Hi all,
Due to receive an inheritance of approx 45k (after tax) in the next few weeks. Trying to work out the most sensible thing to do with the money. We'd like to have our first family holiday in over 4 years - approx. 2k and book flights to Australia to see family at the end of this year - approx 5k.
Would like to get other people's opinions as OH and I can't agree. We've been building up careers, studying, had 2 kids and trying to finish house renovations over the last 4 years so money has been scarce! Would like to get back to a positiom where we're not worrying about money every month. We'll both be back to work next month after 9 months of maternity leave so this is based on financial situation from then.
Age: 29
Spouse’s/Partner's age: 43
Annual gross income from employment or profession: €32,000 + €5-10k bonus (working 4 day week so could go up to 40k towards end of the year).
Annual gross income of spouse: €31,000
Monthly take-home pay: approx €4,350
Type of employment: e.g. Civil Servant, self-employed - both private sector
In general are you:
(a) spending more than you earn, or
(b) saving?
Will be saving €500p.m. but have to dip into this for things like car service, car tax, etc.
Rough estimate of value of home
Amount outstanding on your mortgage: No mortgage. House value of around 300k.
What interest rate are you paying?
Other borrowings – car loans/personal loans etc: car loan roughly €6.5k to be paid off feb 2020 (shamefully at 14.5% as spouse has terrible credit history and I had no credit history in Ireland), personal loan with CU of €2.5k to be paid off with inheritance as in arrears.
Do you pay off your full credit card balance each month? No
If not, what is the balance on your credit card? €11k over 4 credit cards.
Savings and investments: none, going back to work from maternity leave next month.
Do you have a pension scheme? Yes, approx €35k, contributing 6% employee and 6% employer. Spouse has no pension. Hoping to setup prsa contributing 10% mid year after pay review.
Do you own any investment or other property? No
Ages of children: 2yrs and 8 months
Life insurance: for me - 4x salary through work, $390k through pension in australia. €100k through laya life for spouse.
What specific question do you have or what issues are of concern to you?
Should we use the inheritance to pay off all debt? We don't have any savings at the moment, should we pay all insurance annually with the inheritance so we can save more every month? We have health, pet, house, life and car insurance of €400p.m. Creche fees of €1,400 pm with at least another year before they'll drop to about 1k for another year or 2.
Due to receive an inheritance of approx 45k (after tax) in the next few weeks. Trying to work out the most sensible thing to do with the money. We'd like to have our first family holiday in over 4 years - approx. 2k and book flights to Australia to see family at the end of this year - approx 5k.
Would like to get other people's opinions as OH and I can't agree. We've been building up careers, studying, had 2 kids and trying to finish house renovations over the last 4 years so money has been scarce! Would like to get back to a positiom where we're not worrying about money every month. We'll both be back to work next month after 9 months of maternity leave so this is based on financial situation from then.
Age: 29
Spouse’s/Partner's age: 43
Annual gross income from employment or profession: €32,000 + €5-10k bonus (working 4 day week so could go up to 40k towards end of the year).
Annual gross income of spouse: €31,000
Monthly take-home pay: approx €4,350
Type of employment: e.g. Civil Servant, self-employed - both private sector
In general are you:
(a) spending more than you earn, or
(b) saving?
Will be saving €500p.m. but have to dip into this for things like car service, car tax, etc.
Rough estimate of value of home
Amount outstanding on your mortgage: No mortgage. House value of around 300k.
What interest rate are you paying?
Other borrowings – car loans/personal loans etc: car loan roughly €6.5k to be paid off feb 2020 (shamefully at 14.5% as spouse has terrible credit history and I had no credit history in Ireland), personal loan with CU of €2.5k to be paid off with inheritance as in arrears.
Do you pay off your full credit card balance each month? No
If not, what is the balance on your credit card? €11k over 4 credit cards.
Savings and investments: none, going back to work from maternity leave next month.
Do you have a pension scheme? Yes, approx €35k, contributing 6% employee and 6% employer. Spouse has no pension. Hoping to setup prsa contributing 10% mid year after pay review.
Do you own any investment or other property? No
Ages of children: 2yrs and 8 months
Life insurance: for me - 4x salary through work, $390k through pension in australia. €100k through laya life for spouse.
What specific question do you have or what issues are of concern to you?
Should we use the inheritance to pay off all debt? We don't have any savings at the moment, should we pay all insurance annually with the inheritance so we can save more every month? We have health, pet, house, life and car insurance of €400p.m. Creche fees of €1,400 pm with at least another year before they'll drop to about 1k for another year or 2.
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