42 very bad with money

Gordon Gekko

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5,705
Do a spreadsheet and analyse where the money goes. Then identify lines that can be reduced and ones that you don’t want to reduce. Use Revolut as well; great for keeping track of discretionary spending. And be realistic.
 

SPC100

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943
Ive pretty much resigned myself to ever wanting kids or getting married

I agree with automatically sending money to a savings account the day it arrives in your bank account. Or alternately have your company pay your salary into a new account, and only transfer from that into your current account your budget for the month.

I agree with getting control over your relationship with Alcohol (assuming you are spending 30 euro a day on drink).

I know this is ask about money, but 'resigned' sounds like this is not your preference, and that makes my heart go out to you.

If you want a partner and/or kids you absolutely still can have that, but you will have to work to get it.

Please don't give up hope.
 

Bronte

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The thing that screams at me is loneliness. I suggest making more of an effort there before it gets too late.
 

DBL2018

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We use the good budget app and have done for a couple of years now. We have cleared down most of our debt apart from the mortgage and are now saving regularly. We have been a bit rubbish with money, high salaries but good at spending. Our ten envelopes have really focused the mind.
 

lucashood1977

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Ive managed to save 2k from my earnings last month and am confident i can save another 2k this month and every month going forward. Im doing this whilst also paying off a car loan. How long do you think the banks will need to see this new habit before they will consider me for mortgage ?
 

Introuble83

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206
Ive managed to save 2k from my earnings last month and am confident i can save another 2k this month and every month going forward. Im doing this whilst also paying off a car loan. How long do you think the banks will need to see this new habit before they will consider me for mortgage ?
I would imagine 12 months would be sufficient
 

noproblem

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2,681
Think about buying an apartment, would suit your lifestyle now, and with what you've told us, into the future as well. At 42 you need to get your skates on as regards getting a mortgage. I'd imagine any good banking person would be wondering how you left it until 42+ to start putting a few bob aside. I sure would.
 

RedOnion

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Ive managed to save 2k from my earnings last month and am confident i can save another 2k this month and every month going forward.
Firstly, well done. That's a big saving once you make the decision!
I would caution whether saving 2k per month is sustainable.

If you're aim is to buy a property, I'd suggest setting yourself a budget. Work out what the mortgage repayment would be if interest rates were 5%, over 22 year term, as you're already 42.
Set up a regular savings account, and automatically put in that much every month. Don't touch the money in the account.
Check if there's anything else showing up on your bank statements that might be a red flag - 1k transfers to gambling sites, etc.
Make sure your rent payment is easily identified on your statement. The bank will consider this as part of your affordability assessment, but only if you can show it being paid every month.

After 6 months you can start a mortgage application.

You need to work out how you'll have 10% deposit, because that'll take more than 6 months. Together with your monthly savings, there is also the Help to Buy scheme, but the current 'enhanced' HTB is due to expire at the end of the year, although it might be extended in the budget.
 

SPC100

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943
Are you better off paying off the 11k cu car loan. Or saving up cash? What is the interest rate on the loan?

Normally I would say pay off the loan first. But if mortgage affordability is not an issue, and you are in a rush to buy a home, i guess saving the cash for deposit makes sense short term.
 

SPC100

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943
Oh and big congratulations for making the first step.

Don't beat yourself up if you can only save 1500 some months.

Have you automated the saving, so you don't have to take any action and the saving just happens?
 

lucashood1977

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9
Firstly, well done. That's a big saving once you make the decision!
I would caution whether saving 2k per month is sustainable.

If you're aim is to buy a property, I'd suggest setting yourself a budget. Work out what the mortgage repayment would be if interest rates were 5%, over 22 year term, as you're already 42.
Set up a regular savings account, and automatically put in that much every month. Don't touch the money in the account.
Check if there's anything else showing up on your bank statements that might be a red flag - 1k transfers to gambling sites, etc.
Make sure your rent payment is easily identified on your statement. The bank will consider this as part of your affordability assessment, but only if you can show it being paid every month.

After 6 months you can start a mortgage application.

You need to work out how you'll have 10% deposit, because that'll take more than 6 months. Together with your monthly savings, there is also the Help to Buy scheme, but the current 'enhanced' HTB is due to expire at the end of the year, although it might be extended in the budget.
Thankfully apart from spending 48 euro a month on the lotto gambling has never been a vice of mine.
What price range are you considering for your home?
Im in 2 mindsets here . I gross around 70k a year and where I'm living you can get a modest 2-3 bedroom house for 140k however I am wondering if I should go for something nicer and more expensive. Im not sure how much of a mortgage the banks would agree to give me
 

Clamball

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301
Congrats on taking good steps last month, you must be delighted with yourself. So you said you are bad with money so pace yourself and see how you keep saving in the next 5 months before you commit to being able to afford a certain payback for a mortgage. You have to be confident you can make the mortgage payment as well as the bank. Don’t base your decisions on the first month. Let us know how you get on next month.
 

so-crates

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Thankfully apart from spending 48 euro a month on the lotto gambling has never been a vice of mine.

Im in 2 mindsets here . I gross around 70k a year and where I'm living you can get a modest 2-3 bedroom house for 140k however I am wondering if I should go for something nicer and more expensive. Im not sure how much of a mortgage the banks would agree to give me
Well done on starting your savings. As others have said, it may not be comfortable to sustain that level of saving long term so don't be too hard on yourself if you find it slips back to a more liveable level (e.g. 1.5k).

A couple of thoughts.

First off, your pension provision, you have a pension through work but I wonder if you have reviewed it and decided whether it is adequate. I don't know if it is defined contribution or defined benefit, whether it is an occupational pension or a PRSA, what level of contribution you are currently making, whether your employer will match contributions and if they do to what level, etc. If you are currently contributing the maximum % allowable tax free (for your age that is 25%) then you shouldn't need to review it, but if you are contributing 5% then it may be worth considering contributing more. If not immediately (as you want to save for a deposit for a house first) but it should be something you keep in mind going forward. Because of the tax credit, retirement savings are particularly good value but if your first priority is getting a house then that is where your focus should be for now. If you want to look at your pension provision, start with a calculator like this one https://www.pensionsauthority.ie/en/lifecycle/useful-resources/pension-calculator/

Secondly, I take it you are planning to live in the property, at least in the medium term? Even if down the line you decide to rent it out, as it will be your home for a time, so buy a place that suits you. Buying a cheap property with a view to rental and living there may not be money well spent. You earn well enough to afford something besides the cheapest property on the market and if you are going to live there then you should afford yourself a home you will be happy to live in. What do you see in a home for you? Is a garden important? Do you want scenic views? Do you want a home office? Will you need entertaining space? Will you have people staying? Do you want a period piece or is a new build more to your taste. As you are 42, there is a limit as to how long of a mortgage they will give you now, that will decrease over time, so it is possible that the most you will be able to borrow will be for this property. I am not advocating over-stretching to a €300k-€400k property but don't confine yourself to the €130k-€140k bracket either. Take your time looking. You have to build up a deposit anyway and you should also build up a fund for fees and furnishing so that you are not moving into an empty shell with empty pockets when you do get the keys to your first place.
 

_OkGo_

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Im in 2 mindsets here . I gross around 70k a year and where I'm living you can get a modest 2-3 bedroom house for 140k however I am wondering if I should go for something nicer and more expensive. Im not sure how much of a mortgage the banks would agree to give me
My rent is 600 a month.

What are you currently renting for €600/m? Are you renting your own place or sharing? Is it the type of property you could see yourself living in long term? How much is it worth? If it is one of the modest 2/3 bed properties that you describe then it will give you an idea of whether you want or need to go more expensive in your own property search.

If you maintain your new saving and spending habits (maybe not as extreme as €2k/m) then you should have no problems getting a mortgage up to 3.5x your income. However, your bigger issue is the deposit. If you want to buy at €250k, you need at least €25k as deposit plus savings for all of the costs of purchasing so really you should budget for €35k.

That is at least 18 months of aggressive saving for you. Can you or do you want to do that?
 

lucashood1977

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9
Thanks for the responses folks. Some very good replys. The thing is Im not really committed to living where I currently am despite being here in full time emooyment almost 13 years. In fact im looking to upskill in my current field and go contracting either in ireland or abroad. I know time isnt on my side for the mortgage but im not sure what to do if my heart isn't set in living here in the long term . To the person who asked my current situation. I currently rent a very basic 1 bed apartment in Waterford City
 

so-crates

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Thanks for the responses folks. Some very good replys. The thing is Im not really committed to living where I currently am despite being here in full time emooyment almost 13 years. In fact im looking to upskill in my current field and go contracting either in ireland or abroad. I know time isnt on my side for the mortgage but im not sure what to do if my heart isn't set in living here in the long term . To the person who asked my current situation. I currently rent a very basic 1 bed apartment in Waterford City

Being a landlord, especially in the case where you have a single property, can be quite a commitment. If you do end up working and living abroad and decide to rent out the property, you will be responsible for the maintenance etc of a property in a different country, you will have an income in two different tax jurisdictions, you will have to consider how to manage vacancies and what to do if something (heaven forbid) goes wrong. I assume you would probably look to a management agency but you will need to think very carefully about how this would work, what it would cost, what you could afford. You should also consider whether it would actually pay for itself. If it comes to living abroad it may prove better financially to sell the property.

Given that perhaps you should be focusing on what you want from a home in the medium term. It may also be worth revisiting the decision to buy a property at all. If you buy property, moving will involve either dealing with that property at a distance or you will need to sell it. I think whether or not you purchase a property, having savings will be beneficial and could be used for several other things (such as training, taking a career break to focus on upskilling, moving to a new place in Ireland or abroad).
 
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