Designing my new life

in Debt free diaries
49 replies 3.2K views
I have often thought about starting a diary on here but always chickened out. However having recently started a running training journal around 4 months ago I have been surprised at how much more accountable it has made me, so figured the same principle would hopefully apply.

A bit of background I am married with 2 adult kids and 2 grandkids.

I work full time and have spent a lot of time in and out of debt. The maximum was around 17k on CC a couple of years ago, a combination of poor budget management , impulse spending and some bad luck thrown in. I cleared it all however still have a car loan to clear and have crept back up to £1594.73 on the CC. Car loan sits at £3656.80, and has 13 months to go. The Car has 5 years manufacturers warranty remaining so will not be replacing until at least after that expires although probably longer.

i had been due a bonus from work which would have cleared both but due to this wretched Virus this won’t now be getting paid, which is a shame but not unexpected. Luckily my job seems secure for now. One thing I have done well with financially is paying into my pension. I have a Final Salary scheme which I can access at 50 or if not I then need to wait until 55. 

This is related to my lightbulb moment, I have a mortgage balance of 160k which costs 1109 a month which would be paid of when I’m 65 and I have been making some overpayments to try and reduce this timescale as when I get to 55-57 range I will have a good pension for a comfortable retirement but only if there is no mortgage payment.

i was able to get an illustration of benefits if I took them now just in case things change with my job. What struck me was that if I had got my debt clear and mortgage paid down I could possibly have retired now!! I don’t think I would have but by not being financially prudent I have denied myself the option. On discussing with my DW I reflected that we have spoken about downsizing and moving to a cheaper location by the coast when we retire  (we love the ocean and the beach and years ago had a caravan by the coast) why do we not look at doing that NOW and try and get MF in 3 years.

To my surprise she agreed it made sense and was on board. Hence the username change and new account this is a new approach to design the life we want so I don’t have to work longer that I want to. 

So plan is to pay of CC over period of 4 months at 400 a month then turn my attention to the Car loan.

We have the house ready to go on the market and will get that arranged next week, they are selling Like hot cakes at the moment.

I reckon we have about 65 k equity in the house and where we are looking to buy there are properties that would suit in the 100 to 140k range which would leave a balance or 35 to 75 depending. It will be a long term home so we need to ensure it is right. 

It it feels good to have a plan 😀

Thanks for reading 
«1345

Replies

  • Dropping by to wish you luck and well done for making the leap 
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  • designingalifedesigningalife Forumite
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    Dropping by to wish you luck and well done for making the leap 
    Thanks very much 😀👍
  • designingalifedesigningalife Forumite
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    Ha !! Tempted fate by saying my job seems secure, the following day heard that significant downsizing is imminent so there we go 😔

    Still makes my plans all the more important, Estate Agents are booked for Wednesday so that is the first step, 

    i am awaiting some some feedback from the pensions regards some specifics of taking my pension. It may make a difference to the plan depending on what they say.

    Having discussed our move and looked at some properties in our desired coastal location we have altered thing slightly and will be moving closer to where our Grandkids are, logistically it is much better as we babysit 2 days a week and it’s a 90 minute trip each way. Also means 0445 rises and 1030pm returns. Moving close means no more pre dawn trips and will save me around 200 pounds a month in fuel, the budget for out our new property remains at 140k there is plenty available in that price range. 

    I will I’ll have to figure out how to add my totals in my signature, payments due out shortly so will be good to see the number going down. 😀
  • SarahwithloveSarahwithlove Forumite
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    Hello and welcome aboard. Sounds like you have a good plan in place and a significant drop in your monthly mortgage payments will certainly help you get closer to early retirement. 
    *RBS credit card - £1930.50* - £0.00
    *Tesco Credit card - £3604.30* - £0.00
    *Finance - £581.91 - £0.00
    *Dad loan - £5300 - £3800
    *M+S Credit Card - £0
    *MBNA Credit Card - £1211.88 - £0
    *Virgin Credit Card - £3075 - £0
    *Total debt - £3800*
    *Sinking Fund - £2500/£2500*
    *Emergency Fund -£250/£5000*
    *Mortgage Overpayment - £46.90/£1000*
    Premium Bonds - £200/£1000
    Facing Reality - My Debt Free Diary
  • designingalifedesigningalife Forumite
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    10 Posts First Anniversary Name Dropper
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    So quick update , some payments went out so balances as follows

    Car Loan - 3682 - 3364 - 91% remaining

    Mortgage

    160582 - 159409 - 99% remaining

    1594-1594 - 100% remaining

    Have put aside £200 pounds for half of major car service due next month.

    In other news estate agent was round to day, and we have agreed valuations and signed contract to put on the market. Just waiting on Photographer.

    Of course lockdown may affect our ability to sell but we have decided to stick to the plan as who knows what will happen so we just have to wait and see. It is no sale no fee and they are the top estate agents in the area and reckoned there is a shortage of properties in this price band and that out property was “immaculate “ so it’s all in the hands of fate now 😂.

    It is exciting and nerve wracking all at the same time. Fingers crossed 🤞 

    Next paid in 8 days time so will make a good payment to the Credit Card then.

    Got Grandkids Xmas before shops shut, just clothes etc as it is less for their mum to have to worry about spending on. We will be spending less this year for sure, both myself and daughter are working and unable to visit family up north as we usually do so that is money that won’t be getting spent 😔

    Stay Safe👍
  • I think the being closer to the grand kids sounds a great idea.
    I think you should plan, in these awful times its the dreams that will help us rise above the nightmares.
    I fear it'll be a long time till it will pass.
    Fingers crossed for a quick sale
    PAYDXMAS21 #41 900/900
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  • ChrystalChrystal Forumite
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    Wishing you the very best of luck with everything.  My sis put her home up for sale last week and it sold within 2 days, so I'll keep my fingers crossed for you.
    It sounds as though a move nearer DGC will be a boon for all of you.  :smiley:

    I Believe.....
    That it isn't always enough, to be forgiven by others.
    Sometimes, you have to learn to forgive yourself.

    Yesterday is history, tomorrow is a mystery
    Today is a gift. That's why it is called the present.

    happiness isn't achieved by getting extra things,
    but by getting rid of the things that make you unhappy
  • designingalifedesigningalife Forumite
    52 Posts
    10 Posts First Anniversary Name Dropper
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    I think the being closer to the grand kids sounds a great idea.
    I think you should plan, in these awful times its the dreams that will help us rise above the nightmares.
    I fear it'll be a long time till it will pass.
    Fingers crossed for a quick sale
    Hi could save more, thanks! Yes it does give something to focus on and feels like steps forward 😀
  • designingalifedesigningalife Forumite
    52 Posts
    10 Posts First Anniversary Name Dropper
    Forumite
    Chrystal said:
    Wishing you the very best of luck with everything.  My sis put her home up for sale last week and it sold within 2 days, so I'll keep my fingers crossed for you.
    It sounds as though a move nearer DGC will be a boon for all of you.  :smiley:

    Hi Chrystal , Thanks! Here hoping we have a similar experience to your sister, houses are selling well but that was before the current lockdown, so a bit nervous but what will be will be I guess 👍
  • SarahwithloveSarahwithlove Forumite
    2K Posts
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    Forumite
    Good luck you have a quick sell I agree moving to be nearer family is ideal and you'll hopefully have a better work, life balance 
    *RBS credit card - £1930.50* - £0.00
    *Tesco Credit card - £3604.30* - £0.00
    *Finance - £581.91 - £0.00
    *Dad loan - £5300 - £3800
    *M+S Credit Card - £0
    *MBNA Credit Card - £1211.88 - £0
    *Virgin Credit Card - £3075 - £0
    *Total debt - £3800*
    *Sinking Fund - £2500/£2500*
    *Emergency Fund -£250/£5000*
    *Mortgage Overpayment - £46.90/£1000*
    Premium Bonds - £200/£1000
    Facing Reality - My Debt Free Diary
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