# where did you get your money



## pAnTs (22 Oct 2010)

HI there Im reading through the various posts on AAM and Im thinking wowzers where did these people get their money from, I mean people are bandying around figures of 3 and 400,000 savings!!! Im a hard little saver but I know I will never have this much surplus. Without getting too personal would say how you earned most of your money, like is it shares, property in the boom, inheritance, hard work from savings etc...


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## huskerdu (22 Oct 2010)

I would guess that a lot of the people asking advice here on investing 300K, have sold a house and are not buying at  the moment or have come into an inheritence. My reason for thinking this, is that if you have amassed 300K from years of  investments, then you probably already have a clear investment strategy and would not need to ask for advice on a public forum.


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## pAnTs (22 Oct 2010)

huskerdu said:


> I would guess that a lot of the people asking advice here on investing 300K, have sold a house and are not buying at  the moment or have come into an inheritence. My reason for thinking this, is that if you have amassed 300K from years of  investments, then you probably already have a clear investment strategy and would not need to ask for advice on a public forum.




aha good thinking! I agree, it must have been inheritance or something. I would find it fascinating to hear the person who started with nothing and built a little mini empire from investing in shares or something!! would love to get some hints and tips


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## Protocol (26 Oct 2010)

Two people I know:


Person A = mid 30s, single, no car or mortgage = 185k in savings

65-70k = redundancy
75k  = own savings over last 10 years
40k = small inheritance, gifts from parents


Person B = mid 60s, retired = 200-250k in savings

Pension lump-sum = 100-110k
Previous savings, over decades = 100k+


*NB: I know plenty of others with nowhere near these levels of savings!!*


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## Ancutza (26 Oct 2010)

Now you know me too!!!


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## DB74 (26 Oct 2010)

Protocol said:


> Two people I know:
> 
> 
> Person A = mid 30s, single, no car or mortgage = 185k in savings
> ...


 
Where's their patriotism - get them to start spending!


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## Sue Ellen (26 Oct 2010)

Well, don't want to make anyone jealous but I was over in Donnybrook last week and ............... I didn't buy a ticket


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## Protocol (26 Oct 2010)

For some people, they can't help but save.

Loads of pensioners save out of the 230 pw State pension.

(BTW, I am not using this as a justification for cutting the State pension)


The people I know with 200k saved can't spend their income, never mind their savings.

Retired people on 800-1200 pw simple can't spend those incomes.

No mortgage, children reared, simple lifestyles, etc.

(Their children would, if they could get their hands on them!!!)


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## Purple (26 Oct 2010)

My father in law still saved a large proportion of his pension. He says he wants to leave it to his grandchildren. I keep telling him to spend it as none of them really need it but...


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## DerKaiser (26 Oct 2010)

I'd say there's a lot of people with big savings _and_ big mortgages.  Given that it's very possible to get better interest on deposits than you are paying in mortgage interest it can make sense not to pay down the mortgage.  Another reason is 100% mortgages so you didn't have to use all your savings to buy.  This wouldn't have happened in the past


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## Marietta (26 Oct 2010)

DerKaiser said:


> Another reason is 100% mortgages so you didn't have to use all your savings to buy.


 

Somehow I doubt very much that people who got 100% mortgages had any savings at all.


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## DerKaiser (26 Oct 2010)

Marietta said:


> Somehow I doubt very much that people who got 100% mortgages had any savings at all.



There are plenty of people in negative equity who have a decent wage and are choosing to save rather than pay down their mortgage.  I'm sure many people who had savings chose not to use them all up on a deposit when buying a house.


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## fizzelina (27 Oct 2010)

DerKaiser said:


> I'm sure many people who had savings chose not to use them all up on a deposit when buying a house.


 
But the money borrowed at interest rates over a 25 year mortgage is expensive, so I think people would use the savings as a deposit to save paying 25 years of interest on that amount. Anyone I know who got 100% mortgage had no savings at all. They were young and eager to get buying rather than wait and save.


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## DerKaiser (27 Oct 2010)

fizzelina said:


> Anyone I know who got 100% mortgage had no savings at all. They were young and eager to get buying rather than wait and save.


It's more a function of age, younger people tend to have less savings anyway so people in their 20s with mortgages are unlikely to have much saved but older people with mortgages on investment properties are likely to have savings also


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## pAnTs (27 Oct 2010)

Protocol said:


> Two people I know:
> 
> 
> Person A = mid 30s, single, no car or mortgage = 185k in savings
> ...



OMG!!  Well that is impressive, Person A is my idol! I mean minus the gifts and minus the redundancy the 75k saved over 10 years is unreal!! HOW  Must be paid a fortune and spend absolutely nothing! I suppose its 7.5k a year is €650 a month or €144 a week, I could do it for a bit but not sure about every week for 10 years!! as I said impressive.


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## Protocol (28 Oct 2010)

Bear in mind that person A does not own a car. A car costs a lot - maybe up to 100 pw???

No mortgage either, pays rent in Dublin, 300-500 pm over the 10 years.

Wages = not a fortune, maybe 40k-50k, maybe some better years.

Spends plenty - many holidays, USA several times, goes out a lot.


If person B earns 3000pm net and pays 500 rent, could they not save at least 1000 pm and live on 1500pm??

I think 1000pm savings is easily achievable???


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## Protocol (28 Oct 2010)

pAnTs said:


> I suppose its 7.5k a year is €650 a month or €144 a week, I could do it for a bit but not sure about every week for 10 years!! as I said impressive.


 

I don't think saving 650 pm is a lot.

Take another person, let's call them "C".

55-60k gross income, 3000 net per month after tax/levies/pension.

Mortgage (not huge), car, 3-4 hols per year, saves 600 pm, but could probably save more.


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## pAnTs (28 Oct 2010)

Aha well if you have 3000 per month I can see how it's feesable if u don't like shopping etc. I used to be able to save but I can't save a cent now after all the cuts etc. More due in the next budget so Im not sure how my finances are going to be. I've lost 400 per month approx already with the existing cuts and levies etc so for sure I won't be able to save


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