Future Proofing my life: Deposit saving then MFW journey in under 13 years

LadyWithAPlan

TT £6.22 - feeling flush so rounded down in 2 accts as got paid some ., More to come. I will do the shuffle  )
Just trying to figure out taxes, what % sipp and rest hse deposit via PB, ISA etc splits

NSD again 6/13!

I will probably go to a shop tomorrow to get veg in and seeing family at weekend so will go to a lidl on way there then as well to stock up. Being away from London and being in countryside and so busy  is saving me a lot

The frugal challenge 2022 with people spending £4k a year is amazing - so I need to re look at what I feel is essential. I bought that course and been too tired to do it - between animals and work.

Good news is I didnt lose a dog today The horses got checked by a local horse lady and they all fine - the eye is healing and the skinny elderly horse is getting fattened up by me.
Much easier as it is cooler so they are out in the fields.. though getting a fly mask on one horse in the field was easy but the 2nd one was not having it

savingholmes

I think getting on the property ladder as long as you buy the right kind of property and in the right place can majorly add to your wealth over time. They reckon an average of 5% a year. I think in London it's probably much higher. I have a sis who has £300k equity but a small pension so opposite to me. Her wealth is thanks to rising house markets as much as any £ paid off. I just picked the right jobs for pension before I even knew its value. 

Your savings are very impressive. I totally understand your need for an EF given the volatility of your income and the risk of late and even non-payers. At the same time I'd caution against waiting too long... as you are losing out in other ways. 

Well done on the pension savings too. 

Sistergold

You are having very busy days with the animals but it sounds all very exciting. I am also keeping an eye on London property market with interest to see how it goes. It’s definitely calming down in some areas as you can now view without necessarily having a decision in principle and the like. They are also calling after viewing to ask how you felt about the property. The high handedness of the estate agents is going down and so I hope things can calm down a bit. Even if prices don’t go down it will be nice to just have normal viewing pressures and not so much over bidding. I think your target of next year will be okay as the buying frenzie will be over. This is not to say there will not be competition but I think sellers will be a bit more realistic in their expectations. I remember when I bought the house was advertised at £680k when I viewed there was already an offer for £630k and I offered £640k. The lady I bought from had had the offer of £630k and sat on it for over a week(luckily for me) so I asked her what figure will make her happy and she said £640k. Silly me I did not even try to haggle(I have always been bad at it so did not bother), to be honest I was just tired of viewings and felt £10k was not the end of the world if this was it. 

You mentioned that you were getting a good return on your deposit money plus the extra savings I think you will be able to get yourself the ideal flat at a good LTV. I can’t wait to hear about your place when you finally get it! 🧜🏼‍♀️

LadyWithAPlan

Sistergold said:

You are having very busy days with the animals but it sounds all very exciting. I am also keeping an eye on London property market with interest to see how it goes. It’s definitely calming down in some areas as you can now view without necessarily having a decision in principle and the like. They are also calling after viewing to ask how you felt about the property. The high handedness of the estate agents is going down and so I hope things can calm down a bit. Even if prices don’t go down it will be nice to just have normal viewing pressures and not so much over bidding. I think your target of next year will be okay as the buying frenzie will be over. This is not to say there will not be competition but I think sellers will be a bit more realistic in their expectations. I remember when I bought the house was advertised at £680k when I viewed there was already an offer for £630k and I offered £640k. The lady I bought from had had the offer of £630k and sat on it for over a week(luckily for me) so I asked her what figure will make her happy and she said £640k. Silly me I did not even try to haggle(I have always been bad at it so did not bother), to be honest I was just tired of viewings and felt £10k was not the end of the world if this was it. 

You mentioned that you were getting a good return on your deposit money plus the extra savings I think you will be able to get yourself the ideal flat at a good LTV. I can’t wait to hear about your place when you finally get it! 🧜🏼‍♀️

You will be the first to hear   The fact I am paying very reasonable rent - as in comparable to what my monthly interest payment would be on 380/400k mortgage  is  keeping me calm as with getting much better returns on over half of my deposit  on the investment - a very nice 4 figure interest payment arrived this week - the rest of my savings  is in Premium bonds, a H2B isa (£3 off £8000 now plus the uplift if I buy below 500k flat as FTB) and some in my MB float so easily accessible as cash and a s&s ISA thats still £2.5k up despite markets this year.

It sounds like you were clear it was the right house for you and I am glad you are happy there.
I have thought about the 2 places I did see twice last year but I guess I liked as opposed to loved them.

I nearly bought many years ago and just said yes to asking price and they took it off the market ...I loved it and now would have made millions However it would not have allowed me to leave my main career and build a new one with far more freedom and creativity. The good news is I am managing to save loads on a great income. Amazing how focus takes you everywhere! Deciding though I need a garden ideally or a large patio means I do need to think of location to central london vs space.

@savingholmes you are absolutely right on I do need to pull the trigger in terms of house prices  at some point soon - my investment interest rate are out earning london house prices for now  - and I managed to save £2300 approx per month in the last 12 months at 3 days a week. I am living very frugally.
Good you have the pensions mind you vs your sister - lots of people dont want to downsize even though much of their wealth is tied up in their home. 

I  was looking at my pensions etc and thats all on target if I can get a not too expensive  (ha!) home bought and paid for in the next 15 years max. 
So the house is the missing piece in my financial planning but I wont rush in when I currently have an unstable income.

I have an old  DB just under  £7k  i can access at 60 - but don't plan to Early 50s now.
A full SP at 67 and my SIPP at 36k now - I always aim to add everything over HRT to my SIPP - I like to add 10-15% per month of each invoice paid to my SIPP - but I am a bit behind this tax year with these unpaid invoices - will add at least £650 today so that will keep building
So a pension income of minimum £20k a year at 67 is completely  and easily doable now  - if I have a home paid for then I can relax.  My work is such I wont (weird circumstances nonwithstanding) stop at 67 so especially as some of it I love.

Worse case by Xmas  if the side job not kick off I may go get a full on finance job to get the house moving - maybe even employed (ugh)  - I can make 6 figures that way I think
Its just me so its easier and reading the frugality 2022  thread is eye opening.
I will look again at all my payments so I get a base line of expenses again

In animal news I lost a dog this morning - got her back but she and her brother were moving and she slipped out my hands - she is super fast and can jump huge fences - so much so no one lets her off the lead for a walk - i need to get the quad bike out to run her when I have time as they do(!).. She disappeared into a neighbours field but then came back. All before my breakfast!

Need to do dog walks, horses eyes, one pony needs cream in its mane and tail, plus elderly horse second feed.
Oh yes and a lot of work.

One company I work with is struggling - but largely as the director is not frugal at all - it just shows how whatever your wealth levels you need to watch costs in business and in the home constantly as you never know when big clients leave or a recession kicks in. For me having had a lot of wealth and high income  so not thinking about what I spend at an early year then walking away and having to face reality that I suddenly was not making X per month  so now when money comes in I am super frugal and plan it all. My saving pots have been on the go for over a decade and I cut my rent costs years ago. 

This is why I have managed to save my deposit, years of being cautious with what I do have. I dont need to flash cash to prove who I am 

I will TT today, it will not be a NSD as popping to get some food essentials with neighbour but he wants to go to Waitrose - i am happy with LIDL but I will just buy DF milk the brand to replace what I have used and then some OB stuff. I will do lidl shop at the weekend  - but I have not grocery shopped since last Thursday so

Grocery so far Aug 22 £65.02/£170    + 17.50 Sains won card    
£4.50/£30 bulk - 
NSD 6/13

I will move my cash around -
sipp £650 -
taxes - i am not sure so probably £1k in Pbs. (I track separately as PB also have some house deposit)
PBs as part my house deposit 
Baby new isa £400 at least for house.

New interim goal is 50k in PB - at £13k+ at moment. - 

Happy Friday all 

Merlin's_Beard

Sounds like a fairly wild time with disappearing dogs and the like!

I think finding something you like vs you love is definitely a question of how much settling down will benefit you as well - as you say, you could have bought before but only at the cost of missing a lot of opportunities and if you're expecting a more stable income in the close future maybe you're being wise to hold off if you're outsaving price rises.

For me, I was in the right place and the right time and I've settled for a "like" new build rather than a love - but I'm not outsaving the price rises so a completely different equation.

savingholmes

Your house sitting is certainly eventful. 

Good luck whatever you decide re job / vs se etc. You sound very entrepreneurial. As in I wonder if you would struggle in a more corporate role now - particularly if full time as you are used to more freedom...

LadyWithAPlan

Merlin's_Beard said:

Sounds like a fairly wild time with disappearing dogs and the like!

I think finding something you like vs you love is definitely a question of how much settling down will benefit you as well - as you say, you could have bought before but only at the cost of missing a lot of opportunities and if you're expecting a more stable income in the close future maybe you're being wise to hold off if you're outsaving price rises.

For me, I was in the right place and the right time and I've settled for a "like" new build rather than a love - but I'm not outsaving the price rises so a completely different equation.

It sounds like your 'like' new build is working for you.. I may have missed a boat last autumn when I did put a couple offers in - with rising interest rates and prices, however I did just make a nice 4 figure sum from my house savings interest.
I could do with the real  Merlin to spell this rescue dog, he is so ansty and aggressive and I do feel sorry for him. He feels like he needs a one on one family

savingholmes said:

Your house sitting is certainly eventful. 

Good luck whatever you decide re job / vs se etc. You sound very entrepreneurial. As in I wonder if you would struggle in a more corporate role now - particularly if full time as you are used to more freedom...

You may be very correct there  - will only pull that trigger is I decide I can deal with it for a few years to get this house buying sorted

LadyWithAPlan

Sunday 
NSD are doing well given I am just focusing on animals and work. Not yet driven anywhere !
NSD 8/13

Grocery so far Aug 22 £84.02/170  + 17.50 Sains won card    
£4.50/£30 bulk -  

Friday I spent £19  in Waitrose so £84.02 now - I was in waitrose as  thats where friend too me
I did buy some reduced GF sausages.

Free Money 50p - waitrose coupon



TT £5 

I was given £100 cash towards my birthday so I am adding that as grocery cash and moving £100 from my grocery pot to my PB AND BABY ISA.

savingholmes

Happy birthday whenever it is 🎂🎉🎉

LadyWithAPlan

savingholmes said:

Happy birthday whenever it is 🎂🎉🎉

Tx! Cash was towards my new apple watch I am loving - not v MSE but I love the tracking but good to use cash for my gift as grocery money and send the grocery pot online to interest earning places!

I will be well under my grocery Challenge for this August as I am away for over 2 weeks and harder to spend when I have to drive to get anywhere and anything

Dog news
One dog known as the escape artist today managed to run out as another one managed to open not one but TWO doors today. Got back in after me running around in rain for 10 mins - she can jump 6 foot plus fences so I nearly grabbed her twice but she escaped. Finally she came back to me in a field - it was v rainy
I am now locking with a key the doors, they are normally left unlocked as well as ensuring all untrustworthy dogs are on a lead even when they go  for a wee and are tied up on the pole outside to wander.
Other dog the biter is being taken to a safe kennel run by a trustworthy friend tomorrow - as I am having to keep it in a stable during the day, it sleeps in its cage indoors at night and I am having to run it separately to the others. It is  stressful and I find it impossible to properly work with all the noise and having to watch it constantly.

Horse news
I am the horse whisperer  (famous last words) - all are doing well, the eye infection seems to have gone and I am surprisingly good at holding a horse and cleaning its eye in a field whilst the other one nudges me for food.

Cats are bringing me mice gifts...

Cash
So I moved cash around after receiving some last week
£1k tax in PB guesstimate on amount - I like idea the hmrc is helping me win PB whilst I wait to pay them.
£1700 pb
£200 baby van isa - its new 
Upped current acct £1k as EF in case more delayed payments -- still waiting on £XXXX'S unpaid 
SIPP £300 

Updates
House deposit £102k/£125k
EF £1000/£15000 - in current acct - maybe should move to another pot ...
House buying costs £0/£15k - well £1950/15000 if inc H2B isa if I do buy under £500k (so much money but this is London and I want outdoor space)

Fire updates  7 years target - actually more as mkts gone up but will value SIPP at end of the month
FIRE   exc home 12k pa 11.99%, 16k pa 8.99%. Current spend inc rent 10.27% FIRE

These % are slowly but steadily going up!
NB these % are based on me hitting the goals in 7 years and dont include my DB or a final SP.
The fire % also exclude my house deposit savings and EF's

NSD again Sat/Sunday and Monday )
I nearly bought a grabbit beauty box on the sun £10 instead of £40 as things in there I could use as gifts etc. However the £3.99 p+p put me off..and will ruin my NSD

NSD including today Monday 9/13

I do have £6.50 in Tsco voicvhers to use by the 31st

House buying thoughts
I am slowly reading through Tilly Tidys diary (amazing!) and was inspired by all her focus so I ended up looking at mortgage rates at present as rates have gone up. They were 1.64 and 1.94 when I was looking to put offers in last year
On a deposit of £120k (not there yet) plus a £380k mortgage

There is 2.79% 5 year (and 3 year) fixes..
Monthly £1,927.67 standard
£883.50 is first months interest 
So £29.05 a day!! (was under £20 when I last looked)
Interest in first year £10,440
With no OP interest over 22 years is £151,205.55


If I op by 1072.33 making a £3k a month mortgage payment I can get it paid off in 12.8 years
However even with a £3k a month payment inc the OP I will still be paying over £10,274 in interest in first year ... and £78,793.91 if I carry on with such OP. (and rates may rise)

Suddenly that buy house in cash idea makes sense though to save 400k plus is a huge ask!
However maybe the impossible is a fun goal I will get to my £155k target then look..  I do need as a minimum to keep rent low as it is at present.. and try to squeeze all pennies hard as per TT and other MFW

TT £5 to get acct to a round £10 figure