Balance in the force 5 February at 5:07PM in Mortgage-Free Wannabe 10 replies 402 views

FlacosFloozie

The story so far...

2011 joined MSE and started my DFW journey.

2014 finally debt free with over 14k paid off and started saving for a deposit.

2017 bought our fist house and promised to overpay the mortgage.

2017-2022 didn't overpay the mortgage Did start S%S ISA, build cash savings and buy some premium bonds. Also spent money on decorating the new house, replacing both cars and enjoying life.

2022 Remortgaged on a 2 year fix with good intentions to overpay

FlacosFloozie

So, a bit more detail. We've had a few ups and downs over the last couple of years. I recently got promoted with a bit of a salary increase and the potential for an (unlikely) annual bonus. I've increased payments to my stakeholder pension from £256 to £437.50 a month without missing it. I've sorted internet banking/app for our mortgage which makes it easier to see the balance and I've made the first overpayments of £100 last month and £200 today.

My aim is to try and develop a balanced financial plan to help us retire comfortably and hopefully a bit early. To do this, I want to split spare cash between mortgage overpayments, cash savings, stocks and shares and maybe a small amount in crypto or peer to peer lending.

The current state of affairs is:

Mortage £128666.94 on 1.04% 2yr fix

Emergency fund £15,427.64 (mix of cash and permium bonds)

S&S ISA £17,856.95

Pensions Mrs F stakeholder £111,689 work £15,093 current contributions £804/month

Pensions Mr F your guess is as good as mine

The plan:

To build the emergency fund to £16k by August

To overpay the mortgage by 2K this year

To add £1.5k to the ISA this year

To sit down and investigate Mr F's pensions with him this week

Probably to start an additional pension for Mr F

To investigate higher risk investment options e.g. crypto. I'd only be putting small amounts into these as I do see as more akin to gambling.

Any unexpected small windfalls get split between mortgage/investments/fun.

In the very unlikely event the bonus happens this will go to pensions.

To figure out how to update my signature on the new forum

happihorse

Hi FlacosFloozie - just found your diary and thought I would stop by to say 'hi'!

Looks like you have got your head screwed on and a clear plan with some short term achievable steps to help you on your way. 

Please let me know when you figure out the signature thing - would be good to update mine too! 

FlacosFloozie

Hi happihorse, I'M still working on the signature The old forum was definitely easier.

Anyway, update for February...

Mortgage overpayment £403.85. Really liking the app now I've got it set up as I can see the interest added. I've managed to change the mortgage to a loan account on YNAB so will see how that works for keeping track of things.

Emergency fund at £15,606

Extra £150 to the ISA today

The pension discussion with Mr F went fairly well and we have a plan of action. However, he's also got a new job. Bit of a change but does mean a pay rise and more potential for progression so good news.

I did some overtime last month so bonus in the wage for this month.

On the downside had to replace 2 tyres on the car, but had the money put aside in YNAB so will just need to slowly top it back up.

happihorse

FlacosFloozie said:

Hi happihorse, I'M still working on the signature The old forum was definitely easier.

Anyway, update for February...

Mortgage overpayment £403.85. Really liking the app now I've got it set up as I can see the interest added. I've managed to change the mortgage to a loan account on YNAB so will see how that works for keeping track of things.

Emergency fund at £15,606

Extra £150 to the ISA today

The pension discussion with Mr F went fairly well and we have a plan of action. However, he's also got a new job. Bit of a change but does mean a pay rise and more potential for progression so good news.

I did some overtime last month so bonus in the wage for this month.

On the downside had to replace 2 tyres on the car, but had the money put aside in YNAB so will just need to slowly top it back up.

Great work FlacosFloozie.

Who is your mortgage with?  I'm with Nationwide and their app is great for seeing where you are and interest paid etc.

FlacosFloozie

Hi happihorse,

We're with HSBC and agree the app is brilliant for checking interest and payments. I've also got the mortgage as a loan on YNAB it's always out by about £2 on the monthly interest but it's really handy for looking at the remaining term.

Anyway, £210 extra paid in April and £200 in May. I've managed to pay for the RAC with clubcard vouchers so thats an extrat £220 free this month. I'm not going to pay it off until I'm sure the RAC don't charge me twice

Current progress

Emergency fund £15954.80/16,000 99%

Mortgage overpayments £813.85/2000 40%

Added to ISA £780.92/1500 52%

The end of the month will be halfway through the year so things are looking on track. I'm waiting for the electricity bill next month, hoping I've budgeted enough as our fixed tarriff ran out. The cost of petrol rise has now worked out the petrol savings I'd made by going hybrid but it would be worse if I hadn't changed. The supermarket budget has also been increased. I was walking round Tesco yesterday hearing people price up and decide against items- it reminded me how lucky myself and Mr F are to be able to live comfortably and save.

savingholmes

Good luck on your journey.

FlacosFloozie

Right, end of the month and £260 overpaid on the mortgage, emergency fund topped up to £16k and £300 added to the ISA.

savingholmes

Fantastic.

CasualMFW

Made some real progress there, well done! 
You seem very clued up on your savings - Any advice on S&S? It's something I have been thinking about getting involved in.

savingholmes

CasualMFW said:

Made some real progress there, well done! 
You seem very clued up on your savings - Any advice on S&S? It's something I have been thinking about getting involved in.

Reading The Simple Path to Wealth might be a good first step