biachuntar
New Member
- Messages
- 1
Hello all.
I am a long-time reader but have never joined or posted before now. I have been working and paying rent month-to-month the last several years since I finished studying, and in the typical college graduate style I didn't do much saving. In the last six months I started a new career as a civil servant with an EU agency here in Ireland. EU civil servants only pay a "community tax" instead of national tax (basically an employer tax at a very low rate) which basically leaves that I only have about 15% deductions per month
Long story short, I am left with more liquid cash than I know what to do with, I am at the stage in my twenties when I am starting to think more long term, and would greatly appreciate any advice re: financial planning or making my situation more solid in future.
Personal details
Age: 27M
Children: None
Income and expenditure
Annual gross income: €66,000
Monthly take-home pay: €5,100 approx. (generously low deductions on net pay due to EU civil servant tax rules)
Employment: Fixed-term public sector
Are you saving/spending: Currently I have very little outgoings and am saving.
Summary of Assets and Liabilities
Assets: None
Pensions: I am in the employer pension scheme, which (to make a long story short) basically works the same way as the Irish civil service pension (I'm not making AVCs although I'm not sure this is a priority at my age)
Liabilities: Rental Apartment - approx. €1,500 per month to cover rent and all utilities (I am anticipating that my partner will move in this year, and afterwards this cost will be split somehow between the two of us, possibly proportionally)
Family home mortgage information
None
Other borrowings – car loans/personal loans etc
Credit Union Loan @ 4.5% - approx. €3,000 balance remaining (usual repayment is around 200 p/m
No credit cards
Buy to let properties
None
Other savings and investments:
Saving Account - €4,000 (Emergency Fund)
Credit Union - €5,500 (Long Term Savings)
Other information which might be relevant
Private health cover, life cover and income protection are covered by my employer, so I don't have a need for private insurance or life cover.
What specific question do you have or what issues are of concern to you?
My main question is what would you recommend for someone in the above situation? I'm aware that my situation is probably somewhat unique due to the tax situation, and is quite generous in terms of disposable cash, but I'm also quite conscious that it would pay to be pragmatic with planning. Usually I'm left with about 3,500-4,000 per month to do whatever I want with (since not all my utility bills are monthly)
I'm unsure if I'll stay in my current position for long than 5 years, so my thinking is that I should get my ducks in order now while I have the opportunity and the breathing room to save aggressively. One reason I am eager to take advantage of the current situation is because it might not be permanent in terms of tenure (I am currently fixed term for 5 years, although I will most likely be able to renew that current fixed-term period again at least once before going anywhere, if I wanted)
I'm aware that my liabilities for rent and bills are quite high, and I could no doubt get a better deal, but the place I'm renting is ideal for me in literally every way right now, and has hugely improved my quality of life since I moved in. Proportionally I am paying around the 33% mark for accomodation, and this is OK for me right now. I do realise it is a big outgoing but it's hard to get away from it in Dublin, so would appreciate any advice anyway.
Eventual home ownership is a goal / pipe dream, but I feel like I am just starting out on the financial journey and it is hard to envisage any sort of deposit or mortgage right now. I suppose my main goal towards that is to save as aggressively as possible with the aim of having a deposit.
I am also unsure of how to best deal with savings - I imagine I'll be able to keep up my current trend of saving at least 1-2k per month for the foreseeable future, which leaves that I could compound savings relatively quickly. I am not sure leaving my savings (excluding emergency fund) in the bank or CU is a good idea since its' just inflating away, or if there is a smarter way to make them work but I am starting to read about the possibilities here (state savings, investment, etc.)
In short, I'm aware that I have the advantage of time on my side, and a favourable income and tax situation, so ideally I'd like to leverage it and build savings and wealth as much as possible in the next couple of years to be able to work from that in future. That all said, I'm not the most experienced with finance and truthfully it's a bit daunting for me to be left with so much cash at the end of the month that I don't know how I should spend, save or invest it (having been a broke graduate intern up to now!)
I would greatly appreciate any advice anyone might have, or any tips on how I can most effectively get the most out of this financial situation while I can
I am a long-time reader but have never joined or posted before now. I have been working and paying rent month-to-month the last several years since I finished studying, and in the typical college graduate style I didn't do much saving. In the last six months I started a new career as a civil servant with an EU agency here in Ireland. EU civil servants only pay a "community tax" instead of national tax (basically an employer tax at a very low rate) which basically leaves that I only have about 15% deductions per month
Long story short, I am left with more liquid cash than I know what to do with, I am at the stage in my twenties when I am starting to think more long term, and would greatly appreciate any advice re: financial planning or making my situation more solid in future.
Personal details
Age: 27M
Children: None
Income and expenditure
Annual gross income: €66,000
Monthly take-home pay: €5,100 approx. (generously low deductions on net pay due to EU civil servant tax rules)
Employment: Fixed-term public sector
Are you saving/spending: Currently I have very little outgoings and am saving.
Summary of Assets and Liabilities
Assets: None
Pensions: I am in the employer pension scheme, which (to make a long story short) basically works the same way as the Irish civil service pension (I'm not making AVCs although I'm not sure this is a priority at my age)
Liabilities: Rental Apartment - approx. €1,500 per month to cover rent and all utilities (I am anticipating that my partner will move in this year, and afterwards this cost will be split somehow between the two of us, possibly proportionally)
Family home mortgage information
None
Other borrowings – car loans/personal loans etc
Credit Union Loan @ 4.5% - approx. €3,000 balance remaining (usual repayment is around 200 p/m
No credit cards
Buy to let properties
None
Other savings and investments:
Saving Account - €4,000 (Emergency Fund)
Credit Union - €5,500 (Long Term Savings)
Other information which might be relevant
Private health cover, life cover and income protection are covered by my employer, so I don't have a need for private insurance or life cover.
What specific question do you have or what issues are of concern to you?
My main question is what would you recommend for someone in the above situation? I'm aware that my situation is probably somewhat unique due to the tax situation, and is quite generous in terms of disposable cash, but I'm also quite conscious that it would pay to be pragmatic with planning. Usually I'm left with about 3,500-4,000 per month to do whatever I want with (since not all my utility bills are monthly)
I'm unsure if I'll stay in my current position for long than 5 years, so my thinking is that I should get my ducks in order now while I have the opportunity and the breathing room to save aggressively. One reason I am eager to take advantage of the current situation is because it might not be permanent in terms of tenure (I am currently fixed term for 5 years, although I will most likely be able to renew that current fixed-term period again at least once before going anywhere, if I wanted)
I'm aware that my liabilities for rent and bills are quite high, and I could no doubt get a better deal, but the place I'm renting is ideal for me in literally every way right now, and has hugely improved my quality of life since I moved in. Proportionally I am paying around the 33% mark for accomodation, and this is OK for me right now. I do realise it is a big outgoing but it's hard to get away from it in Dublin, so would appreciate any advice anyway.
Eventual home ownership is a goal / pipe dream, but I feel like I am just starting out on the financial journey and it is hard to envisage any sort of deposit or mortgage right now. I suppose my main goal towards that is to save as aggressively as possible with the aim of having a deposit.
I am also unsure of how to best deal with savings - I imagine I'll be able to keep up my current trend of saving at least 1-2k per month for the foreseeable future, which leaves that I could compound savings relatively quickly. I am not sure leaving my savings (excluding emergency fund) in the bank or CU is a good idea since its' just inflating away, or if there is a smarter way to make them work but I am starting to read about the possibilities here (state savings, investment, etc.)
In short, I'm aware that I have the advantage of time on my side, and a favourable income and tax situation, so ideally I'd like to leverage it and build savings and wealth as much as possible in the next couple of years to be able to work from that in future. That all said, I'm not the most experienced with finance and truthfully it's a bit daunting for me to be left with so much cash at the end of the month that I don't know how I should spend, save or invest it (having been a broke graduate intern up to now!)
I would greatly appreciate any advice anyone might have, or any tips on how I can most effectively get the most out of this financial situation while I can
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