making hay while the sun shines (by freshcotton)

freshcotton · 29 November 2015 at 9:37AM

making hay while the sun shines...

I think this is the best financial advice you can get (and probably obvious to most on this forum), but sometimes I like to remind myself as to why I am trying to be financially sensible.

Iv got to say, at the minute, things are good for us, two lads, early to mid 30s decent jobs and no debts. So financially, we can comfortably pay our bills, overpay on our mortgage and save a little too, but of course, a lot can (and will) change.

There is no risk of us having children so that's one major life change I don't need to worry about! However I think our income could drop in the next few years, and I could even be at risk of redundancy at some point next year.

Our cars (for example) are middle aged and cant keep going for years to come so they will need repurchasing eventually as well as other general house maintenance.

Right now, my focus is paying the mortgage off and building the savings pot. We don't have any investments because they scare me, but I know that's foolish so will learn more about them on the way. But for now, I just want the mortgage to go away.

So this is my diary, to update my progress and to remind me to continue making hay for now, to prevent insecurity during any cold and cloudy days ahead.

I will update further financial info later on, but thanks for reading.

bexster1975 · 29 November 2015 at 10:26AM

Hi freshcotton

You say make hay while the sun shines is likely common sense. I must say I agree, but people generally don't seem to want to look at things that way. I find that really strange. I'm a few years older than you. Well paid job, but one that has made me seriously ill in the past two years. Spent almost a year not working due to ill health and have subsequently been diagnosed with a permanent disability. Great news is my treatment is working, but I have temporarily returned to the job that caused the problems. Because I have made hay when the sun shone my mortgage is now covered by savings. I have a few thousand more to save over the next few months and I will have my emergency fund sorted so I can choose how much. I work. It is very sensible to make yourself financially as comfortable as you can, and mo imise essential outgoings do that if troubles arrive you are best placed to cope with them. You are in the right place, many people on here want their mortgage gone to offer them freedom.

Best of luck on your journey

Bexster

freshcotton · 29 November 2015 at 11:31AM

Hi Bexster - I hope you continue your journey of good health and thank you for posting as your story is the exact point I was trying to make.

The more hay I make now the more control I have of my own life.

freshcotton · 29 November 2015 at 6:24PM

Figures are as follows -

Mortgage balance = £118,000
Savings = £8,000

We can currently OP by 10% each year, so in 2016 we are aiming for £1000 each month - this may not be possible but that's the plan at this stage.

The savings are sat in a 1.5% ISA - may leave that till April and split some to put into an investment product to try and get a better rate.

In terms of fixed outgoing - its all the usual stuff, no luxuries apart from an £18 gym membership and sky. all utilities are pretty much as low as possible.

partners current income is approx. £2,300
my basic is £1800 however this doesn't include overtime which is mandatory and can vary each month depending on how many call outs I do.

partner has been paid this month and this has covered most of the direct debits including an OP (1k) as well as the majority of xmas presents.

I usually get paid on the 6th of each month and will distribute funds once I know how much i'm getting.

This diary makes me feel so organised.

Floxxie · 29 November 2015 at 8:16PM

Hi freshcotton,

Re your savings in the ISA, rather than look at 'investments', why not take a look at the various current accounts offering higher rates, for example TSB at 5% up to £2000? There are a number of options and the information can be found on the savings board here: http://http://www.moneysavingexpert.com/savings/which-saving-account?_ga=1.101045636.449444160.1448556979

bexster1975 · 29 November 2015 at 8:51PM

Must agree with Floxxie, ISAs may not be your best bet.

I have a regular saver with FD (6% on up to £3600 a year), a Santander 123 acct ( there are a couple of conditions on this one ) but 3% up to £20000 when you have more than £1000 in the account plus cashback on bills. TSB acct also a good one for small amounts of cash.

May be time to dust off that old 1.5% ISA

you sound very organised, must be the diary;)

Bexster

freshcotton · 29 November 2015 at 9:07PM

Thanks guys, how could I have missed such good rates? I think it's because I'm on auto pilot thinking isa = best.

Looking into TSB this very minute

freshcotton · 1 December 2015 at 1:33PM

Mortgage balance is £116,982
OP = £1000
(Interest = £246.71)

Will add to savings once iv been paid next week.

Petal88 · 1 December 2015 at 2:37PM

Hi freshcotton! Just wanted to say welcome and hello - will definitely be following your diary with interest

freshcotton · 7 December 2015 at 9:59AM

Pay day for me ...

I received an unusually good pay this month (because of the amount of overtime I did in October) of £2,490. My partner also received a back payment for his pay rise so we have had a lot coming in.

this is what we have done with it

OP mortgage by £1,000 (as confirmed above)
Saved - £1,750.00 (and with the £250 we had spare from last month means that I have reached my goal of £10,000)

Obviously we have had xmas to pay for, partners car insurance is due at the end of the month and we have enjoyed a few days out, which means we will be ready for a super frugal new year!

We have fallen short of our OP cap this year by just under £2k and although I know it would be sensible to throw some more to the mortgage, I feel more secure having cash at the ready just in case. As I have mentioned above, next year could be turbulent with my job and I want to be prepared financially so I can focus positively on finding new employment or retraining etc.

Hope everyone is ok

A_Frayed_Knot · 7 December 2015 at 11:19AM

Hi :wave:

and welcome, just read your diary, and you seem to have your sensible head on:)

Your pay this month has given you such a great star:Dt, ready for the trials of the coming new year, but sounds like you will both manage just fine. Lots of help and tips on here, have you changed your isa savings yet? (Just a gentle reminder;)

One comment I thought I ought to mention, was your o/p figure for next year, as your mortgage is £118,000 and you were looking to o/p £1,000 each month, just be careful if there is a limit on just how much you can o/p without penalties - mine is 10% each year of the total mortgage at the start of the year, but I do know some lenders have different o/p rules.

making hay while the sun shines (by freshcotton)

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