Journey to £0 by 2020, with a few bumps along the way

chelseablue

enthusiasticsaver wrote: »

Maybe you could set out priorities and costings to get it clear in your head which is most important?

So in no particular order

repay loan £8000
You already have £3800 emergency savings which is almost 6 months essential expenses (assuming monthly expenses are £700) so maybe aim for £5k?
Carpets for rooms you decorated last year
Redecorate hall, stairs and landing
New car
Continue to invest the £200 each month (what fund are you investing in?)

So 6 financial objectives in whichever order you think is best for your mental health primarily as the loan is low rate anyway.

My isa is with Hargreaves Lansdown, I have 2 funds in it:

Vanguard LifeStrategy 100% equity, this is mine
BlackRock Consensus 100, this is for my son

Do you invest?

enthusiasticsaver

chelseablue wrote: »

My isa is with Hargreaves Lansdown, I have 2 funds in it:

Vanguard LifeStrategy 100% equity, this is mine
BlackRock Consensus 100, this is for my son

Do you invest?

Yes I do invest but started much later than you at 55 when our mortgage was repaid and we had helped our daughters get on the housing ladder, University and post grad for eldest daughter, wedding for youngest (kids are expensive :rotfl:). I used to invest in Vanguard life strategy 60 as I was older than you but now we have an IFA who has it invested in a broad spectrum of mixed asset funds.

chelseablue

enthusiasticsaver wrote: »

Yes I do invest but started much later than you at 55 when our mortgage was repaid and we had helped our daughters get on the housing ladder, University and post grad for eldest daughter, wedding for youngest (kids are expensive :rotfl:). I used to invest in Vanguard life strategy 60 as I was older than you but now we have an IFA who has it invested in a broad spectrum of mixed asset funds.

My 5 year old is expensive enough now :rotfl:

I always want to get financial advice about the funds I've chosen but with just over £8k in the isa maybe not worth it yet?

enthusiasticsaver

chelseablue wrote: »

Yes that's me!

Replaced his lease car that went back. Car we bought was written off so used most of the insurance pay out to pay off the car

The thing that increased the debt was paying for the flights to Australia on my card, was £6k for the 3 of us.

I could carry on as I am and pay off the loan this year, £2,500 of my savings are in a 5% interest account. The 12 months for this is up in October so my plan is to send this straight to the loan in October when the interest rate drops to 1%

That makes sense. It is in Nationwide flex account then presumably and at least higher than the 2.9% you are paying on the loan? How much is the car costing you to keep it on the road? When repairs cost more than the value that is when you should replace it.

enthusiasticsaver

chelseablue wrote: »

My 5 year old is expensive enough now :rotfl:

I always want to get financial advice about the funds I've chosen but with just over £8k in the isa maybe not worth it yet?

No, it would not be worth it now. We did not employ one until after we retired and had the lump sums from our pensions.

enthusiasticsaver

The funds you have chosen I think are sensible providing you realise they are 100% in equities so in a downturn are liable to decrease significantly more than mixed asset funds (equities and bonds). As you are young though most recommend you go for higher levels of equities as you have plenty of time for them to recover but the closer you get to needing the money you may want to go for less volatile funds.

chelseablue

enthusiasticsaver wrote: »

That makes sense. It is in Nationwide flex account then presumably and at least higher than the 2.9% you are paying on the loan? How much is the car costing you to keep it on the road? When repairs cost more than the value that is when you should replace it.

Yes its in my FlexDirect account, it pays 5% for 12 months only up to £2,500. It drops to 1% in October

My car at the moment is only costing the usual stuff, tax, insurance, MOT and petrol

The last time I had to repair it was 2016 when I came out of work and it wouldn't start, just needed a new battery. Cost £90

enthusiasticsaver

chelseablue wrote: »

Yes its in my FlexDirect account, it pays 5% for 12 months only up to £2,500. It drops to 1% in October

My car at the moment is only costing the usual stuff, tax, insurance, MOT and petrol

The last time I had to repair it was 2016 when I came out of work and it wouldn't start, just needed a new battery. Cost £90

It sounds pretty reliable then and can maybe wait until next year before you need to replace it? It is a Nissan isn't it?

chelseablue

Hopefully wont need the isa money from my fund until I retire, so maybe when I'm 50 see an adviser and drop it to something less risky

My sons fund I don't have a date in mind, I wont just hand it over when he's 18. Maybe when he's 25-30 and buying a property I'll surprise him with it.

Or could be when he's 40 judging by the age of first time buyers keep increasing!

Yes my car is a Nissan Note, 2006 plate
Only done 60,000 miles

Not sure whether to buy new, putting down a 10K deposit and loan for the rest or 10k cash and own outright

I've never paid monthly for a car before

enthusiasticsaver

As cars depreciate so quickly I would not recommend new. £10k will get you a good used one. I don't think a loan for a new car is bad providing you get an asset at the end and you don't borrow the whole amount and the rate is decent.