LJ's Mortgage free road to early retirement

LouiseJ

_party_Happy New Year everyone_party_

As of this moment I am now officially Debt Free from all unsecured debt and Credit Cards:j

I am now planning to pay of my Mortgage as quickly as possible, here is my current sutuation

Mortgage £47283
Additional Borrowing £9545
Total owed on Mortgage account = £56829 Rate + 0.24% above BR currently 5.74%
My current end date 26/05/2023 paying £463 per month

My aim at the moment is to be mortgage free by 14/07/14 meaning I will have to overpay everymonth by £310 and be mortgage free by age 42 and OH 50 I would love to be able to retire early with him and travel the world.

Trouble is I have loads going on and an upredictable wage but more on that later...

Good luck to anyone else on a mortgage free or other debt free journey.

MissKJ

Well done Louise. It must be a wonderful feeling!

LouiseJ

MissKJ wrote: »

Well done Louise. It must be a wonderful feeling!

Thanks MissKJ

It will be lovely to not have those pesky credit card bills coming through my letter box every month, I have cheated somewhat though as the £9545 was borrowed to pay off some of my credit card debt 2 years ago, Yes I was in a bit of a mess.

I will be really happy when that figure is gone and as I can choose which account the overpayment goes to, guess which one is being paid off first:rolleyes:

angelavdavis

Congratulations!

As someone who has been through a similar experience and is now concentrating on clearing the mortgage - its a great place to be.

Look forward to reading your progress.

MissKJ

Doesn't really matter how you get there, so long as you make progress and pay less interest to the sharks!! I am considering doing the same. I have enough equity to get a reasonable mortgage deal and pay off some or all of the credit cards, then I will CUT THEM UP! AND WRITE TO SAY STOP OFFERING ME MORE MONEY. Seems better to be overpaying on loans not credit cards as it seems more like progress and a step nearer to being a MFW!

quote=LouiseJ;7590125]Thanks MissKJ

It will be lovely to not have those pesky credit card bills coming through my letter box every month, I have cheated somewhat though as the £9545 was borrowed to pay off some of my credit card debt 2 years ago, Yes I was in a bit of a mess.

I will be really happy when that figure is gone and as I can choose which account the overpayment goes to, guess which one is being paid off first:rolleyes:[/quote]

LouiseJ

A little bit about myself:

I am currently working P/T as a college lecturer which is hourly paid temp contract, which basically means if I am not at work I don’t get paid e.g college holidays. At the moment I have 11 hours per week with the promise of some more classes starting up in January.

My monthly take home wage can be anything from £300 to £1200 depending on the available teaching hours and term time (summer is really bad as I don’t work from end of June to middle of September).

I also have a small business that I run from home doing book keeping and accounting work but I have to limit this due to teaching and try to take more work on in the summer although it doesn’t always work out that way.

I can hear you already saying to yourselves “why don’t you get a more stable job LJ” but in my defence I have two DS and I work around the school hours, I always have and don’t intend to change that arrangement for now plus the teaching pays well and I would struggle with childcare in the long school holidays.

My plan is for all 4 of us to live off my OH wage for everything so anything I make can be saved or paid off the mortgage.

I also have other plans up my sleeve….

Thanks to those that read this and forgive any future rambling, as I am sure it will come. X LJ

LouiseJ

Just got a £10 gift from Grandfather and got paid for some book keeping so £67.50 into the overpayment pot.

I've got to start somewhere and its a long way till next pay day and already used up this months wage on clearing last of CC debt. Wont get paid now until 31st Jan, have to think of a cunning plan to make more dosh!

Will keep you posted.

xx LJ

P.S. Dont worry I will still feed the kids as have OH wage to live off although I have never actually done this before OH DEAR No GOING BACK NOW!

LouiseJ

Just working out exactly how much I need to save each month to fulfil all commitments I already have.

OH salary covers all bills and basic mortgage payment including monthly payments of £47 to his PP, £20 into Kids family assurance plan and £60 into a Axa sun life cashbuilder plan (you know the one, Carol Smiley draped over a car holding loads of cash).
This leaves us £650 per month of his salary for food, petrol etc. His is due an inflationary rise of 3% in January so about another £40 after tax I recon.

Other MONTHLY commitments are
· £300 Stocks & Shares ISA
· £80 kids regular saver
· We have also booked a family trip to Florida which I need to save another £2100 by end of May so that’s £525 a month.
· Mortgage Overpayment £310

Total = £1215

Income
Teaching (Average) £650
Family Allowance £120
Child Tax Credit £41
Business Income £349 (Regular Monthly contracts)

Total £1160

That leaves me £55 short!! :eek:

angelavdavis

Have you considered something like AQA to fill in your lean times of teaching? It is completely flexible, can be done from home, and all you need to do is pass the test they set up and register as self-employed to do it.

Some of the DFWs have been writing about it recently as they are currently employing in the UK.

http://www.issuebits.co.uk/

It sounds like it would be ideal for your situation.

LouiseJ

Thanks for the AQA link

I have applied before but they didn't get back in touch after confirming my application had been received. I have given them another go so I will wait to see what happens.

x LJ

LouiseJ

LouiseJ wrote: »

· We have also booked a family trip to Florida which I need to save another £2100 by end of May so that’s £525 a month.


Total = £1215

Income
Teaching (Average) £650
Family Allowance £120
Child Tax Credit £41
Business Income £349 (Regular Monthly contracts)

Total £1160

That leaves me £55 short!! :eek:

Just had another look at the Florida savings and I only need to save £1360 by May as the rest is spending money so I have till July to save for that.

That means that I need to save £455 per month and not £525 which makes me £15 over not £55 short:T Still a bit tight though!