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

LadyWithAPlan

Grogged said:

Thanks @LadyWithAPlan, I'll take a look at them.
After hearing the horror stories of those locked out of property funds during the pandemic I much prefer REITs over open ended funds.
Glad the DIY offset idea was useful.

That makes sense. I like these big global property index ones as they traded fine last year I just kept buying them in bits.

LadyWithAPlan

Thursday update - my robot vacuum - the start of a beautiful relationship

 Baltazar the robot mop vacuum is here and he is fabulous. I feel he will definitely help me clear up my clutter as I have to make sure nothing in on the floor. I even cleaned my study! So a great start to our new relationship… the remote works brilliantly – I can do scheduled cleaning, edge cleaning, spot cleaning, and even change to a max vacuum effort. The app is being tricksy as I don’t have home broadband but the remote is good enough. I have not tested the mop function yet.

I did wash the kitchen floor again before using him as I did not want him to get dirty... But I think I love him. I have even (like with a new pet or child) sent my family videos of him...

I will get some more boundary strips so they can be put permanently into place. I have a lot of electricals and a very low cupboard he nearly got stuck under...

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I have calmed down from my fear of a monster mortgage, largely due to the many lovely MSE people who reminded to look at what I could do realistically on a daily/monthly basis  and look at the monthly payments in my budget as opposed to the headline figures.  Buying a forever home that is paid off for when I retire is a great use of my energy, life and focus. The fear will be there but the goal is greater.

They also reminded me I do have a plan, it is workable and I have a track record now of being great with my money – I budget, save and I don’t overspend.  I really think about big expenditure and I just was abroad for a decent period so I do feel rejuvenated.

I am not rushing to go looking yet but there is a London Home Show next month I may pop to see if I am right about ignoring H2B + SO schemes as I think they may be a more expensive way to buy and getting this contract mortgage helps me get around that. I think I start looking after that. 

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Free Money - first ever surveys!

I also finally got onto Prolific and did a few surveys today -  and had £10.52 Ok’d already )  I am waiting for a few more to be approved and then will move that over tomorrow. A new money making hobby. Thanks MSE

£20 sold of an item  to a neighbour so my first sale/declutter since I started MFW diary – I think this counts as free money?

August  Free Money  = £81.40
Nectar  points used £17.50 
Green Jinn £1 + £2.13 I did not know was there  + £1 = £4.13
Co-op  75p + 50p 
£12 Too good to go voucher
£10 uber eats voucher 
Amazon £6 gift card offer

£20 – neighbour sale

£10.52 Prolific

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Spending

£7 as mum posted me something first class so transferred that over straight away. so not a NSD but thats ok still 3/8 aim

I was planning to pop out for groceries  as no fresh veg in the house but it can wait til the morning after I go to the gym as the LIDL is right there. I will get cash out first.

@suffolk_lass suggested premium bonds I had not considered ever so having read the MSE guide I will invest 10k of my savings in Marcus at 0.6 to PB at the end of the month. I need easy access in case I do quickly buy a home. I like the fact some people have their tax savings in there!!

Current Goals

Grocery Challenge) 2nd half Aug   £2.60/70
Savings         
 19/08/21                           £68,625.05/ £100,000       £31,374.95 to go
MFW House savings 11/08/21   £67,711.70  

I still have not worked on my programme, finishing some stuff at work but I could find time.

South_coast

You're flying with the free money - selling stuff definitely counts 👍

eat_that_frog

Your robot vacuum sounds ace, I didn't realise you could get one with a mop function! 

Well done on all your efforts so far, sounds like you've got a pretty concrete plan.

I struggle with the pension vs mortgage debate also. Going on the pensions board is daunting, not going to lie 

SandyShores

Have just speed read through all your posts - crikey your thread is really busy

Just wanted to say, you can take your mortgage for as long as they'll give it to you and then just overpay to bring the date forward.  I think our mortgage ends when I'm 75, but planned overpayments will mean it ends when I'm 67.  It just means the payments are more manageable if we can't afford the overpayments.  Our pensions will cover the payments, but like you I really want to have the mortgage paid by retirement (but I will have the option of using some pension if its appropriate at the time).  

Suffolk_lass

Can I ask on the tilly tidy - its all new to me. 

- do you do this weekly? monthly? the round to £10? When I still had a mortgage I Tilly-tidied each time I logged in and the balance was not a round figure. For me, I knew when I spent on cards or by SO or DD so would check almost daily at the beginning of the month and then after shopping to round it down, as I entered the dead zone where there were no DD left.

- do you do it across all or just certain nominated bank accts? I did it across both current accounts.

- I have been balancing my overall savings money to be 00, rather than tilly tidying my bank accts to the nearest 0. What has worked best for you as you obviously had some real success with it. I also moved planned savings when we got paid or by SO shortly after, so that I didn't hit smug mode. For me, it worked best to keep the current accounts to 00.00 or n0.00. I keep (still) a spreadsheet of savings (I still do the Save £12k in 2021 challenge - it doesn't have to be £12k!) and when we had a mortgage I preferred to make a monthly round figure OP (preferring to skip a month if needed) to make round figure OP of at least £500, usually £n,000(s). I also asked the lender to round up my monthly payments to a round figure (see what I mean re the tidying thing?) and not to reduce it when the interest reduced (it did for me, from 17% down to 0.59%!).

- do you TT into another acct and move that over then once a month into savings? As you say it has become your easy EF?  I used a bank savings account with a truly miserable interest rate (and still do) but I think there is a little piece of reward each time I shuffle this somewhere more productive.  

I don't think I am nearly as dedicated to the task now I have no debts, and did not start here until I was £170k into the debt clearance (it was over £400k at one point, and it kind of stopped me sleeping).

- on your smug filter do you thus take your bank balance down to a tight level just enough to cover dd's so you have to move money back from a EF in in case of overspending - this might really work for me? If I was particularly flush by mid-month, I would round to the nearest £100. I think if I'm honest with myself I always left some padding in the accounts so I could be spontaneous and not worry about whether I needed to say no to any invitations at short notice to do fun stuff. Quality of life needs to include a little self indulgence. It is controlling that so it is a treat and not a daily occurrence that both helps us save and keeps it pleasurable, for me (and also the difference between losing weight and letting the kilos creep on, also for me). With banking apps making it so much easier to move money I might clear more out now, but I would probably still keep £100 cash in a pocket in my wallet in case I got stuck and no tech was working (it goes back to getting stuck overnight once).

By the way, well done for postponing the shopping until you have been to the gym  - maybe take something to eat so you are not ravenous when you shop (it helps).

For me, I think I like bursts of utter frugality too. On the grocery challenge it is really easy to get in a regularity rut. I like to throw in a stores month every now and again (not recently, I realise... hmm!) - where I make stuff with what I have in. Even if it is a bit dull. I realise this is much easier, living in the country and growing some fruit and veg, preserving the surplus and getting milk and eggs delivered. I think the expectation that we eat like we are out in a restaurant is much more prevalent when I see what people buy and hear what meals people are having. There is a lot to be said for paring back to simple food, from good basic ingredients and making the meals out the rich indulgent times that support local businesses. Probably not a mainstream view.

Suffolk_lass

@eat_that_frog maybe have a look at the Fireside Chats thread that @edinburgher started to make it friendlier to read in and share thoughts and plans on pensions and FIRE, and the balance between debt clearance and saving

Grogged

@shangaijimmy is the master of the small TT.
There's a million different ways to do, it's down to personal preference.
I'd plan on when you get the benefit.

We TT our bank account to the nearest £5 every Monday, or the next £5 if the balance ends £5.xx.
Our mortgage does daily interest, so even the smallest OP takes effect immediately.

Like @Suffolk_lass we round up our monthly mortgage payment and have paid the same amount for 15 years now.

Our mortgage also allows you to choose to reduce your payment or end date if you OP by £500, so we take advantage of that as well for large OPs.

It's amazing how quickly regular small OPs start to reduce your mortgage and over time they really snowball and will save you thousands.

For our normal spending, after years of not having one, we now use a credit card for most spends.
This gives us rewards and (slightly) boosts our savings, an idea we stole from @coldcazzie.
We aim to leave £100 after regular monthly DDs on the 1st and hoover the rest into savings.
We then top up as needed.
Non DD spends we do on our credit card and pay in full each month.
The CC has Amaz voucher rewards, so we "earn" about £50 a year from that as well.

LadyWithAPlan

SandyShores said:

Have just speed read through all your posts - crikey your thread is really busy

Just wanted to say, you can take your mortgage for as long as they'll give it to you and then just overpay to bring the date forward.  I think our mortgage ends when I'm 75, but planned overpayments will mean it ends when I'm 67.  It just means the payments are more manageable if we can't afford the overpayments.  Our pensions will cover the payments, but like you I really want to have the mortgage paid by retirement (but I will have the option of using some pension if its appropriate at the time).  

I do waffle on a bit here Using it as a thought processor and I am learning loads from everyones feedback.

You have all convinced me to forget the Dave Ramsey 15 year idea and go til I am 75.. and then OP to initially bring payments down to a level I feel comfortable, and then to reduce the term from then on. Need to also ramp up my SIPP but thats for after the buying.

LadyWithAPlan

Suffolk_lass said:

I don't think I am nearly as dedicated to the task now I have no debts, and did not start here until I was £170k into the debt clearance (it was over £400k at one point, and it kind of stopped me sleeping).



For me, I think I like bursts of utter frugality too. On the grocery challenge it is really easy to get in a regularity rut. I like to throw in a stores month every now and again (not recently, I realise... hmm!) - where I make stuff with what I have in. Even if it is a bit dull. I realise this is much easier, living in the country and growing some fruit and veg, preserving the surplus and getting milk and eggs delivered. I think the expectation that we eat like we are out in a restaurant is much more prevalent when I see what people buy and hear what meals people are having. There is a lot to be said for paring back to simple food, from good basic ingredients and making the meals out the rich indulgent times that support local businesses. Probably not a mainstream view.

Thanks for taking the time to explain the TT in such depth, it is very helpful.


I think once I am saddled with a £380k mortgage I will not be sleeping either til it goes down.. I have been convinced though I might as well go big or go home..  as it will be my home forever possibly.  I can always sell it and go back to renting if needed.

I am the same, - I always use restaurants as a indulgence but I eat very well but clean at home (with the exception of my crisp addiction).

I feel a visit to my family coming on to pick up their excess allotment goodies..