# Living off savings - any advice ?



## fishfingers

Hi Money Makeover people, I would be very grateful for any advice or suggestions on what I could do in my rather unusual situation.

I am male, 45, single, homeowner (with no mortgage), no loans or debts, and have some Irish savings bonds and certificates which are now worth about 260,000 and also have a Rabo savings bank account with about 30,000 in it, and a current account with 5,000 in it. All tallied ammounts to 300,000.   I am unskilled,  currently working part time - earning 191 a week, plus extra bank holiday wages which brings it up to 11,000 per year (and at the moment living off this aprox 11,000 a year income very happily).   My original plan had been to live off the part time job income, and keep the savings bonds and certificates rolling over every few years so they would be my pension for retirement about 60.

My situation has now changed and is that my  job is coming to an end in a couple of months, and so I am going to need to figure out some way to make my 300,000 last as long as possible as I won't be entitled to any unemployment assistance or anything as I would fail the means test.  (I'm not sure if I may be able to "sign on for credits").  And at my age I have had no luck at all finding any new job either full or part time. 

So I would welcome any advice or suggestions on what I could do to "stretch" this 300,000 out or to use/invest it in a different way. My own projections are to spend 11,000 per year, increasing it by about 500 euros every year for inflation,  though this projection means all the capital would run out by about age 70 allowing for some build up of interest in the early years before the capital falls too much.  

Other factors and expenses : I don't have a car, My biggest expenses at the moment each year are home heating oil (600 euros), house insurance (500 euros), Food & drink at aprox 10 euros a day (3650 euros). Electric : (800 euros)  Cinema (300 euros), internet (300 euros), Other items : 3000 covering public transport, presents, clothes and shoes, TV licence etc. plus I'm making a provision in my projected budgets for the Household charge rising to about 1000 a year and water charges of about 500 euros from 2013/14 onwards. I previously had health insurance but am not planning on re-newing it from this year onwards.   

I'm looking at all kinds of options and would be very grateful for any suggestions or advice.  Ideally I'd like to stay in Ireland, but if neccessary I may need to try and move abroad to somewhere cheaper (I would esspecially welcome any advice or suggestions on places that might be possible to move to to live pretty cheaply off savings such as I have.  In that case I would try and let out my house here and rent somewhere cheaper in another location - maybe spain ?). 

I'd welcome any suggestions or ideas.

Thanks for any advice.


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## DrMoriarty

Welcome to AAM, fishfingers.

I don't suppose you're on the lookout for a good valet/p.a.? 

If I was in your shoes I would certainly think about (a) living abroad, and (b) diversifying that €260,000 in Irish Govt. savings bonds and certificates. I'll leave it to others to suggest what to do with it.


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## Ann1

Hi fishfingers

I think you may be entitled to claim Jobseekers Benefit if you have made PRSI contributions in your part-time job. The payment lasts for 312 days and is would be calculated from your 2010 paid contributions.

http://www.welfare.ie/EN/Schemes/JobseekerSupports/JobseekersBenefit/Pages/jb.aspx


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## The Ghoul

Fishfingers: have you browsed these websites?

http://www.mrmoneymustache.com/

http://earlyretirementextreme.com/

What you are proposing requires a lot of thought and research.


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## browtal

Hi Fishfingers,
I agree with cashier, you are far too young to think of being retired full time. What will you do to fill in the time?  
Life begins at 40. There are always opportunities to do things if only on a voluntary basis.  Training for something different, a craft or art,  playing golf, or studying something. Doing Community work. Help with the elderly - there is always a need. Older People are always in need of company for a chat.
 You have heard the saying 'use it or loose it'.
 You will find your brain going dim, your health will remain good if you remain active.
There are lots of people in your situation who will face the same challenge. Good luck, too early to retire there is always something round the corner to interest you. Good luck 
Browtal


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## The Ghoul

browtal said:


> Hi Fishfingers,
> I agree with cashier, you are far too young to think of being retired full time. What will you do to fill in the time?
> Life begins at 40. There are always opportunities to do things if only on a voluntary basis. Training for something different, a craft or art, playing golf, or studying something. Doing Community work. Help with the elderly - there is always a need. Older People are always in need of company for a chat.
> You have heard the saying 'use it or loose it'.
> You will find your brain going dim, your health will remain good if you remain active.
> There are lots of people in your situation who will face the same challenge. Good luck, too early to retire there is always something round the corner to interest you. Good luck
> Browtal


He never said anything about retiring from life just retiring from paid work. Maybe he does plan to do voluntary work or play golf. 

In many ways he is in a very good position. 300k in the bank, no debt, owns his house and doesn't have/need a car. If he can get that 300k working for him rather than him being a wage slave he could have an exceptionally happy life ahead of him doing what he wants.


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## browtal

The Goul,
I think most people would see work as a very enjoyable part of life and not a 'wage slave'.
Having to think about whether your savings would last your lifetime would, for most people, cause tress.  A wage will keep the investments topped up and give a better chance of making the capital sum adequate for his lifetime. Also we too change and our needs might demand more income.
Times change if we were to hit another financial crisis or the current one does not  improve he could be left with a very meager existence. Being out of the job market for any length of time can make it very difficult to return to it, confidence can wain quickly
.
Who would have thought that Banks and other guilt edge investments could have taken the savings of so many Older People recently with their collapse. 
If the working life of a person is not fulfilling try a change. I don't know where 'Fishfingers' would get the money for golf, it might upset his budget to much, it can be an expensive hobby, he might love it and want to play in many open competitions, and the social bit can prove expensive.
I hope he makes the right decision for his future. Browtlal


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## mtk

first well done to own your own place and have 300k stashed @45!
i think you got GOOD advice here
1) you may get unemployment benefit which is not means tested 
2) dont give up on work just yet - see how you feel and if you managed to stash 300k i am sure another job/career is not beyon your ability . BELIEVE!
3) you need to do lots of research 2 websites suggested 
4) a crisis can upset your plans....

My Advice :
You meniontion living cheaply abroad have alook at http://retirecheap.asia
which loooks at retiring to thailand (whih i would do if single and coudl stand the heat !)
you need to think as you say about voluntary contribs. re state pension so u get contrib. pension

mtk


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## fishfingers

Thanks very much for all the really useful information and advice. I appreciate your feedback and suggestions.

  I should explain - I definetly would prefer to be able to get another job (either full or part time) rather than having to rely on using up the capital.  My original plan was to only retire at 60 or later.   So this plan is in case I can't get another job here or abroad and have to try and live off the savings.

I am also thinking along the lines now of somehow investing some portion of the capital in some small business, which would in effect ''create'' a job for myself. Maybe a small hotel or guesthouse, travel agency or something like that where I could provide both capital into an already established  business and also be a staff member to generate an annual income.


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## browtal

Hi Fishfinger,
I think many employers would be lucky to have you. If you dont secure employment immediately why not consider further eduction there are lots of courses on offer to people unemployed. 
There is also the scheme whereby you work giving the benefit of your experience and claim unemployment benefit also including an extra €50 per week. This scheme can lead to employment. Also do continue to sign on for credits when you are no longer signing on for unemployment, that will keep you in benefit for your pension rights.
Good luck. Browtal


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## james j

*Best of luck*

I think you have done exceptionaly  well for yourself and I think if You use your talents and have a look at investing 50000 of your savings in creating a job for yourself and maybe another it is something I would do.,for me it would be in the fishing industry for you who knows?


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## Bronco Lane

I retired at age 50 with no mortgage or debts and a similar sum of money. I drink very little. I don't smoke. I'm not hugely interested in eating out in expensive restaurants. I have no interest in fashion. My needs are fairly basic. My wife would be the same.
We have an income of about €20k per annum.
It is now 10 years on and I have not regretted one moment of my decision. During the Tiger years we carried on as normal. Our only extravagance was when we gorged on the cheap 1c Ryanair flights that were available. We spent about €6k per annum on holidays. We also watched the value of our house soar to a huge and obscene sum of money. This gave us the confidence to think. "Well if the worst comes to the worst we can always sell, downsize or move abroad". Realistically we knew that this would not happen because we both love our home our garden and Ireland. We also like having our immediate family close.
Over the past 10 years there has been some dent in our savings. We lost about one third of our stock market investments but thankfully kept the other two thirds liquid.. The value of our house has collapsed, so any thoughts of selling up and moving abroad has gone. Thankfully we are in good health.
I had thought of investing in a few businesses over the years but never took them beyond the planning stage. Mainly because we enjoy living a very simple life without too much hassle. We grow our own veg. We subscribe to various "bargain" offers that are available in all areas and enjoy living off the spray as they say.We are always available to each other and to our immediate family.
There is the worry of property taxes, increasing utility bills, energy costs, health care, old age costs etc  Things that are outside our control. We are also aware that we do not have huge sums of money to give to our children for weddings etc. We help them out a little and they will inherit something.
Over the years we both did various courses in college/adult education. I have thoroughy enjoyed the past 10 years. It gave me the opportunity to see and do things that I would not have done if I was on a 9 to 5 job. For the next 10 years I want more of the same. Planning to walk the Camino to Santiago is a thought in the head at the moment. Maybe not.
This has been good for us. I could not have done it without the backing of savings and being debt free and having a sort of financial plan.


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## irishmoss

Whatever you decide make sure you like what area you go into. You have the capital so choose wisely. How about looking at a franchise?

Talk to your local County Enterprise Board, they always run courses on setting up your own business

Personally I think 45 is far too young to start eating into your savings.


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## Knuttell

fishfingers said:


> Other factors and expenses : I don't have a car, My biggest expenses at the moment each year are home heating oil (600 euros), house insurance (500 euros), Food & drink at aprox 10 euros a day (3650 euros). Electric : (800 euros)  Cinema (300 euros), internet (300 euros), Other items : 3000 covering public transport, presents, clothes and shoes, TV licence etc. plus I'm making a provision in my projected budgets for the Household charge rising to about 1000 a year and water charges of about 500 euros from 2013/14 onwards. I previously had health insurance but am not planning on re-newing it from this year onwards.


 
 Have yon considered renting out a few of your rooms in the short term,this would go a long way to providing you with a few quid and sharing the bills also do you buy yearly travel pass that covers bus dart luas etc,I would imagine there would be a considerable saving there (if you live in Dublin)

45 is not old by stretch, don't write yourself off just yet,have you considered investing in education at degree level,it could turn out to be the best investment you will ever make.


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## mtk

Bronco Lane said:


> I retired at age 50 with no mortgage or debts and a similar sum of money. I drink very little. I don't smoke. I'm not hugely interested in eating out in expensive restaurants. I have no interest in fashion. My needs are fairly basic. My wife would be the same.
> We have an income of about €20k per annum.
> It is now 10 years on and I have not regretted one moment of my decision. During the Tiger years we carried on as normal. Our only extravagance was when we gorged on the cheap 1c Ryanair flights that were available. We spent about €6k per annum on holidays. We also watched the value of our house soar to a huge and obscene sum of money. This gave us the confidence to think. "Well if the worst comes to the worst we can always sell, downsize or move abroad". Realistically we knew that this would not happen because we both love our home our garden and Ireland. We also like having our immediate family close.
> Over the past 10 years there has been some dent in our savings. We lost about one third of our stock market investments but thankfully kept the other two thirds liquid.. The value of our house has collapsed, so any thoughts of selling up and moving abroad has gone. Thankfully we are in good health.
> I had thought of investing in a few businesses over the years but never took them beyond the planning stage. Mainly because we enjoy living a very simple life without too much hassle. We grow our own veg. We subscribe to various "bargain" offers that are available in all areas and enjoy living off the spray as they say.We are always available to each other and to our immediate family.
> There is the worry of property taxes, increasing utility bills, energy costs, health care, old age costs etc Things that are outside our control. We are also aware that we do not have huge sums of money to give to our children for weddings etc. We help them out a little and they will inherit something.
> Over the years we both did various courses in college/adult education. I have thoroughy enjoyed the past 10 years. It gave me the opportunity to see and do things that I would not have done if I was on a 9 to 5 job. For the next 10 years I want more of the same. Planning to walk the Camino to Santiago is a thought in the head at the moment. Maybe not.
> This has been good for us. I could not have done it without the backing of savings and being debt free and having a sort of financial plan.


 
great post combining financail education with a touch of romance. well done
May i ask is 20k from savings or from a pension i.e are you using up your savings day to day ?


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## Bronco Lane

€20k is from a mix of dividends plus interest plus small pension (very small). I can actually save money from this €20k income. About two years ago I had to replace all white goods in the house plus a T.V. I also needed to purchase a new carpet plus sofa for a room in the house. I waited for sales and special offers and also did some bargaining and got good value in the end. All this came out of my savings. We own two cars that are getting older and older but the truth of the matter is is that we only really need the one. When one or other claps out it will be disposed of and not renewed.
We are not travelling overseas as much but I just managed to book two return flights with Ryanair for €80 and got a hotel for 4 nights full board for €187 all in for two people. Not a bad price for 4 nights away in Spain to include flights for two people. If you look hard enough you will get good value breaks away in nice places.
With Daily Deals available through Boards, Living and Social, Pigsback and GrabOne you can also avail of one or two nights away in nice hotels in Ireland for two people for less than €60. I am not ashamed to hand in coupons in the supermarket and also have a rummage through their "reduced to sell" items.
It's kind of fun looking out for the bargains out there. I don't consider myself a scabby so and so for doing this. I am happy to splurge as needs be.
There are lots of people living off the spray. If you can work for six months of the year and enjoy the other six months at leisure seems a good idea to me. I remember seeing a programme on T.V. where this guy worked for 6 months then went to Goa for the other 6 months and lived pretty well. Even working a 4 day week with 3 days off...


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## mtk

Bronco Lane said:


> €20k is from a mix of dividends plus interest plus small pension (very small). I can actually save money from this €20k income. About two years ago I had to replace all white goods in the house plus a T.V. I also needed to purchase a new carpet plus sofa for a room in the house. I waited for sales and special offers and also did some bargaining and got good value in the end. All this came out of my savings. We own two cars that are getting older and older but the truth of the matter is is that we only really need the one. When one or other claps out it will be disposed of and not renewed.
> We are not travelling overseas as much but I just managed to book two return flights with Ryanair for €80 and got a hotel for 4 nights full board for €187 all in for two people. Not a bad price for 4 nights away in Spain to include flights for two people. If you look hard enough you will get good value breaks away in nice places.
> With Daily Deals available through Boards, Living and Social, Pigsback and GrabOne you can also avail of one or two nights away in nice hotels in Ireland for two people for less than €60. I am not ashamed to hand in coupons in the supermarket and also have a rummage through their "reduced to sell" items.
> It's kind of fun looking out for the bargains out there. I don't consider myself a scabby so and so for doing this. I am happy to splurge as needs be.
> There are lots of people living off the spray. If you can work for six months of the year and enjoy the other six months at leisure seems a good idea to me. I remember seeing a programme on T.V. where this guy worked for 6 months then went to Goa for the other 6 months and lived pretty well. Even working a 4 day week with 3 days off...


 
thank you for your insights 
What does off the spray mean as i never heard this expression and google doesn't recognise it either


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## Bronco Lane

Many years ago I heard someone use the expression Living off the Splash or Living off the Spray. It relates to those creatures that live on the shoreline, neither on land or on sea and feed off the various tides, sea sprays etc that come their way. 
I always thought that it was a nice expression and a nice way to live if you could apply it to modern life using modern conveniences and methods. 
The Hunter-Gatherer modern style....


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## serotoninsid

Bronco Lane said:


> Many years ago I heard someone use the expression Living off the Splash or Living off the Spray....I always thought that it was a nice expression and a nice way to live if you could apply it to modern life using modern conveniences and methods.


Your right - it is a good turn of phrase.  I must admit that I hadn't heard of it either and like mtk, I assumed google would provide examples but no dice....so maybe whomever you heard it from coined the phrase.

Been reading your posts on this thread with interest and admire the position you have managed to get yourself into - together with the simplicity and lack of extravagance..


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## The Ghoul

I hadn't hear that expression either but it is a good one. I think MrMoneyMustache would like it too


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## Greta

Consider diversifying your savings and investments and putting some money into gold. Otherwise any serious bout of inflation may wipe them out.

Also I think it's important for you to educate yourself financially, I don't mean a formal training, but being able to take care of your money. We live in very uncertain times.

I agree with other posters - you are too young to give up on working life, as you are single and able to move anywhere basically where you can find a job, surely there must be something for you somewhere in the world!


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## Odea

The old man on the beach every day messing about in his boat. He is approached by a guy in a suit who asks him why he just sits around all day especially since he owns all the land facing on to the beach. He could sell the land, develop the sites and make a fortune. The old man asks what he would do then. The suit says, you could buy yourself a boat and just mess about all day.


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## SoylentGreen

Fishfingers and Bronco, how are you both getting along?


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## mtk

i too would like to know what happend to fishfingers.....
Found this thread interesting as may end up living off savings too soon.


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## dub_nerd

Ditto. Am the same age as OP and living off savings.


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## fishfingers

mtk said:


> i too would like to know what happend to fishfingers.....
> Found this thread interesting as may end up living off savings too soon.


 
Hi - I was able to get a couple of temporary jobs after my job ended. Managed to get myself fully funded for 2014 (9k) Still trying to work out some way to turn what assets I have (the savings bonds and certificates) into what I want : a small but increasing income that I can feel safe and secure knowing will not run out. 

At the moment I'm having to assume 30 years @ 10K a year, but that does mean I have to live pretty frugally.

Things generally are going well though - I feel happier knowing I have next year fully funded in advance, and have started working on funding 2015. 

Dropped health insurance in the end. I did think a lot about moving abroad, but in the end the costs of the move and leaving friends behind made me decide against it.

I was able to get jobseekers benefit during the (luckily short) periods I was out of work in between jobs.


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## SoylentGreen

I have to say that both myself and my wife can live a comfortable life on about €13k per annum. The recent property tax has added a further €1800 on top of this and further increases in utility bills and health costs has added a further €1000 on top of this again. So I reckon we need about €16k per annum to have a comfortable enough lifestyle. Neither of us smoke and we drink the occasional bottle of wine picked up on a discount but not pushed either way.


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## STEINER

SoylentGreen said:


> I have to say that both myself and my wife can live a comfortable life on about €13k per annum. The recent property tax has added a further €1800 on top of this and further increases in utility bills and health costs has added a further €1000 on top of this again. So I reckon we need about €16k per annum to have a comfortable enough lifestyle. Neither of us smoke and we drink the occasional bottle of wine picked up on a discount but not pushed either way.



Respect to you SoylentGreen!

Can you itemise your €13k/€16k annual comfortable life spend for us?


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## Daddy

I would be interested in seeing this to if you can post it please.


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## mtk

Sounds like good bugetting . how do you do that ?


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## clueless

I'd love to know how you do it as well. I'd also like to know how the original poster does it. Also if the original poster ran out of savings but still had the house would he be able to sign on? Or is that means tested?


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## Bronte

fishfingers said:


> Hi - I was able to get a couple of temporary jobs after my job ended. Managed to get myself fully funded for 2014 (9k) Still trying to work out some way to turn what assets I have (the savings bonds and certificates) into what I want : a small but increasing income that I can feel safe and secure knowing will not run out.
> 
> At the moment I'm having to assume 30 years @ 10K a year, but that does mean I have to live pretty frugally.
> 
> Things generally are going well though - I feel happier knowing I have next year fully funded in advance, and have started working on funding 2015.
> 
> Dropped health insurance in the end. I did think a lot about moving abroad, but in the end the costs of the move and leaving friends behind made me decide against it.
> 
> I was able to get jobseekers benefit during the (luckily short) periods I was out of work in between jobs.



Fascinating thread.  If you're fully funded in 2014 that makes you 47 years of age.  Your 300K / 10 give you the 30 years.  47 + 30 = 77 years of age.  But if you have a state pension at 66 that would be another income.  I think it's about 11K a year or thereabouts.  Plus other allowances, medical card etc I assume.  So you can actually afford to use more of your 300K from 2014 to retirement age.  I also assume that this state pension is the contributory one, so it means your assets (shares etc) are not taken into account.  Your home is not taken into account even for the means tested pension.


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## Fella

Thanks for bumping it very interesting read , would love to be in a position to stop working at 40 , may not do it but would like to have the option to even work part time or very few hours. What's amazing is the amount of money you need to plan that far ahead. Respect to anyone that has achieved it.


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## trasneoir

Fella said:


> Thanks for bumping it very interesting read , would love to be in a position to stop working at 40 , may not do it but would like to have the option to even work part time or very few hours. What's amazing is the amount of money you need to plan that far ahead. Respect to anyone that has achieved it.


It seems like fishfingers' biggest assets are the skills and attitude to live comfortably on small money. Hats off, I'm nowhere near being comfortable on 12k (yet).

mrmoneymustache.com reckons that in the US, invested in property and index funds, one can withdraw 4% per year and have the investment's value keep pace with inflation indefinitely. 

The "security blanket" is that you can accumulate lots of useful, money saving, and (if need be) profitable skills in your new-found free time. I dare say you could happily spend a couple of months of the summer roofing a house, maintaining a golf course, driving a baler, or building a website (from the garden) if your portfolio had a bad year.


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## mtk

yes struggling with this myself.Main general issues in my view are:

1 do i  have enough not to work again ? probably
2 Will state pension contributory still be there in 17 years? who knows
3 Do i want to "work" ? not sure just never really liked working in office ( maybe it was me)
4 Am I prepared to live frugally ? not sure can exist below 48k a year net although never do anything extravagant in my view . (Cannot figure out Solyent green on 18k but am impressed)
5 how to spend time ? Big question not sure

any thoughts?


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## SoylentGreen

I'm still here and still living off a small income. I also managed 4 good holidays this year. I still shop in Aldi and Lidl or whoever has the best deals. Paying about €1800 on health insurance and €1500 in property tax. Cook all our own food from scratch. Grow our own veg. Neither of us smoke and we are light drinkers. We have basic UPC package and Vodafone internet. Run two cars. Both over 10 years old with very low mileage. Not interested in designer labels, bling etc. Pay €9 for my haircut. All bills paid to date. We may change one of our cars soon but the trade in offered is so bad I would rather keep it until it falls apart. Then just use the one car.


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## moneybox

mtk said:


> 4 Am I prepared to live frugally ? not sure can exist below 48k a year net although never do anything extravagant in my view . (Cannot figure out Solyent green on 18k but am impressed)


 
48k a year net is circa 1000k a week, short on having caviar and wine every night for dinner, how on earth can you say you cannot exist on less.  Millions of retirees survice adequately on the state pension of approx €220 a week. Maybe you have a lot of overheads?


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## dub_nerd

That certainly sounds like a lot. Maybe several dependants involved? I've budgeted €35k net for myself the last couple of years, but that includes €5k holidays, €4k charities, €4k house maintenance, €3k health insurance, €2k education and hobbies, €1k motoring. Bills and food account for most of the rest. Can't think of anything else I _could_ spend anything on.


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## moneybox

dub_nerd said:


> €4k charities,


 
that is alot of funding towards charity donation, fair duce to you


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## dub_nerd

I don't think it's that much at all, given I'm not stuck for anything myself. I was donating a lot more when I was working and could leverage tax deductions for charity as well. Hoping to donate most of my time to charity in the near future as an alternative.


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## Grizzly

There are lots of people out there who would never consider negotiating a price reduction on anything. They won't shop around, look for bargains, discount codes or even be aware that there are considerable savings to be made on all sorts of products and services.
I have a sibling who is one of these. Pays each bill that is presented without question. Buys in the most expensive places, would put €10 in a parking meter when around the corner is free parking. Pays top price to every tradesman who offers a quote because he is a nice man. Purchases flights at the last minute and wouldn't even be aware to keep an eye out for lower mid week or special offer prices. Her husband is the same. Neither of them would be seen dead in an Aldi or Lidl. Neither of them would have a lot of money and seem totally unaware that other people make considerable savings on lots of things. My sister boasted of spending €11k to have a small portion of her front garden re-designed. This consisted of a circular section in her lawn with some gravel stones in the middle plus a small wooden garden arch placed in the middle. It was a total rip off. She never even realised that she was ripped off.
I would actually find it hard to spend €1000 per week or even half that amount.


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## mtk

48k includes 4k school fees and trips, health insurance 3k , car costs 2k ( ignoring depreciation which would add another 2/3 k), electricity /gas 2k, 3 cheapish holidays 4.5 k( probably estimate a bit low) tv/internet/phone/mobiles(3)  1.6k no debts /rent /mortgage.
2 dependents
I am very money wise imho. Eat well. no rubbish . no processed foods


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## The Ghoul

Some big variations in spending estimates. I am single with no children and no rent or mortgage. I don't have much interest in holidays and in general my interests and hobbies are not expensive.  I am reasonably good when it comes to DIY car and home maintenance. I have a home gym with free weights which I make good use of and which will last me a lifetime. I don't drink or smoke. My target spending for retirement would be 10 to 15k per annum (in 2015 euros) and I think that is generous.

In my view, cutting back on spending if possible (easy for me to say with no mortgage or rent) is key to this game. If you don't spend much you don't need to earn much. If you are subject to progressive taxation, the less you earn, the greater a percentage of your gross that you are left with after tax. In terms of investing, the less income you need, the less capital you need to generate that income. You can also invest conservatively rather than having to chase returns with risky investments.

My career progression in the public service has hit a brick wall and I am increasingly frustrated with the chaos, unprofessionalism, bad customer service and incompetent management that I witness every day in my workplace. I am regularly thankful that I have savings and an ability to live relatively frugally as I have potential options to retire early, work part time, take a lower paid job and so on - options that the average wage slave doesn't have.


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## moneybox

[QUOTE="
 I am regularly thankful that I have savings and an ability to live relatively frugally as I have potential options to retire early, work part time, take a lower paid job and so on - options that the average wage slave doesn't have.[/QUOTE]

Great place to be Ghoul, many would like to be where you are. Enjoy your life -)


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## dub_nerd

Horny Squirrel said:


> I got into an argument at the counter. She kept referring to schedule D as "unearned income". I corrected her, saying I earned the money in the first place, its tax-paid. I can do what I want with it, I am an adult. How can it be unearned, because I earned it.


Unearned income is generally any income that is not from paid employment. This definition is fairly widely used -- you'll find it in Investopedia and Wikipedia as well as in Revenue documents. If you have income from investments, deposits, rentals etc. it is "unearned" in that sense -- even if the money you put into the investment is income from employment that was taxed, the _proceeds_ are not. Getting into an argument with Revenue about it is probably futile.


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## Meath Lady

If all your income was from "unearned income " as described above, does one pay a social welfare contribution on it and would this contribution count towards a contributory old age pension,


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## dub_nerd

Meath Lady said:


> If all your income was from "unearned income " as described above, does one pay a social welfare contribution on it and would this contribution count towards a contributory old age pension,



Anyone who is a "[broken link removed]" has to pay 4% Class K PRSI on unearned income. It doesn't count toward a pension or any other welfare entitlement.

https://www.welfare.ie/en/Pages/Inf...ion-of-PRSI-Liability-to-Unearned-Income.aspx


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