Pay off mortgage and start having even more fun 😁

newgirly

Well the car is back up for sale again today, we had to wait a day for the dealers who refused it to answer to the platform why they did, but they didn't answer so fingers crossed it at least hits reserve again.

I’ve been thinking about savings and what to do about prioritising what goes where in the future. Dh is wanting to retire early but we could do with more in the pension and I appreciate this is probably the most effective way to save. But we also need to spend a bit on the house on repairs (or even a house move) as well as needing an emergency fund - we still have an offset balance of 25k odd with a matching mortgage balance as the redemption penalties apply until sept 2027, so thats still felt like a way of having an emergency fund if we really needed it, but obviously that option will be gone next year. I’d also like a steady pot thats ticking over slowly for long term savings.
Saving is not something we have afforded to do in any big way for most of our married life, pots for xmas and holiday perhaps were the furthest we would get with that, but most attempts wouldn't last long 🙄 in the last few years though things have settled down a bit and now its time to address it.

In then past everything went to overpaying the mortgage, as it stands right now we have debts on a 0% cc that need paying off by next March but then we need to have some direction. I’m not really sure how to start with saving and I guess I’m asking for opinions of what others would or do actually do? Would you prioritise emergency fund over everything first (or pension) or perhaps save smaller amounts into pension and an EF at the same time? Would you let the cc run u til the end of the 0% period or try and clear it faster then start saving 🤷‍♀️ I don’t know and I’m very indecisive so would appreciate any input really 🙂

South_coast

A few questions to help guide your thinking (no need to answer here):

• When does DH want to retire, and how much more is needed in the pension to achieve this?
• Would taking a tax free lump sum from the pension be an option to pay for the home improvements? It could be used as a savings vehicle to achieve this, but you need to make sure there's enough left to live on
• Is DH thinking of retiring before he is able to access his pension? How will you fund the time in-between?
• What is your pension provision like?
• Is DH getting the marriage tax allowance thingy?
• Will paying off the balance of the mortgage leave you with zero savings?
• If you split the remaining credit card balance into equal payments until the 0% runs out, how much does that leave left over each month?
• How much would be a sensible EF for your current situation?
• If you do move, how are you going to fund the costs?

I think a lot is going to depend on your timescales and how much you (realistically, not a crazy NG plan 😘) have available to put towards your goals. If you can split the credit cards into equal payments and that leaves a sensible amount left over each month, then you could save for the EF alongside it. If that might be a bit tight (or only a very small amount available for the EF), then maybe hammer the cards down to get rid of them faster, then use that money to build the EF. If you're looking for the best bang for your buck, then the pension is likely to win, but it all depends on how soon you need the cash v how soon it will be available

newgirly

Hi SC thank you so much for taking the time to suggest all these questions and suggestions, it really is useful and I shall work my way through it. Much of that can be answered, dh’s retirement date is probably the hardest to work out although he’s saying by sixty which is 2032. I think your suggestion of paying the 0% cc off over the timeframe left makes sense along with an EF at the same time.
The offset when paid off will mean no savings (except pots for stuff including holidays) so it does seem like that should probably be the priority.
Repairs to the house is a tricky one, if we sell it will be minimal - paint , carpet, bit of rendering and making good etc. but if we stay then in the medium term it means new windows, drive etc. so its hard to say 😳 but yes it needs saving for alongside money for if we choose to sell, although downsizing financially that would be my preference really.

Dh does get the marriage tax allowance, my pension is non existent more or less and i think dh’s would tide us over to state pension age if we took it for a set short term (along side the factory rent only mind!) but only if i stop booking holidays 🤣

Lots to think about and work out really, but thank you 🙂