We have just managed to pay 10% off our mortgage!
This time last year we owed the building society £105,000.00
We then remortgaged in September 2007 for £85,000.00 paying off £20,000.00
This time we scraped together £8,500.00 (the 10% allowed in 1 year) and now we owe £76,500
Slowly but surely it is coming down!! It was very scary using up our savings, there are so many other things that the money could be used for but we decided to follow our goal which is to be financially free by retirement.
Now it is back to building up the savings again! We have to find the next 10% £7,650 by next August. We have learned that every little helps even the 20p saved by not buying that second hand book and getting it from the library instead. What with increasing food and fuel prices and an extra mouth to feed this won't be easy but I'm not giving up now! What we are doing is to put money we would definately have spent before straight into savings so if we would have found the money to eat out before but instead I cook then we take off the cost of the ingredients and save the difference, if we go to the market for the 3 books for £5 offer but then decide to go to the library instead then that is £5 saved. In the last 2 days we have saved £15.20 towards our goal.
10 comments:
Well done!
It really is surprising how much all the little savings add up isn't it? People think that because I'm on a low income I should be really hard up and yet I don't feel 'poor' at all. I have good food, an adequate home, enough clothing and am able to pay down some debt and save a little each month yet I have friends earning three times what I have who are always pleading poverty and never have a penny in savings. It really is a matter of priorities, isn't it?
Congratulations. You're obviously very determined - well good on you. I really do think it makes sense to use whatever capital one has to repay mortgage. In this day and age - ie of jobs starting to look distinctly insecure again - it makes even more sense. Reason - one is only allowed a certain (very low - and NEVER uprated for inflation amount of savings before getting disqualified from benefits due). My personal rule is never to have more than £3,000 savings - well, right at this moment I only have a total of £400 in various bits and bobs of savings anyways - but I'm aiming for £3,000 basically (ie enough to live on for 6 months for me) - but literally not a penny more than that because the D.W.P. would start having a go at the benefit I would be due for if I lost my job.
Money you have already spent before any possible job loss (before you could possibly provably have known that job loss would occur) is safely yours. So - if you'd kept that money in savings it would be at risk - but, having used it to pay back mortgage capital, its safely yours no matter what. Very wise.
Regarding Sharon's point on people pleading poverty - its one of my pet bugbears that people can do that in one breath and be doing something like having loadsa kids, smoking, going out for an unnecessary car trip, etc in the next breath. It does devalue the efforts of people who really dont have enough to live on - as its difficult to "sort the wheat from the chaff".
Wow well done! I love to see mortgage's coming down.
Brilliant!
Thank you! We are glad we have managed it but still have a long way to go!
@ sharon - It is amazing how much the pennies add up, I think I have finally convinced Mr C about that! lol!
@ ceredwen - Yes we are pretty determined and very stubborn (well me anyway!) I too get a bit impatient with folk who complain about being broke while buying luxury food items and cars. We cook from scratch most days and possibly have the oldest car on the block! lol
@ move to portugal - You must take some of the credit for inspiring me to do this! Once we realised it was possible there was no stopping us, funny how it had never occurred to us that this was possible before!
CONGRATULATIONS!!!!!!
I think, you've hit the nail on the head re debt/savings/paying off the mortgage, even 20p counts!! I find it really hard when people comment on why they can't save like I do (despite the fact they pay 1/2 the rent I do) when they are still buying books, allowing several hundred pounds a month in spends etc, when really working on your finances every single penny counts!
So proud of you, that's brilliant!!
Hi Catz
Well done to you! It is definitely coming down.
Simon and I forego almost anything and everything 'unnecessary' to scrape out £499 every month as an overpayment to our mortgage. It is the hardest thing I've ever done but every month the mortgage is dropping by £1000 which is fantastic.
It will be worth it Catz, keep it up.
jennifer
Oh, flippin' well done Heather. I think being frugal is a bit like losing weight - EVERY LITTLE THING helps. I'm OK with the frugal bit but sadly useless at losing weight.
Thanks for all the encouragement! it seems like quite a mountain to climb to get the next 10% paid off but I'm not going to let that stop me! lol!
Hi
Found your blog from a comment you left on down to earth.
Way to go girl! Frugal living does get addictive, we have been on our journey for 4 years now & doubt we will change. But saying that I sneaked a magazine this week - and you what - nice but not really worth it.
Nice to meet you!
Leanne NZ
Hello Leanne!
Thanks for looking in! Spookily enough I had just found your blog last night and was reading about little Lucy lamb. You are all working so hard looking after her and I will be keeping my fingers crossed.
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