken house, and I cleared our polytunnel and sorted half of the wood into similar lengths and moved to the otherside of the allotment, nearer to DH. Most of the 40+ lengths were 8ft or bigger and covered in woodlice and all manner of creepy crawlies! I was very brave :rotfl:

Our chicken house is a mini project, that we are trying to make completely out of recycled material.

We have managed to get all the wood given for free, and have spent hours stripping down pallets and taking the nails out to re-use. DH was bought some boxes screws for his birthday (we love useful presents!) and we have had old perspex conservatory roof given to for the chicken house roof from DHs parents when they replaced their conservatory.

DH has grand plans of adding a solar panel, and lighting / a camera too in the future, though I suspect that wont be quite as free! (Although he has already been given some battries for storage for the power!:T)

Poor DD2 (almost 3 years) cut her head open by walking infront of the apple tree swing She was okay after the initial shock and sadness, but we took her straight to see DH's mum to double check (shes a nurse) DD1 also managed to fall off the same swing while we were checking Amy over and brusied and nettled herself in the process!

Excitingly I rescued an old abandoned tyre on the way to the allotment and we are going to replace the wood on the bottom of the swing with the tyre. Hopefully it will be a bit safer!

I called to @rgos in the afternoon to buy some half price black out curtains £19.99 for the girls room. We have just decorated their room and the curtains are worth their weigh in gold if they keep the girls asleep past 5am, unlike this morning :eek: We have managed to get the curtain pole fixed to the wall while tea was cooking :j

My father called, and asked me to call in the afternoon for some plants he doenst have room for. :T He as a grow room in his huge greenhouse so he has had an early start to the growing season, and has given us some broccoli, cabbage and spinich seedlings & 30 packets of seeds he didnt need. I hope the seedlings survive as we have some frosts coming this week and my greenhouse isnt heated!

Happy Good Friday!