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  • FIRST POST
    • SWSEGirl
    • By SWSEGirl 12th Oct 17, 9:02 AM
    • 102Posts
    • 339Thanks
    SWSEGirl
    Mortgage free & able to live the dream!
    • #1
    • 12th Oct 17, 9:02 AM
    Mortgage free & able to live the dream! 12th Oct 17 at 9:02 AM
    Hi all,

    I've followed these boards religiously during my epic daily commute & had a thread over on debt free wannabe - although was terrible at keeping up with it

    My husband & I bought our first flat in London a year ago with 15% LTV & a mortgage of 322,000
    This seems to be miles higher than most people on here. We've got a 35yr term & are currently due to finish paying by time I'm 65 obviously the plan is to pay it off much sooner than this.

    We're both in reasonably well paying jobs & put roughly 1300 in savings a month, we've got a pot of 10k - but I'm now wondering if we should channel 1000 a month to a mortgage OP (this is the maximum OP we're permitted to make without charges). We're currently OP'ing by 200-300 pm. If we OP'd by the maximum we could be mortgage free in 15 years!!!!

    Our ultimate plan would be to buy somewhere close to where we're both from & hold on to our London flat. This is obviously a long way off - but that's what we'd work towards. The problem is I cant work out if we should be paying off our current mortgage quicker or saving for a deposit.

    The added complication is that we would like to start a family in the next year - which will definitely impact one of our earnings & probably our savings pot

    At least this diary will help me stay accountable & help us acheive the end goal!
Page 6
    • SWSEGirl
    • By SWSEGirl 28th Jan 18, 5:29 PM
    • 102 Posts
    • 339 Thanks
    SWSEGirl
    A lovely weekend - brunch with friends yesterday, then a market with DH today. As usual our weekend has revolved around food!

    I'm determined to have as many NSD's this week as possible. I'm out for dinner with a friend on Wednesday, but other than that i should be able to avoid spending too much.

    I got up before DH this morning & made a big shepherd's pie, so that should be a good addition to my frozen lunch stash!
    Original Mortgage as of September 2016 = 322,999 Paid off by 2051
    Current Mortgage Balance as of September 2017 = 316,649
    Emergency Savings = 9,661 10,000 10,500 11,200 11463 12,213 13,000
    Mortgage OP's Total = 1500 2200 2900 3900 4900 5900
    • SWSEGirl
    • By SWSEGirl 29th Jan 18, 8:29 PM
    • 102 Posts
    • 339 Thanks
    SWSEGirl
    Through no real intention & just as a result of a mega busy work day, I've had an NSD. I was supposed to be meeting friends for drinks, but work put a stop to that...happily my finances will thank me.

    I'm due to go out for dinner tomorrow, but after that I should be able to manage a couple more NSD's before the week is out.

    I knew work was going to get busy & I knew what I was signing up for, but I can't help but be anxious about my month away I did it to improve our finances & I know I'll be glad once the project is done, it'll look great on my CV, but I'm having a bit of a wobble at the moment.
    Original Mortgage as of September 2016 = 322,999 Paid off by 2051
    Current Mortgage Balance as of September 2017 = 316,649
    Emergency Savings = 9,661 10,000 10,500 11,200 11463 12,213 13,000
    Mortgage OP's Total = 1500 2200 2900 3900 4900 5900
    • SWSEGirl
    • By SWSEGirl 30th Jan 18, 9:12 AM
    • 102 Posts
    • 339 Thanks
    SWSEGirl
    Right - I'm giving YNAB another try. I can't say I'm not still finding it hugely confusing...but I'll see if I can make it work for me.

    My main difficulty is I've input my current balance & scheduled my pay for 23rd, but have had to take out my mortgage payment etc to make the budget for Feb hit zero, but guess I'll input that after my pay hits?? Aargh!

    I wish I was paid on the 1st, that would make life a lot simpler! Any tips much appreciated.
    Original Mortgage as of September 2016 = 322,999 Paid off by 2051
    Current Mortgage Balance as of September 2017 = 316,649
    Emergency Savings = 9,661 10,000 10,500 11,200 11463 12,213 13,000
    Mortgage OP's Total = 1500 2200 2900 3900 4900 5900
    • Tahlullah
    • By Tahlullah 31st Jan 18, 8:15 AM
    • 870 Posts
    • 4,871 Thanks
    Tahlullah
    I struggled at first. I get paid mid month and bills come out throughout the month, so it was difficult getting settled.

    I budget for what needs to come out from the 1st to the 31st and I continue to work within that month accordingly. Once I get paid, I allocate the income to the following month, I don't try to add it into the month I am in, I deem it to be the following months pay. So, my pay in mid February comes in, and I allocate it for 1 March to 31 March.

    YNAB allows me to spend January's money within January without going into February's money until 1 February. You get paid late in the month. That pay should be for the following month and you survive on what you already have in the bank until the 1st of the following month.

    I'm not sure how others do it, but it works for me. The issue is taking a month or so to get settled, but once it is set up, it makes perfect sense and is easy to follow and budget.
    Last edited by Tahlullah; 31-01-2018 at 8:18 AM.
    Striving to be mortgage free.
    2018 MFW #135

    600 of 2000
    • SWSEGirl
    • By SWSEGirl 1st Feb 18, 7:58 AM
    • 102 Posts
    • 339 Thanks
    SWSEGirl
    Thanks Talluhlah! I'm gradually getting the hang of YNAB I think, especially starting February with a clear-ish slate.

    I've watched a few tutorials & I can see how their principles work - it makes perfect sense to only budget with what you have, although I struggled to get my head round the concept initially - it's evidently the best way to budget!

    Dinner out last night & lunch today with my Mum, then lunch out again tomorrow with work colleagues - although I'm half tempted to eat before hand & just join them for a drink - might look a bit anti social!
    Original Mortgage as of September 2016 = 322,999 Paid off by 2051
    Current Mortgage Balance as of September 2017 = 316,649
    Emergency Savings = 9,661 10,000 10,500 11,200 11463 12,213 13,000
    Mortgage OP's Total = 1500 2200 2900 3900 4900 5900
    • SWSEGirl
    • By SWSEGirl 2nd Feb 18, 6:46 PM
    • 102 Posts
    • 339 Thanks
    SWSEGirl
    I love Fridays!

    As usual I'm pretty tired...my new job is demanding, but I keep reminding myself of the increased pay and how much that will help us being able to overpay.

    A few days into using YNAB and it's making more & more sense. Weirdly I feel much more empowered to spend money now, which seems odd. As soon as I know there are sufficient funds to cover certain areas, there is no longer any guilt about spending - it's pretty liberating actually. I thought I was being organised and intentional about spending before - but this has really clarified things for me and helped me plan ahead. I really hope it will help me to keep out of my overdraft.

    I hope everyone has a lovely weekend!
    Original Mortgage as of September 2016 = 322,999 Paid off by 2051
    Current Mortgage Balance as of September 2017 = 316,649
    Emergency Savings = 9,661 10,000 10,500 11,200 11463 12,213 13,000
    Mortgage OP's Total = 1500 2200 2900 3900 4900 5900
    • SWSEGirl
    • By SWSEGirl 5th Feb 18, 8:22 AM
    • 102 Posts
    • 339 Thanks
    SWSEGirl
    Monday again - the weeks are flying by!

    Quite an expensive weekend - I got my hair done, took a friend for lunch & was out yesterday (although only cake spends!) Happily YNAB means I can see a clear projection that I'm on track. I have had to shift funds around a bit - I've got a feeling my 'Dining Out' category will habitually need topping up!

    Our grocery shopping is going well - we're spending 65 ish every time, but that is lasting us a good 10 days, which isn't too bad I don't think.

    18 days until payday.
    Original Mortgage as of September 2016 = 322,999 Paid off by 2051
    Current Mortgage Balance as of September 2017 = 316,649
    Emergency Savings = 9,661 10,000 10,500 11,200 11463 12,213 13,000
    Mortgage OP's Total = 1500 2200 2900 3900 4900 5900
    • gallygirl
    • By gallygirl 5th Feb 18, 3:29 PM
    • 16,544 Posts
    • 109,300 Thanks
    gallygirl
    Just read all your diary - crikey what a busy life you lead . A few things jumped out at me as I read it.......
    I have had to shift funds around a bit - I've got a feeling my 'Dining Out' category will habitually need topping up!
    Originally posted by SWSEGirl
    Am sure you were joking - but that's not really how it's supposed to work .

    Have you reached a decision about a cleaner yet? It's only right your hubby should have the final say - as he works from home a lot he saves on commuting time so obviously is in a position to do the majority of the housework. As he's so against the idea he'd probably be prepared to take on even more .

    It seems you are spending an absolute fortune every month on socialising. The 'one-off events' are so frequent they are part of your regular life. Rather than thinking of cutting down by/to an arbitrary amount could you try looking at it another way? There is an opportunity cost to this money - it can only be spent once. Every thousand pounds you spend on socialising is a thousand pounds you can't spend elsewhere. When you have children do you want to go back to work full time or part time? Saving 12k over the next year (in addition to what you are doing - your SOA says it can be done) could mean cutting down to part-time. Or take you 12k nearer your dream of moving to the country.

    Your spending decisions now won't really impact on you. They will impact on a future you. It's the future, older, you who will have to juggle full-time work with getting a baby/children too and from nursery, running a house and looking after your family. You're tired now - trust me, you don't know the meaning of the word until you have children .

    If your main dream is to move to the country - properly cost out how much you need to go. Set yourself up a spreadsheet that gives you a target date. Every 100 you're about to spend on a meal and drinks out could move that date forward by a day for example. Do you want another meal out or would you prefer to move a day earlier? Remind yourself of that decision on your morning commute, especially if it's a bad transport day! Chuck every penny at it (whether 'it' is overpaying your mortgage or going into savings, it's all the same net picture) and you'll be amazed at how you can reduce that date. Call it your Freedom Date, or Escape to the Country Date or whatever, make it part of your lives. It's easier to work to a definite goal rather than a vague one.

    I don't need to sound so negative - but you and your hubby have a fabulous opportunity to set yourselves up for life with a bit of frugal living now. Remember, a dream without a plan is just a wish.

    Good luck and I hope your commute is a good one tonight
    A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
    Mortgage Balance = 0
    "Do what others won't early in life so you can do what others can't later in life"
    • SWSEGirl
    • By SWSEGirl 5th Feb 18, 6:58 PM
    • 102 Posts
    • 339 Thanks
    SWSEGirl
    Hi Gallygirl,

    Thank you for your comments - yes I was half joking about my dining out budget - I did top it up - reading all the YNAB tutorials they advised that shifting money around the budget would happen in the first month - and I am pleased to report I'm still very comfortably within budget, having contributed more than I planned to savings too. Lesson learned though - I should have budgeted more realistically.

    I have discussed with a broker how much moving will cost us and worked out a schedule to achieve this target - I've based this on 2 different scenarios on whether we have a baby or not, house values etc. - we are spreadsheeted' up to the eyeballs on this. I'm sorry my plan seemed so vague - it's pretty focused, albeit subject to a number of variables. Our planned move date would be September 2022.

    My husband and I have a timeline in mind, but agreed not to sacrifice every single thing we enjoy. We don't really drink, neither of us spends a huge amount on clothes and we didn't have a holiday for 5 years. I spoke to my Mum recently about our savings plan, and whilst she was pleased for me she pointed out to me that both my grandfather and my own dad saved tirelessly for retirement, and both sadly died young before being able to enjoy it. I don't think she was encouraging me to spend more - but rather find some balance, which I hope we have done. I've faced quite a lot of criticism recently for being too obsessed with the budget from my family & husband!

    I should probably have made it clearer that we are very happy in London - despite the long hours and commute we are in no huge rush to leave - it is our long term dream, we definitely don't want to scrape moving a day earlier in exchange for also enjoying the present! We have forgone the cleaner - and we'll put the funds towards saving.

    In terms of the future me - I've no doubt having children will be tiring & costly, I can only compare it to having cared for a very sick dependant relative around work. We've delayed it so far in order to give ourselves as much support as possible.... and because of horror stories from knowing parents!

    The only thing that encourages me is that it seems to be our London friends with similarly time consuming jobs who have had children who seem to be the most positive about it - and the fact it has brought balance and perspective to their lives, fingers crossed it would be the same for us.
    Original Mortgage as of September 2016 = 322,999 Paid off by 2051
    Current Mortgage Balance as of September 2017 = 316,649
    Emergency Savings = 9,661 10,000 10,500 11,200 11463 12,213 13,000
    Mortgage OP's Total = 1500 2200 2900 3900 4900 5900
    • gallygirl
    • By gallygirl 5th Feb 18, 10:18 PM
    • 16,544 Posts
    • 109,300 Thanks
    gallygirl
    Glad you've got a timeline in mind SWSEG, I didn't realise you were so far along in your planning. I'm not suggesting you give up everything at all, mindful spending is what you need to do and it sounds as if that's what you're doing so well done.

    It's strange how losing family and friends too young can affect people. Some react by saying You Only Live Once - and there's a lot to be said for that. The other reaction (which is how myself and some friends reacted) is YOLO - And I Don't Intend To Spend It Working A Day More Than I Have To .

    However you do it, you're bringing in a good whack every month - make your Little Green Soldiers work hard for you .
    A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
    Mortgage Balance = 0
    "Do what others won't early in life so you can do what others can't later in life"
    • SWSEGirl
    • By SWSEGirl 7th Feb 18, 7:50 AM
    • 102 Posts
    • 339 Thanks
    SWSEGirl
    Thanks Gallygirl - yes my Dad certainly shared that philosophy & was desperate to stop working, sadly he was never able to - but I think I've inherited at least some of his work ethic as well as being able to enjoy those things that bring pleasure to our lives. I feel pretty satisfied that I've stuck a good balance. We'll probably have put 2.5k towards savings/ mortgage OP in this past month, which feels like a good amount. If we had saved what we spent on eating out this month we would have an extra 82 - which is not to be sniffed at, but I feel was great value for money.

    In other (dull!) news - we had roast chicken dinner on Monday, then chicken sandwiches last night, I also stayed up to make chicken soup, so my freezer stock looks healthy & DH has lunch sorted for today.

    I have a work dinner/ party tonight (don't worry gallygirl, all paid for ) Other attendees have invested in new dresses, but Ive worn something old- not sure it's really up to black tie standards....but there you go!
    Last edited by SWSEGirl; 07-02-2018 at 2:29 PM. Reason: typo!
    Original Mortgage as of September 2016 = 322,999 Paid off by 2051
    Current Mortgage Balance as of September 2017 = 316,649
    Emergency Savings = 9,661 10,000 10,500 11,200 11463 12,213 13,000
    Mortgage OP's Total = 1500 2200 2900 3900 4900 5900
    • try harder
    • By try harder 7th Feb 18, 10:11 AM
    • 746 Posts
    • 2,842 Thanks
    try harder
    I would say that 2,500 in a month in savings and OP is absolutely amazing .Well done
    • SWSEGirl
    • By SWSEGirl 7th Feb 18, 2:31 PM
    • 102 Posts
    • 339 Thanks
    SWSEGirl
    Thanks Try harder! I've been questioning things this week, but do feel we're making progress. x
    Original Mortgage as of September 2016 = 322,999 Paid off by 2051
    Current Mortgage Balance as of September 2017 = 316,649
    Emergency Savings = 9,661 10,000 10,500 11,200 11463 12,213 13,000
    Mortgage OP's Total = 1500 2200 2900 3900 4900 5900
    • gallygirl
    • By gallygirl 7th Feb 18, 6:11 PM
    • 16,544 Posts
    • 109,300 Thanks
    gallygirl
    Other attendees have invested in new dresses, but Ive worn something old- not sure it's really up to black tie standards....but there you go!
    Originally posted by SWSEGirl
    Next time you go to 'the country' check out the charity shops - amazing bargains to be found for posh frocks
    A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
    Mortgage Balance = 0
    "Do what others won't early in life so you can do what others can't later in life"
    • SWSEGirl
    • By SWSEGirl 12th Feb 18, 8:10 AM
    • 102 Posts
    • 339 Thanks
    SWSEGirl
    Happy Monday!

    After a lovely weekend I'm gearing up for a busy week at work - but only 11 days until payday & my bank balance is still looking healthy. Student Loans have received my paperwork & I should be given a refund by the 20th Feb - although my past dealings have been less than encouraging!

    Stupidly I also lent a friend 200 3 weeks ago.....to last her until payday on the 1st Feb. I'm not sure why I did this really - she & I are paid the same, so I don't think she can be desperate, but I wanted to help & I remember the feeling of not beingable to reach payday. Obviously the 1st has been & gone with no mention of repayment & now I feel like a bad guy if I chase her. I know I can get to payday without the cash, so maybe I'll wait it out a bit longer....

    I've better news I've paid a decent whack to my credit card this month - so hoping to clear this in the next few months

    I made some homemade bread rolls last night, so I've got one of these to accompany my veghie chilli lunch today & I'm generally feeling ready for the week ahead!
    Original Mortgage as of September 2016 = 322,999 Paid off by 2051
    Current Mortgage Balance as of September 2017 = 316,649
    Emergency Savings = 9,661 10,000 10,500 11,200 11463 12,213 13,000
    Mortgage OP's Total = 1500 2200 2900 3900 4900 5900
    • gallygirl
    • By gallygirl 12th Feb 18, 9:26 AM
    • 16,544 Posts
    • 109,300 Thanks
    gallygirl
    Stupidly I also lent a friend 200 3 weeks ago.....to last her until payday on the 1st Feb. I'm not sure why I did this really - she & I are paid the same, so I don't think she can be desperate, but I wanted to help & I remember the feeling of not beingable to reach payday. Obviously the 1st has been & gone with no mention of repayment & now I feel like a bad guy if I chase her. I know I can get to payday without the cash, so maybe I'll wait it out a bit longer....
    Originally posted by SWSEGirl
    "How dare you ask for the money back? You obviously don't need it if you could afford to lend me it in the first place. Of course I'm going to give you it back. Em..... next month? Bit hard up this month. Got to go, getting my nails done."

    Saved you the bother of asking her . That's why I won't lend money (other than 5 for an exercise class etc. because someone forgot their purse) - you often end up being the bad guy .
    A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
    Mortgage Balance = 0
    "Do what others won't early in life so you can do what others can't later in life"
    • try harder
    • By try harder 12th Feb 18, 9:32 AM
    • 746 Posts
    • 2,842 Thanks
    try harder
    Oh you are too kind ,i have done that too in the past and as gallygirl said been made to feel horrible for asking for it back
    • Tahlullah
    • By Tahlullah 12th Feb 18, 7:47 PM
    • 870 Posts
    • 4,871 Thanks
    Tahlullah
    When I did the same with family, I decided to write it off. It was easier than having to run the gauntlet every time. I learnt it was easier to let it go than deal with the guilt of daring to ask for it back. I can't imagine the same scenario with a friend - who by the way would not be a friend for long.

    Let us know how it goes.
    Striving to be mortgage free.
    2018 MFW #135

    600 of 2000
    • SWSEGirl
    • By SWSEGirl 13th Feb 18, 7:34 AM
    • 102 Posts
    • 339 Thanks
    SWSEGirl
    Thanks everyone - I feel really silly over this! The thing is, if anyone lent me money - I would endeavour to pay it back as soon as I could. I'd be embarrassed to be chased. I really should never do this again - as asking for it back makes me feel like a bad person (gallygirl summed up perfectly!) I could afford to write it off - but it wasnt lent to a desperate person (she's been partying since!) And I think it would be unfair to my DH since we're really trying to save together & lending this money was my decision.

    In other news, my SLC refund is showing on my account - so will hopefully clear in the next day or so. Had an NSD yesterday & should be another today. Shame all these NSD's are cancelled by the money I lent out!!! Aargh.
    Original Mortgage as of September 2016 = 322,999 Paid off by 2051
    Current Mortgage Balance as of September 2017 = 316,649
    Emergency Savings = 9,661 10,000 10,500 11,200 11463 12,213 13,000
    Mortgage OP's Total = 1500 2200 2900 3900 4900 5900
    • SWSEGirl
    • By SWSEGirl 15th Feb 18, 7:52 AM
    • 102 Posts
    • 339 Thanks
    SWSEGirl
    Definitely not an NSD yesterday - but money spent with good reason. A very close relative to DH is extremely ill - so I bought DH last minute train tickets to go and visit. 115 well spent though - but may be time for me to call in the money I stupidly lent out.

    This expense has made me think- just a couple of years ago I might not have been able to afford to spend 115 in an emergency - being more savvy & mindful has given us so much freedom to do what's important. Profound thought for a Thursday!
    Original Mortgage as of September 2016 = 322,999 Paid off by 2051
    Current Mortgage Balance as of September 2017 = 316,649
    Emergency Savings = 9,661 10,000 10,500 11,200 11463 12,213 13,000
    Mortgage OP's Total = 1500 2200 2900 3900 4900 5900
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