Mortgage free in 4 years

Sensiblesaver

Since my birthday is coming up I was reflecting on where we are and decided to create a spreadsheet with my figures over the last 5 years and I can see that in the last few years things really started to happen in terms of increased net worth. I am not counting the house value as unless I rent it out or sell it it will not bring me income, but I do track total net worth with the house as well

At age 40 I had:   Pension £12,724  S&S ISA £5,073   Cash £12,250                                Total £30,047
At age 41 I had:   Pension £20,927  S&S ISA £7,195   Cash £15,139                                Total £43,261
At age 42 I had:   Pension £27,168  S&S ISA £12,655 Cash £18,000                                Total £57,823
At age 43 I had:   Pension:£39,826  S&S ISA £27,074  Cash £12467  Shares £2,645       Total £80,012
At age 44 I had:   Pension £45,739  S&S ISA £45,007  Cash £20,540  Shares £1,686      Total £112,972
At age 45 I have: Pension £81,580 S&S ISA £70,542 Cash £25,000 Shares £5,587         Total £182,709

In the last year alone it increased by £69,737 wow. I did not add all of it, a lot of it is thanks to stock markets doing so well Charlie Munger says the first 100k is a !!!!!! but after things started to get easier, it seems to be the case right now, I am quite happy with that .

hugheskevi

Remember that you might want to make adjustments to the values to account for the taxation due on various elements.

The ISA does has a value of £70,542 as that could be withdrawn and the amount used (aside from perhaps some trivial trading costs). Whereas the pension will have tax subtracted from it, so is worth less than the ISA. The same may apply to shares if capital gains were to be due.

Personally, I reduce the value of pension to 0.85 of capital value, to account for 20% tax being payable on 75% of the total. That might slightly undervalue it due to Personal Allowance resulting in 0% tax on some of the withdrawal, but State Pension will use Personal Allowance from State Pension age, so the undervaluation is not massive.

Sensiblesaver

I'm aware that the pension is taxable but I am not too much of a maths nerd and will leave the total for now. My shares values are too low to pay capital gains at the moment.

I had a lovely afternoon with friends, beautiful weather and the first time we have friends for a bbq this year. Made 2 healthy salads and DH cooked chicken wings, burgers, sausages and prawns. 

I can't believe the aurora borealis was visible in London on Friday, a friend managed to see it and took lovely photos. Now off to a nice and early run to start the day

Sensiblesaver

Yesterday was another gorgeous day spent mostly in the garden. Went for a 6k run, then took the dog for a walk. Decided to go food shopping to get a few thing and left Sainsburys with 3 bags, food shopping budget completely blown, will need to rejiggle my other pots.

We have a garden arch which has a honeysuckle climbing on the right side and over the top. I planted  a climbing rose on the left side and has now reached the top and is full of buds, will be very pretty once it all blooms The honeysuckle is looking great. I planted a few flowers I bought yesterday as well.

Me and DS played badminton and we had bbq for dinner, i had a whole seabass with grilled veggies and was yummy.

I sent another £10 OP to the mortgage, balance now -£207,870.

Aimingforthegoodlife

Those figures look great! Well done! Also, the mortgage is coming down nicely, keep up the great work!

Sensiblesaver

Have been quite busy with work this week. Birthday party was great fun, lots of nice food, laughter and lovely time spent with friends. And it didn't rain, even though weather forecast was for 50% rain, we covered our decking, but it remained clouded and a bit of sunshine towards the end. Ate too much food and too much alcohol, so had to rein in the rest of the week lol

I get paid on Tuesday, but got my payslip on Friday so have done my budget for June. It helps as Jun/Jul I don't pay professional insurance (it's divided in 10 months like council tax), but I kept the amount on the budget and will send £400 extra to the mortgage together with my usual £500. I can't send more as I need to keep some for our holiday in August. I wanted to get close to 10% but it's not going to happen this year.

We are struggling to find someone to look after our dog, our usual dog boarder can only have her part of the holidays. I contacted someone new that a friend recommended and we will meet her next week. I hope we like her as she has availability for the 3 weeks we are away. It's going to cost a fortune, almost 1k, so I have also added dog boarding to my budget this month.

We are going to a birthday party today and I will try not to eat too much as I lost the 2kg I put on after my party and I don't want it back lol

Sensiblesaver

Forgot to mention I received £20 cashback and sent to the mortgage. Balance now is -£207,850. Total overpayments in May were £1205.94

Unfortunately I went overbudget this month by £300. This overspent will be taken form my next pay and is accounted on my budget spreadsheet. Most of it was on groceries as we had people over and my birthday party. 

Sensiblesaver

Payday today, so mortgage OP sent. Managed to re-jiggle my budget and made  £1224 OP. Another month taken off the mortgage, new end date Feb 40.

Current balance -£206,626
Total OP so far £13,797/ £22898

There will be some smaller OPs made later once I get interest from my accounts and will round down the balance after normal payment goes through and interest is added.

I'm meeting 2 friends for lunch today and another one who I haven't seen in ages after work on Friday. So nice socials this week.

Sensiblesaver

Last Friday I saw a friend who I hadn't seen in about 4 years, we had a great time, but had too many glasses of wine and felt rubbish the following day. 

Have had a good week so far, busy at work but have been managing to wake up early and exercise in the mornings.

Normal mortgage payment went through and another small OP of £36.24. New balance -£205,760, signature updated.

Sensiblesaver

Got £25 cashback from vit@lity for shopping at W@itrose, so another OP sent to Mortgage and £20 interest form one of my savings also sent to the mortgage. New mortgage balance -£205.715.

I have bought quite a few clothes online, but will return some of them. Getting very excited for our holiday in August, not long to go . Paid £367 for the dog boarding and need to pay the other half in august. So next couple of paydays will be mainly covering holiday expenses and spending money, but will still OP the usual £500. If I stick to just the usual £500, mortgage will be below 200k in November, but I want to beat that and have it under 200k by September.