A Journey of Many Pounds Starts With a Single Penny

LadyGnome

Thank you bit_by_bit. I have long term goals that are huge and scary at times and seem a long way away. So it helps me to have medium and short term milestones on the journey. I find it really hard to stay motivated for a goal that might take 5 years but can happily focus on 10 x 6 month goals.  I am also a bit competitive so if the goal is near enough to be almost manageable I will stretch myself to get there more quickly. 

LadyGnome

Oops been AWOL a bit longer than I thought due to work getting insanely busy for a while. 

All good here. 

I have been using my time wisely as I have been reviewing my pension options as my main pension pot is still sitting in my former employer’s scheme. As it is a money purchase plan I think I will probably move it to a SIPP with the same provider. I just need to double check there are no additional benefits attached that I would lose. The problem with leaving the pot where it is, is that it is a manual process for me to make contributions.   I also sorted out a few other bits and pieces and checked I had up to date logins. 

The MFW is progressing well. I will post updated figures shortly. 

LadyGnome

August Goal Update
Goal 1
Mortgage below £195,000 - £1,300.15
Goal 2
Invest £300 in Stocks and Shares ISA (as the market is volatile I am using an investment goal not a value goal) - £384/£300 
Goal 3
Save £400 in School Fees buffer - £384/£400
Goal 4
Save £500 in DS2 Uni top up fund - £384/£500

Good progress on the goals. I am also saving for a couple of big expenses which will be covered at year end. 

Busy_Mee

Great news on the contract LadyGnome and very impressed by the beekeeping. SuffolkLass over on the debt free wannabe thread also keeps bees x

LadyGnome

Thank you Busy Mee. I will pop over to SuffolkLass’s diary. We managed a small honey harvest despite being a new colony so we have 2.5 jars of own honey. It tastes of blackberries which is the main summer nectar crop around here. I do find it strange that we live in London but keep bees. 

LadyGnome

Sneaking back in for an end of year round up. 

I have been MSEing but COVID and WFH has made everything feel like GroundHog Day. 

Overall things have gone to plan. The mortgage is over £16K lower and now starts with a 1. All the big annual bills were saved for and covered. I have topped up all the saving pots, in particular, I have rebuilt the income buffer to a level where I feel more comfortable. 

I have a 3 day break between contracts as I finished one on Thursday and start the next one tomorrow. 

I am not going to set specific goals at this stage other than keep doing what you are doing. The next big milestone is April as that is the last school fees payment for my eldest.  My plan is to repurpose the money for the mortgage and other longer term savings goals. I have a plan to pay off the mortgage by mid 2027 which I am slightly ahead on. That requires me to step up the monthly net mortgage reduction from £1300 to £2000 from May (ie the balance the day before the next payment is to be that amount lower than the same day on the previous month).  I will set my goals in April in anticipation of that change. 

Busy_Mee

Nice to see you back LG and that all is well.  Is your eldest planning to go to university in September ? Just wondering whether you would need to recycle any of his school fees into funding that ?

LadyGnome

Thanks BusyMee. He is going to take the loans but won’t qualify for the full maintenance loan. However, I have already set aside enough money to more than cover the parental contribution for the next 3 years.  We will give him more than the minimum but not so much that he is flush with money compared to the majority of students. 

I am already saving up for DS2’s Uni costs in 4 years. I know I could knock a chunk off the mortgage and fund them out of income but psychologically it suits me to know that the cost is covered so I can focus on other things. 

Busy_Mee

Very sensible. We had a total of 7 years where we funded our two at university. Luckily there was only one overlapping year. We also went down the fund just enough route, with maybe a bit extra . That encouraged them to get part time jobs when they were able, which gave them invaluable experience. They are both good with money now, can budget and know where to source things cheaply 

LadyGnome

I think having to spend their own money that they had to work for focuses the mind wonderfully