Journey to mortgage freedom

FIREdoc

So life continues on. Pulled money out of savings to fund flights and hotels for upcoming break - exciting times! Does make me sad when savings go down rather than up.... unfortunately, since house buying, that has overwhelmingly been the direction of movement on the savings front. Ho hum. Keep trying to rationalise - lots of purchases wanted/needed for the house in the past year, hopefully we're pretty set now, so savings are just for holidays, bigger home improvement projects, and a general FU fund/parental leave fund for the future.
Still have emergency fun for bigger things we wouldn't be able to afford month by month, but is truly for emergencies (thinking leaking roof, replace broken big appliance etc) rather than "wants" (that need to be covered by monthly pay or separate savings fund). So far *touch wood*, the emergency fund has been untouched. Is there a rough price point others would stick at for this fund? I'm gone for £10k so far... not sure whether to try to boost it. I don't think I'd feel comfortable with much less tbh.

enthusiasticsaver

You have some exciting plans coming up. Holiday, TTC etc etc. We have a £10k emergency fund which has been in place for the best part of 20 years and so far we have never touched it as never had a really expensive unexpected spend. We are both retired now and on defined benefit pensions so I am at the point I would be more relaxed about dipping into it for car repairs, home repairs although we have separate pots for them too.

In your circumstances I would work out your maternity pay and then see if you can live off that and save the difference. I would put the OPs on the back burner until you know the situation and how soon you might have to live off a lower income. As you say mortgage rates are low so giving it lower priority is fine. You could always make some lump sum repayments in 6 months to a years time if the situation changes. I would prioritise having more savings behind you to give you the option to take a year off if needed. I would imagine a Junior Doctors day is long and not sure how child friendly the shifts are although of course your DH may be available to look after a baby.

savingholmes

FIREdoc wrote: »

Helpful insights savingholmes, plenty to think about. I suppose part of me is seeing a lot of my friends having a full year off work, and sort of assuming that is what I would do, but you are absolutely right, there is no reason to make that assumption. I get pretty good pay with the NHS - I think 8 weeks full and 18 weeks half, so would make sense to take advantage of that at least?

I also saved up annual leave - you also accrue it in full throughout your absence. I think with my DS I was able to return to work part time on kind of a phased return for upto 3 months - and then used 1 day a week a/l to create my own version of a 4 day week while officially being full time. When I had DD, I went part time for a while before returning to full time and then choosing to take VR. I then had 4 months off over the summer (around when she turned 1) before going full time back to work. With my second child, DH was studying, so he partly looked after her, she partly went to MIL and later partly to nursery... before eventually going to nursery f/t.

I have met people who saved up a whole year's worth of money to have off with their child. I admire them... I think it's great however I am not the world's most natural mother and enjoyed my children far more when I had a part week break from them. I don't know whether it is possible for you to know how you will be before you have one but something to consider... To be a doctor, I would have thought you need to be quite career orientated... but then lots of GPs seem to do part time hours and manage that balance a little more that way...

I think nursery gave my kids a head start with socialising and learning so don't believe all the rubbish that others say about it. My kids loved nursery.

hiddenshadow

FIREdoc wrote: »

So far *touch wood*, the emergency fund has been untouched. Is there a rough price point others would stick at for this fund? I'm gone for £10k so far... not sure whether to try to boost it. I don't think I'd feel comfortable with much less tbh.

General rule of thumb is 3-6mos of living expenses. We had ours at 10k for a while, have now bumped it up to 15k so that it's 6 months of living expenses. The chances of both of us being unemployed for 6 months is slim, but it's enough to cover a major house repair as well, which gives me peace of mind. We could probably add to it but we also have saving pots dedicated to car repairs, vet emergencies, etc, which would supplement.

Brindlebabe

Just catching up with your diary. Sounds like things are going well! Although I gather TTC isn’t always a delightful time...
You’re definitely right about being poor at uni for so long teaches you how to be frugal. I suspect some of our colleagues perhaps weren’t very poor for very long so didn’t really pick up those skills.
Currently driving a 17 year old Toyota Yaris (reluctant upgrade from my previous car - 21 year old Citroen xsara). Last time my Citroen broke down the mechanic wouldn’t believe I was a doctor!

Ah well. Not all about the car you drive is it?

Hope all going well with you
Bb

FIREdoc

So great having so many thoughtful insights to ponder! I think the next year or two is going to be quite the journey!

jodles16

Hey FIREdoc! Sounds like you are making some great inroads! The rule of thumb for emergency fund, as others have said is, 3-6months of costs. Does your 10k cover this?

Best of luck!

Jodles

FIREdoc

So... Family FIREdoc are soon to be three Expecting our first this Spring! It was very early days when I was pondering finances previously so couldn't get too excited, but little one is rapidly becoming a little wriggler and can't be ignored any longer!
Have just a few short months to get the finances in shape, reducing over payments right the way down, and pilling up as much as we can in the EF whilst remembering to enjoy these last few child free months! What a balancing act!
Accepting our mortgage free dreams might be slightly delayed, but definitely at peace with that right now.
Exciting times ahead

enthusiasticsaver

Exciting times indeed. Congrats on your pregnancy. Building up savings definitely wise. Overpaying the mortgage can wait until the early childhood and high cost childcare years over. Luckily interest rates are low. Living off maternity pay is good idea and saving rest of your salary until you start your leave.

Moneyfordreams

Congratulations on your pregnancy