Quest for Financial Freedom

Zola.

Just back from honeymoon!! What a time away...

I have setup a standing order for £350 to be filtered into another account on the 1st, then the intention is for this to be sent off every 4 months as a single overpayment. We'll see how that goes. Each £350 is a month off the mortgage, so its very motivational to see the time we are getting back, each payment closer to freedom!

My Mrs' car died, so we just bought a new car, as she needs her own wheels for work. We went for a BMW 1 Series M Sport, from 2014. Its a real treat, but quite expensive. Hopefully it will last us for a long time.

As a result I may need to drop down the S&S ISA investments every month from £250 to £150 perhaps, need to play with the numbers a bit to see, as we want our current account to grow again after the heavy hits it's had recently.

My car is getting on also, so I have to start thinking about replacing it, hopefully it gives me another year or so!

Zola.

After some thinking I have decided to leave the S&S ISA DD as it is for now at £250. I am keen to stay focused and on the path and see how we cope. Hopefully we will be smarter with cash with groceries etc and build up the joint account again.

Will be strange to see the car payments begin, £220 a month for 3 years and thats it fully paid off, after a £7000 deposit. Its a lovely car, but a lot of money.

When my old car eventually dies, maybe we will try to survive on one car for a while, or else I will replace it with something not quite as extravagant.

Back to work like it was before, nothing has changed really!

£350 pinged to overpayment account, will be a few more months before I can send that off as a lump sum..

Zola.

I have marked out the main areas where our money is spent. Can anyone see room for improvement anywhere, things I am not thinking about, etc ?


Typical Monthly Budget

Investments - - - - - - - - - - - - - - - -250
Mortgage Payments - - - - - - - - - - - 627
Car Loan - - - - - - - - - - - - - - - - - - 219
Mortgage Overpayment - - - - - - - - - 350
Life Assurance - - - - - - - - - - - - - - --76
House Insurance - - - - - - - - - - - - - --30
Electricity - - - - - - - - - - - - - - - - - - -32
Sofas - - - - - - - - - - - - - - - - - - - - - 60
123 Bank Fee- - - - - - - - - - - - - - - - --5
Internet- - - - - - - - - - - - - - - - - - - --33
Gym- - - - - - - - - - - - - - - - - - - - - --50
Rates/Council Tax- - - - - - - - - - - -- - -80
Socialising/Eating Out/Takeaways - - - 100
Groceries - - - - - - - - - - - - - - - - - - 240
Stove Logs - - - - - - - - - - - - - - - - - -20
Car Fuel- - - - - - - - - - - - - - - - - - - 160
Oil- - - - - - - - - - - - - - - - - - - - - - - 30
Cars Bills Averaged Monthly- - - - - - -200

Total 2562

After pension contributions and some saving, household income circa £3200

Zola.

I have been lazy at updating! I have been on here every day and reading lots though, being influenced by lots of interesting people :beer:

Frugal Wins:

• Most of the Christmas shopping is done, except for my wife - almost sorted! She wont tell me what she wants, we are both pretty content as is... which makes it tricky.
  
• Bulk cooking for the week pretty much sorted - slow cooker and a large pasta bake on the go. Grocery spend on point
  
• Our house tidiness is taking shape - clutter has been significantly reduced - the book "The Joy of Less" is having a positive impact, a little more work to do!
  
• One more pay day and I will be able to take another £1000 off our mortgage via overpayment

Frugal Fails:

• My fridge died last week, had to replace it - £160
  
• I am very tempted to buy two new radiators in the house for the hall way and kitchen to make it warmer - I haven't bought these yet, they would set me back £200+, but I am very tempted. The radiators I have in those rooms are old and aren't really powerful enough.
  
• I am tempted to buy bitcoin, possibly £200 and just leave it for a year or two, I know this is probably insanity, but it is tempting
  

Last week of work and then we break for Christmas, bring it on!!

Zola.

I made a second overpayment on the mortgage this morning of £1,100. My new balance is £119,300.

Another 3 months off the standard mortgage time, now totalling 7 months saved from future payments.

Once I get that under 100k every £1k is 1% closer to being mortgage free!

Zola.

Happy to say I made an overpayment on the mortgage today, another £1500 shipped off. Balance is now down to £116,000. A year off the standard mortgage time now too

I am itching to get into the 5 figure club, but its a while away yet...

£1500 also sent to car debt - grand total now down to £4000, I am targeting for under a 1 year payoff (was originally a 3 year loan)

£800 topped up to S&S ISA this month also (usually £300), its been a good month!

In other news I am going to be a dad in the summer, which will be a massive game changer!

Zola.

The car loan is now down to £972, I did a few more aggressive overpays.

I will have it fully paid off next week when I get paid, that will free up £220 a month !

No mortgage overpayments sadly for a little while. My wife is due to give birth in the next month or so! Cashflow will need a reevaluation as she will be off about a year.

Zola.

I have just made a call to pay off the rest of the car loan, the end settlement figure was £977. The car is now 100% paid off! We paid a 3 year loan off in about 8 months with aggressive overpaying.

That will free up a nice chunk of £220 a month going forward, which will be a welcome boost.

I am happy man today! :beer:

It has reinforced in my mind that

- Consumer debt sucks, and must not be done again (seeing the interest going up every day was annoying) I have a different mindset on borrowing now, never again if we can avoid it. The next car we buy wont be as fancy also.

- Further saving and reducing mortgage balance can be done with deeper focus and determination

Its a small little weight off our shoulders knowing we have reduced that monthly outgoing. I cant imagine how it must feel to have the mortgage paid off... Only another £115,000 to go :rotfl:

Zola.

Haven't updated this in donkeys, but maybe i will be better in 2019!

I have started this year off productively:

- £1100 mortgage overpayment, new balance is £112,000.

- Mobile contract finished, moved to a monthly sim deal... now a tenner a month.... £24 extra saved each month

- I have taken that saving and upped monthly mortgage payments each month by a further £25....just to chip away at it a little more. That alone saves an extra year and 2 months of mortgage paying time, for such a small amount of money!

Petronisoup

Happy new year, great job on the overpayments!