FinancialBliss: My mortgage free journey…

StuartGMC

ali007 wrote: »

Never been called a geek before, thanks . (It was a compliment wasn't it )

Of course it was, from one geek to another anyway

financialbliss

Quick update on the tent front…

Got the tent out (6 person) this evening once the kids had gone to bed. Despite having the tent for a little while (purchased August 2006), I think we’ve only pitched it twice, first time to get a feel for the size and the second time in summer 2007 when myself and #1 camped out in the back garden.

This evening we notched up a third attempt. Took over an hour, but this was going through the stages slowly to make sure we got familiar with them. Made a cup of tea during the process, so we weren’t exactly going for a world record.

Our other 3 person tent, which is about a third of the size has just 2 poles and that can be pitched in literally minutes. This tent is a different style with 4 poles and the “bedrooms” hang inside the outer flysheet. Quite some time was taken up getting it square – expect to be faster next time though.

Had a good laugh during the process and at one point, I thought I’d ripped the tent, but subsequently realised I’d ripped the backside out of my shorts as I was crawling around pegging the bedroom floors down.:rotfl:

Providing it doesn’t blow or fall down overnight, the plan is to camp out on Friday evening. Going for the full camping effect, so we’ll be digging out the camping stove too. Expect to collapse and re-pitch the tent again on Saturday, just for the experience. Depending on how popular it was with the kids, may push the boat out for a second evening on Saturday.

I’ve the two weeks off work before the August bank holiday. Hoping to go camping for a few (2 or 3) nights mid-week (cheaper) each week, but we’ve no firm plans just yet.

If it turns out a complete disaster, I guess I'm doing lots of DIY / odd jobs during my two weeks off :eek:

FB.

EssexHebridean

LOL - sounds like fun. I'll be crossing my fingers for good weather for you tonight then, although I guess if you're after the "real" camping experience there really ought to be some rain, high winds, and perhaps a clap or two of thunder?!

financialbliss

Hi,

I’ve not found the time since the weekend to post an update…

Despite our best efforts, #2 (just turned 2), refused to sleep in the tent, however #1 loved it. Slept out on Friday and Saturday evening and got the camping stove out much to his interest. Quote: “Does it beep when the food is ready?”.

Despite our best coaxing of #2, a few nights away during my time off now looks in doubt…

Need to work on another post this evening, so do check back later!

FB.

financialbliss

OK. I promised another post this evening, so here goes.

Our mortgage started on 16th March 2004.
I want to be mortgage free by 12th December 2012

The difference between those dates is 8 years, 8 months and 27 days or 3,193 days. Divide that by two and you get 4 years, 4 months and 13 and a half days (I’m discounting the half day) or 1,596 days.

Thus, I’m at the half way point in my 12/12/12 challenge with 4 years, 4 months and 14 days remaining or 1,597 days. The mortgage today is 63,570.91.

Thus I’ve paid off 95,000.00 – 63,570.91 ie 31,429.09 in four years.

Not too bad eh? Or have I?

Mortgage interest.
This breaks down as follows:

2004: 3,495.83
2005: 4,095.55
2006: 3,734.41
2007: 3,427.29
2008: 1,817.69 (to date)

Total of 16,570.77 in interest charged to date.

If you step back and realise that I’m paying interest on my debt, it’s actually the starting mortgage + interest – current balance, ie 95,000.00 + 16,570.77 – 63,570.91 = 47,999.86 repaid :eek:

Bear in mind that we’re a single earner family raising two small kids and I’ve paid back almost 48k in 4 and a bit years, I think we’re doing ok. That’s roughly 10,977 repaid per year.

I’d made a note of today’s significance a good while ago, noting that I could turn today's date into one of the posts I call a “feature” post instead of random ramblings. However I’ve only just done the calculations as I draft this up, as I needed today’s mortgage balance, and I’m pleasantly surprised by the 48k reduction figure.

Moving forward.
As we’re a the half way point, it makes sense to look forward. Despite being a bit of an optimist, I’m not going to speculate in percentage terms or thousands, if I will achieve my aim or how much I will be short by, as 4 years and 4 months is quite a length of time.

Any number of things could occur, including redundancy, promotion, long term sick, emigration etc. I’ve just picked a few things at random – not wishing / planning on any of those, except perhaps the promotion!

However, if we continue at the steady pace we’re going at, I currently think we have a good chance of meeting the 12/12/12 goal.

So, if you’re a regular or occasional reader, do have a say if you think I’ll achieve my 12/12/12 mortgage free goal or not.

Thanks,
Financial Bliss.

StuartGMC

FB
You rightly note the very positive review of your position and I trust you are "living" and enjoying time with family in addition to paying down so rapidly. I think you are best to plan for no increase in salary etc then you have a "realistic" baseline to work from and promotion or pay rise will simply improve on it.

Yes redundancy is a risk for most of us now, but I know you have planned to cover this with your emergency funds etc. You can't really "plan" for it in your repayment projections, just modify if it happens.

Whilst prices are escalating, I know from my spreadsheet the hit on monthly petrol, food etc is eroding the amount "planned" to be saved for replacement car etc and I think for many (here on MSE) it is this erosion of disposable income which will hit us all as we won't be saving/offsetting/overpaying to the degree we would like to and indeed planned to do 12 months ago.

You have the advantage that now OP is considered against daily interest rate calcs, something which I think did not help us with the OPs we made 1994-2000 or so.

I think you'll make it, or be very close, but I would hope that you ease up on the plan if it is impacting on the enjoyment you can have with family in terms of holidays and time together. Afterall, time on the mortgage is a little more interest, time with children is priceless and you can't bank it...

Cheers

Floxxie

That's a really interesting post FB. I think you can make your target.

Will be watching how you get on...I'm hoping to have an offset amount equal to my mortgage by 31st Dec 2012 - very, very optimistic!

Floxxie

JonnyBravo

financialbliss wrote: »

Had a good laugh during the process and at one point, I thought I’d ripped the tent, but subsequently realised I’d ripped the backside out of my shorts as I was crawling around pegging the bedroom floors down.:rotfl:

:rotfl:

financialbliss wrote: »

So, if you’re a regular or occasional reader, do have a say if you think I’ll achieve my 12/12/12 mortgage free goal or not.

OK.
Whilst not wanting to discourage you, I'm afraid I don't think you'll quite make it.
Admittedly it'll be close I reckon but not quite there. Now I know you've got a level head and you won't be overly discouraged by this as getting close will be an achievement in itself.

A few things could make the difference though (IMO).

When are you "sending" the Mrs back out to work or will she not be going back?
How realistic is your hope of a promotion and how big an impact on your wages will it make?

As you say there are lots of things which could affect the situation but these two are more likely (?) to affect it.



Anyhow, just my thoughts, and keep up the good work, and the good (best?) MF diary on here.

:T

Kaz2904

Nice to see another update from you fb.
Do I think you'll make it? I still don't know. You have number 1 off to school soon which starts mounting costs (unfortunately!).

Never mind about camping, you may find though that if you went to an actual campsite with DD then she would sleep in the tent purely because there's no alternative. We only went camping for the first time this year and my youngest is a few months older than your DS. We went very close to home so we could abandon it if it was truly awful.

Anyway, I feel it's going to be a roller coaster ride over the next few years. I shall enjoy bumbling alongside you as my mortgage will be cleared on 22/11/2012 and then I have to clear my other debt to my Mum. Good Luck!

financialbliss

Well, as it's 31st July, I'll post a month end mortgage interest snapshot. My mortgage interest for 2008 today is 1,834.32

On-line, is simply shows the total amount. Each month I'm logging the month end value, so that I can get the interest for the month and then calculate per day. The 1,834.32 breaks down as follows:

• January 279.86 – 9.03 per day
• February 249.23 – 8.90 per day
• March 271.85 – 8.77 per day
• April 259.23 - 8.64 per day
• May 263.84 - 8.51 per day
• June 252.53 - 8.41 per day
• July 257.78 - 8.31 per day

Took money out of savings to put in place for the normal monthly payment of 898.03 which is on the first, ie tomorrow. Also overpaying by 101.97 to top the monthly payment up to 1,000.00.

FB.