How much savings do you have and what age are you?

Lyra Fangs · 22-05-2020 11:51am

This thread is making me panic something fierce :eek:

I'm in my current role almost 2 years making a reasonable wage. Before that I was 3-4 years working for much less in Dublin (< 25k gross/yr). For the full 6 years I've been paying the usual mental rent, bills etc etc.

I feel like I've only really been able to start saving these last two years and even then it's not much to write home about...

Any words of wisdom from the people doing so well?

(I spent my 20s with my head stuck in a book so no fear that nights out are where my money went

)

BohsCeltic · 22-05-2020 12:22pm

Lyra Fangs wrote: »

This thread is making me panic something fierce :eek:

Any words of wisdom from the people doing so well?

It depends on how you define doing well. I have friends who are well paid and have a nice home, family e.t.c but they would often tell me they would love to live the life i lived.
That is just going travelling at the drop of a hat when i have enough money saved.

This could all change though after we get over this virus. The OH is also fixated on wanting a baby too.

nthclare · 22-05-2020 12:33pm

I blew half my savings today on a chainsaw, I'm delighted with my purchase.

And I'm going to buy a forest master saw horse tomorrow.

It'll pay for itself in 3 hour's. That's what I call an investment.

None of this blowing money on fluctuating shares and fluffy white cloud's.

I know there's products out there worth investing in, but like I said previously I don't want to be investing in people's misery, money comes and goes.

If I won the lottery I'd builld a surf ranch near the coast, something like Kelly Slater's set up.
Because it'll cost me nothing, and I'd be happy to provide waves during calm period's so surfer's have somewhere to go and practice.
I would charge a lot to have a go either..

vmb · 22-05-2020 1:01pm

Donald Trump wrote: »

People who say such things are often those with decent jobs.

There are probably people much less than you but who can survive. And you are probably earning more than you were 5 years ago.

It is generally the case that people set their point of reference where they are now. If you get a 10% raise next year, you'll go and buy something new or reset your reference point in some other way.

That's key. My salary has been growing strongly during these years, but I have not increased my expenses.
I've always lived in places with solid public transport so I do not need a car, as I understand cars are extremely expensive. If I need it, I just rent a gocar.

22-05-2020 1:08pm

antimatterx wrote: »

Loans and Credit cards are absolutely not evil. They're tools to be used, and there's no reason to ever pay interest on your credit card.

You sound like you know a thing or two about credit cards. I've never used one. So I'm curious, if I take out a credit card that offers 0% interest for 12 months (off the top of my head, I think An Post are doing this at the moment), can I then use the card to, for argument sake, pay €10k off my mortgage, and so long as I pay the 10k back to the credit card within 12 months, I am effectively after getting a 'free' loan?

22-05-2020 1:09pm

Also has anyone watched that RTE show "how to be good with money"?

sportsfan90 · 22-05-2020 1:16pm

Deleted User wrote: »

Also has anyone watched that RTE show "how to be good with money"?

Yeah I enjoy Eoin McGee's tv shows and his radio contributions.
I'm currently reading his book of the same name.

Cal4567 · 22-05-2020 1:22pm

62 and have 45k now saved. (Am I the oldest person on Boards?) Only been able to really save once we paid the mortgage off. House worth about 300k. The plan is to work to 65 with about 100k saved between the two of us. Worked a lot in the UK before coming back home in 2004 so qualify for a UK pension as well, if they are around in the future. We have two small private pensions. Once the mortgage was out of the way, saving has come a lot easier. We have a combined income of around 100k. I was unemployed for 2 years after the crash. While the redundancy payment covered monthly mortgage payments, literally the month that ran out, I got some work, in 2013 although my wife kept her PS role.

We then took advice we were given back in the 80s and that was to try and overpay your mortgage every month. A decision I wished I had acted upon much earlier. We had our first foreign holiday in 2017, after 11 years. Our other regret was coming late to the idea of a private pension. Didn't start until we were close to 40.

Planning to sell our house here in north county Dublin in the next couple of years and help the kids out with mortgages as much as we can although they are in secure enough and well paid work, already have as much as we do in savings, they stayed living with us.

My advice to anyone in their 20s would be to stay at home if they can and save. Once you get offered a work pension, take it. You cannot start early enough. And overpay that mortgage if you can each month.

Have a Plan B if this upcoming recession hits us, but's a good idea for a new thread.

lainey_d_123 · 22-05-2020 1:30pm

Mister Vain wrote: »

I started to make more of an effort to save last year. Cut back on takeaways, started shopping in Aldi, spending less on clothes and so on. I saved a fair bit but then the gearbox in my car decided to die and it cost me an arm and a leg to get it fixed.

I already do all that but still struggling to save what I want to. I think my costs are just too high in London. My company is floating the idea of us being able to work remotely on a permanent basis. I'd save up to £600-700 a month just from living in a cheaper city.

I need to work on getting some other income streams together as well. A friend of mine is making over 2 grand a month from an app he made, all just straight into his savings (he has a day job) but I'm not at the level where I can do that yet and not sure what else to do.

fits · 22-05-2020 1:43pm

40. have a few months expenses in cash. Saving up for next car as loan averse. Anything in excess of that the plan is to use to overpay the mortgage but hasn’t happened in practice yet and we just fixed for 5 years at 2.5%.

Have had investments in the past but am more risk averse now as I have a son with special needs and we need to make sure his future is secure. So we have a life assurance that will set him up with a trust fund. Anything else is used to minimise loan commitments and pay down mortgage.

c.p.w.g.w · 22-05-2020 1:44pm

fits wrote: »

40. have a few months expenses in cash. Saving up for next car as loan averse. Anything in excess of that the plan is to use to overpay the mortgage but hasn’t happened in practice yet and we just fixed for 5 years at 2.5%.

Have had investments in the past but am more risk averse now as I have a son with special needs and we need to make sure his future is secure. So we have a life assurance that will set him up with a trust fund. Anything else is used to minimise loan commitments and pay down mortgage.

Who are you with for your mortgage?

s1ippy · 22-05-2020 1:53pm

NSAman wrote: »

This drives me nuts.

The woman should not have a care in the world. We pay everything for her. She refuses to go to dinner unless she is paying (so of course we say yes and get the bill), she refuses to spend money on herself (so of course the grandkids is the perfect excuse to bring her to the shops and we get the bill)

She refuses point blank to travel.... no getting around that one.

Yes saves, she turns the lights off, she keeps the house heating down.

The one thing we as a family always want is for her to not want for anything, yet she economizes, she saves, she re-uses, she fixes things (in her 80s that is amazing).

She has her funeral paid for. She has the money for her "wake".

She always tried to pay for petrol, which of course we do not let her pay for. Then she gets annoyed at us for spoiling her.

I think it is innate that she has always looked after us as kids and wants to continue that. As adults we just want to make her enjoy herself.

I hear you, the old lade's the same. Instead of pressuring her to enjoy herself (how do you force someone to enjoy themselves??), I compliment how thrifty and sensibly-minded she is and get her simple presents that I know she'll like, or make gestures she'll appreciate. At the end of the day she is an adult who has earned the right to be as frugal as she wants and she obviously gets satisfaction out of it. She's delighted to have somebody acknowledge how sensible she is. I learned a long time ago that it's not worth getting annoyed about other people's priorities and live and let live if it'll make them happy.

Old dog new tricks etc.

I'm nearly 30 and all-told I have over €15k in investments, savings, crypto and gold and another €25 in non-liquid assets (edited from €15 to reflect assets I would never part with). OH has saved 15k. Most of it has been accumulated in the last two years, the savings account only exists to fund the mortgage because as many posters have said inflation will render it useless if it's just being held over long periods with the paltry interest rates available to civilians.

I moved county at 18 to study and worked throughout in a well-paid agency, cost of living was a lot less and rents were lower so I had a fantastic time in college but accrued no debt. I moved back to Cork at the end my final year and rented in town with friends and my partner. I didn't have a lot of regular work then but continued the work I was doing in college and I played music every weekend to pay the bills and rent. I also made good money from extra bits of work that came my way the odd time. I was very much living week to week then and saved nothing but absolutely tore it up and wouldn't trade it for anything.

Those were the best years of my life, I busked and played in bars while travelling around nearly every country in Europe, spent hardly any money on those trips as I recouped the day's costs and made a lot of friends who would put me up in their houses or point me to the safest, cheapest hostels. I had planned to go to Spain in July and make my way up the coast from Malaga to Barcelona then cross over to the islands. I'm a bit disappointed, but maybe some other time.

The idea would be to do something similar to what nthclare did - once we buy our property, we can be self-sufficient enough to be able to organise our schedules and work to only do what we want. Although currently my job involves travel, a lot of it is being put online now so it's looking like more and more of a possibility that we might achieve that, pending the housing market not going to absolute sh!t.

I'm gobsmacked by this thread tbh, there are some amount of people of all ages (Saving: Suitable for those aged 5 - 65) sitting on huge sums of money if it's to be believed! Fair dues to those people, I hope it means a nice break from working your ass off.

https://www.youtube.com/watch?v=IN5iRsGukZc

fits · 22-05-2020 1:58pm

c.p.w.g.w wrote: »

Who are you with for your mortgage?

Haven

Another thing I’ll add. It’s great to be frugal but for goodness sake enjoy life too. Some people posting on this thread will get sick or die young or have sick children. Life can throw some curveballs so don’t put it all off into the future.

ILikeBoats · 22-05-2020 1:59pm

s1ippy wrote: »

I'm nearly 30 and all-told I have over €15k in investments, savings, crypto and gold and another €25 in non-liquid assets (edited from €15 to reflect assets I would never part with).

Just regarding the gold - have you invested in it and physically have it? Or how does it work?

blade1 · 22-05-2020 2:30pm

'bout three fiddy

carzony · 22-05-2020 2:33pm

I'm 28 and have 35,000 saved, no loans to my name. I've been saving heavily in the last 3- 4 years.

HugsiePie · 22-05-2020 2:58pm

Jesus I thought I was doing really well till I came here. I'm 25 with about 17k saved. Now I am wondering where do I spend all my money that Im not up on 40-60k like the rest of people in my age bracket :P I went straight to full time employment after finishing college, I never did travelling or a masters or a major relationship or mortgage or family, my rent is cheap, I dont even have car expenses I just use public transport. To think I thought I was doing better than average. What the hell are you all doing for a living and how do I get in on it?!

c.p.w.g.w · 22-05-2020 3:00pm

fits wrote: »

Haven

Another thing I’ll add. It’s great to be frugal but for goodness sake enjoy life too. Some people posting on this thread will get sick or die young or have sick children. Life can throw some curveballs so don’t put it all off into the future.

Oh i hear you...I don't go mad with being frugal still enjoy a steak every week, good quaility beer when i drink...I also have this mad dream of building a house in the country and keeping bee's...so the sooner i can clear my current mortgage the better

Geuze · 22-05-2020 3:19pm

HugsiePie wrote: »

Jesus I thought I was doing really well till I came here. I'm 25 with about 17k saved. Now I am wondering where do I spend all my money that Im not up on 40-60k like the rest of people in my age bracket :P I went straight to full time employment after finishing college, I never did travelling or a masters or a major relationship or mortgage or family, my rent is cheap, I dont even have car expenses I just use public transport. To think I thought I was doing better than average. What the hell are you all doing for a living and how do I get in on it?!

You say your rent is cheap, and you don't have a car.

So you could be saving 500 - 1000 per month?

After three years work, that's 20k.

voluntary · 22-05-2020 3:25pm

WARNING! Young savers are often staying savers for life. They save and postpone enjoying life for later and the 'later' never comes. I think the first time you regret this will be when you hit 40 and realize you can't get the lost moments back even with 10 times the amount of cash you managed to save.

Thank you for your attention.

august12 · 22-05-2020 3:36pm

[Deleted User] wrote: »

You sound like you know a thing or two about credit cards. I've never used one. So I'm curious, if I take out a credit card that offers 0% interest for 12 months (off the top of my head, I think An Post are doing this at the moment), can I then use the card to, for argument sake, pay €10k off my mortgage, and so long as I pay the 10k back to the credit card within 12 months, I am effectively after getting a 'free' loan?

Doubtful you would.get a 10,000 credit limit on a credit card and secondly, credit card won't be accepted for mortgage payments, as far as I know.

tobottherobot · 22-05-2020 3:44pm

I'm 31, almost 32. In the last 12 months we've bought a house in Dublin, got married and a new car so I'm back to ground zero (or ~€5k in stock, savings etc.).

Not fully sure on the exact amount as I had so much going in and out for the past 18 months but probably had 70-80k put aside. I don't mind that though... I'm pretty good at saving and should clock up north of €15k this year. I'd class myself frugal but I still travel a fair amount (although when I do I wouldn't be too flash with the accomodation), drink nice beer, eat nice food etc. I came out of college in 2010 and didnt really start a proper job until mid-2013 due to the recession and going back to college etc. so it probably took me 6 years to save that.

To some people, saving is the net balance between what you earn and what you spend... I've never really worked like that - if I leave money in my current account I'll find a way to spend it. The day I get paid is the day my savings leave my account and go into credit union... out of site and and of mind. I think a lot of people would be suprised at how much you can reduce outgoings by limiting the amount you allow yourself to spend on them.

Jim2007 · 22-05-2020 3:45pm

voluntary wrote: »

WARNING! Young savers are often staying savers for life. They save and postpone enjoying life for later and the 'later' never comes. I think the first time you regret this will be when you hit 40 and realize you can't get the lost moments back even with 10 times the amount of cash you managed to save.

Thank you for your attention.

Except it does not have to be one or the other... you can save, spend sensibly and still enjoy yourself.

Josuke · 22-05-2020 3:55pm

Not going to lie, reading this thread has really scared me. I've just turned 26 with about 4k saved and recently purchased my first car. About to leave my postgraduate course due to illness so will only have a bachelors degree and research experience. I have a long-term partner and want to someday move out of my parents home (next 2 years) have children (in 5-7 years) but it feels like wishful thinking at the moment

nutjobb · 22-05-2020 4:35pm

29 now have 12k in bank, bout 2.5k in shares.

Started my apprenticeship at 22 and had no money until I turned 26 and went from 30k pa to 57k, got lucky with a MNC job.

In the time since I have house deposit paid (160k house), paid for a college course online (7k) and had 4 big holidays.

I'm almost at the stage now where I would take a significant drop in money for an easier life. 160km round trip and long days.

Money isn't everything and while I would have been extremely motivated by a big bank balance, I now realise time and health is more important. I suppose its easy to say as I know many people struggling financially so I do feel very fortunate to be where I am today.

In my experience I would say most of the posters in this thread this far are far above average but wish everyone success.

Gmol · 22-05-2020 5:34pm

I think there is a lot of personal wealth being held. People remember the 2008 recession and are more conservative in saving money and paying down debt.

Geuze · 22-05-2020 6:01pm

Gmol wrote: »

I think there is a lot of personal wealth being held. People remember the 2008 recession and are more conservative in saving money and paying down debt.

Yes.

There is 800 bn in household wealth.

Financial assets have been rising, while liabilities have been falling.

nthclare · 22-05-2020 6:02pm

HugsiePie wrote: »

Jesus I thought I was doing really well till I came here. I'm 25 with about 17k saved. Now I am wondering where do I spend all my money that Im not up on 40-60k like the rest of people in my age bracket :P I went straight to full time employment after finishing college, I never did travelling or a masters or a major relationship or mortgage or family, my rent is cheap, I dont even have car expenses I just use public transport. To think I thought I was doing better than average. What the hell are you all doing for a living and how do I get in on it?!

I know a lot of people who used to be at this in the 00's oh how much is your house worth ???

Well mine went up by so much thousand in the last so many month's, the usual jocks who are into wuby and gaa and their whole lives revolved around bootcut jeans and gammy shoes.

You'll see them in copperface jack's in Dublin and O'Riordans in Cork, shower of wannabe toffs.
Zero class or any interesting about them, they're as boring as fck too.

Go on YouTube and search for Billy Connolly toffs for dinner

And around 4 minutes in he rips the sh1t out of the middle classes.

It's really interesting to listen to, and I totally identify with his observation.

The working class honest people and the toffs seem to get along, it's the middle class **** who **** the whole thing up for everyone

RandomViewer · 22-05-2020 6:17pm

Gmol wrote: »

I think there is a lot of personal wealth being held. People remember the 2008 recession and are more conservative in saving money and paying down debt.

Wouldn't worry to much about the saving but try to avoid the debt, if you fall behind they make it almost impossible for you to catch up

Tar.Aldarion · 22-05-2020 6:30pm

Lyra Fangs wrote: »

This thread is making me panic something fierce :eek:

I'm in my current role almost 2 years making a reasonable wage. Before that I was 3-4 years working for much less in Dublin (< 25k gross/yr). For the full 6 years I've been paying the usual mental rent, bills etc etc.

I feel like I've only really been able to start saving these last two years and even then it's not much to write home about...

Any words of wisdom from the people doing so well?

(I spent my 20s with my head stuck in a book so no fear that nights out are where my money went )

I have quite a bit saved, but I could have a lot more or less and really it wouldn't make much odds to me. I could have 3 or 4 times my salary by moving to the US, but I don't. Once you save for rainy days (or particular goals like a deposit) and your retirement in a reasonable way I wouldn't focus too heavily on money. Enjoy your hobbies, friends, and your life.

Some people save too little, some too much, find a balance. I still spend money eating out a lot with friends, dance classes, climbing, gym and so on, but the main thing is to budget and have goals in mind. At the end of the day save somewhat and enjoy your relationships with people, that is what you will remember.

If I had one tip about saving it would be putting money into a pension for the tax deferred growth, especially if you can get employer to match. Compound interest adds up to a lot, and as it is taken from your wages you easily learn to deal with it, since you never had it in your hands. Apart from this, save at least a few months expenses and aim for saving more on top of this. I use separate bank accounts for this.

s1ippy · 23-05-2020 12:09am

ILikeBoats wrote: »

Just regarding the gold - have you invested in it and physically have it? Or how does it work?

http://www.moneyguideireland.com/is-buying-gold-a-good-idea.html

I bought through Uphold https://uphold.com/

It's a great site, will sort you for good few crypto as well.

lainey_d_123 · 23-05-2020 9:22am

Geuze wrote: »

You say your rent is cheap, and you don't have a car.

So you could be saving 500 - 1000 per month?

After three years work, that's 20k.

That's about what he or she HAS saved. Assuming finishing college at 22, they've saved 17K in under 3 years, which seems like absolutely loads to me.

Seems like a different world now to how it was when I graduated. I have only been able to save 500-1000 a month since I was 33, and then only because I flatshared, with all the lifestyle sacrifice and strain that comes with sharing with randomers in your thirties.

For me, a lot of the numbers here simply do not add up. I think a lot of the young people saying they've saved thousands have had significant help, either from inheritances, trust funds, living with parents while working full time or other things. Maybe a minority of them have extremely well paying jobs in tech or finance, but the average salary and the average living costs simply do not allow large amounts of money to be saved each month.

23-05-2020 11:22am

lainey_d_123 wrote: »

For me, a lot of the numbers here simply do not add up. I think a lot of the young people saying they've saved thousands have had significant help, either from inheritances, trust funds, living with parents while working full time or other things. Maybe a minority of them have extremely well paying jobs in tech or finance, but the average salary and the average living costs simply do not allow large amounts of money to be saved each month.

Does this some how make savings invalid? People were asked their savings it doesn’t really matter how they have accumulated them. You can just say “the figures don’t add up” if for example people who are happy to live at home for much longer have saved more. Yes many can’t but a large number if people who move out do it by choice.

Rent is much lower for some too, especially for the period after the recession up to a few years ago where people in decent houses on good money were paying no more than around 300 euro a month for a room (outside Dublin anyway).

Similar for a gift/inheritance/redundancies etc lots of people get these so you can’t just exclude them when having a discussion about savings for an age etc.

Mrcaramelchoc · 23-05-2020 11:23am

Its amazing the amount of information people give away in here.

23-05-2020 11:35am

Mrcaramelchoc wrote: »

Its amazing the amount of information people give away in here.

Its an anonymous message board and it’s only numbers what is anyone going to do with the information of some random username has x amount of money?

lainey_d_123 · 23-05-2020 11:45am

Bradley Wide Snotty wrote: »

Does this some how make savings invalid? People were asked their savings it doesn’t really matter how they have accumulated them. You can just say “the figures don’t add up” if for example people who are happy to live at home for much longer have saved more. Yes many can’t but a large number if people who move out do it by choice.

Rent is much lower for some too, especially for the period after the recession up to a few years ago where people in decent houses on good money were paying no more than around 300 euro a month for a room (outside Dublin anyway).

Similar for a gift/inheritance/redundancies etc lots of people get these so you can’t just exclude them when having a discussion about savings for an age etc.

It makes the comparison invalid. People are feeling really bad about themselves because they can't work out why other people have saved so much more. In the vast majority of those cases, it's probably those other people have had substantial financial help, usually from parents.

People are very slow to admit their good fortune, and very quick to make out that they've been good with money. If you have a full time job and live at home, it's not even a sacrifice to put 1000+ euro away every month. You can do that and still have money for going out, holidays, etc. Try putting away 1000 euros a month when you're paying Dublin rent, bills, food and transport costs.

The truth is that a lot of people, especially under 30, are doing well to save anything at all if they have an average salary and average living costs.

Padre_Pio · 23-05-2020 12:05pm

Comparison is the thief of joy.

Mister Vain · 23-05-2020 12:23pm

I know a bloke who buys a tin of baked beans on Tuesday so he can have a bubble bath on Wednesday.

23-05-2020 1:18pm

lainey_d_123 wrote: »

It makes the comparison invalid. People are feeling really bad about themselves because they can't work out why other people have saved so much more. In the vast majority of those cases, it's probably those other people have had substantial financial help, usually from parents.

People are very slow to admit their good fortune, and very quick to make out that they've been good with money. If you have a full time job and live at home, it's not even a sacrifice to put 1000+ euro away every month. You can do that and still have money for going out, holidays, etc. Try putting away 1000 euros a month when you're paying Dublin rent, bills, food and transport costs.

The truth is that a lot of people, especially under 30, are doing well to save anything at all if they have an average salary and average living costs.

Everyone’s situation is different that’s not up for debate but where should we draw the line on who can say they have savings. Live at home: invalid, cheap rent:invalid, inheritance: invalid, redundancy: invalid, well paid job: invalid and so on. Basically only people who meet a very strict criteria are entitled to give their savings number and any other persons numbers “don’t add up”.

Would make for a fairly pointless thread. People were asked to give their age and savings we will get a very varied response from people in different situations but they are all equally valid.

23-05-2020 2:02pm

Josuke wrote: »

Not going to lie, reading this thread has really scared me. I've just turned 26 with about 4k saved and recently purchased my first car. About to leave my postgraduate course due to illness so will only have a bachelors degree and research experience. I have a long-term partner and want to someday move out of my parents home (next 2 years) have children (in 5-7 years) but it feels like wishful thinking at the moment

At 26 I was doing well to have anything saved.

Below is my situation, based on real-life, written out twice. Both these describe me at the moment:

1) I'm 32 in two weeks. I have my house nearly paid off (less than 40k to go to clear the mortgage) have about 10k in savings and work a relatively well paid job.

2) I'm 32 in two weeks. I have nearly paid off my house, but it's in a siht-hole area, so I'm hoping to clear the mortgage as soon as possible so i can try and save aggressively to buy a derelict rural house that I can do up and move to. I bought my house off the council so got a discount on the market rate. I've about 10k saved, but I can't access it as it's held as security against the mortgage along with the house (credit union). I have no formal education and contract for a company who pay me well, but the job could disappear overnight.

In 1) i sound like I'm on top of the world. In 2) I sounds like I'm about 15 years behind where I 'could' be, and it acknowledges the luck I've had with getting a cheaper house, and how ultimately it's not a great area so i want to move away, making it an expensive, but not entirely beneficial, purchase.

It's easy to make your situation sound a lot better than it is. I imagine there's lots of that going on in this thread.

lainey_d_123 · 23-05-2020 2:06pm

Bradley Wide Snotty wrote: »

Everyone’s situation is different that’s not up for debate but where should we draw the line on who can say they have savings. Live at home: invalid, cheap rent:invalid, inheritance: invalid, redundancy: invalid, well paid job: invalid and so on. Basically only people who meet a very strict criteria are entitled to give their savings number and any other persons numbers “don’t add up”.

Would make for a fairly pointless thread. People were asked to give their age and savings we will get a very varied response from people in different situations but they are all equally valid.

It's invalid if those people are pretending it's all down to their own hard work, which a lot of people do. Age, salary and whether you go to Starbucks or not is totally irrelevant if you've inherited the family farm or lived at home rent free for a decade on a 70k salary.

No problem with people explaining and being honest about how they saved so much.

timple23 · 23-05-2020 3:20pm

A small bit off-topic, but as someone who always saved for something before buying it, will I be at a disadvantage when going for a mortgage as I would have no credit history?

sKeith · 23-05-2020 3:28pm

timple23 wrote: »

A small bit off-topic, but as someone who always saved for something before buying it, will I be at a disadvantage when going for a mortgage as I would have no credit history?

If you have a healthy bank balance, then I wouldn't think so.
Show money going into your account and a history of savings is whats needed.
Then show that your income can easily cover the mortgage after all your outgoings have been serviced.
Unfinished loans and any missed payments for loans will be looked at.
Payments to bookies websites will be scurtinized too.

Andrewf20 · 23-05-2020 3:31pm

timple23 wrote: »

A small bit off-topic, but as someone who always saved for something before buying it, will I be at a disadvantage when going for a mortgage as I would have no credit history?

I don't think it's an issue. Regular savings and evidence of good money management are important.

antimatterx · 23-05-2020 3:48pm

timple23 wrote: »

A small bit off-topic, but as someone who always saved for something before buying it, will I be at a disadvantage when going for a mortgage as I would have no credit history?

Credit history isn't as important here as it is in the states. I ordered a credit card last year, just so I have some credit history when I go for a mortgage in a few years. I make sure to pay it off in full every month. I really don't think it will matter that much when the time comes.

Jim2007 · 23-05-2020 4:10pm

lainey_d_123 wrote: »

It makes the comparison invalid. People are feeling really bad about themselves because they can't work out why other people have saved so much more. In the vast majority of those cases, it's probably those other people have had substantial financial help, usually from parents.

People are very slow to admit their good fortune, and very quick to make out that they've been good with money. If you have a full time job and live at home, it's not even a sacrifice to put 1000+ euro away every month. You can do that and still have money for going out, holidays, etc. Try putting away 1000 euros a month when you're paying Dublin rent, bills, food and transport costs.

The truth is that a lot of people, especially under 30, are doing well to save anything at all if they have an average salary and average living costs.

People or just you???

People's circumstances are different and it does impact one's ability to save, but it is also very easy to come up with excuses as to why you can't save and why others can as you have suggested.

I don't know a single person that received a substantial inheritance of serious financial support from their parents, but I do know sever people who have build up substantial savings by hard work and frugal living.

23-05-2020 6:25pm

lainey_d_123 wrote: »

It's invalid if those people are pretending it's all down to their own hard work, which a lot of people do. Age, salary and whether you go to Starbucks or not is totally irrelevant if you've inherited the family farm or lived at home rent free for a decade on a 70k salary.

No problem with people explaining and being honest about how they saved so much.

I don’t see people pretending either way they are simply stating their age and current savings with some giving some stories etc.

There are people who find it harder to save than others but in many cases it’s by choice. You will see people say they couldn’t wait to get out the door at 18 and think they are great because they have “paid their own way”. Many could have stayed at home until their mid to late 20’s while working, paid little or no rent and saved while still enjoying life but instead they decided to move out and pay though the nose for rent etc. They then look down on those who live at home while at the same time begrudging their savings. Similar for people gifted or inheriting money for sites or assets etc.

There is no prizes or your savings aren’t worth more because you managed to save them up while renting vs living at home etc.

Obviously there are people who don’t have the choice but to move out, pay expensive rent and I’m not in anyway making light of this but there are plenty also fitting the above profile.

Regardsgreen · 23-05-2020 6:36pm

24 years old. Have €23,000 saved but still have to pay back some of the loan for my Engineering masters. Saving 1400 per month at the moment. Working from home and living with parents. I give them 400 a month and also do some shopping for them quite a bit.

Geuze · 23-05-2020 10:51pm

timple23 wrote: »

A small bit off-topic, but as someone who always saved for something before buying it, will I be at a disadvantage when going for a mortgage as I would have no credit history?

No, as long as you have a proven record of regular saving, and/or paying regular rent.

User9thousand · 23-05-2020 10:56pm

lainey_d_123 wrote: »

It makes the comparison invalid. People are feeling really bad about themselves because they can't work out why other people have saved so much more. In the vast majority of those cases, it's probably those other people have had substantial financial help, usually from parents.

People are very slow to admit their good fortune, and very quick to make out that they've been good with money. If you have a full time job and live at home, it's not even a sacrifice to put 1000+ euro away every month. You can do that and still have money for going out, holidays, etc. Try putting away 1000 euros a month when you're paying Dublin rent, bills, food and transport costs.

The truth is that a lot of people, especially under 30, are doing well to save anything at all if they have an average salary and average living costs.

Don’t have to live at home. You’d have even more saved if so. You could get paid 30k in Dublin for 4 years and share a house and still have 30k at 30.

Income would be 2k
Save 600 each month.

1400 left to spend a month.
600 in rent, 250 on food, 100 on transport, 20 on phone bill, 40 on other bills, 20 on Spotify and Netflix.

That leaves 370 in a month for hobbies.
Spend 140 on pints, 80 on a football match or something, 30 on a takeaway. Then if you are happy with that leave the balance of 170 for a holiday. If you did that for 4 months the 170 balance becomes 680 for a holiday! Cheap flights to Europe. You’d have a few holidays out of 680.

And you still have been saving 600 a month. And not going near it.

Now some will say the above example of only drinking alcohol worth 140 in a month is terrible. And one takeaway! The horror. Sure you’re not living at all. And what about the coffee from the patrol station everyday. Take that from your other 170 in the month if you want. Less money for the holiday though. But even if you spent 70 a month in coffee that still leaves 100 a month for the holiday fund. So you’re not being denied a break!

This is just a hypothetical example of a person who could rent in Dublin in a low salary. Still do stuff still go on holidays. And still have 30k at 30.

Think the people that get to 30 with no money may have car insurance or exams fees that their employer doesn’t cover. Maybe parents didn’t cover help out with university and they have loans to pay. But if they finished college debt free. Above example would be relevant to people finishing college debt free. But if they smoke. Or drink a lot. Rent a one bed apartment alone. Work minimum wage for 10 years and decided they wanted to see China, Australia, Brazil, South Africa, Vietnam, US road trip etc. with a low salary. Sure they could do that but don’t expect to have anything saved after.

But maybe the cheap holiday to Europe using the 170 saved per month for holidays is not fulfilling enough? Of course they could still do one or two of the big holiday above and spend 5k on them from their savings account. Still have 25k at 30k though assuming they were earning 30k between 26 and 30.

A lot of people just spend a lot monthly on coffees and protein bars and multiple takeaways and pints on a Thursday Friday and a Saturday. And then wonder why they can’t gave any savings. Sure the only people that have savings are those living at home or earning 60k a year! People earning less can have good savings too. Sure they can’t spend as much but doesn’t mean they just sit at home counting the money!

Say you have two 30 year olds. One has 50k at 30 And the other with 10k thinks that’s amazing. But sure the person with 50k will have that wiped soon enough buying a house or apartment. Won’t be hoarding it for the grave.they just thought more carefully in their 20’s about their near future. They still went on holidays though. Seen things and did things. Instead of thinking feck the begrudgers I’m gonna spend my money on all I want cause I might die next year.

Just applying this to the people who got a job after college with no debt and blow every cent of money on things they want and don’t think of saving. Sure why Would I do that!

How much savings do you have and what age are you?

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