I wanna be mortgage freeeee!

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  • savingholmes
    savingholmes Posts: 27,544 Forumite
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    Can you move your savings to better interest - try Lloyds, Barclays or FD or Chase?
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 236 payments to go - now £183,036 Equity 26.8%
    2) Spend on handyman & external building works & new patio door £12.65K
    3) CC £4.6K on 0% spends card but offset by £33.8K savings (part EF, part future home improvement)
    4) Mortgage neutral by June 2030 AVC £10.2K/£127.5K AVC target 8% value at 15/5
    5) FI Age 60 annual income target £13.7/30K 45.7%
  • Flossymuldoo
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    @savingholmes. Chase doesn’t pay as much as Chip does. The only accounts I can find with higher interest I would have to fix for 2+ years, or the only other easy access is Hanley economic which MSE says:

    However, the account can only be opened by post or in branch and withdrawals are limited to one per month. Most will have to open and manage the account by post, so withdrawals won't be instant and must be a minimum of £500 each time.”

    By POST. In 2023 😂😂😂

    I’ll keep looking though. I have a bit of aversion to Chip after finding a bug when using their round up thingy years ago. It never got resolved after tons of e-mails and I lost £10. I’m mercenary though so happy to take their 3.71% for the time being.
  • Flossymuldoo
    Flossymuldoo Posts: 67 Forumite
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    edited 23 May 2023 at 8:27PM
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    Whoop whoop!   Chip have just raised their interest rate on the instant access savings account to 3.82%!
  • Flossymuldoo
    Flossymuldoo Posts: 67 Forumite
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    Well I’m crawling my way to payday with £48.94 left in my spending account. Only 4 days to go!!!

    I’ve now had nearly 2 months on my budget and I feel like I’m getting a better handle on it. 

    Categories I’ve gone over:

    Groceries: 459.78/400.00.  
    Bit miffed about this as I managed to do a 5 weekend month last month for £400. BUT then I realised I had scrimped too much last month and used a lot of my storecupboard staples and freezer reserves up so all that did was push the spend to this month. I think realistically I need to up the budget by £50.

    General: 144.59/100.00.
    Nothing extravagant here. School stationary, iPhone charge cables, a couple of kitchen utensils that needed replacing, shoe polish etc.  I am going to keep this where it is for now but I’ll keep a close eye on it. 

    Eating out/takeaways: 125.12/100.00.
    There was a local carnival with great food stalls, and we had an extra takeaway when I was so shattered that I fell asleep at 5pm. I plan to keep this where it is.

    Travel: 106.46/100.00. +18.60 still to come out.
    OH trialled using the bus to work but it takes him 70-90 mins to get there. Last week he trialled driving and parking and it takes him 40 mins, so he is going to drive from now on. It’s double the cost but I don't blame him tbh. So this needs to upped by £50 a month.

    All other budgets were under so I can absorb the ones that were over.

    So I’ve decided to leave the same amount going into the account and up a couple of the budgets, and I’m not going to pay for clothes and shoes out of this budget anymore. My underspend has been swallowed up by the overspend when really I need the money left to roll over. So I’ve added a pot in Starling for that and will pay in 100 per month. July/Aug tend to be expensive clothes wise as he always needs holiday stuff, uniform for September and he tends to have a growth spurt this time of year. 

    I also had a dentist appointment that came out of the budget. Will sort a pot for that separately. I had set £75 a month for healthcare, as my son was diagnosed with a condition privately and I have paying private prescriptions. But we now have a shared care agreement with my GP so from now on he’ll get his prescriptions free. So now there will be just the cost of 1 prescription charge per month for my husband, and I’ll put some money in a pot each month for dentist and opticians. Not sure how much I need to put in yet though. I don’t have any dental insurance anymore and i will
    get a medi cash thing through workbut I won’t get that until I’ve finished my probation period.

    The other slight snag this month is that i haven’t paid the cleaner. I pay her on 1st of the month for the previous month but there’s not enough left. So I’ll have to pay her on the 1st from Junes money. Not the end of the world.

  • savingholmes
    savingholmes Posts: 27,544 Forumite
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    You know where your money is going. That's more than many can say. You'll find a balance with it. I totally tend to underestimate how much random stuff costs in a month - and even annual bills. It's taken me years to make a proper allowance for them...
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 236 payments to go - now £183,036 Equity 26.8%
    2) Spend on handyman & external building works & new patio door £12.65K
    3) CC £4.6K on 0% spends card but offset by £33.8K savings (part EF, part future home improvement)
    4) Mortgage neutral by June 2030 AVC £10.2K/£127.5K AVC target 8% value at 15/5
    5) FI Age 60 annual income target £13.7/30K 45.7%
  • Flossymuldoo
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    So OH got paid today so we’re officially a 2 income family again 🎉

    His is less than mine as they’ve already started taking pension out whereas mine won’t kick in until my probation finishes.

    The excess from this pay will all go to the CC (along with some for the holiday fund) so I don’t pay any interest on it, the onto the loan. 

    Almost ready to cash out a few bits and bobs from surveys to will tuck those bits away ready for my loan overpayments.
  • savingholmes
    savingholmes Posts: 27,544 Forumite
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    What a lovely milestone. Hopefully that will speed your progress.
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 236 payments to go - now £183,036 Equity 26.8%
    2) Spend on handyman & external building works & new patio door £12.65K
    3) CC £4.6K on 0% spends card but offset by £33.8K savings (part EF, part future home improvement)
    4) Mortgage neutral by June 2030 AVC £10.2K/£127.5K AVC target 8% value at 15/5
    5) FI Age 60 annual income target £13.7/30K 45.7%
  • Flossymuldoo
    Flossymuldoo Posts: 67 Forumite
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    Oh I hope so @savingholmes as I have definitely got a bee in my bonnet.  The lightbulb was half lit about 3 or 4 years ago when our debts almost became unmanageable but I have most definitely had a full lightbulb moment when we got made redundant.  I won’t ever be in a situation again where I owe money.

    Having said that, the holiday bug is still the one I can’t shift. I can manage scrimping and savings everywhere else but not the thought of not having holidays. So I need to keep that in mind as it would be so easy to blow any savings on that. So I need to be mindful. 
    I have a plan around savings for holidays but I will need to be strict with myself as that probably contributed to the debts we had. As well as all the other !!!!!! that we bought that I can’t remember!

    DDs have mostly gone out for the month and credit card is almost paid. I had a brain fart when I was paying it and paid £109 short. So the plan is to clear that with £61interest from my savings and surveys.

    So…..
    Loan stands at: £20652.81
    Savings are at: £24086.00

    i was planning on paying 3/4 of the loan by the end of the year and leave around 5k to but I think I’m going to throw 5k at it now. I’m paying more interest than the money is earning so might as well do it now rather than waiting until the end of the year. Plus I think it will give me added motivation. 
  • Flossymuldoo
    Flossymuldoo Posts: 67 Forumite
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    Oh and the mortgage DD has gone out now too. Another 8.49 OP which brings my overpayment so far to £158. Not a lot but at least it’s a trickle until I can start paying more!
  • savingholmes
    savingholmes Posts: 27,544 Forumite
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    Send £5K to the debt now sounds great. It will be lovely to be under the £20K owed.

    On the mortgage - I count the whole of the principal part of the monthly payment - as part of the improving net worth picture. I find that more satisfying than just my £20 OP. I also track how many payments are left.
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 236 payments to go - now £183,036 Equity 26.8%
    2) Spend on handyman & external building works & new patio door £12.65K
    3) CC £4.6K on 0% spends card but offset by £33.8K savings (part EF, part future home improvement)
    4) Mortgage neutral by June 2030 AVC £10.2K/£127.5K AVC target 8% value at 15/5
    5) FI Age 60 annual income target £13.7/30K 45.7%
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