The great life reset

Hi
2020 has been the ultimate reset for me. In 2018 I was bitten by the frugal bug and wanted everything paid off. Frankly, I made my husband, myself and my two daughters a bit miserable as there was never any money in the budget for fun. I'll go into detail of my finances in the next post. Our debt was paid off, our mortgage refinanced to a higher monthly payment for a reduced term rather than rely on us making over payments.  Then 2020 hit. Covid, and its disruption to normal life is a definite factor and the decline in my kidney health has lead to a best estimate of 8-10 years before dialysis. It has changed my attitude to extreme frugality. 
I now want to live well.
This diary is about balancing the saving/mortgage reduction with having a good life and reminding me not to get too caught up in being too frugal. I am hoping for lots of little savings that add up.
December 21 savings target £16245 for offset balance of 70k ACTUAL £18082.30 offset balance £68,185.65

Target Dec 22 £8625 for offset balance of £48k ACTUAL

Target Dec 23 £9301 for offset balance of £25k ACTUAL 

Target Dec 24 £10971 for offset balance of £0 ACTUAL
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Comments

  • So finances
    Mortgage will be paid off in February 2028, this is 5 years and 9 months earlier than our original term. Mortgage currently stands at about £98k 
    Monthly repayment is £1275.
    Emergency savings £2200
    Long-term savings £10500
    We put away £900 in savings per month.
    No debt other than the house but previously we had £13k we paid off between 2018 and start 2020.
    December 21 savings target £16245 for offset balance of 70k ACTUAL £18082.30 offset balance £68,185.65

    Target Dec 22 £8625 for offset balance of £48k ACTUAL

    Target Dec 23 £9301 for offset balance of £25k ACTUAL 

    Target Dec 24 £10971 for offset balance of £0 ACTUAL
  • Well done Bella, you seem very determined like myself.
    I've been lucky with 2020 as the pandemic hasn't affected me whatsoever.
    However, I came into the mindset that I could use the situation in upping the overpayments even further due to not spending. Time spent at home was spent analysing the incomings/outgoings and my household budget as a whole.
    The result after a few extra cost trimmings here and there have meant that a £500 overpayment + £537 normal mortgage payment (£1037 total per month) although not easy, it's doable.
    With all the economic doom and gloom seen daily on the news I put myself in with those that are less fortunate - I place myself as one of those who are suffering the economic pain and although it's a self inflicted "fake economic pain" - it is working.
    Throwing the big overpayments in every couple of months breaks my heart but I try to remember one word - "temporary", it's not forever, the pain now will see me owning outright in 2 years.
    Good luck with your plan Bella, I hope it works out for you.
    £52,365 owing December 2017.Now for the final countdown..1st Jan 2021 - £29,316 -- 1st Feb 2021 - £28,809 -- 1st Mar 2021 - £27,309 -- 1st Apr 2021 - £26,811 -- 1st May 2021 - £26,315 -- 1st Jun 2021 - £25,811 -- 1st Jul 2021 - £24,311 -- 1st Aug 2021 - £23,809 -- 1st Sep 2021 - £22,305 -- 1st Oct 2021 - £21,798 -- 1st Nov 2021 - £20,292 -- 1st Dec 2021 - £19,783 -- 1st Jan 2022 - £18,276 -- 1st Feb 2022 - £17,762 -- 1st Mar 2022 -£17,248 -- 1st Apr 2022 -£15,713 -- 1st May 2022 - £15,202 --1st Jun 2022 - £13,703 -- 1st Jul 2022 - £13,184 -- 1st Aug 2022 - £11,665 -- 1st Sep 2022 - £11,144 -- 1st Oct 2022 - £9,822 -- 1st Nov 2022 - £9,298 -- 1st Dec 2022 - £7,572 --1st Jan 2023 - £7,045 -- 1st Feb 2023 - £5,516 -- 10th Feb 2023 - £5,518 Overpayment Pot @ 10th Feb 23 = £5,518 / Primed = £0 / Actual debt = £0!!!! "Yes, the medicine is harsh, but the patient requires it in order to live, should we withhold the medicine?" Hopefully at zero mortgage debt by December 2022 or very close to it. Determined for freedom! 🍻🥂🍸🍹.
  • Porridgecat
    Porridgecat Posts: 311 Forumite
    First Anniversary First Post Name Dropper Photogenic
    Just seen your diary come up. I'm also new on the board. 
    We're in the lucky situation that we've only got bout a year to go with the overpayments we're making but I also found when I first realised that I could see the end that I wanted to throw everything at it. I budget now for enjoyment and holidays (they're our big weakness) and I also found it much easier when I decided to split any extra money after the budgeted overpayments between overpayments and various savings pots. It takes having to make the decision each time away as I would keep thinking I was neglecting one of other pot.
    Mortgage Free 23 December 2020
    Savings £9671 / £20 000 goal
    Emergency Fund £216 / £1000 goal
  • Great title. I fully agree it’s all about striking the right balance between saving / over paying whilst maintaining a good quality of life and making memories with your loved ones. 
    New to all this!
    Mortgage balance 01/01/21 £181,400. Scheduled repayment date Aug 2036. 
    Target savings to overpay in 2021 £12,000
    Progress to date  £7105/£12,000 
  • Hi thanks for dropping by.
    Thriftmaster1973, exciting times for you with that two year push to the finish line. Porridgecat  everything in 2020 has made me realise i don't want to put off holidays and enjoying ourselves  but it needs to be mindful spending on these items not oops I just spent £40 on a day out without really knowing what I  bought. I am designing many different pots too to try and catch everything so as to not distract from main savings. Good luck on your journey.
    Spendingpennies, thank you. I really want to get the balance right as I definitely missed the mark last time. I  now think 4 or 5 more months with the debt might have made everyone happier rather than my mad rush.
    December 21 savings target £16245 for offset balance of 70k ACTUAL £18082.30 offset balance £68,185.65

    Target Dec 22 £8625 for offset balance of £48k ACTUAL

    Target Dec 23 £9301 for offset balance of £25k ACTUAL 

    Target Dec 24 £10971 for offset balance of £0 ACTUAL
  • So food is a big thing for me. I love it so my food bills won't be as low as people would be used to on a mortgage free diary. I  budget £320 a month or £80 a week for a family of 4. I also have two food issues, I have to keep salt intake low, so I make almost everything and one of my kids has to follow a gluten free diet which is plain expensive. Necessary but so expensive 😫 roughly 10% of the weekly shop goes on gluten free items.
    I am trying to master gluten free baking/cooking to cut costs
    This week's meals are:
    Sat 
    Pulled pork, buns, corn on the cob, salad (always a hit)
    Followed by our first attempt at gluten free profiterolls, amazingly they were delicious.
    Sun attempting gluten free pastry for a leek, bscon and chicken pie with new potatoes.
    Mon Greek rice and balsamic and brown sugar salmon 
    Tues left over pulled pork and greek rice reappears in stuffed peppers and salad.
    Wed fake away donner kebabs
    Thursday thai chicken and brown rice
    I run my food menu Friday to thursday, so haven't planned for next week yet. 
    This week's soup is tomato and courgette for lunches 
    December 21 savings target £16245 for offset balance of 70k ACTUAL £18082.30 offset balance £68,185.65

    Target Dec 22 £8625 for offset balance of £48k ACTUAL

    Target Dec 23 £9301 for offset balance of £25k ACTUAL 

    Target Dec 24 £10971 for offset balance of £0 ACTUAL
  • Porridgecat
    Porridgecat Posts: 311 Forumite
    First Anniversary First Post Name Dropper Photogenic
    Food isa big thing for us as well. Ours is normally eating out though as there's just the two of us. We spend around £70 a week but this does not include the national GDP we spend every month on cat food! I have some practise at gluten free at school and I find the Dove's farm flour is good for most things, it works just like ordinary flour for cakes and scones its a bit more crumbly for biscuits but we just get the students to roll them into balls and flatten them with a fork instead of rolling and cutting out. Pastry is a lot harder though, roiling it between two sheets of baking paper helps as does not getting stressed about patching it together numerous times. 
    I've currently got lentils soaking to attempt lentil wraps as a potential new school recipe using vegetable protein. It's just lentils water and salt that you soak and then blend to make a batter and then fry like pancakes. I'll let you know how they work out.
    Mortgage Free 23 December 2020
    Savings £9671 / £20 000 goal
    Emergency Fund £216 / £1000 goal
  • Ooh sounds like a dosa, the lentil pancake. A friend makes hers with leftover daal, with an extra hit of ginger and coriander. When I  was pregnant and puking, these with melted butter were about the only thing I could keep down. I  find with biscuits an 1/8 of a teaspoon of xantham gum works and you get that cookie crispy on the outside chewy in the middle texture. I have never even tried making normal pastry so thanks for the tip, will definitely roll it between baking paper. Keep me updated on your wraps please!
    December 21 savings target £16245 for offset balance of 70k ACTUAL £18082.30 offset balance £68,185.65

    Target Dec 22 £8625 for offset balance of £48k ACTUAL

    Target Dec 23 £9301 for offset balance of £25k ACTUAL 

    Target Dec 24 £10971 for offset balance of £0 ACTUAL
  • LeighofMar
    LeighofMar Posts: 672 Forumite
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    Welcome with your new diary. It sounds like you've struck a nice balance between mortgage freedom and living now. That's always important. 

    Oh the joys of gluten free baking. I've been at it 5 years now so I would say I do pretty decent but there was definitely a learning curve in the beginning. But this weekend we will be making one of hubby's favorites, a chocolate peanut butter cup pie, no bake. He is not on any diet and loves the sweets and treats I make so that says something. 

    Your weekly menu sounds delish. 
    Mortgage start date Dec 2015 - $64,655.00
    Mortgage end date Dec 2045 - NOT!!!!
    Mortgage balance  - $4600.00
    Business Savings $43,310/100k
    Hope to be mortgage-free by end of 2023 
  • Porridgecat
    Porridgecat Posts: 311 Forumite
    First Anniversary First Post Name Dropper Photogenic
    The lentil wraps were a disaster, they just stuck, tried two different pans and went back and watched the video I got it form again and still no joy. I ended up making sourdough wraps instead.
    Mortgage Free 23 December 2020
    Savings £9671 / £20 000 goal
    Emergency Fund £216 / £1000 goal
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