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The Piano Diary

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  • glass_half_full
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    Good morning diary and all,

    We are just back yesterday from a few days away camping in South Wales with DS. We went there because of the mountain biking and had a great time. Must admit we were glad to get home in the end, we all needed to get back to sleeping in a real bed again!
    On our return I found a letter from our mortgage provider confirming the new term of the mortgage is now 7 years and 0 months (reduced from 13 years). I cant believe I am so happy about paying more every month for the mortgage, possibly this is something only MFWannabes would understand. I’m sure this is the right decision as it will make sure that the additional savings from being debt free go to the right place rather than leaking away as additional spending. As this has now been confirmed I was able to also apply to switch yesterday to a five year fixed rate at the same provider. This is a slightly lower interest rate so will reduce the payment slightly. The plan will be to overpay so that although the new term is 7 years, we will pay off in 5 years. I like knowing that the payment is fixed and I know what it is for possibly the remainder of the whole mortgage.

    I am still fiddling with the budget since the mortgage will increase by about £400 per month starting this month. Everything is ok but we have had a few extra expenses in the last few weeks so we just need to keep everything on track. Today I have to take the car in for a job that needs doing, hoping for around £125 for this. Tomorrow our cat is having a scan at the vet to make sure he is ok.

    So the journey has just taken a big step forward.
    Aiming to early retire in April 2025 - DC pension currently £356k 
  • glass_half_full
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    Good morning diary and all,

    We have a couple more days off on holiday before going back to work on Monday. We planned to come home a bit early to have a few days off but at home, which to be honest I am really enjoying because I can get on top of everything before going back to work.
    The car repair cost £105 in the end so slightly less than expected. I am hoping that is it for a while since we have spent quite a lot on it recently. There is also the inconvenience of losing it for the day since we are a one car family. Yesterday I managed by using the bike, I was out three times on it in the end.
    DSs girlfriend arrived last night and is staying for a couple of nights.
    I am in this morning since we are having a smart meter fitted. Should help to manage our energy spend a bit better. OH has taken our cat to the vet as he is having a scan this morning, hopefully he is ok. I am taking the opportunity to take stock and think about the plans I have going forward.

    On the financial front, the mortgage has been sorted and that is a big step forward. My other goals for the next 12 months are:
    1. Rebuild emergency fund to £1000 (by October)
    2. Increase pension contributions (in January)
    3. Build savings up to £10,000 (by December 2019), possibly for replacement car or maybe a big mortgage overpayment, depends on the state of the car by then!
    These are all doable and are in my budget which runs to the end of 2019 at the moment. However, they do rely on us maintaining a degree of financial discipline. We have overspent a bit in the last month on summer camping and biking. I don’t regret it too much since we need some downtime to recharge our batteries. I am expecting a pay rise due to a promotion at work but not sure how much this will be. hopefully this will become clear in the coming days which will of course help with planning.
    I found the debt free diary really helped me with staying on track, so intend to post on here to record progress towards these goals.
    Looking forward to listening to the test match on the radio later on today.

    Have a great day all!
    Aiming to early retire in April 2025 - DC pension currently £356k 
  • glass_half_full
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    Good morning diary and all,

    Weather seems to have picked up again this morning following the stormy / rainy day yesterday.

    The smart energy meter is now installed so no more meter readings which is a good thing. We can also see our live energy usage so that should improve good habits regarding switching stuff off etc. This has got me thinking once again about how we can minimise our energy costs in the home. We have taken some actions previously such as increasing loft insulation. Resisting putting the heating on as long as is sensible and then when it goes on checking the on/off timings for heat and water, setting the thermostat at a reasonable level. That said I dont believe in being cold so we keep this in perspective. The boiler is quite old (10-15 years) and is a D rating. However, some investigation on line suggests that the saving from a new boiler would be around £150-200 so would take 10 years approx. to pay back. So while the current boiler works and is reliable I think we will hold off replacing it. Mostly I think we have done the structural stuff and changing suppliers etc, so now is mainly about good energy saving habits.

    The new five year fixed deal came through yesterday for us to sign electronically so that should be sorted in the next few days. This new mortgage figure is now baked into the budget going forward, increased from £640 to £1050.
    Found out yesterday from checking on line that my promotion has come through and salary increased effective 1st August. This is quite a big increase (approx. £350 take home per month) since I have moved up two grades, because I had been a bit remiss in not having applied for promotion earlier! In fact all the money saving focus over the past couple of years, and listening to Dave Ramsay podcasts was one of the reasons I finally pushed myself to apply for it. Definitely a lesson in there to not just focus on reducing spending and costs but also increasing earnings where possible and appropriate. This increase will help with achieving the financial goals, and I also intend to increase pension contributions from January. Holding off on that just for 4 months to help with recovering from the summer expenses that we have incurred.

    We have some friends coming over this evening so that will be nice.
    Have a great day all!
    Aiming to early retire in April 2025 - DC pension currently £356k 
  • zcrat41
    zcrat41 Posts: 1,729 Forumite
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    What a fab increase! Well done!
  • greent
    greent Posts: 10,671 Forumite
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    Congrats on the promotion - and what a lovely raise to go with it :T
    x
    I am the master of my fate; I am the captain of my soul
    Repaid mtge early (orig 11/25) 01/09 £124616 01/11 £89873 01/13 £52546 01/15 £12133 07/15 £NIL
    Net sales 2024: £20
  • lindez
    lindez Posts: 643 Forumite
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    Congratulations on your debt free diary, and your promotion. Your plans to be mortgage free in hopefully 5 years are really good. I will be following you for inspiration I also plan on reducing my mortgage term from the current 10 years to five years. It will be hard but its a must as I am now 59 and do not want my mortgage to go on until I am almost 70 !!
    MFWB#2
    MFTT5 #28
    Save 12k 2020 #111
  • julicorn
    julicorn Posts: 2,286 Forumite
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    Congratulations on your promotion and pay rise! :j
    Original mortgage: December 2017, £203,495
    MFW start: April 2018, £201,800
    Mortgage neutral: September 2022, mortgage redeemed: December 2022
    New house, new mortgage: December 2022, £276,007
    Current balance: £217,800 minus £8,300 overpayment savings pot
  • glass_half_full
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    zcrat41 wrote: »
    What a fab increase! Well done!

    Hi Zcrat, thanks for this ! :beer:
    Aiming to early retire in April 2025 - DC pension currently £356k 
  • glass_half_full
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    greent wrote: »
    Congrats on the promotion - and what a lovely raise to go with it :T
    x

    Thanks Greent ! :beer:
    Aiming to early retire in April 2025 - DC pension currently £356k 
  • glass_half_full
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    lindez wrote: »
    Congratulations on your debt free diary, and your promotion. Your plans to be mortgage free in hopefully 5 years are really good. I will be following you for inspiration I also plan on reducing my mortgage term from the current 10 years to five years. It will be hard but its a must as I am now 59 and do not want my mortgage to go on until I am almost 70 !!

    Thanks Lindez ! :beer:
    Good luck with your goal. Do you think you will reduce the term or overpay?
    Aiming to early retire in April 2025 - DC pension currently £356k 
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