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Our plan to get serious with our mortgage attack starts with our budget. We’re not looking to cut out everything – staying is our digital TV package (NFL is my husband’s love outside of me and the rest of the family lol), and travel. Also staying is the current round of house renovations as we really need to finish this house! However, there are a few changes we can start making over the next few months, which if accomplished, could lead to budget savings in 2014.
Five Financial Mini Goals:
1. Gas and electricity costs. You may remember this cost going up to a whopping £171 a month earlier in the year. We’re nearly back up to date with this account, and the power company estimate we will spend £1,200 on gas and electricity over the next 12 months – potential saving £71 a month.
2. Phone costs. My iPhone contract is due to end in December and I’m not interest in upgrading. I plan to go onto a SIM only deal – potential saving £18 a month.
3. Gift Spending. This is just my personal battle not to overspend at Christmas – potential saving £16 a month.
4. Personal Spending. Again this is just my personal battle. I have ‘Enough’ – potential saving £20 a month.
5. Grocery Spending. I left this one until last because it’s such a biggy for me. I know I can reduce our grocery costs even further. I’m lazy in the kitchen and still buy far too much processed rubbish. If I can really get to grips with this over the next few months, it’ll help our budget…..and my diet! German supermarkets and stockpiling are definitely the way to go – potential saving £50 a month.
So that’s it! For the next 4+ months I’ll be working on reducing these five areas of spending as well as trying to achieve our year end goals.
I spent a long time in the car yesterday and all I could think about was our outstanding mortgage debt. More specifically I was trying to work out how to get my mind into ‘gazelle style’ payoff mode.
With my consumer debt I had a huge light bulb moment, and gazelle intensity arrived like a natural thing. I had a few wobbles here and there – as anyone does over nearly 5 years! – but in general I was very focused, and very tuned into what I had to do. But that hasn’t happened with our mortgage debt. With our mortgage debt I’ve been all over the place and my intensity has changed by the week!
So let’s try and stop that happening right now with a little blog accountability.
Today is day one of me adopting a permanent ‘gazelle like’ mindset to our mortgage…..and using the snowball and snowflake method our mortgage debt will be paid off by December 2017 at the very latest.
The facts and figures: (which have a permanent home on our Mortgage Freedom page)
TO DATE PROGRESS
– Original Mortgage: £138,485 (April 2006)
– Original term: 300 months (March 2031)
– Outstanding Balance: £75,950 (August 1st 2013)
– Starting Balance: £84,950
– Current Balance: £75,950
– Paid off in 2013: £9,000
A rough calculation is 52 months at £1,500 to clear the mortgage, but every month will be a little different.
Okay I’m off to list a couple of things on eBay. I swore off it a couple of weeks ago, but making snowflakes to channel to debt repayment is motivating, and I’m willing to give it another try.
*Snowball: Extra payment from regular income
*Snowflake: Extra payments from extra money earned
I’m in the process of getting an up to date pension statement from the government to see how many missed years (if any), of NI contributions I have.* I’m hopeful that there will still be a state pension when I reach that age (fingers crossed!), but for future generations, I’m not so sure.
And that’s why it’s so important to plan your own financial future.
We set our own baby steps to Financial Freedom a few years ago, and slowly but surely, we’re working through them. They may take longer than we thought to achieve, but if I’m honest, achieving Step One (paying off all my consumer debt) has already opened the doors to freedom.
What steps are you taking towards your own Financial Freedom?
*Prompted by this post at Monevator
* Net Worth figures are just house, cash and investments – pension figures not included.