Knocking years off the mortgage…that’s the goal!

[Deleted User]

I wondered if you have heard of piggy banking before, it is where you save a bit of money into different pots these could be real life different accounts or an excel spreadsheet telling you what all the money is for. I personally don't use this method for the time being as I don't have enough income for each element, and I am trying to just save EF first. However I may use it in the future once I come up with a plan as I know it can work and can help keep your budget on track.

Also have you seen the MFIT challenges, it could be worth going for if you have a particular goal in mind.

Good luck on your progress, although you look like you are doing well, keep it upXX

Sammie_1985

I haven’t heard of that @[Deleted User] is it like when people have different monzo pots? And you allocate your money between different pots? 

[Deleted User]

Yes you need to do a proper budget, have a an indea what you want to spend on holiday, new car, EF, Kids clothing, Christmas, Medical needs, Optical needs etc, Take your time to create the budget check previous years spend and either strive to spend less i.e have a slightly smaller pot or create realistic pots where you spend the same or incremenally a bit more covering inflation, this way you will know where you stand with your budget.

For example if you get glasses every two years and last year this cost £350, you could say to yourself that was too much and say I could actually spend less and have a pot for £300/ £200 etc. or better yet keep it at £350 and then any money you save from being more frugal put towards the mortgage OP.

Once you have decided on an amount, work out the date you are likely to need this for example you might say to yourself 2 years as that is when opticians recommend a new eye test, so that is 24 months, however this happened last month so 23 months now.

I will open a standard current account with the same bank provider so I can see my different balances titled Opticians/ or have one big savings account and utilise a spreadsheet for what the balance in a savings account represents, this is recommended because then you can use a higher interest account to store the money, which would need to be easy access (But more interest then a generic account).

Next you need to either set up a SO (Standing Order) and work out how much you need to put in the account/ spreadsheet for Opticians, we know there is 23 months and we have decided to use the same figure as last year however hoping to reduce this when the time comes around therefore 350/23 = £15.22 (rounding up).

Then when it comes around to go to the opticians in 23 months or whenever that is, you will either have the full amount at your fingertips or something to put towards it, but also you know where you stand with your finances because instead of paying out £350 every two years you are actually breaking this up across the year/ s and the impact is not so burdonsome, plus you have less unexpected expenses as you are being organised.

And if you have an EF for unexpected issues that may arise, you will know where you stand with your cash, you can plan everything and you will know exactly what to put towards OPs each month, then you can predict the potential outcome wipe balance 6 years earlier or 20 years, want to improve it then you either need a better income and / or improve your budget. Of course the best way of improving your situation is earning more because you don't want to set unrealistic goals, which won't work and will ruin your attempt.

Doing all of this you will need a spreadsheet ideally pen and paper works too, just don't forget anything and it will work. If you don't know how to use a spreadsheet try and up your skills otherwise pen and paper can be good too. And don't be afraid of spreadsheets they can be a great tool and once you get familiar with it it will do a lot of the hardwork for you, like totalling balances etc.

Do ask if you have any questions.

All the best Crazy XX

Sammie_1985

Thank you @[Deleted User] for the information. I will look into it properly once youngest is back at school. Myself and hubby have separate bank accounts and certain bills come from his and then other bills I pay from mine so I could just set it up on what comes from mine I suppose. 

Today is cold 🥶 and the last day before normality resumes. Back to school, Uni and work for the boys tomorrow. 

I have a tub in my wardrobe which I chuck all our loose change into, I then take it to a supermarket and use the machines where they take a percentage but you get the rest in cash. Last year we had £178 and managed to clog the machine 🫣 will sort out my purse today and throw any extras in there and change it up. Usually I just keep the cash but I’m thinking I’ll split it 50/50 between a mortgage overpayment and savings. Not sure how much I have but hoping for around £70 this time. 🤞🏼 I don’t think there’s anywhere near the amount we had last year. 

South_coast

If you're taking the change to the supermarket anyway, why not feed it into a self-checkout instead? You might need to split it over a few trips, as they'll only hold so much. I know the machines don't charge a huge amount of commission, but it's still your hard-earned money and not theirs!

Sammie_1985

South_coast said:

If you're taking the change to the supermarket anyway, why not feed it into a self-checkout instead? You might need to split it over a few trips, as they'll only hold so much. I know the machines don't charge a huge amount of commission, but it's still your hard-earned money and not theirs!

Thank you @South_coast I do this with a lot of my change in my purse when I go to self checkout. Always get rid of those pesky 5p’s and coppers I have first! 

The amount I’ve saved, knowing my luck, would clog the checkout 🤣 didn’t think about using the coins from my pot though so I will check through the pot first and take out anything above 20p so I can continue to use them at self service and the rest I’ll Chuck through the machine. A lot of it is just 5p’s and coppers. 

Sammie_1985

Back to normal routine today. Surprisingly I was awake before my 6am alarm! Haven’t been waking up until 8ish over the holidays so was dreading this morning! 

✔️Top up food shop - £65.47
✔️Home B@rgains top up shop - £25.79

sorted fridge and food cupboards and took overflowing recycling bin out! 

Now just the daily jobs left to do. 

Feel like today is the start of really cracking down with spending, saving and overpaying mortgage. Always hard not to spend when kids are at home (especially over Christmas!) 

aiming for at least 4 NSD’s this week 🤞🏼now shopping has been bought. 

Sammie_1985

Small overpayment of £28.65 to bring the mortgage to an even £188,600. 

Sammie_1985

It’s a cold one today 🥶 

nothing planned so I'm hoping for my first NSD of the week. 🤞🏼 
I want to sort through our paperwork and categorise it all into separate folders (bought from HB yesterday, pack of 6 for 99p) then I can shred what we don’t need anymore.  

Need to change DS1 & DS2’s bedding today then just normal daily jobs. 

Also need to have a look and see which Gou$to meal I fancy cooking this evening. 

Sammie_1985

NSD number 1 of the week yesterday ✔️

I managed to sort out all our paperwork and categorised it into separate folders, have a lot to shred so will take that to my mums and use her shredder. 

Popping to a friends for a catch up as haven’t seen her since before Christmas, should be another NSD as there isn’t anything I ‘need’. 

 Council tax came out this morning (£220 🙄) but looking forward to not having to pay now for 2 months 🙌🏼 before it inevitably goes up again in April! Feb payment will go towards mortgage and March will go into savings.