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  • FIRST POST
    • Floxxie
    • By Floxxie 21st Jun 15, 12:13 PM
    • 2,829Posts
    • 5,283Thanks
    Floxxie
    Four and a half years until the money stops!
    • #1
    • 21st Jun 15, 12:13 PM
    Four and a half years until the money stops! 21st Jun 15 at 12:13 PM
    Ok, so I am back. Perhaps a little too early as the new mortgage doesn't start until the end of July, but there is nothing like being prepared before the challenge starts!

    So a little about me and my situation. Years ago I was on the MFi3 challenge and was on target to complete it when my husband decided he would much rather go off and start a new life.

    Fast forward almost 5 years, and minus the gory details, and the situation is that I have just completed a remortgage on my old house to convert it into a buy to let. New mortgage amount 143,000.

    And I am about to purchase a home in Northern Ireland, with a mortgage of 90,000.

    All clear so far? Anyway now we get to the nitty gritty of finances - well an outline of them anyway at this stage:

    I have just started on the self-employed route (mystery shopping, surveys etc) and claim CTC and WTC. I also receive CB.

    I receive child maintenance.

    I receive rent from the tenanted house.

    I HAVE MORTGAGE DEBTS OF 233000!!!

    Ok so that is the scary stuff out of the way. Now the plan..

    The buy to let property will remain on interest only until I decide to sell it in 5 years or so.

    Child maintenance at its current level stops in 4 1/2 years. In that time I plan to save 20k a year to clear the NI mortgage. The only issue at present is that I do not get 20k, let alone am able to save it, so that is the challenge.

    The mortgage is fixed for two years below 3% so as a non-taxpayer, I shall use various current and savings accounts to make more interest than I am playing. This bit I am a little worried about as I may be tempted to spend any money so I shall reassess this regularly.

    So there it is. A brief background and the challenge
Page 2
    • Floxxie
    • By Floxxie 22nd Sep 15, 10:42 PM
    • 2,829 Posts
    • 5,283 Thanks
    Floxxie
    It took a long time to become a MFW! Finally on the 28th August, I was handed the keys to the new house and with that, I now have a mortgage balance and very little savings

    So the plan is....try and save 1000 a month in cash. This will require serious budgeting and meal planning as well as earning bits and bobs. I have decided that Approach A will be to save the money in an account and then pay off a lump sum after the two year fixed is finished.

    So far I have cancelled the TV licence and Sky. Unfortunately I have gained football subs, rugby subs and swimming lesson fees: but as they are for the children, they are worth it

    We have been without an internet connection for 2 weeks so I'm off to catch up on all the missed posts!
    Mortgage start September 2015 90000 MFiT #06
    • Floxxie
    • By Floxxie 5th Oct 15, 6:16 PM
    • 2,829 Posts
    • 5,283 Thanks
    Floxxie
    Does anybody bother with insurance on their new kitchen appliances? I have signed up for 12 a month for 20 months -I haven't got the paperwork yet, but can't work out whether a couple of hundred of pounds is worth it?

    Still not fully settled: I forgot how long it takes to put together flat packs and how much it costs to buy stuff! Target is to have it completed by Christmas :-)
    Mortgage start September 2015 90000 MFiT #06
    • Floxxie
    • By Floxxie 31st Mar 16, 8:39 PM
    • 2,829 Posts
    • 5,283 Thanks
    Floxxie
    Well almost 6 months later and I thought it was time to update the diary and to tackle the mortgage debt with renewed energy (well as much as I can muster as I come out of winter hibernation!).

    So as from tomorrow, I shall be using my diary to record my efforts to make money. I think that if I have to admit what I have been up to via the diary, then I am more likely to do the 'work'. That is the plan anyway. Unfortunately the means of earning cash are very boring so apologies, but I must remember that a constant approach will bring results, whereas doing nothing will produce nothing

    I have also joined up to the 10 a day challenge on the DFW board as well as hanging around the 'make $10 a day from Neobux' thread.

    Tomorrow I shall detail where I am financially. Perhaps that will scare me enough to get on with listing stuff on the 'bay'
    Mortgage start September 2015 90000 MFiT #06
    • Luckyinlife
    • By Luckyinlife 31st Mar 16, 11:28 PM
    • 1,598 Posts
    • 6,036 Thanks
    Luckyinlife
    Good luck floxxie i look forward to seeing where you are with your finances currently
    Mortgage--- 67700 March 15 65221 April 15 64983 July 15 64780 sept 15 Remortgage 67295 oct 15 66599 Nov 15 65878.73 Dec 15 64834 1st Jan 16 Feb 16 64,511.89 March 16 64,056.40 April 16 62550 May 16 62,396.20 Feb 17 60.800
    Emergency fund 23k
    • Floxxie
    • By Floxxie 31st Mar 16, 11:31 PM
    • 2,829 Posts
    • 5,283 Thanks
    Floxxie
    Good luck floxxie i look forward to seeing where you are with your finances currently
    Originally posted by Luckyinlife
    Thanks Lucky. Not sure I am looking forward to it but will reveal all tomorrow.
    Mortgage start September 2015 90000 MFiT #06
    • Floxxie
    • By Floxxie 1st Apr 16, 5:32 PM
    • 2,829 Posts
    • 5,283 Thanks
    Floxxie
    Ok so here it is. A summary of my finances:

    Assets:
    House 1 130,000
    House 2 (BTL) 220,000
    Pension 1 (DB)125,000
    Pension 2 (PP) 7,802
    Pension 3 (DC) 17,306
    Cash 1,000
    S&S ISA 2,200
    Zopa 950
    Total 504,258

    Debts:
    Mortgage 1 88,113
    Mortgage 2 143,000 (int. only)
    Total 231,113

    Aim is to build up the cash and S&S ISA. I don't pay into any of the pensions. I shall be selling the BTL in 4 years time, but need to have money to cover the mortgage payments while it sells.
    Mortgage start September 2015 90000 MFiT #06
    • Secret Saving Squirrel
    • By Secret Saving Squirrel 1st Apr 16, 5:42 PM
    • 1,983 Posts
    • 36,751 Thanks
    Secret Saving Squirrel
    Good luck on your journey. It is tough going it alone but you will have an immense sense of pride when you achieve your goals!
    Paid off mortgage nine years early in 2013. Now picking and choosing our work to fit in with the rest of our lives!
    Still thrifty though, after all these years
    • Luckyinlife
    • By Luckyinlife 1st Apr 16, 6:01 PM
    • 1,598 Posts
    • 6,036 Thanks
    Luckyinlife
    Some great figures there once youv sold btl you should be sorted :]

    Im doing things on my own as well and you do have to think a lot more about stuff good luck
    Mortgage--- 67700 March 15 65221 April 15 64983 July 15 64780 sept 15 Remortgage 67295 oct 15 66599 Nov 15 65878.73 Dec 15 64834 1st Jan 16 Feb 16 64,511.89 March 16 64,056.40 April 16 62550 May 16 62,396.20 Feb 17 60.800
    Emergency fund 23k
    • Floxxie
    • By Floxxie 1st Apr 16, 7:47 PM
    • 2,829 Posts
    • 5,283 Thanks
    Floxxie
    Thanks Secret and Lucky for your comments, and yes Lucky it does look like I am in a lovely position once the BTL has gone and I must keep that in mind when I have the odd panic over my financial situation.

    Currently I have no plans to stay where I am. My perfect plan is to purchase a piece of land and build a lovely little house that doesn't cost a fortune to run, and to grow and raise any crops, plants and animals that can prosper in the wettest place I have ever known And that little plan will set me back about 250k with no hopes of getting a mortgage.

    My mortgage deal runs out next June and I would like to see how much I can raise from cutting back, eating healthily, earning online selling the rest of our carp by then.

    Perhaps in a few weeks, I shall find out how to do an SOA and show you how I need several miracles and lots of hard work to happen to hit the MFiT target

    Thanks for passing by...
    Mortgage start September 2015 90000 MFiT #06
    • selloptape
    • By selloptape 1st Apr 16, 9:17 PM
    • 457 Posts
    • 1,888 Thanks
    selloptape
    brilliant assets floxxie! I'm sure you will be mortgage free in no time
    GC May 235.52/290 GC April 240.65/300March 322.53/350
    2 Savers Club #59 58
    MFW 2018 #49 600/3,000
    MFiT T4 #21 - reduce mortgage by 20k over 3 years
    • Floxxie
    • By Floxxie 1st Apr 16, 9:28 PM
    • 2,829 Posts
    • 5,283 Thanks
    Floxxie
    Thanks sellotape. I can see that on paper, I look quite ok although with no employable income I shall have to do something major to become mortgage free..or win the lottery (which I don't do!).

    So issues I have to deal with:
    1) no employable income and never likely to be any (children, jobs requiring ridiculous qualifications for entry level, distance)
    2) children: I have three boys, the eldest is the hardest one to deal with as he thinks he should receive a salary as monthly pocket money. He doesn't want to work for the money but will use sob stories, tantrums..you name it. He hasn't been brought up this way but I fear for him and his financial future. He does not agree with me trying to save to pay off the mortgage. I really hope it is a teenager thing although it is very hard dealing with him as a single parent.
    3) not enough time in the day to do everything

    Ok, that's the negative stuff out of the way...
    Mortgage start September 2015 90000 MFiT #06
    • Floxxie
    • By Floxxie 1st May 16, 11:46 AM
    • 2,829 Posts
    • 5,283 Thanks
    Floxxie
    Ok so a month on from my last post and just making a note for myself so I can see where I am, and where I am going to.

    I updated my position for the MFiT group and as at 25 April, I owe 83,369.

    I spent the month noting down how many surveys I did. So I qualified for 78/139 surveys and took out 86 from survey sites.

    I made over 300 from eBay.

    I earnt 225 from mystery shopping.

    I only put 100 towards the mortgage debt
    May Challenge
    So this month, I am aiming to:
    - put every penny I earn from the above towards the mortgage debt and 'find' a 1000 to save in TSB.
    - reduce food costs by meal planning and using up the stuff in the cupboards
    - put everything left onto eBay/Amazon and then send to charity anything not sold
    - set up a blog
    - explore other earning from home ideas
    Mortgage start September 2015 90000 MFiT #06
    • Floxxie
    • By Floxxie 1st Jun 16, 6:53 PM
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    • 5,283 Thanks
    Floxxie
    Another month, another update!

    So I managed to fail on most of my short to do list. I'm keeping the list and changing it to June's to do list

    As of today the outstanding mortgage debt is 82537.81

    This month extra funds will be put into the TSB account.

    Have managed to promise the children a holiday to America next year. Haven't worked out how much it will cost or how to afford it,but will figure that out on the way. Oh and am starting a Masters degree in October - need to find funding but very limited so think it will be a CDL
    Mortgage start September 2015 90000 MFiT #06
    • Floxxie
    • By Floxxie 9th Apr 18, 10:42 AM
    • 2,829 Posts
    • 5,283 Thanks
    Floxxie
    Doesn't time fly by?
    Well, I seem to have been off having a life and completely forgot that I was on a challenge

    Update: I now have two buy to lets, no job and live in a rented house in the countryside. Children are growing up quick. The weather hasn't improved any. The house in England 'sold' but then turned out I had a buyer who didn't want to buy afterall. I have just finished a MSc.

    Tax credits finish in June 2019 when my eldest finished A-levels. I won't be eligible for UC. This is a scary position to be in. Plan is to sell house in England (apparently latest tenants want to buy it but I am not convinced that will happen as they can't even get their rent paid on time!) Lovely agent gave them a contract for two years so can't do anything with it until September 2019.

    Original plan to use house proceeds to pay off house in NI. Now I rent out NI house and don't want to live in it again. Need to consider whether I want to buy another house to live in...that would be a plan for post-sale of house in England.

    So I shall start by looking at the state of my sorry finances and will be back to report
    Mortgage start September 2015 90000 MFiT #06
    • Floxxie
    • By Floxxie 9th Apr 18, 1:35 PM
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    • 5,283 Thanks
    Floxxie
    Assets:
    House 1 135,000
    House 2 (BTL) 220,000
    Pension 1 (DB)125,000
    Pension 2 (PP) 9349
    Pension 3 (DC) 24356
    Cash 1,000
    S&S ISA 0
    Zopa 200
    Total 513,905

    Debts:
    Mortgage 1 81,295 (int. only)
    Mortgage 2 143,000 (int. only)
    CDL 6,100
    Family 5,000
    Total 235,395
    Mortgage start September 2015 90000 MFiT #06
    • Floxxie
    • By Floxxie 9th Apr 18, 1:44 PM
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    • 5,283 Thanks
    Floxxie
    So I have a bit of work to do. My plan is:

    1) Review outgoings. Meal plan.

    2) Reduce the amount owing on house 1 by paying 500 into a S&S ISA and 500 off mortgage on alternate months. Have paid 500 into ISA today.

    3) Let Chip carry on saving for me.

    4) Direct any online earnings to the Career Development Loan.
    Mortgage start September 2015 90000 MFiT #06
    • bexster1975
    • By bexster1975 9th Apr 18, 2:52 PM
    • 1,184 Posts
    • 5,626 Thanks
    bexster1975
    Good luck. I very much enjoy using the Chip app too. Hope your eldest had an attitude transplant re:money


    Bexster
    • Floxxie
    • By Floxxie 9th Apr 18, 5:47 PM
    • 2,829 Posts
    • 5,283 Thanks
    Floxxie
    Thanks Bexter.

    Eldest was still struggling with attitude about money until last month, when he got a job. Suddenly he realises how long it takes to earn 100: may this change of thought continue for the rest of his life
    Mortgage start September 2015 90000 MFiT #06
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