Mrs S…on the road to financial freedom

MrsSave
MrsSave Posts: 1,817
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edited 7 July 2022 at 3:02PM in Mortgage-free wannabe
Hi,

I’ve been on these boards for quite a few years with a few different diaries over on the debt free wannabe board. However I’ve decided to make the jump over here as other than my mortgage, I have been debt free since 2018. 

Life has changed quite a bit since the end of last year. I am currently going through a divorce and have just remortgaged the house into just my name. The transfer of deeds is in progress too. I am thinking of July 2022 as month zero on my journey to becoming mortgage free. Only £105,000 to go 🤣

I won’t be able to make massive overpayments each month and I’m not looking to make major cutbacks to become mortgage free as quickly as possible. I’m aiming to make small overpayments every month but to still enjoy life. 

Here goes…
Starting a new debt free journey
Starting Debt: £5,250
Current Debt: £4,995.50
Amount Paid: £254.50 Percentage Paid: 4.84%
Emergency Fund: £350
«1345

Comments

  • MrsSave
    MrsSave Posts: 1,817
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    I have a new pot on Monzo for mortgage overpayments where I’ll send any spare money and then send it over to the mortgage. I started it yesterday and have transferred a little into it already. Partly from my weekly food budget (I budget £75 a week from Thurs - Wed, and will split anything leftover between a few different pots on a weekly basis) and the rest is part of a Prolific payment.

    I do a few surveys for some extra money but not loads at all. It all helps though. I think that when the last mortgage was paid off during the remortgage it was overpaid as my direct debit went out 2 days before. I’ll wait to hear from the bank to confirm that but if that’s the case the extra little bit will be amazing!

    I am trying to stay on top of finances though by budgeting. Like I mentioned I am budgeting £75 for our food shopping which should be more than enough for me and my 2 Primary aged children who I have around 75% of the time, though will be closer to 50% over the holidays. I have also set a budget for the school holidays for our days out and things. 
    Starting a new debt free journey
    Starting Debt: £5,250
    Current Debt: £4,995.50
    Amount Paid: £254.50 Percentage Paid: 4.84%
    Emergency Fund: £350
  • ManekiNeko
    ManekiNeko Posts: 238
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    Happy shiny new diary! ☺️
    Completed on first home: 30 June 2022
    Mortgage outstanding: £68,499 £64,841.60
    OPs made or saved (2022-23): £315.52
    OPs made or saved (2023-24): £690.24
    OPs made or saved (cumulative): £1,005.76 (1.47%)
    Interest saved to date: £ *to add*
    % of mortgage paid off: 5.34%
    MF date: June 2056 October 2055
    Daily interest costs: £3.10 £2.90 and a half pence (as of 12.02.2024)
    Emergency fund: £0
    Debt to DS: £10,000 £7,209.01. 27.91% repaid (DFD: Aug 2027 Nov 2030)
    Debt to DP: £1,423.55 (this will increase until DS repaid)
    Debt to non-profit: £4,500 £4,239. 5.8% repaid


  • MrsSave
    MrsSave Posts: 1,817
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    I have worked out this morning what an ideal 6 month emergency fund would be. If I had £7,800 I would be able live comfortably for 6 months without my wages, longer if I was being frugal. I’m almost a quarter of the way to my target.

    I have cashed out on Prolific this morning and have split that between a couple of pots. My mortgage overpayment pot for July is currently just over £8. I know this isn’t much but that has been in 2 days and with also sending extra money made to other pots. As I mentioned before I’m not going to be able to make huge overpayments. I’m a single parent, not on a huge wage and we love going away so the holiday pot is an important one for me too.
    Starting a new debt free journey
    Starting Debt: £5,250
    Current Debt: £4,995.50
    Amount Paid: £254.50 Percentage Paid: 4.84%
    Emergency Fund: £350
  • ManekiNeko
    ManekiNeko Posts: 238
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    Well done on your OP 🎉 every little helps as they say and it's just great you're in a position to OP at all during your very first month with the house in your sole name.

    I will be in a similar boat in terms of only being able to make small OPs, I'm on long-term sick leave so my income is from disability-related benefits just now.

    Holidays with the family are really important, they're precious memories you'll look back on fondly for many years to come.
    Completed on first home: 30 June 2022
    Mortgage outstanding: £68,499 £64,841.60
    OPs made or saved (2022-23): £315.52
    OPs made or saved (2023-24): £690.24
    OPs made or saved (cumulative): £1,005.76 (1.47%)
    Interest saved to date: £ *to add*
    % of mortgage paid off: 5.34%
    MF date: June 2056 October 2055
    Daily interest costs: £3.10 £2.90 and a half pence (as of 12.02.2024)
    Emergency fund: £0
    Debt to DS: £10,000 £7,209.01. 27.91% repaid (DFD: Aug 2027 Nov 2030)
    Debt to DP: £1,423.55 (this will increase until DS repaid)
    Debt to non-profit: £4,500 £4,239. 5.8% repaid


  • I’ve followed you over from the debt free wannabe board and will be cheering you on.  Any overpayment is a bonus so well  done on starting a pot for it.  I’m a single parent on a low income trying to overpay my mortgage so I feel your pain!! One payment at a time and we’ll get there   Good luck xx
    slowly working towards being MF one small over payment at a time :T
  • savingholmes
    savingholmes Posts: 26,851
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    Good luck on your journey. I took on a huge mortgage after divorce last November so will watch with interest.
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 237 payments to go - now £184,341 Equity 26.26% (lower post move compensated by EF)
    2) Mortgage neutral by June 2030 AVC £7,613/£127,466 AVC target 5.97%
    3) FI Age 60 annual income target £12,500/30,000 41.66%
    Achievements: CC free since April 22. 1 year EF from Jan 24 & dedicated pot for home improvements
  • Humdinger1
    Humdinger1 Posts: 1,847
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    @MrsSave have followed you over and subscribed! Big adventures lie ahead and I'll be cheering you on.   You have totally got this! Onwards and upwards love Humdinger xx 
  • AntoMac
    AntoMac Posts: 1,870
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    Good luck @MrsSave
    Even small overpayments can make a real difference. It’s also sensible to build up your emergency fund too. When I needed a bit of flexibility on my mortgage I was pleasantly surprised by how helpful my lender was, mainly due to the various small overpayments I made having added up quite significantly over time. 
    27/5/17 Mort 64705 BTs 1904031/12/17 Mort 59815 BT 1673007/04/20 Mort 49208 BT 1572128/07/20 Mort 47387 BT 1263414/11/20 Mort 45905 BT 10134 20/05/21 Mort 42335 BT 686811/08/22 Mort 32050 BT 2915Sealed Pot Challenge 16 Number 5
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