The importance of saving money.

RockyMills · 24-02-2019 10:21PM

monkeysnapper wrote: »

So let me get this straight , you feel great because your living at home for free .

Classy....

I’m saving to buy a house on a primitive salary. I’m not bitching or moaning about not earning massive money. I’m getting on with it as best I can.

Teddy Daniels · 24-02-2019 10:23PM

Thread should be called the importance of earning money.

Only way I could save loads of my wage is if I earned loads more.

mycro2013 · 24-02-2019 10:25PM

I ve 6 months salary, locked in a prize bonds account just in case things go tits up. Trying to save month to month as I'm trying to get my mortgage application across the line.

OldMrBrennan83 · 24-02-2019 10:25PM

carzony wrote: »

Hi Folks,

I'm surprised by the number of people in work who are not in a position to save any money at all.

I've always been a very heavy saver and love to know I have money in the bank to fall back on. I'd say over 50% of my money probably goes into saving every payday

Are fellow Boardies saving ?

Can't take it with you.

Pops_20 · 24-02-2019 10:26PM

Currently saving approximately 40% of my monthly salary. No rent and no mortgage though, so I reckon I could push that to about 60%.
Only thing is I have an awful debilitating addiction to buying fancy parts for my car online, so that always takes a good chunk of money, even if not required.

I do have a pension for the last 15 months or so, but it seems to grow so slowly that it's not worth talking about.
People are always advising me to top it up with an annual voluntary contribution when you're young, to get the max out when you're old, but looking at the stats of how much I get per annum when I retire, it doesn't seem worth it.
50:50 low risk medium risk, and the return seems terrible.

monkeysnapper · 24-02-2019 10:26PM

RockyMills wrote: »

I’m saving to buy a house on a primitive salary. I’m not bitching or moaning about not earning massive money. I’m getting on with it as best I can.

I didnt mean that ....

I ment classy in that you got yourself a nice number , living at home for free and let the parents pay for you so you can save .... I'm sure they are delighted they are saving you money .

amcalester · 24-02-2019 10:29PM

Pops_20 wrote: »

Currently saving approximately 40% of my monthly salary. No rent and no mortgage though, so I reckon I could push that to about 60%.
Only thing is I have an awful debilitating addiction to buying fancy parts for my car online, so that always takes a good chunk of money, even if not required.

I do have a pension for the last 15 months or so, but it seems to grow so slowly that it's not worth talking about.
People are always advising me to top it up with an annual voluntary contribution when you're young, to get the max out when you're old, but looking at the stats of how much I get per annum when I retire, it doesn't seem worth it.
50:50 low risk medium risk, and the return seems terrible.

I’m not a financial advisor but I’d have thought if you’re young then some of it could go into higher risk investments.

Ive just started paying the max into my pension for my age, split between high and medium risk.

As I get older I’ll move it from higher risk to lower risk funds.

_Brian · 24-02-2019 10:31PM

Lots of things are important and it depends on your stage of life.

I gave up a job where I could save loads for a really flexible much less paid job where I get to spend loads of time with my kids.

I could have more money hanging about, but I’d rather be with my kids.

We have enough and the savings we have aren’t being touched.

Spanish Eyes · 24-02-2019 10:31PM

If you have a goal saving for it is great.

If you are a person who likes to live and travel, well.. make your decisions based on what you want.

The rules are only there for those who want them.

lainey_d_123 · 24-02-2019 10:31PM

carzony wrote: »

Hi Folks,

I'm surprised by the number of people in work who are not in a position to save any money at all.

I've always been a very heavy saver and love to know I have money in the bank to fall back on. I'd say over 50% of my money probably goes into saving every payday

Are fellow Boardies saving ?

I've never earned enough to be able to do that. All my adult life, about 50% of my income has been spent on rent and bills, and the rest of it goes on other essential costs. I'm lucky to save 10% of my take home pay each month.

24-02-2019 10:32PM

Candie wrote: »

I spent a few years in the very fortunate position of living in grace

Gratitude is the gateway to grace.

lainey_d_123 · 24-02-2019 10:34PM

RockyMills wrote: »

I’m on a piss poor salary but I’m currently living at home saving for a house and I don’t pay rent at the moment so I’m in a decent enough position to save. I have €10k in a savings and another savings account for my mortgage which has almost €30k in it. I’ve also been paying in to my pension for the last 18 months but this isn’t a huge amount (less than €10k).

There’s a guy I used to be very friendly with that is living and working in Dublin. I had the misfortune of joining him for a few drinks last weekend where he spoke non stop for two hours about how good his life is and how much money he’s earning (he’s 29 and earning €100k a year). I had to admit I was fairly jealous of him talking about his salary and the perks of his job but then he admitted he has no savings, he’s spending €1,600 a month on an apartment and he has no pension yet - he’s spending as he’s earning. I earn one third of what he earns but I left the pub delighted with myself knowing that I’m currently in a far better place financially than he is. I can’t stress how important having savings are. Things could go belly up at any stage for any person no matter what they work at and I’m glad I’m in a position to save what I can.

Good for you to be lucky enough to have your life subsidised by your parents. Not sure why you think being able to save when you don't have anything substantial to pay for is some kind of massive achievement. Everyone would be saving four figures a month if they didn't pay rent, bills or food costs.

vectorvictor · 24-02-2019 10:37PM

lainey_d_123 wrote: »

Good for you to be lucky enough to have your life subsidised by your parents. Not sure why you think being able to save when you don't have anything substantial to pay for is some kind of massive achievement. Everyone would be saving four figures a month if they didn't pay rent, bills or food costs.

Don't be so jealous

Good financial planning is as much about maximising circumstances as it as about money

lainey_d_123 · 24-02-2019 10:44PM

vectorvictor wrote: »

Don't be so jealous

Good financial planning is as much about maximising circumstances as it as about money

And you need to have those circumstances to start with.

Person A is taking home 1300 euros a month and out of that is spending 800-900 on essential things like rent, bills and food. They spend about 200 a month on social life, hobbies and transport and save the rest.

Person B is taking home 1300 euros a month and is spending 500 euros a month on buying gaming accessories and McDonald's takeaways. The rest goes in the bank.

Person B is saving far more than person A, but which one is more responsible? Person B is simply luckier.

monkeysnapper · 24-02-2019 10:45PM

vectorvictor wrote: »

Don't be so jealous

Good financial planning is as much about maximising circumstances as it as about money

This is totally true .

Bleed the parents for a bit longer ..... survival of the fittest.

When he or she finally does leave take everything that was bought and leave house bare . ....clear the cupboards....

But it doesnt matter because you saved a bit of money ......

Or

Become a grown up in a grown up world and start paying your way and move out a bit later than expected but leave with pride that you helped parents while you had them .

Its called respect.

jester77 · 24-02-2019 10:50PM

Greentopia wrote: »

Aren't you German? that would account for your skill in saving.
Never been to a country where people are more dedicated to saving. They all seem to save at least 10% of their income. My German guy is brilliant with saving money, he always has at least 3 months savings in his bank accounts and is never in debt.

Nah, just happen to live in Germany.

I discovered the importance of saving when I was in Uni. I would work summers and weekends to pay my way through. It was near the end of semester before the summer break and I was doing interviews for jobs. I got a call on a Friday morning asking if I could come into an interview that afternoon, I said yes as it was a job I wanted. However I would need to take the bus and I had spent the last of my cash in the pub the previous night and wouldn't have cash until after work on Saturday. I tried to track down some friends, but they had all left for the weekend. I then went into the bank and asked for a 5 pound overdraft, no joy :mad: Ended up missing the interview. I re-evaluated a few things after that.

Fr_Dougal · 24-02-2019 10:52PM

carzony wrote: »

Hi Folks,

I'm surprised by the number of people in work who are not in a position to save any money at all.

I've always been a very heavy saver and love to know I have money in the bank to fall back on. I'd say over 50% of my money probably goes into saving every payday

Are fellow Boardies saving ?

Are you happy? Serious question.

khaldrogo · 24-02-2019 10:55PM

carzony wrote:

I'm surprised by the number of people in work who are not in a position to save any money at all.

How many kids do you have? Mortgage?

r93kaey5p2izun · 24-02-2019 10:55PM

I was saving 65% of my salary but am now down to 20% despite a big pay rise. I went from living in a hovel house share to having to rent a decent house because my mother became homeless. If I had stayed in my previous job I would have been unable to save anything now, thank god I decided to make the move last year. I don't see how many people in Ireland could realistically be expected to save given housing and childcare costs versus the prevalence of low pay. I think being in a position to save is an incredibly powerful advantage to have given the opportunities it affords you - particularly those who are in a position to save at a young age. Of course there are others too who squander their money and fail to save when they could. Personally I would find that a very stressful way to live.

khaldrogo · 24-02-2019 10:55PM

carzony wrote:

I'm surprised by the number of people in work who are not in a position to save any money at all.

How many kids do you have? Mortgage?

Atoms for Peace · 24-02-2019 10:57PM

lainey_d_123 wrote: »

And you need to have those circumstances to start with.

Person A is taking home 1300 euros a month and out of that is spending 800-900 on essential things like rent, bills and food. They spend about 200 a month on social life, hobbies and transport and save the rest.

Person B is taking home 1300 euros a month and is spending 500 euros a month on buying gaming accessories and McDonald's takeaways. The rest goes in the bank.

Person B is saving far more than person A, but which one is more responsible? Person B is simply luckier.

A diet of McD's will ensure you never have to worry about a pension.

messy tessy · 24-02-2019 11:03PM

jester77 wrote: »

Savings are always good, I'm always amazed at the amount of people that only start saving once they decide they want to buy a house. They end up sacrificing everything and start complaining about the system and how hard it is to get a deposit together. Start as you mean to continue, you'll never here to make any sacrifices and you'll be fine.

My sentiments exactly!

I save about 35% of my salary. Could push it higher but you need to live also.

Paying into a pension with 9 years. My company pay a standard % of salary into the pension and will match what you pay (up to a limit). Some people in work don't take advantage of this which seems crazy to me.

kowloon · 24-02-2019 11:07PM

A pension is wasted money, I heard we're all going to die when Brexit happens.

Faith+1 · 24-02-2019 11:09PM

Snow Garden wrote: »

With a recession coming this year it would be wise to have some savings.

Geuze · 24-02-2019 11:10PM

Households have 92bn+ on deposit.

NIMAN · 24-02-2019 11:16PM

OldMrBrennan83 wrote: »

Can't take it with you.

Often said by folk with not a penny saved, no house, and no kids.

There's a happy medium.

Geuze · 24-02-2019 11:18PM

Faith+1 wrote: »

Yes, Italy has moved towards recession.

Growth has slowed in DE.

Employment growth has slowed here.

NIMAN · 24-02-2019 11:19PM

Correct me if I'm wrong, but the big worry I have about pensions, and which I heard a few years ago, is that the money I'm putting into my pension now isn't going to my pension when I retire, but to pay for pensioners now.

The taxpayers of the future, and indeed those putting money away for their own pensions, will be paying mine. Is this even partially correct?

Also, pension funds and pots can easily take big hits and drop in value. There's no guarantee putting away piles of money now will mean you'll have a big pension when you come to retire.

OldMrBrennan83 · 24-02-2019 11:21PM

NIMAN wrote: »

Often said by folk with not a penny saved, no house, and no kids.

There's a happy medium.

Was never and will never be in the position to buy a house (single and then too old), never want kids, and can't take it with you.

I did pay good money into a pension for 6 years when I first started working, as did the company, but I lost all details of it. It was early tiger though so presumably it was all lost in the crash anyway.

_

NIMAN · 24-02-2019 11:23PM

OldMrBrennan83 wrote: »

Was never and will never be in the position to buy a house (single and then too old), never want kids, and can't take it with you.

In your case then, lash away!

The importance of saving money.

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