I want to say a huge hello to SFT - my first real follower on my new blog!
It is because of SFT and reading her inspiring blog about becoming mortgage free and saving up for those important things in life, that got me thinking about my own finances. I am not great with money, but I am not that bad either. I am not in debt (thank goodness), but I never really know how much is coming in or going out. I save very half-heartedly, and usually spend it before I have saved much.
And when it comes to the mortgage, well, I just assumed that it is something I will have for the rest of my life. To be honest, I had no idea we were just paying off the interest (hangs head in shame).
So yesterday I decided it was time to get my head out of the sand and take a good, hard look at my finances. Hubby and I were home yesterday (kids both out), so we sat down with our bank statements and finances and for the first time had a really good look at our mortgage. At the rate we are paying into the mortgage account, I think we would be paying it off when I am 100. Not a good thought. So we have decided to start paying it off £1000 at a time. This would be coming from putting money aside, not spending when we don't need to, and changing our savings to go into the mortgage account (there is not much point having savings earning a pointless interest rate, when we could be paying off the house). By our reckoning, we got it down to 29 year - ok, more manageable. By adding an extra £100 a month into the account would slash the repayment time.
Why have I never thought about this before?! It is so clear and becomes achievable. I have been so happy today. Finally I know where I stand. And I think the idea of being mortgage free will stop me spending on all those little things that rapidly drain my purse.
My new budget for the month is £60 (food, bills, petrol etc have all been accounted for). So £60 is mine and I intent to do my damdest to stick to that figure and try to put a little aside every day.
Bring it on!