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!
Hi Becky Bee. I'm Sammyleia and I'm a fairly new blogger too. I found you via SFT's blog.I've just started budgeting too and I could kick myself for all the money that I've wasted over the years!
ReplyDeleteYou're hitting the big 4-0 this year and I'm hitting the big 5-0. Nothing like a milestone birthday to motivate you! :)
Look forward to following you :)
Btw your paintings are lovely!
Hi Sammyleia
ReplyDeleteThanks for your lovely comment. I know what you mean about all the money wasted over the years. I hate to think how much has just gone on stupid things that I really didn't need. But hey, that is all about to change! Really liked your website by the way. I had a go at following but it didn't work. It is probably me being dim, so will try again later!
Becky Bee I'm a newbie at this blogging business so I'm not sure why you're having problems following me. Do you have Google Reader? If I have problems I just copy and paste the blog address into my Google Reader and that always works for me. If you're still having problems please email me at sammyleiacreations@gmail.com and I'll see if I can help you figure it out.
ReplyDeleteHi Becky
ReplyDeleteFound you via Diary of a Tinyholder and have enjoyed reading about your adventures in budgeting. It amazes me how people don't seem to realise that by paying an extra £100 or so a month they are shorterning the length of their mortgage! My son bought his first house 5 yrs ago and was paying £700 a month for his mortgage, when interest rates dropped his repayments dropped to just over £300 but I persuaded him to carry on paying the original amount. On his last statement it showed that he had paid a massive £10,000 off the capital and sorterned the repayment time by 4yrs!! Needless to say he's going to carry on .
My gran used to say look after the pennies and the pounds will look after themselves and do you know what she was right! Good luck with your budgeting it becomes addictive.
Hugs Pene