gratefulforhelp's austerity measures

A question about : gratefulforhelp's austerity measures

Mainly inspired by chamichelle's Bumbling along to be mortgage free and also the MFW challenge thread every year, I have decided to start a diary to motivate myself through my next challenge which will be financially surviving maternity leave and continuing to pay off the mortgage.

The good things about my situation financially are that DH and I both earn a good salary, in relatively secure jobs, and we also have a little income from CM when the ex can't get away with not paying it.

The difficulties are mortgage payments of Ј1550 per month, childcare of Ј600 per month, and a planned year on maternity leave, a chunk of which will be unpaid.

We also spend an astronomical amount on petrol/diesel as we live in the back of beyond.

Aims for the next 18 months...

1. February purchase puppy. We have a year at home together, and plans in place for it when I return to work, which may be part-time anyway.

2. At the same time, start maternity leave.

3. March baby arrives safely (God Willing).

4. At around this time, change car (12 years old, 130k miles, 5 seater) for a newer 7 seater 4x4. We need a 4x4 as work will dock our pay if we miss due to snow days, plus having to drive in ditches to avoid tractors and the loony drivers who follow the hunt. 7 seats as there will be 5 of us plus the dog and occasionally MIL who refuses to drive.

5. Continue to overpay the mortgage throughout, without incurring extra debt apart from the car debt.

Mortgage totals are up to date in my signature, we started at Ј260k in 2007, so making very small inroads into it.

Thanks for reading!

Best answers:

• Good Luck with your MFW journey. I'm using the rest of this year to sort out finances/declutter/get ready for 2011...I'm on a mission to find Ј500/month to overpay our mortgage!!
• Thanks Natalie. What's your strategy?
• A couple of things planned:
• Savings from not using car park (now working from home 9/10 days) = approx Ј70 net
• Savings from shift allowance (wfh = 2pm to 10pm) = Ј230 net
• Savings from cutting down crap = Ј200 hopefully
• Plus I'm hoping hubby's business will pay off the remainder of Ј5000 I took out when hubby had to buy out his partner that will free up Ј100/month

Hubby will also be doing his share and will be trying for Ј500-Ј750 a month....not sure how it will all go, but between us there should be a minimum of Ј500 overpay per month if not more.
What about you?

• That's a brillaint plan.
  Well...I have a contract for extra exam marking in Jan which will be worth about Ј400 net, ditto June for me and DH each. Also saving Ј600 childcare each month while on maternity leave.
  The other key thing, though, is to cut down on the shopping bill, which is an eye-watering Ј450 per month for two adults, two children. EEk!
• Mine is the same if not worse, but for 2 adults and 1 child!!
  That's were the real savings are going to be found...I can do an Ј80-Ј100 weekly without batting an eyelid and STILL have nothing to make for dinner!!!
  So I'm hoping to join some of the grocery challenges, and store cupboard challenge to use up everything and stay good! I'm also ordering a fortnightly fruit and veg box to use and going to get a monthly meat pack, to stop me going to the supermarket almost daily!!!!!
• WELCOME!
  Well done on starting a diary, what a big mortgage though! I will definatly be popping in for a nosy regularly. Good luck
• Welcome GFH.
• Thanks very much, LP.
• Found you. Made me feel all warm inside to be your inspiration.
  You quote your food spends as being high, but it will be loads easier to get it lower when you can be at home keeping on top of stuff. I find i can go to the shop daily if need be to buy the one item we need. I lose track of what we spend exactly, but it mostly falls in the Ј200-250 for us, and we are proper carnivores. That is just food though - no toiletries or pet food or cleaning stuff or nappies. It does all depend on what you include.
  I think i need to become a bit more dedicated in 2011 too. I have lost track of what we spend a little with all the extra spends for DIY and home improvements, so i am sure i could have it better organised and make even more overpayments before these rates go up again.
• Lurker here, just wanting to say good luck!
  We have a similar mortgage to you but need to clear the credit card we used to buy sofa and white goods for our house before I can become a MFW. Will be reading with interest! x
• Michelle thanks, good to see you.
  I do include nappies, cleaning stuff and toiletries in that, still we do waste stuff. Nearest shops 5 miles, so really need to be disciplined about trips to the shops, unless we get stuff when out anyway.
  juicygirl scary amount isn't it?? I'm probably going to see if I can get a new car (new to me I mean) on CC, at 0% and then keep switching, as I think my credit rating should be pretty ok.
  We put all monthly spending on an M & S credit card so we get vouchers from their reward scheme, but then we squander the vouchers! We do pay it off in full every month, though.
• Well quite a busy day, doing relatively useful things. And a NSD, which will be ruined as have to buy floor stain and paint tomorrow, not to mention a scary dry cleaning bill (mostly curtains).
  However I have got a vat of bolognese sauce cooking, so should help with the food bills.
  DH has a vicious head cold and has mostly been in bed today.
• I think quite a few of us are considering 2010 pretty much done OP wise and now looking forward to 2011. I'm such with the not knowing running costs of new house, needing to literally empty our savings to get it (not that it was much) and impending maternity leave
• I'm only just half way to my Ј3K target, but dropped the repayments down when I got the (last) BFP. Still trying to pay Ј48 extra a month, which takes the monthly amount to Ј1600 (eek!), and hoping to do that through mat leave.
  Still, there are all those unknowns, and even more so for you, with the house move.
  Don't do what my aunt did and take all the light bulbs!!!
• Our current mortgage dropped to SVR at 3.3% from 6.3% so we continued with the fixed rate payment plus rounded it up to Ј450
• That's very good. We're on a 5 year fix at Ј5.59%, we couldn't take the risk with the variable rate. At least not while still paying for childcare.
• we are the same. new place they wouldn't let us port so we have applied for a new 2 year fix at 5.99%. I did consider longer fixed rate with the impending pixel but OH has a loan that is about a 7th of our take home pay a month ending in summer 2012 so decided to hopefully move to offset then when we will have alot more excess income. Well thats my long term plan. we are still waiting on our official offer which is nerve jangling.
• Fingers crossed then.
  Pixel - loving it!!