The Case of the Overwhelming Mortgage

AgathaSquirrel

We’re aiming for £12000 each as well. We also intend to give a monthly amount to top up. At the moment this is likely to be £100 which is the equivalent of monthly allowance and activity cost. We will lose child benefit next year so will be a bit of a loss but nothing unmanageable. So glad we started saving for university early. Can’t imagine having to pluck £3000-£4000 per year (x 2 as they will crossover) out of our normal budget.

edinburgher

Top up sounds very helpful for children. I intend to put a floor under ours (so no more money unless it's for wedding/significant other one time life event), but I do swither with the idea of uprating for inflation if we're feeling flush. The nominal parental contribution hasn't changed for years in Scotland 🤔

We're about 40% there, 10 years for DD1, 15 for DD2.

Anyway, enough about us, excuse my rambling 

AgathaSquirrel

There is a cost of living crisis for students at the moment. I want to provide a bit of a buffer. They will be expected to work to fund beyond the basics. Many parents pay accommodation costs and the students live off the £8000 loan. We’re not in a position to do this but I’m ok with that. I think they will be ok with what we’re planning.

AgathaSquirrel

Playing around with figures for retirement at the moment. A lot of ifs, buts and maybes in there, especially as I haven’t seen an up-to-date pension statement since 2022 but looks like at the moment we are projected to have £35,519 per year by the age of 60. I want us to be in the moderate category of £43,900 per year. We are therefore £58666 short. Medium term we aim to pay off the mortgage and university savings in the next 4 years. This gives us 6 years to heavily save. Looking at some stocks and shares ISAs in the short term. Don’t have much extra to save at the moment but can chip away at it until the mortgage has gone and students savings complete. Reality is I will probably work part time beyond 60 for a few years but it would be nice to be in a position to go at 60 if that’s what I want to do.

glass_half_full

For what it's worth I think you are doing really well. It's hard to balance everything. Do you (or your OH) have access to AVCs or the like with your pension schemes with high growth funds? Time is in your side so anything you do now can really pay off.

AgathaSquirrel

Thank you.

Not specifically AVCs (I don’t think) but I am buying extra years for my NHS pension. My husband has increased his work pension but I’m encouraging him to pay in more. 

glass_half_full

Extra years sounds good. Pension contributions seem hard to prioritise when there are more immediate things like mortgage and uni costs etc. However I think you are right to be thinking about it because the effect of what you both do now will be compounded and greatly benefit you later on. Ps I realise I am preaching to the choir!

AgathaSquirrel

Compound interest is a wonderful thing!

AgathaSquirrel

DH gets paid on Monday. We have cash in the drawer to pay for tonight’s takeaway and I only need to buy a couple of items for a meal I’m prepping for later in the week so looks like we aren’t going to dip into savings this month. In fact we looked to have a good cushion so I moved over an additional £300 about 10 days ago so in total to that account we have saved £800. DH being on Mounjaro has led to significant family savings. I have also been trying to be better and planning the meal prep alongside the Asda online order so I’m doing less popping into M&S to top up our food shop. I’ve also been frugal with my own account and not treated myself to outside coffees unless I’m actually meeting someone for coffee. I’ve now saved the money for the health related item so that means I now have £150 from my own budget to put to other things. I do need some new clothes so will look at that when I’m paid.

Next month is expensive. House insurance is due. I have 3 work trips away and 1 family trip away. Work also starts on the garden towards the end of the month. The £12000 should be saved by the end of September and the additional £1500 will come from our joint savings account which is why the £800 saved this month is so pleasing. It’s unlikely we can sustain that level of savings but I’m hoping we are able to successfully save the £500 a month that goes into that account instead of dipping into it at the end of every month which is what usually happens. July wasn’t terrible either. We moved £50 at the end of the month so still saved £450. Hopefully moving in the right direction.

savingholmes

Huge congratulations 🎊 to your DD.

Well done on uni savings