Mortgage free in 4 years

Sensiblesaver

I am having quite a boring week at work as not much work to do. Yesterday DS had a baby tooth out, he was very scared as he has a big fear of needles, but he manged to do it and I treated him to some churros after

I have decided I will stick with my plan and carry on following Dave Ramsey's advice. I am currently on baby steps 4,5,6 and he advises to add 15% of gross salary to pension and the rest can go on the mortgage. I am still adding more to my ISA as well. I know my pension is low but everyone's journey is different and I never had a job that paid into a pension. When I woke up to the fact I didn't have a pension I was already 36 . I was still saving for a deposit to buy a property, but started a pension and put £100 a month. We bought our flat in 2016, I was 37 then. In 2017 thanks to auto-enrolment my work pension started. I have been increasing my contributions gradually whist doing renovations in the flat (new kitchen, new bathroom, patio in the garden, etc etc). I am the breadwinner at home and pay all the big bills, including mortgage. Our plan is to move abroad and a paid off property would provide us with rental income. Unfortunately I can't escape the tax man and I don't intend on earning less, I want to earn more this year 

So from my tax refund I will allocate the money like this:
£1000 extra into my SIIP (to make 20% contribution from my gross pay this month)
£1500 S&S ISA
£1500 mortgage OP
£1000 will be kept in cash for spending money for our holiday in August
£162 will be added to this months spending budget as it's looking a little tight 

I get so excited about OP the mortgage that I have already sent the money to the mortgage lol. The rest will be sent once I actually receive the money from the tax man
Current mortgage balance -£209,940
Total OP so far £11,148.29/ £22,898
New mortgage end date May 2040 ( another 2 months taken off  )

Sensiblesaver

I am trying to add a signature but it's not working for some reason. Today my nephew is coming to spend a couple of days here and my son is very excited. They get on very well but don't see each other very often.

I finish work early on Thursdays and have done an online shop which should be arriving this afternoon. This week has been quiet at work but it gets better form tomorrow and next week is much busier. I ended up going for a long walk yesterday as I was so bored at work.

Sensiblesaver

Managed to add the signature, easier to see the progress 

Not much happening financial related other then I spent a bit more than usual as not being very organized meant I had to buy lunch twice this week. My nephew is here and I also left my card so they could go for breakfast at our local bakery and got them pizzas last night.

Still waiting on the tax refund, but I saw they have adjusted my tax code so I'll have a better net pay next month. Got £5 reward coming from NW, so small OP on the way.

I also had a quick chat with my boss about setting up salary sacrifice. He didn't even know what I was talking about. I gently reminded him of how much he paid in employer NI for me last year and told him he would save money as well, so he said he will talk to the company who does our payroll.

Sensiblesaver

What a lovely day, gorgeous weather 

My nephew has gone back home today, they had a great time together. 
I went for a 8km run this morning then spent the rest of the day in the garden. Our apple tree has blossomed and is looking really pretty, full of flowers. I put the hammock under the tree and lay there most of the morning with a book and my 4 legged companion who seems to enjoy the hammock as much as me. 

Sensiblesaver

Another 8km run
Got an e-mail cancelling my osteopath appointment tomorrow as he is sick, so I decided to OP the payment to the mortgage. I can wait to re-schedule my appointment to May. So another £50 sent to the mortgage.

Current mortgage balance -£209,885
Total OP so far £11,198.29/£22,898

Sensiblesaver

I've had a very busy week at work, so haven't updated here. On Thursday I did another OP of £10 as I got £9.25 cash back from vitality for shopping at Waitrose. We get 25% cashback on their good health range so we are trying to see if it's worth it. We usually do all our shopping in Sainsburys. Today I has another look at the budget and sent another £20 to the mortgage.

So mortgage current balance -£209.855
Total OP so far £11,228.29/£22,898

My tax refund is coming on Monday and payday is Friday so next week will be great as I get to jiggle lots of money around

newgirly

Good luck with your new diary 🙂

Sensiblesaver

thank you @newgirly

Just back from a 10k run. It's a lovely day but it got cold again. I wanted to spend the day in the garden but it's too cold so I came back inside. The thing I struggle the most in the UK is the weather, not sure how many more years I will be able to endure. This is why I save into a S&S ISA instead of putting more into the pension as if we move abroad I will have the money to buy somewhere else and get us started. Our son is 15 and has a few years yet until he decides what to do and we won't be tied to this location anymore. The plan is to hopefully move abroad in my early fifties somewhere warmer, not to retire but to still work and live a more balanced life. My husband works fully remote and can work anywhere as long as there is internet. If we have a paid off property in the UK it would give us a safety net in case we need to return. We would also rent it out and keep adding to the pension.

I will get on now and stop moaning about the weather lol. I need to go shopping for fresh fruit and veg/salad and will prepare my lunches and dinners for next couple of days. 

hugheskevi

The plan is to hopefully move abroad in my early fifties somewhere warmer, not to retire but to still work and live a more balanced 

Having spent several years overseas in various countries, I've come to really like the UK weather. The distinct seasons are so much better than the unrelenting heat and largely unchanged climate of many equatorial and tropical countries. And also the length of day too, with huge differences between summer and winter rather than sunrise and sunset always being around 6am and 6pm.

Although perhaps places with a bit nicer weather but still seasons and day variation would be the sweet spot.

The plan is to hopefully move abroad in my early fifties somewhere warmer, not to retire but to still work and live a more balanced life. My husband works fully remote and can work anywhere as long as there is internet. If we have a paid off property in the UK it would give us a safety net in case we need to return. We would also rent it out and keep adding to the pension.

I rented out my property in the last few years whilst overseas. The income tax and capital gains tax take a very big slice of income, and tenants are very likely to be a pain in one way or another. The costs of a fully managed service, repairs and maintenance, and insurance, plus all the tax, mean it is not a very profitable exercise nowadays. It was quite frustrating, as I didn't really want to be a landlord, but nor did I want to have no UK property so it was a case of the least of evils.

Will you have relevant UK earnings that attract tax relief when working abroad? Otherwise, UK pension contributions will not be attractive beyond £3,600 p/a each.

Sensiblesaver

Hi @hugheskevi, thank you for your views about UK weather. I was born in a place where the sun shines 300 days of the year and is always hot, so I am used to the heat and no seasons. The plan is still to move to Europe(most likely Portugal) as I wouldn't want to be too far from our son and I doubt he will want to leave the UK. My husband will keep his UK job so we can still get tax relief via his pension, plus the property rental income.

My ideal rich life consists of working 5-6 hours a day and going for a stroll at a beach somewhere. I don't mind a bit of winter but less rain and more sunshine is a must