# opinion on our finances?



## falabo (22 Jan 2009)

Age: 31
Spouse’s/Partner's age: 30

Annual gross income from employment or profession: 30,000
Annual gross income of spouse: 33,000

Type of employmentermanent

In general are you spending more than you earn or are you saving? Never

Mortgage 1150 month including mortgage protection.
borrowed 265,000 on a 100% mortgage July2007
18 months left fixed rate 4.99%. we are in negative equaty as balance on the loan is 260,000 and property now worth 200,000

Saving: 300-800 between us

Car 1 (2002): 180 per month, 20 months remaining
Car 2 (late 2003): paid off

Credit Union: none

Do you pay off your full credit card balance each month? No
If not, what is the balance on your credit card? 850

Savings: 41,000 between us

Do you have a pension scheme? yes. both 5% of our wage goes into it

Do you own any investment or other property? no

Ages of children: none, will sadly never have any.

With the current economic climat we dont feel very confident about our future. especioally as we are in negative equaty, but I suppose we all are!
We never spend more than we earn except one or twice year when we treat ourselves to a great holiday.

are we broke? average joe?
Thanks for your opinion guys....


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## PaddyW (22 Jan 2009)

With 41,000 in savings, you're far from broke! If you plan on staying in your property long term, then forget the negative equity and don't let that come into your mind. Pay off the balance on that credit card too, it may be pretty small, but don't get caught with extra interest on it! Other than that, you seem to be doing pretty ok.
Also, have you included TRS into that mortgage payment?


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## bacchus (22 Jan 2009)

falabo said:


> we are in negative equity



This is on paper, and is irrelevant unless you intend to sale today. As long as you can repay mortgage, you have nothing to worry. Relax and enjoy life.


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## PaddyW (22 Jan 2009)

Bacchus, an early riser like myself!


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## Pope John 11 (22 Jan 2009)

falabo said:


> If not, what is the balance on your credit card? 850
> Savings: 41,000 between us


 
Why don't you pay off your credit card....I find its best if you book flights,hotels etc through your credit card....I use the rule that I will pay it off in one week.

Crazy not to pay off €850 on your CC, with €41,000 in savings

By the way are you getting a high interest rate with your savings???


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## falabo (22 Jan 2009)

I know idelally I should pay off the credit card but most of the money is locked into a savings account with good return and I can't touch or I will loose all the interest accumulated you're talking about thousands but next time I get paid I am clearing it instead of saving. will keep the credit card thoughm couldnt do without it for buying stuff online and flights and when while abroad.

I am getting 4.5% net (not DIRT)


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## PaddyW (23 Jan 2009)

It's ok to use the credit card, but just remember to pay it off before you get hit with interest on it.


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## Mpsox (23 Jan 2009)

With €41k in savings you are in a decent position and to be able to add 300-800 to that a month given the salary you are on, is excellent. If you average it out at €500 per month saved, it means by the end of next year, you'll have your car loan paid off and including interest the best part of €55k in the bank with the possibility of renegotiating your mortgate to a lower rate (assuming rates don't rise). You've far less to worry about then a lot of other people as per other posts on here


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## Padraigb (23 Jan 2009)

As a general rule, if you have the capacity to save and have already built up savings, then you should avoid borrowing where possible -- particularly with a CC or on a car loan unless you get interest-free deals. Even when an interest-free deal is offered to you on a car, it is worth asking if there is a discount for cash; it might be better to go that way.

The general rule might not apply if, as you have suggested, your savings are locked in. It is generally better not to lock in *all* your savings.

I agree with bacchus about negative equity: it doesn't matter unless you are thinking of selling.


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## Mr DT (23 Jan 2009)

You are in a good position. 
Stop worry and get on with your life. Life's too short.

There are SO MANY people in much much worse financial positions than you, so head up shoulders out and move on.

(I agree that negative equity is only paper money. BUT it has ALOT of influence on comsumer confidence. Having paper money made you feel wealth even if in reality you weren't.

Some people financed thier lifestyle through realising equity - can't do that now. Most people paid for thier deposit and stamp duty trading up out of equity- Cant do that now. The what "happens if" discussions all ended up with "it'll be grand, we always have the equity in the house to fall back on"- Can't do that now. And so on and so on)


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