Aiming for Mortgage Free!

eat_that_frog

Yes I suspect same here I don't think overpaying the mortgage is something any of our friends are doing either. For me and my husband it makes complete sense because our term is fixed for 5 years so we want to be in the best possible position to access better rates and offers when we come to remortgage. And it sounds like that's similar for you too. 

What you said about budgeting annual vs monthly as very interesting. Like you, if we have car insurance renewal, we just pay it in full that month. We both have the salaries and money left over after mortgage and utilities that we can do that without worrying, so we've always done it like that. But now I'm wondering if there's a better way to look at it.

caeler

@rugbymadfamily and @eat_that_frog - You are both totally right, this forum is fantastic for motivation and sharing news.  None of my friends are interested in overpaying mortgages either.  

QueenJess

Yep, I agree.  No one I know is overpaying their mortgage and if I ever mention it I get very odd looks.  If I told people I paid extra into my pension to offset the fact I won't be working for a year or 2, I'm sure I'd get the same response.

It's a bit scary that I talk to a lot of accountants at work and many of them have told me they don't really know where their money goes and they don't save anything 

rugbymadfamily

I'm now strongly in the camp that I think the saving monthly for annual payments is a great idea! I've started doing a 2021 cash flow based on expected monthly costs and it just means each month looks much smoother, rather than having some months with a large expense (eg car tax and insurance). 

I actually have problems spending money without feeling really guilty (to do with growing up with very little money I think), but looking at the "pots" type situation, think it will help as will mean I know there is money there and budgeted for so it is ok to spend it.....not sure that makes any sense to anyone but me lol?! I've always been very careful with money despite earning a good wage, might not look like it given we don't have huge amounts in savings at the mo (thanks to house deposit and associated costs plus recently getting married) but hoping the pots will give me more freedom to spend (within budget obviously lol).

caeler

Hi @rugbymadfamily I totally understand your guilt.  I'm better than I was but I hated spending money, it was a mix of guilt and resistance I think because years ago I was in serious debt and it took a long time to sort myself out. I also use pots so when there are expenses I know I'm "allowed" to spend.  A bit like Christmas, I prepared my budget so I could relax and spend what I needed.  Although overall I am pleased I'm cautious with money, I never was and got into trouble!

QueenJess

rugbymadfamily said:

I'm now strongly in the camp that I think the saving monthly for annual payments is a great idea! I've started doing a 2021 cash flow based on expected monthly costs and it just means each month looks much smoother, rather than having some months with a large expense (eg car tax and insurance). 

I actually have problems spending money without feeling really guilty (to do with growing up with very little money I think), but looking at the "pots" type situation, think it will help as will mean I know there is money there and budgeted for so it is ok to spend it.....not sure that makes any sense to anyone but me lol?! I've always been very careful with money despite earning a good wage, might not look like it given we don't have huge amounts in savings at the mo (thanks to house deposit and associated costs plus recently getting married) but hoping the pots will give me more freedom to spend (within budget obviously lol).

I agree that it is so much easier.  Makes it slightly boring if nothing else as I've budgeted this way for years and find I can be pretty accurate when I set my budget for the year!  I usually round up my categories to make it a nice number to go into the budget, but also gives a bit of leeway as there's always something you want to spend a little bit extra on and so you can shuffle money between categories.

I have a slightly similar problem, but mine is with saving.  I always target more and more savings (from the same salary amount lol) and beat myself up when I don't meet it.  Then when I do meet the target I think ok, well let's see if that can be improved on this month!  In reality I think I've already reached the stage where there is little to cut back on (without reducing the quality of life) and so should just give myself a break!

I think Covid makes it worse (plus pregnancy) as I have a zero chance of a holiday next year, so I keep thinking I may as well save as much as physically possible now since I can't do anything exciting for a while.  Hopefully when the time comes I will actually let myself have a nice holiday!

eat_that_frog

Yes ditto I also sometimes experience money guilt, again I think also linked to a childhood where on the outside my parents looked comfortable but under the surface actually there were some real money issues. Those things really do shape subliminal messages for children and I think the message I took away was 'save don't spend'. Similarly my husband comes from an asset rich, cash poor family, and he also has a 'save don't spend' mentality. 

rugbymadfamily

Fully agree on the save now while there isnt much interesting we can do!

It is funny how our situations growing up really influence our adult relationships with money. My parents saved for everything, we had very cheap holidays with lots of family time, birthdays and Christmas were celebrated but within reason.....which has all rubbed off on me. My husband family was (and still is!) all cars on finance every 3 years, big spends on CC, brand names for everything and haven't got 2pennies to rub together in actual cash. It really influenced his 20s and almost split us up when we first started dating as I had no interest in living like that...thankfully he has come around to my MSE way of thinking 😜

rugbymadfamily

It's been a fairly speedy weekend and we are heading out for dinner this week as well, mainly because I know we won't be allowed for quite sometime and secondly to support our local establishments in the hope they will be able to survive the lockdown. Plus I'm guessing we will have minimal entertainment spend for the next 4 weeks!

Made another £115 on MB last week so have sent that to mortgage OPs. Feels good to keep it ticking over, with salary focusing on reaching my EF target.

Off for a food shop this evening as I couldn't face it at the weekend - hoping it won't be top busy!

rugbymadfamily

Shopping last night was nowhere near as busy as I had expected and despite reading a number of news articles about panic buying, there certainly didn't seem to be any of that (M*rrisons were well stocked with toilet roll, pasta and baked beans ).

Have been setting some goals for lockdown, main one this time round is eat less and exercise more lol. Plus a few little projects for the house which will give me something to keep me occupied so that I don't go crazy. Want to sew some cushions (have all the material - just need to do it!) and hopefully get some decorating done, but that will depend on work load....it could get pretty busy again. At least with lockdown this time, we know a bit more what to expect so can prepare better for it!