back2black
Registered User
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As you started a family at the age of 20, it's not surprising that you have no savings on a modest salary. You made life choices. It's not all about money.
Now you have a good salary, you can start planning for the future.
I was thinking the same have just got comfortable with the repaymentsFirst of all, pay off your credit union loan as quickly as possible. They are charging you high interest and so you need to clear it as quickly as possible.
Employer can match a small % but agree think it's best to secure a house and stop blowing money on rent. Must be over €100kYou should not contribute to a pension as your first priority is to build up the deposit to buy a house. (The only exception to this is if your employer matches your contributions.)
I've been trying. I have spreadsheets going back years and always looks good at start of the month but not in practiceYou also need to build up a rainy day fund. But that would be the same fund as the deposit for your house.
I'm northside of Dublin. I'd say it would be closer to €250k but not sure I'd get a mortgage for that having 3 kidsHow much would a reasonable house cost you where you want to live? If it's €200k, then you will need a deposit of €20,000. So that is about two years saving €800 per month.
It's been recent enough but went from 73k to 80kI suspect that as you have had a sudden increase in salary, you may start blowing it. So I recommend you contact MABS for budgeting advice.
Thanks will take a good look at itRead Liam Ferguson's guide: Preparing for a mortgage application
I just checked re pension and the company contribute 25% of employee contribution minimum of €200 per month. Think that would be worthwhileView attachment 1226
If your employer's contribution depends on how much you contribute, then you should definitely contribute up to the maximum that they match. You have to balance the short term with the longer term. If you were within 6 months of buying a house, it might be worth taking a break from your pension contributions. But with buying a house at least two years away, then you should maximise your pension contributions now.
I hear you it's just there was a bit of a panic last year when we landlord told us he was selling so had to move. Blessed to have found somewhere close (kids would have been distraught otherwise!)Don't get carried away with the idea that you are blowing money on rent. It's the same for mortgage holders and they rarely say "we are blowing money on interest". Interest is just the cost of renting money. It's a good idea to buy a house, but it's not the only solution.
It's a good time to be thinking about this kind of stuff. It's easy for "lifestyle creep" to eat a raise if you don't have a plan for the new income.Expenditure pattern:
Live month to month which normally runs out before payday! Just haven't got into the habit of saving. Wouldn't be out every week maybe once a month.
I'm always thinking about it! I'm not going to consider the extra income as extra spend which is difficult. I'd love to have a family holiday but will resist the urge to borrow as I have done a few years ago.It's a good time to be thinking about this kind of stuff. It's easy for "lifestyle creep" to eat a raise if you don't have a plan for the new income.
I hadn't heard of that site but will check it out. I use spreadsheets each month and was looking at the % of each thing which like you say is a bit much.the site you mentioned - can't post links yet
Don't try to budget "hard" at first, just use it to learn where your money actually goes vs where you'd like it to go. Over time, this visibility of your goals is brain-altering.
People who stick with it past the first month experience (on average) a painless $200 psychological raise in their monthly bottom line.
Not an awful lot €1400I think you should start the pension now as your employer will pay 25%.
How much do you hold in the Credit union?
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