I have been quite busy the past few weekends so have not had time to update my blog. After doing my calculations on the best way forward with paying off my mortgage or investing  (Calculations and calibrations ), I felt much better and have a direction to divert my efforts to post becoming debt free.

Last weekend I paid £1500 onto my credit card bringing the balance down to £3300. I decided not to go for the full £2000 as my lodger has not paid his rent yet (yes a continual problem – he does pay it but never on time!!). Again, the purpose of this was actively managing cash flow so I don’t need to spend on a credit card and can live off actual money in my account. Remember, I have deactivated my overdraft to prevent me from continually dipping into the red.

By putting constraints on my spending, I initially found it scary as I had become used to having money (debt) available no matter what. The end of the month seemed a long way off.  I now realise I was paying to have that ‘piece of mind’ which was actually just stress as I kept having a negative balance. The encouraging thing is I know it is temporary and I am going to get out of this rut and will have savings in the next few months.

Assets:

Flat: £450,000

Pension 1: £96,990

Pension 2: £4,506

Pension 3: £518

Investment: £1,800

ETF: £1007

Savings: £300

Debts: £3300

Mortgage: £259,000

Car loan: £12000