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    • Thriftmaster1973
    • By Thriftmaster1973 13th Aug 17, 5:53 PM
    • 51Posts
    • 133Thanks
    The Journey Begins...
    • #1
    • 13th Aug 17, 5:53 PM
    The Journey Begins... 13th Aug 17 at 5:53 PM
    Hi, got a few things out of the way (weddings, stag do's etc) and now I want to start putting extra down and clear the mortgage.

    I want to do this within 5 years or less (I will be 48 y/o). Here's the state of play....

    52,365 owing, house valued at 150.000.
    9 years remaining (on 2.54% fixed for another 3 years)
    10% of 64,000 can be overpaid without penalties.

    There are no other debts, only this mortgage.

    I am going to be aiming for 333 overpayment every 4 weeks (13 times a year) and add more overpayment as the mortgage decreases.

    House runs on a ultra low cost operating model (implemented by me).

    All variable outgoings (apart from shopping)are monitored weekly. Milage, mpg, actual fuel spend, water usage, gas, electric are all monitored so I can try to become even more efficient.

    I know I sound a skinflint and I know it's not trendy running a house like a business but I need to have a journey to financial freedom.


    1800 take home every 4 weeks so get 13 pay packets a year. 1800 divide by 12 = 150.
    So could call take home pay 1950 on a monthly basis.

    552.90 mortgage
    96.00 council tax (10 month, other 2 month's pay for car tax)
    70.00 gas & electric
    70.00 car fuel
    15.30 broadband and landline
    10.00 mobile
    120.00 food
    175.00 maintainance payment
    12.12 TV licence
    20.00 car insurance
    20.00 building contents insurance
    19.61 life insurance
    39.99 gym / swimming
    32.86 redundancy / sickness cover
    13.00 union membership
    10.00 mot
    25.00 water
    26.43 boiler insurance.

    1328.21 outgoings per month.

    472 left over (4 weekly)
    Last edited by Thriftmaster1973; 17-08-2017 at 2:08 PM. Reason: Mistake
Page 2
    • Thriftmaster1973
    • By Thriftmaster1973 14th Aug 17, 5:37 PM
    • 51 Posts
    • 133 Thanks
    Hi there, yes your right about the boiler cover, I could put that money away and let it build up itself.

    Christmas is a cheap affair for me, I have never gone overboard for the hype of Christmas.

    Yes I have changed onto a water meter, I was paying 57 per month on rates, now on 25. I might actually be overpaying as I use average of 1 Square meter of water a week.
    • Thriftmaster1973
    • By Thriftmaster1973 14th Aug 17, 5:39 PM
    • 51 Posts
    • 133 Thanks
    Also got shut of sky TV over a year ago and bought a freesat plus box, this was second hand but only used once.
    It's paid for itself several times over when you think what I was paying sky.
    • Skinnylatte
    • By Skinnylatte 14th Aug 17, 7:22 PM
    • 1,106 Posts
    • 4,672 Thanks
    I subbed, I think I can learn a thing or 2 from you! Paying extra into a pension is good too, you'll get the 25% tax relief
    Mortgage @ 12/04/2015 136121 116563 14.37% DI 9.13 7.06
    Mortgage free day 06/03/33 04/03/2033
    Emergency/Offset Account
    CC Balance 6100
    700 Paid 74.2%
    1st LBM 02/06/2013 21595 Debt Free Day 27/03/2015

    • Thriftmaster1973
    • By Thriftmaster1973 15th Aug 17, 11:09 PM
    • 51 Posts
    • 133 Thanks
    Today I've been looking at my outgoings a little more. I have a sim only contract with three. It's unlimited mins and text, 4gb internet.
    I never use a lot so have decided to move over to giffgaff on their 7.50 plan.
    This will save 2.50, but will also mean not being tied to a contact which is due to end in early October.
    Is anyone else in favour of not being "commited" to a contact and using pay as you go?
    • Thriftmaster1973
    • By Thriftmaster1973 15th Aug 17, 11:40 PM
    • 51 Posts
    • 133 Thanks
    MPG recording
    Calculating my MPG

    Does anybody else do this?

    Don't worry, you don't need a top notch car with onboard computer, I drive a 300 shed.

    I use this site to calculate my mpg.

    I get up to 43mpg in summer, drops below 40 in winter.
    Last edited by Thriftmaster1973; 15-08-2017 at 11:42 PM.
    • tori.k
    • By tori.k 16th Aug 17, 7:13 AM
    • 3,225 Posts
    • 8,212 Thanks
    Your missing the rest of your costs, insurance, tax, servicing, parts& depreciation this needs to be added together then divided by the number of miles per year. This will give you your true running costs per mile.
    Debit to Credit (stage 1) 3652.34 completed 15/10/16
    Debit to Credit (stage 2) 6299.09 completed 25/06/17
    Mortgage Free (stage 3) 140000/ 2127
    Save 12k in 2018 #76 3000/6000
    • Thriftmaster1973
    • By Thriftmaster1973 16th Aug 17, 12:59 PM
    • 51 Posts
    • 133 Thanks
    All costs are in the SOA

    The car stands me at 300, yes that's not a typo three hundred pounds so ultra low depreciation (you can get 125 - 150 scrap these days).

    Had the car just over 2 years now.

    I do most repairs and all servicing myself - again ultra low costs.

    Tax, insurance, are in the SOA.

    Following bangernomics methods to running a car saves me thousands.
    • Thriftmaster1973
    • By Thriftmaster1973 17th Aug 17, 2:00 PM
    • 51 Posts
    • 133 Thanks
    Overpayment method
    I've just registered with online mortgage with my provider as I will be using this method to overpay.

    It gives me a choice about the overpayment and how it's applied.

    These are

    A. Apply overpayment & recalculate payment and interest.

    B. Keep everything "as is"

    C. Reduce term

    Which method do you lot use.

    Btw, interest appears to be calculated daily.
    • Thriftmaster1973
    • By Thriftmaster1973 17th Aug 17, 2:05 PM
    • 51 Posts
    • 133 Thanks
    I've copied and pasted the choices....

    Pay off my mortgage earlier by reducing my mortgage term
    Reduce my future monthly payments

    Keep my existing payment and term as-is. (At the next natural mortgage payment change, i.e. interest rate change, my payment will be automatically recalculated).
    • Welshlassie
    • By Welshlassie 17th Aug 17, 4:05 PM
    • 1,719 Posts
    • 2,995 Thanks
    If there's no penalty I'd reduce the term.
    • Viking_mfw
    • By Viking_mfw 17th Aug 17, 4:52 PM
    • 123 Posts
    • 538 Thanks
    I'd stick with 'as is' - keeps your payments the same so you're automatically overpaying a little more each time you do it. You can reduce the term when you re fix (or whatever) - or keep it the same for additional flexibility.
    • Thriftmaster1973
    • By Thriftmaster1973 17th Aug 17, 8:41 PM
    • 51 Posts
    • 133 Thanks
    Yes that seems the best bet to me too.
    Many thanks

    Anyway, in the meantime....

    Just been shopping.....

    Aldi 20.54

    Lidl 15.94

    Home Bargains 12.56

    Tesco 2 (petrol for lawnmower)

    Total 51.04

    This was a "heavy shop" by my standards and it's put a dent in my 120 a month shopping budget.

    I was running low on quite a few things so stocks needed replenishing.

    Going for a day out with my 7 year old tomorrow.
    • Thriftmaster1973
    • By Thriftmaster1973 17th Aug 17, 9:11 PM
    • 51 Posts
    • 133 Thanks
    Telling a 7 year old about financial restraints
    Don't know if I've done the right thing here but I decided to inform my 7 year old son that daddy won't have a lot of pennies for the next 4 to 5 years.
    He asked why and I told him I would tell him at a later time when he understands better.
    I have also informed him that in 4 to 5 years daddy would be reaping the rewards of "not having a lot of pennies" for several years.
    Foreign holidays, weekends away and a general feeling of freedom will be our rewards.
    Did I do the right thing here? He doesn't really go without, he's got two loving homes (mine and his mum's) and seems to be a extremely happy child.
    I felt it was fairer to tell him rather than have him wondering about changes.
    • Thriftmaster1973
    • By Thriftmaster1973 19th Aug 17, 1:46 PM
    • 51 Posts
    • 133 Thanks
    Well yesterday ended up going for a day out with my little boy.

    Nothing too fancy - a tram ride to Manchester Airport to watch the planes coming in.

    We had a pub lunch at the Airport pub which is located at the end of the runway. The pub has a nice play area for the kids right next to the runway, he enjoyed himself meaning I did too.

    I must confess to being naughty with the budget on this trip, here goes...

    6.90 for the two of us return tram trip (I'm about 18 miles north of airport)

    23.00 pub lunch & drinks (ouch) - I was the naughty one as I had steak.

    So a days outing which we both enjoyed for 30.

    Yes could have done it cheaper but I'm still on a learning curve!!!
    • porgiegeorgie
    • By porgiegeorgie 19th Aug 17, 3:05 PM
    • 159 Posts
    • 1,142 Thanks
    Hi ThiftMaster, you know your child better than anyone else! From personal experience, of being a child in a household where money was always tight, expensive holidays and lots of fancy things isn't what makes a happy childhood anyway.

    We had plenty of treats on a budget in the form of regular day trips to the seaside (we lived 15 miles from the coast), parks, museums, or just 'down the fields' etc usually with a picnic and the odd ice cream or happy meal as a treat. I think most important though we felt safe and loved. My mum sometimes now laments that she wishes she could have given us more back then and we literally have to tell her to shush because we never felt we missed out, I think I had a great childhood and it wasn't made by money.

    So long as your son's basic needs are being met, he is getting your attention and isn't worried about you then he'll probably remember a day trip on the tram to watch the aeroplanes with you as fondly as he would an expensive holiday abroad

    With regards to keeping track of car MPG, DH and I both have a Google form on our phones for tracking this when we fill up. DH actually fills his in, I must confess I don't really bother anymore....

    We started doing this with our first car and just continued the habit, it isn't really from a MSE perspective though but more for general interest looking at how the price of motoring has increased just since we started driving (petrol was still (just) less than 1/L when I started driving). It will be something to show our future kids (though they may not understand since fuel cars will be a thing of the past by then!).

    Have a good weekend whatever you're up to!
    MFiT-T4 #75: 142,480 to 86,700 by Jan 2019
    Feb16: 142,480. April16: 138,900. July16: 132,242 Oct16: 129,824, July17: 115,841
    • Thriftmaster1973
    • By Thriftmaster1973 19th Aug 17, 4:23 PM
    • 51 Posts
    • 133 Thanks
    Thanks for that Porgie, it's a difficult decision as starting on the MFW journey means sacrifices. I think is an educational journey too, one that teaches you to get the very most from every possible.

    I'm lucky really, I'm free, single and totally independent, live in a nice 4 bed semi detached house which I adore, own a car, work a 4 day week and able to own outright in 4 - 5 years.
    I don't take my situation for granted, I have had some right knocks and bumps along the way and I feel lucky that I have managed to hold everything together through sheer determination and steadfastness.
    • Thriftmaster1973
    • By Thriftmaster1973 19th Aug 17, 8:01 PM
    • 51 Posts
    • 133 Thanks
    The weeks KPI's
    Well, it's Saturday night and as usual, I've took my KPI readings just after 7. Achieved excellent results this week in all areas.

    For this week...

    0.77 square meter water used - budget is 1.0 sm
    6.08 electric - budget is 9.00
    0.54 gas - budget is 9.00
    261.7 miles (per 2 week) achieved. Allowence is 310 miles per 2 weeks.
    42.14 mpg achieved, target is 40 mpg
    Actual fuel cost came to 32.10 which is 2.90 under the cash budget.

    So, there you have it, not a bad week at all - I'm quite pleased.
    Water usage is usually about 0.75 when we've had plenty of rain (no plants to water), I use a 4 minute egg timer from united utilities for showers which helps.
    Electric usage - not bad at all, used oven many times this week.
    Gas usage - if only it could be this low all year round! Expecting this to rise when we start getting into September & October as the heating will have to go on.
    Milage - my car fuel calculations are done on a 2 week basis. Milage has been kept under target due to cutting out small journeys and walking.
    MPG - over 40 mpg is great, I achieved over 42 mpg over last two weeks, as winter approaches this will drop.

    So as I said, a good week & extra money to be thrown at the mortgage fund.
    Last edited by Thriftmaster1973; 19-08-2017 at 8:25 PM.
    • Thriftmaster1973
    • By Thriftmaster1973 12th Sep 17, 4:29 AM
    • 51 Posts
    • 133 Thanks
    First month project mfw a success
    Well its been 4 week since the start of my long journey and I am very pleased to report that I have exceeded my target of 333.00 being left over from the previous wage.

    I have managed to beat the target by a modest 38 - yes 371 is the figure I am left with.

    I must tell you that i'm well chuffed at beating my target.

    I kept a daily spending record and early on this showed that buying just three Costa coffies cost the best part of a tenner, I wouldn't have thought about this if I hadn't had the spending written down in front of me. Ive found the spending record is essential in order to keep track of spending where it's not needed.

    It wasn't too difficult tbh but it wasn't easy either, I think the key is to stay focused - every hour - every day. I'm trying to treat the mfw journey as a game, this month i've won!
    • Thriftmaster1973
    • By Thriftmaster1973 12th Sep 17, 9:31 PM
    • 51 Posts
    • 133 Thanks
    Thrifty shopping for the mortgage free target.
    I take it all us MFW's spend extra time doing research into what's on offer and where?

    I usually spend a good hour a week researching prices and offers on

    It's well worth worth it to me, I usually manage to save around 50 to 60 a month rather than doing all my shopping in one store.

    Bulk buying non perishable / freezable discounted stuff also helps me save big time.

    Being on a fixed income I use the mindset that "every penny saved is a penny earned", it's certainly saved - "earned" a nice amount so far.
    • Financialfreedom
    • By Financialfreedom 12th Sep 17, 10:34 PM
    • 15 Posts
    • 20 Thanks
    Hi Thrifty! I'm on the mortgage repayment plan too, so will follow with interest.

    I agree with some of the comments here. You need to reasses some of your outgoings, like the gym; can you cycle/run and do home work outs and maybe switch to just the local pool for swimming? Possibly the boiler insurance can go and you can look at some better life insurance options to save there.

    In terms of your repayments, I would recommend you split your disposable income between mortgage, savings and pension. But decide what works best for you.

    You need accessible cash and you need to contribute to your pension. It really is a better saving than repaying your mortgage. Have a look at the compound benefits of building your pension and decide from there.

    Good luck!
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