2k per month. Shorterm / Longterm savings and investments

GeorgeStobort

I'm finally debt free. I get paid 3k after tax every month. I reckon I can get by on 1000 euro a month so would appreciate so e advice on how to split the 2k every month for savings and Investments . I'm single with no dependents and no mortgage and I don't have any plans to change that in the near future

AlmightyCushion

First things first. Build up an emergency fund of about 6 months expenses. Keep it in an account that you can access easily. What happens after that depends on your appetite for risk. If you want to keep risk as low as possible then you could put your money into savings account. The interest yield will be low but it's pretty safe. For ideas on the best savings account see here. Regular saver account usually have the best interest rates but you are limited to 1,000 a month. If you want to save 2,000 in them you'd have to open 2 different accounts.

With savings accounts keep an eye on interest rates for the account, they usually drop over time. It's not unusual for an account that has a good interest rate to eventually drop to 0.1% after a number of years. Keep an eye on that savings best buy thread and if a better account comes along don't be afraid to switch.

If you're willing to accept more risk for a potentially higher return then that's a more complex answer.

mickmac76

GeorgeStobort wrote: »

I'm finally debt free. I get paid 3k after tax every month. I reckon I can get by on 1000 euro a month so would appreciate so e advice on how to split the 2k every month for savings and Investments . I'm single with no dependents and no mortgage and I don't have any plans to change that in the near future

Assuming you have six months expenses in a savings account do you also have a pension scheme set up. This is a great way to save in a tax efficient manner. If you have a pension consider adding AVCs to give yourself a bigger pension when you retire.

Apart from this do you have any goals for the money you save. For instance do you want to buy a fancy car or a bigger house or are you looking to invest for the long term. If It's one of the former then a regular savings account is best but if It's the latter then you need to start learning about investing. Don't rush into it but start educating yourself about ETFs and the stock markets.

A Battered Mars Bar

If I'd 2k to spar every month id be down bookies, 500 there son like a good laddy on number 3. Tidy little profit. Right off to me local for a few scoops. ere lads round on me look at me tidy little profit on the gg's right gordon gecko i am. don shades boy, there ya go what's in me file a fax taday. Whip out the 1.5k look at this boyos eh right gordon gecko i am. :cool:

iainBB

AlmightyCushion wrote: »

First things first. Build up an emergency fund of about 6 months expenses. Keep it in an account that you can access easily./quote]
That 6 months expenses theoretically could be invested in the stock market with liquidity you could get your hands on the money very easily

27cyrix

iainBB wrote: »

AlmightyCushion wrote: »

First things first. Build up an emergency fund of about 6 months expenses. Keep it in an account that you can access easily./quote]
That 6 months expenses theoretically could be invested in the stock market with liquidity you could get your hands on the money very easily

Totally agree.

I never keep cash on hand, except the money that left in my bank current account to make daily banking free.
3k after tax, you can get a credit card with credit limit up to 10k, so don't worry about emergency fund. If you do get a credit card, make sure you pay full every month.

I put 80% into low cost ETF, 10% P2P lending, 10% precious metals

cooperguy

It sounds like you should be maxing out your tax free pension contribution every month. You can see the max you are able to put in your pension here.

You also need an emergency fund of 6ish months expenses (€6k?) somewhere relatively low risk and accessible. Possibly credit union savings account?

The rest depends on your appetite for risk and if you have plans to buy a house or any other short/medium term targets.