Prosperous soul embraces creativity & mortgage neutrality

savingholmes

Thanks Jwil.

Although I was awake for a while before, I had nice long lie in today. DD has gone out to see a friend.

If I couldn't transfer my DB pension - this could also be an option:

• At current prices - If I moved to Durham area (or similar) when this fixed rate ends I could be mortgage free but still have a nice detached house with at least 3 bedrooms. I love my home - it's very spacious - and it's well placed for motorways but... I hate the huge mortgage. I see it as a 'forced savings' plan for now but it would be lovely to see the back of the bill! I mostly work remote now and I've previously mentioned to my boss moving so don't think they'd stop it. 

If that was a serious plan - I might be better not putting much into AVCs and saving a big EF / moving fund instead - to reduce the likelihood of needing a mortgage. It does add impetus to controlling my costs better now. If I had no mortgage - I could afford to halve my working week.

• Another future option could be to rent out a room. I'd be reluctant to put DD at risk by doing that now so not a short term plan. If I'd changed location and was mortgage free - it could increase my available cash tax free which would be fab. I was looking the other day at a place with an annexe - I'd consider that too.

The £ or your life book - says we conflate identity, status, work with our job - and we need to separate them back out otherwise we'll have an identity crisis when we hit FI. I've seen that on these boards when someone becomes MF and feels like they've lost their way and that it was a hollow victory. Time freedom - would be great as long as I use it for art and writing or similar hobbies, exercise and time with friends - but not if I carry on my current £ obsession. I need to work on that part more than £!

Ex is due to move into his place within a week and he managed to keep a decent 5 year fixed rate (better than mine) which should provide stability for both him and DD. DD no longer has plans to move in with him - but if in future she passes a test and gets a car - it could be an option. It's within 10 miles of here so commutable for work.

L9XSS

Great news about your son, takes some worry away which as parents we all have. I lived in the North East of England for many years, now Scotland and Durham is lovely! So yes that seems a decent option for you. Quality of life is very important and I relate to the work/identity/status piece. You have a very balanced approach and looking at a number of options/approaches to securing your future goals it’s clear to see your focus. 

beanielou

Great result for your DS 

girlatplay

I remember the first time I became debt free.  That was the end of years of financial suffering.  I felt exactly that, like it was a hollow victory.  Obviously I was glad to be rid of the debt but I felt deflated.  I felt lost.  I had put my all into paying it off and I didn't know what to do with myself after that.  Took a wee while for me to come to terms with it.

It does sound like downsizing might be a good plan for you.  It's not as though you would be going to a 1 bed bungalow.  Three beds is bigger than mine.  Can you imagine being rid of that mortgage and not having to work so much?  I know you like your home though so it's a pretty big decision to do something like that.

LadyWithAPlan

savingholmes said:

Thanks @TallGirl - while DS isn't going to do a property guardian thing - our conversation about that did prompt him to think differently about how he could get his accommodation. He's about to accept a second role which gives him a studio apartment in a very nice areas for free @LadyWithAPlan with some top up monthly income. He's been told by text he should get the paperwork Monday. That's a weight off his mind and mine. Hopefully he can now clear his debts more quickly and have some free money to live and enjoy life too. I think his new accommodation includes his bills too.
 
Such a relief!!

Thats great news!! So pleased for you both! Being creative money wise is super important if you want to live and enjoy life in London especially.  

LadyWithAPlan

Sounds like you maybe should be looking at OP's or a mortgage offset account rather than AVC's for the next couple years to give yourself more choices if you are ready to downsize and the DB transfer is not practical.
Or do a 50/50 approach to extra cash?

I have an old DB pension - I did ask for a value a couple years ago - its was £220k+ but works out about £6760 per year currently once I can take it (60) but I figure I am going to live forever so leaving it alone )

savingholmes

LadyWithAPlan said:

Sounds like you maybe should be looking at OP's or a mortgage offset account rather than AVC's for the next couple years to give yourself more choices if you are ready to downsize and the DB transfer is not practical.
Or do a 50/50 approach to extra cash?

I have an old DB pension - I did ask for a value a couple years ago - its was £220k+ but works out about £6760 per year currently once I can take it (60) but I figure I am going to live forever so leaving it alone )

I have two - so lucky. My current one which is worth c£10.5K a year at this point plus the one I want to transfer. If I could transfer the smaller one - I could keep this house and still go part time in a few years. If I can't then I won't be able to. At 57 my current pension (if I don't take it early) should be worth more like £15.4K per year so a big uplift - which with state pension at age 67 - if I had no mortgage would mean I could manage on just SP and my current pension. I ought to be allowed to use my earlier pension to give me more time freedom earlier! I think the govt passed a law but the regulator has effectively made it null and void by over interfering in our so-called freedoms - increasing the costs to people like me rather than being helpful. I do appreciate though that some people have been duped but to make it so that we can't access our own £ is deeply frustrating. For comparison if I took my current DB early I'd lose around 38% at age 57 or 29% at 60 which is why I don't want to do it that way around.

I potentially need to buy a fridge freezer this week as although the fridge is cold half the freezer doesn't seem to be working (but some still is!) Weird. Can't make up my mind how much to spend vs running costs... Ironically given the above paragraph - It feels too big a decision.

Thanks Beanie, GAP and L9XSS

I got £co to send my voucher to a different email and it finally arrived. So I have £5.25 to spend at Mr T at some point which should be nice. Still waiting on the other £40 gift card from MnS. I'm tempted to try and keep the latter until I either see something special - or maybe put it towards xmas presents later in the year. 

Now paid. I've agreed to give DD some £ towards her holiday balancing out what I gave DS earlier (other than the early xmas/birthday bit). We had a good discussion. She has a lot of bills due currently - including £200 for dental so was struggling. I'm trying to teach her to manage her £ better - but still taking account of her age and ASD. I am proud of all she's achieving including new things she's trying like going abroad with a friend.

I finished the pay month with £2.7K in savings and around £1.3K as a 'float' within my main accounts. My AVCs haven't started yet. I am due to send £700 to regular savings (as I am drip feeding my EF in over time). I therefore should accommodate the new fridge freezer if I have to - but I am still holding onto money for the handyman and sorting out the stairs, tree and other odd jobs. I need to go ahead an get another quote for some of the handyman tasks as he's been slow in coming back to me although I decided not to chase until after pay day. Spending too much now on the FF or the handyman - will potentially jeopardise later savings goals for future months rather than this one. At the same time I'd like to just get certain things sorted so they're no longer a worry.

lucielle

It’s annoying when appliances break but good you’ve got the means to replace. I have to admit to adopting the ostrich regarding pensions. 

L

savingholmes

The float figure above - includes £400 I'm holding onto in case I ever get a bill from previous energy company. I just keep moving it forward each month.

I've done my money shuffle and tidied up some accounts. I'm trying to spend less on food, fuel, clothes, art, hobbies, entertainment, eating out etc. However, I effectively paid £23 out of this month's eating out £ for what I spent last Thursday which isn't ideal. Similarly already spent out on food - around £36 and fuel £78. Yesterday, spent £2.25 cash on chocolate plus lent DD £ for food which she repaid today.

I'm really hoping any AVCs coming out are delayed at least another month so my bank balance is a bit happier - post tradesmen and any FF purchase - but otherwise I'll just have to adjust it for future months to stay on track. I know I'm blessed by my current income - but it's due to drop a lot in October when my extra days holiday purchase comes out and when the AVCs finally start.

DD came and chatted for 20 minutes which is sweet but I'm now behind as I still haven't showered. I was considering going into work today - but I won't get there until between 10-30-11 so not sure that's the best idea. I could start much sooner if I start from home. However, it's due to be hot today. DD would like me to go out so she gets some peace at home!! Will debate while I shower!

Hope you all have a good day.

leftatthetrafficlights

Shame about the fridge freezer but knowing you can replace it without any major issues or concerns is good 👍 you have a nice healthy float there - well done! 😁