How much do you spend a month before you actually buy anything?

theteal · 01-02-2019 3:04pm

Scotty # wrote: »

I was thinking the very same!

Groceries €210.00 per week
Diesel €280.00
Toll €70.00
Mortgage €700.00
Gas €63.00
Electricity €162.00
Car Insurance €175.00
Car Loan €265.00
House Insurance €43.90
Mortgage cover €28.45
Phones €60.00
Kids phones €50.00
Panda €74.00 every 3 months
SKY Digital €55.00
Broadband €45.00
BT Sport €27.50
Netflix €13.99
Amazon Prime €9.00
Kids Extra Curricular €120.00 sports, classes, etc
Savings €800.00

Not counting incidentals like take-outs, clothing, medical, dentist, social life, etc, etc, etc.

So about €2.5k not counting savings. Based on two adults and two teenagers.

I know things cost more in Ireland than the UK (and teenagers will eat you out of the house) but that seems a really high amount on groceries. I aim for about £200 per month.

Also, with those TV/Broadband prices, I'm in no hurry to move back. Our Virgin is 100mb, full TV (bar Sky, we can get NowTV is something is of interest) and BT Sport UHD for £33pm. Netflix full package can be got fro cheaper too :cool:

01-02-2019 3:05pm

Interesting thread. I think about something like this every time I get paid and update my spreadsheet.

Currently, my bills/consistent outgoings each month are:

Rent: €525
Eir: €27.50
Spotify: €15
Car Repayments: €312
Phone Bill: €45
Netflix: €11
Savings: €600
Electricity: €65 (This is a guess, I always forget about this, and it comes up every 2 months)

Totals: €1600 per month

On top of that, I have my discretionary budget of
€40 per week general spending (€160 p/m)
€15 per week for lunch at work (€60 p/m)
€30 per week for diesel (€120 p/m)
€50 per week for socialising (€200 p/m)

Total: ~€540 per month

Then each month, there are one-offs such as birthdays for family members. Trips away. Unexpected expenses
Basically €2500 a month is just enough to live on if we want to keep saving

jimgoose · 01-02-2019 3:07pm

ELM327 wrote: »

A car is not an asset it is an expense, therefore should not be financed with capital.

Nonsense. A car is a depreciating asset. Just like houses were back around 2009.

01-02-2019 3:08pm

turdball wrote: »

Not really, why save for a couple of years and then get the car when you can just get a loan.

Same model then is that people shouldn’t get a mortgage if they need the loan

And why even get a loan when some dealerships offer 0% finance.

Scotty # · 01-02-2019 3:08pm

theteal wrote: »

I know things cost more in Ireland than the UK (and teenagers will eat you out of the house) but that seems a really high amount on groceries. I am for about £200 per month.

You mean per week surely? No way you could feed a family of 4 here for €50/week.

theteal wrote: »

Also, with those TV/Broadband prices, I'm in no hurry to move back. Our Virgin is 100mb, full TV (bar Sky, we can get NowTV is something is of interest) and BT Sport UHD for £33pm. Netflix full package can be got fro cheaper too :cool:

Yea I've been looking at this lately, getting TV Broadand all in one pack and if I go with Eir then BTSport is included.

ELM327 · 01-02-2019 3:10pm

jimgoose wrote: »

Nonsense. A car is a depreciating asset. Just like houses were back around 2009.

How is a car an asset? The use of the car is a day to day expense, which manifests as depreciation.

So you take a loan because the opportunity cost (especially for a 0% loan) is higher, and you let the bank take the risk on some of the depreciation (via PCP) It's a win win.

In the time it takes to save up to buy the car, the opportunity cost and cost of inflation will likely be more than the cost of the (often 0-3%) interest.

ELM327 · 01-02-2019 3:10pm

Deleted User wrote: »

And why even get a loan when some dealerships offer 0% finance.

Which is called a "loan".

jimgoose · 01-02-2019 3:11pm

ELM327 wrote: »

How is a car an asset? The use of the car is a day to day expense, which manifests as depreciation.

So you take a loan because the opportunity cost (especially for a 0% loan) is higher, and you let the bank take the risk on some of the depreciation (via PCP) It's a win win.

In the time it takes to save up to buy the car, the opportunity cost and cost of inflation will likely be more than the cost of the (often 0-3%) interest.

The car is an asset. The finance on the asset, e.g. car loan, is a liability, as is the expense of driving it.

Scotty # · 01-02-2019 3:12pm

ELM327 wrote: »

How is a car an asset?

It has a financial value to you. Therefor it is an asset, which is deprecating all the time. To maintain that asset, involves an expense.

ELM327 · 01-02-2019 3:13pm

jimgoose wrote: »

The car is an asset. The finance on the asset, e.g. car loan, is a liability, as is the expense of driving it.

Yes but you do not own the asset.
In the form that it is presented to you, as a leveraged asset if you will, it is an expense in the form of depreciation monthly.

This is more formalized in the case of PCP deals but is equally true for all forms of car finance.

01-02-2019 3:14pm

ELM327 wrote: »

Which is called a "loan".

Ok, I understand what you're saying, but lets get pedantic/off topic
Say a new car is going to cost you €50k
You can afford €50k and have it sitting in your bank account
The dealership will offer you the car on PCP at 0% finance
Would you rather pay the €50k from your account, or pay back €1388.89 a month (€50k/12 months), and let the rest of the money sit in your account, accruing interest, and available in the case of emergencies?

theteal · 01-02-2019 3:16pm

Scotty # wrote: »

You mean per week surely? No way you could feed a family of 4 here for €50/week.

Different family make-up (and different country) but 2 adults and a 2 yr old, yes £50 per week. I'd say standard weekly shop is closer to £40 tbh (it was closer to £30 a year or two ago!), I've allowed extra for nik-naks during the week.

jimgoose · 01-02-2019 3:19pm

ELM327 wrote: »

Yes but you do not own the asset.
In the form that it is presented to you, as a leveraged asset if you will, it is an expense in the form of depreciation monthly.

This is more formalized in the case of PCP deals but is equally true for all forms of car finance.

No, it is not. If you raise a term-loan product with a bank or credit union to buy the car, then you own it and no-one else. The finance on the car, i.e. the aforementioned loan, is your liability and that car is your asset.

ELM327 · 01-02-2019 3:19pm

Deleted User wrote: »

Ok, I understand what you're saying, but lets get pedantic/off topic
Say a new car is going to cost you €50k
You can afford €50k and have it sitting in your bank account
The dealership will offer you the car on PCP at 0% finance
Would you rather pay the €50k from your account, or pay back €1388.89 a month (€50k/12 months), and let the rest of the money sit in your account, accruing interest, and available in the case of emergencies?

The opportunity cost of having the 50k in your bank account is being provided for free via 0% finance.
The interest rate doesn't change things (unless it's something exorbitant like 9%), I would always finance cars even when I have the funds to pay up front.

jimgoose · 01-02-2019 3:20pm

Deleted User wrote: »

...the rest of the money sit in your account, accruing interest, and available in the case of emergencies?

...and you get to call it a "current asset".

ELM327 · 01-02-2019 3:20pm

jimgoose wrote: »

No, it is not. If you raise a term-loan product with a bank or credit union to buy the car, then you own it and no-one else. The finance on the car, i.e. the aforementioned loan, is your liability and that car is your asset.

Yes but that is not, as I stated "a form of car finance". That is a personal loan which you elect to spend on a car. A subtle difference but one which changes the ownership and expense question a nuance.

jimgoose · 01-02-2019 3:21pm

ELM327 wrote: »

Yes but that is not, as I stated "a form of car finance"...

Of course it is, what else would it be?

The original topic didn't say anything about different types of finance, only ISTR the term "car loan" was mentioned once or twice.

BrokenArrows · 01-02-2019 3:21pm

The second the pay comes in about 2k goes out.

:mad:

D3V!L · 01-02-2019 3:23pm

Currently saving for a house. All my salary is accounted for apart from €80 a week for myself.

I'm not going into figures but I'm saving a third of my salary, then paying rent on a 2 bed house and then repayments for a bike loan. I basically have the €80 as pocket money or I'd go mad.

TeaBagMania · 01-02-2019 3:30pm

D3V!L wrote: »

Currently saving for a house. All my salary is accounted for apart from €80 a week for myself.

i know the feeling brother, im on the fast track to get my mortgage paid off, almost every penny i earn goes towards the principal.
Should be finished in no more than 15 months. (its the only debt i have left)

it sux but you have to sacrifice now to have a better life tomorrow

q85dw7osi4lebg · 01-02-2019 3:31pm

McGaggs wrote: »

This planet. I've never had a car loan.

When you have a car loan you can avoid having a car which leaks water into the boot of your focus. :pac:

The J Stands for Jay · 01-02-2019 3:46pm

Lylah Sharp Yogurt wrote: »

When you have a car loan you can avoid having a car which leaks water into the boot of your focus. :pac:

Nah, I stumped up the cash to replace it with a Mondeo. It took me long enough to realise the boot wasn't getting wet through me opening it in the rain...

professore · 01-02-2019 3:53pm

ELM327 wrote: »

Nespresso subscription 40

Jesus H Christ ....

holliehobbie · 01-02-2019 4:04pm

gibgodsman wrote: »

Rent - 550
TV - 30
Internet - 67
ESB - 150

So not much when compared to yourself but for me its quite a bit considering my pay is awful for someone with an Honors Degree....

Are you in the US?

gibgodsman · 01-02-2019 4:33pm

holliehobbie wrote: »

Are you in the US?

Nope, Meath, Originally from Dublin

ELM327 · 01-02-2019 4:36pm

jimgoose wrote: »

Of course it is, what else would it be?

The original topic didn't say anything about different types of finance, only ISTR the term "car loan" was mentioned once or twice.

A car loan is a loan for a car, what you said was a personal loan that the recipient opted to buy a car with. Different proposition with an entirely different use case, and exponentially higher finance costs usually/

professore wrote: »

Jesus H Christ ....

Gotta have some coffee at work.

holliehobbie wrote: »

Are you in the US?

They don't call the electricity companies ESB in the US
I don't understand the question.

holliehobbie · 01-02-2019 5:00pm

ELM327 wrote: »

jimgoose wrote: »

Of course it is, what else would it be?

The original topic didn't say anything about different types of finance, only ISTR the term "car loan" was mentioned once or twice.

A car loan is a loan for a car, what you said was a personal loan that the recipient opted to buy a car with. Different proposition with an entirely different use case, and exponentially higher finance costs usually/

professore wrote: »

Jesus H Christ ....

Gotta have some coffee at work.

holliehobbie wrote: »

Are you in the US?

They don't call the electricity companies ESB in the US
I don't understand the question.

Did you get your Honor degree in the US?

jimgoose · 01-02-2019 5:05pm

ELM327 wrote: »

A car loan is a loan for a car, what you said was a personal loan that the recipient opted to buy a car with. Different proposition with an entirely different use case, and exponentially higher finance costs usually...

Yes, I know all that - products such as BoI's "Motorloan" will give you more bobs at lower interest because these particular personal loans are partially collateralised by a... oh dear...

petes · 01-02-2019 5:05pm

Working class heroes wrote: »

I get give or take, it works out at about with expenses 140,000 a year and I pay 30.3% tax on that, so it’s about a net 100,000 and out of that 100,000 I run a home in Dublin, Castlebar and Brussels. I wanna tell you something, try it sometime.

So should you!

01-02-2019 6:24pm

Mortgage - €700
Interwebs - €60
ESB/Gas - ~€160

So I am well within my budget.. yet somehow keep getting suckered into personal bank loans the whole time. I only get paid once every 6-7 weeks, and although that's been the case for the past 18-20 months, I still seem to be struggling with spreading my money out to cover all that time. I keep running short on it, out of poor budgeting.

facehugger99 · 01-02-2019 8:15pm

Deleted User wrote: »

Mortgage - €700
Interwebs - €60
ESB/Gas - ~€160

So I am well within my budget.. yet somehow keep getting suckered into personal bank loans the whole time. I only get paid once every 6-7 weeks, and although that's been the case for the past 18-20 months, I still seem to be struggling with spreading my money out to cover all that time. I keep running short on it, out of poor budgeting.

Maybe because you don't allow for things like food, transport, insurances, entertainment, savings, etc, etc, and stuff like that?

Crock Rock · 01-02-2019 9:43pm

Henley Lazy Gourd wrote: »

I find that everything I spend is to buy something. Your mortgage is buying a house, a car loan is buying a car, bills for gas or electricity are buying gas and electricity, phone and TV bills are for buying those services. So I don't spend anything without buying something.

OP, I think you meant to ask: How much do you spend on essentials before being able to spend on non-necessities

pwurple · 01-02-2019 10:50pm

ELM327 wrote: »

Tenner in a card? Do you hate the child or something? Jebus I'd be scarlet giving that. Anyway the question was about how much goes out on recurring payments **before you buy anything** not on budgeting your entire income.

Scarlet, really. How many kids parties do your kids go to? Mine do about 2 parties a month, each. I am fairly ambivalent to other children to be honest. Tell me, what’s the going rate for ye... 50 quid and keys to a Porsche is it?

And you will see there, I haven’t bought anything I would consider discretionary. No charity donations, no books, nothing for me. Just kids stuff and groceries and bills. Those are all regular expenses. Holiday is budgeted for, could argue that one maybe. But there are HUGE holes in those lists. I don’t see transport down there for many. Are they all walking around? No leap cards, no car insurance/fuel?

If you think car tax is not a bill... dunno what to say to you.

pwurple · 01-02-2019 10:56pm

Actually, those on about the car loan... I took out a car loan 4 years ago. Bought an electric car. The cost of the loan repayment, was less than I had been spending on car tax and petrol. Loan lasted 3 years. Have the car 4 years. It’s now earning me that spending power (300 per month)... and I have a car worth 12k. so that loan was an investment.

holliehobbie · 01-02-2019 11:52pm

Phones €40
Medicines €60
Private Health Insurance €130
Mortgage and mortgage protection (a lot less than most people in Ireland)
GP and Consultants fees approx. €50
Netflix €11
Internet €45
No car
Travel approx. €100
House Insurance €21
Life assurance €47
Gas and Electricity €110
All above per month
Food €120 per week
I have a rare, probably inherited disease, that has caused me a lot of health problems over the last few years. And I had unsuccessful surgery to treat it. The health insurance is essential for me as I would be dead only for having it.

holliehobbie · 01-02-2019 11:56pm

Forgot the bins : €30 per month.

Wildly Boaring · 02-02-2019 12:32am

Car €265
Wife's phone €20
Sky €30
Childcare €350
Bins €30
ESB €60
VHI €75

House bought for cash during downturn after saving like hell for 10 years. This keeps any stress away these days.

2 cars. One (wife's) new PCP. Other paid over last 2 years. Prefer to keep cash and finance cars.

Childcare cost be gone in Sept.

Saving well. Will use most for small extension next year.

I put my mileage money to a separate account, pays my running costs and will change my car in 18 months or so. Like to buy low mileage in UK 3 or 4 year old and drive till I can still sell for reasonable money (when I have enough mileage savings too)

notsoyoungwan · 02-02-2019 8:56am

Mortgage 1200
Mortgage protection 25
ESB 50
Phone/mobile/internet/tv/Netflix/Spotify 160
Health insurance 105
Work insurance 325
Union sub 58
Bins 26
Car insurance 62
Heating approx 100 (not sure on exact figure, I just fill the oil tank twice a year)
House insurance 20
Fuel varies, anything from 100-300

So anything from 2200-2400 before I’ve eaten a bite or drank a drop!

Obvious Desperate Breakfasts · 02-02-2019 9:42am

TeaBagMania wrote: »

i know the feeling brother, im on the fast track to get my mortgage paid off, almost every penny i earn goes towards the principal.
Should be finished in no more than 15 months. (its the only debt i have left)

it sux but you have to sacrifice now to have a better life tomorrow

Don’t sacrifice too much though. Nobody knows if they have tomorrow after all. I’d rather slightly lower repayments in order to enjoy the day at hand more.

Pac1Man · 02-02-2019 9:51am

I've spent the last three years trying to be sensible by driving a dull diesel but now I have the car bug again.

Why are you all making me feel guilty about wanting a car loan to get something nice?

Scotty # · 02-02-2019 2:26pm

92 posts about personal finance and only one person has used the work 'pension' (and that was edited in later!). I don't have a pension but I don't plan on retiring either.

Trigger Happy · 02-02-2019 2:48pm

Scotty # wrote: »

92 posts about personal finance and only one person has used the work 'pension' (and that was edited in later!). I don't have a pension but I don't plan on retiring either.

I reckon as pension is deducted at source it is not considered a real spend in the context of this thread?

Wildly Boaring · 02-02-2019 2:48pm

Scotty # wrote: »

92 posts about personal finance and only one person has used the work 'pension' (and that was edited in later!). I don't have a pension but I don't plan on retiring either.

Mine comes off gross. Private one matched by employer. That money never enters my account

Scotty # · 02-02-2019 2:52pm

blackbox wrote: »

In my mind, if you can't afford a car without a loan, you can't afford it.

There are pro's and con's to both but most financial advisors will tell you it is better to take the loan so you still have your money available to you should you need it. Extensions, attic conversions, cars, anything that will still have a value after the debt is cleared is generally better to borrow for. Marriage, holidays, Christmas, one off's that have no future value are better to save for.

amcalester · 02-02-2019 3:04pm

Wildly Boaring wrote: »

Mine comes off gross. Private one matched by employer. That money never enters my account

I’m the same, currently paying c. €900 from my gross into a pension and €1400 covers my share of the bills; mortgage, various insurances, household bills etc

The rest is discretionary spending and savings.

02-02-2019 3:04pm

I pay my rent six months in advance but if I didn't, it's $700 rent, $40-70 electricity, and $100 health insurance.

My rent includes internet, tv etc. My moped was paid for with cash. No tax on it or at least I don't know about it, and petrol is around $20/month. I don't bother with pension.

Not too bad I guess.

02-02-2019 3:10pm

blackbox wrote: »

In my mind, if you can't afford a car without a loan, you can't afford it.

Nonsense, if you can afford your repayments you can afford the car.

I get car loans even though I could buy for cash as it’s very bad financial management to use a load of your cash to buy things like a car. Putting some cash in as a deposit and getting a loan for the rest is far more sensible.

02-02-2019 3:16pm

Macie Delicious Brunette wrote: »

Nonsense, if you can afford your repayments you can afford the car.

I get car loans even though I could buy for cash as it’s very bad financial management to use a load of your cash to buy things like a car. Putting some cash in as a deposit and getting a loan for the rest is far more sensible.

Not all your cash, but if you can buy outright and have your emergency fund or whatever, it's good surely?

martingriff · 02-02-2019 4:06pm

Scotty # wrote: »

I was thinking the very same!

Groceries €210.00 per week
Diesel €280.00
Toll €70.00
Mortgage €700.00
Gas €63.00
Electricity €162.00
Car Insurance €175.00
Car Loan €265.00
House Insurance €43.90
Mortgage cover €28.45
Phones €60.00
Kids phones €50.00
Panda €74.00 every 3 months
SKY Digital €55.00
Broadband €45.00
BT Sport €27.50
Netflix €13.99
Amazon Prime €9.00
Kids Extra Curricular €120.00 sports, classes, etc
Savings €800.00

Not counting incidentals like take-outs, clothing, medical, dentist, social life, etc, etc, etc.

So about €2.5k not counting savings. Based on two adults and two teenagers.

If it was a thread in budgeting you be correct but it ain't. Read the thread title

Scotty # · 02-02-2019 5:16pm

martingriff wrote: »

If it was a thread in budgeting you be correct but it ain't. Read the thread title

Well in that case the answer is ZERO and the answer for everyone else in the thread is also ZERO.

Unless you can give me some examples of how you spend your money without buying anything?

How much do you spend a month before you actually buy anything?

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