2020 Mortgage Goals

I have upped the overpayment back to £250, we should have enough for New York and that was the only big expense left really, therefore back to overpaying the full amount we can afford!

According to Money Saving Expert’s mortgage calculator, based on our current mortgage of £152,475 with 24years to run, we will pay £39,227 in interest over the remainder of the mortgage. By the end of 2020, our mortgage would stand at: £147,459 and we would be mortgage free by 2044.

It is good to know, so I can play with the overpayment calculator and find out what the overpayments will do!

So, with our regular overpayment of £250 a month, starting on January 1st 2020, we would pay £25,966 in interest, saving £13,261. We would be at £144,432 by the end of 2020, this would be paid off in 16 years- 2036. This seems like a great achievement long term!

Though I would like to have paid off 10k, you know, just to round this off nicely!

So I added 2k as a one off overpayment in December 2020, it would save us an extra £700 over the life of the mortgage, end date would be 2035, a year earlier.

And out of curiosity, I added a one off payment of £4500, this would take us into the 140’s at the end of 2020. We would pay off the mortgage in 15 years, same as the 2k one off payment though would be saving an extra £1610 in interest!

In reality, I think that the 2k may be managable, the 4500 not so much, maybe if all we did was overpay it might work but we have other things to save and do next year! Hubby is happy with the £250 overpayments, so I would have to see about anything extra!

What is frugality?

When I think of the word frugal, I won’t lie, I do automatically think of negatives such as going without, being tight fisted and being unhappy. I fully believe this is due to the world we live in being so materialistic and equating spending with happiness, or at least the awareness that when you buy something it can make you feel good, even for a moment. I fall into the trap quite often of living for the future, not in the moment. Once I buy this, once I do that, once this is achieved I will feel safe/secure/happy etc etc. Though if I break things down, I have lots of great things already, our home is amazing, for the budget we have it is as perfect as it is going to get! Yes, it does need things doing to it, some painting, tiles in the kitchen and little touch ups here and there, and perhaps some things are not to our taste, but they are fully functionable! I dislike the kitchen, but I would not replace it anytime soon as it is in great condition and functions well. One day, when we have used it to death, perhaps I can get the dream kitchen! I also have lots of clothes, if I am honest, the only clothes I may need anytime soon are: new work trousers, I wear these out! Hopefully not for a few months though and I will need new work trainers/shoes soon, I have started to wear the backs out, and as I do 12 hour shifts on my feet, they have to comfy! I do wear out trainers as I spend a lot of time in them, I tend to buy end of the line trainers from SportsDirect and they last 6-12months depending on my use. I could really do with walking boots, but I really struggle to find any that are comfortable, I get blisters on my feet so easily which is frustrating.

I looked up the definition of frugal:

1.  Practising economy, living without waste, being thrifty

2. Not costly, meagre

These are not negatives, in fact quite the opposite, who wouldn’t want to be economic, without waste and thrifty? And if I think about what is important to me: hubby, dogs, family, chickens, roof over our heads, garden, quietness, travel and feeling secure, these can all be achieved without being a spendthrift!

I have been watching Buying and Selling on ITV- I am sure it was Property Brothers when we used to have Sky! I enjoy watching house shows, I find it interesting and exciting to watch transformations, but this show is all based around consumerism, I want bigger, more expensive therefore technically better! We are a fascinating species!

I like to try and be a green person, I want to help the environment and am always interested in learning about new ways we can do that. Being less wasteful would be a huge help to the environment, eating better food, feeling more productive and hopefully achieving more as I feel better. We recently Kon Marie’d the house- freaking loved the show on Netflix! We charity shopped so many clothes it was crazy, then I have been slowly re-filling the wardrobes and drawers with new clothes, defeating the whole point!haha. I think I will look at re-doing this in the new year, emptying all the drawers etc and going through my clothes to see what gives me joy! This way I will also get the chance to see what clothes I actually own, and how much I don’t need to spend. I think clothes are an area I am spending too much and on things I don’t ‘need’. In January, I shouldn’t need to buy any clothes, though I may want too!

I have been researching making my own cleaning solutions and washing powder. I will continue to look into this and see if it is feasible for us to get going with this aspect of frugality and also being green! We will use whatever cleaners we already have to not waste anything!

Watch this space for more brain farts about January’s challenge!!

Uber Frugal Challenge Homework, step 8-11

Examine your habits!

I know that purchading food is one of my big downfalls, I love food, I overeat, I struggle with my weight- that could be a blog on its own! I work 12 hour shifts, I struggle to prepare food in time for my shift, I struggle to decide on what foods to eat, this can often result in buying pre made food for ease and convenience. Also, grocery shopping in itself is expensive, we often feel we have no meals and will eat rubbish to compensate. I feel a large area to turn this around is part of the Frugal Challenge. I already meal planned then went shopping, this usually costs around £90, and paid £77 which included a £20 giant teddy for the dogs at Christmas! Felt like a good shop and I thought ahead about what we may need. Today, I made a mushroom soup, and it is in the thermos ready for work tomorrow, I think I will take bread and butter, or a sandwich, as well as a yogurt, some fruit and a oat pot! This could be cheaper if I used oats instead of prepackaged. I don’t get home until nearly nine so makes it difficult with regards to tea time etc, plus work is busy and usually we have access to cakes! I need to learn more about healthy snacks and getting food that will actually fill me, and satisfy me! Stress is a common feeling when you are a Nurse, I work in Dementia care, it can be a very upsetting and stressful place, because you care so much, so my emotional eating is often triggered, this spills into the drive home, popping to the shop or snacking when I get in. Sometimes, when you start to breakdown a habit, behaviour and choice, it can become overwhelming to try and think how else do I cope with those feelings without food? Again, probably another post!

Step 9- Plan Ahead!

I really feel this will be beneficial, if I plan and act ahead of shifts, I will have food and snacks, this will hopefully have a positive impact on other areas of my life including finances. I enjoy fruit and vegetables, but am so bad at actually eating them! So, planning ahead would allow for more consumption made easy. Given the choice, a chocolate bar or an apple, I would always pick the chocolate, give me a cut up apple I can pick at whilst quickly catching up on notes in the office and it will be consumed! Days off are hit and miss, sometimes I just want food, comfort food, lots of food, can’t stop thinking about food, other days I feel able to make some alright choices around food. This all links in really, self esteem, emotions, are all disguised and hidden when you eat or buy food! Might be a long road….

On Money Saving Expert, I used to join in the No Spend Day challenge, where you would set X amount of days where you wouldn’t spend. The rules were personal, you could include or exclude bill payments, fuel costs, known payments etc. I used to include any payments made on my card, so bills that went out of my account were not included- most go out on the 1st anyway. So all other payments- including cash- would make it a spend day. I feel this mentality could work in the UFM, as would delay buying things until I had to- ie buying fuel so would buy something else on those days if needed. It also meant online shopping saw things sitting in the basket so I had more time to think through the purchase. I think implementing this again would be good!

Step 10-

If you do buy stuff, get it free or cheap! This makes sense and points out that items you cannot get second hand, such as toothpaste, you can price check to make sure you get the best prices. I enjoy facebook marketplace and have had some great finds on there, nice and local too! I think sometimes, it is worth shopping around- I found great wallpaper cheap and using a local builders merchants got shelves to the correct size at a great price. So much better than B&Q! Which I do love as well!haha. So we already do some frugal things, but can improve so much!!

Step 11- Banish Excuses!

Of course this is the hardest part, excuses are easy, they are normal! I have reservations about aspects of this challenge- I love netflix and Amazon Prime! I love buying food that is yummy and convenient! Also, we are eating out with friends in January- I really am not up to cooking or hosting for that many folks, we only meet around once or twice a year and go to a nice cheap place. Also, we are going on a short holiday in January, we will be eating out, socialising and our dogs will be costly in those four days! But around this, we will really really work on our spending issues!!!!

Some of the other points- earn more money- within both our roles we earn very well, this is not a high wage, but much better than minimum wage! There would be no other jobs for either of us that would earn better at this time. Moving would not help, our home is wonderful it is the dream home in our budget and we have worked hard to make it affordable! We love living here, and there is no where cheaper that would compare. Getting rid of cars, our main car would not be worth selling and buying a new one with the loan, it is a good loan and we are probably three years into it now! The car is 0 tax and very economical, husbands truck is all his. He pays for everything for it and loves it, I would never ask him to sell it, it is a luxury! We are not paying to work, we are both commutable- me about a 40-60min round trip, three days a week, hubby 15mins away. We have no children and since Hubbys father has retired, he comes to do the dogs twice a day when hubby is away and I am working a long day. Hubby is struggling with the stresses of his job currently, but also loves it, and I am more content with work than I have been in a long time. Definate room for improvement, but considering I was ready to jack nursing in, I am now loving parts of the role again!

Wish us luck! I will keep you all updated!!

Uber Frugal Month Homework, Step 2-7

Step 2- So, I looked through my personal spends in November and then our joint account spends. It got a bit confusing as we often pay ourselves back from the joint account, but it isn’t always clear what we have spent it on. Such as, we pay for dog appointments and medication, then the house (joint) account pays us back. We both put a lot of our earnings into the house account, so this is why it pays for things like this. We also use it, if we decide to buy house based things, it is where the holiday money sits until it is used etc. So I am not 100% sure what I have been paid back for, as I will often pay for a few things before taking back and the online account isn’t as detailed as I would like! Last month personal spends has included a trip out with my friends for afternoon tea for a friends birthday, where I did go shopping as well as Christmas Presents, which I don’t always have to buy. I have spent over £200 on clothes, I am expecting about £75 back in returned items. Still a lot of money, I did need a waterproof coat- I don’t have one that fits and haven’t for many years, choosing to just get wet! But the other items were desire items!

Step 3-

Fixed Mandatory Expenses- This is non moveable costs

  • Mortgage- £717 (£50 overpayment, rising to £250 overpayment Jan 2020)
  • Gas- £106 every 2-3 weeks in the Winter, less in the Summer
  • Council Tax- £159 (think its for 10/11months)
  • Energy- £25.51
  • Water- £35.50
  • Life Insurance- £60 (I am sure I can get this cheaper if I actually looked, we got it through the mortgage broker)
  • House insurance- £paid in full, approx £114 a year
  • Credit Card- £110 minimum payment (often pay some more)
  • Car Insurance- £26.64

Discretionary Spending-

  • NSPCC and Dogs Trust- £13.67 (I want these to continue)
  • Vodafone- £14.39 (I own my phone outright)
  • Account fee- £5 (we used to earn more back than this, but at the moment we are barely earning to cover it)
  • Zoo- £13.75 (we can discuss if we wish to keep the membership going or not)
  • RCN- £23.70 (This is my insurance for nursing as well as a magazine- could stop the magazine though)
  • TV licence- £154.50 a year
  • Groceries- £90 per week :0 (Between £75-90 on average)
  • Fuel- £80 a month-ish
  • Takeaways- £15 a week on average
  • Hair for me- £10 haircuts once every 4-6months, hair dye £5.50 every 3 weeks
  • Current monthly saver- £250, 5% account, ends soon
  • Clothes and miscellaneous c- unsure what these costs are!
  • The dogs are both on medication-Meloxaid, Desmopressin (we buy from a human pharmacy) and supplements- youmove cheap version, I am unsure of costs as all paid seperately and adhoc! Recently needed x-rays for younger dog so big cost. No insurance as both dogs are rescue with issues so would either be uninsurable, or a ridiculous cost. We have always paid for everything they need outright
  • Dog food- they are now raw fed and we are still trying to get the feeds correct so unsure of costs
  • We eat out but not that often- we went away this month to Glasgow, so spent a lot more there than usual when at home
  • I will sometimes buy lunches for work, these can cost around £5 and I work three days a week
  • I rarely go to McDonalds , Costa or other but can find some months my use increases- last month for example
  • Hubby pays for Amazon Prime and Netflix
  • Internet- something like £18- hubby pays for this from his account
  • MOT and Service- £170ish depending where we go!
  • Adhoc Chicken costs, they don’t need a lot and we buy food as needed,we paid the big costs outright- their home!

Step 4-

What can we get rid of? Well, its tough. I guess that is the point. The Zoo could be dropped, I will work out if we have made use of the membership or not this year and base it on that. Will require a discussion with Hubby, who is working away the next few nights. We do need to work out the costs for the dogs, medications, food, appointments three monthly for reviews etc. Our dogs are our children, they need medication as they both have ongoing conditions that without medication would be life affecting. We get Red’s Desmopressin from the Human Pharmacy, we have to pay for his prescription then pay for the meds, this is still cheaper than it used to be getting them all from the vets! We don’t eat out often, but have a weekly takeaway, we both dislike cooking so it is nice to know that once a week we get something lovely to eat with no effort! Perhaps this can be something to reduce in the future, please?! I am unsure if we can stop the TV Licence, I mean, I could easily not watch the BBC channels, but am unsure how it all works these days! That could be a nice saving!

We could look at the Life Insurance, I am fat, therefore I make it more expensive. But I think that our mortgage broker went for the best deal for her, rather than us, thats fine, she is great with mortgages and I am happy to help her get extra commission, but really we should be investigating this ourselves now! I could look at my mobile phone plan and see if I can get it cheaper. Internet is a new deal and I am sure it was the best we could get- our connection is shocking! I feel haircut costs and hair dye costs are perfectly acceptable, I am 32 with many greys that I am not ready to embrace yet! I will look at moving our joint account, we used to earn good interest when we had more cash in there, but now its in a 5%saver so not helping the current account. Fuel is what it is, I don’t use my car ridiculous amounts, we have a very efficient joint car, and Hubby has his truck. I have no issues with his truck! Could do with being more prepared with work lunches and helping myself as I do 12hour shifts, this would benefit two fold. Clothes are a non budgeted buy whenever thing, I really need to address this with need not desire! We are not ready to stop netflix or amazon yet- sorry UFM!!

Step 5- Substitution

I will be honest, can’t really think of substitutions at this time. I mean, I buy Options hot choc which I love and is cost effective. I love wine and other alcoholic beverages- perhaps I should look into trying to brew my own stuff? I could definately make a version of creme de cassis with blackberries from the garden, missed that this year though. I have started to try and grow veg, my rocket is still doing well and it is almost Winter, but I struggle to grow other things! Another must try! We have chickens, they are ex batteries so laying is hit and miss, that is fine, we just wanted to save them so they didn’t go to slaughter! Will ask my stepmum to help me with foraging I think. I am not conviced about barter and trade at this time!

Step 6-

Reduction of Discetionary Spending- accidently covered this earlier! Except grocery shopping is something we really need to work on! We are upping the mortgage cost, this is because we are on a great deal and want to pay it down more, ultimately helping us!

Step 7- Insourcing

I mean, we don’t outsource often. We paid professionals to do our driveway, much more time effective and a fantastic job comparative to what we can do. Same with the car, we will use a mechanic and ask around for quotes to get a good deal. We paid a gas man to check the boiler when it was playing up. I want to pay a cleaner but Hubby says no! Recently we made shelves ourselves, this was a great example of insourcing. We need to paint and redecorate some rooms, I would like to outsource these jobs but will probs end up doing them with Hubby. Some things are worth trying yourself, but others we need to think about the skill level required and the time constraints we both face.

I am exhausted, this has made my brain hurt to be honest! Will continue on the next steps after my next shift at work!haha.

Mortgage Roundup 2019

We started the year with a mortgage of:

£158,003

And years end:

£152,475

We have taken £5,528 off the capital, I hope 2020 will see a bigger drop! I would like to aim to into the 140’s by December 2020, will have to work out if this is feasible!

October Mortgage Roundup


October Mortgage Stats:

Was: £153,817
Now: £153,420
Monthly Payment: £666.72 + £50
Capital Paid: £397
Interest: £319.72

Another month, and it is good to see that even with a reduction in overpayment, the money is still going down!

Mortgage Overpayments, Take 1001

So, the title is an exageration! I have played with overpayments many times since getting a mortgage for the first time in June 2011, but I wouldn’t hit the 100’s let alone 1000’s really…

After my last post, I was inspired to talk with the husband about re-starting the overpayments on the mortgage. We stopped as we bought a car on finance- good apr though- and we have been doing things to the house- had a patio outside the back and have saved for the driveway to be done at the front- and now, even though we have some holibobs coming up, I have noticed we should be able to spend an extra £250.28 a month on the mortgage without it having a huge impact on other things.

Bearing this in mind, I have today, increased our payments by £250.28! Taking us to £917 a month in payments, I can stop these at any time should I need to and even if I only manage to overpay a month it will still save a good amount ultimately!

So, with the overpayment we should be able to pay the mortgage of in 17 years- this still feels too long right now- I will be 48 and hubby will be 49. This is great progress really, but the problem with overpaying and looking into mortgages, is that it opens your eyes to the real cost of a mortgage,the interest is truely shocking!

I am looking forward to seeing what my wage will be in May, I have started a new job and this is 36hours a week so less unstable than working agency, plus I get paid my holidays! Hooray!

Looking forward to seeing the mortgage on May 1st….

Savings

When I look into ways to be better with money, making money work is something that comes up often, as well as ways to make money last longer.

So, savings are twofold. You can save money by not spending and you can save money by buying items for less. I am still a materialistic person. I recently kon-mari-ed my clothes, I HAD LOTS. I went through them and for each one I checked for that spark of joy, those that didn’t, I thanked them and they have been sent to Barnados Charity shop, to be joyful for someone else. For those that did, I carefully folded and placed them into drawers and the cupboard. This felt so good, but I also acknowledged that there was a lot of wasted money right there. I made a pact with myself to only buy items that are needed and I truely love from now on…I am already wavering on this. I need work trousers as I am down to one functioning pair, I need a new pair of leggings- I am down to one pair, we are off to Florida later in the year and I dont have a lot of hot weather clothes. I live in the UK its not that hot! So, some clothes are actual needs, some are wants and desires.

I went on to Evans last night. I am a plus size girl and its hard to get bargains. We live relatively rural and our charity shops dont seem to have any clothes for big lasses. I left the items in my basket, and this morning the three items in my basket are in the 24% off sale. I still like all three items as much as yesterday and my leggings are down from a tenner, so even better! Now, the other two items are lovely, beautiful, hot weather clothes- they may not suit me and I can return them if they don’t. Evans is pretty happy with that, but the fact I have waited instead of purchasing meant I got them with 24% discount, ergo, I have made a saving. I could argue with myself that not buying the items would be a better saving though!

I also found two pairs of trousers for work on Amazon for a great price, again, if they aren’t right, Amazon are pretty good about returns. One really bad thing, is that Amazon seem to be offering lots of plus size clothes for a great price. Noooooooo! My plan to manage this impulse to buy, is to leave items in my basket, see if I still like them, and then check if funds can cover it this month. If not, I will save them for later, when I have the funds!

As to the other part of saving (the not spending part) we currently use Santander and get 1.5% on the money in our current account. This is better than a kick in the teeth, but not great. I also have an M & S account, and have opened a 5% savings account. To get this rate, we have to leave the money for a year and can only pay-in up to £250 a month. This means in a year that account will be £3k and we will earn over £81 in interest. This is where that money will be working for us. Depending on my variable income, this money will either be entirely new savings or a mix of new and some other savings we already have. Making money work for us is a concept I am new to, and I am still trying to get more into this mindset, including investments etc. as well. One day at a time! 🙂