2013 Financial Goals (Update #11)

Things have changed a little this year and in August we made a few changes to our 2013 goals.

New Financial Goals for 2013:

  1. Reduce our mortgage balance to less than £72,000 – Our mortgage balance is now down to £74,700 and we’re creeping ever closer to the 50% milestone. We only made a small over payment this month, but we’re very happy to have paid off £10,810  in 2013.
  2. Complete and pay for all house repairs – Approximate cost £4,000. Ongoing! All repairs should be finished and paid for by the end of September. All done, goal completed!
  3. Spend no more than £2,500 on groceries – I spent £174.09 in October despite being away for 10/11 days! I’m NOT gonna make this goal.  2013 Totals: £2,373.11/£2,500.

I’m very grateful for the progress we’ve made in 2013, but there’s been a lack of consistency throughout the year. Some of it caused by personal stuff (my Dad being poorly really knocked me for six), and some of it caused by indecision – do we continue with mortgage payoff, or do we invest?  We’re currently working on our budget & goals for 2014 (and beyond!) and this is the main topic of discussion.

Our Net Worth went up £391.58 in October…at least it’s going the right way.

 

Comments

  1. Mortgage Free Journey says

    Well done Laura, you have done amazingly. Our success is often best judged by how we respond to setbacks rather than how we do when the going is good. You have continued to over pay and done so well you should be very pleased :-) we have reached 7% paid off in he first 13 months of our mortgage on one income :-) I’m happy with that! X

  2. Liquid says

    I say, this year has been jolly good for your net worth so far! :D I think you’ll reach your 2013 target for sure because you’re so close :) I’m personally investing all my savings. I know I’m already paying down the principle of my debt with every mortgage payment. If I pay back even more of my mortgage then I’ll feel like I’m building up too much equity in my home, and I won’t feel properly diversified. The FTSE 100 is up nearly 15% year to date. If financial freedom is our goal then we should learn from other people who are financially free already. In my research, most of them found success by buying and holding long term investment assets such as real estate, stocks, or other businesses. Although paying off the mortgage was probably a part of their plans, it certainly wasn’t a main focus. But hey, it all depends on your values, risk tolerance and time horizon :)

    • nomorespending says

      Hi Liquid
      You make a good point about looking to others who have already achieved FF.
      We do have a lot of equity in our house, and haven’t decided whether to continue with the aggressive payments or not, but you’re right, we’re not diversified.
      Ideally we have a ten – twelve year timeline to get this done. Hubby is 34, me a little older ;)

  3. Done by Forty says

    I’m glad you were able to cashflow the repairs, and at least they are all behind you now. I think you’ll be able to make even more progress, without those looming repair costs.

    • nomorespending says

      Thanks DB40! We still have a few house repairs to do – the joys of a Victorian house – but will budget for them in the New Year.

  4. anexactinglife says

    That IS a big decision to make about paying off the mortgage versus investing. I think it depends greatly on how long you plan to live there. The sooner you plan to move, the more the house sale price will be similar to the price you’d be able to get for it today. The further down the road it is, the more variation there could be from today’s price, in either direction. I don’t think I could figure that one out!

    • nomorespending says

      Our original thought was to use the rent from this (mortgage free) house, to pay for our rent in Portugal. But I’m not so sure we want the hassle of that these days. Lots to think about, but either way at least we’re moving in the right direction :)

  5. Fiona says

    I hope your Dad is doing much better now. Those things really do take time and so much energy.

    That’s a really interesting question about whether to continue the mortgage payoff or invest. We’re discussing that a lot here, too.

    • nomorespending says

      He’s okay, but I do spend 1-2 days a week with him now. Thankfully I’m able to.

      We’re ALWAYS discussing it and playing around with our spreadsheets. The main thing for us is the predictability of paying down our mortgage debt because we have a number and an end date. It’ll soon be decision time for 2014 :)

  6. Jane says

    There is always that dilemma – pay down or save! I did a bit of both for years then did a final push to rid myself of debt. I’m glad i did that and now I can concentrate on saving. As long as your net worth increases (which it will either way) then you are on the right track.