My Five Year Focused, Frugal and Fun Challenge

StripeyTightsSpottySocks

Hello all 

it has been a long time since I posted on here and a lot has changed.

I'm now single and bought my new home last year.
 

It needs a lot of work but after the next couple of jobs are done I’m having a break from doing anything else so I can focus on paying the mortgage off. 

I wouldn’t book any of the people again who I’ve paid to do some work  but those jobs are now done and I’m just looking forward. I will continue to do anything I can myself in the meantime, to save money as well as make improvements to maintain and add value to my home 

The amount to pay off in 5 years:

The mortgage is in 2 parts and I’ll be focusing on clearing the smaller balance first. The interest rate is 4.98% and as of today the balance is £21,612.26. 

This mortgage fix ends in August and I can fix a new deal from 1st June. My next overpayment will incur an ERC so I need to check how much this will be first.

The other mortgage is £84,060.42. This has another 18 months to go before I can get a fixed deal.

I had the work done on the house as well as buying some essential furniture (second hand) using 0% credit cards. I owe £10,973.

I also owe approximately £2,000 on my student loan but need to check the figure as a small payment I made is not showing.

My aim is to clear the smaller mortgage balance and the credit cards and student loan in the next 2 years. And then push to clear the remaining mortgage within 3 years. 

I’ve never been a planner but hoping posting here again will keep my focus, momentum and enthusiasm going.

There is no overtime at work - ever - and, before moving, I sold most of the things I could sell which would not have fitted here. I will try and sell things I no longer want or need. I’ll also try and look for ideas to make a little extra - this will go straight off the cards as the 0% deals are coming to an end.

My budget is already reduced as far as it can be. I don’t like to waste things but have been ill on and off for much of this year and am disappointed at the food I needed to throw away and also the money I spent ordering food due to being ill.

Health is a big focus for me. I’m starting now with what should be easy things - increasing my water intake and getting out for daily walks before building up to running again.

i have gained a lot of weight through illness. I bought 4 dresses in the charity shop today - they don’t have a fitting room - I’ll be returning 3 and keeping one as my ‘target’ dress to fit into - it’s just a bit too small, but perfect for a themed event I attend several times a year and is a timeless style. Losing weight and getting fit will help my health and help my £s - I have lots of lovely clothes I want to be able to wear again  I also don’t want to buy a new wardrobe of clothes in a larger size.

i don’t like the odd numbers on the balances but have nothing spare to pay towards them.

This is a huge challenge for me - and I have fun in my title to remind me not to become too focused and enjoy life too 

I'm aiming to overpay £800 a month towards the mortgage.

i’m paying £210 regular payments to the cards and trying to pay an extra £290 each month.

I'm not paying anything extra to the student loan at the moment.

Any suggestions are welcome 

Mark_d

To minimise any interest you have to pay you need to pay off the most expensive debts first.  So if your mortgage costs you 5% and your credit cards are on 0% then I'd put any spare cash into the mortgage and make minimum repayments on  the credit cards.

Overall, whilst being mortgage-free sounds great, to be better off in the long term you need to earn more than you spend.  I suspect that investing your money in home improvements will yield a much higher return than the 5% interest you pay on our mortgage.  On this basis I would keep mortgage payments as low as possible and spend your spare cash on home improvements that increase the value of your home.

South_coast

Welcome back! 

If your OP's on the smaller mortgage are going to attract an ERC, would it be better to divert those to the larger mortgage for a couple of months until you're on a new deal? That said, I do appreciate the psychological benefit of seeing the balance drop, so it might be worth taking the hit on. 

I'm not sure I understand the logic of the previous poster in focusing on increasing the value of the property, as you'll only see the benefit of that when selling - unless they anticipate you re-mortgaging to take more money out of the property 🤔? Either way, I prefer your plan!

StripeyTightsSpottySocks

Today I’ve had a reduced priced tea - 68p which I bought yesterday.

i will use the leftovers tomorrow with some fish my mum bought for me I’ve lifted this out of the freezer and a tin of vegetables 🙂

the only spends so far today have been the dresses - whilst I still only have a few outfits that fit me I now need this to motivate me to get into shape 🙂

Other than the targets above I have other things I want for my home - the previous owner had said would leave the light fittings - but removed them and just left bulbs. It will cost me £170 buy the lights I want for everywhere but 1 room.

My hoover doesn’t work very well since the plasterer used it  so I’d like a new one - I think on offer I have seen for £150.

i also need some other bits of furniture but am happy to wait and see what comes up second hand.

i need to think how to fund these wants 

StripeyTightsSpottySocks

Ooh visitors  I hadn’t refreshed the page so didn’t see.

hi @Mark_d thank you for stopping by - because the 0% cards end this year I’m aiming to clear the balance on 2 cards and then transfer the remaining balance of the other card onto those. If I could’ve got another card to transfer to I would’ve.

i was all set to get the house jobs done then overpay but I’ve made the decision for this financial security and I’m so happy and motivated by it and feel like a weight has been lifted so I know this is the right choice for me.

@South_coast hi it’s good to see you again  I’ve been popping into diaries now and then, I hope all is good with you?

If the ERC was significant I would focus on the other mortgage- as it is I am likely to be on a higher interest when I remortgage- I only just managed to get the new lending approved on the larger mortgage. So overpaying £800 a month on the lower mortgage works for me - the ERC for that each month is a few pounds- I don’t like to waste money but the psychological benefit of paying this off will be huge.

StripeyTightsSpottySocks

Despite oversleeping it has been a productive day 

Got to work on time

I have done the washing, hung this out to dry and will bring this in a bit later

i have spoken with my mortgage provider who have confirmed the ERC - yes, I’d prefer the couple of pounds in my pocket but the lower balance will lower the interest too so in real terms it is a very small amount £

i have bought a wedding gift for much less than I budgeted after the price dropped significantly 

I had leftovers for breakfast and lunch and have some leftovers along with gifted fish and a tin I already had in for my evening meal - although I think my cat will end up with more fish than me 

Paid £17.99 to my lowest balance credit card - I had a small win on the l ottery

listed 2 items for sale and responded to lots of questions 

sorted a couple of items for charity

had a bit of a tidy through

this should not be a spending diary  but I think I’m going to use some of the money for the house jobs on new lights throughout- I got notified of a new low price and light fittings instead of bare bulbs in each room will make a huge difference when I finish painting. It’s hard to spend the money though!

StripeyTightsSpottySocks

My aim is to update once a week at least - just more frequently now as I want to get into good routines - and forgot to mention some things 

weight today 12 stone 2.5lbs

I’ve been drinking water - wasn’t up early enough for a walk but will be walking later 

spent £4.08 on reduced food - included a cake - a want - and something I need to be more mindful of for £s and lbs

I'm excited for the 1st of the month - that’s when my mortgage is paid and I can see the interest added - hoping for some reduction after my overpayment 

After this I’m then excited for payday so I can overpay again 

Then I’m excited for the 1st of June when I can see the new balance and arrange what should be the final mortgage deal? on the smaller mortgage balance 

Tomorrow I need to
weigh in
drink water
Ring someone about their quote 
Washing (I didn’t do any whilst poorly)
List 2 items to sell
Tidy and clean

My meal was an odd combination but it was healthy and very cheap

im aiming to use up the tins I have and just buy when I need them 

StripeyTightsSpottySocks

Can anyone let me know how to do a signature on my phone please 

StripeyTightsSpottySocks

I’ve managed another payment to the target card of £31.99 due to a refund for poor service   

There are set payments each month of £210 to the 0% cards which I am hoping to push to £500 a month with extra payments. I pay anything left from wages to this. 

I’ve had a wee pay rise confirmed at work, only a small one and I’m unsure of what the net difference in pay will be but it will be extra. That will be paid from May’s wage. 

Any other extra money goes to these cards - focusing on the smallest balance first.

I also pay £800 a month mortgage overpayment, targeting the smallest mortgage first.

I am saving separately to repay the student loan in full - I will have to look up the small extra payment I made and salary payments as the balance does not seem to have updated with these.

in 2 years (now, April being Month 1) I hope to have paid off the 3 credit cards, the smaller mortgage and the student loan. * I must note the amount I’m aiming to clear in that time

the following 3 years will be paying off the larger mortgage

the following 2 years will be saving up for a buy to let given my lack of pension - I lost all the money in my first 2 pensions due to fees  I was then worried about losing more money but also worked at companies which would only allow you to join the pension after working there for a certain length of time, several redundancies later, due to companies going into liquidation, and my pension is paltry. I did save privately but it wasn’t much given I was trying to keep my home and was wary of losing my money again.

I guess the plans a bit longer than 5 years then 

South_coast

StripeyTightsSpottySocks said:

Can anyone let me know how to do a signature on my phone please 

Click on the icon on the top right, next to the magnifying glass. Then Account & Privacy Settings, then scroll down to Signature Settings

skint_spice

Welcome to MFW, good luck with your plans.