Where did I go wrong financially?

If it makes you feel better I am 38 earn 31 grand and still have 65% of my mortgage to clear and my car loan finishes in June after paying it for 4 years. I have less than £800 in savings. You are doing fine. Most people have 2 wages or help from inheritance. I have none of them and I am proud of what I have achieved.

I think they’re all probably bending the truth a little. I don’t know many 38 year olds who have paid off their mortgages unless they s came into some inheritance/lump sum.
Theres probably odd couple of £100’s on credit cards dotted about or overdrafts dipped into that they won’t mention either.

I wouldn't say you have gone particularly wrong and I expect the people you think are more sorted financially have the bank of mum and dad to rely on. However I am interested in where your money goes and why you only have 4k in savings which by the sound of it is one month's salary. I would be looking to save or invest at least 1k a month on that kind of salary.

Make some friends that aren’t bankrolled by their parents.

Does it matter what others have done??

You are in a significantly more privileged position that most people your age. You're doing good financially, just crack on and ignore what others are doing or achieving, its none of your business really and certainly not something for you to worry about and compete with.

I don't understand the point of this post to be honest. You asked where you went wrong, but seem to actually want us to help you understand why your friends are better off than you? How are we meant to know! Maybe they work harder/longer hours, maybe they have always had 2 incomes, maybe they invested, maybe they've had help, maybe they're just better at finances than you? Who cares, really..why does it bother you so much?

I’m 43 and know nobody who is mortgage free- it’s mind blowing to me that you know so many who are!!! As for the car to own a car outright is pure luxury unless you bought a car that breaks down regularly!!! And all the people saying it’s because op is single, surely op is comparing like with like or dividing accordingly?

There will be gifts and help and inheritances involved.

I realised when I scraped onto the property ladder with a first mortgage at 35, with a single income, that I knew only one other friend who had bought without help and whilst single.

My mates all seemed to meet partners with rich in-laws!

Cars are such a sticking point. So many couples I meet through work seem to think it's normal to be paying £600-£700 a month between them so they can both drive a new VW.

I mean it might not be in the very near future, but it depends what your car payments are: e.g. I bought a car for £5k 6 years ago and expect to run it for the next 6. So even if it takes a long time it might end up making a significant difference to your budget at the point you can stop making car payments of ? a month - they can be hundreds of pounds, whereas my second hand car will have cost me £70 a month on average so far, and should end up at £35 a month. Tyres and servicing etc end up about £400 a year give or take.

Let’s be realistic. If friend are with partners then there maybe more income. How do you know they have not had support from families they are not talking about? Cars maybe on finance ,they may not be making pension payments as you can opt out, how small are small mortgages? Did they buy before you? They may have been able to over pay

however on 68k you should be able to save more if you wish

How much do you overpay? We are a similar age and similar (but lower) joint salary. We overpay the maximum each month. We didnt always but as you pay off a greater LTV, it gets easier x

You're on a good salary, and I imagine Midlands may be a relatively cheap place to live. So, TBH, I'm a little surprised you don't have higher savings

This helps me -

(1) all direct debts set up for 2 days after pay day, including any payments to savings accounts/overpay mortgage. Whatever's left is fun money

(2) any salary increase, only keep small proportion as extra treat. Mostly, use it to boost savings

(3) previously had lodgers

(4) modest holidays, often visiting friends and family

I am in a partnership but paying off our mortgage at 35 and 37 was due to investments doing well but it was relatively high risk. All in all it has worked out well. Issue with high risk ones is be prepared to lose as well as win. We don’t invest like that anymore.

I can only echo what other people are saying - it's very rare to be mortgage free in your late 30s.

I was mortgage free in my mid 40s because I bought a smaller house than I could afford, on a 20 year mortgage rather than 25, my parents originally gave me the deposit for my first flat and my father died when I was 44 and I was able to pay the remaining £60K off.

DH and I have always lived within our means, don't take on debt except mortgage, and have bought our cars outright. That means second hand cars that get you from A to B, not status symbols.

Also when you split up with your previous partner you presumably had to go into two properties? That is expensive!

If you not over paying both your mortgage and your pension on that salary with no dependents than your have zero financial sense. It baffles be that you are an accountant. Start doing the above asap.

Chill out. The answer is that all those who have almost paid their mortgages off either got help with the deposit or got money from family to pay down the mortgage. Or both. Guaranteed.

There's no such thing as behind the curve because you just don't know what life is going to throw at you. Someone might be mortgage free by 40 and dead by 50 so never get to enjoy a retirement or whatever. It doesn't matter, stop panicking.

We paid our mortgage off a couple of years ago in our early 50s - and that's with a couple of lump sum inheritances - and we're unusual amongst our friends for having paid it up.

You have a good lump of equity already in your property, you earn a great salary and are putting a decent amount in your pension.

I'm not sure what the issue is ?

You sound in an amazing position. I'm 42 and have 60 grand equity. Definitely don't have the mortgage paid off!

OP, come on, be honest, what the total of your take home pay, minus your mortgage, overpayment, bills and car payment and what is left over?

As someone with a joint income close to yours, I can tell you that we put 2k into the mortgage each month, have no car finance and still have fun money left.

Perhaps your friends prioritise the mortgage. And thats ok! If you want to then you can to with any money that is not committed at the end of the month. But if you choose other things then you need to be ok with that.

I earn a good bit less than you and have nearly 50k in savings and zero debt.

Never got any inheriatance, help from anyone.

I’m not an accountant but … in terms of the car would it not make more sense to take out a loan to buy a car and then pay that off so that you have something to show for it at the end of the loan period vs finance?

You are an accountant you say? Really?

And you are clueless about your pension? How much does your employer contribute? Have you never done any projections of whether your pension is likely to be enough? What are your pension savings invested in? Why are you focusing so much on your mortgage whilst ignoring your future retirement?

So many questions...... None of this makes any sense!

Comparison is theif of joy. Enjoy your life without worrying about what other people are doing

Came to this thread thinking I feel the same…. OP is in the same position as the people I’m envious of!

Same age, just managed to start earning £40k this year and currently at work in my second / evening job which I’ve taken to pay off my debt quicker…

will read back through the thread for tips but seems I’m mega behind as I thought