What to do with 5,000 euro??

Deco99

Hi, been looking at my personal finance stiuation lately and i've noticed that i tend to just spend my wages as they come as of late but between my current account and savings account i have about 5,000 euro left over (not each month but that as i only spend roughly the wages i dont go into the 5 grand except for situations like holidays and car insurance) I cant help but feel having this just sitting in the bank might be a waste. As a purely curious piece, what would people recommed regards how much to keep cash in current account, how much savings and is there something that could be done with a surplus to get more value?
I know its not goin to make me a millionaire but i kinda want to get my money working for me a bit more
Any suggestions welcome.

FernandoTorres

Personally I only keep in my current account what I need to live that month, the rest is in an instant access savings account earning around 4%. In an emergency I can access this.

Really no point in having money just sitting in your current account, if you do this for a number of years you're missing out on a hell of a lot taking compounding into account. It's a no brainer really.

As for investing any of it i'd recommend reading a few books to understand the asset classes and the risks/rewards involved before doing anything.

Soulja boy

FernandoTorres wrote: »

Personally I only keep in my current account what I need to live that month, the rest is in an instant access savings account earning around 4%. In an emergency I can access this.

Really no point in having money just sitting in your current account, if you do this for a number of years you're missing out on a hell of a lot taking compounding into account. It's a no brainer really.

As for investing any of it i'd recommend reading a few books to understand the asset classes and the risks/rewards involved before doing anything.

4% instant access is really good, who are you with?

Deco99

Soulja boy wrote: »

4% instant access is really good, who are you with?

Just put over the balance into my savings account leaving enough for rest of the month and a bit more. I'm on 3% though, be very interested to find out who you're gettin 4% off. Just realised, this is about the only thing can be done with the amounts I'm dealing with. Pity my husband isnt a Swiss Bank official and I'd half a million lying around to put into a FX deal.

FernandoTorres

Soulja boy wrote: »

4% instant access is really good, who are you with?

I'm in an Ulster Bank Special Interest Deposit Account: http://www.ulsterbank.ie/roi/personal/saving/regular-savings/sida.ashx

It's a regular saving account so you have to be putting something in every month but it can be as little as €1 and then just transfer in amounts when you want to.

clintondaly

What about Prize Bond? there is another thread devoted to it explaining the Pro's and Cons

shangri la

Im surprised nobody has recommended gold yet.

at the minute with 5k that you will need for car insurance/holiday the 4% instant access account is what you want.

Deco99

shangri la wrote: »

Im surprised nobody has recommended gold yet. .

Gold? Seriously, not being smart but is that an option? How would you go about even getting some? Do you hold it physically? Is it on the rise at the minute or just always likely to hold value, might i be as well to get some copper so seems the price of that is skyrocketing? Lets say I behave over the next month or two and try put aside a bit extra, could two grand do anything in this kind of investment?

I kinda just want to hold something that isnt in an irish bank for a back up, even if it is just a few months living expenses. Not getting hysterical, just for piece of mind. In the event of the improbable situation and the bank guarantee failed or something.

FernandoTorres

Ulster Bank and Rabo aren't Irish owned banks so are covered by the UK and Dutch guarantee schemes respectively.

Gold is the same as any commodity, it can rise or fall greatly over relatively short periods. For some reason many people see it as a relatively risk-free investment but it's far from it. That said it is going through a very good period but that shouldn't affect your decision. You might think the global economy is going to get much worse, in which case gold will rise but the opposite could also happen.

The way to buy it is through gold specialist dealers who hold it for you or through a gold fund.

OfflerCrocGod

Don't buy gold, stick to a savings account and if the Irish banking system implodes then it will be because the rest of the world's is also.

You're worrying if your kitchen table is sturdy enough to protect you from a nuclear bomb. Stop it, that's just silly. If the bomb drops you'll be wiped regardless of your kitchen table.

You have no experience in trading metals so stay well away as once you lose money you may not be able to accept the sunk costs and may want to try trade your way back to par, possibly making the situation worse.

Savings account for you.

whysomoody

OfflerCrocGod wrote: »

Don't buy gold, stick to a savings account and if the Irish banking system implodes then it will be because the rest of the world's is also.

You're worrying if your kitchen table is sturdy enough to protect you from a nuclear bomb. Stop it, that's just silly. If the bomb drops you'll be wiped regardless of your kitchen table.

You have no experience in trading metals so stay well away as once you lose money you may not be able to accept the sunk costs and may want to try trade your way back to par, possibly making the situation worse.

Savings account for you.

This is good advice.

Deco99

OfflerCrocGod wrote: »

Don't buy gold, stick to a savings account and if the Irish banking system implodes then it will be because the rest of the world's is also.

You're worrying if your kitchen table is sturdy enough to protect you from a nuclear bomb. Stop it, that's just silly. If the bomb drops you'll be wiped regardless of your kitchen table.

You have no experience in trading metals so stay well away as once you lose money you may not be able to accept the sunk costs and may want to try trade your way back to par, possibly making the situation worse.

Savings account for you.

To be honest, with 5 grand i'm not worrying at all, maybe if it was ten times that, so bring on the nukes duke. Thanks for your advice it is appreciated but this was started as only opinion seeking not for sound financial advice so i'm just interested in what options are out there. I do realise trading in metals is a gamble but no harm in wanting to know how its done. Basically its pretty obvious that with the small amount i'm dealing with savings is the best and realistically only option and i have that setup with a good rate (3% plus upto incremental bonus up to 50% upto year 5).

..... but still i'm not satisfied . At what levels of investment would ye think buying shares is feasible, not day to day trading obviously but just regards buying a few shares in lets say four companies for a year long and then review?

irishh_bob

Deco99 wrote: »

Hi, been looking at my personal finance stiuation lately and i've noticed that i tend to just spend my wages as they come as of late but between my current account and savings account i have about 5,000 euro left over (not each month but that as i only spend roughly the wages i dont go into the 5 grand except for situations like holidays and car insurance) I cant help but feel having this just sitting in the bank might be a waste. As a purely curious piece, what would people recommed regards how much to keep cash in current account, how much savings and is there something that could be done with a surplus to get more value?
I know its not goin to make me a millionaire but i kinda want to get my money working for me a bit more
Any suggestions welcome.

buy shares in glanbia and kerry , dairy markets are booming right now and neither of theese companies are overpriced although they have gone up quite a bit since september

Timmaay

Deco99 wrote: »

..... but still i'm not satisfied . At what levels of investment would ye think buying shares is feasible, not day to day trading obviously but just regards buying a few shares in lets say four companies for a year long and then review?

Its a tough game, go setup a demo account with the likes of investopedia, or even open a demo spreadbetting account and try your luck with that for a few months.

OfflerCrocGod

Deco99 wrote: »

To be honest, with 5 grand i'm not worrying at all, maybe if it was ten times that, so bring on the nukes duke. Thanks for your advice it is appreciated but this was started as only opinion seeking not for sound financial advice so i'm just interested in what options are out there. I do realise trading in metals is a gamble but no harm in wanting to know how its done. Basically its pretty obvious that with the small amount i'm dealing with savings is the best and realistically only option and i have that setup with a good rate (3% plus upto incremental bonus up to 50% upto year 5).

..... but still i'm not satisfied . At what levels of investment would ye think buying shares is feasible, not day to day trading obviously but just regards buying a few shares in lets say four companies for a year long and then review?

You need to get informed, read a lot about investing and how to value companies set up demo accounts on any of the CFD platforms you fancy - or on all and be prepared to spend some considerable time learning and monitoring your progress before you should use real money.

CramCycle

FernandoTorres wrote: »

I'm in an Ulster Bank Special Interest Deposit Account: http://www.ulsterbank.ie/roi/personal/saving/regular-savings/sida.ashx

It's a regular saving account so you have to be putting something in every month but it can be as little as €1 and then just transfer in amounts when you want to.

Have one myself but only found out after setting it up that the interest is only paid out in October each year, do you know is the interest on the balance come October or does it accumulate on a month by month basis and they only tell you the total at the end?

Deco99

CramCycle wrote: »

Have one myself but only found out after setting it up that the interest is only paid out in October each year, do you know is the interest on the balance come October or does it accumulate on a month by month basis and they only tell you the total at the end?

They calculate it daily AFAIK, possibly monthly but definitely not on the balance at end of year.

So I've been thinking fancifully,

4 securities - Tullow Oil - Vodafone - Kerry Group - Unidentified renewable energy company

Assuming these match the market for a year - would the dividends be likely to exceed the transaction costs for lets say a grand per security?

n.b. I am aware the value of your investment may fall as well as rise. Its a gamble based on so few securities but I dont have the time to become a full time trading student as has been suggested.