Road to debt free life

enthusiasticsaver

mamamu said:

enthusiasticsaver said:

Wonderful news. Congratulations. Do you have any savings targets? 

 Now want to have 3-4 month savings as emergency fund, then start overpaying mortgage to repay it within next 15 years, at the same time saving for our son university or adult life start sum - about 50k we got 13 years to do that. And also hoping to have enough to retire early in 16years at 58. 

So those are the goals. 

At the moment got sinking funds already running for all yearly expenses, well working budget stable for last 5month and already max contributions to pension. 

Just need to think were to keep savings. Planing Mixture of S&S ISA, PB and Regular saver account to max out that every year. Haven’t decided on that yet. Advice is very welcome. 

Great goals and similar to our plan. We took early retirement at 58 after paying off the mortgage and funding our daughters through Uni and on to the housing ladder. 15 to 16 years is a good time frame. 

There are two schools of thought on overpaying the mortgage (which you can also think of as long term savings) in that because interest rates are low investing in your pension and or stocks and shares isas is more profitable. We decided to target the mortgage though for the peace of mind of getting rid of it and to lower monthly outgoings in retirement. We didn't really save in stocks and shares isas until after the mortgage was gone but we did overpay into pensions. It sounds like you are well sorted for that. 

As for cash savings, rates are pitiful now but regular savers offer best returns so good plan to use them. We keep our emergency savings and our buffer fund in Yorkshire Building Society but the rate is still only 1%. A lot keep it in premium bonds but National Savings have recently drastically reduced interest rates and PB prizes. The rest of our money is in stocks and shares isas. Initially I managed it myself for 5 years when the portfolio was smaller and just invested in a medium risk multi asset fund of index trackers but now we have an IFA as my husbands lump sum and sale of a property meant the portfolio was too high for me to confidently manage it. If you are starting out look at some monevator articles on investing for beginners. The savings and pension boards are helpful. 

mamamu

MB148 said:

Well done!! That must feel incredible
If you save up as quickly as you have paid off your debt then you should easily achieve your goal, serious progress!

Savings will go slightly slower as travel budget was 0£ since March. But I am budgeting  
 for some adventures and nice trips now too.