FtbDreaming wants to clear £69,700 before Im 40 (2027)

slm6002

It is great when although things are not perfect they are heading in the right direction.  Like you say finances will improve when you start your new job.  So exciting.  I am glad that they have kept you on the books for the bank work - makes life a little easier

FtbDreaming

Hello! Long time since I updated. I had an absolutely manic week painting and cleaning the house before my Nans arrival. I did get a lot done though and the house is all the better for it! I also didn’t spend a lot which is the main thing. Probably £65 to paint the living room; hall stairs and landing and the bathroom. Mainly because I just used the millions of pots of leftover paint lying around. 

I had a very busy weekend with nan here. Some money was spent on days and meals out but nothing excessive. Then on Saturday I took the kids to London for a day out. We had a lovely day and done the river cruise, London Dungeons, Hyde park and a meal out plus train and snacks it came in at less than £80 per head so I think that’s a decent budget for London all in. 

The mortgage is down to £64,500 Which is 7% paid off. And according to the Halifax hub my LTV is 67%. I plan to save and overpay once my new pay kicks in.  

I have started my new job and I love it! It’s just not stressful like a&e.. I’m awake of an evening functioning and Keeping on top of life. I’m hoping the take home pay will be around £600 more a month which should stabilise me pretty swiftly. 

I got the £150 rebate off the council tax today and I sold my Ed Sheeran tickets back to ticketmaster since that’s £102 due in any day. These 2 payments should mean that I won’t be struggling this month as I’m not doing any bank shifts for the foreseeable. 

Other than that I’ve transferred all the credit cards over to another 0% for 28 months which is a massive weight off… instead of loads of minimum payments and extra payments spread all over the place I can now just pay a set amount each month and it’ll be paid off without a struggle.

Hope you’re all well and fingers crossed I’ll be overpaying more soon enough. I feel like I update a lot less now I get paid monthly it’s a slog between paydays. I really do miss weekly pay x 

slm6002

It sounds like life is going well.  House all done up, new job going well, bank account looking like it will be ok and 0% interest on debts sorted.

I am really glad that the job is going well and is making a difference at home too.  London is too busy for me (much more comfortable in a little town lol) but it sounds like you had a great time

FtbDreaming

Thankyou! I’m still loving the new job! The stress is nothing compared to what I was used to and I’m slowly getting used the the hours. I am doing things of an evening after work with the kids or meeting friends/ family etc so I have kind of made Saturday my sacred lazy day where I’m not running around. 

I’ve got my payslip for next week. My first full time pay + a month owed of night enhancements. I had mentally prepared for £1200 as minimum and I’m getting £1900 so it’s a bit better than I was expecting. I had actually earnt £3200 before deductions though so still a huge Chunk taken off me. 

Sooo…. I’ve had a think and I know it’s very controversial on MSE but I’m going to opt out of my pension for a few years. I am paying in region of £300 a month which I really need to live now. I’ve had a look and if I opt back in within 5 years then I still keep my continuity of service. I’ve got 6 years of contributions up to now and I’ll still have another 30 years to contribute before retirement after opting back in. The plan is to opt back in in 2026 so I’m well within the 5 year limit. By which time the kids will be 17, 14 and 12 so still in the expensive phase of life but the Kitchen and credit cards will be paid for then and I hope to be back on the mortgage overpayments and have that paid right down too. 

I know people say you need money for retirement but I’m planning on being mortgage free by 40 or early 40s at least. Then I will be building up savings after that. I just think a 4 year gap is my best option. I don’t see retirement being anywhere near as expensive as right now. That £300 a month will really help me out now. 

I’ll update when I’ve made my overpayment. I haven’t done much because I’m paying bills down as a priority. Kitchen is 1/3 paid for now 🙃

D123456789

Hello I have  been following your diary 😊 and I don’t pretend to know too much about pensions. However, if you opt out, bear in mind you will then be taxed on the 300 pounds so even at 20 % tax you will only get 240 back. Plus you will miss out on your employers contribution to your pension. 

Will go back to lurking  🙃

FtbDreaming

Thanks @D123456789 yeah I know I did consider that but unfortunately I still need to opt out for a while. I will automatically be re-enrolled after 3 years so although I’ll lose 3 years contributions I’ll still have 38 years by the time I reach pension age. I did think about it long and hard and came to the conclusion that right now is one of the most expensive times of my life. I’ve got 3 kids who are getting more and more expensive as they grow (trips/ uniforms/ bus fares/ days out/ clothes/ food etc) I’m still the only earner for 5 of us so the £200 I’ve calculated post tax etc is still enough to make life easier for me for the next couple of years. 

This month has been an expensive one again and it’s not even started! Had to pay £450 for car insurance and £130 for school trips etc. I’m  trying to be frugal apart from the bills and life but we’ll see!

i know where I am once the bills have all gone out on the 1st x

savingholmes

Just finished catching up on your journey. What a rollercoaster ride!

As an alternative to stopping your pension altogether could you do the 50% rate?

I know you want to be mortgage free but in top up from your employer you lose far more than your mortgage interest rate if you stop pension contributions.

FtbDreaming

Hi @savingholmes I have already submitted the opt out form. Like I said it’s not forever it’s for 3 years then I automatically go back in. It’s not so I can overpay the mortgage it’s so I can just get by in life right now. The cost of absolutely everything has gone up and I am struggling to make ends meet on £1800 a month for a family of 5 with 2 cars it’s just nearing impossible. 

I looked into going down to one car the other week when the insurance was up for renewal but it would have cost me £67 a month for a bus ticket and about 8 hours a week extra travel time which I just can’t do. I’m m already struggling to adjust going from pet time to full time. 

Hopefully next month if they don’t take pension I will go from struggling to getting by. I use the term loosely. I’ll have all new uniforms to buy which for example is £32.50 just for a pe tshirt. £64 for a blazer…. There’s just so much pressure on me to be able to pay for all this stuff I need to do what I can to lake
life easier. I am not really worried about losing employer contributions either. I can’t say I’m a particularly long term planner and I don’t take for granted that I’ll be here when I’m 68 anyway. I’m 34 and have lived a lot and I’ve got a load more life to get through before I’m 68. That doesn’t mean I’m anti pension just that I’m pro-prioritising. I still plan on having 37 years nhs contributions by the time I reach retirement age. Xx

Bluegreen143

£1,800 a month for five is challenging, is that including all income? You are doing amazing to have achieved all you have!

You know this already, but it would make a real difference if your OH was earning.

Does he need a car? Could he get by on public transport while you’re working (is the kids’ school walkable etc?).

savingholmes

I can see that that level of income is challenging. You have to do what's right for you. I just have seen it at the other end with a friend who is her 60s who opted out and never opted back in and who now gets very little income in her old age... So it just that thing of if it really does end up only being for 3 years - then that should work out - it's hard to restart though.

How much longer will you be paying out on the student loans and similar educational debt?

I thought your new kitchen and bathroom looked good. I appreciate - I'm a newbie on your thread and started off on the wrong foot. You have achieved and are achieving a lot! I appreciate this year costs are crazy...