# Financial Advice Please



## 0141607 (22 Feb 2008)

Age: 24

Gross Income: 25000

Type of Employment: Civil Servant

Expenditure pattern: In general are you spending more than you earn or are you saving: I am not saving anything and I am probably spending a bit more per week than I am earning and it is all bulding up unfortunately.

Rough estimate of value of home: I am not a home owner. I am renting in Dublin and paying €430 per month.

Borrowings: 
€2500 personal loan with PTSB (€1,900 remaining - repayments of €221 per month)
€1000 overdraft with PTSB (currently fully overdrawn)

Do you pay off your full credit card balance each month: I always make sure I pay the minimum payment and generally try to pay €100 per week off it if I can. The balance at the moment is about €850.

Savings and investments: I currently have no savings

Do you have a pension scheme?: Yes but it is the basic Civil Service pension scheme and I have only been here for 2 years now so it's nothing big by any means

Do you own any investment or other property?: No

Children: No

Monthly outgoings: 
Rent: €430pm
Loan Repayments: €221pm
Credit Card Repayments: €400pm
I generally am left with between €150-€180 a week after all these come out of my wages and I generally spend it all.

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

I know that my debt here is a LOT smaller than a lot of people on here but at the same time it is depressing me. I can't ever afford to do things because I have so many repayments to make. I know that if I really knuckle down and get on top of things I can clear my credit card and clear the overdraft and then cancel the overdraft realistically within 3 months. The personal loan doesn't bother me as much because that will be cleared in December. I can handle that but it's just the other two. When I am clear of these can peopl advise me of where I should save? I know most banks are the same but I would like to put it somewhere where it will be hard to get at. I have a credit union account back home in Limerick but I only go home about once a month so I would only be tempted to spend some of the savings if I can put it directly in every week. I know people will probably think I am complaining over nothing as it is such a small amount of money compared to most people but I need really to learn how to manage my money and I would appreciate any help.


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## moondance (22 Feb 2008)

Here's my advice for what it's worth!

Firstly could you find cheaper accommodation? Just a thought.

Maybe get a part time job in a bar or something at weekends until your debts are cleared - this would also help you cut down a bit on socialising if that is something you spend a lot of money on!

Then, once your debts are cleared, set up a standing order from your current account for the day you are paid each month into a savings account. It doesn't matter which one but maybe the AIB 7 day notice one might be a good idea as you won't be able to withdraw money any time you like.

Could you look for a promotion in your job that would earn you more money? Or look at doing some further education that could lead to promotion.


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## 0141607 (22 Feb 2008)

moondance said:


> Firstly could you find cheaper accommodation? Just a thought.


 
Firstly thanks for the advice. At the moment this is not an option as myself and my girlfriend are currently looking at moving in together and if anything my rent will increase.



moondance said:


> Maybe get a part time job in a bar or something at weekends until your debts are cleared - this would also help you cut down a bit on socialising if that is something you spend a lot of money on!


 
To be honest I don't really do much socialising. I have only been out once this year so I don't even know where my money is going every week. I have been thinking about a weekend job as well.



moondance said:


> Then, once your debts are cleared, set up a standing order from your current account for the day you are paid each month into a savings account.


 
I get paid weekly so I can't set it up like this unfortunately. I have already asked the bank but they said they can only do it on a certain date and not a day so I can't set up the standing order. I think I may set up a Civil Service Credit Union account as it will come directly out of my wages every week before it even goes into my bank account.



moondance said:


> Could you look for a promotion in your job that would earn you more money? Or look at doing some further education that could lead to promotion.


 
I have actually just applied for a position a grade above what I am currently at so hopefully I will get that as my gross annual income would jump by €6k.


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## moondance (22 Feb 2008)

I have a standing order going from my current a/c to my standard savings a/c every Friday (as I get paid Fridays).


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## 0141607 (22 Feb 2008)

moondance said:


> I have a standing order going from my current a/c to my standard savings a/c every Friday (as I get paid Fridays).


 
I must look into that. Thanks for the info!


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## bugler (22 Feb 2008)

Getting the CC debt cleared will be a big help. If you're really struggling then maybe reduce the amount your repaying to it?

I lived perfectly comfortably on 24k pa last year/year before, that included holidays, plenty of socialising etc. And my rent was 550 pcm. I had loan repayments during part of this time (not as much as yours). 

I think you just need to work out what you're spending the money on. 

Your rent is quite good for Dublin (assuming it's a decent place and you're happy there). 

I'd just be concerned about the credit card debt. How did you rack it up? Will you do it again?


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## Gus2008 (22 Feb 2008)

Focus on getting rid of the credit card debt, and then get rid of the credit card. More hassle than they are worth!!

A few friends of mine have found themselves in similar situations, and found working in bars at weekends was a good solution as it combined socialising with extra money. 

The Civil Service CU is a good place to start saving. Good luck!


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## Welfarite (22 Feb 2008)

You should open a CSCU account and start putting money away that way. This union allows you to borrow up to five times the amount of shares adn it is deducted from your salary before you get it. Clear your credit card ...at the current rate that will be in less that three months.


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## 0141607 (22 Feb 2008)

bugler said:


> Getting the CC debt cleared will be a big help. If you're really struggling then maybe reduce the amount your repaying to it?
> 
> I lived perfectly comfortably on 24k pa last year/year before, that included holidays, plenty of socialising etc. And my rent was 550 pcm. I had loan repayments during part of this time (not as much as yours).
> 
> ...


 
To be honest I have been stupid when it comes to the credit card. I have been buying a few things here and there thinking it will be ok but it has all just added up. I know I should be able to live within my means to be totally honest. To be honest I have said time and time again that I won't do it again and I have but this time I really do mean it. I need to start to sort myself out. The limit on the card is €1300 but I will be reducing this to about €500 at least when I get a bit more of it cleared. I would get rid of it completely but for booking holidays it is very handy to have. 

My rent is good for Dublin but the place is old and not really nice to be honest but it is really handy for work etc...Having said that I was meant to move out last year and had about 30 people around to see the room and only 1 of them didn't want it so maybe I'm not giving it the credit it deserves. As I said earlier I will be moving out with the girlfriend in the next few weeks and I'm being realistic in saying that my rent will only increase but I wouldn't mind this if I was debt free.


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## Welfarite (22 Feb 2008)

If you are moving out will there be a deposit to get back? will you need it to get another place or could you pay it off your CC debt?


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## 0141607 (22 Feb 2008)

Welfarite said:


> If you are moving out will there be a deposit to get back? will you need it to get another place or could you pay it off your CC debt?


 
Unfortunately I will need it for moving into the new place.

I have just remembered that I am owed about €500 by my brother and I will be getting this in the next few weeks. Should I use this to further clear my card balance or use it toward the overdraft? I mean is it better to clear one of them first or try bring both of them down to a decent level?


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## irishlinks (22 Feb 2008)

If your CC balance is 850 and you are paying  400 a month off it - sureley it will be cleared in two months?? Or have I missed something here? Pay in this 500 when you get it - and the credit card will be cleared in a month leaving you with an extra 100 a week to pay off the overdraft - which will then be cleared in 10 weeks.


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## 0141607 (22 Feb 2008)

irishlinks said:


> If your CC balance is 850 and you are paying 400 a month off it - sureley it will be cleared in two months?? Or have I missed something here? Pay in this 500 when you get it - and the credit card will be cleared in a month leaving you with an extra 100 a week to pay off the overdraft - which will then be cleared in 10 weeks.


 
Yes this is correct. I mean it would take about 3 months at least to clear both.


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## bugler (22 Feb 2008)

CCs are indeed handy for booking holidays, that is why I eventually got mine after many years without one. But I think you should give serious thought to getting rid of it. Does your girlfriend have a CC that you could use for flights etc? That's how I got by 

Failing that I'd take the approach I do now. The credit card can be used, but is to be cleared or close to cleared right away. So I move money from my current account to the CC straight off. It's easy to forget about the mounting figures in your CC column. If I don't have enough money in my current account to cover the CC then I should be buying whatever it is I'm thinking of buying. 

The others have given some good ideas as to how to clear your debts initially. Once you get them seen to all it will take is a bit of discipline and there's no reason you can't have your own place with your gf, regular socialising etc.


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## so-crates (22 Feb 2008)

Keep a money diary, all incoming for the week, and record every cent going out. The best person to identify any potential savings is you, but the usual surprises are how much spent on food and snacks in a day, how much on transport and the little incidentals (newspapers, etc.) 
Think about it, I did that for a week for myself and found I was spending nearly €15 a day that I didn't really need to!
Solutions are easy once you find the hole! Mine were bring packed lunches, they are invariably cheaper. Use a flask for tea on the commute (€2 for a cup of hot water, a splash of milk and a tea bag .. twice a day - not good value!). For transport I started walking more and looked into the Taxsaver scheme and stopped flagging taxis! Walking can take a while but it is very cheap! Also if you are on (or even could be on) public transport for your journey to work, look into the Taxsaver scheme as it does represent good value for money and as it is at the minimum a monthly ticket it can be used when not in work also. And for newspapers ... well for a time I stopped buying them but I don't really like the free rags. However the Indo website is free and the Times is cheaper than buying the paper edition so I made good use of that.
Other than that prioritise the debts you want to pay off (I think you already have to a certain degree) and plan the timetable for paying them, it is nice to tick a box when the debt is cleared (particularly credit card) and it does free up your income.


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## 0141607 (25 Feb 2008)

Thanks for all your help guys. I really like the idea of recording everything that goes in and out every week. That will make me realise where I am spending money on unnecessary things.


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## annR (25 Feb 2008)

bugler said:


> So I move money from my current account to the CC straight off.


 
Is it possible to take this one step further and set up some kind of standing order into your CC for a fixed amount every month?  It would allow you to budget for a fixed CC repayment amount every week/month, and save you the bother of moving it yourself.  Do not use it again until the balance is cleared.  If you still want to keep it in the future for booking holidays etc.  you could keep up the standing order to the CC for a smaller amount each month and use it to save for the holiday.  When there is enough dosh on your CC you know you can afford that holiday and you can pay for it with the CC without worrying about repaying.

Good luck with the job BTW.  Will your rent in the new place not go down seeing as you will be sharing with your girlfriend?


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## shoppergal (25 Feb 2008)

if you want to record your spending you should try www.spendingdiary.com. It's really straightforward to use and lets you run reports by week/month etc so you can see how much you're spending.

Best advice I could give anyone is work out a budget for each week/month dependent on how you get paid and then figure out how much you have to spend on miscellaneous stuff like lunches/drinks out/dvd rentals/takeawayss etc etc . if you're paid on a friday and you know you have €100 for the week to spend, then take out that €100 and make it last you. Leave the passcard and the credit card at home and don't give yourself the option of taking any more than €100. 

Obviously the €100 is just a figure I've plucked out of thin air. For me and the other half it's €40 each a week for Spending money and when that's gone, tough. 

Best of luck with the moving in together. Be careful not to lean on the credit card to buy too much stuff for your new home. It's a huge temptation


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## teachai (26 Feb 2008)

When I worked in England I had a card that was a cash card and a visa debit card rolled into one.  This is much a better option for some people as you can still only spend whats in your account.  Try and see if your bank provides such a thing.


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## ClubMan (26 Feb 2008)

Most banks issue combined _ATM _cash/_Laser _debit cards.


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## 0141607 (26 Feb 2008)

ClubMan said:


> Most banks issue combined _ATM _cash/_Laser _debit cards.


 
Yes PTSB have this option but I chose not to take it as I had the credit card and thought that having both would only further complicate things. I think that as soon as my card is clear I will cancel it and go for a debit card and just use those top-up cards for purchasing flights online.



annR said:


> Good luck with the job BTW. Will your rent in the new place not go down seeing as you will be sharing with your girlfriend?


 
Thank you - I'm keeping my fingers crossed that I will get the job but I'm not banking on it either. Unfortunately as my rent is cheap for Dublin €430 a month and hers is also cheap €387 - when we do move in together we will be looking for a 1 bedroom apartment and they are more expensive than the total we are paying but it is something we both want and at the moment we are practically living out of either my flat or hers so we may as well just get our own place and have some privacy.


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