Early 30s and not sure what's best to do for the future
Discussion
Olivera said:
You've made no reference whatsoever to any hobbies, pursuits or what you enjoy. So, what's the point of overpaying so much? What are you going to do with the additional money in 6 or more years? I say use at least some of the money doing what you enjoy, and now not in 6 years.
I didn't know I was obliged to do this. I'm sorry.I enjoy cars, so I bought a brand new one last year, then spent some more money on giving it some more power. I enjoy track days, holidays and keeping fit. I'm taking part in another Ironman in France later this year too. So yes, money does go on stuff I enjoy, and none of those interests are especially cheap.
Why not overpay if I can afford to and still maintain a decent quality of life? Why choose to spend money on the interest on a mortgage? Why choose not to have the security of owning a home as soon as possible, and enjoy the choices it'll afford Vs having debts and commitments?
thenortherner said:
After years of failing to make the best use of my money - not spending it wisely rather than getting into any form of debt - I finally came to my senses a bought my first property in November 2015.
I scraped together the deposit from my own savings and got a fixed rate mortgage for 3 years at 2.89%. Including fees the total borrowing came to around £113K. Ever since I've become completely adverse to risk, debt and any form of fixed outgoings that can't be switched off. Getting a mortgage really has changed my outlook.
Just over 12 months on and I'm down to just £82K from £113K with another £2K to be overpaid at the end of this month. A chuck of this capital repayment came from a sum I received when I lost my job mid way through last year, and did the sensible thing instead of buying a Lotus.
Anyhow, I've really got the bit between my teeth now and want the house paid off within 6 years, basically before I'm 40.
I've no dependants and I earn £50K per year. I've chosen a lifestyle and property that's well within my means to allow for a sizeable amount of disposable income and no sleepless nights as far as mortgage payments go - I think it's around £390 a month now. I hate being tied into contracts so I've done everything I can to avoid them e.g. no SKY TV, a SIM only phone deal etc. I owe a relatively small amount on a personal loan to fund my car, but other than that, nothing.
At the moment I'm paying off an extra £1K per month in mortgage overpayments. Mortgage overpayment calculators show that if I continue doing this I can be mortgage free in around 6 years.
I'm just not certain doing this is the best use of my money. I've no savings since a lot of my spare income goes into overpayments, and my pension is worth literally nothing. As said before, I wasn't too sensible in the past so never paid more than the minimum 1% contribution.
I'm now a bit concerned for the future with having no pension.
My current line of thinking is to get the house paid off asap and then once that's done, put the same amount into a pension as I'm paying in mortgage and overpayments combined, circa £1390 a month.
I know next to nothing about pensions, other than work contribute and match up to 2.5%, though I could read up when the time comes and the house is paid off.
Any thoughts appreciated.
Thanks,
Max out your pension then commit to on top of that saving 20 - 25% of your net pay to either paying down your mortgage or investing in a cheap index fund for stocks, such as that offered by Fidelity or Hargreaves Lansdowne. I scraped together the deposit from my own savings and got a fixed rate mortgage for 3 years at 2.89%. Including fees the total borrowing came to around £113K. Ever since I've become completely adverse to risk, debt and any form of fixed outgoings that can't be switched off. Getting a mortgage really has changed my outlook.
Just over 12 months on and I'm down to just £82K from £113K with another £2K to be overpaid at the end of this month. A chuck of this capital repayment came from a sum I received when I lost my job mid way through last year, and did the sensible thing instead of buying a Lotus.
Anyhow, I've really got the bit between my teeth now and want the house paid off within 6 years, basically before I'm 40.
I've no dependants and I earn £50K per year. I've chosen a lifestyle and property that's well within my means to allow for a sizeable amount of disposable income and no sleepless nights as far as mortgage payments go - I think it's around £390 a month now. I hate being tied into contracts so I've done everything I can to avoid them e.g. no SKY TV, a SIM only phone deal etc. I owe a relatively small amount on a personal loan to fund my car, but other than that, nothing.
At the moment I'm paying off an extra £1K per month in mortgage overpayments. Mortgage overpayment calculators show that if I continue doing this I can be mortgage free in around 6 years.
I'm just not certain doing this is the best use of my money. I've no savings since a lot of my spare income goes into overpayments, and my pension is worth literally nothing. As said before, I wasn't too sensible in the past so never paid more than the minimum 1% contribution.
I'm now a bit concerned for the future with having no pension.
My current line of thinking is to get the house paid off asap and then once that's done, put the same amount into a pension as I'm paying in mortgage and overpayments combined, circa £1390 a month.
I know next to nothing about pensions, other than work contribute and match up to 2.5%, though I could read up when the time comes and the house is paid off.
Any thoughts appreciated.
Thanks,
http://www.moneychimp.com/calculator/compound_inte... Check out how much money you could have in 20-30 years at a return of around 4-7% per year by plugging in your own situational numbers.
Might be worth chucking a few quid in cryptocurrencies as well as fun play money- Bitcoin, Ethereum, MIOTA, XRP
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