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Finally focussed

edited 31 January 2017 at 11:46AM in Mortgage-Free Wannabe
10 replies 1.3K views
DesignNotDefaultDesignNotDefault Forumite
40 Posts
edited 31 January 2017 at 11:46AM in Mortgage-Free Wannabe
Hello all,

After a long time lurking on the forum, and a long time living month to month, I have decided to post and declare my Mortgage-Free Wannabe status. I am also a Debt-Free Wannabe, however my focus now is costly debt, which in my case is the mortgage.

Bit about myself; I bought my house in 2014 after renting, clearing debt and saving for a deposit since graduating Uni. Things have always been tight, and it was only until late 2016 that I could put money aside for the odd overpayment, repairs/renovation, and emergency fund.

Prior to completing the sale, the frustrations of living month to month (and at that time being on a lower salary and a sole occupant) often led to me experiencing emotional extremes. This of course had a financial impact; on one hand I found myself being very frugal and making the odd overpayment to debt where I could, whereas on the other I would book holidays on the credit card because I felt I was 'owed' it. I felt annoyed with myself a lot of the time, yet also sorry for myself.

I knew my extreme frugality and splurges stemmed from emotional decisions, however I was never honest with myself about the root cause. My feeling prior to my LBM was that continuous debt was expected in life, and something that everyone had to 'get through' or to be 'suffered'; a true working class condition. Feeling wretched about my current credit card balance, and the amount of house renovation needed led me to daily exasperation and a real rooted LBM; my emotional ‘debt’ from childhood has heavily influenced my spending habits and other life choices. Further, I didn't realise until now how much a lack of focus towards an end goal can impact on behaviour, and in the long term, spending habits.

Clearing emotional ‘debt’ for years has empowered me to change my focus and end goal, and I feel more committed than ever to lasting change. Becoming mortgage/debt-free isn’t just about paying debt because I must; it’s because I want a different life and to move on emotionally, and always wanted to but didn’t focus on it.

I recently decided that I don't want, and more importantly don’t have, to work the unsociable and gruelling hours in my current job until I retire. My goal is to be mortgage and debt free by 40 at the earliest; when this is achieved, I plan to come off shift work, and choose a more favoured career path/occupation. My house needs non-essential work and I also need to re-build my emergency fund, so like other posters on the forum, I must strike a balance and schedule this into plans.

I’ll leave it there as the script is getting long, but will be posting around with the odd signature update.

All the best everyone – let’s do this! :j
Mortgage @ May 2014 [STRIKE] £103,347.24[/STRIKE]. Mortgage @ 2%:[STRIKE]£90, 321.99[/STRIKE], £89, 949.44
CC @ 0%: [STRIKE]£5473.72[/STRIKE], [STRIKE]£5419.72[/STRIKE], [STRIKE]£5365.72[/STRIKE], [STRIKE]£5312.72[/STRIKE], [STRIKE]£5259.72[/STRIKE], [STRIKE]£5207.72[/STRIKE], [STRIKE]£5155.72[/STRIKE], £5104.72
Home Improvement Loan @ 0%: £0, settled July 2017
Emergency Savings: £2050/£5000
Intending to be mortgage-free by 2022 :j

Replies

  • themadvixthemadvix Forumite
    4.5K Posts
    Tenth Anniversary 1,000 Posts Name Dropper
    ✭✭✭✭
    Welcome to MFW DND!

    It sounds like you have a plan and a really good reason to see it through. Look forward to following your progress!

    Vix
  • gallygirlgallygirl Forumite
    17.2K Posts
    Part of the Furniture 10,000 Posts Name Dropper Mortgage-free Glee!
    ✭✭✭✭✭
    Welcome and good luck - I love your user name!
    A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
    :) Mortgage Balance = £0 :)
    "Do what others won't early in life so you can do what others can't later in life"
  • KittenkirstKittenkirst Forumite
    2.4K Posts
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    ✭✭✭✭
    Hi & welcome to the board & your MFW journey :D look forward to seeing your regular progress!
    Mortgage 1- 10/16 £170.995- Overpayments to 06/21: £13,784 (25% extra!): house sold & equity= £88,563.12 after fees!
    Mortgage 2-Due 06/21: £301,691 (!) Rate 2.2%. Plan to clear it before 30 years!!!!!!
  • Ok so having done a budget spreadsheet, I have found that I am spending nearly £500 a year on cuts and colours for hair :eek:

    I already have an appointment booked next week, but from March onwards this will have to go. Old school box colour it is!

    Also started a daily spend diary as an additional strategy - this should help in the long term and make me think twice before buying non-essentials.

    Hope everyone is well :)
    Mortgage @ May 2014 [STRIKE] £103,347.24[/STRIKE]. Mortgage @ 2%:[STRIKE]£90, 321.99[/STRIKE], £89, 949.44
    CC @ 0%: [STRIKE]£5473.72[/STRIKE], [STRIKE]£5419.72[/STRIKE], [STRIKE]£5365.72[/STRIKE], [STRIKE]£5312.72[/STRIKE], [STRIKE]£5259.72[/STRIKE], [STRIKE]£5207.72[/STRIKE], [STRIKE]£5155.72[/STRIKE], £5104.72
    Home Improvement Loan @ 0%: £0, settled July 2017
    Emergency Savings: £2050/£5000
    Intending to be mortgage-free by 2022 :j
  • newgirlynewgirly Forumite
    7.9K Posts
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    ✭✭✭✭
    Welcome DND, well done making the decision to become debt and mortgage free! :)
    MFW 67

    2021 £5,829.42/£16,400
  • Hi all,

    This month doesn't seem to have gone too badly with logging daily spending (really makes you think twice) and no spend days. Feels like a weight has been lifted off my shoulders since making the decision to be MFW and DFW. As is the fashion on new diaries, I have created an SOA; any comments welcome of course.

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 1
    Number of children in household......... 0
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 2127.98
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 2127.98


    Monthly Expense Details

    Mortgage................................ 798.2 (overpaying by £250 p/m)
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 74 (over 12 months)
    Electricity............................. 18.5
    Gas..................................... 18.5
    Oil..................................... 0
    Water rates............................. 23.16 (metered)
    Telephone (land line)................... 11.01
    Mobile phone............................ 10 (PAYG)
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 0
    Internet Services....................... 11.01
    Groceries etc. ......................... 140
    Clothing................................ 0
    Petrol/diesel........................... 150
    Road tax................................ 11.8 (paid annually)
    Car Insurance........................... 31.6 (paid annually)
    Car maintenance (including MOT)......... 3.33
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 17.5 (non-prescription supplements)
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 6.67 (paid annually)
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 8.33
    Haircuts................................ 10
    Entertainment........................... 10
    Holiday................................. 0
    Emergency fund.......................... 500
    Total monthly expenses.................. 1865.73



    Assets

    Cash.................................... 0
    House value (Gross)..................... 151000
    Shares and bonds........................ 0
    Car(s).................................. 1000
    Other assets............................ 0
    Total Assets............................ 152000



    Secured & HP Debts

    Description....................Debt......Monthly...APR
    Mortgage...................... 92314.9..(798.2)....2
    Total secured & HP debts...... 92314.9...-.........-


    Unsecured Debts
    Description....................Debt......Monthly...APR
    Credit Card....................5419.72...54........0
    Home Improvement Loan..........559.62....43.06.....0
    Total unsecured debts..........5979.34...97.06.....-



    Monthly Budget Summary

    Total monthly income.................... 2,127.98
    Expenses (including HP & secured debts). 1,865.73
    Available for debt repayments........... 262.25
    Monthly UNsecured debt repayments....... 97.06
    Amount left after debt repayments....... 165.19


    Personal Balance Sheet Summary
    Total assets (things you own)........... 152,000
    Total HP & Secured debt................. -92,314.9
    Total Unsecured debt.................... -5,979.34
    Net Assets.............................. 53,705.76


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


    Hope everyone is good and progressing well with their goals :beer:

    DND
    Mortgage @ May 2014 [STRIKE] £103,347.24[/STRIKE]. Mortgage @ 2%:[STRIKE]£90, 321.99[/STRIKE], £89, 949.44
    CC @ 0%: [STRIKE]£5473.72[/STRIKE], [STRIKE]£5419.72[/STRIKE], [STRIKE]£5365.72[/STRIKE], [STRIKE]£5312.72[/STRIKE], [STRIKE]£5259.72[/STRIKE], [STRIKE]£5207.72[/STRIKE], [STRIKE]£5155.72[/STRIKE], £5104.72
    Home Improvement Loan @ 0%: £0, settled July 2017
    Emergency Savings: £2050/£5000
    Intending to be mortgage-free by 2022 :j
  • Good day all,

    Bit of an update; I have just had renovation work done to the house. The front is looking great, however my current savings are now minimal! Should something arise in the meantime I will have to visit the Bank of Dad which fortunately is not a regular occurrence, if ever. On the plus side, this part of the house is complete and I won't have to think about it again, nor mow any grass which I hated doing :rotfl:

    I have a smaller kitchen refurbishment project planned for the summer (replacing worktops, painting walls and cupboard doors). My dad is going to help me with this to keep costs down. When this is done, I'm going to lay off the house projects for a while until 2018, as I want to save an emergency fund again. Long term fixed savings will be accessible in August this year, which I'll then add to the emergency fund.

    February went quite well with 22 out of 28 No Spend Days (i.e. no non-essential spending).

    Hope everyone is good and progressing well with their goals :beer:

    DND
    Mortgage @ May 2014 [STRIKE] £103,347.24[/STRIKE]. Mortgage @ 2%:[STRIKE]£90, 321.99[/STRIKE], £89, 949.44
    CC @ 0%: [STRIKE]£5473.72[/STRIKE], [STRIKE]£5419.72[/STRIKE], [STRIKE]£5365.72[/STRIKE], [STRIKE]£5312.72[/STRIKE], [STRIKE]£5259.72[/STRIKE], [STRIKE]£5207.72[/STRIKE], [STRIKE]£5155.72[/STRIKE], £5104.72
    Home Improvement Loan @ 0%: £0, settled July 2017
    Emergency Savings: £2050/£5000
    Intending to be mortgage-free by 2022 :j
  • Hi all,

    It's been a while since I've been on the site, also been a while since I posted. Been so busy these past few months working and doing seasonal jobs before autumn/winter arrives.

    Fences have been painted in the front and look great (hard work that though, crikey!). Kitchen cupboard doors and tiles are painted, just waiting on the delivery of worktops and a new sink this week to finish the job off.

    From a money saving viewpoint, I fell off the wagon a bit from May-July in recording my non-essential spending. When I clamped down on it again at the end of July by completing my spreadsheet, I noticed that I had over £100 a month in unknown internet expenditures (!!!!!!?!). I am using a diary to record the amount and item description so I know exactly where it is going, as well as questioning myself if I need the item before I buy it! It also allows precise budgeting/tracking I find.

    I decided to suspend overpaying on the mortgage as I've had things to buy for the kitchen refurbishment/outside jobs. I also wanted to get the emergency fund up and running as it freaks me out having nothing to fall back on; once I have 5 months worth of outgoings covered I'll revise this.

    Smaller money saving actions include no more hair cuts and colours since May. I'm unsure how much grey/white I have, as I am a natural blonde; will have to let it grow out a bit more before I can see if I need to whip out the box colour. So far have saved £160 doing this. Downloaded free books onto my kindle last night - no buying new ones until I finish these. Did a bunch of batch cooking the other week - intending to use all freezer/cupboard contents before another big shop. I have noticed my food bill creeping up a bit so will have to keep an eye on that as well.

    My regular saver matured this month, so I immediately put that into a fixed account for 6 months to create an emergency fund. I also settled the home improvement loan I had. It was on 0% until March 2018, however I decided to just settle; the balance was about £250, plus it was getting on my nerves looking at it!

    Right, I'm off to update my spreadsheet! All the best everyone, hope you're all good :-)

    DND
    Mortgage @ May 2014 [STRIKE] £103,347.24[/STRIKE]. Mortgage @ 2%:[STRIKE]£90, 321.99[/STRIKE], £89, 949.44
    CC @ 0%: [STRIKE]£5473.72[/STRIKE], [STRIKE]£5419.72[/STRIKE], [STRIKE]£5365.72[/STRIKE], [STRIKE]£5312.72[/STRIKE], [STRIKE]£5259.72[/STRIKE], [STRIKE]£5207.72[/STRIKE], [STRIKE]£5155.72[/STRIKE], £5104.72
    Home Improvement Loan @ 0%: £0, settled July 2017
    Emergency Savings: £2050/£5000
    Intending to be mortgage-free by 2022 :j
  • KittenkirstKittenkirst Forumite
    2.4K Posts
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    ✭✭✭✭
    Hi DND!

    Good to see you posting; well done on the painting and kitchen works! I want to paint our fences but there seems so much of them that I'm a bit scared to start ;p

    I empathise about rebuilding your emergency savings first and I think that's a pretty sensible proposal. I'm doing mine at the same time but the savings gets a fixed much higher amount and the mortgage gets smaller bits I'm making from reducing outgoings/selling stuffs/surveys etc

    Bet it feels good to tick off that home improvement loan as completed! :D
    Mortgage 1- 10/16 £170.995- Overpayments to 06/21: £13,784 (25% extra!): house sold & equity= £88,563.12 after fees!
    Mortgage 2-Due 06/21: £301,691 (!) Rate 2.2%. Plan to clear it before 30 years!!!!!!
  • Thanks Kittenkirst, hope you're progressing well with your goals :-) Do you have a diary I can follow? If so how do you do that?

    Re: the emergency savings - yes I agree totally. I kept thinking if I'm in real trouble I'll go to my dad, but as he gets older I'm reluctant to do this for a few reasons, one of which being he may not be in a position to help me financially at any given time. He's also using savings to fund his retirement until he can collect his pension. I'm in this house on my own as well, so I need that security buffer.

    I found doing the fences difficult as obviously you need the weather; trying to do this either side of my shifts required taking a chance sometimes despite iffy looking skies! Plus it's just hard work, lol. Maybe try to get someone to give you a hand?

    I like your approach of throwing snippets at the mortgage whilst building your savings, I might have a look at doing that from time to time as well.

    Yes that home improvement loan was getting on my nerves a bit after a while, it does feel good to finalise :-)
    Mortgage @ May 2014 [STRIKE] £103,347.24[/STRIKE]. Mortgage @ 2%:[STRIKE]£90, 321.99[/STRIKE], £89, 949.44
    CC @ 0%: [STRIKE]£5473.72[/STRIKE], [STRIKE]£5419.72[/STRIKE], [STRIKE]£5365.72[/STRIKE], [STRIKE]£5312.72[/STRIKE], [STRIKE]£5259.72[/STRIKE], [STRIKE]£5207.72[/STRIKE], [STRIKE]£5155.72[/STRIKE], £5104.72
    Home Improvement Loan @ 0%: £0, settled July 2017
    Emergency Savings: £2050/£5000
    Intending to be mortgage-free by 2022 :j
This discussion has been closed.
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