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  • FIRST POST
    • Thriftmaster1973
    • By Thriftmaster1973 13th Aug 17, 5:53 PM
    • 51Posts
    • 133Thanks
    Thriftmaster1973
    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.

    SOA

    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 3
    • Thriftmaster1973
    • By Thriftmaster1973 13th Sep 17, 12:17 AM
    • 51 Posts
    • 133 Thanks
    Thriftmaster1973
    Hi there,
    Thanks for your comments.
    I don't think I will cancel this my gym membership just yet as I go 3 x 2 hour gym swimming sessions a week.
    A one off swim is 3.40 at my local council leisure centre.

    The boiler insurance is something I am thinking about getting shut of.
    It's with British Gas and I think it's too expensive.
    They have been taking the money on a monthly basis but have failed to do a service on the boiler for two years.

    Pensions - not even thinking of these for now. I'm a company scene and it's being contributed to monthly.
    • Thriftmaster1973
    • By Thriftmaster1973 3rd Oct 17, 8:02 PM
    • 51 Posts
    • 133 Thanks
    Thriftmaster1973
    Well another month (4 weekly pay period) nearly over and looking at the accounts / one weeks outgoings, I should have just cleared the 333 target.
    Last pay day I managed 371 which I was over the moon with, it's looking like 343 this period so I carnt complain.
    371
    343

    That's 714 in the overpayment pot in 8 weeks.

    It's an education that's for sure, as long as I can stay focused I'm sure this plans gonna work!
    • Thriftmaster1973
    • By Thriftmaster1973 29th Oct 17, 4:27 PM
    • 51 Posts
    • 133 Thanks
    Thriftmaster1973
    Well another 4 week period done and the target was missed making me feel like I've failed. Only managed to save 130 this period so not best pleased.
    I had a few mishaps this month which have knocked me a bit off the chosen path.
    After these financial mishaps I kind of lost interest and treated myself to a m&s visit (this is a no no for me).
    Heating and lighting costs are rising too now it's getting colder.
    My MPG target of 40 MPG is now dipping below this amount due to the colder weather.
    So it's time to look at my mistakes and take stock, a new month is nearly here and I must re focus on my goal.
    • Welshlassie
    • By Welshlassie 7th Nov 17, 4:15 PM
    • 1,719 Posts
    • 2,995 Thanks
    Welshlassie
    you haven't failed as you still added to the pot, failure would have been taking out of the pot for something. Celebrate the small successes you can't "win" every month and you are most definitely winning at the moment.
    • Escapar2020
    • By Escapar2020 7th Nov 17, 6:37 PM
    • 82 Posts
    • 154 Thanks
    Escapar2020
    Just caught up in your diary and will follow with interest. Im also aiming to be mf before I'm 48, so within 3 years. I'm not sure what I'll do once I become mf, whats your plan?
    Jan17: 42,898 Scheduled end: Jul2028 Planned MF: Sep2020
    Mar18 Actual 29,983. OP offset 27,847. Full off-set 15,911
    • Thriftmaster1973
    • By Thriftmaster1973 10th Dec 17, 9:53 PM
    • 51 Posts
    • 133 Thanks
    Thriftmaster1973
    Not thought about life after the mortgage but I have thought about the freedom it will give. No more worrying about job security, no more worrying about interest rates.
    The house will be all mine, it will leave me with over 1000 per month left over so life should be good.
    • Thriftmaster1973
    • By Thriftmaster1973 10th Dec 17, 10:06 PM
    • 51 Posts
    • 133 Thanks
    Thriftmaster1973
    Update December 2017
    Well, not a bad month so far, had my first of the journeys disasters late November - my washing machine gave up, water leaking from the drum, it has had its day I'm afraid.
    I was looking at prices for a replacement, looking at a cheap brand - Currys own - Logik. This is a name I'd never heard of and some of the online reviews were dreadful. This washer was going for 175 (silver version) at the time.
    A few days later I found myself looking at black Friday deals where I seen a 8kg hotpoint was 420 reduced to 270. I also had a 50 supercheques vouchour from work (8 years service no absence), this brought the hotpoint down to 220 so I decided to go for it.
    I know I could get a cheaper washer for slightly less but I am hoping the hotpoint should give over 5 years trouble free service.
    Anyway back to the mfw battle now, let's hope no more majors happen.
    • Thriftmaster1973
    • By Thriftmaster1973 10th Dec 17, 10:15 PM
    • 51 Posts
    • 133 Thanks
    Thriftmaster1973
    Update December 2017
    Well, not a bad month so far, had my first of the journeys disasters late November - my washing machine gave up, water leaking from the drum, it has had its day I'm afraid.
    I was looking at prices for a replacement, looking at a cheap brand - Currys own - Logik. This is a name I'd never heard of and some of the online reviews were dreadful. This washer was going for 175 (silver version) at the time.
    A few days later I found myself looking at black Friday deals where I seen a 8kg hotpoint was 420 reduced to 270. I also had a 50 supercheques vouchour from work (8 years service no absence), this brought the hotpoint down to 220 so I decided to go for it.
    I know I could get a cheaper washer for slightly less but I am hoping the hotpoint should give over 5 years trouble free service.
    Anyway back to the mfw battle now, let's hope no more majors happen.
    • Thriftmaster1973
    • By Thriftmaster1973 11th Dec 17, 4:57 AM
    • 51 Posts
    • 133 Thanks
    Thriftmaster1973
    Wake up call
    I noticed at work yesterday that they have a shopping trolley in reception, this is apparently for non perishable food items for local food banks.
    On arrival home I decided to Google about these outlets, the statistics and stories are quite alarming. Single people, couples, families with kids, elderly all struggling to put food on the table.
    I felt quite ashamed really at my penny pinching, ashamed about worrying if I had hit my 'monthly overpayment target', I immediately went through the kitchen and got together about a tenners worth of items for the trolley at work.
    It's sad that we are supposed to be an advanced rich nation and have people who are going hungry.
    I can't claim to know what the answer is, anyone can end up in hard times I suppose. I suspect there's many people who don't know how to manage money, others may be suffering with mental health issues, physical health issues, addiction - suppose the list is endless.
    The bottom line is I find myself feeling a bit guilty that I knew so little about those who rely on food donations.
    Anyway, I'm sure my small donation will go some way to easing someone's hunger.
    • Kittenkirst
    • By Kittenkirst 11th Dec 17, 6:25 AM
    • 1,918 Posts
    • 10,270 Thanks
    Kittenkirst
    I am sure it definitely will help some people in your community

    I wouldn!!!8217;t feel bad about your financial planning and overpayments goals though- it!!!8217;s good to have a plan to be working to
    2018 MFW #20 - OP 2236.18/ 3000 74.5%
    May: 361.07 June: 182.76 July: 53.21

    Mortgage Oct '16 170.995 LTV 90% end: Nov 2041
    Overpayments 2016 255.50 2017 2600.40
    • Thriftmaster1973
    • By Thriftmaster1973 11th Dec 17, 5:00 PM
    • 51 Posts
    • 133 Thanks
    Thriftmaster1973
    Yes your right, charity does begin at home and I'm sure most of us on the mfw journey are sacrificing a hell of a lot in our lives to achieve the end goal.
    • michelle09
    • By michelle09 15th Dec 17, 3:29 PM
    • 790 Posts
    • 4,416 Thanks
    michelle09
    I'm with KK, it's good to help out with people and to be aware of how easily even people here can slip into hard times, but don't feel guilty about your own money saving. Part of the reason we OP our mortgage is that it drops the monthy minimum payment which should help if we fall hard times.

    You have really helped someone though, so good on you.
    • Thriftmaster1973
    • By Thriftmaster1973 17th Dec 17, 4:13 PM
    • 51 Posts
    • 133 Thanks
    Thriftmaster1973
    Thank you Michelle, it was the kids plight in a lot of this that gets to me, especially at this time of year.

    Anyway, back to the mfw journey, does anyone think they know what the interest rate will be in say 2 - 3 years?

    I was having this conversation with a friend yesterday, he said the rate won't go up by a drastic amount as the economy is still very fragile and too much of a jump in rates could plunge us back into reccesion. I generally thought the same, I'm currently on fixed rate 2.54% for another 2.5 years. I wouldn't want this to change much when the fix ends, mind u , with the overpayments I am making I should only have about 20k mortgage debt in 2.5 years.
    • Secret Saving Squirrel
    • By Secret Saving Squirrel 20th Dec 17, 10:10 PM
    • 1,982 Posts
    • 36,757 Thanks
    Secret Saving Squirrel
    Hello,

    Nobody can predict interest rates for sure, but a very slow upward movement seems to be the consensus. However, I remember the eighties and early nineties when we were paying 14% and the bill was shooting up every month. It is one of the reasons why I went for overpayment rather than pension payment, as I really didn't trust mortgage lenders! I just wanted rid of the debt and the feeling of security now that it is paid off is worth a lot more to me than the extra amount on a pension at some point in the future, especially when pension rules seem to be quite elastic too.

    Very good luck on your journey and I admire your thoroughness! Don't be despondent when some months are less successful than others as this is inevitable and you are still moving in the right direction.
    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
    • Thriftmaster1973
    • By Thriftmaster1973 22nd Feb 18, 2:56 PM
    • 51 Posts
    • 133 Thanks
    Thriftmaster1973
    Well, 2 overpayments of 1000 done so far.
    My mortgage debt now 47,717, due to drop even further on 1st March as that's when my normal mortgage payment goes out.
    It was just over 50k before Christmas so the 'dent' is finally happening.
    It still feels like a marathon to accomplish but I'm focussed on watching my spending and constantly looking at ways in which to fine tune my spending.
    I'm treating it like I game, some family members have started taking the mick at how tight I've become but it's a means to an end. Here was some of my methods....
    1. Went without heating for one 24 hour period as the amount being used would have forced me over budget of 9.50 per week gas.
    2. Went to the local supermarket at 21:00 Saturday night, got loads of 10p whoopes and put them in freezer.
    3. Walked to my sister's and mates houses instead of using car, did this around 4 times over the month.
    4. Refused to go for takeaway to my sister's which saved me some 's.
    5. Have begun to mealplan, this seems to be a big, big money saver and I have no plans to stop doing this.

    Anyway, there's the update, bye for now
    • Thriftmaster1973
    • By Thriftmaster1973 22nd Feb 18, 6:51 PM
    • 51 Posts
    • 133 Thanks
    Thriftmaster1973
    I meant to say that I didn't find it easy at all scrimping and scraping to make the overpayments, does anyone here who's well into the sport of becoming mortgage free feel the same?
    Does it get any easier or rather a task of habit?
    50,134 owing December 2017 , now @ 47,717.
    • Escapar2020
    • By Escapar2020 23rd Feb 18, 7:28 AM
    • 82 Posts
    • 154 Thanks
    Escapar2020
    Good going thriftmaster!

    I think it does get easier in the sense that it becomes more normal, and seeing the impact on your balance is a great motivator. It can be tempting to push yourself really hard, but it can be worth thinking about how much difference extra little overpayments can make. For me, I don't over do it because it would make little difference in the long term and makes me worry too much about money in the short term. I think they key is to find a level of op you're comfortable with and maintain it.

    Escapar2020
    Jan17: 42,898 Scheduled end: Jul2028 Planned MF: Sep2020
    Mar18 Actual 29,983. OP offset 27,847. Full off-set 15,911
    • Thriftmaster1973
    • By Thriftmaster1973 24th Feb 18, 1:52 PM
    • 51 Posts
    • 133 Thanks
    Thriftmaster1973
    Yes, your right Escaper, its funny, I feel like a CEO sat at the dining room table going through all the figures, I even went round to my sister's yesterday and saved her
    near 800 per year she was paying on stuff she didn't use. Sky and EE lost out big time as she was paying a whopping 22 per month sim only!!!!! I got her on giffgaff 10 per month unlimited calls and texts + 3gb.
    She was paying 40 for sky TV, she only watches normal freeview channels so I got her a freeview plus box for 96 (humax direct).
    She was paying 12.99 sky protect to cover her sky system.
    A good day for her as I cut 780 from her annual outgoings.
    Obviously I've already cut my outgoings down to the bone long ago and all I can now do is fine tune the expenditures.
    Last edited by Thriftmaster1973; 24-02-2018 at 1:55 PM.
    50,134 owing December 2017 , now @ 47,717.
    • Escapar2020
    • By Escapar2020 25th Feb 18, 4:13 PM
    • 82 Posts
    • 154 Thanks
    Escapar2020
    I hope she paid you some commission!
    Jan17: 42,898 Scheduled end: Jul2028 Planned MF: Sep2020
    Mar18 Actual 29,983. OP offset 27,847. Full off-set 15,911
    • newgirly
    • By newgirly 25th Feb 18, 5:45 PM
    • 6,360 Posts
    • 43,958 Thanks
    newgirly
    Hi, just spotted your diary and wanted to say welcome

    You are doing really well making ops, I know it's not easy but try and give yourself a bit of breathing space sometimes too, not easy as it can become quite addictive! But it's a long period of time to be ultra frugal for.

    Is there any way to up your income to help with the op's? Online surveys, eBay selling, matched betting etc. May be of interest, apologies if this is stating the obvious

    All the best
    MFW 21
    Target for 2018 40k/13,632 paid so far

    Mortgage 36,319 4yrs left. Total owed 48,358 plan to clear in 14 months
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