Learning to live within my means

savingholmes

Nearly there then. Sounds great progress. 

astrocytic_kitten

Thanks @savingholmes, now scheming about how I can raise another couple of hundred in the next 2 months! Have listed another couple of bits online this morning. I have a box of books to go too for £5, but I can’t make it to a collect plus point and don’t want to ask anyone else to go into a shop they wouldn’t otherwise be going into right now. All the other selling has been done with courier or Royal Mail pickup from home.

Last night I did a rough budget for after I’ve paid off the debt. Going to give myself a little bit extra per month and also overpay the mortgage by something like £20 per month (just because I’m desperate to start overpaying), but plough almost as much as I’ve been paying off debt into savings until I hit a 6 month emergency fund. I like that it gives me a bit of space to adjust to deciding what I’m doing longer term. 

savingholmes

An EF sounds like it would be a weight off your mind. We are planning on doing something similar once we are debt-free which should be around June if all goes well.

astrocytic_kitten

Don’t want to get too far ahead of myself....but if the online sales that are agreed go through I’ll only be £80 short of fully paying off debt at the end of March. Considering that a few months ago I thought the £600 or so that was required to bring DFD forward to end March at that point was just too big a figure to find I’m surprised but pleased - MSE is right and little amounts really do add up, who’d have thought 😆

IzzyBee

Well done 👍

savingholmes

I am so glad for you that the sales are bringing good income in to clear the debt. It will be great to get it shifted. What do you plan to do with the spare money afterwards?

astrocytic_kitten

Thanks both! Once the debt is cleared I’m going to give myself an extra £50 per month spending money, and also put some money aside to buy a painting for my bedroom when I see one I like. That’s been my debt free promise to myself for a while. Then I’ll first focus on increasing the emergency fund to 6 months.

Once I’ve got a 6 months emergency fund I’m going to increase the amount I put to the home sinking fund each month, possibly increase pension contributions (but not till I’ve taken advice from a broker on how that might impact a mortgage application), probably start a small holiday fund, and split the rest between overpaying mortgage and saving a 12 month emergency fund.

I do plan to move house either this year or next so it could all go horribly wrong though 😆 It would be sensible to wait and move next year after I’ve got my ducks in a row this year and built up savings, but I have very specific mobility requirements and suitable places hardly ever come up so if I see one that fits from this summer onwards I’ll jump on it. I’ll likely be increasing my mortgage but I want to keep it very, very manageable and I’ll be planning to overpay if I can.

Sarahwithlove

I think your debt is at a very manageable level now so if the right place comes up you have to just take it. Otherwise you could be waiting another year or so. 

savingholmes

Good to have goals beyond debt freedom

GeorgianaCavendish

You are making amazing progress - how exciting to be so close to pay off the debt!
Your post-debt goals sound very sensible, having an emergency fund has been a big weight off my mind and I agree about the house, as you've got very specific requirements then jumping on the right one when it comes up is absolutely the right thing to do. Exciting times ahead! I'm so happy for you