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  • FIRST POST
    • SuperSecretSquirrel
    • By SuperSecretSquirrel 8th Sep 12, 12:07 PM
    • 706Posts
    • 3,145Thanks
    SuperSecretSquirrel
    Onwards to freedom!
    • #1
    • 8th Sep 12, 12:07 PM
    Onwards to freedom! 8th Sep 12 at 12:07 PM
    Hello and welcome to my MFW diary. Not sure how often I'll update as I'm going down the boring 'increase monthly mortgage direct debit' route, not the more interesting to read 'random repayment as and when a bit of extra money is made' route. Still, no harm in starting a diary here, even if it's just for me to look back on in a few years time!

    It seems like a good idea to start with a bit of background, so here goes...

    We bought our house in July 2010 with an 87k repayment mortgage, fixed for 10 years at 5.29%. Nearly two years of £525pm standard repayments allowed us to rebuild our savings, but after 20 monthly payments (over 10k paid out) the mortgage balance had only dropped around 2.5k thanks to all the interest being paid...

    We decided to make a small start on overpaying - small overpayments early on have quite an impact over the long term so why not start small and ramp up later? March 2012 we made our first regular overpayment, £50pm. Amazingly, if we were to keep up with this £50pm over the life of the mortgage we'd be mortgage free nearly four years early (Nov 2031) and save ourselves a tidy bit of interest. Not bad rewards for just £50 a month!

    A few days ago I decided to step things up a notch. From next month the regular overpayments will increase to £250pm, £200 less will find its way into my long term savings (paying 2.8%, minus basic rate tax), £200 more will find its way to the mortgage provider. Makes a lot of sense looking at the interest rates! I'll keep on saving in a normal savings account though and won't be putting every penny into the mortgage - I'm used to seeing my savings grow monthly, and like to try to be prepared for any eventuality, so I'll keep on squirelling away a chunk of my income in savings each month. I know this isn't the most efficient option in terms of reducing interest payments, but it's a balance that keeps me sane, if there's any major disasters the savings are there to fall back on, that kind of peace of mind is well worth a few pounds! Anyway, here's where the numbers get really interesting - by overpaying £250pm for the life of the mortgage we'd be mortgage free nearly eleven years early (Oct 2024). Wow!

    Seeing the massive savings I started looking into this stuff in more detail. We're allowed to overpay up to 10% of the mortgage balance each year without penalty. I don't want to increase overpayments over £250pm right now, but maybe after another year or so of growing my savings I'll step up the overpayments to £500pm. Two years later the overpayment would need to drop to £450pm (to avoid penalty), year after that drop to £400, and the following year drop to £350, and the years after that drop to £250 at which level the op's would have to remain until the end of the fixed period (August 2020). If we were to follow this plan, at the end of the fixed period our mortgage balance would be around about 20k which we could pay off with a lump sum from savings. Mortgage free fifteen years early, at age 36, sounds awesome, and what's incredible is that it also sounds very realistic.

    At the moment overpaying is my project. OH and I have our own accounts that our wages are paid into, and a joint account that we feed monthly to pay the bills. As I earn a little more I also do the grocery shopping, pay a few extra bills, and overpay the mortgage. Beyond feeding the joint account OH's income is none of my business, it can be spent on whatever OH likes, same goes for my income. This works well for us - if I want to splash out on a new computer game or a night out or whatever I can do so without needing to consult OH, and if OH wants to splash out on a night out or clothes or whatever no need to consult me. We're both debt averse and savers by nature, so as long as we spend less than what's coming in and all the bills get paid all is well. I'm hoping that seeing the mortgage balance reduce might convince OH to get involved in overpaying the mortgage (or at least split savings into two pots, one 'spendable' short term pot for holidays and home improvements etc, and a long term one earmarked for paying down a lump sum on the mortagage), but there'll be no pressure, if OH joins in that would be excellent, but if not that's ok.

    Finally, I know life doesn't always go smoothly - anything could happen in the next 8 years, babies, redundancy, armageddon, "the best made plans of mice and men, often go awry"... But if things don't go to plan, nevermind, we'll have made a great start on the mortgage regardless, any overpayments we make early on will benefit us later on, so we may as well give it a shot while circumstances allow It's nice to remember that circumstances can go up as well as down too - maybe there will be payrises and good fortune along the way that make achieveing the target easier, who knows!
    __________

    January 2014 Update:

    Things have changed quite a lot since I first started this diary... The new aim is to hit the MFiT3 target of a 40k mortgage balance by end 2015, and to have 40k in savings by that time too, making us mortgage neutral 20 years early! Anything can happen, but I think it's time to aim high!
    __________

    March 2015 Update:

    We did it! We are mortgage neutral (savings balance higher than outstanding mortgage) and are locked in to achieve the MFiT3 stretch goal of mortgage below 40k by the end of the year I'm going to keep this diary going, the aim is total financial independence now!
    __________

    January 2018 Update:

    Paid the mortgage off in full today (12/01/2018)
    Last edited by SuperSecretSquirrel; 12-01-2018 at 9:42 PM. Reason: We did it! :D

    Mtg [2013 £64k|2014 £51k|2015 £38k|2016 £26k|2017 14k] Zero!
    MN [2013-£25k|2014-£2k|2015+£16k|2016+£34k|2017+£52k] +£61,918.30(MFiT4:+60k)
    NW [2013 £126k|2014 £156k|2015 £190k|2016 £228k|2017 £269k] £291,327.81 (2020:300k)
    FI [2013 -1.2%|2014 2.8%|2015 6.9%|2016 13%|2017 18%] 33.2% (exc SP)
Page 29
    • Karmacat
    • By Karmacat 3rd Mar 18, 10:07 AM
    • 29,866 Posts
    • 172,565 Thanks
    Karmacat
    Very balanced attitude there, SSS, about the "losses" and the data tracking. I haven't been data tracking recently - it doesn't give me any extra information I can actually use, I *know* what I need to do to balance the portfolio, thats good enough. Might go back to it in after we sell my mum's house, as the whole balance issue will then need to be looked at again.
    Downsized and paid off mortgage 2010
    Retired August 2016
    Paid off French mortgage September 2018
    • greent
    • By greent 4th Mar 18, 8:56 AM
    • 7,435 Posts
    • 75,393 Thanks
    greent
    How do you track your car's/ cars' (?) value? - do you just look it up on a site each month?
    I am the master of my fate; I am the captain of my soul
    Repaid mtge early (orig 11/25) 01/09 £124616 01/10 £104927 01/11 £89873 01/12 £76317 01/13 £52546 01/14 £35356 01/15 £12133 07/15 £NIL
    BTL Mtge 12/16 £69786. 2018 OPs (#18) £6484.71/£7500
    Net sales 2018 £713.44/£1000 PAYDOX18 (#15) Done £18918.90
    • SuperSecretSquirrel
    • By SuperSecretSquirrel 4th Mar 18, 9:02 PM
    • 706 Posts
    • 3,145 Thanks
    SuperSecretSquirrel
    Thanks KC

    Hi greent, I just get an online estimate of the car values each month. It's not an exact science, but the estimates feel about right to me

    Mtg [2013 £64k|2014 £51k|2015 £38k|2016 £26k|2017 14k] Zero!
    MN [2013-£25k|2014-£2k|2015+£16k|2016+£34k|2017+£52k] +£61,918.30(MFiT4:+60k)
    NW [2013 £126k|2014 £156k|2015 £190k|2016 £228k|2017 £269k] £291,327.81 (2020:300k)
    FI [2013 -1.2%|2014 2.8%|2015 6.9%|2016 13%|2017 18%] 33.2% (exc SP)
    • crv1963
    • By crv1963 5th Mar 18, 3:57 AM
    • 481 Posts
    • 1,054 Thanks
    crv1963
    Hi greent and SSS,


    I have written off the value of our cars when calculating net worth, my logic being as a depreciating item that will eventually need replacing if I count them as money written off then it's one less hassle to check up on or write on my asset sheet.


    Of course if they were classic cars or supercars I would include them!


    CRV
    CRV1963- Light bulb moment Sept 15- Planning the great escape- aka retirement!
    • SuperSecretSquirrel
    • By SuperSecretSquirrel 5th Mar 18, 8:39 AM
    • 706 Posts
    • 3,145 Thanks
    SuperSecretSquirrel
    I had considered doing the same crv, but 14k of fairly easily sold assets is a lot to ignore I include the cars in the total net worth figure, but not in the liquid assets or FI figures. Again, my inconsistent nature is showing - I don't include the value of bikes, furniture, jewellery, electronics, etc in any of the figures. The total value of that stuff, which is also fairly easily sold, amounts to a not so insignificant amount!

    Credit club update this morning... Score has dropped by 96 points, down to 646. The only recent changes I can think of are the mortgage account being closed, and possibly a credit check when switching energy supplier. Maybe ed was right and the numbers really are randomly selected

    Mtg [2013 £64k|2014 £51k|2015 £38k|2016 £26k|2017 14k] Zero!
    MN [2013-£25k|2014-£2k|2015+£16k|2016+£34k|2017+£52k] +£61,918.30(MFiT4:+60k)
    NW [2013 £126k|2014 £156k|2015 £190k|2016 £228k|2017 £269k] £291,327.81 (2020:300k)
    FI [2013 -1.2%|2014 2.8%|2015 6.9%|2016 13%|2017 18%] 33.2% (exc SP)
    • edinburgher
    • By edinburgher 5th Mar 18, 9:26 AM
    • 11,245 Posts
    • 60,350 Thanks
    edinburgher
    Definitely random - sitting pretty at an entirely undeserved 890!
    • SuperSecretSquirrel
    • By SuperSecretSquirrel 7th Mar 18, 9:10 AM
    • 706 Posts
    • 3,145 Thanks
    SuperSecretSquirrel
    Next job will be to convince OH that she should increase her pension contributions as she's currently paying in the very bare minimum, but this is very much a slowly slowly catchy monkey kind of thing
    Originally posted by SuperSecretSquirrel
    That was three years ago... Slowly slowly indeed!

    Now that the mortgage is done and dusted, and cashflow has improved, OH is focusing on savings. As a rather nice surprise she announced last night that she will be splitting the funds between standard savings accounts and her pension. Little to no hounding from me involved

    Gone are the days of a frankly pitiful 2% (+3% employer contribution), welcome to the far more respectable world of 10%+3%

    Mtg [2013 £64k|2014 £51k|2015 £38k|2016 £26k|2017 14k] Zero!
    MN [2013-£25k|2014-£2k|2015+£16k|2016+£34k|2017+£52k] +£61,918.30(MFiT4:+60k)
    NW [2013 £126k|2014 £156k|2015 £190k|2016 £228k|2017 £269k] £291,327.81 (2020:300k)
    FI [2013 -1.2%|2014 2.8%|2015 6.9%|2016 13%|2017 18%] 33.2% (exc SP)
    • edinburgher
    • By edinburgher 7th Mar 18, 9:20 AM
    • 11,245 Posts
    • 60,350 Thanks
    edinburgher
    Is OH's pension salary sacrifice? If not, did she review the costs of her employer's scheme vs. a cheap SIPP?
    • SuperSecretSquirrel
    • By SuperSecretSquirrel 8th Mar 18, 9:02 AM
    • 706 Posts
    • 3,145 Thanks
    SuperSecretSquirrel
    Hi ed, yep, salary sacrifice for extra NI saving goodness

    Mtg [2013 £64k|2014 £51k|2015 £38k|2016 £26k|2017 14k] Zero!
    MN [2013-£25k|2014-£2k|2015+£16k|2016+£34k|2017+£52k] +£61,918.30(MFiT4:+60k)
    NW [2013 £126k|2014 £156k|2015 £190k|2016 £228k|2017 £269k] £291,327.81 (2020:300k)
    FI [2013 -1.2%|2014 2.8%|2015 6.9%|2016 13%|2017 18%] 33.2% (exc SP)
    • SuperSecretSquirrel
    • By SuperSecretSquirrel 1st Apr 18, 10:39 AM
    • 706 Posts
    • 3,145 Thanks
    SuperSecretSquirrel
    Net Worth Update - 1st April 2018
    Code:
                   CURRENTVALUE      +/-MTH       +/-QTR       +/-YOY
    House Value:    £125,000.00       £0.00        £0.00        £0.00
    Pensions:        £76,156.55  -£2,364.01   -£2,302.11    £9,232.77
    S&S:             £28,350.16     £292.43    £1,742.89   £12,045.77
    Cash:            £25,466.10     £470.30  -£14,110.26  -£19,203.40
    Car Value:       £13,985.00    -£100.00     -£730.00   -£2,180.00
    Mortgage:             £0.00       £0.00   £14,140.28   £20,907.54
    Student Loan:      -£115.60      £66.51      £199.35    £1,879.94
    Due to HMRC:       -£244.47     -£20.43      £268.76      £244.13
    Total:          £268,597.74  -£1,655.20     -£791.09   £22,926.75
    89.5% of the way to 300k net worth (2020 challenge), 0.0% mortgage ltv, £53,571.79 liquid assets, 28.8% financially independent.
    __________________________________________________

    Another hit to equities this month, ISA and pensions have taken a fair beating!

    C'est la vie, this is what we signed up for I have to admit to feeling a little disappointed when I first realised our net worth is now lower than it was at the start of the year, even though we've been doing everything right during that time, but I soon snapped out of it when I realised that we hadn't really done anything to "deserve" the ridiculous increases last year either - two sides of the same coin really. The uncertainty does make setting realistic targets far more difficult than when dealing with simple cash values though!

    Yesterday marked the last day of spend tracking - we're both glad that's over and done with!

    Lots of useful data gathered, every penny spent as a household over the last year (excluding mortgage and childcare) amounted to a grand total of £17,403.00. Bills (council tax, gas, electricity, water, phone line and internet, home insurance, life assurance, tv license and paid tv, mobiles, and all car costs) averaged £530.08 per month. Weekly shopping (food, toiletries, cleaning products, nappies, etc) averaged £336.85 per month. Everything else amounted to an average of £583.32 per month. I captured the data at a fairly granular level (lots of categories, daily amounts) so I'm sure I'll have what I perversely consider "fun" carving it up in various ways over the coming days and weeks and months

    Finally, it's nearly time to withdraw a chunk of cash from PB's to pay off my slow stooze spending card. The 0% promotional period ends in a couple of weeks, so once this month's draw has taken place, I'll take care of it. I'm faced with the choice of simply paying off the balance and leaving the account open - leaving me with a 53.1k total credit limit at 64% utilisation, or paying it off and closing the account - leaving me with a 41.1k total credit limit at 83% utilisation. Not sure which would be best, but I'm pretty sure I'll go for the former in the first instance as it won't involve a phone call, and I imagine it to be far easier to close the account later rather than re-open it later.

    Happy Easter everyone, try not to eat TOO much chocolate

    Mtg [2013 £64k|2014 £51k|2015 £38k|2016 £26k|2017 14k] Zero!
    MN [2013-£25k|2014-£2k|2015+£16k|2016+£34k|2017+£52k] +£61,918.30(MFiT4:+60k)
    NW [2013 £126k|2014 £156k|2015 £190k|2016 £228k|2017 £269k] £291,327.81 (2020:300k)
    FI [2013 -1.2%|2014 2.8%|2015 6.9%|2016 13%|2017 18%] 33.2% (exc SP)
    • Moneyfordreams
    • By Moneyfordreams 1st Apr 18, 6:34 PM
    • 1,112 Posts
    • 5,524 Thanks
    Moneyfordreams
    fab read to catch up SSS , congratulations
    Mortgage restart June 2018 £119950
    zero personal cc
    6x166 for sofas ending November 2018
    £2500 on DD1s car cc
    • shangaijimmy
    • By shangaijimmy 1st Apr 18, 7:51 PM
    • 2,782 Posts
    • 13,926 Thanks
    shangaijimmy
    Just played catch up with your diary and its definitely got me thinking about our net worth calcs, and furthermore our retirement plans. Although we pay into our pensions and i think we're in decent shape, we haven't actually got a plan. That in itself is very unlike me, so i think i need to spend some time formulating. A Quick questions if thats ok? How do you post a table into your diary (it'd make my accounts posting much easier), and can you given me a guide.
    MFW: Turning June 2036 into March 2025... 41//120 Payments Challenge, Diary Reduction £44,136.86
    Aug 2009: £163,051 // Current: £91,863.15 // Avg Daily Interest £4.13
    MFiT-T4 #8 - 80.74% of £41,000
    • SuperSecretSquirrel
    • By SuperSecretSquirrel 3rd Apr 18, 8:23 PM
    • 706 Posts
    • 3,145 Thanks
    SuperSecretSquirrel
    Thanks MFD and SJ

    The table can be a bit fiddly Jimmy, quote my post above to see the code used to build it. I suggest creating a table in notepad, using spaces not tabs to line up the columns, then pasting into a reply on here. Set the font to courier new, and wrap with "code" tags, and it should format correctly. You can preview the post to check.

    I've created a spreadsheet with a load of formulas in that actually builds the summary section of each net worth update post for me, but to start off I did it manually in notepad

    Mtg [2013 £64k|2014 £51k|2015 £38k|2016 £26k|2017 14k] Zero!
    MN [2013-£25k|2014-£2k|2015+£16k|2016+£34k|2017+£52k] +£61,918.30(MFiT4:+60k)
    NW [2013 £126k|2014 £156k|2015 £190k|2016 £228k|2017 £269k] £291,327.81 (2020:300k)
    FI [2013 -1.2%|2014 2.8%|2015 6.9%|2016 13%|2017 18%] 33.2% (exc SP)
    • Freeedom
    • By Freeedom 5th Apr 18, 8:27 PM
    • 1 Posts
    • 2 Thanks
    Freeedom
    Loving this thread, so subscribing and going to read from start.. I'm at a similar point now, mortgage just paid off this month, after years of OPs and lurking on this site! Now on to getting the pension pot boosted! Woo!
    • SuperSecretSquirrel
    • By SuperSecretSquirrel 6th Apr 18, 8:35 AM
    • 706 Posts
    • 3,145 Thanks
    SuperSecretSquirrel
    Loving this thread, so subscribing and going to read from start.. I'm at a similar point now, mortgage just paid off this month, after years of OPs and lurking on this site! Now on to getting the pension pot boosted! Woo!
    Originally posted by Freeedom
    Nice! Congrats on the mortgage payoff, and welcome to MSE!

    Mtg [2013 £64k|2014 £51k|2015 £38k|2016 £26k|2017 14k] Zero!
    MN [2013-£25k|2014-£2k|2015+£16k|2016+£34k|2017+£52k] +£61,918.30(MFiT4:+60k)
    NW [2013 £126k|2014 £156k|2015 £190k|2016 £228k|2017 £269k] £291,327.81 (2020:300k)
    FI [2013 -1.2%|2014 2.8%|2015 6.9%|2016 13%|2017 18%] 33.2% (exc SP)
    • turtlemoose
    • By turtlemoose 7th Apr 18, 9:15 PM
    • 1,527 Posts
    • 4,446 Thanks
    turtlemoose
    oh my, the idea of a spreadsheet detailing every spend for a year gets me VERY excited

    I think I'm going to pinch that! I'd love to read your analysis, if you decide to share.
    • SuperSecretSquirrel
    • By SuperSecretSquirrel 10th Apr 18, 6:57 AM
    • 706 Posts
    • 3,145 Thanks
    SuperSecretSquirrel
    Thanks TM Try not to mention your excitement outside of MSE, no doubt that kind of talk in the real world could get someone sectioned

    I've not spent any time carving up the data yet, it has been a very busy week! I'll get round to it at some point, and no doubt I'll share on here if I unearth anything worth posting.

    £25 pb win this month, now I'm just waiting for the 6k I've cashed in to arrive and I can settle the slow stooze card.

    Credit score holding steady at 646... Seems they forgot to reset the random number generator this month

    Mtg [2013 £64k|2014 £51k|2015 £38k|2016 £26k|2017 14k] Zero!
    MN [2013-£25k|2014-£2k|2015+£16k|2016+£34k|2017+£52k] +£61,918.30(MFiT4:+60k)
    NW [2013 £126k|2014 £156k|2015 £190k|2016 £228k|2017 £269k] £291,327.81 (2020:300k)
    FI [2013 -1.2%|2014 2.8%|2015 6.9%|2016 13%|2017 18%] 33.2% (exc SP)
    • shangaijimmy
    • By shangaijimmy 10th Apr 18, 7:20 AM
    • 2,782 Posts
    • 13,926 Thanks
    shangaijimmy
    You've done well overall with those PB wins.
    MFW: Turning June 2036 into March 2025... 41//120 Payments Challenge, Diary Reduction £44,136.86
    Aug 2009: £163,051 // Current: £91,863.15 // Avg Daily Interest £4.13
    MFiT-T4 #8 - 80.74% of £41,000
    • SuperSecretSquirrel
    • By SuperSecretSquirrel 10th Apr 18, 8:09 AM
    • 706 Posts
    • 3,145 Thanks
    SuperSecretSquirrel
    Hi Jimmy It's certainly fun looking forward to the draw, and the thought of there being a miniscule chance (it's still a chance!) of winning a million is quite exciting, but it hasn't been particularly lucrative so far. The average balance is 46k (6 months at 50k and 3 months at 38k), and in nine months I've won £350. Assuming the rest of the year pans out fairly similarly, I'm looking at a 1% annual return.

    I could possibly squeeze more out of the money by opening an obscene number of current and regular saver accounts and juggling funds between them (and ensuring the funds required are accessible when the 0% periods end), but I've already got enough of that going on in my life At the end of the day the PBs are a bit of fun mostly funded by free 0% stooze money, so I'm very happy to keep it simple and take the 1%! I'd be even happier to win a million, that would be insta-retirement right there, but 1% and a daydream or two is fine by me
    Last edited by SuperSecretSquirrel; 10-04-2018 at 8:11 AM.

    Mtg [2013 £64k|2014 £51k|2015 £38k|2016 £26k|2017 14k] Zero!
    MN [2013-£25k|2014-£2k|2015+£16k|2016+£34k|2017+£52k] +£61,918.30(MFiT4:+60k)
    NW [2013 £126k|2014 £156k|2015 £190k|2016 £228k|2017 £269k] £291,327.81 (2020:300k)
    FI [2013 -1.2%|2014 2.8%|2015 6.9%|2016 13%|2017 18%] 33.2% (exc SP)
    • edinburgher
    • By edinburgher 10th Apr 18, 8:13 AM
    • 11,245 Posts
    • 60,350 Thanks
    edinburgher
    My credit score also remained static, although I'm planning on crashing it next month

    Because I have a few cards with whatever the HBOS group is called now, I need to try and close down another 1-2 so that I have banks who will actually lend me money at BT time.
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