# Advice required on current financial position



## Voodoo (23 Aug 2007)

Age: 31
Spouse’s/Partner's age: 31

Annual gross income from employment or profession: €67,500 & possible commissin of same 
Annual gross income spouse: - Currently minding house & children

Type of employment: IT Sales

Expenditure pattern: We break even pretty much each month after some savings
Rough estimate of value of home: €270,000
Mortgage on home: €160,000
Mortgage provider: IIB
Type of mortgage: Tracker

Other borrowings – car loans - Balance: €6000, CU: €1200

Do you pay off your full credit card balance each month? No
If not, what is the balance on your credit card? €3,500

Savings and investments: not much currently. Couple of grand in CU
Also save €100 per month each for the kids in CU

Do you have a pension scheme? yes with AVCs on top

Do you own any investment or other property? no

Ages of children: both 3

Life insurance: yes


*What specific question do you have or what issues are of concern to you? *

I would like to try and get my finances in order so that I can start to save money each month and possibly look at other investment options. I know I need to clear CC and car loans fast. I have share options with my company which at the moment will only net me about 5k but this could possibly wipe my CU and CC loans. Need to start saving more for rainy days etc.

Worth pointing out that we have a good life - at least 2 foreign hols per year with family and myself and wife go away abroad for a weekend in March also so not scrimping by any means.


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## ClubMan (23 Aug 2007)

*Re: Advise required on current financial position*

Why are you saving when you have outstanding debts?


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## nelly (23 Aug 2007)

two things i think you should do is start paying the highest intrest bill/loan first CC in earnest and your CU loan will most likely be at a high % also so attack that one too! 
secondly start using cash only when out shopping for everything and you will notice what you spend on and what you can avoid spending on in the future. Ask the do i need it?, do i want it?, can i live without it? when shopping

when you do these both and realise how much money you have in surplus then set up a direct debit to a high % savings account (halifax or rabo for example) and then its gone before you have time to spend it in your head. Initially you will notice the dip but you will learn to live with it. 

Also its an idea to change your habits - instead of shopping on saturday go to the library and then to the park with the children for example.


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## Voodoo (23 Aug 2007)

Also, meant to point out that I know Credit card is ridiculous and I have taken the 1st steps to sorting this. I have applied for a Halifax CC and will be transferring the balance across to avail of the 6months no interest... with the intention of paying off the bulk of this over the 6months...


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## TripleA (23 Aug 2007)

Nelly and Clubman have both hit the nail on the head for me.

You can't start saving until your CC debt and CU loan debt is clear. Interest earned on savings will be less than interest incurred on these. Clear them!!

And as Nelly suggests keep a track of what you are spending your money on. A simple excel sheet should monitor your income and spending habits. After a few months, on reflection, you will be able to pinpoint area's you can save or cut down on. 

There is no magic wand i'm afraid......


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## Riddler (23 Aug 2007)

(1) Watch "Show me the Money" and learn from others in similar situations 
&
(2) Read the posts above

Above all stop borrowing from your future earnings ...you'll need them shortly.


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## Brendan Burgess (24 Aug 2007)

As Triple A says, there is no magic wand. If your expenditure exceeds your income, you can't save. 

Your primary problem would seem that you are oversaving and you need to address that. 

Rearranging your finances will only make a small difference and as has been pointed out, you should use your savings to pay off your credit card debt immediately. 

Brendan


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