Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • fatrab
    • By fatrab 2nd Jan 18, 9:22 AM
    • 833Posts
    • 1,849Thanks
    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:

    Year 1 Timeline (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 - Wheels in motion 26/04/18
    July - Pay home insurance IN FULL
    July - Cancel mobile contract for tablet - CANCELLED 27/03/18 (page 16)
    September - Pay TV licence IN FULL
    October - Pay car insurance IN FULL
    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
    Throughout year - Overpay car finance - CAR SOLD 08/05/18 (page 21)

    Year 2:
    January - Cancel Mrs' mobile
    Pay off car finance - CAR SOLD 08/05/18 (page 21)
    Pay off loan - PAID 17/05/18 (page 22)
    Continue to build up the safety fund

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

    Years 4 & 5:
    Overpay mortgage. I have 7 years and 4 months remaining at the moment but I have been making regular 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.

    From May 2018 onwards:

    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................ 3408.83
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 234.87
    Total monthly income.................... 3643.7


    Monthly Expense Details
    Mortgage................................ 800.3
    Secured/HP loan repayments.............. 0
    Rent.................................... 250
    Management charge (leasehold property).. 0
    Council tax............................. 145.8
    Electricity............................. 37.27
    Gas..................................... 40
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 10
    Mobile phone............................ 72.46
    TV Licence.............................. 0
    Satellite/Cable TV...................... 14
    Internet Services....................... 10
    Groceries etc. ......................... 100
    Clothing................................ 0
    Petrol/diesel........................... 160
    Road tax................................ 0
    Car Insurance........................... 30
    Car maintenance (including MOT)......... 50
    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..................... 7.67
    Contents insurance...................... 0
    Life assurance ......................... 6.81
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 50
    Total monthly expenses.................. 1784.31


    Assets

    Cash.................................... 1252.73
    House value (Gross)..................... 128000
    Shares and bonds........................ 0
    Car(s).................................. 4000
    Other assets............................ 0
    Total Assets............................ 133252.73


    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 62832....(800.3)....3.14
    Total secured & HP debts...... 62832.....-.........-



    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Credit card....................3630......110.......0
    Total unsecured debts..........3630......110.......-


    Monthly Budget Summary

    Total monthly income.................... 3,643.7
    Expenses (including HP & secured debts). 1,784.31
    Available for debt repayments........... 1,859.39
    Monthly UNsecured debt repayments....... 110
    Amount left after debt repayments....... 1,749.39



    Personal Balance Sheet Summary
    Total assets (things you own)........... 133,252.73
    Total HP & Secured debt................. -62,832
    Total Unsecured debt.................... -3,630
    Net Assets.............................. 66,790.73

    Created using the SOA calculator at www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using other browser.
    Last edited by fatrab; 17-05-2018 at 6:54 AM.
Page 23
    • fatrab
    • By fatrab 17th May 18, 7:28 AM
    • 833 Posts
    • 1,849 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.
    May's targets - Lose 1 stone - 6lbs off, 18/31 AFDs, 12/18 lunches.
    37 x 2 coins (#32) - Wannabe debt free by Dec 2022
    • onedaysomeday
    • By onedaysomeday 17th May 18, 8:10 AM
    • 395 Posts
    • 603 Thanks
    onedaysomeday
    I have been quietly following - great news, congratulations
    Debt paid 1780.76 / 7180.59 (24%)
    CAR SERVICE CHALLENGE: 21/154 BY 5/6/18 (13.5 %)
    EMERGENCY FUND: 0 SAVINGS POTS: 0
    • Egon76
    • By Egon76 17th May 18, 12:47 PM
    • 10 Posts
    • 15 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
    • 833 Posts
    • 1,849 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.
    May's targets - Lose 1 stone - 6lbs off, 18/31 AFDs, 12/18 lunches.
    37 x 2 coins (#32) - Wannabe debt free by Dec 2022
    • jwil
    • By jwil 18th May 18, 12:30 PM
    • 8,503 Posts
    • 25,992 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
    • 10 Posts
    • 15 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 flat / 113000
    Mortgage 1 house 110404.72 / 135000
    Mortgage 2 house 77443.84 / 85000
    Renovation credit 37559.12 / 50000
    • fatrab
    • By fatrab 18th May 18, 5:03 PM
    • 833 Posts
    • 1,849 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.
    May's targets - Lose 1 stone - 6lbs off, 18/31 AFDs, 12/18 lunches.
    37 x 2 coins (#32) - Wannabe debt free by Dec 2022
    • JoJoC
    • By JoJoC 18th May 18, 5:21 PM
    • 1,769 Posts
    • 6,452 Thanks
    JoJoC
    Hooray! I love surprise money!!
    CC1: 4601.14/ 5031.14 (10% paid off, 480) | CC2:3407/ 3807 (12% paid off, 450) | Loan: 10,788.72/ 15,000((28% paid off, 4211.28))

    July debt total: 23,838.14 | New debt total: 18,796.86 | Total debt paid: 5,141.28 (22%)
    *My debt busting and savings diary*
    • Egon76
    • By Egon76 18th May 18, 10:40 PM
    • 10 Posts
    • 15 Thanks
    Egon76
    Great surprise
    Mortgage flat / 113000
    Mortgage 1 house 110404.72 / 135000
    Mortgage 2 house 77443.84 / 85000
    Renovation credit 37559.12 / 50000
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,098Posts Today

5,864Users online

Martin's Twitter
  • It's the start of mini MSE's half term. In order to be the best daddy possible, Im stopping work and going off line? https://t.co/kwjvtd75YU

  • RT @shellsince1982: @MartinSLewis thanx to your email I have just saved myself £222 by taking a SIM only deal for £7.50 a month and keeping?

  • Today's Friday twitter poll: An important question, building on yesterday's important discussions: Which is the best bit of the pizza...

  • Follow Martin