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  • FIRST POST
    • fatrab
    • By fatrab 2nd Jan 18, 9:22 AM
    • 1,077Posts
    • 3,941Thanks
    fatrab
    My 5 year plan
    • #1
    • 2nd Jan 18, 9:22 AM
    My 5 year plan 2nd Jan 18 at 9:22 AM
    Happy new year!

    I made a thread at the end of last year in the DFW section (http://forums.moneysavingexpert.com/showthread.php?t=5756197) because of a few silly financial decisions I made in the past year and wanted to set them straight. As part of that I made a spending diary for week and realised how much more I was spending than what I though I was.

    So I promised 2018 was going to be different and that I'd make a thread here to set my goals and note down any achievements!

    My 5 year plan looks like this:

    Timeline:

    Year 1 (2018):
    Plan completed - 01/10/18 (see page 29)

    Year 2:
    January - Cancel Mrs' mobile
    March - Pay road tax IN FULL
    May - Apply for tax rebate
    July - Pay home insurance IN FULL
    13th August - Renegotiate Virg. Media
    September - Pay car insurance IN FULL
    September - Pay TV licence
    Overpay 483/month to mortgage + 17/month extra to remaining debts
    Continue to build up the safety fund

    Year 3:
    Pay off credit card (currently on 0% deal)
    Overpay mortgage

    Years 4 & 5:
    Overpay mortgage.

    I have 6 years and 9 months remaining at the moment but I have been making overpayments and I'm due to re-mortgage in October at the end of a 5 year fix.
    At the end of year 5 have enough money saved to pay any outstanding balance on the mortgage.

    Obviously as each debt is paid off I'll have extra to pay to the next debt, this is where I'll struggle. It'll take a lot of commitment and focus not to go bananas with any spare cash but I'm 43 and want to be debt free by 50. I can do this in 5 years. Debt free by 48 would be amazing!

    Wish me luck!

    Robert

    NOTE: Due to a malicious attack some diaries disappeared and this was one of them. I started a new one, but the nice people at MSE towers managed to recover my original one and they're now merged, from page 6 onwards.

    For October:
    Statement of Affairs and Personal Balance Sheet
    Household Information

    Number of adults in household........... 2
    Number of children in household......... 1
    Number of cars owned.................... 1
    Monthly Income Details

    Monthly income after tax................ 2443
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 2443

    Monthly Expense Details

    Mortgage................................ 800.3
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 139
    Electricity............................. 37.27
    Gas..................................... 40
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 34
    TV Licence.............................. 12.34
    Satellite/Cable TV...................... 34
    Internet Services....................... 0
    Groceries etc. ......................... 0
    Clothing................................ 0
    Petrol/diesel........................... 200
    Road tax................................ 27
    Car Insurance........................... 0
    Car maintenance (including MOT)......... 25
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 6.81
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 30
    Haircuts................................ 0
    Entertainment........................... 100
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 1485.72


    Assets

    Cash.................................... 2200
    House value (Gross)..................... 138000
    Shares and bonds........................ 0
    Car(s).................................. 2000
    Other assets............................ 0
    Total Assets............................ 142200


    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 57974....(800.3)....3.14
    Total secured & HP debts...... 57974.....-.........-

    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    CC.............................3080......110...... .0
    Total unsecured debts..........3080......110.......-


    Monthly Budget Summary

    Total monthly income.................... 2,443
    Expenses (including HP & secured debts). 1,485.72
    Available for debt repayments........... 957.28
    Monthly UNsecured debt repayments....... 110
    Amount left after debt repayments....... 847.28

    Personal Balance Sheet Summary
    Total assets (things you own)........... 142,200
    Total HP & Secured debt................. -57,974
    Total Unsecured debt.................... -3,080
    Net Assets.............................. 81,146

    Created using the SOA calculator at www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using other browser.
    Last edited by fatrab; 01-10-2018 at 8:35 AM.
Page 22
    • fatrab
    • By fatrab 10th May 18, 8:36 AM
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    fatrab
    Morning. The waiting game has begun for the physical cash to be in my hand. Checked my bank this morning and my April expenses are in so that's a start. HMRC can take up to 14 days for the mileage relief but the tax rebate should be in within 5. Dealer said his payment should be paid into my account by the end of the week, hopefully he meant this week!

    The estate agent is coming to see Mrs fatrab's house on Wednesday so hopefully that'll be on the market pretty quickly. The current lodger moves out on Monday so she has a few days to spruce the place up a little if need be.

    I'm on a training course today and tomorrow in Glasgow so it's nice to have a few extra nights at home again. The mortgage advisor called yesterday to say that she still hadn't received my paperwork which was posted last Thursday so it looks like it's lost in the post. I'll pop in and see her today and fill out the forms again.

    I have no patience, I just want everything to be finalised!

    Cheers
    You can have results or excuses, but not both.
    Challenge - be 14 Stone BY XMAS!

    • jwil
    • By jwil 11th May 18, 1:36 PM
    • 9,217 Posts
    • 29,348 Thanks
    jwil
    That's brilliant news Is that you debt free bar the mortgage once the loan is cleared?
    "If you can dream it, you can do it". Walt Disney
    • fatrab
    • By fatrab 12th May 18, 5:34 AM
    • 1,077 Posts
    • 3,941 Thanks
    fatrab
    That's brilliant news Is that you debt free bar the mortgage once the loan is cleared?
    Originally posted by jwil
    Still got the credit card but it's 0% and the minimum payment is set so that the balance will be cleared by the end of the term, so it's just going to trickle away.


    Plus I still have a few things to tidy up this year; those were part of the reason I started posting in the first place. Not paying my car and home insurances in full last year were 2 of the things that made me realise I was on a downward spiral.
    You can have results or excuses, but not both.
    Challenge - be 14 Stone BY XMAS!

    • fatrab
    • By fatrab 12th May 18, 5:46 AM
    • 1,077 Posts
    • 3,941 Thanks
    fatrab
    I haven't posted for a few days as I've been on a course and things have been a bit hectic! It's been good being home for a few extra days though.

    My mileage relief allowance has landed in my account, just waiting on the cash from the dealer then I can get the loan paid. If it's not in my account by Monday I'll give them a call.

    Had to pop in to see the mortgage advisor, it seems the original paperwork has been lost in the post as suspected. And as a result the rate has risen slightly thankfully only by 0.04%
    Last edited by fatrab; 12-05-2018 at 5:52 AM.
    You can have results or excuses, but not both.
    Challenge - be 14 Stone BY XMAS!

    • fatrab
    • By fatrab 14th May 18, 7:45 AM
    • 1,077 Posts
    • 3,941 Thanks
    fatrab
    Morning diary!

    Second part of tax rebate landed this morning so just waiting on the money from the garage now. Oh the suspense is killing me!!!

    11 sleeps til payday too which can't come soon enough as I should have my overtime paid for last month's weekend shift.

    And in other news, I am now 1 pound away from having lost 2 stone! Weigh in was 15st 9lbs this morning! Partly due to a stomach bug over the weekend, but I'm taking it as gospel.

    Will phone garage at 9am and find out where my money is......
    You can have results or excuses, but not both.
    Challenge - be 14 Stone BY XMAS!

    • enthusiasticsaver
    • By enthusiasticsaver 14th May 18, 8:04 AM
    • 7,284 Posts
    • 15,988 Thanks
    enthusiasticsaver
    Brilliant progress on weight loss and finances. Just the mortgage now then to focus on?
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • fatrab
    • By fatrab 14th May 18, 9:07 AM
    • 1,077 Posts
    • 3,941 Thanks
    fatrab
    Brilliant progress on weight loss and finances. Just the mortgage now then to focus on?
    Originally posted by enthusiasticsaver

    Thanks I'm going to wipe out a fair chunk of the emergency fund when I pay the loan so first priority is to get that built back up, but yes the mortgage is next on the hit list. It has left me wondering if a 5 year fix is the right way to go as I should be able to throw way more than the 10% allowed in overpayments. Perhaps a 2 year fix would be a better idea...
    You can have results or excuses, but not both.
    Challenge - be 14 Stone BY XMAS!

    • fatrab
    • By fatrab 14th May 18, 9:10 AM
    • 1,077 Posts
    • 3,941 Thanks
    fatrab
    As if by magic the dealer emailed me this morning to say that the money will be transferred on Wednesday. So that's something to look forward to


    Coasting along nicely this month.
    You can have results or excuses, but not both.
    Challenge - be 14 Stone BY XMAS!

    • Starmummy
    • By Starmummy 14th May 18, 10:12 AM
    • 276 Posts
    • 1,307 Thanks
    Starmummy
    You are going great guns with progress on weight loss and debt loss. fantastic work.
    debt consolidated 16/8/18 11,917.34/12,618.12 (Total debt at LBM c..19.5k)
    EF savings 650.06 House Deposit (LISA) 480.00/12,000 4%
    • JoJoC
    • By JoJoC 14th May 18, 12:07 PM
    • 1,128 Posts
    • 6,920 Thanks
    JoJoC
    Roll on Wednesday!
    CC1: 4481.14/ 5031.14 (12% paid off, 600) | CC2:3307/ 3807 (14.4% paid off, 550) | Loan: 10,528.20/ 15,792.30((33% paid off, 5,264))

    July debt total: 24,630.44 | New debt total: 18,316.34 | Total debt paid: 6,414.10 (26%)
    *My debt busting and savings diary*
    • fatrab
    • By fatrab 15th May 18, 10:51 AM
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    fatrab
    Well to say that tomorrow can't come quickly enough would be the understatement of the century. I'm not sure what time the funds will be transferred, only that it'll be after the car is collected by the new owner. So I'll probably be checking my account every 10mins from 9am onwards lol

    Not got much else to report today, I'm only up north 3 days this week and have most of my food already bought and made so shouldn't spend very much this week at all. Payday is on the 25th so I'll need to have my SOA up to date by then so that I know exactly where I'm at and how I'm going to tackle things going forwards.

    I can pay a maximum of 6600 into my mortgage before October without penalty which would mean I'd only be re-mortgaging 54k in October. I think with my surplus that would be achievable but I wouldn't be rebuilding any savings in the short term. I'd rather pay my surplus to the debt on payday each month to remove any temptation to start spending again and just keep a small safety net in the short term.

    After the re-mortgage is complete I'll focus more on regular overpayments up to the maximum 10% allowed annually and put the remaining surplus into the emergency fund.

    I think once I get to that point I'd like to maybe look at a small holiday with the family
    You can have results or excuses, but not both.
    Challenge - be 14 Stone BY XMAS!

    • JoJoC
    • By JoJoC 15th May 18, 11:41 AM
    • 1,128 Posts
    • 6,920 Thanks
    JoJoC
    Great to have a goal towards Rab - a family holiday would be lovely and certainly deserved after all your work on getting yourselves on the financial straight and narrow. Memories with the kids are so important.
    CC1: 4481.14/ 5031.14 (12% paid off, 600) | CC2:3307/ 3807 (14.4% paid off, 550) | Loan: 10,528.20/ 15,792.30((33% paid off, 5,264))

    July debt total: 24,630.44 | New debt total: 18,316.34 | Total debt paid: 6,414.10 (26%)
    *My debt busting and savings diary*
    • jwil
    • By jwil 15th May 18, 12:28 PM
    • 9,217 Posts
    • 29,348 Thanks
    jwil
    Holiday sounds like a great idea. Hope you don't have to wait too long for the funds tomorrow.

    Have you thought about a tracker mortgage? We can make unlimited overpayments with ours. I appreciate you are at the mercy of interest rates and they are only going to go one way, but could that be offset with the fact you can pay as much as you want?
    "If you can dream it, you can do it". Walt Disney
    • fatrab
    • By fatrab 15th May 18, 1:46 PM
    • 1,077 Posts
    • 3,941 Thanks
    fatrab
    I've never been much of a gambler, I've always preferred to have things regimented so a 5 year fix with the opportunity to overpay and be cleared by the end of the 5 years would normally be right up my street.

    But with the chance to have this paid off sooner I wonder if it's worth taking the risk. It would only backfire if my circumstances were to change. That's the downside to working in the construction industry, things can and do change drastically overnight sometimes.
    You can have results or excuses, but not both.
    Challenge - be 14 Stone BY XMAS!

    • Egon76
    • By Egon76 15th May 18, 3:40 PM
    • 34 Posts
    • 89 Thanks
    Egon76
    Wow, I just read the thread over the last hour. You are on a fab way!
    I like to follow your journey and I have described.
    • fatrab
    • By fatrab 16th May 18, 6:32 AM
    • 1,077 Posts
    • 3,941 Thanks
    fatrab
    Wow, I just read the thread over the last hour. You are on a fab way!
    I like to follow your journey and I have described.
    Originally posted by Egon76
    Thanks for taking the time to read through my diary
    You can have results or excuses, but not both.
    Challenge - be 14 Stone BY XMAS!

    • jwil
    • By jwil 16th May 18, 1:54 PM
    • 9,217 Posts
    • 29,348 Thanks
    jwil
    I've never been much of a gambler, I've always preferred to have things regimented so a 5 year fix with the opportunity to overpay and be cleared by the end of the 5 years would normally be right up my street.

    But with the chance to have this paid off sooner I wonder if it's worth taking the risk. It would only backfire if my circumstances were to change. That's the downside to working in the construction industry, things can and do change drastically overnight sometimes.
    Originally posted by fatrab
    Maybe it's worth having a word with your adviser. I don't know how tracker rates compare with fixed rates, but if they are lower then it would give you a sort of buffer between what you are paying on a tracker and what you would be paying with a fixed if interest rates rise.

    I'd never have chosen a tracker, but we went onto it when our fix ended. Because rates have been so low we've really benefited and I didn't consider getting another fix. I love the thought that I could clear the mortgage any day without penalty, so I'd definitely go for one again, unless I thought rates would go up significantly and quickly. My plan is to stay on this until interest rates reach around 2.5% then fix. I'm hoping that's a while away yet.

    Whilst it is inevitable that rates will go up, they don't sound like they will be going up at a rapid pace, so if you've only got the 5 years left, you might be able to miss a lot of it, especially if you've got the ability to overpay.

    I appreciate the job risks though, and definitely think that through first and get professional advice and do the sums properly.
    "If you can dream it, you can do it". Walt Disney
    • fatrab
    • By fatrab 16th May 18, 6:30 PM
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    • 3,941 Thanks
    fatrab
    The Eagle has landed!
    The funds have arrived in my account! Now that the physical cash is in my hand, so to speak, I need to be absolutely sure that paying the loan off is the right thing to do.

    I've been thinking about this all day.

    Pros:
    Another whole debt cleared
    Incresed montly surplus

    Cons:
    The loan is not the debt with the highest interest rate. My current mortgage is.
    I would be leaving myself with an emergency fund of only 1000.

    I'm going to sleep on it
    You can have results or excuses, but not both.
    Challenge - be 14 Stone BY XMAS!

    • jwil
    • By jwil 16th May 18, 7:18 PM
    • 9,217 Posts
    • 29,348 Thanks
    jwil
    Yay to car funds
    "If you can dream it, you can do it". Walt Disney
    • fatrab
    • By fatrab 17th May 18, 6:56 AM
    • 1,077 Posts
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    fatrab
    Loan Paid - 17/05/18
    You can have results or excuses, but not both.
    Challenge - be 14 Stone BY XMAS!

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