We’ve been chasing a ‘below £1,000′ basic monthly budget for as long as I can remember. It
probably definitely won’t happen until the mortgage is paid off, but having that goal in mind really keeps us focused on our monthly ‘nut’.
For us a low monthly budget is the key to our future financial freedom…….of course looking at the numbers below we could, and would if we had to, go a lot lower in some areas.
I did a similar budget comparison back in 2012, and here is the up to date version:
I made a couple of corrections to the figures – I missed my mobile phone costs off in 2012 – but in general this is how everything looked at the start of a new year. I’ve also added in what the budget would look like without the mortgage - the main reason for doing this exercise.
A couple of notes:
- The miscellaneous spending is set on the high side to allow a little leeway – this could be reduced if needed.
- Same goes for the gift category – this would be reduced if needed.
Looking forward to the future, and hopefully the time when we will be working a rough version of the end budget column……..fingers crossed as I’m not counting any chickens!
- We aim to be car free
- We aim to rent or sell our house in the UK to cover the cost of rent in Portugal
- M hopes to start working part-time in 2024*
* Basically we have 10 years to get our **** together!
Let me know, are you already planning your future budget?
I’m wrapping up our 2013 goals in order to clear the decks for our 2014 budget!
Financial Goals for 2013: (Goals updated in August)
- Reduce our mortgage balance to less than £72,000 The final balance on our mortgage for 2013 is £73,500. Our original goal was to reduce our balance by £25,000 – we managed £11,450. Way off goal, but still progress
- Complete and pay for all house repairs - Approximate cost £4,000. All done and goal completed, although we’ve spent £8k+ this year.
- Spend no more than £2,500 (originally £2,000) on groceries – 2013 Total: £2,614.34/£2,500 a monthly average of £217.86
Ongoing Net Worth Goal: Increase NW to £125K in 2013
We sneaked in!
We don’t include pension savings in our NW as we both have (now frozen) Final Salary Pensions. However following a recent pension change, we now have online access to my husbands (new) scheme and will be including this in our NW going forward.
2012-2013 increase: £14,539
Overall it’s been a very good year for our finances and we’re very grateful. Thank you for your continued support xoxo
2014 Financial Goal: Reduce our mortgage by £15,500
We’re trying to pay down our mortgage debt as soon as possible using the snowball and snowflake method. Right now our goal is to be mortgage free by the end of 2017.
A breakdown of our mortgage:
PROGRESS TO DATE
- Original Mortgage: £138,485 (April 2006)
- Original term: 300 months (March 2031)
- Outstanding Balance: £73,500 (Dec 1st 2013)
- Paid off to date: £64,985
- Starting Balance: £73,500
- Target End Balance: £58,000
- Paid off in 2014:
- Starting Balance: £84,950
- End Balance: £73,500
- Paid off in 2013: £11,450
- Starting Balance: £106,322.34
- Ending Balance: £84,950.00
- Paid off in 2012: £21,372.34
2013 was not as good as 2012, but we’re beyond happy to have paid off over £32k in the last two years…..now it’s time to focus on 2014!
OUR GOAL FOR 2014 IS TO REDUCE OUR MORTGAGE DEBT BY £15,500
Do you plan to pay off debt in 2014? Have you set your goal yet?
Things have changed a little this year and in August we made a few changes to our 2013 goals.
New Financial Goals for 2013:
- 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.
- 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!
- 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.