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  • FIRST POST
    • ElmoR
    • By ElmoR 31st Dec 18, 10:58 AM
    • 46Posts
    • 143Thanks
    ElmoR
    Staying on track to be MF and ready to support my daughter at 18
    • #1
    • 31st Dec 18, 10:58 AM
    Staying on track to be MF and ready to support my daughter at 18 31st Dec 18 at 10:58 AM
    I've been an occasional lurker here, taking inspiration from everyone's successes against their struggles to pay off debts and mortgages. My circumstances changed for the worst financially in 2014 and it needed a complete overhaul. I decided a long time ago though that I wanted to be MF by the time my daughter became 18 so that I could help her financially in whatever route she decided to take after school. For me, loans etc have always been the 'never never' and I would not have gone to university if it involved loans or fees, luckily I snuck through before the grant system was dismantled. I don't want my daughter to feel weighed down by those debts should she decide to go to uni. I want to be able to help her.


    My mortgage was £110k originally in 2010, I was able to pay a big chunk off after divorce bringing it down considerably but, at the same time, the dual incomes towards the household bills obviously dropped dramatically too. I still made overpayments every month by living carefully, but not as frugally, as I could have maybe. Now I have 9 years left on my mortgage of £40k.



    So now it's the last stage. My daughter is 18 in 3 years time and I've used the mortgage overpayment calculator to work out how much to pay each month to be MF in that time...it'll be tight but will be worth it, I know
Page 2
    • ElmoR
    • By ElmoR 7th Jan 19, 8:15 PM
    • 46 Posts
    • 143 Thanks
    ElmoR
    Thanks Moji and Cheery for your replies.


    I do indeed understand how the uni loans work and it only being worthwhile paying the tuition fees if you expect to do a degree that earns big time once you graduate, like medicine for example.
    I'd like to help her with living costs, getting a foot on the property market ladder, that kind of thing.
    Do you know, I didn't subscribe to my own thread! Duh. Not really a technical whizz at online stuff. It took me weeks to work out some of the common abbreviations used too! And now I can't find the cool cartoon emojis either, arrgghhhhhhhh.
    2018 £40,000 and 2027 M end date
    Aiming to reduce to, using OPs: 2019 £30k, 2020 £20k, 2021 £10K, 2022 MF
    • Cheery Daff
    • By Cheery Daff 7th Jan 19, 9:22 PM
    • 8,618 Posts
    • 43,837 Thanks
    Cheery Daff
    I often forget to subscribe to my own thread whenever I start a new one always takes me a while of scrolling through other people's to find it

    It will be a great help to your daughter if you can help her with living costs etc I work in a university and so many of our students are working 20+ hour weeks on top of full time courses, often with non-understanding bosses rescheduling shifts at short notice. Anything you can do to limit that will be extremely helpful I'm sure. And of course she'll have a sound grounding in budgetting and frugal living which will help her too, hooray!
    Mortgage overpayments £1200 in 2018, £153.58 in 2019
    • ElmoR
    • By ElmoR 8th Jan 19, 6:36 PM
    • 46 Posts
    • 143 Thanks
    ElmoR
    Absolutely Cheery Daff


    Thirty odd years ago (ahem), I was one of those students. Lucky enough to still be in a cohort who had a grant but it was no where near enough to live on, so you worked part time to live. Quite a juggling act.

    Another NSD, on a roll of two days now...
    Starting to think about how I can save another few hundred for an additional OP this month. The problem is that I worry when I don't have available cash, even though there are a couple of squirrel emergency stashes. It's a security thing that probably goes back to those student hardship days.
    2018 £40,000 and 2027 M end date
    Aiming to reduce to, using OPs: 2019 £30k, 2020 £20k, 2021 £10K, 2022 MF
    • A Frayed Knot
    • By A Frayed Knot 8th Jan 19, 10:32 PM
    • 2,720 Posts
    • 12,026 Thanks
    A Frayed Knot
    Absolutely Cheery Daff
    Another NSD, on a roll of two days now...
    Originally posted by ElmoR

    Fantastic - well done Looking forward to seeing that total saved at the end of the week
    Always have 00.00 at the end of your mortgage and one day it will all be 0's
    Mortgage Free 21.12.18
    Just 11 Years 3 months early
    MFMarch 30 Re/M Oct 23 Target -Dec 19
    O/P's 2014/£4000, 2015/£6294.69, 2016/£3186.80, 2017 £4068.97

    • ElmoR
    • By ElmoR 9th Jan 19, 8:10 PM
    • 46 Posts
    • 143 Thanks
    ElmoR
    Darnit!! Was working in another building all day and had no time to get back to my own for soup. Ended up having to buy a baguette or lose out on lunch. At least they provided free coffee at the event.
    Tomorrow is a free lunch too...
    The disappointment I felt buying that baguette was beyond my usual level of disappointment for anything much - does this mean I now have the frugality bug??
    2018 £40,000 and 2027 M end date
    Aiming to reduce to, using OPs: 2019 £30k, 2020 £20k, 2021 £10K, 2022 MF
    • A Frayed Knot
    • By A Frayed Knot 9th Jan 19, 8:20 PM
    • 2,720 Posts
    • 12,026 Thanks
    A Frayed Knot
    Ughh - a small set back, you still managed to save on the coffee though, as it was free


    so how many coffee's x £price = £savings
    You still managed to save something and will again tomorrow


    You've got the bug, told you it was addictive
    Always have 00.00 at the end of your mortgage and one day it will all be 0's
    Mortgage Free 21.12.18
    Just 11 Years 3 months early
    MFMarch 30 Re/M Oct 23 Target -Dec 19
    O/P's 2014/£4000, 2015/£6294.69, 2016/£3186.80, 2017 £4068.97

    • ElmoR
    • By ElmoR 10th Jan 19, 7:51 PM
    • 46 Posts
    • 143 Thanks
    ElmoR
    Thanks Frayed Knot, that's a good way to help stay motivated too.
    I did the maths so far. Embarrassingly, I spend between maybe £5 and £7 a day on food/drinks at work. Let's say £6 average. It was another super NSD with a free lunch and coffee (though I had to sit through a dull 2 hour meeting to get it, so not totally free). I spent £3 on the baguette yesterday. So £3 against a normal spend of £24 for 4 days so far. I can see how that would mount up a month to an extra £100+ O/P
    Miracle of miracles today too - no charge at the dentist. Since the problem is from a filling that was done a short while ago, it counts as still fixing that same problem on the charges scale.
    2018 £40,000 and 2027 M end date
    Aiming to reduce to, using OPs: 2019 £30k, 2020 £20k, 2021 £10K, 2022 MF
    • A Frayed Knot
    • By A Frayed Knot 10th Jan 19, 11:16 PM
    • 2,720 Posts
    • 12,026 Thanks
    A Frayed Knot
    Great savings there and that's only your work spends, next you'll be onto your utilities, travel, food, batch cooking etc, etc,

    Now for the exciting part - use this calculator link
    http://www.whatsthecost.com/snowball.aspx

    Enter your details and just see, what your monthly o/p would do to your mortgage,
    More to the point - How much quicker you will be MF

    Play about with o/p's eg £80? £100? or even more, every month.
    Always have 00.00 at the end of your mortgage and one day it will all be 0's
    Mortgage Free 21.12.18
    Just 11 Years 3 months early
    MFMarch 30 Re/M Oct 23 Target -Dec 19
    O/P's 2014/£4000, 2015/£6294.69, 2016/£3186.80, 2017 £4068.97

    • ElmoR
    • By ElmoR 12th Jan 19, 9:58 AM
    • 46 Posts
    • 143 Thanks
    ElmoR
    Thank you for the link Frayed.
    While I was lurking, I found a thread that described how to set up a spreadsheet, step by step, so that even I was able to get one sorted out. I think it is on one the bigger threads, maybe CathT's? Every so often I change the amount of o/p to see the effect on the number of months left to pay, the daily interest rate etc. It's very motivational.

    Was tired yesterday evening and didn't have a chance to post but it was good news in that I had another day of no spend on food/drinks at work. So last week was a £27 saving week in that area. Another 3 weeks of that and I could have £80 to £100 more for O/P. had to fill the car up with petrol though, so wasn't a NSD. My new(er) car only costs £45 to fill up compared with my old one which was closer to £55 for diesel. I was worried that I would get less mileage per litre but it doesn't seem to be the case, the engine is much smaller and the car is 10 years younger, so I imagine they cancel that out.


    Did the energy change with MSE already, DH also gradually replaced bulbs for the energy savers. Actually he is a better MSer than me in many ways. We both had our own homes before we met and his salary was quite low, he struggled to make his mortgage payments/bills and had to live frugally. My circumstances were very different in that I had a bigger salary and had been previously married to someone who earned even more and money was wasted in an awful way looking back on it. I was still saving up what I call my 'war chest' though. That's a habit I had from childhood, working part time jobs and saving obsessively, knowing that I would need money if I wanted to leave home and do anything. The divorce was actually a relief and meeting new husband was great, our outlooks on finances are more similar. Quite a few people here seem to say the same about their OHs.



    Did do a SOA a few years ago too. Had lots of helpful feedback that I acted on. Some comments were a bit judgey and it put me off a bit. probably a good idea to do a new one and see where other savings can be made.
    I'm loving this MFW community and reading, it' soooo positive and helpful
    2018 £40,000 and 2027 M end date
    Aiming to reduce to, using OPs: 2019 £30k, 2020 £20k, 2021 £10K, 2022 MF
    • Cheery Daff
    • By Cheery Daff 12th Jan 19, 1:36 PM
    • 8,618 Posts
    • 43,837 Thanks
    Cheery Daff
    Ooh, that is indeed an impressive amount if savings in a week, well done you! it's quite shocking how much the little spendings add up isn't it?
    Mortgage overpayments £1200 in 2018, £153.58 in 2019
    • ElmoR
    • By ElmoR 13th Jan 19, 10:26 AM
    • 46 Posts
    • 143 Thanks
    ElmoR
    No kidding Cheery Daff.
    If you think back 30 years ago, it was really easy to not spend constantly on little things. There was no online shopping to tempt you. I can only remember one cafe in the small town where I grew up and it never even occurred to me to go in there for a coffee/tea, now we have a real cafe culture and some of my work meetings even happen there. On Monday I have one of those meetings and I will have to buy a drink and muck up my NSD ambitions


    Not been up to much this weekend. Work weeks tend to drain my batteries and leave me in low mood which makes the sofa and telly seem like the best place to be. Will go to the gym with DH this afternoon though, we try to keep it up at least once a week. Really we should be going at least twice a week to get our monies worth. It's a chicken and egg situation though. You need the energy to get to the gym, which will charge your energy levels up, but you have no starting energy . Somehow in my 30s I did manage to break the cycle and get active, even doing short triathlons, but somewhere in the mid 40s (coinciding with the divorce and consequent upheaval) it all went to pot, where I've been stuck for several years since. That was a bit of personal rambling reflection, possibly off topic!!
    2018 £40,000 and 2027 M end date
    Aiming to reduce to, using OPs: 2019 £30k, 2020 £20k, 2021 £10K, 2022 MF
    • Cheery Daff
    • By Cheery Daff 13th Jan 19, 2:32 PM
    • 8,618 Posts
    • 43,837 Thanks
    Cheery Daff
    Not off topic at all - you were talking about getting the most out of your gym membership! (and also, who cares if it IS off topic?? This is all about fitting money-saving into life, so I reckon it's fine to talk about life too Hope so anyway )

    I go through phases with activity too - I've done triathlons and marathons in my time but then I'll go for months without running at all, especially in the winter. Tis indeed sometimes hard to make yourself get out there.
    Mortgage overpayments £1200 in 2018, £153.58 in 2019
    • A Frayed Knot
    • By A Frayed Knot 14th Jan 19, 12:41 AM
    • 2,720 Posts
    • 12,026 Thanks
    A Frayed Knot
    Excellent saving for your first week of trying. Well done.

    Here's hoping next week is similar.

    Are you o/p it just now, or waiting . . .

    Just remember every £1 o/paid, is a £1 you will never pay interest on again
    Always have 00.00 at the end of your mortgage and one day it will all be 0's
    Mortgage Free 21.12.18
    Just 11 Years 3 months early
    MFMarch 30 Re/M Oct 23 Target -Dec 19
    O/P's 2014/£4000, 2015/£6294.69, 2016/£3186.80, 2017 £4068.97

    • ElmoR
    • By ElmoR 15th Jan 19, 7:52 AM
    • 46 Posts
    • 143 Thanks
    ElmoR
    Wow Cheery, marathons!! I salute you!!

    My body frame carries me through a 10K max and I'm not sure I could even jog my way round 5K at the moment.


    Frayed, I have an admission to make in that I do not know how to overpay a one off payment . All my previous O/Ps have been set up for each month and automatic in the past. Which is fine in one way, but I can see the logic that the £27 I saved, in NSDs/no work spends on lunch last week, is money that I wouldn't have had if I spent it, so in theory I don't need to wait til the end of the month before putting it towards an O/P. I'll phone the bank and find out...
    Continuing into my second week well, a NSD yesterday despite the cafe meeting. Apparently I had bought the coffees before Christmas, so it was someone else's turn. I've noticed that out of the 3 of us who meet for these work cafe sessions, only 2 of us ever pay. The other one is always late/last arriving. I know they have serious debts and struggle as a carer but it still feels a bit awkward.

    The lunchtime walk is helping me reach 10K steps each work day too.

    Off to work...
    2018 £40,000 and 2027 M end date
    Aiming to reduce to, using OPs: 2019 £30k, 2020 £20k, 2021 £10K, 2022 MF
    • Cheery Daff
    • By Cheery Daff 15th Jan 19, 11:23 AM
    • 8,618 Posts
    • 43,837 Thanks
    Cheery Daff
    Yay for another NSD! If one of your three seems to be struggling with money, and you would rather not be spending - could you suggest meeting somewhere other than the cafe? The third person in your gang would probably be thankful for it (they may be embarrassed they never pay), and the first person could always bring a takeaway cuppa with them. Just a thought

    As for one off overpayments - good plan to check with the bank. I stash my OP money in a separate pot to pay off all at once, as if I pay any less than £1000 in a lump sum it doesn't get taken off the balance until the end of the year anyway - so basically the bank are just keeping hold of it and earning interest themselves. I'd rather it sat in my account until it made a difference! But all banks are different, and some calculate interest daily and let you make as many small OPs as you like - wish mine was like that but we had so many other mortgage conditions to meet I wasn't going to quibble about that too
    Mortgage overpayments £1200 in 2018, £153.58 in 2019
    • ElmoR
    • By ElmoR 15th Jan 19, 4:26 PM
    • 46 Posts
    • 143 Thanks
    ElmoR
    Thanks Cheery, it didn't occur to me to ask about when it gets taken off the mortgage, something else to check up on. Steep learning curve right now.
    Will ponder suggesting a venue change for the cafe meetings...probably means booking a room and adding a task though. Hmmm.
    And another NSD However, eating 2 minute microwave uncle bob rice for lunch didn't see me through the afternoon or provide enough brain food, so best start making something more substantial with a few more food groups represented
    2018 £40,000 and 2027 M end date
    Aiming to reduce to, using OPs: 2019 £30k, 2020 £20k, 2021 £10K, 2022 MF
    • A Frayed Knot
    • By A Frayed Knot 15th Jan 19, 6:07 PM
    • 2,720 Posts
    • 12,026 Thanks
    A Frayed Knot
    My mortgage was with the H@lif@x, so I just opened an account with them, then done the transfer to the mortgage account as and when I liked.

    Make sure though that you are o/p the mortgage account with the interest being added (I had a sub account at 0% interest) and when I paid my 1st large o/p, stated this, but no one at the bank had heard of it (yeah, right) so they just split the o/p and took off both accounts not just the one that interest was being added to. Takes about 2 days to show in the mortgage account once you have o/p.
    Always have 00.00 at the end of your mortgage and one day it will all be 0's
    Mortgage Free 21.12.18
    Just 11 Years 3 months early
    MFMarch 30 Re/M Oct 23 Target -Dec 19
    O/P's 2014/£4000, 2015/£6294.69, 2016/£3186.80, 2017 £4068.97

    • Cheery Daff
    • By Cheery Daff 15th Jan 19, 11:43 PM
    • 8,618 Posts
    • 43,837 Thanks
    Cheery Daff
    Ooh, the blighters, there are so many ways they can shaft you!

    I didn't realise about the overpayments not counting til after I'd made the first one - that £130 annoyed me all year, sat earning interest for the bank and not me

    Also (apologies if you already know this) mine wanted to recalculate my monthly payment when I made our recent OP. I had to specifically ask them not to, but to reduce the term instead. Except that wasn't the term they used - they confused me by saying "so you want to make a monthly overpayment then?"

    Er no. I want to make a one off overpayment but not reduce my monthly payment. But in their terms, because I've overpaid, the amount they want me to pay each month is less (because they're still spreading it over the full 24 years) - so if i keep the monthly payment the same (because i want to pay it off early), i'm effectively paying more than they require - so yes, i'm making a monthly overpayment

    Clear as mud, yes? had to ask the poor lady on the phone to explain it three times before it clicked
    Mortgage overpayments £1200 in 2018, £153.58 in 2019
    • Cheery Daff
    • By Cheery Daff 15th Jan 19, 11:47 PM
    • 8,618 Posts
    • 43,837 Thanks
    Cheery Daff
    And now I think about it, if i keep the pyments the same they're earning interest on my monthly £4.33 overpayment! Gah!! So mybe I should have reduced it after all, and put the difference in savings account then given it back at the end of the year.

    Except that might have made my head explode so for the sake of about 15p in interest I'll just leave things where they are
    Mortgage overpayments £1200 in 2018, £153.58 in 2019
    • A Frayed Knot
    • By A Frayed Knot 16th Jan 19, 4:36 AM
    • 2,720 Posts
    • 12,026 Thanks
    A Frayed Knot
    Yep, you said it,wee blighters !!!

    When I started o/p every month, they also wanted to reduce my monthly payments each time, so went into branch and explained, I do not want a reduction in mortgage payments each time I o/p, again no one at the bank could do this, ended up they phoned (abroad) and spoke to someone that could do this for me, took about 1 1/2 hours if I remember right. They don't make it easy to o/p and keep mortgage payments the same. As you say clear as mud.

    Once my last deal was finished, I didn't go into another deal as it would have restricted me too much and they still reduced my monthly mortgage payment from over £300 to something like £87 ,
    they were certainly trying to spin it out, but I was having none of it and as it was at SVR spurred me on even more to get it finished, as it would have taken me years and years to finish it off at that monthly payment


    Thank goodness for Martin and this forum.
    Always have 00.00 at the end of your mortgage and one day it will all be 0's
    Mortgage Free 21.12.18
    Just 11 Years 3 months early
    MFMarch 30 Re/M Oct 23 Target -Dec 19
    O/P's 2014/£4000, 2015/£6294.69, 2016/£3186.80, 2017 £4068.97

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