It's the final countdown...£10k to go

enthusiasticsaver

You are doing really well and yes it is a good idea to think of things to save for once the debt is gone so you don't end up loosening the purse strings too far and end up frittering the surplus. 

Overpaying the mortgage is a good one. I would recommend a bigger emergency fund to start with but from the sound of it you have a decent one now. 3-6 months outgoings is a good start. Longer if either of you are in insecure employment.

overpaying the pensions  actually makes more financial sense due to tax benefits and low interest rates.

starting a stocks and shares isa if you are open to investing.

new car, bigger house, home improvements or long haul holiday? 

Exciting to think of possibilities and these here are just a few. 

mark55man

I agree with the neutral mentality.  Once its paid into the CC (or even more so the mortgage) you really don't want to be spending it again, but yet it may give you piece of mind to have the cash ready - in a kind of EF sort of way (but without counting it twice)

Well done as well for having the will power to just grow that pot.  This time next year, although that pot will have done its job, you will be well on the way to replace it with one that is genuinely-for-you savings

t2rry

mark55man said:

I agree with the neutral mentality.  Once its paid into the CC (or even more so the mortgage) you really don't want to be spending it again, but yet it may give you piece of mind to have the cash ready - in a kind of EF sort of way (but without counting it twice)

Well done as well for having the will power to just grow that pot.  This time next year, although that pot will have done its job, you will be well on the way to replace it with one that is genuinely-for-you savings

That's exactly what it is, @mark55man, it's the piece of mind having something in a pot somewhere, just in case.  And for some reason, I've learnt over the years that I'm better at saving into a growing pot than I am paying off - I think it's the mentality of it being set aside and not for touching, whereas if I ever have need (due to budgeting fails/unforeseen spends/credit card protection) to add to the credit card when I've thrown every penny at it, it feels like a massive step backwards and I end up thinking 'sod it', which inevitably always turns into a leap backwards rather than just that step!  This way I usually seem to be able to jig things about a little more because I'm so determined not to let the CC balance increase but equally hate seeing the saved pot decrease!

t2rry

enthusiasticsaver said:

You are doing really well and yes it is a good idea to think of things to save for once the debt is gone so you don't end up loosening the purse strings too far and end up frittering the surplus. 

Overpaying the mortgage is a good one. I would recommend a bigger emergency fund to start with but from the sound of it you have a decent one now. 3-6 months outgoings is a good start. Longer if either of you are in insecure employment.

overpaying the pensions  actually makes more financial sense due to tax benefits and low interest rates.

starting a stocks and shares isa if you are open to investing.

new car, bigger house, home improvements or long haul holiday? 

Exciting to think of possibilities and these here are just a few. 

ooh so many good options, @enthusiasticsaver, can I say yes to all of the above!? 🤣

One thing I do need to do is get a better understanding of pensions over the next few years, we have a long way to go to retirement (I'm 'only' 10 years into my working career) but that means we have the opportunity to be ahead of the game.  We are both in good pension schemes now through work but I have 2 other tiny pots from previous employers that I need to do something with, I've really no idea what or how yet though, and they really are tiny -  something to think about though and you're right, a good shout for overpaying to.

I'm just so excited to have those sorts of decisions to make rather than 'we need x but it's going to cost £200, can we wait 2/6/12 months?'

enthusiasticsaver

If you are only 10 years into your working lives then yes you have plenty of time but pensions are best dealt with young as they then have plenty of time to grow and gives you options at the middle or end of your working life. Putting in small incremental increases in your early 30s and building up gradually is better than realising you have not saved enough in your 50s. A good start is to get quotes and your options from the small presumably DC (defined contribution) pensions and decide then whether to transfer to existing occupational pension or into a separate new SIPP. You need to make sure that you don't lose any special protections by transferring though. Pensionwise may be able to help. That is a free advice service set up by the government. 

t2rry

That sounds like brilliant advice, thank you so much @enthusiasticsaver - I will take a look at Pensionwise, I must admit I'd never heard of it before.  And you're so right, I should have sorted my two small pension pots before now, they might not be worth much but they'd have been doing something rather than nothing over the last couple of years at least.

t2rry

More xmas shopping being slowly but surely ticked off the list, I have 6 people left to buy for, so nearing the end of my saving in this too, I’m not sure I have enough budget left to spend to quite make the £200 mark but I’m going to give it a good try!! Honestly it has been so much less stressful this year, having a good budget for it and taking the opportunity to concentrate on what I can save rather than what I’m spending! So often saving / budgeting is about the psychology isn’t it. Why I’m better at saving in a growing pot rather than knocking off a CC, why putting money aside at the start of the month not for spending is better than transferring leftover money at the end of the month. It’s all about how it works best in my head, how I can make myself forget about money sat somewhere so in my head it’s not an option to spend. And with this xmas savings, rather than seeing how much I’ve spent, I don’t feel that pinch but instead see a nice pot that otherwise I wouldn’t have had, it’s a nice little bonus. When I’ve finally finished all gift shopping, I will transfer whatever I’ve saved to the banked pot, hopefully making it enough to balance out my CC completely but if not, it’ll be very close. 

t2rry

'minimum' payment off OH CC, just waiting for my statement to come through so settle what will stay banked vs pay off anything accruing interest.  

We are both due to get paid early this month, just before xmas, so hopefully late enough that there can be no panic gift purchases with it, but early enough to maybe have some leeway with the  currently tight food budget.  

I have been wondering whether to count December's pay in this year's 'saved' total, or whether it should go through into next year.  I can't remember whether I counted last December in this year or last year.... so I could end up having 2020 an 11 month year or 13 month depending on which I did and which I do...!

I think I might keep it in this year...it'll be our best year ever either way, but if I keep it in this year then I'll feel like I'm starting from scratch in January and will hopefully want to push my targets into the year well to do better than this year in terms of savings.  If by doing so I've made 2020 a 13 month year then beating the savings will be a harder target to achieve and hopefully spur me on more to do so 

Legs21

Well done on getting a grip on your spending, saving and budgeting. You’re going great guns. 

I normally get paid on 25th of every month but will be paid on 21st December this year, so that will be shoved over to a savings account and brought back over on 25th so there’s no temptation to spend any of it on Xmas, otherwise January will be a very long month. 

Sarahwithlove

Could you maybe split it half and half so some comes in this year's savings and some to kick start next year?