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  • FIRST POST
    • fatrab
    • By fatrab 2nd Jan 18, 9:22 AM
    • 904Posts
    • 3,213Thanks
    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):
    Jan - Pay HMRC - £1017 - PAID 25/01/18 (page 5)
    Feb - Pay off credit card 1 - £978.80 - PAID 28/02/18 (page 12)
    March - Build up £2000 safety fund - ACHIEVED 12/03/18 (page 14)
    May - Tax rebate - £857 mileage relief allowance + £179.20 rebate (page 21)
    June - Re-mortgage - Approved 05/06/18
    July - Pay home insurance IN FULL - PAID IN FULL 29/06/18 (page 25)
    July - Cancel mobile contract for tablet - CANCELLED 27/03/18 (page 16)
    September - Pay TV licence IN FULL
    October - Pay car insurance IN FULL - PAID IN FULL 03/09/18 (page 28)
    October - Pay car tax (big car) - CANCELLED 09/05/18 (page 21)
    October - Cancel my mobile - CANCELLED 20/04/18 (page 19)
    October - Renegotiate TV/Broadband/Phone package - SORTED 11/09/18 (page 28)
    Pay off car finance - CAR SOLD 08/05/18 (page 21)
    Pay off loan - PAID 17/05/18 (page 22)
    Overpay mortgage if possible - First overpayment 25/5/18 (page 23)
    From October - Overpay £483/month to mortgage + £17/month extra to remaining debts

    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 10 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 September:
    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................ 2480
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 2480

    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............................ 60
    TV Licence.............................. 12.34
    Satellite/Cable TV...................... 34
    Internet Services....................... 0
    Groceries etc. ......................... 0
    Clothing................................ 0
    Petrol/diesel........................... 200
    Road tax................................ 27
    Car Insurance........................... 30
    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
    Slimming W.............................. 21.67
    Netflix................................. 7.99
    Total monthly expenses.................. 1571.38


    Assets

    Cash.................................... 2750
    House value (Gross)..................... 138000
    Shares and bonds........................ 0
    Car(s).................................. 2000
    Other assets............................ 0
    Total Assets............................ 142750


    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 58621....(800.3)....3.14
    Total secured & HP debts...... 58621.....-.........-

    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    CC.............................3190......110...... .0
    Total unsecured debts..........3190......110.......-


    Monthly Budget Summary

    Total monthly income.................... 2,480
    Expenses (including HP & secured debts). 1,571.38
    Available for debt repayments........... 908.62
    Monthly UNsecured debt repayments....... 110
    Amount left after debt repayments....... 798.62

    Personal Balance Sheet Summary
    Total assets (things you own)........... 142,750
    Total HP & Secured debt................. -58,621
    Total Unsecured debt.................... -3,190
    Net Assets.............................. 80,939

    Created using the SOA calculator at www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using other browser.
    Last edited by fatrab; 12-09-2018 at 12:19 PM.
Page 23
    • fatrab
    • By fatrab 17th May 18, 7:28 AM
    • 904 Posts
    • 3,213 Thanks
    fatrab
    So after a lot of deliberation I decided to transfer the money to my loan

    The plan going forwards looks like this:

    On payday each month:
    Transfer 10% of earnings into emergency fund
    Everything over £2000 remaining in current account will be paid off the mortgage

    Mrs fatrab's house will be on the market by Monday so hopefully it sells quickly then we can focus on getting everything else tidied up financially.

    By the end of the year we should be solely focussed on overpaying the mortgage.
    Last edited by fatrab; 17-05-2018 at 7:34 AM.
    You can have results or excuses, but not both.
    Challenge - be 14 Stone BY XMAS!

    • onedaysomeday
    • By onedaysomeday 17th May 18, 8:10 AM
    • 560 Posts
    • 817 Thanks
    onedaysomeday
    I have been quietly following - great news, congratulations
    Just trying to make up for past mistakes and work towards the future I want
    • Egon76
    • By Egon76 17th May 18, 12:47 PM
    • 31 Posts
    • 81 Thanks
    Egon76
    I was going to suggest to pay off the loan. In the meantime you already made your decision. Yes, the mortgage has higher interest. But the loan would always have been hanging over your head. Now you can concentrate on the mortgage.

    Have you heared about Dave Ramsay and the snowball effect? Interesting read and I believe it does work for a lot of people.

    I like reading about your ideas and changes you make in your life to get where you want to be. Makes all sense to me and gives me some extra ideas. Mr. Egon76 likes the idea but isn't all the way on board for the journey. He doesn't like to make concessions on some comforts.

    I am debating to write a journal myself. Just to stop us from falling of the wagon (more often then not right now). Also, as we life in Germany, I have to research all the ideas I am getting from the Moneysavingexpert-Board to see if they can be transferred. Something to sleep over....
    • fatrab
    • By fatrab 18th May 18, 8:06 AM
    • 904 Posts
    • 3,213 Thanks
    fatrab
    Hi Egon76, yes I did read up on the snowball method. There are 2 ways to look at it though, either pay the smallest debt first or pay the debt with the highest interest first, I prefer the latter.


    You should definitely start a diary, I found it the single best tool for advice and recognition of my bad choices! Keeping a spending diary was also a great help to me.


    It's not easy when your partner isn't fully on board, I have the same problem. Mrs fatrab doesn't even like to talk about financial topics.


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

    • jwil
    • By jwil 18th May 18, 12:30 PM
    • 8,973 Posts
    • 28,291 Thanks
    jwil
    Congratulations on clearing the loan
    "If you can dream it, you can do it". Walt Disney
    • Egon76
    • By Egon76 18th May 18, 12:57 PM
    • 31 Posts
    • 81 Thanks
    Egon76
    Hi Egon76, yes I did read up on the snowball method. There are 2 ways to look at it though, either pay the smallest debt first or pay the debt with the highest interest first, I prefer the latter.
    Originally posted by fatrab

    I do prefer the latter as well. It does come down to preference, does it not?

    You should definitely start a diary, I found it the single best tool for advice and recognition of my bad choices! Keeping a spending diary was also a great help to me.
    Originally posted by fatrab


    A spending diary we already have. Mr. Egon76 is also mostly behind it. DS1 and DS2 believe money just comes out the bank. *yikes*

    It's not easy when your partner isn't fully on board, I have the same problem. Mrs fatrab doesn't even like to talk about financial topics.
    Originally posted by fatrab

    Oh goodie, Mr. Egon76 will "discuss" it with me. It goes along the lines of me telling him what I think we should do and him saying: "Sure, do what is best." I think I can be glad he is sort of contributing...
    Mortgage 1 house € 102159.45 (Aug 2018) / € 135000 Overpayment 2019 saved € 6166 / € 6750
    Mortgage 2 house € 77337.02 (June 2018) / € 85000
    Renovation credit € 34040.66 (Aug 2018) / € 50000 Overpayment 2019 saved € 0 / € 2500
    Bathroom renovation saving € 0
    Mortgage flat € 97304.93 (Dec 2017) / € 113000
    • fatrab
    • By fatrab 18th May 18, 5:03 PM
    • 904 Posts
    • 3,213 Thanks
    fatrab
    A pleasant surprise to end the week, the refund for the car tax came through. £170.

    Have a great weekend
    You can have results or excuses, but not both.
    Challenge - be 14 Stone BY XMAS!

    • JoJoC
    • By JoJoC 18th May 18, 5:21 PM
    • 1,128 Posts
    • 6,894 Thanks
    JoJoC
    Hooray! I love surprise money!!
    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*
    • Egon76
    • By Egon76 18th May 18, 10:40 PM
    • 31 Posts
    • 81 Thanks
    Egon76
    Great surprise
    Mortgage 1 house € 102159.45 (Aug 2018) / € 135000 Overpayment 2019 saved € 6166 / € 6750
    Mortgage 2 house € 77337.02 (June 2018) / € 85000
    Renovation credit € 34040.66 (Aug 2018) / € 50000 Overpayment 2019 saved € 0 / € 2500
    Bathroom renovation saving € 0
    Mortgage flat € 97304.93 (Dec 2017) / € 113000
    • fatrab
    • By fatrab 21st May 18, 2:45 PM
    • 904 Posts
    • 3,213 Thanks
    fatrab
    A new waiting game begins today in the fatrab household.

    Mrs fatrab's house goes on the market today. We were round there yesterday just making sure that the place is presentable and we're pleasantly surprised at how well the last lodger has looked after things in general. I had a few car-loads of things to take to the local recycling centre but all in all it's good to go. Fingers crossed yet again....

    In other news, I had been putting the feelers out for a small, cheap to run, SUV/crossover type vehicle. We'd narrowed it down to a choice of 2 models. After looking at several of each model in local garages, none of which were of an acceptable standard, I learned of a potentially suitable vehicle in a small independent garage in Glasgow. We toddled along to see it and it turned out to be exactly what we're after so without too much haggling or hassle, no high pressure sales talk or gimmicks, Mrs fatrab has bought it.

    Unfortunately the weekend did not pass without a little hiccup. I had a friend-of-a-friend out to look at some overgrowth in the back garden with the intention of killing it off; we've got an 8ft high boundary wall and there's Ivy and a few other things growing over it. But on closer inspection the plants have grown into the brickwork to such an extent that the wall isn't safe. It has large coping stones on the top and if one of them was to fall god only knows what damage it could do. So we're going to clear away as much of the overgrowth as possible this weekend, kill off the Ivy etc as best possible then look at having the wall repaired/rebuilt. It's a shared wall between 3 properties but the damaged area seems to be localised to my garden only, even though the overgrowth originates from the property on the other side


    I think this is going to cost a few quid to put right.
    You can have results or excuses, but not both.
    Challenge - be 14 Stone BY XMAS!

    • JoJoC
    • By JoJoC 21st May 18, 3:25 PM
    • 1,128 Posts
    • 6,894 Thanks
    JoJoC
    Pain about the costly wall issues, but you're in a good position to put it right now that you've got your finances by the reins. It's a good time of year to get it sorted too - means you can do some of the work when it's nice over the summer perhaps?

    There's always something crops up, and I suppose it's what you do with it that's important. I have a funny feeling that my husband's car is going to go on the blink (a £500 runaround that's likely on its last legs) so that's our next focus - to make sure we have enough cash saved up to potentially replace that this year.
    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*
    • LegBeforeWicket
    • By LegBeforeWicket 21st May 18, 6:28 PM
    • 43 Posts
    • 164 Thanks
    LegBeforeWicket
    Hi Rab!


    Wow, I disappear for a wee while and when I get back you've had several big developments. How wonderful! I'm not surprised you have, though. What attracted me to your diary in the first place was that your determination to succeed and turn your financial life around shined so clear in your posts, and it's this planning and your well thought actions that have created the framework necessary for success. The rewards you are reaping are a product of your hard work, so well done.



    The wall issue is unfortunate and one that anyone could do without, so I understand any disappointment or anger at a potential extra expense. I know you know this but I think it's worth saying anyway; look at how much better of a position you are in now to tackle this head on. Not only do you have an emergency fund as well as having freed up income by not having to pay your loan etc., but when it comes to tackling any repairs then I'm sure you will come up with the least painful and the most cost effective way of dealing with it. Life will always throw these curveballs at us but now you have the strength and tools to knock them out the park, which is great.


    Keep up the good work, mate.
    Debt at LBM: £9448.71 Current debt: £7158.29 (24.24% paid so far)
    Weight loss to date: 25.3 lbs (Currently 114.2 88.9 lbs above a 'normal' BMI)
    • fatrab
    • By fatrab 23rd May 18, 1:44 PM
    • 904 Posts
    • 3,213 Thanks
    fatrab
    Time for a right good kick up the @r$e.

    I've fallen off the wagon this week. The weight loss has plateaued, I've eaten out twice and not had any NSD's this week yet. So I need to make a meal plan for the rest of the week, go shopping tonight and then not spend any more money until Friday, which is payday - woohoo!

    I half-expected this to happen as I've got a week off next week to get on with the decorating and garden work if the weather is nice, so I'm running down the food stocks at my holiday home working accommodation. I've just been buying bits and bobs to make up meals/snacks. The highlight of this week though will be the first overpayment to the mortgage in a long time!

    We have a large country park on our doorstep so I think the next week will be lots of walks and maybe a picnic or 2, but the focus will be on healthy eating.

    We heard from the estate agent yesterday, Mrs fatrab's house won't be on the market until Friday or Monday as the home report hasn't been done yet so a little delay to her plan there. I'm actually looking forward to a quiet June as we're on financial lockdown until the house sells. It'll be food and fuel only until we know what's happening.

    2 sleeps til payday.
    You can have results or excuses, but not both.
    Challenge - be 14 Stone BY XMAS!

    • jwil
    • By jwil 24th May 18, 4:44 PM
    • 8,973 Posts
    • 28,291 Thanks
    jwil
    Have a good week off
    "If you can dream it, you can do it". Walt Disney
    • LegBeforeWicket
    • By LegBeforeWicket 24th May 18, 5:02 PM
    • 43 Posts
    • 164 Thanks
    LegBeforeWicket
    Hi Rab,


    Excellent news about the mortgage overpayment, what a lovely milestone. Well done also for being on top of the food cupboard and making sure that as little as possible will go to waste.



    As for the weight loss. Plateaus are quite normal, but as long as you are creating a calorie deficit then you will lose weight. Have you thought about plotting your weight loss on a graph so that you can see the downward trend? I'm signed up to a free site called trendweight for this very purpose. My data tracks automatically via a smart scale I was bought as a gift some time ago, but I believe you can also add the data manually. That said, it's probably easier to get a spot of graph paper and plot the changes yourself. The point I'm making is that if you trust the numbers then you will get to where you want to be.


    Is the forecast looking decent for next week's efforts at home?
    Debt at LBM: £9448.71 Current debt: £7158.29 (24.24% paid so far)
    Weight loss to date: 25.3 lbs (Currently 114.2 88.9 lbs above a 'normal' BMI)
    • fatrab
    • By fatrab 25th May 18, 7:45 AM
    • 904 Posts
    • 3,213 Thanks
    fatrab
    Well done also for being on top of the food cupboard and making sure that as little as possible will go to waste.
    Originally posted by LegBeforeWicket
    One of the first threads I got involved with on here was the "What small moneysaving things will you do this week" thread, and vey quickly I realised that reducing waste was a big thing. I couldn't tell you the last time I threw anything out that was past it's best or out of date. Everything I buy gets eaten in its entirety. It's a good habit to get into

    As for the weight loss. Plateaus are quite normal, but as long as you are creating a calorie deficit then you will lose weight. Have you thought about plotting your weight loss on a graph so that you can see the downward trend? I'm signed up to a free site called trendweight for this very purpose. My data tracks automatically via a smart scale I was bought as a gift some time ago, but I believe you can also add the data manually. That said, it's probably easier to get a spot of graph paper and plot the changes yourself. The point I'm making is that if you trust the numbers then you will get to where you want to be.
    Originally posted by LegBeforeWicket
    I'm not going to make feeble excuses, honesty is the best policy and all that jazz - I've been working longer hours and some weekends over the past 2 months so my eating habits, and my meal planning, has taken a hit. I'm determined to be 15st by the end of June. I've got a little spread sheet which shows my weight and BMI but it's not been a pretty picture since the end of March.

    Is the forecast looking decent for next week's efforts at home?
    Originally posted by LegBeforeWicket
    Yes! The weekend is to be nice, so the garden will be tackled for a few hours each day and the decorating can wait for a rainy day! I've got some plastering to touch up and then the walls to sand so plenty to keep me busy.

    Will also need to plan a visit to the chiropractor while I'm off as my back is twinging a little.

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

    • fatrab
    • By fatrab 25th May 18, 8:04 AM
    • 904 Posts
    • 3,213 Thanks
    fatrab
    £1670.20 overpaid to mortgage this morning
    £50 added to emergency fund
    £200 transferred to Mrs fatrab to help her with her plan.

    I'm off for a weekend of gardening, cleaning the cars, decorating and long walks in the countryside. Middle of next week we're heading up north to see family and spend time at the wee flat up in the highlands.

    I probably won't be on here very much over the next week so keep moneysaving!!!
    You can have results or excuses, but not both.
    Challenge - be 14 Stone BY XMAS!

    • JoJoC
    • By JoJoC 25th May 18, 9:47 AM
    • 1,128 Posts
    • 6,894 Thanks
    JoJoC
    Wow! What an overpayment! I was planning to commend you on the £200-or-so overpayment that I'd assumed you'd be making but £1,670.20 is amazing! Well done.

    Enjoy your week off with the family.
    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*
    • Storm89
    • By Storm89 25th May 18, 9:55 AM
    • 174 Posts
    • 1,389 Thanks
    Storm89
    Your weight loss goals are similar to my husband rab. Hope you have a lovely time in the flat and visiting family , i remember being envious of the area the flat was in when you mentioned it before. That's a huge mortgage overpayment
    • fatrab
    • By fatrab 25th May 18, 10:46 AM
    • 904 Posts
    • 3,213 Thanks
    fatrab
    Wow! What an overpayment! I was planning to commend you on the £200-or-so overpayment that I'd assumed you'd be making but £1,670.20 is amazing! Well done.

    Enjoy your week off with the family.
    Originally posted by JoJoC
    Thanks! I knew I was going to have around £1000 but with the extra overtime I did last month I decided that it was money that I wouldn't have had anyway. I might have left myself a little bit short but it removes the temptation to fritter it on rubbish that I don't need.


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

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