Time to Face The Music

RelievedSheff

enthusiasticsaver said:

RelievedSheff said:

@enthusiasticsaver the £250 is definitely getting saved every month after the last car loan repayment in February. Although the van tax, insurance, MOT, and service will all be due around the same time so it will go towards those costs first. 

I need to decide what to do with the extra money we will get from the end of January from my pay rise now because it works out at a not inconsiderable amount and I would prefer that had a purpose rather than just getting lost in general spending as well.

In fact in the next 6 months or so we will need to have a general review of what is happening with money because we have a few accounts that will be paid off so we need to review what money is going towards additional payments on the remaining credit cards and what is going into savings and general spending. 

That is a pretty good problem to have.  You presumably have lots of options other than saving for van expenses like  mortgage or pension overpayments (given I guess that early retirement is probably an aim for you) or a holiday fund for your trips or replacement car if needed.  Having a balance is a good objective.  To be honest with the financial discipline you have now it is difficult to see how your personal debt got as high as it did unless you have had a massive change of spending behaviour.  

My pension already gets very good monthly payments with the salary sacrifice scheme that the company holds and the very generous payments that my employers put in, so I don't think that would be where we would put any spare money.

Over payments on the mortgage may be one option but we already plan to have that paid off in 11 years from now. So I really think that we need to start looking into options for saving and investing money so that we have access to money when we need/want it.

I will certainly be retiring early (I am 10 years younger than the other half and we want to enjoy retirement together) so we need to make sure that we have enough money to fund that until I can claim my pensions.  

milann

What a lovely position to be in…..must be better than struggling robbing Peter to payPaul 👍👍

RelievedSheff

milann said:

What a lovely position to be in…..must be better than struggling robbing Peter to payPaul 👍👍

It will be nice to be in that position after so many years of just muddling by and struggling on.

I really do think that the whole Covid situation has given us the kick that we needed to start sorting out our finances. That and the biggest help was selling the boat. That was a bottomless money pit!

We have a long way to go before we are completely debt free though

milann

You’ll get there 👏👏👏

EssexHebridean

Selling the boat and switching for the van really has been a godsend hasn't it - similar sorts of freedom to go places but without the additional hassle of the travel time to and from as well. 

I think the pandemic has persuaded a lot of people that a bit more of their focus needs to be on finances to be honest - and even a lot of those who were fairly focused anyway have been inspired to do a bit more, I think. 

RelievedSheff

EssexHebridean said:

Selling the boat and switching for the van really has been a godsend hasn't it - similar sorts of freedom to go places but without the additional hassle of the travel time to and from as well. 

I think the pandemic has persuaded a lot of people that a bit more of their focus needs to be on finances to be honest - and even a lot of those who were fairly focused anyway have been inspired to do a bit more, I think. 

Realistically we should have sold the boat years ago. The costs of keeping it (moorings, licence, safety test, insurance), then maintaining it, then running it and on top of that the social scene were just too much for us. 

We realise that now but at the time it was hard to admit that we couldn't really afford it.

That said we have brought away from it some amazing memories and have been to some amazing places with it.

The van is much more affordable and we are enjoying exploring the many new places that we can visit now that we are not limited by where the rivers go 😃

warby68

The start of a new year is always a good time to take stock

You have come a very long way in one year and its all good. Your lifestyle now is the envy of many no doubt. 

After a meeting with the accountant, we are ending the year with paying our mortgage off completely. Part of it anticipates next year's income but the cash is there now so we have gone ahead. It is the absolute best feeling.

Sun_Addict

warby68 said:

The start of a new year is always a good time to take stock

You have come a very long way in one year and its all good. Your lifestyle now is the envy of many no doubt. 

After a meeting with the accountant, we are ending the year with paying our mortgage off completely. Part of it anticipates next year's income but the cash is there now so we have gone ahead. It is the absolute best feeling.

Fantastic @warby68 🥳

milann

Well done Warby….it’s a great feeling isn’t it 👏👏

EssexHebridean

warby68 said:

The start of a new year is always a good time to take stock

You have come a very long way in one year and its all good. Your lifestyle now is the envy of many no doubt. 

After a meeting with the accountant, we are ending the year with paying our mortgage off completely. Part of it anticipates next year's income but the cash is there now so we have gone ahead. It is the absolute best feeling.

Oh congratulations Warby - that is indeed a wonderful feeling! Don’t forget to post on the MF Roll of Honour and get your badge!