Prosperous soul, mortgage neutrality & creativity Year 2

SandyShores

So nice to do things together with your DD.  We had a takeaway and I wasn't that impressed with it either, but it was lovely to share it and spend time together.  Glad to hear you've been making art.  I had a bit of a clear up in my craft space this afternoon - its starting to take shape.  I'd like to buy a folding table to put my sewing machine on, and I've got a plan for big table with storage to do arts and crafts on.  It was dark before I knew it I got so carried away.

EssexHebridean

When we were paying off the mortgage previously we hugged a tight line between throwing everything we could at it, and still being able to have fun. We didn't compromise on trips to the Hebrides, and things like shorter trips away with pals  - we did cut right back on things like takeaways, and take a pragmatic view on doing stuff which had less longer term benefits for mental health etc. we're probably planning on doing pretty much the same again this time - we'll balance between using our existing savings pot for the oddments of work we want to do on the house and the first two years big OPs, but will probably put off doing anything major until after the first 2 year fixed term on the mortgage finishes - at which stage if our OP plan goes to target we will be able to shorten the remaining term too. 

You're overestimating on the replacement car I suspect as that sounds more like a "new" replacement cost than what I assume you'd really go for - ie new-ish second hand. I bought my car at 3 years old, MrEH did the same - we both paid around £8k for cars that would have cost us 18 - 20k plus just three years earlier brand new. I've done the new car thing previously several times, pre MSE days - there is not a chance I'm willing to take that sort of depreciation hit now though! 

edinburgher

It's probably a fair comment that an £8k car a few years ago will no longer be an £8k car! Cost of living, Covid and various other factors mean that the price of new and secondhand cars has gone right up. For example, we bought our Sandero new for just over £10k 5 years ago including metallic paint etc. The same car would now be c. £15k.

MovingForwards

Balancing and budgeting funds is why I have various pots.

The mortgage EF I focus on saving one month rather than thinking I want 12 months, as that feels so far away.

With my car and insurances pot I know it's £1200 a year, anything leftover is slowly building up a fund to replace the car whenever that time comes. 

If you're thinking £x for EF, £y for the kids, £z for the house and looking at needing £50k, it's hard to see where the money can come from, but slowly building the funds keeps spending / savings/ fun on track.

The cottage trips sound like a great idea.

savingholmes

Thanks Sandy, EH, Ed and MF

I bought my pre-registered (3 month old) automatic car for a £4K discount at £16K 6 years ago and traded in a £2K car to help. I couldn't find the equivalent kind of deal when I had a quick look so now would have been looking at a 3 year old equivalent car for £20K - the spec seemed to have changed significantly now and was hybrid. I know I could go older and even a smaller car - but was just putting in a ball park. I hear you on the depreciation EH - however I suppose it depends on how long I want to keep the car to how big a deal it is. I don't want to sound like a car snob - as most of my previous purchases were not new - I have to admit I really enjoyed this being new and getting it a decent discount for a new car.

I'd want a car that was a comfy ride, decent boot space, 5 doors, decent head height for giant DS and others, ABS, automatic - including cruise control with auto braking, Parking Sensors... - those optional extras like the sensors and even auto braking have helped avoid accidents... It's hard to go back to a lower level once you've experienced the extras...

If I avoid getting sucked into the cult of 'more' and 'upgrades' on my house I'll be fine for some time yet... and as you say - I can save as I go and see where that takes me. I'd rather have time freedom than an upgraded bathroom... until/unless it stops being functional.

My meeting today went well. Had to be up super and early and did an extra bit of work this morning before going in. Finished early though but was shattered.

My complaint to Sh311 was upheld and I'm getting £30 for them cancelling my smart meter appointment on the day which is good news. They are knocking it off my energy bill. 

beanielou

Good news on the compensation. 

savingholmes

Thanks Beanie

£25 went into savings yesterday. It's all progress. 

I start my new writing group tonight which I'm looking forward to. I know the lecturer and a friend should be going so I should know at least 2 people there which helps. 

I still need to cancel my gym.

I'm going to see my sis tomorrow night to celebrate a birthday.

Don't know if I'm going down South this week or not yet. Apparently that sis's heating has broken. Looking at the thin layer of snow outside - I might be better inviting her up here instead.

Humdinger1

All progress @savingholmes! It's interesting that relatively small incremental wins can have as big or a bigger impact than spectacular one-offs.  The former does also mean that we stay engaged in the process, I think.  I always take away a sense of holistic steps when I read you diary and tend to save up reading your diary so I can go for full immersion.   Love Humdinger xx 

EssexHebridean

edinburgher said:

It's probably a fair comment that an £8k car a few years ago will no longer be an £8k car! Cost of living, Covid and various other factors mean that the price of new and secondhand cars has gone right up. For example, we bought our Sandero new for just over £10k 5 years ago including metallic paint etc. The same car would now be c. £15k.

You've just got me being nosy on Autotrader as I was curious - a search using the same distance parameters I used when I researched both our purchases  brought up: 
A close equivalent to mine now at a similar age to the age I bought mine at would be £8500 - £9000.
I also did a search for one the same (model, colour etc) as mine - found one within 6 months of the same age and at slightly lower mileage for a price £200 over what I paid for mine - which is heartening! (Not though I would get that if I sold mine, obviously!) 
A close equivalent to MrEH's car in age and mileage is at around £500 above what we paid for his, there aren't actually any listed for purchase at the same age we purchased his, whether because Peugeot have stopped making that model, I don't know.
Buying the closest equivalent I could get to mine now (Petrol not diesel, but aside from that close to identical) would cost me a shade under £20k brand new which I absolutely wouldn't spend on a car at this point in time (not knocking anyone who would, if they had the wherewithal, it's just not for me!) - buying even a year old would knock around £3k off that, increasing to £5k off at 2 years old....jeez! (Where's that "thud" fainting emoji from the old forum!) Interesting stuff - It appears that the new prices of Renaults have pretty much held at or very slightly above the level they were.  Sounds like you did astonishingly well timing buying the Sandero when you did mind you - that's a huge increase! 

It would be interesting to know whether with the relative shortage of second hand cars - particularly in my area now that ULEZ has had such an impact on older diesels - there is now more open-mindedness towards higher mileage cars. when I changed my last one (a 12 year old Clio diesel on 150,000 miles) literally nobody wanted it, and my only option ended up being WBAC (£275!) which was gutting - I wonder whether now, particularly smaller dealers might well see a market for such a car? 

Completely agree about the getting used to the nice shiny things in cars too SH - we have a lot of the same requirements for a car as you do - particularly the head height as MrEH tops 6' and is long-bodied.  Of course yours being an automatic carries a premium - both ours are manuals. (one of the things I dread about being forced onto electric eventually is the loss of a manual gearbox!) I could go back to a more basic model - I've been there previously although not for a fair few years now - but I'd sooner not!  One thing I have always found though is that as time moves on the basic models tend to become less basic, as the previously "new" technology becomes more mainstream, and the "prestige" things change. A few years ago getting aircon, a screen etc was prestige - now almost all cars have those things. Of course I guess it follows that also means that the level of finish you'd get on a mid-range 3 year old car now is very different to where that would be in a few years time, too. Food for thought. 

Great stuff on the compensation from Sh3ll - bear in mind they have to pay it within a certain timeframe too - if they don't then that's a further £30! 

Hope the writing group goes well - and for goodness sake cancel the flipping gym!   

beanielou

Your challange~~cancel the gym by Sunday at the latest!