How much do you save?

Tiger20 · 13-04-2025 06:52PM #1

Apparently Irish households saved something like €25 billion last year, according to the CSO. Got me wondering how much people save and for what purpose.

Personally we always saved what I felt was a lot, which resulted in paying off the mortgage, leaving us with zero debt and zero savings. Since then we are saving about €400 a week and now have about €40k with no clear purpose or reason, other than for a feeling of security but wondering what should we do with our money going forward, should we cut the slack and relax a bit more. We budget our income and would say we do not have a mean or tight lifestyle but not a flahoolach one either.

For context we are 51 and 49, two college going kids for another few years, household income of about €110k

Buddy Bubs · 13-04-2025 06:56PM

Spend a few quid, make sure pensions are maxed out. After that get a balance in life, have a short term rainy day fund, have nice holidays, buy a nice car, whatever floats your boat

_BAA_RAM_EWE · 13-04-2025 07:13PM

https://www.boards.ie/discussion/2058406107/how-much-do-you-save

I saw the headline. Didn't look at a breakdown if their is one. It's a rich minority. Most people are struggling.

Kurooi · 13-04-2025 07:41PM

€25bn is a massive figure, but divided by 5.3m people it's €5k per person, or by the CSO estimate on number of households 1.8m - €14k per household. That's not a lot. And of course it's income so there is a wide disparity, for every dude that saves up €100k there are 20 others that got nothing.

Saving is down to the individual circumstances, particularly the level of income, trying to benchmark yourself against others is silly, in my eyes.

Your case, would spending more improve your life? Happiness? I must say some people keep tight for seemingly no other reason than making themselves miserable, while I see others always chasing fulfillment and happiness behind the next swipe of the credit card. There is a cozy comfortable middle in there. A middle I'd like to be in when I'm entering my 50s and trying to balance financials with a desire to wind down and enjoy life.

Jim_Hodge · 13-04-2025 08:08PM

https://www.boards.ie/discussion/comment/123353986#Comment_123353986

That's per year. €14000 average per household per year is a considerable sum.

elperello · 13-04-2025 08:11PM

It's good to have some savings.

Allows you to avoid borrowing and also provides a cushion if circumstances change for the worse.

13-04-2025 08:48PM

https://www.boards.ie/discussion/comment/123354099#Comment_123354099

Nothing wrong with borrowing at a good rate and keeping savings intact.

elperello · 13-04-2025 08:58PM

https://www.boards.ie/discussion/comment/123354242#Comment_123354242

Nothing wrong with borrowing if it suits you.

It depends on your circumstances and what you are borrowing for.

For instance I would borrow to buy property but never for a car.

_BAA_RAM_EWE · 13-04-2025 10:00PM

https://www.boards.ie/discussion/comment/123354242#Comment_123354242

yes there is

Jim2007 · 13-04-2025 11:26PM

https://www.boards.ie/discussion/comment/123353859#Comment_123353859

As you say you didn't read the reports…

As they say it is adjusted household savings, it's in line with previous stats although below equivalent EU figures. It's about 13% - 14%, which is not an unreasonable figure given it includes things like pension contributions, housing deposit savings and various other financial products. Pension contributions along would count for a large slice of that.

donkey balls · 17-04-2025 09:11PM

Same situation saving about €1800 a month pension maxed out on AVC, Have €15k put aside for whenever i wanna change the car. Last car loan i payed off early and saved about €3.5k in interest.

Bass Reeves · 17-04-2025 09:26PM

https://www.boards.ie/discussion/comment/123354242#Comment_123354242

Its doesn't make sense sense to pay 7-8% on borrowing money and recieve 1-2% in interest payment. If you have the discipline to save it you should have the displayed to replace it if you buy a car or go on a holiday

_BAA_RAM_EWE · 17-04-2025 10:38PM

https://www.thejournal.ie/loophole-found-in-pensions-law-meant-people-could-avoid-tax-liabilities-by-putting-huge-sums-in-retirement-fund-6667614-Apr2025/

since pensions are included. nice little loophole revenue were running for the wealthy in 2022/2024. 2million bik free tax deductable prsa contribution. Skewer these figures a bit.

https://www.boards.ie/discussion/comment/123355286#Comment_123355286

donkey balls · 19-04-2025 09:38AM

https://www.boards.ie/discussion/comment/123367220#Comment_123367220

The last car i bought i could have bought it outright but i wanted to have money set to aside in case of a rainy day something happens the house etc. I took out a 5 year loan with the bank and paid it off in about 17 months. Saving myself approx €3500 next car loan i take out will be the same trade in plus cash. Leaving me with a small monthly repayment.

_BAA_RAM_EWE · 19-04-2025 10:59AM

https://www.boards.ie/discussion/comment/123370840#Comment_123370840

You're buying to expensive a car.

mulbot · 19-04-2025 11:07AM

https://www.boards.ie/discussion/comment/123354284#Comment_123354284

Spot on

mulbot · 19-04-2025 11:12AM

https://www.boards.ie/discussion/comment/123370840#Comment_123370840

Was the interest not already added on to the total repayment required by the bank?

donkey balls · 19-04-2025 12:07PM

No it was was added on every quater from memory.

Wanderer78 · 19-04-2025 12:15PM

50-100 a week, extremely low income bracket…..

donkey balls · 19-04-2025 05:11PM

https://www.boards.ie/discussion/comment/123371244#Comment_123371244

Better than nothing believe me, When i lost my job back in 08 i ended up going back truck driving via agencies. At first it was ok getting 40/50hrs a week then the work started to dry up going down to 3 days a week then down to nothing some weeks. Was only when i got some contracting work that i was getting a normal weeks wage that i could save some money. So between 2012 and 2016 while contracting i saved about €20k this was the rainy day fund to pay mortgage bills etc if work dried up. Luckily enough I've been in a full time permanent job since. The €20k i had was used partially to pay a lump of my mortcage and go towards a new car.

Geuze · 01-05-2025 12:55AM

Bear in mind that repaying debt is saving.

So the CSO data on household annual savings includes repayments of debt.

Padre_Pio · 01-05-2025 04:52AM

https://www.boards.ie/discussion/comment/123406723#Comment_123406723

So the savings figures count both mortgage and pension?

Jim2007 · 01-05-2025 07:33AM

https://www.boards.ie/discussion/comment/123406761#Comment_123406761

In a country with a specific policy of encouraging personal wealth accumulation through property ownership it would seem to be a reasonable step…

Otherwise the comparisons would be total nonsense. In Switzerland, we have the opposite policy - property ownership is actively discouraged in favour of a balanced portfolio. So you'd be including say 300K in Swiss portfolio, while leaving out the paying down of a mortgage on the acquisition of a major asset on the Irish side.

Geuze · 01-05-2025 11:08AM

https://www.boards.ie/discussion/comment/123406761#Comment_123406761

Think about it.

Taking out a mortgage or any loan is borrowing.

The opposite of borrowing is saving.

So making repayments of the loan (not the interest) is saving.

Contributions to a DC pension are obviously saving.

I'm not so sure about contributions to a PS DB pension, I wonder is that counted as tax or saving?

How much do you save?

Answers