Massive Wannabe

78SH

I have been on MSE for yonks but always lurking around in the background.  I spent several years on a DMP, eventually managing to clear the lot (was around £60k) which is probably the hardest thing I have ever done and one of my proudest achievements!  

I bought my house four and a half years ago now and my mortgage renewal is coming up - eeeeew!  I overpay by £85ish each month anyway as I rounded up the payment to the next hundred but the outstanding amount is still overwhelming.  I am in my 40s and don't want to be paying it off for another 22 years.

I have some spare money in my budget from next month after finishing paying for my car.  I can't decide whether it's best to use that to ramp up my emergency savings to £15k and then start overpaying the mortgage each month or to do half and half while my interest late is lower.  

I love a good spreadsheet and am used to having a budget and tracking what is going where but I feel like I am wasting a fair amount of money these days.  Slightly obsessed with Vinted but need to start selling things as well as buying them!

I live on my own (+ dog) which I LOOOOOVE but losing my job and not being able to support myself also fills me with fear (hence the £15k savings I want to build up).  

I think I live a pretty quiet life, I am happy in my own company and can spend a whole weekend reading in the garden with my little dog next to me.  I got in to the habit of not going on holiday when I was paying off my debt and it doesn't really bother me now, I am happy spending a week at home just pottering, going away when you are single is so expensive! That said, I'd love a camper van!

I have a gym membership and need to start using that more often - it just seems a shame to be indoors when the weather is as lovely as it has been recently.  My dog gets a walk most days but she is pretty old and can't walk far (or at a normal walking pace).  I like running but am always a bit scared of being murdered while I'm doing it (?!)

I'll apologise in advance for my waffling and dithering.  Any advice or suggestions will be gladly received!

South_coast

78SH said:

I like running but am always a bit scared of being murdered while I'm doing it (?!)

How about a running club? That way you've got a good chance of them getting someone else first 🤷‍♀️🤣

How far away are you from the £15k EF target, and how long would it take you to get there if you were to put everything to it first before turning to OP'ing? That could sway the decision on whether to prioritise this first. 

Either way, welcome, and good luck with your plans 😀!

Exodi

What is the interest rate on your mortgage?

It sounds like it's fixed at a low rate, so if it's 2% (for example), it doesn't make sense overpaying £100 so you can save £2 a year in interest, compared to putting it in a savings account paying 5% (for example) generating £5 a year in interest.

You mentioned that your mortgage is up for renewal soon, so I appreciate you're likely going to get hiked up to 4.5% or something in the next six months, but there are regular savers (which fit your saving pattern of monthly contributions) that pay more (First Direct pays 7% on up to £300 per month for example).

Note - the above also depends on your tax position, if you exceed your personal savings allowance and have to pay tax on the interest, then it changes the calculations.

I think people often misinterpret the above advice as 'never overpay your mortgage' which scares them off. I'm not saying don't overpay it, just do it at a time that makes financial sense - if your mortgage is charging you more in interest than you are getting from your savings, then absolutely transfer your savings in and pivot. Likewise, if that doesn't happen and you amass a large amount in savings after many years and you see value in getting rid of the mortgage (particularly the security/emotional aspect) then pay it off.

From a numbers standpoint, it has made very little sense for most people to overpay a mortgage for a few years now.

78SH

South_coast said:

How about a running club? That way you've got a good chance of them getting someone else first 🤷‍♀️🤣

How far away are you from the £15k EF target, and how long would it take you to get there if you were to put everything to it first before turning to OP'ing? That could sway the decision on whether to prioritise this first. 

I think I'm still a bit slow for a running club, but if I could find a running club that also stops to pet every dog they come across then I would 100% be in! 

I'm £14k away and it will take me about two years.

Exodi said:

What is the interest rate on your mortgage?

It is 2.4% at the moment.  Thanks for your message too, I hadn't really considered that there was another option.  When you remortgage can you pay off a lump sum without a penalty?  I feel like I should already know the answer to this! 

I was in the office today (sob), genuinely don't know how I ever managed five days.  Haven't spent anything though and get an expenses payment tomorrow of £75ish.  I have a pile of "stuff" in the spare room to list on Vinted, I've promised myself that I will list ten items at the weekend.  

Working_Mum

78SH said:

South_coast said:

How about a running club? That way you've got a good chance of them getting someone else first 🤷‍♀️🤣

How far away are you from the £15k EF target, and how long would it take you to get there if you were to put everything to it first before turning to OP'ing? That could sway the decision on whether to prioritise this first. 

I think I'm still a bit slow for a running club, but if I could find a running club that also stops to pet every dog they come across then I would 100% be in! 

My new to running friend swears by ParkRun - lots of people who are at all different ages and abilities and are very encouraging. Worth a check out??

Good luck with your journey - I have subscribed!

78SH

Thanks @Working_Mum! I have done a few park runs and that's a really good shout actually!  I'm going to put it in my diary for the 31st and do exactly that!  I have a food shop delivery coming this Saturday morning and my niece will be here the Saturday after.

I listed five items on Vinted at lunchtime and one of them has sold already so pleased with that!
I ordered some embroidery thread to make friendship bracelets with the niece when she comes to stay, I used to spend hours making them when I was a kid so hopefully the small spend will be worthwhile and she'll enjoy it!
I've done an online food shop, I hate paying the delivery charge but I always end up overspending massively if I go in to a physical shop.  I eat the same things most days so it's pretty straightforward to just order from my favourites list.  Also means I don't waste much food and only buy what I need.
I also dropped two Amazon returns off on my way to the gym earlier so feel like I have had a pretty productive day!

It has been a bit chillier here today but still got a load of washing dry outside.  I have just watered the garden and filled up the window bird feeder, we had a starling riot taking place out there earlier!

78SH

I love working from home and being able to sit in the sunshine in a pair of shorts reading a book for an hour at lunchtime, it makes all the difference to my productivity in the afternoon! I'm trying to read A Court of Thorns and Roses which was recommended by a friend but struggling a bit to get in to it.
No spends today so pleased with that!
Have filled a bag with old towels and blankets to go to the RSPCA when I am next passing and have put aside a few tins from the food cupboard to donate when I next see a collection bin.
Another load of washing done and dried.  I'm trying to spread the loads through the week instead of saving them all up for the weekend.
Going to the gym with a friend shortly, we generally end up laughing hysterically at our lack of strength so looking forward to that.  
No plans for the weekend which is just how I like it! I love pottering!

78SH

Food shop delivered and put away.
One load of washing done and dried outside.
Cut the grass.  I don't tend to water the lawn but it is looking very dry so might give it a hose down later on.
Had to buy some dry dog food, thought I'd be able to scrape by until next month but we are a few days short.  It's not a problem as I have a pot for "Dog Stuff" that has more than enough to cover it and also had a 10% voucher from the shop because they miss me apparently (I buy a large bag that lasts just over three months).
Run done.  Was slow but didn't die so we'll class that as a success!
I am challenging myself to increase my mpg.  I've never really paid any attention to it before so if I can make a noticeable change to how often I have to fill the car up then "yay"!  The current reading this morning was 33mpg so I have started a new trip and we'll see what it says next weekend.  According to the internet I should be getting more like 50mpg.... We'll see!

HouseMartin567

78SH said:

South_coast said:

How about a running club? That way you've got a good chance of them getting someone else first 🤷‍♀️🤣

How far away are you from the £15k EF target, and how long would it take you to get there if you were to put everything to it first before turning to OP'ing? That could sway the decision on whether to prioritise this first. 

I think I'm still a bit slow for a running club, but if I could find a running club that also stops to pet every dog they come across then I would 100% be in! 

I'm £14k away and it will take me about two years.

Exodi said:

What is the interest rate on your mortgage?

It is 2.4% at the moment.  Thanks for your message too, I hadn't really considered that there was another option.  When you remortgage can you pay off a lump sum without a penalty?  I feel like I should already know the answer to this! 

I was in the office today (sob), genuinely don't know how I ever managed five days.  Haven't spent anything though and get an expenses payment tomorrow of £75ish.  I have a pile of "stuff" in the spare room to list on Vinted, I've promised myself that I will list ten items at the weekend.  

Check your T&Cs but the answer should be yes. With Barclays you can make any size repayment/overpayment in the last 30 days of your mortgage (fixed) term without incurring any ERC.

78SH

Thanks @HouseMartin567! I will bear that in mind!

Had a bit of a spendy morning but all budgeted for so not concerned.  Needed some new underwear,  I'm finding that my clothes are all fading and going thin really quickly - not sure if it's the laundry detergent I'm using or maybe the really sunny weather we have had recently?  Bought a few bath bombs for when the niece stays and also replenished a few supplements that had run out.  Was in and out of town in 90 minutes!
Also drove there and back really slowly  Not sure how the commute is going to go tomorrow 

78SH

Did the commute at 65mph max, was actually quite enjoyable just pootling along!
Called and booked the car in for a service and MOT in June, have a savings pot for the car so it will be fine but it always just feels like such a lot!
No unbudgeted spending today   
Posted two Vinted bits that have sold and listed a couple more bits on there and Ebay.
Looking forward to payday on Friday so I can update my spreadsheets 
Back in the office again tomorrow so should only be spending on lunch again (subsidised canteen!)