Prosperous & Creative Soul Year 4

LadyWithAPlan

Trip and that artwork looks fabulous! Glad you had a great time 

OpalGirl

Great photos and wonderful memories made which will last forever.

EssexHebridean

Pleased you had such a lovely time!

savingholmes

Thanks Jwil, Merlin, TG, Beanie, Dawn, KK, LWAP, Opal, EH

I think it all went better than expected - but I'm understandably exhausted this week. I finished earlier than planned today as I had zero concentration as the afternoon wore on. I need to look what meetings I have tomorrow still - and ensure I do at least the essentials before then. I've booked half a day off tomorrow - so that can cushion my flexi from today - and let me still go to art tomorrow evening.

Seen some very pretty rainbows from my work from home space today. 

I've been distracted getting my £ up to date. I feel like I've struggled this year - since having the work done on the house towards the backend of last year - and upping my AVCs.

However my net after CC savings dropped from £26K to £1.8K. But for that £24.2K difference:

• I boosted my AVCs (pension lump sum) by an extra £550 a month starting last October (£6K) on top of the £450 I was already paying or £14.1K (including growth) 3/9/24 to now.
• Patio and drive and raised beds c£12K.
• Art course c £3K.
• Electric garage door c£1.4K.
• New sofa and chair last Dec c £1K.
• Replaced the lounge and hall floor and had asbestos removal - over £2K.
• DS wedding gift - and written off a longstanding debt as part of that (at a level I feel I could offer DD if she gets married).
• I've been on trips of a lifetime to Italy and the US...
• Bought a new laptop circa £0.8K.
• Invested over £0.6K in my business idea

So may be I should stop beating myself up - especially as a house price app suggests I've gained up to £20K in equity since moving here (excluding the works). I know I'm probably repeating myself - but trying to stop that beating self up thing is hard!!

savingholmes

I want to recommit to clearing down my 0% CCs by next August.- especially as I have to remortgage at the end of 2026
1. Payable out of September pay £200
2. CC2 £9,865  - Current forecast to use £5.3K from savings Aug 26. Want to only use that amount or less from savings to achieve my goal.
3. CC3 £13,291 - Current forecast to use £8.5K from savings Aug 26. Want to only use that amount or less from savings to achieve my goal.
 
On CCs 2 and 3 - currently sending a minimum of £470 a month but have been re-spending some of that - so need to resolve that bad habit. If I can go back to only using cash/debit card that will help. I have some challenges though between now and end of the year:

Current pay period: 

• Heirloom ring re-sizing £200 - pick up this week. (I was really pleased with this price as it's 18c gold and needs a new shaft)

Sept pay

• Trip with DS, partner and wider fam - and picnic out and some food here
• Car insurance 

Oct pay

• MOT and car service out of October pay
• DS and partner leaving meal out paid for by me for wider fam
• Meal just me, DS and partner

Nov pay

• Further DS and partner event late November just before they emigrate
• Christmas
• Family birthday

Dec pay

• Christmas
• Family birthday
• Boost Oz holiday savings fund

savingholmes

In terms of my longer term goals - this is in my signature - but I know some people turn those off on mobile devices

Achieve FIRE/Mortgage Neutrality in 2030

1) MFW Nov 21 £202K [s][/s] now £172.5K Equity 36.11% 

2) £1.6K Net savings after CCs 14/8/25

3) Mortgage neutral by 06/30 (AVC £25.6K  + Lump Sums DB £4.6K + (25% of SIPP 1.2K) = 31.4/£127.5K target 24.6% 1/9/25 

(If took bigger lump sum = 53.3K or 41.8%)

4) FI Age 60 income target £17.1/30K 57% (may need more depending on mortgage scenario - or less if paid off) 

(If bigger lump sum £15.8/30K 52.67%)

5) SIPP £4.8K updated 29/7/25

If my figures are correct I've paid roughly £29.5K off my mortgage since Nov 21. If Z***a is correct my property has increased by £20K in value due to a rising market where I live.

At pension figures ending March 2025 it looks like if I take the smallest lump sum on an earlier DB and combine that with my (total) AVCs and SIPP 25%- I'm 24.6% of the way to my mortgage neutral target with all but 10-15% of that due to my efforts since Nov 2021 when I took out this mortgage. If I sacrificed more of my annual income however - I could be closer to 41.8% of my target which feels phenomenal. It currently looks like I could get to within 10K of my mortgage neutral target (excluding growth) by 2030 - which I think would be close enough to pull the plug on my job.

I'm not sure I could manage on £30K if I kept my mortgage - but if I could - then I'm 57% of the way there. My (DB pensions) have probably increased in value by around a third just over the last 4 years. While if I work another 5 years full time - I'm currently forecasting to be about £6K short if my target is £30K. I  doubt I can stick it out there for another 5 years though. It's possible I could qualify for benefits to plug some of that gap. I'd be fine once state pension kicked in. Ideally I create a second income from my business idea and that then become self-sustaining.

savingholmes

Having to ask for seatbelt extenders on the plane also wasn't fun. So I also need to do more towards improving my health and fitness both before I go to Oz next year and in general before and during 'retirement'.

savingholmes

I've been engaging in lifestyle creep - particularly on clothes and art - so need to rein that back in. I've redone my list of requirements budget wise for age 60 income target - and while with holidays included it is coming out at £32K ish a year required - if I strip back non-essentials I can get the figure below £30K in my hand a year. I'm still firmly in the I want VR camp - although if I knew that it was imminent / a real possibility I'd want to find a way to put more into my pension in the time left. I will feel so 'rich' once the CCs are clear again... 

My mortgage currently accounts for over £11K of the £30-32K income target at age 60. 

Between now and this time next year - I hope to boost AVCs by £12K plus growth - and have closer to £14/15K in net savings, with the CCs gone entirely. Whether that is achievable will partly depend on when I go to Oz next year - as some of that figure may be needed for the trip although I've been promised a free return ticket - and am likely to have free accommodation most of the time. Having savings and no debt outside the mortgage should make re-mortgaging simpler.

This excludes any house related spending - ideally I'd still like to organise a joiner and an electrician but for now I'm going to try and focus on spending less and saving (and paying off) more.  I'd like to get back to 1 year's worth of savings - as that could also help fund a replacement car when needed. My car is 9-10 years old - but its diesel so I'm hoping it has plenty of life left in it.

jwil

Good luck with it all!  You've got some nice stuff to look forward to as well as focussing on savings/paying down the CCs.

Merlin's_Beard

It sounds like you have clear concrete goals to aim at and you know what you need to do to get there!