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 🙂

Queen_of_the_Hive

Hey @newgirly,

My partner has retired on basically no savings and I will be honest, it is a disadvantage. I'd agree with whats already been suggested to pay the credit card down based on the months left. Have you considered setting up a Stocks and Shares ISA if you don't already have one. I've been a happy customer of Nutmeg for many years and just branched out to Trading 212 as I wanted more options but something simple as Nutmeg to get you going would work. We set my OH with one and he now pays in a £100 a month I think - he's got now about 6k saved so it is def possible. I would be tempted to have a bit of everything, savings, pension and EF. To get you started the savings and EF could be the same thing until it gets to a set size to split it off. My EF is only £305 and trying to grow it with odds and bits of "spare" change.

TallGirl

Hi Newgirly that is a hard one and one I have grappled with a lot myself as my DG had not a lot saved when I met her. She did have some small works pensions which we combined and then she is still paying into one. I have always paid extra into my pension from when my mortgaged was cleared but with him always being selfemployed it is not easy. I would definitely think about a pension the advantages you get is well worth it. It is not as scary as it sounds. Also agree with Queen of the Hive do think about investments like SS ISA. I had never invested before and I ended up with an index fund which did fine and since then I have become more and more confident. Starting with one of the robo investment companies like Nutmeg or MoneyBox especially if you can get free money from a referral then you can usually put very little money in but it will get you started. Just pick an index fund that tracks and off you go.

As for EF I agree it is great to have but if you have got access to credit cards it does not have to be huge. I tend to keep my cash in Premium Bonds but some cash ISA's lets you take money out and put it back in. Hope you find the right balance for you. Final thought is there no small part time work you could look into to help bring his retirement day slightly closer?

newgirly

Oops it been ages since I checked in. Thank you so much for the posts - Queen of the hive, thats probably a good call doing a little bit of everything and then I guess you can’t go too far in just one direction leaving things vulnerable in another area. I kind of admire retiring with no savings if I’m honest, its always a gamble of time vs money and I think I would fear wasting time over struggling with money, but its Dh’s job and so his choice to make. On the flip side it would be nice to retire and be able to go away still.

Hi Tallgirl, thanks so much for the post 🙂 I was expecting everyone to say pension pension pension really, I’d not even thought of s&s its not something I’ve ever done, although my ds1 has been doing that for years now. I think I will look into it! Dh is set on retiring at 60 (he's 54 soon) I don't really know why as really with the factory rented we could get by earlier than that (with a good emergency fund). As for a job I do look from time to time for something very part time and local but I don’t want to get tied into being available seven days for a contract thats a few hours a week, which is what tends to happen with shop work. Well, thats my excuse and I’m sticking to it 🤣

This week has been very hectic, we went away Saturday for the night to Gloucester, booked the night before and took the new car for a run out, hotel £70, well actually I say I booked the night before but although booking was conformed the payment never went through and I didn’t realise until we parked up 🤣 luckily it was still available though. We went to the cathedral (where some scenes in Harry Potter were filmed) which was wonderful and wandered around. There was a spoons nearby so we made use of that £12 for lunch and a drink for two 😬 Sunday we drove back via The farmers dog (Clarkson’s restaurant) and wow is it busy, we didn’t go to the restaurant of course as its a once a month release for tables that sell out like a gig 😳 just the shop, bought dad some h@wkstone and a glass for fathers day.

Yesterday the car was sold, which this time went smoothly and I also booked a trip for this coming Monday with best friend, its all go here!
Cheap flights - underseat bag only on the irish airline and a lovely apartment (or maybe room?) by the main square in krakow. We were going last year to the cotswolds but it never happened due to the factory not being rented out, so I suggested this year and next week was the best/cheapest/ easiest option as she still has a primary aged one left. Very spur of the moment but perhaps good timing as i’ve been fed up and am trying to keep busy.

South_coast

Ooh, Krakow is lovely 😀! I can't recall if you've been before?

greent

OoOoh - I live in Gloucester!!

newgirly

Oooh lucky you greent 😊would have given you a wave if id known 😆

Hi sc, I’ve not been to Krakow before, although dh and I booked a few years ago and cancelled ( as is our way 🤣).

All packed, hand luggage only - as in a tiny bag 😱 still managed to get clothes, shoes, first aid kit, meds, teddy bear, coffee, all electronic bits and bobs, toiletries, shopper bag, handbag and rechargeable fan in so I am pretty pleased with myself. Even a hand luggage case cost more than the flights.

Nice day today, went to the bootsale with the boys and DH and then lunch at a Turkish “Essexy” place with a singer - lovely food, loud singer, Dads idea and he paid which is not fair on fathers day 🤣 we bought the drinks in the indie pub first though. Off to bed now for an early start (cheapest flight 🤣 ) tomorrow.

South_coast

Enjoy! Make sure you visit the basilica in the market square - well worth the entry fee 👍