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  • FIRST POST
    • canaryfeather
    • By canaryfeather 9th Aug 18, 7:44 AM
    • 9Posts
    • 13Thanks
    canaryfeather
    The Start of a New Adventure
    • #1
    • 9th Aug 18, 7:44 AM
    The Start of a New Adventure 9th Aug 18 at 7:44 AM
    I'm canaryfeather, a 25 year old who has had her eye on buying a small starter home in the city I work in for the last year. I found a tiny one bed house within walking distance from my work and yesterday the exchange finally went ahead! Completion will take place in just over 2 weeks and I thought that now was a better time than any to start my MFW diary.

    I'll be taking out a mortgage for 30,000, and would really like to be mortgage free (or at least mortgage neutral) by the time I'm 30. So that's where I think this diary comes in - Hopefully it'll keep me accountable and help me stop unnecessary spending. (Which I can be guilty of!)

    I look forward to joining you all on your adventures too.

    Let me begin by asking a question: If you could give 3 tips to a MFW newbie at the beginning of their journey to house ownership/money saving what would they be?
Page 1
    • bexster1975
    • By bexster1975 9th Aug 18, 8:16 AM
    • 1,227 Posts
    • 5,756 Thanks
    bexster1975
    • #2
    • 9th Aug 18, 8:16 AM
    • #2
    • 9th Aug 18, 8:16 AM
    Hello, congratulations and welcome

    That is a lovely mortgage size. As for tips:

    Do you keep a spending diary? Just a notebook for one month recording everything you spend. Just try to live like you normally do, but write every, single thing down. Knowing where you " waste" money will help you stop it.

    When you get a wage rise, add it to your savings/investments/overpayments pot as appropriate. This made a huge difference to me.

    Cooking stuff from scratch/ batch cooking is my final one. Groceries are almost always as easy win in terms of cost cutting. If you have Lidl/Aldi near you and haven't tried them you should. Further savings to be had there.

    Good luck

    Bexster
    • doingitanyway
    • By doingitanyway 9th Aug 18, 9:00 AM
    • 3,229 Posts
    • 17,190 Thanks
    doingitanyway
    • #3
    • 9th Aug 18, 9:00 AM
    • #3
    • 9th Aug 18, 9:00 AM
    Smart girl being able to walk to work from home is such a great choice. Time, money, exercise, stress. All covered. I wish you luck with your journey.
    JANUARY 2016/SECURED DEBT=24,822/March 2018=0 DEBT FREE 23/03/18
    MORTGAGE FREE 25/07/16
    • dark^knight
    • By dark^knight 9th Aug 18, 10:55 AM
    • 470 Posts
    • 961 Thanks
    dark^knight
    • #4
    • 9th Aug 18, 10:55 AM
    • #4
    • 9th Aug 18, 10:55 AM
    Hi canaryfeather,

    Welcome to mfw and good luck on your journey.

    The three tips:
    1, Plan, plan, plan - Plan when you want to be mortgage free by. You can be ambitious, but still realistic.
    2, Budget - work out your income, your expenses and then work out how much you can afford to overpay.
    3, Cut your costs wherever you can...and if possible increase your income.
    Last edited by dark^knight; 09-08-2018 at 10:58 AM.
    Aiming to be mortgage free by Dec 2018.
    • julicorn
    • By julicorn 9th Aug 18, 11:30 AM
    • 208 Posts
    • 828 Thanks
    julicorn
    • #5
    • 9th Aug 18, 11:30 AM
    • #5
    • 9th Aug 18, 11:30 AM
    Happy shiny new diary!

    My advice is pretty much the same as above.

    Set concrete goals that are achievable, as well as maybe some 'dream/stretch goals'. Those can be hugely motivating. Small short term goals help as well, as this is more of a marathon rather than a sprint (although your mortgage is nice and small, so I'm sure you'll have it paid off in no time x)

    Budget, budget, budget. I use YNAB for this, and it's crazy useful and has made such a difference for me and the friends of mine that use it.

    Always think about how you can increase your income and decrease your outgoings. Also, when you get pay rises, resist the temptation of lifestyle inflation as much as possible, but rather put the 'extra' amount into your mortgage or into savings.


    Best of luck, and I can't wait to see how you get on!
    Original mortgage: December 2017, 203,495
    MFW start: April 2018, 201,800
    Current: 193,300
    • canaryfeather
    • By canaryfeather 9th Aug 18, 12:29 PM
    • 9 Posts
    • 13 Thanks
    canaryfeather
    • #6
    • 9th Aug 18, 12:29 PM
    • #6
    • 9th Aug 18, 12:29 PM
    Please see my SOA below:
    [font=courier new]Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 1
    Number of children in household......... 0
    Number of cars owned.................... 0

    Monthly Income Details

    Monthly income after tax................ 1522
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1522


    Monthly Expense Details

    Mortgage................................ 250
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 100
    Electricity............................. 30
    Gas..................................... 30
    Oil..................................... 0
    Water rates............................. 25
    Telephone (land line)................... 0
    Mobile phone............................ 9
    TV Licence.............................. 12.5
    Satellite/Cable TV...................... 0
    Internet Services....................... 20
    Groceries etc. ......................... 160
    Clothing................................ 10
    Petrol/diesel........................... 0
    Road tax................................ 0
    Car Insurance........................... 0
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 30
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 10
    Contents insurance...................... 7
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 20
    Haircuts................................ 10
    Entertainment........................... 200
    Holiday................................. 150
    Emergency fund.......................... 0
    Total monthly expenses.................. 1073.5



    Assets

    Cash.................................... 7000
    House value (Gross)..................... 135000
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0
    Total Assets............................ 142000



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 30000....(250)......2.5
    Total secured & HP debts...... 30000.....-.........-


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



    Monthly Budget Summary

    Total monthly income.................... 1,522
    Expenses (including HP & secured debts). 1,073.5
    Available for debt repayments........... 448.5
    Monthly UNsecured debt repayments....... 0
    Amount left after debt repayments....... 448.5


    Personal Balance Sheet Summary
    Total assets (things you own)........... 142,000
    Total HP & Secured debt................. -30,000
    Total Unsecured debt.................... -0
    Net Assets.............................. 112,000


    Comments

    I also have 150 going into my pension each month via salary sacrifice. I'm also keen to travel, so have allocated some money each month in order to achieve this aim.
    • bexster1975
    • By bexster1975 9th Aug 18, 6:12 PM
    • 1,227 Posts
    • 5,756 Thanks
    bexster1975
    • #7
    • 9th Aug 18, 6:12 PM
    • #7
    • 9th Aug 18, 6:12 PM
    So here's an interesting thought. If you paid 448.50 a month off your mortgage, assuming an interest rate of 3.5% ( it was the default) you will be clear in under 5 years.

    Bexster
    • bexster1975
    • By bexster1975 9th Aug 18, 6:15 PM
    • 1,227 Posts
    • 5,756 Thanks
    bexster1975
    • #8
    • 9th Aug 18, 6:15 PM
    • #8
    • 9th Aug 18, 6:15 PM
    Need to check you don't have ERC on the mortgage.

    Bexster
    • canaryfeather
    • By canaryfeather 9th Aug 18, 6:30 PM
    • 9 Posts
    • 13 Thanks
    canaryfeather
    • #9
    • 9th Aug 18, 6:30 PM
    • #9
    • 9th Aug 18, 6:30 PM
    Need to check you don't have ERC on the mortgage.
    Originally posted by bexster1975
    Good question. I have a two year fix so should be able to review the situation at that point.

    Smart girl being able to walk to work from home is such a great choice. Time, money, exercise, stress. All covered. I wish you luck with your journey.
    Originally posted by doingitanyway
    The time aspect was my main concern. At the moment I'm doing an hour commute each way, and I'll now have either a 10 minute cycle or 25 minute walk. Can't wait!
    • canaryfeather
    • By canaryfeather 9th Aug 18, 6:34 PM
    • 9 Posts
    • 13 Thanks
    canaryfeather
    Happy shiny new diary!

    My advice is pretty much the same as above.

    Set concrete goals that are achievable, as well as maybe some 'dream/stretch goals'. Those can be hugely motivating. Small short term goals help as well, as this is more of a marathon rather than a sprint (although your mortgage is nice and small, so I'm sure you'll have it paid off in no time x)

    Budget, budget, budget. I use YNAB for this, and it's crazy useful and has made such a difference for me and the friends of mine that use it.

    Always think about how you can increase your income and decrease your outgoings. Also, when you get pay rises, resist the temptation of lifestyle inflation as much as possible, but rather put the 'extra' amount into your mortgage or into savings.


    Best of luck, and I can't wait to see how you get on!
    Originally posted by julicorn
    Thank you so much for the advice. I haven't heard of YNAB before so I'll check that out!

    Hi canaryfeather,

    Welcome to mfw and good luck on your journey.

    The three tips:
    1, Plan, plan, plan - Plan when you want to be mortgage free by. You can be ambitious, but still realistic.
    2, Budget - work out your income, your expenses and then work out how much you can afford to overpay.
    3, Cut your costs wherever you can...and if possible increase your income.
    Originally posted by dark^knight
    Thanks. I feel like my plan is pretty ambitious, but I'm definitely dedicated to get there!

    Hello, congratulations and welcome

    That is a lovely mortgage size. As for tips:

    Do you keep a spending diary? Just a notebook for one month recording everything you spend. Just try to live like you normally do, but write every, single thing down. Knowing where you " waste" money will help you stop it.

    When you get a wage rise, add it to your savings/investments/overpayments pot as appropriate. This made a huge difference to me.

    Cooking stuff from scratch/ batch cooking is my final one. Groceries are almost always as easy win in terms of cost cutting. If you have Lidl/Aldi near you and haven't tried them you should. Further savings to be had there.

    Good luck

    Bexster
    Originally posted by bexster1975
    I don't currently keep a spending diary, but I'm definitely going to start. Pretty sure that a lot of my cash creeps away without me realising.

    I'll be living 5 minutes away from Aldi, Iceland and Home Bargains, and about 15 minutes away from Lidl so I'm pretty sure my grocery costs are going to reduce significantly!
    • julicorn
    • By julicorn 9th Aug 18, 7:04 PM
    • 208 Posts
    • 828 Thanks
    julicorn
    Good question. I have a two year fix so should be able to review the situation at that point.
    Originally posted by canaryfeather
    Just make sure you're allowed to make large overpayments, basically. Lots of providers charge you the ERC if you pay off more than 10% of your starting balance in any given year
    Original mortgage: December 2017, 203,495
    MFW start: April 2018, 201,800
    Current: 193,300
    • monz
    • By monz 10th Aug 18, 8:45 AM
    • 3,289 Posts
    • 10,782 Thanks
    monz
    Also groceries is a bit high! I have just me and my son and I spend not even 100 thanks to Aldi and farmfood and meal planning x
    Debt (1/9/14) 6,702.11 Debt free (30/11/2016)
    house pot for bobs after fees : 60
    car PCP - 788.96/11848.25 mum and dad 800/4,000 mortgage - 83,695 o/s currently - paid 468.54 (4.10 overpayment)
    boys bday 70/300 Christmas - 0/500
    • Niv
    • By Niv 10th Aug 18, 9:02 AM
    • 1,636 Posts
    • 1,412 Thanks
    Niv
    Hi canaryfeather. You are in a very fortunate position regarding mortgage size to income.


    My tips:


    You may not be allowed to overpay more than 10% so consider where you could save your surplus that pays more than your mortgage rate. If you earn more from saving interest you are better off doing that and making a bulk overpayment in the future. It is not as thrilling as overpaying monthly but it is more financially savvy if you are disciplined with those savings (i.e will pay the mortgage off with them and not do a round the world trip with it)


    Don't forget to have fun, glad to see an entertainment and holiday budget


    Save for anything you want for the house. Ebay etc is a good place to go for second hand furniture etc
    YNWA

    Target: Mortgage free by 58.
    • canaryfeather
    • By canaryfeather 11th Aug 18, 7:53 AM
    • 9 Posts
    • 13 Thanks
    canaryfeather
    Also groceries is a bit high! I have just me and my son and I spend not even 100 thanks to Aldi and farmfood and meal planning x
    Originally posted by monz
    I'm sure I'll be able to reduce that figure down then. At the moment I tend to buy food withe rout or on the day, as I live so far away from work I don't have time to cook. Hopefully that'll change once I have more time in the evening.

    Hi canaryfeather. You are in a very fortunate position regarding mortgage size to income.


    My tips:


    You may not be allowed to overpay more than 10% so consider where you could save your surplus that pays more than your mortgage rate. If you earn more from saving interest you are better off doing that and making a bulk overpayment in the future. It is not as thrilling as overpaying monthly but it is more financially savvy if you are disciplined with those savings (i.e will pay the mortgage off with them and not do a round the world trip with it)


    Don't forget to have fun, glad to see an entertainment and holiday budget


    Save for anything you want for the house. Ebay etc is a good place to go for second hand furniture etc
    Originally posted by Niv
    You're right - I cant overpay by more than 10% a year, so I'm hoping to keep the money in a savings account which has a similar rate of interest
    • canaryfeather
    • By canaryfeather 11th Aug 18, 7:56 AM
    • 9 Posts
    • 13 Thanks
    canaryfeather
    The week so far has gone well. I managed to meal prep on Sunday, so I had a few days of lunches that I could take into work during the week (I'm so aware that once I can do this everyday it'll be so much cheaper than buying food in the work canteen!)

    The weekend will be an expensive one as it's my best friend's hen do. Travel costs plus costs for whatever activities are planned are bound to add up, but hopefully I can keep costs to a minimum.
    • Autumn Sun
    • By Autumn Sun 11th Aug 18, 9:29 AM
    • 18 Posts
    • 22 Thanks
    Autumn Sun
    Hi Canaryfeather, I was in nearly the same position as you. 30k mortgage but with a 5 year fix. It is limited to 10% overpayment each year which I!!!8217;ve done. However I!!!8217;ve saved along side this. I spoke to my mortgage provider who gave me some ERC figures which to be honest were peanuts if I were to pay off at the end of this year (which will almost 3.5 years in.
    Go for it! It!!!8217;s a great feeling of achievement when you know you!!!8217;ve planned and worked hard !!!55357;!!!56832;!!!55357;!!!56832;
    Savings target to clear mortgage by 31/12/18 6,000/2,130
    • canaryfeather
    • By canaryfeather 11th Aug 18, 11:43 AM
    • 9 Posts
    • 13 Thanks
    canaryfeather
    Hi Canaryfeather, I was in nearly the same position as you. 30k mortgage but with a 5 year fix. It is limited to 10% overpayment each year which I!!!8217;ve done. However I!!!8217;ve saved along side this. I spoke to my mortgage provider who gave me some ERC figures which to be honest were peanuts if I were to pay off at the end of this year (which will almost 3.5 years in.
    Go for it! It!!!8217;s a great feeling of achievement when you know you!!!8217;ve planned and worked hard !!!55357;!!!56832;!!!55357;!!!56832;
    Originally posted by Autumn Sun
    Well done for the overpayment and being in a position to pay off your mortgage. Such an achievement!

    What did the early repayment charges look like for you? The ERCs is one of the reasons why I went for a 2 year fix rather than a 5 year.
    • Autumn Sun
    • By Autumn Sun 11th Aug 18, 12:48 PM
    • 18 Posts
    • 22 Thanks
    Autumn Sun
    I haven!!!8217;t got the figures to hand but 600 springs to mind! I need to contact them again in the next couple of months to get exact figures as I aim to pay it off on January 2nd 2019 which I hope will allow me to make use of next year!!!8217;s OP before they calculate the ERC.
    Savings target to clear mortgage by 31/12/18 6,000/2,130
    • canaryfeather
    • By canaryfeather 12th Aug 18, 9:06 PM
    • 9 Posts
    • 13 Thanks
    canaryfeather
    I can't believe it's the end of the weekend already! The hen was cheaper than I hoped - 40 travelling costs and 30 expenses for activities. Still not cheap, but the bride had a fantastic time and some great memories were made so it was worth it.

    Popped to tesco on my way home and made the most of the Sunday yellow stickers. I spent the afternoon cooking a batch of veggie mince, using all the leftover veg in my fridge so I have my dinner and lunches sorted until at least Thursday for the grand total of 12. I can definitely see how home cooking can be a real money saver!
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