So here we are, the first month of 2022 down and I have only just realised I didn’t really do much of an update on where we were at on our journey recently.
I thought that now is as good as time as any and it is time to be realistic on just where we are in our journey.
We are still ploughing on with the mortgage overpayments this year. At the end of last year, we were able to negotiate a new rate as we came to the end of our term and this freed up an extra £140 a month which we have put straight back onto the mortgage.
Although we still have debts to pay we have decided to stick with the overpayment amount we are at so we can ensure this debt is going down as quickly as it can. Currently, our overpayment will reduce 12 years and 2 months off the mortgage if we continue at the rate we are going.
For us, our mortgage is the biggest goal we want to achieve. Long term we are planning to move and probably extend the amount on our mortgage but the more we are able to clear now, the more equity we will have moving forward.
Last year we managed to clear £6,500 of debt, not including our mortgage.
To be honest, I am a little disappointed in this, I thought we had achieved so much more. Part of this debt is the Christmas debt that we spent and before I get any lectures, I know you shouldn’t go into debt at Christmas but there were a few things I wanted to get and I didn’t want to stop the overpayment to get them!
This year though I have pretty ambitious plans for our money, I am aiming to pay off £13,000 worth of debt, on top of the monthly payments we are normally making.
With these cleared we will have about £500 extra to play with and start snowballing onto further debts.
We are working really hard this year to increase our income but this is not all about working more hours as such but working smarter. With both of us now earning income from blogs, we are hoping to increase our joint revenue and use this to pay off the debt and move forward with plans.
For us, it is about finding the right balance between family and saving for the future. Yes, we may be able to work more hours but if we do that and are unable to enjoy our lives at the minute, then what is the point? We have children and dogs that need us to be present, so we will work on the best balance for us. It is however our year for pushing on and making as much income as we can.
We know that we are not perfect in our journey to early retirement and the choices we make may slow down our journey but that is what this is, it is our journey. Every day we are living this journey and taking the steps to make it work for us. This doesn’t mean we are getting it right or wrong, it just means that we are making the right decisions for us. I find social media can be so damaging when you are facing things like this as there is always someone out there that can do it better/quicker/smarter but they are not you and it is important to remember that when you are working your way through.
Baby steps every day is the way forward for you and everyone, just make those steps count for you.
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