Is it possible to improve financial situation and work: life balance?

mgv

Registered User
Messages
10
Age: 39
Spouse’s age: 39

Annual gross: 67k
Annual gross of Spouse: 60k

Type of employment: both in health service

House value: 720k
Mortgage: 475k
Mortgage provider: NIB 2 year fixed 3.8%, ending August 2008

No other loans

Credit card: average monthly balance outstanding 350 Euro
Credit card current balance: 900 Euro

Savings/investments (combined savings including spouse): 31k (reinvested ssia’s in savings account, shares /ETF’s and Quinn-life European Fund)

Savings: Combined 450 Euro per month, of which 275 Euro invested in Quinn-life monthly.

Both in Health Superannuation scheme
No other property or investments

Children: 3 and 5 years
Crèche fee: Euro 1340 per month
Child Benefit used in monthly expenditure

Life insurance: reducing balance on mortgage

General household bills: standard for 4-bed semi
One shared car

Questions:
Can we improve on our current situation, bearing in mind if interest rates are the same this time next year we will be paying approx. 500 Euro more per month? Both working full time and trying to find a way of one of us taking parental leave to spend more time with our children. However the way crèche fees work the reduction in salary is not matched by the reduction in fees! Would also like a third child but feel too financially stretched at present.
 

ClubMan

Registered User
Messages
44,340
You have savings and an outstanding CC balance (right now and habitually according to your post). This makes no sense. Clear your CC balance.
 

PGD1

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Messages
455
i'm sorry? you have earnings of 127k? please step back from this an realise what you have got.

I am earning less than either of you and we have one person not working and are managing. The difference between us is in the size of mortgage (and I am saving the child benefit)

The easiest thing to do is sell up and downside or move elsewhere. It's a choice between earning money to pay a big mortgage or looking after your kids.
 

mgv

Registered User
Messages
10
Will do, advice sought is really for the medium to long term tho, can you help?
 
Z

z109

Guest
Rather than invest in stock market/savings, could you overpay on the mortgage (it would depend on the terms and conditions, of course). This might reduce the long-term financial pressure you are under more than an investment would.

As you are both in public service with secure jobs and pensions, you have little to worry about in terms of the future IMO, so maybe you can look at going down to four days a week (one or both of you) and reduce the creche accordingly (you could either take the same day off and effectively have a three day weekend, or take different days off so one of you is home with the children four days out of seven).
 

nelly

Registered User
Messages
521
i'm sorry? you have earnings of 127k? please step back from this an realise what you have got.
agree with this
The easiest thing to do is sell up and downside or move elsewhere. It's a choice between earning money to pay a big mortgage or looking after your kids.
agreed.

If one of you gave up to take care of children i think it would be the same or higher income than an awful lot of folks in this country. I am amazed that at 127k pa you genuinely feel you cannot afford to have another child.

is your job one that you may lose or want to retire early from (high stress)?Could you both job-share?
 

F. Kruger

Registered User
Messages
440
Get some more life cover.

You probably have some Death in Service cover through work but I would get some additional Convertible Term over 15/20 years.
 

moondance

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Messages
313
What exactly are your current monthly mortgage payments and what will they be when your fixed rate finishes? And what is the term of your mortgage.
 

mgv

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10
Hi Moondance,

monthly mtg repayments are 2300 euro plus 150 for home and life insurance, less TRS of 100 euro
 

mgv

Registered User
Messages
10
agree with this
agreed.

If one of you gave up to take care of children i think it would be the same or higher income than an awful lot of folks in this country. I am amazed that at 127k pa you genuinely feel you cannot afford to have another child.

is your job one that you may lose or want to retire early from (high stress)?Could you both job-share?
Hi PGD1,

I can understand your reply however we moved house two years ago and yes commited to a very large mtg - so that is a decision we now have to live with. It is not an option to move again as the children are settled and one is starting school next week. also it would cost too much in fees. What I would like to do is to optimise our financial situation to improve on our work:life balance if its possible.
 

moondance

Registered User
Messages
313
Ok so you have 6700 a month

Expenditure:
2300 mortgage
50 (life insurance minus tax relief)
450 savings / investments
1340 creche

Total expenditure 4140

So you have you have 2560 for living on per month which is loads if you're not eating out lots or going on a lot of holidays!
 

Berbatov

Registered User
Messages
51
mgv

would have thought that your TRS should be a lot more than 100 euro per mth seeing as you'd be maximising the interest threshold with a mortgage of 475k
 

mgv

Registered User
Messages
10
Hi Moondance,

Other outgoings include household bills of approx 300 per month (gas, electricity, telephone, car maintenance and petrol etc) plus food/clothing etc for family of four and travel expenses means a zero balance each month. Granted we're saving approx Eur 450 per month but this is our fall back for emergencies.
 

moondance

Registered User
Messages
313
Then I reckon you need to make a note of all your expenditure for a couple of months - food (can you try cheaper brands / shops), bills (can you cut down on your energy usage), clothes for kids (Penneys!?), telephone (cut down on use). That sort of thing so you can find out what you're spending that's not necessary. Also maybe get a cheaper car that's costs less to run - like a 1Litre engine or a diesel.
 

mgv

Registered User
Messages
10
We dont shop extravagantly, telephone bill is not large, car is 1300cc (1999) reliable VW! Take your point re monthly expenditure, it seems to disappear will look at more closely thanks!
 

pc7

Registered User
Messages
593
try work out where the cash is going, do you both buy lunch out every day? if so there is 100 euro a week, so by keeping track of where the money is going you'll have better control over it.
 
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