Is there anything I can do to optimise/improve family finances

D

Dublin85

Registered User
Messages
120
me 39, wife 34. 2 kids both under 3

annual gross income 62k, wife 35k. both public sector.
Il be getting defined benefit pension in 22 years and also make 100avc a week.
wife single pension scheme in 32years. makes 50 a week avc.

mortgage 250k at 2.15% fixed for 5 years. 30 years left. value of house 350k. paying 970 a month.

emergency fund 16k. kids savings 5k. car loans 15k at 5%apr.

we appear to be saving approx 500 a month and also paying 500 a month off the car loan. groceries approx 900 a month. gas/ esb 200 a month. no childcare costs. health care 400 a month for family. diesel approx 300 a month.

we have no other debts or investments. is there anything I can do to optimise/improve family finances. I was thinking about investing the child benefit every month along with the 5k I saved up for the kids so they have something for college etc.

any advice welcome. thanks
 
Can you pay the car loan off early without incurring fees or paying the interest? If so, it would make sense to pay that off before investing. It would be a guaranteed 5% return on investment.
 
Connard said:
Can you pay the car loan off early without incurring fees or paying the interest? If so, it would make sense to pay that off before investing. It would be a guaranteed 5% return on investment.
Click to expand...
yes, I could repay it and there would be no penalties and save on interest. I'm slow though to spend the emergency fund as it took so long to build up. 15k is roughly 6 months expenses
 
You’ve really got an emergency fund of €21k if you include the “kids savings”.

As two public sector workers, you don’t really need a large emergency fund.

In your shoes, I would pay off the car loans and gradually build up your cash reserves again.

Otherwise, it looks like you are making all the right moves.
 
Sarenco said:
You’ve really got an emergency fund of €21k if you include the “kids savings”.

As two public sector workers, you don’t really need a large emergency fund.

In your shoes, I would pay off the car loans and gradually build up your cash reserves again.

Otherwise, it looks like you are making all the right moves.
Click to expand...
ya I get what you are saying 100% and logically it makes sense. its just that it's hard to differentiate the kids child benefit which I put away and I see it as theirs so to speak and was hoping to out it into an etf so it could be useful when they get to college.

without jinxing it, I agree that our jobs are safe. the money aint great but its reliable. I suppose it is worth considering taking 10k emergency fund and paying off the loan? it would only leave 5k loan left and also give me small cushion in the emergency fund.
 
With no loans, you’ll be able to save even more every month and build you reserve up again.

Remember, credit cards are a form of emergency fund also.

I would clear the loans, 5% on €15k is hefty enough vs almost zero for deposits.
 
Gordon Gekko said:
With no loans, you’ll be able to save even more every month and build you reserve up again.

Remember, credit cards are a form of emergency fund also.

I would clear the loans, 5% on €15k is hefty enough vs almost zero for deposits.
Click to expand...
ya, I'm inclined to agree. Will prob save approx 1500 in interest over the course of the loan.
 
Connard said:
Put it this way. If you had 6k in your savings account and no loans. Would you take a 15k loan at 5% just to put it in the savings account? You likely wouldn't and would think someone was mad to even suggest it but this is essentially what you are doing.
Click to expand...
very good way of putting it
 
You must log in or register to reply here.
Back
Top