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  • FIRST POST
    • MovingForwards
    • By MovingForwards 15th Nov 19, 7:08 PM
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    MovingForwards
    Moving forward and upwards
    • #1
    • 15th Nov 19, 7:08 PM
    Moving forward and upwards 15th Nov 19 at 7:08 PM
    I decided today to bite the bullet and start a saving for a deposit diary.

    Moving away from my other diary as that served its purpose for that part of my life. Its now time to focus on my next goal, buying my own home, for that I need a 15% deposit.

    For nearly three years I've been saving my pennies, saving chunks of my wages, locking money away into fixed rate bonds and repeating the process each January. Updating spreadsheets is part of my daily life, as I can see how things are progressing each month and how things changed since the previous year.

    Along this journey I've had to shell out rental deposit, moving costs, furnishing a rental, quitting a well paid job, temping part-time for most of this year before recently securing my current role, buying a car, repairs etc.

    On top of that I've handled my own divorce, which was granted this week, started a part-time OU degree, having a complete career change and I am looking to my future.

    I've been continuously saving each payday, had nice PPI payouts, clearing aged debts, been rebuilding my credit history and generally getting on with my new life.

    For over a year I've had my mortgage broker and am working closely with him, checking I'm on the right track and drop random emails to him with updates and queries. To his credit, he is very helpful!

    I'm now in a position to put half my wages away each month into my mortgage savings accounts (MSA's), with that my deposit increases and it allows me to increase the maximum property price I look at by nearly £5k, but as with everyone I'm restricted to an absolute upper limit due to my income.

    If I think of it like steps, the absolute highest step is 10th away from the bottom, for that I am looking at 11 pay days or 11 months as I can't quite reach the amount required each month to move up a step; I'm always just a tiny bit short and still want the option of going out occasionally, getting a hair cut etc, but I do allow myself a chippy night once a month.

    I could keep saving after reaching the top, but I have no interest in doing so, I don't want to keep paying out dead money each month in rent as that could be going on my own home.

    Step I'm currently standing on:

    Step 1 - I'm at 15% of the lowest price I can buy at.
Page 3
    • MovingForwards
    • By MovingForwards 17th Jan 20, 5:56 PM
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    MovingForwards
    Friday update.

    Had my 3 month probationary review yesterday, it went really well and I'm getting more things to do, looks like my boss got his way of getting me to do things over and above my role but there is a reason behind it, which I will share if it happens

    Been planning my future a bit since I started this job, I have a DB pension I'm paying into with them. Whilst I can't increase my monthly pension payments, I've got the necessary information to read through about AVCs. They mentioned buying an annuity with the AVCs when I retire, but I'm not sure that is what I want, I must look into pensions a lot more. I know what I want to achieve, it's how to go about getting it on my salary.

    I'm torn between increasing my S&S ISA, doing a self-managed S&S collection, pension cash/long-term savings, AVCs or a combination of them.

    I've set myself a target date of August (annual payrise) to have a plan formulated.

    Starting to gather up sturdy boxes from work, will bring some home each month, scale down my possessions and pack the remainder. I don't want a mad panic rush to move when the time comes, it stressed me out too much relocating and then again when I had to move rentals. I want to set the pace and take it slowly.

    Don't think I've said, I've moved my savings around so I've a decent amount in a reasonable interest paying account, means I will get about £12 a month in interest for the one account, which all helps.

    I have reclaimed two current accounts from property savings; one is now my car fund the other is currently furniture, but will be turned into property repair fund in due course. It is very strange just having two savings accounts for my deposit / associated fees.

    I'm slowing my savings down a bit from this month, will be putting £700 into property savings, £25 into PB and £25 between car / furniture; need to get my car fund up a bit more by April for my insurance.

    I have to break the habit I've got into of saving every penny, it's ok for me to get my hair cut every few months, go for a coffee occasionally and still save. I will plan my fun budget in April and give myself a small cash allowance. Not that I'm concerned I will be back to no money and in debt, that's a road I'm never going down again, just to do everyday normal things and not think I should save the money, I can do both.

    January Plans:

    Got an exciting morning planned for tomorrow.....I'm off to IKEA

    Next weekend I'm off to BHF.

    February Plans:

    Next months exciting day out will be to have a nose round reclaimers see what they have in and how the prices sit with me.

    Currently got £25 in the bank and 11 days til payday.

    Have a lovely weekend everyone!
    • Skint yet Again
    • By Skint yet Again 17th Jan 20, 8:17 PM
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    Skint yet Again
    You sound very organised MovingForwards. Well done on the probationary review it all sounds very promising. I wish I knew more about pensions but I wouldn’t know where to start!
    Balance 0% credit card £1360 Balance £548 £0
    0% Car Loan £7500 £160 a month last payment £140 due 1/1/2020 ~ paid in full
    Emergency fund £1000
    • MovingForwards
    • By MovingForwards 17th Jan 20, 8:29 PM
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    • 3,679 Thanks
    MovingForwards
    You sound very organised MovingForwards. Well done on the probationary review it all sounds very promising. I wish I knew more about pensions but I wouldn’t know where to start!
    Originally posted by Skint yet Again
    Thank you, I'm obsessively organised!

    There is no issue with my work / role, my manager is just counting down the time til the official letter can be handed to me

    I've tried looking at pensions again, it's too much for my little brain
    • savingholmes
    • By savingholmes 18th Jan 20, 10:55 PM
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    savingholmes
    Hi MF - glad the probationary review went well and that they continue to make adjustments for you. I would be tempted to focus on buying your own place and come back to AVCs later. Even with AVCs you may be able to transfer the to a SIPP at some point - or you can set it up as a sipp and do it yourself from the start. If you are unsure the AVC is likely to be the easiest route. Glad you got a DB pension.
    During 2020: Target 1) £25,121 to be repaid in 2020 (0%) Now down to £24,703 Target 2) repay £1450 off (OP £102.51) mortgage now 144872 @1.7% Target 3) Set up SIPPs Target 4) Declutter 52 bags - now done 4/52
    • jayniee1964
    • By jayniee1964 18th Jan 20, 11:46 PM
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    jayniee1964
    Hi MovingForwards, just want to say good on you! Nice to see someone so ambitious in this current climate!
    • MovingForwards
    • By MovingForwards 19th Jan 20, 10:42 AM
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    MovingForwards
    Hi MF - glad the probationary review went well and that they continue to make adjustments for you. I would be tempted to focus on buying your own place and come back to AVCs later. Even with AVCs you may be able to transfer the to a SIPP at some point - or you can set it up as a sipp and do it yourself from the start. If you are unsure the AVC is likely to be the easiest route. Glad you got a DB pension.
    Originally posted by savingholmes
    Good morning SH, the focus is buying, I'm not doing anything else about the pension at the moment, just trying to see what options I have and understand what I need to do to get what I want.

    Once I've my own place my plan is:
    * to make small overpayments (OP) for a few months, as it gives me time to start receiving the gas / electric bills and adjust my budget accordingly.
    * then when I get my annual payrise split it 50/50 between OP and pension.
    * by January 2021 I will have settled into my new life, my budgets will be a reflection of my outgoings and I will be better placed to make pension decisions.

    I want to clear the mortgage in 10 years; the first 5 years will be fixed with a sub-prime lender, the last 5 years with a normal lender. My credit history will be squeaky clean in 5 years and all the bad history gone. Of course, I always have the option of paying the ERC and remortgaging after a few years, but for now it's all about getting my home and the rest will get planned once I'm in

    I'm conscious with my age and current pension provisions (excluding the DB pension), I won't be in a good place. If I leave my pensions where they are, I can add to them each month.

    I know the amount I want monthly in today's money, it's doing it so I have the equivalent in 24 years.

    The good thing is work list all their pay bands and what it is per year, so each year I can budget knowing what my payrise will be and when it is. I have 3 or 4 payrises between now and the top of my band.

    As it stands when I do move, my savings will be depleted to about £1k, that scares me the most

    I also know how much I can put away when I move into savings, OP and pension. Priority is building up savings pots eg emergency fund, car fund and property repairs; there is no point going all in with a pension and having nothing for car bills or a roof repair and then having to take a loan or put it on my CC and spread the payments.

    The only debt I ever want is a mortgage debt, but I know this isn't a perfect world, but I will do my best never to go down that dark road again
    • MovingForwards
    • By MovingForwards 19th Jan 20, 10:57 AM
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    MovingForwards
    Hi MovingForwards, just want to say good on you! Nice to see someone so ambitious in this current climate!
    Originally posted by jayniee1964
    The current climate doesn't concern me, it's been here for quite a while nothing is going to change immediately, perhaps because I'm older than most FTBs I am just taking it in my stride.

    I need a place to live when I retire and will not be in a rental and at the mercy of a LL.

    The longer I wait the more prices go up, the shorter the mortgage term, the higher the mortgage payment, the harder it will be for me to cut a day at work in the future and other plans.

    My proposed interest rate would make many people flinch. I accidentally didn't change the interest rate, from a normal one to the one I'm looking at, on a mortgage overpayment calculator and gasped at the difference in payment, but it's the price I have to pay for my former life.

    Even though my rate will be high, the payment will be a lot lower than my rental is now; joint tenancy and liability for all the rent if my flatmate screws up

    It will all work out as I want, sooner or later I will be in my own home
    • MovingForwards
    • By MovingForwards 19th Jan 20, 11:21 AM
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    MovingForwards
    Time to update my savings goal:

    I need to have £3944 for my associated fees (AFs) as up until now I have focused on getting a deposit, the AFs have run quietly alongside my MSAs. It's time to split deposit from AFs.

    I do like the steps idea, but need to plan differently to avoid confusion when reading my diary! Thinking letters of the alphabet would be the way forward, therefore I have to reach the letter 'U' as that will give me a spare few quid.

    So far I have £1866 towards the AFs, and am on the letter 'R', this is a short, fast race to reach the top of getting £2058 together and have planned £700pm for 3 months, the extra money will then kickstart my home repairs / maintenance budget.

    The extra £50+ I normally tuck away will go to my car fund pot and emergency fund savings; I'm not going to be recording them here at this stage as that's something for me to monitor privately for now.

    Until this diary has served its purpose and I have keys in my hand, it is purely a place for me to keep on track with buying a home
    • MovingForwards
    • By MovingForwards 22nd Jan 20, 8:01 AM
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    MovingForwards
    Midweek update.

    For 17 months I've lived in this rental, it's a living hell with the a few of the neighbours in the block, yelling, screaming, partying, drugs and I can't take much more, I'm exhausted. It's got to the point where I'm crying every night when it's time to go to bed and I'm like a zombie all day, due to lack of sleep. Had in been in my previous career I would be able to do my job with my eyes closed, now I'm still learning, getting more tasks added and thankfully I have an understanding boss. (Neighbours won't listen and deny it's them)

    I have a calendar at work and I'm crossing the days off til my probation can officially be ended and I get that letter the lender wants.

    Haven't got round to reading the AVC guide from work, but am noting some of the threads about savings / pension platform companies (vanguard, Hargreaves, cavandish etc), as you will have gathered I like doing research before jumping in.

    So far I have increased my S&S ISA to £10 pm, I cut it down to £5 pm due to saving the deposit. My plan is to review this again later in the year. This is a pot I dont want to dip into again, it's the one that helped kickstart clearing my CCJ.

    I'm going to be buying a PB payday. Ideally I would like to buy one each month, but I'm reviewing this on a month by month basis. This is my pension cash pot as I've no intention of cashing it in before I hit retirement; I'm hoping to be working 2 days a week by the time I'm 60, give what's left of my body a chance to get me through my golden years.

    I've earmarked my other two current accounts; car related and property repairs and am putting a little bit in each month.

    My cash ISA will be converted into external property repair fund when it's no longer required as a MSA pot.

    I've a regular saver, that one will be converted to my emergency fund when it's no longer required as a MSA pot.

    Payday in 6 days and I have just under £25.

    I've really nailed this budgeting and no spend thing
    • savingwannabe
    • By savingwannabe 22nd Jan 20, 7:02 PM
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    savingwannabe
    OMG your financial news sounds great. Good, now tell me how you stick to the NSDs as I made a pig's ar*e of myself and bought a flipping handback I didn't need.

    How do you stop clicking on social media and fleabay?

    I am so sorry about your neighbours. It sounds awful in a few months this will all be over as you will have escaped.
    Trying to be a frugal minimalist. 15/31 NSDs. Saving £2 in money boxes.
    • savingholmes
    • By savingholmes 24th Jan 20, 11:09 PM
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    savingholmes
    I'm so sorry about your neighbours and can see why you are so desperate to move. At least you know you are taking all the steps you reasonably can.
    During 2020: Target 1) £25,121 to be repaid in 2020 (0%) Now down to £24,703 Target 2) repay £1450 off (OP £102.51) mortgage now 144872 @1.7% Target 3) Set up SIPPs Target 4) Declutter 52 bags - now done 4/52
    • MovingForwards
    • By MovingForwards 25th Jan 20, 8:49 AM
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    MovingForwards
    OMG your financial news sounds great. Good, now tell me how you stick to the NSDs as I made a pig's ar*e of myself and bought a flipping handback I didn't need.

    How do you stop clicking on social media and fleabay?

    I am so sorry about your neighbours. It sounds awful in a few months this will all be over as you will have escaped.
    Originally posted by savingwannabe
    It's just by sheer determination the NSDs (well and the lack of mobility means I can't nip anywhere without my car, everything has to be carefully planned and timings worked out).

    Everyday I look at my savings spreadsheet and see what I have and how much I need to save, whilst £2100 doesn't sound a lot and on paper it isn't, it actually does take a while to save.

    I even have a breakdown of my planned savings for payday, sometimes that increases, sometimes it decreases, depending on if I have purchased something eg eBay buy now pay 14 days later.

    Everyday I check my income / outgoings spreadsheet and see what I have left for the month and have budgeted the following month. See what wiggle room I have given myself.

    Don't get me wrong, I'm on a few local selling sites, I'm on eBay looking, scouring online antique shops etc, but it's for ideas. I know I must save and can buy what I need (want) when I move and have saved for it.

    I watch items on eBay that take my interest, gives me time to think whether I really want it, out of about 10 things this month I have purchased a set of art deco red glass pudding dishes with a clear glass stem and base (£6 incl p&p) as I would have kicked myself if I lost out on them.

    I've had 80p in my purse for a while and could have spent it on cake or bread, but I haven't, it's sat in my purse.

    My budget has been worked out for when I move, allowing a fun fund for coffee, meal out, getting my hair cut more than once a year etc, but still saving into different pots for big expenses
    • MovingForwards
    • By MovingForwards 25th Jan 20, 8:52 AM
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    MovingForwards
    I'm so sorry about your neighbours and can see why you are so desperate to move. At least you know you are taking all the steps you reasonably can.
    Originally posted by savingholmes
    I am absolutely so desperate to move, I've done everything I can and now I'm counting down the days til I'm gone, it seems like a lifetime and now I'm counting and the days seem to be 10x longer
    • MovingForwards
    • By MovingForwards 26th Jan 20, 1:28 PM
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    MovingForwards
    Weekend update:

    Took a slow stroll to the post office yesterday, needed to get a letter sent out.

    When I got home I read through the AVC guide from work, looked into a SIPP and also had a look to see if there is a FA discount perk through work.
    There is and I get a free initial consultation with him, followed by 10% discount. That's something I will look into later this year.

    I'm more interested in a SIPP as I can do a drawdown on my money, rather than have to buy an annuity.

    I've looked into my S&S ISA and have added £2.50 to two different pots within it and another £2.50 to my normal pot. Will keep adding a little bit to my two new pots and see how they go.

    Ideally, I would have a mix of low, medium and high risk pots. But, I've a little while to carry on my research!

    Moved £5 to my AFs, so I only need to get £2052 together now.

    Not sure if I said, but I've picked out my sofa and arm chair, both within my furniture budget with money left over.

    I'm still trying to find the coffee table I spotted somewhere, got a while to find it again and save for it!

    Hopefully, over the next few months I will get hold of some paint charts and see what's around. I've also been watching a load of the old property programs (property ladder, changing rooms etc). I'm tired of rental magnolia!!

    Just over £12 left in my account and payday is in 2 days; I empty my current account into savings the day before payday, usually leaving a quid or two in it.

    Getting there, it's taken me over 3 years to get where I am, but I've nearly done it!
    • savingwannabe
    • By savingwannabe 26th Jan 20, 4:39 PM
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    savingwannabe
    Well done on saving and your discipline. We both love art deco.
    Trying to be a frugal minimalist. 15/31 NSDs. Saving £2 in money boxes.
    • MovingForwards
    • By MovingForwards 26th Jan 20, 5:20 PM
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    MovingForwards
    Well done on saving and your discipline. We both love art deco.
    Originally posted by savingwannabe
    Thank you

    I'm determined to get at least one bit of art deco furniture! I deserve an indulgence after being so good (although, when it comes to parting with cold, hard cash I may run a mile )

    Must get to BHF this month and see if they have anything
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