Mortgage free in Forever Home :-)

Hi All,

 This is partly for the benefit of @Cheery_Daff who has nudged me into posting. 😊

I’m in a bit of a pickle and I need to get on top of it before it becomes any more serious.

I am inherently a spendthrift, it’s always has been my way. In my 20’s I ended up in a lot of debt relative to my income which I eventually paid off via the DWD approach I learned on the Motley Fool.

I then got to a stage where we were comfortably off and I kind of lost focus on my finances – I got away with it at the time because the mortgage and other living costs were affordable. Just over 2 years ago we moved to our ‘forever home’ which was a significant increase in terms of mortgage value / repayments. I have also been made redundant twice since Covid started after being on 60% pay for a furlough period that lasted 4 months  ☹ and with rapidly increasing food and energy costs and my spendy ways I am now in credit card debt, with tiny savings and its feeling tight on our budget …

So … it’s time for a fresh start!

I have a new job that I will be starting shortly that has a good pay-rise along with it. Over Christmas I spent a lot of time on a full budget review and have managed to make it balance on my current salary with some money going towards savings for expected things like car MOT & servicing etc. I suspect that there will be some ‘missing’ costs / spends that will need to be factored in, so will review my budget structure monthly (logged this action in my diary).

The credit card debt I have moved to 0% interest until April 2023, so obviously that will need to be paid off before then. The first focus needs to be working my way up to £5K of savings (equivalent to 3 months’ worth of minimal living costs) and then knocking down the credit card.

I am committed to tracking every spend as it happens so I can see as the month goes on whether I am overspending in one area and will have to cut back on another. Hubby is on-board with economising so will reduce / remove his alcohol spend on the weekly shop and is watching with me what we spend on the groceries shop.

My other intention is to post and lurk (and learn more) here as people don’t talk about money in ‘the real world’ and its that lack of reinforcement with all the opposite, sparkly attractors to spend (like adverts etc.) that mean I am not conscious of where I am spending or the effect it is having on my finances or my future.

I like tracking / recording things, so I am also going to track:

-        Number days per month of no-spend

-        £Values on loyalty points (BP, Nectar & Clubcard spends atm)

-        Overall mortgage value (not that I can OP atm but it will remind me what the end game is here …)

-        Savings achieved to date

So today’s spends are:

£25.32 on fuel – not a full top up as I have only been into work 3 days this week and some of that was driving locally over Christmas.

£129.80 for a Tesco’s delivery coming this evening. We are trying them to see if we can drive down our costs somewhat. Previously we were spending an average of £160 per week (ridiculous I know!).

I’m not expecting to go anywhere or spend anything this coming weekend but am planning some batch cooking of things already in stock or in the Tesco’s delivery  😊

Feeling quite excited – both about the new job (more income) but also that I have got my head around this and have a plan! 😊

KK

PS - I dithered for a while about a title for this post / thread, but ultimately mortgage in my forever home is where I want to end up!  ;)


As at 17.03.24:
- When bought house £315,995 mortgage debt and end date at start = October 2039 <gulp>, now £255,571, end date brought closer by 2 months  
- OPs to mortgage = £5,965, Interest saved £2,124, to date
- LTV 51% @ccord, 51% Yopa
Fixed rate 2.17% ends October 2024

Read 12 books of target 52 in 2024 (as @ 9th April)
Produce tracker: £10.90 of £300

Watch your thoughts, they become your words. Watch your words, they become your actions. Watch your actions, they become your reality. 
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Comments

  • edwink
    edwink Posts: 2,967 Forumite
    Homepage Hero First Anniversary Photogenic Name Dropper

    Hi KK

    Glad you have started a diary that will help keep you focussed on your end goal.  I visit a lot of the diaries on MSE and it is amazing what others have or are in the process of achieving debt wise or mortgage free wise.  Well done on making the first move of starting a diary, now you are off the starting block there should be no stopping you now.

    I'll be cheering you on along the way, good luck. 

    Edwink x
    **3.36 kWp solar panel system, 10 x Ultima & 4 x Panasonic solar panels, Solaredge Inverter **Biomass boiler stove for cooking, hot water & heating **2000ltr Rainwater harvesting system for loo flushing - **Hybrid Toyota Auris car **1 ex-battery hen - RIP Pingu, Hoppy & Ginger ****Hens & Ducks**** chat thread. http://forums.moneysavingexpert.com/showthread.php?t=5282209
  • Chiglepig
    Chiglepig Posts: 611 Forumite
    First Anniversary First Post Photogenic Name Dropper
    Glad to see you took the plunge, KK.

    Hope the new job works out - two redundancies, ouch!
    2014 starting mortgage £165,000
    2015 second charge £20,000 - Jan 2021 paid off in full
    Current outstanding balance - £115,856



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