Things I learnt about money in 2020

2020 has taught me a lot of things, but this year I have learnt more about our finances and mortgage than ever.

Budgeting was a big thing for us this year and we have finally got a good grip on our finance. If you are still struggling to get started on this, why not consider a monthly budget planner. This post has a great budget planner for you to download and get started.

When we first got our mortgage back in 2007, we were young and didn’t really understand quite how much of a debt we were taking on. We understood the in’s and out of the mortgage and how it worked but I don’t think we really understood how long it would be to pay it off and the amount of interest.

Then the pandemic hit, there was lots of uncertainty over jobs and rightfully many people were concerned over their biggest outgoings, their mortgage. Here in the UK, you were able to take a 3-month mortgage break, which in turn lead to up to 6 months break for those who really needed it. Which in one way was a great relief for many, but in other ways, it has pushed more months on to the terms of mortgages for many.

With everything that has gone on this year though, I have been able to actually sit back and assess our finances, it has also allowed us time to sit down and look at our mortgage. We would like to retire before we hit 60, hopefully allowing us time to enjoy life a little without the restraints of work commitments. Although it is a long way off, we are starting to plan for it now and the only way it will be achievable is by clearing our mortgage early. Using a calculator like this, we have been able to see what sort of impact overpaying our mortgage may have.

No matter where you start with your overpayments, every little payment will help. We have started small this year and started overpaying by just £30, it didn’t take years off the mortgage but it started to eat away at the months. As we head into the close of the year, we are now overpaying by more and it is going to currently take 9 years off the mortgage. This overpayment has been built up this year as we have cleared some debts or got a little increase in salary, we threw the money straight on the mortgage so we were not missing the money as we never had it.

Before we retire we are looking to move to a house with a little more space, it will be some time before we do, however it has not stopped me from shopping on Rightmove most days! This has also spurred me on though to continue with our overpayments and making as much money as possible so it becomes a reality even sooner!

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