# Living beyond my means...



## dublin8 (23 Aug 2011)

_Age:_ 23 
_Spouse’s/Partner's age:_ N/a
_
   Annual gross income from employment or profession:_ 35500
_Annual gross income of spouse:_N/a

_Type of employment:_ Permanent

_In general are you:_(a) Spending More Than I earn. 


_Rough estimate of value of home
   Amount outstanding on your mortgage: _
*N/a *
Rent - €650 p/m 

_Other borrowings_ – N/a
Only €400 overdraft - Which doesn't incur any charges and is used each month. 

_Do you pay off your full credit card balance each month? 
   If not, what is the balance on your credit card? _
Credit Limit €1000
Pay off half each month, but use it again. Regularly go over credit limit. What are the implications of this? 

Outgoings: 
Electricity: 75pm (Currently in arrears of €200) 
Contents Insurance: €45pm 
Eircom (Broadband/Phone): 54pm - UPC coming to area soon
Bins: €14.50 every 4 weeks
Food: Unsure? 
Also a smoker - Working on this. 

Dinner out at least twice a month. 

Esentially, I live month to month. Most months with little or nothing left in my account. 

A hobby of mine is restoring old furniture which has got out of hand in the last year. Rather than sell the items on I've kept them as I don't really want to part with them - time, effort etc. 

I also buy Art regularly, noting expensive - €100-€300. Its at the point where I have stacks and stacks of canvases against walls. And no where to put them. Again, i really don't want to part with these either. 

I plan on starting with a clean slate in Spetember with a view to build up a lump sum for a rainy day/ deposit for a house etc. 

Any advice on how to become a saver rather than a splurger?


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## wbbs (23 Aug 2011)

Spending Diary.   You earn loads to keep one person going, cut down on the expensive hobbies, I would say eliminate but hobbies are good.  Mind you stop buying the art, sell some maybe.    Cut everything to the bone as an exercise to see how little can you live on, then you can always loosen up again if you find that too much.   Your electricity is high at 75 p.m. is that including an arrears amount?   Smoking - well you know the answer there, I know it's not easy but there are so many benefits to giving up, when you want your mortgage your life cover will cost way more than non-smokers.  

You really know the answers yourself but it's just a matter of putting it into practice.


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## sustanon (23 Aug 2011)

Are you becoming a hoarder?
http://www.aetv.com/hoarders/


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## dublin8 (23 Aug 2011)

Many thanks for the advice. You're certainly right, I do indeed know the answers. I suppose sometimes it's best to get things on paper to get a sense of clarity. 

Yes the electricity is quite high. I put it down to over use of a tumble dryer and having about 15 various lamps that I tend to leave on. House is north facing so can be quite dark at times. 

Luckily I don't think I'm a hoarder just yet. But may well become one if I continue. 

Thanks again.


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## Mongola (23 Aug 2011)

The word hoarder also came to my mind. 
You know that "Its at the point where I have stacks and stacks of canvases against walls. And no where to put them. Again, i really don't want to part with these either". 
You also know that you could make some money by selling on some of the items you have restored but you don't. 
Also, why start in September (even if it is around the corner) . Why not make that decision and start now??? 
If parting with those items is painful..then you'' ll know you are a hoarder! Otherwise, I don't think you are in a bad situation, you just need to refocus and you should be ok.


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## Woodie (23 Aug 2011)

If you are in a dark house make sure you are using low watt lamps also just switch on the ones in the room you are using.
If the drier has a timer and you have night electricity you could try using it that way. Otherwise get up a little early If you don;t have nightsaver you could check it out. I worked out on average an adult in a household uses between 40 to 50 euro per month without scrimping too much.


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## Sue Ellen (23 Aug 2011)

I know it probably depends on the area you live in but €14.50 per month for 1 person for bins seems high.  Do you recycle enough?


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## Firefly (23 Aug 2011)

Is your rent a bit high at 650pm?


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## STEINER (23 Aug 2011)

quit your non-essential spending, hang up your best art on walls, get rid of the surplus ones.  pay your electric arrears, aim to clear your cc every month but basically eliminate unnecessary cc spending.  cut out your dining out for a month or two.  jot down how much you spend on food in a typical week.  everyone has some scope for saving, you don't need to become a hermit, just eliminate unnecessary waste of money.


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## pc7 (23 Aug 2011)

Your contents insurance seems very high working it out at 540 a year, have you tried ringing around to reduce it.  Have you checked daft.ie to see rents in your area, if they are lower try negotiating downwards with your landlord.  Eating out try go for early birds, but agree with the other posters start a spending diary and sell some of your stuff.  Also could you set up a direct debit to a savings account even a small amount to start building up some savings.  What is your take home pay per month?


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## sustanon (23 Aug 2011)

you have plenty of disposable income, don't worry about $14 bin charge, and you need contents insurance for the 10 million quids worth of art.

quit your discretionary spending addiction.

Art, Shoes, handbags, whatever,* that's *the lions share. You're making decent money and have reasonable fixed outgoings. eating out, socialize travel go on holiday, live a little....


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## horusd (24 Aug 2011)

What is your nett monthly income? Based on your expenditure listed above, including an allowance for 20 fags a day & excluding food, amounts to 1095.00. In you order to understand where you can save, you need to record what you are spending on what. As wbbs recommended you need a spending diary. This will record every euro you spend, and on what. 

It looks like you are just coasting financially and ending up in debt, rather than having a income/expenditure problem per se. It's as easy to save as it is to spend, but you need to change you mindset and have a savings plan. A couple of general points:


Your contents cover is extremely expensive, shop around.
You don't mention mobile phone costs?
Do you need a landline? Would mobile BB be enough?
Your electricity is very high. Does this include heating? Have you shopped around?
What is the average rent in the area? Are you paying too much? Check daft.ie.


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## kennyb3 (24 Aug 2011)

Re the rent are you sharing or on your own? Could you let out a room if you are?


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## serotoninsid (24 Aug 2011)

Firefly said:


> Is your rent a bit high at 650pm?


I thought this too - I don't know what the quality is like but just looked on daft and seems to be plenty of places for around the €500/month mark...but of course, that's all relative to what you're currently getting for your €650/month.
Tumble dryer:  I have one - but only use it in emergencies.  Can't beat a clothes line or clothes horse.
Rather than sell the items on I've kept them as I don't really want to part with them - time, effort etc. 



			
				dublin8 said:
			
		

> I also buy Art regularly, noting expensive - €100-€300. Its at the point where I have stacks and stacks of canvases against walls. And no where to put them. Again, i really don't want to part with these either.


You  already know this but it's pointless is it not.  If they are sitting around gathering dust - then nobody is getting the benefit of them.  You obviously see some value in them - so most likely someone else will too....in which case, you get some $ in the knowledge that someone out there will enjoy them to the full.


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## Sue Ellen (24 Aug 2011)

Make sure you claim all your tax credits/allowances


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## Black Sheep (25 Aug 2011)

As others have already said the outgoings (rent, electricity,insurance) are too high and need to be negotiated. Then put the monthly amount saved on each item into a savings account. No need to change the lifestyle as every one needs a little pleasure in life.

Next tackle the fags. As a former smoker my method was to reduce. ie 20 per day this week, 19 next week, 18 following week and so on, but the money saved must go with the other savings.


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## dublin8 (26 Aug 2011)

Thank you everyone for your helpful replies!

Just to answer a few of your quiries,

The rent I'm paying is for a house that is worth about twice what I'm currently paying. It's rented from a relative. 

The electricity is quite high. I never looked into a day/ night meter. Is there any cost involve in getting one installed? What times would the electricity be cheaper? 

Yes my insurance is high but I have alot of stuff (the house came unfurnished). I also have a few high value items listed on the poicy and theft/ damage/ loss cover on laptops and camera equipment.

I'm in the process of trying to find someone who I can lend art to - schools etc don't seem very interested. So I'll keep going with this. I've decided that I'd much prefer to lend rather than sell.


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## serotoninsid (26 Aug 2011)

dublin8 said:


> The rent I'm paying is for a house that is worth about twice what I'm currently paying. It's rented from a relative.


Sounds like your onto a good deal then relative to what your paying (even if your budget for rental should ordinarily be set lower).  Would you consider renting a room?



dublin8 said:


> The electricity is quite high. I never looked into a day/ night meter. Is there any cost involve in getting one installed? What times would the electricity be cheaper?


Yes - there are additional costs - so you have to weigh this one up to see whether it's a practical move or not.  I think your better tackling it from the point of consumption - and you've already identified use of tumble dryer.  I have always had one - but rarely use it.  Clothes line during the Spring/Summer/Autumn  and clothes horse indoors at all other times.



dublin8 said:


> Yes my insurance is high but I have alot of stuff (the house came unfurnished). I also have a few high value items listed on the poicy and theft/ damage/ loss cover on laptops and camera equipment


I ring at least ten brokers or insurance companies each year (despite the fact that one seems to almost always have the best deal - both for car and house insurance...bizarre - but it never stops me checking.  Insurance companies do benefit from customer lethargy - as people get out of the habit of checking, leave it too late, etc. - and just work of the renewal notice.


dublin8 said:


> I'm in the process of trying to find someone who I can lend art to - schools etc don't seem very interested. So I'll keep going with this. I've decided that I'd much prefer to lend rather than sell.


I guess this is a personal choice but then anyone replying to you here is likely to be practical rather than emotive in how they respond to this.  i.e. I guess there's no wrong answer whichever way you go on this - but obviously, you have to look at other areas to balance the books as a consequence.


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## Fairy_ (26 Aug 2011)

I've made money selling clothes I haven't worn in over a year on eBay recently. Every little helps!


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## horusd (27 Aug 2011)

dublin8 said:


> Thank you everyone for your helpful replies!
> 
> Just to answer a few of your quiries,
> 
> ...


 
Can you rent a room? Check out electricity costs at bonkers.ie. You haven't responded to all the queries raised in previous post, call costs, nett monthly income etc. These answers will help everyone to better understand your positon.


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