A Journey of Many Pounds Starts With a Single Penny 20 April 2016 at 6:05PM in Mortgage-free wannabe 554 replies 62.7K views

LadyGnome

Like many I have lurked for some time popping up on people's diaries with comments but I've decided it's time to come out of the shadows and start my own.

Let me introduce myself. I am 46, live in London with MrGnome and two school age children. We have been MF before but when we decided to move we kept the MF house as a BTL and bought a project to do up. Mr Gnome does up properties as a part time business so he did a back to the brickwork renovation and extension on the house which is now finished (mostly ). I work full time as the main earner.

The combination of the renovation and house price rises mean our LTV is below 50% so our interest rate is pretty good (2yr fix at 1.74%).

I won't be making huge overpayments as we currently pay school fees as well as the mortgage. Additionally I have to balance frugality with enjoying life with the children.

As the mortgage is large
£268,261 today
I am focussing on smaller goals which I will put in the next post.

LadyGnome

2Medium term Mortgage - COMPLETED
Pay off 40 in 40 i.e. pay off £40K in 40months - this includes the normal monthly repayments. I started this when the mortgage was at £290K to get it down to £250K. Psychologically getting the mortgage under 1/4 Million feels important.
27 May 2017 Month 31 £40265.71/£40000 - COMPLETED

Shorter Term
Mortgage
1. Reduce to £259K by Nov when current fix expires - Done
2. Reduce below £248K by July 2017






Big Holiday Fund
Increase to £1200 by end of May Done

Education / Children
Reconcile account when music lessons paid for by end of 1st week of May - Finally able to do this in mid July
I have a number of possible scenarios of how much money might be needed for the children over the next few years over and above what we spend now. They vary from a realistic £11K to a mad £40K. I have labeled them Goals 1-4 and divided them up into 5% blocks.
10% Goal 1 - £1124 Done
10% Goal 2 - £1618 Done
15% Goal 3 - £1686 Done
20% Goal 1 - £2248 Done
10% Goal 3 - £2354 Done
15% Goal 2 - £2428 Done
25% Goal 1 - £2810 Done
20% Goal 2 - £3237 Done
30% Goal 1 - £3372 Done
15% Goal 3 - £3531
35% Goal 1 - £3934

LadyGnome

So far this week
Monday found 1p (hence the title of the thread):)

Reconciled the account I use for saving up for annual bills and split the spare cash between mortgage, holiday and children funds

Consolidated my cash ISA's into one paying a reasonable rate

Renewed my mobile phone contract cutting £15 pm off (£5 pm to each fund)

Wrote a letter to my bank challenging charges for a service I don't think I use (Safe Custody) my mortgage isn't with them so I don't think they are holding any deeds for me. Asked for details of why they are charging, where I agreed to it and asked for a refund with interest and compensation (worth a try )

Claimed the rewards that had built up on my current account of £39 and put £13 in each fund.

Tues found 31p (3 separate finds of 1p, 20p and 10p:T)
Today - I started my diary

brizzledfw

Well done on starting the diary..best of luck!

LadyGnome

Thanks
This is one place where my financial planning, change counting and spreadsheets seem totally normal and mainstream.:rotfl:

LadyGnome

They were handing out free [email protected] softbakes at the station this morning so I bought a smaller breakfast at work and had one for a mid morning snack.

Goal for next week - make breakfast and lunch to take to work.
(One child has been unwell this week so lack of sleep has made making a packed lunch feel like a huge task - luckily he is on the mend)

My current account is looking rather forlorn and I don't get paid until Monday so no unbudgeted spends allowed this weekend.

LadyGnome

Yesterday I opened a NWide Reg Saver account that pays 5% for the year (I am already a customer). I can only put in a max of £500 pm so I will use it for saving up for the children. Once I have fed in the money I have already saved c£1400 I don't think I will hit the £500 pm limit (unless I win the lottery!)

LadyGnome

Getting my hair done today. I've already put the money aside but will pay using my CC to get the cash back and keep earning interest on the money until the CC bill needs paying.

newgirly

Best of luck with the new diary

LadyGnome

newgirly
Thanks very much.

Haircut was £3 under budget so that will be allocated to the three pots tomorrow when I do the pre-payday sweep up. The night before payday I move any cash still left in my current account to the three pots (mortgage, holiday and children) so I don't just fritter it away.

EatingTheElephant

Popping in to say hi and wishing you good luck