Lulabelle's MFW Diary

A question about : Lulabelle's MFW Diary

Good Morning fellow MFW's

After posting a thread wondering where to get started, I have decided to take the very important step of officially becoming a MFW and starting my very own diary.....

DH and I purchased our current property 5 years ago for Ј240K (worth a bit less now but hey ho) and at the time our mortgage was for around Ј195k. As you can tell by approximate mortgage amount, I never really looked at these things too closely back then, but that has changed!

We originally took the mortgage over 30 years, reducing it to 20 years and increasing the payments a few years later when my income increased a little bit.

Since we moved here, DS1 started school and then DS2 arrived just over 2 years ago. So as one lot of nursery fees stopped, another lot started!

I've checked my online banking and spoke to the BS and I have the following figs:

Mortgage 1
Currently o/s 51,957.34
this includes overpayments of Ј16,500
Int rate on this one is 5.63% fixed until next Summer
My current payment is Ј549 per month

Mortgage 2
Currently o/s 82,352.79
this includes overpayments of Ј5934
Int rate on this one goes down to 2.5% (BMR) from 1st December
My payment will reduce from Ј653 to Ј525 but I have just asked them to increase this to Ј650, meaning that an automatic overpayment of Ј125 will be taken every month without me needing to do anything.

Total mortgage o/s is currently Ј134, 310 as of 8th Nov

Without changing my lifestyle dramatically, I will be able to make overpayments of around Ј500 per month (on top of the automatic Ј125 collected by DDM).

If I take on board lots of the advice from this forum, then in theory i should be able to increase this a little bit.

I haven't worked out exactly what this means in regards to when I can be mortgage free but I guess this will be my next step so that i can have a date in mind to aim for. I believe that this is probably essential in order to keep the focus/motivation etc. If anyone can help me with this, then that would be really appreciated.

Best answers:

• Hi Lulabelle and welcome to the boards (or the MFW Bible as I like to call it!). You've already made great in-roads on your current mortgages and seem to have the right mindset to put bigger dents into it so well played and keep up the good work!!
  To help you calculate an approximate date for completion I suggest you take a look at the ultimate mortgage calculator found here. There are also loads of others you could try via Google etc...
  All the best
  T
• Thanks for the encouragement Twiddy and for the calculator....
  If I o/p by Ј499 per month on the smaller mortgage, then this should be paid off in around 5 years.
  If I o/p by just the Ј125 (which they auto take by DDM) on the larger mortgage, then this will not be paid off for approx 12 years.
  So, I need to find ways to increase the Ј125 payment as I was really hoping to have this one paid off quicker too.
  Open to money saving suggestions, but to spending hours doing surveys etc as already too busy!!
• Hey Lulabelle!
  Good luck on your new MFW adventure.
  Just a little thought though - are you able to overpay on Mortgage No 1? The interest rate on No 2 is so low that you can probably get savings elsewhere. If possible, you should put that payment back down to the minimum possible and stick the other Ј125 to No 1. If you can't overpay on No 1 then you could probably find a savings account (do you have an ISA or regular saver?) that pays more interest.
• Sorry lvm, I have no regular savings account or ISA's. I did have these things approx 3 years ago but the rates were so low that I used the money saved to o/p on my mortgages instead.
  I have no other debts apart from my mortgage.
• Hi LB1, I only started my diary and it's quite nerve wracking starting it off but I am finding that it really helps to focus me.
  Good luck in your quest and the guys on the board are a great bunch and really supportive. We all have different stories to tell but ultimately one goal.
• Thanks Tilly, I spotted your diary a couple of days ago and subscribed to it!
• Austerity measures have started, beans on toast for my lunch today, lol!
• The cupboards are bare, so need to go food shopping later. This is the most ridiculous expense and I really need to get better here. I need to find a budget meal planner as I spend around Ј600 per month currently including cleaning stuff, toiletries, nappies etc. I know this is crazy and this is where I will start to focus some attention and effort....
• I've been going to Aldi first followed immediately by a trip to Tesco to get the remaining items. Unfortunately, DH seems to make trips to Sainsburys every day and always ends up buying "extras"......
  I'm realising that I need to get DH on side if this is ever going to work. I'm the main income provider for the family and sometimes feel really fed up when I try and be good with the money and then DH doesn't seem to have the same kind of concern. He hasn't got a clue about our outgoings, he has no interest. he does his part time job and then spends most of his time playing with the kids or going out biking (his expensive hobby which drives me insane)..... rant over, for now!
• Had a quick scan through some of your diary's and have decided that I will be brave and post some sort of statement of account. I'm very nervous to do this, but here goes:
  Mortgage 1 - 550
  Mortgage 2 - 650 (inc 125 o/p by DDM)
  Sky - 34.75
  CTF DS1 50
  CTF DS2 50
  Water 29
  DS1 Save thing 15
  DS2 save thing 15
  TV license 12.37
  Council Tax 143
  Gas & Electric 83
  Pet Ins 7.40
  Lovefilm 14.99
  Various Life Ins 48
  Critical Illness 23.54
  My pension 287 (I don't get employers contributions)
  British gas maint 14
  NSPCC 5
  DH Mobile 35
  Nursery fees 550
  Food 600 approx
  Petrol 250
  Save xmas 75
  Save birthdays 50
  Save cars 200 (this covers the insurance, tax mot, etc etc for 2 cars)
  Mortgage o/p 500
  Spend 650 - this can be anything from a lunch to a pair of shoes for the kids
  This is everything I think and accounts for all of our income apart from around 100 which I would pop in to a saves account named "holiday".......
  Thoughts and comments please......
• The big one that sticks out seems to be the spends of Ј650, why don't you do a diary for a month and write EVERYTHING down to see where it all goes as that is quite a lot that maybe could be reduced a lot without too much "pain" as martin says!
  Do you use vouchers for entertainment and food deals in restaurants? also check the grabbit board for fab bargins and if you have sky, then have a look at their reward section as you can get free preview tickets for lots of films, I have had 3x pairs this month alone, my dh goes and takes a mate or my brother as I'm not too interested.
  If you have the time (probably not!) you can do online surveys to earn vouchers and also makesure you join topcashback and/or quidco, good luck.
• Thanks Newgirly....
  Believe it or not, I have been making a note of everything I spend each month for the last 18 years!!! Ever since I got a computer I have done this via an excel spreadsheet.
  Whilst i'm really organised in terms of knowing exactly how much money I have at any one time to the nearest penny, unfortunately I'm not so good at being careful with what I buy. (just good at logging it on my spreadsheet!).
  The money goes on the following types of things; lunches out, occasional take away, Clarins lotions and potions, clothes for the kids (not too much), clothes for me and DH (again not too much), cinema, swimming, days out, toys (already cutting down on this one, so this is more of a rarity nowadays), xbox games for DH, bike related items for DH, girly evenings - meal out or a few drinks etc, odds and sods for the house, yankee candles, blimey the list goes on and on. This is not obviously every month but it gives you an idea of the types of things that i splurge on. Oh, I'm a sucker for a nice coffee too.
  Ive never heard of a grab bit board before, where do i find it?
  Love the idea re Sky rewards, will get DH to check this one out.
  In regards to deals on restaurants, we live in a small town in the sticks so we tend to eat at local eateries etc so difficult to find vouchers. The good news is that I've started to try and cut down on this too.
• Hello and good luck. There are lots of tips (i think) on the Old Style forum. I mean to have a look but keep forgetting!
• Hi, I really understand your DH points. I actually wouldn't start a diary until he was on board as I felt the numbers were too much for me alone.
  Not sure if this will help you but this is how I handle the shopping. Hope you love spreadsheets......
  Depending upon whether i am using a 4 week or 8 week menu plan, once a month, if I am using a 4 week plan, (every couple of months if an 8 week plan) I do a freezer stock check, cupboard check and fridge, sounds a big job but I have 2 fridges and 1 tall freezer, 2 cupboards and it only takes about 35 mins all in. I then sit with a coffee, lap top in front of me and plan every meal. That really does include breakfasts, lunches, kids lunches, after school snacks, dinners etc. I do this on a weekly chart showing kids activities as well. That helps me to understand if it's a quick night, and I have to take something out of the freezer, or, it's an OK night and I can cook after work.
  I then cross the ingredients from my larder/freezer list as I use them up. This allows me to look for 'whoopsies', offers etc and use them up sensibly. I often pop stuff into the slow cooker on a Saturday and then portion it up, box, label and freeze. This truly has saved a fortune and I only go to the bigger supermarkets if I am on a grabbit hunt. I cook 1 or 2 veg meals a week and my DS and DH will now eat them with no complaints..... I spend for two adults and 2 teenage kids around Ј100 including dog/cat food, toiletries, cleaning products etc. In the last year I have found that Aldi is capable of fulfilling far more of our needs than years ago.
  We do grow fruit,veg which doesn't save a fortune but I grow tons of salad in the summer for pennies which definitely does save money. I also go blackberry, plum foraging which is great fun. It takes me away from excel sheets and work. I then prep them and freeze. There are some links to menu planning on this site somewhere and I am thinking of starting one up as well. All helps give us inspiration.
  Last suggestion for now, change your habits so that you stop going shopping as often, do something new with the kids, go for a walk, swim who knows what, but I have found breaking the cycle of how you do things allows you to change without too much pain.
  Sorry if I have gone on but your post struck a chord and I wanted to help if I could.
  Good luck
• Thanks Tilly I really appreciate you taking the time to add a post to my diary.
  I love your suggestions. I think it's great how you go through the cupboards and ff etc with your lists. I thought I was organised with the weekly shop until I read this!
  I'm kind of organised, I do a meal planner and then just buy what is required to cook each of the meals. But, I only do this for the main meals and often forget about doing it for lunches which is where my desire to pop out for a nice lunch comes from.
  Most of my "other" shopping tends to be done on the internet. I never take the kids shopping or spend any time on the weekend shopping as I prefer to spend quality time with the kids etc. As I work from home most days I tend to spend a lot of time in front of the computer and during quiet moments can be found "shopping" so this is definitely a habit I need to change and will think of some ideas as to how this can be done.
  DS1 is a really fussy eater which does not help matters. Thankfully DS2 is much better and pretty much eats what he is given.
• Had a chit chat with DH last night about my MF dreams.... He kind of seems to be on board and has promised that he will work with me on reducing the amount of spending that we do on the weekly shop - it's a start so feeling very happy about this.
  He's off to do the shopping after work, so let's see how he gets on.
  Haven't told him about me being on here though as I'm not sure how he would feel about that, he always looks at me like I am some sort of crazy lady.
  Off in to London for work today, so I shall be good, my only treat will be my first Christmas coffee from Starbucks, a treat that i shall not be giving up!
• Out of curiosity I checked my mortgage balance just now so that I could work out how much interest I'm paying on a daily basis. Presumably I just need to take yesterdays o/s balance away from the balance today and that's the figure..... Ј19.69 difference, so interest of nearly Ј20 per day, wow - this is actually a pretty good motivator!!!