How to save with no easy access to this funds?

S

sabinalee

Registered User
Messages
21
Personal details

Age: 45
Spouse’s/Partner's age: 55

Number and age of children: 11, 22- finished university this year


Income and expenditure
Annual gross income from employment or profession: 65K +/- incl bonuses/OT
Annual gross income of spouse:33K

Monthly take-home pay 4800+/-

Type of employment: Tech Industry/Logistics

In general: I cannot save money wisely


Summary of Assets and Liabilities
Family home worth €185k with a €105k mortgage.
Cash of €12k - in foreign currency
Defined Contribution pension fund: €15K
Company shares : €8K



Family home mortgage information
Lender BOI
Interest rate 2.9
If fixed, what is the term remaining of the fixed rate? We start another fixed, 5 year Fixed Term from August 22 of 3%


Other borrowings – car loans/personal loans etc

Do you pay off your full credit card balance each month? No. Only 100e a month
If not, what is the balance on your credit card? 1800


Other savings and investments:

Do you have a pension scheme? yes, 4%+8% from employer

Do you own any investment or other property? no

Younger child savings for education: 6K

Other information which might be relevant

Life insurance: yes


What specific question do you have or what issues are of concern to you?
I'm only on pension scheme, shares, bonuses from last 28 months. My husband has no extras.

How to save more money without access to touching them?
- would it be worth to put some % into AVC? From 12% to ?
- Should I increase % to my shares? I put 70% from my QB and AB to the scheme and rest is mostly for the tax.
- We overpay our mortgage of 10% from 2020 and we are happy with it. 11 years remaining.
- or save first and pay off credit card?

Our situation is maybe not best, but we have definitely something than nothing.


Any advice welcome.




 
 
With €98K of income between I would allow the mortgage to run at current level to be finished when your spouse retired, then I would focus on maximising pension contributions for you both until retirement. Just work out how much you can save each month and put it in pension, probably your spouse first and then you.
 
Clear credit card.
Off load company shares.
Cash of €12 in foreign currency ? If this is USD hold onto them,if not depending on exchange rate convert too euro and put it off your mortgage.
 
your savings of 18k (foreign currency and education fund) are costing you €540 a year to maintain (Interest on mortgage at 3% wiht BOI). Plus factor in inflation, this makes no sense.

Pay off the credit card immediately and stop racking up debt on it. Throw the credit card away preferably.

Work out a budget and stick to it. Don't live miserably, have treats and meals out or takeaways or whatever floats your boat.

Your mortgage repayment is ball park €1028 a month including the 10% overpayment. Keep that up and you should clear your mortgage 3 and a half years earlier (approx Dec 2030 instead of June 2033).

In terms of monthly take home pay of €4800, take away mortgage and you are leave with €3670 a month. A good budget of allowing €800 a month groceries, €250 a month (electricity and gas), fuel for car (if applicable) €250 a month. Still leaves €2,370 a month. My point being, work out a budget, what you are spending money on. Once you do that, start with make extra €150 or €200 a month in savings and build it up.

You have acknowledged that you need/could do better, that's a big first step. Now work out your next actions as a result. Any questions, DM me.
 
I feel better now....thank you all for your replies.

Im able to save, and proved this so many times, but its not consistent and from about two years, when we upgraded the kitchen, got a newer car, I could not see my savings good looking anymore...so just gave up a bit.

I always liked to set up goals. Got our cars, holidays twice a year, yearly heating, always for cash.
I have currently three piggy cans on my shelf:)
1. Heating 2. Summer 3. Credit Card, saved maybe about 3K so far.
I know one thing - I cannot hold cash on current account or up front of me.

As we got our mortgage just 5 years ago in older age, our life insurance, mortgage protection, house insurance is approx 170€ a month and I have to keep this in place. Diesel is 400€ a month for two cars...long distance to work.

My husband idea is to put 1.5K from his side and so I do same every month. We would have 3K for all expenses and extras and rest we could save. Too ideal...?
As I earn more, I can play and decide how to save
Would you put money into savings bank account, credit union, more shares, extra pension? Not sure here...


I will have to seat down and calculate all we spend.
We have a good life, but I wish myself to start to think more positive again and to look better financially for the future.

Thank you for ALL!
ALL the Best
 
Last edited:
You must log in or register to reply here.
Back
Top