3653 steps to completion

I've enjoyed reading other people's threads on here so thought it was time to throw my hat into the ring and give myself a kick up the bottom with regards to my finances. Everything is manageable, just want to make sure I'm making the most of my earnings when they come in every month!

Mid 30s, wife and two kiddles (8 and 5)

Debts
Mortgage: £132,668.88
Loan: £15,000 (at 0%) - approx
Credit Card + Sofa at 0%: £2,300 - approx

(Loan and Credit card both at 0%)

Have a decent amount of savings (approx £2,000) that could be used to pay off the credit card and sofa, but at 0% there's little hurry and it's always good to have a bit of liquidity.

I've always been "OK" with money in that you can see I've got everything at 0% (balance transfers etc.) but I need to be more diligent about the pennies, and really start thinking about the future a little more.

Aim is to have the mortgage and all debts paid off by the time eldest is 18 and ready to leave home.... That's 10 years from now, or 3653 days. So one step per day towards that goal is the aim.

I'm going to try and do one thing every day that leads us further towards being "financially independent" and not paying a load of interest every day!

1 - Sorted out my online account with Santander so I can actually see how much is remaining on my mortgage!
2 - Co-Op have recently changed their login procedures on the account and I've finally got around to sorting that out too so I can see my bank account online.

Early days, but two things knocked off the list.

Few things to do in the next few days:
a) Call Santander and discuss ways of overpaying. I did ask them to send me a form for a standing order/DD, but nothing has arrived. It's almost as if they don't want you to pay off their mortgage.
b) Look into a "smart meter", are they worth it?
c) Look into changing energy supplier, that's a well overdue task.
d) Open a high interest saving account or ISA(?) so that the £2k buffer I have is actually earning a little bit while it's sitting there.
e) Do a food stocktake - work out what's in the cupboards and decide what to make from it!
f) Find out exactly how much the loan is for and when it'll be paid off (think there's still four years left on it)
g) Find out exactly how much is on the credit card.


Today is 1st September, so hopefully by the 31st September with the thought of making one step per day I'll have made 31 steps towards sorting everything out.
As of 24/11/2020
Mort: - £98,200
CCds: - £1,568.18
Loan: - £0
Savings: - £3,500.00
«13

Comments

  • Welcome and good luck.

    Well done on working out your current status and setting up some of the basics, like online mortgage account management so you can overpay :)

    MvM
    Baby Step 1 - £1k Emergency Fund - COMPLETE
    Baby Step 2 - Pay off all debts except the Mortgage - £9,326 to go
    Baby Step 3 - Save 6 months of expenses into full Emergency Fund - £4,300 to go

    Baby Step 4 - Put 15% into Pension
    Baby Step 6 - Pay off the Mortgage early
    Baby Step 7 - Live like no-one else :D
  • zcrat41
    zcrat41 Posts: 1,726
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    Hi and welcome, I like your thing of doing 1 thing per day. Good luck!
  • mirko
    mirko Posts: 264
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    Thanks zcrat41, I'm great at writing todo lists and not doing them, so this should spur me on a bit.
    -
    I've followed your diary rasputin and although I wouldn't consider myself an athlete I do intend to run a marathon in the future. An injury scuppered my last attempt once I'd got quite close to the 26 mile goal. So just gymming it at the moment. Frustrating.
    -
    Thanks guys. Hopefully an update later today with at least another one step toward the goal...
    As of 24/11/2020
    Mort: - £98,200
    CCds: - £1,568.18
    Loan: - £0
    Savings: - £3,500.00
  • mirko
    mirko Posts: 264
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    3 - Step 3, found out the credit card and sofa is near to £3,000. At least I know what target I'm aiming at now.
    4 - Withdrew £36.25 from Quidco, that can go onto making a nice savings buffer.

    Looks like with loans and credit cards we're about 18k in debt over the mortgage. It's manageable (all 0% and monthly payments can be met). And a lot of it is a car loan.

    Going to set up a savings account to get a nice approx £2,000 buffer into it so I can be reactive if something happens in the house, rather than just have less credit card debt/a lower loan.

    I feel like a plan is beginning to take shape. :)

    Much of the weekend needs to be spent tidying and shifting things to either the charity shop or online sales. It's been a while since I've sold on online auction sites.

    Few things to do:
    a) Start to transfer funds into an existing "Savings" account in Co-Op. I imagine the saving rate is terrible, but it's at least a pot to put it in before I change to a new one.
    b) List 10 things on eBay.
    As of 24/11/2020
    Mort: - £98,200
    CCds: - £1,568.18
    Loan: - £0
    Savings: - £3,500.00
  • CathT
    CathT Posts: 7,109
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    Hi mirko, t3sco do a current account that pays 5% interest for balances up to £3k, I've just applied for one for dh and me whilst we stooze some cash. I believe nationwide offer something similar too
    Feb 2024 - part 1 - £32,339 part 2 - £25,218 Total - £57,557 45 months to go!
  • edinburgher
    edinburgher Posts: 13,422
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    CathT wrote: »
    Hi mirko, t3sco do a current account that pays 5% interest for balances up to £3k, I've just applied for one for dh and me whilst we stooze some cash. I believe nationwide offer something similar too

    They do? Says 3% on their website for the current account.
  • CathT
    CathT Posts: 7,109
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    My mistake, it is 3%
    Feb 2024 - part 1 - £32,339 part 2 - £25,218 Total - £57,557 45 months to go!
  • lippy1923
    lippy1923 Posts: 1,374
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    Hi Mirko


    Welcome and good luck with your journey. I love the 1 thing a day and the daily countdown. I will be lurking and look forward to reading your progress.
    Total Mortgage OP £61,000
    Outstanding Mortgage £27,971
    Emergency Fund £62,100
    I AM NOW MORTGAGE NEUTRAL!!!! <<Sep-20>>

  • mirko
    mirko Posts: 264
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    5 - Shifted money around in my accounts so I now have one "buffer" account with £1700 in it.
    6 - Calculated that it will cost exactly 365 per month overpaying (on what I already do) to become mortgage (and debt) free within the ten years I've set out.

    -
    Todo
    a) Next thing to do (this evening hopefully) is to list six Olympic 50ps I found while clearing out the study/play-room on a well known auction site. It's been a while since I've listed anything. This seems like a good start.

    -

    I've got a little book now with some nice todo lists and prioritisations. Also plan for myself and partner to keep all supermarket/food receipts this month to check at the end to see where we could start saving money. Not going to worry too much about what we spend this month, but in future I think we have to.
    As of 24/11/2020
    Mort: - £98,200
    CCds: - £1,568.18
    Loan: - £0
    Savings: - £3,500.00
  • CathT
    CathT Posts: 7,109
    First Anniversary Name Dropper First Post
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    Supermarket spends definitely one of the easiest areas to cut back on. I track ours each month.
    Feb 2024 - part 1 - £32,339 part 2 - £25,218 Total - £57,557 45 months to go!
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