Follow the Yellow Brick Road 2023

savingholmes

Sounds like a plan. 

Follow the yellow brick road.... follow, follow... 

We're off to see the wizard .... 


How can you not have a smile on your face when you sing that?

SandyShores

Definitely savingholmes   I also want to keep singing 'just keep swimming', anything to keep motivated and moving forward.  Step by step and with a skip in my step

Slowly making progress on my 8 target areas.  My main priority is keeping a healthy work-life balance and its helping me enjoy my downtime instead of constantly worrying about work.  I'm also starting to think about what next and how I can consolidate all my previous learning - and about what skills I need to update (and any new ones). I'm starting off by reading all the books I've bought over the past few years but never made time to read.  Financially, I'm excited to finally start seriously saving/OPing from January's payday - still mulling over the decision to save or OP though.  I've found an interest only calculator (as well as the H2B calculator) online which might make me reach a decision sooner.   https://www.burgesshodgson.co.uk/resources/calculators/interest-only/   And I am slightly stalled on decluttering/decorating but I do have plans.  My social life usually revolves around my physical activities which I need to start up again, but there are several groups and activities I keep saying I'm going to try.  A lot to get on with this year, but step by step I plan to get there - and this list will hold me to account:

1. Spiritual / Personal Growth / Inner Peace
2. Financial
3. Career
4. Learning
5. Physical Health
6. Family / healthy work-life balance
7. Social
8. Environment e.g. decluttering your space

Moneyfordreams

I feel your pain worrying about work - I'm in a newish role and have more responsibility, some days I replay over and over again - annoying and micro-analyse my performance - not good.   

SandyShores

Thanks @Moneyfordreams - similar here, I know that I do a good job but I'm constantly worrying I've made a mistake or its not good enough.  They say it takes two years until you really know a job, but that doesn't help when you are struggling to relax in the evenings/on weekends.  I'm trying hard to reclaim my off time and put work into perspective.  

debtfreeoneday

I’m in the same save / OP dilemma. For now it’s being saved as we have reached our OP allowance but it remortgage time in a few months so I need to decide whether to reduce the amount prior to remortgaging or stick with the same amount 

SandyShores

I think I need to put it into savings, firstly because the interest makes sense, but secondly because I think having the cash gives options.  The argument against not saving (but paying directly off the mortgage) is firstly that it could be spent or lost and secondly is that its more hassle to open the new higher rate accounts and move it around - currently its in a 0.5% account so need to get it into a higher rate account as I'm effectively paying 1.4% on an equivalent amount of the mortgage.  Still no wiser.

SandyShores

Finally made a decision.  I decided to do a 'For and Against' to work out which would be the best option.  I know that saving would make more interest as long as I opened the right accounts and moved the money around, but making overpayments had too many advantages to ignore:

- reduces mortgage balance instantly
- takes advantage of 10% OPs
- no temptation to spend/safer
- currently can't save enough to pay H2B in full anyway
- don't have to open accounts and move the money around
- can stop worrying about whether I'm doing the right thing
 
So £5,000 has now been transferred to the mortgage account and the mortgage term will be reduced.  The mortgage account hasn't updated instantly so I'm looking forward to logging in and seeing the results later - and updating my signature.

There were 3 options for the overpayment - reduce your payments, reduce your term, or keep both the same with an option to reduce either later.  I took option 2 to reduce the term - I thought about option 3 but I'm focussed on clearing this mortgage early so thought lets go for it.

edit - I've just used the MSE mortgage calculator and with this lump sum and my planned future overpayments, it shows that even with a 3.5% savings rate I would only be £500 better off over the whole route going the savings route.  Definitely made the right decision, now off to sell things/win things/do things to get this mortgage paid down

Moneyfordreams

I'm all for it too.. I scape in by around £300 pounds or £3000 pounds (very approximate) in my favour to overpay rather than save -  

debtfreeoneday

Sounds like the right move after considering all your options!

savingholmes

You have to do what's right for you. I agree money in the bank is more tempting than remortgaging to get at £ you already paid off but that's why I am using AVCs for some of mine. Nice to see tangible progress though - and at least your way it's guaranteed.