# What changes could be made to financial situation?



## eco (23 Mar 2009)

Age: *24*
Spouse’s/Partner's age: *27*

Annual gross income from employment or profession: *8000 (unemployed)
*Annual gross income of spouse: *19000*

Type of employment: e.g. Civil Servant, self-employed ...*factory worker*

In general are you:
(a) spending more than you earn, or
(b) saving? 

*B*

Rough estimate of value of home
Amount outstanding on your mortgage: 
What interest rate are you paying? 

*We are renting- paying 540 a month*


Other borrowings – car loans/personal loans etc - *0*

Do you pay off your full credit card balance each month? * dont have a credit card*


Savings and investments: *1600 in credit union*

Do you have a pension scheme? *no*

Do you own any investment or other property? *no*

Ages of children: *no kids*

Life insurance: *no
*


----------



## ontour (23 Mar 2009)

*Re: What changes could be made?*

You are both young and have been financially prudent to have not got yourself in to any debt. Now is the stage that you should be working on a career to give you the earnings/ lifestyle balance that you desire in the future.

Are you taking advantage of all training that is available while claiming benefits? Are there any part-time courses that would support your career goals.

Most people filling in the money makeover template have short term challenges to address.  Your challenge is to identify and plan for your medium and long term goals.


----------



## eco (23 Mar 2009)

*Re: What changes could be made?*



ontour said:


> You are both young and have been financially prudent to have not got yourself in to any debt. Now is the stage that you should be working on a career to give you the earnings/ lifestyle balance that you desire in the future.
> 
> *Are you taking advantage of all training that is available while claiming benefits? Are there any part-time courses that would support your career goals.*
> 
> Most people filling in the money makeover template have short term challenges to address. Your challenge is to identify and plan for your medium and long term goals.


 
I am only just finished a computer course and i am not allowed to do one straight after(dont know why)

I was thinking of maybe doing some volunteer work - so as not to have a gap on my CV


----------



## Mpsox (23 Mar 2009)

*Re: What changes could be made?*

Absolutely do some volunteer work, it will give you something to do, you may learn new skills and possbily make new contacts that could help you down the line, + it looks good on a CV that rather then sitting on your behind whilst unemployed, you got up and did something productive


----------



## sadie (23 Mar 2009)

*Re: What changes could be made?*

Yes volunteer work is just as valuable experience as regular work in terms of skills being learned - teamwork, working on own initiative, desire to make a contribution, working to improve things, etc. More importantly it will give you something to talk about in the next job interview that comes along. Also shows you are motivated and determined. All great qualities in any candidate for a job.


----------



## rebel16 (27 Mar 2009)

*Re: What changes could be made?*



eco said:


> I am only just finished a computer course and i am not allowed to do one straight after(dont know why)
> 
> I was thinking of maybe doing some volunteer work - so as not to have a gap on my CV


 
I commend you on taking the decision to do something like volunteer work with your time. Hopefully this work will be rewarded with a new job down the line.


----------



## D8Lady (27 Mar 2009)

*Re: What changes could be made?*

You can search [broken link removed] to find something suitable. It a good idea, as other posters have siad, you out meeting people, making contacts and also gaining work experience. 

Good luck.


----------



## stephnyc (27 Mar 2009)

*Re: What changes could be made?*

Also check out [broken link removed]

Well done on being so proactive.. any future employer should take note of this


----------



## eco (13 May 2009)

*Re: What changes could be made?*

I have since found a job so redid my list

Age: *24*
Spouse’s/Partner's age: *27*

Annual gross income from employment or profession: *18460*
Annual gross income of spouse: *19000*

Type of employment: e.g. Civil Servant, self-employed ...

*factory worker (both of us)*

In general are you:
(a) spending more than you earn, or
(b) saving? 

*B*

Rough estimate of value of home
Amount outstanding on your mortgage: 
What interest rate are you paying? 

*We are renting- paying 540 a month*


Other borrowings – car loans/personal loans etc - *0*

Do you pay off your full credit card balance each month? *dont have a credit card*

Savings and investments: *2550 in credit union*

Do you have a pension scheme? *no*

Do you own any investment or other property? *no*

Ages of children: *no kids*

Life insurance: *no*


----------



## stephnyc (13 May 2009)

*Re: What changes could be made?*

congratulations Eco! that is great news!

I see that you redid your SOF - but it might be best to answer the last question, to allow people to help out. As ontour said "Your challenge is to identify and plan for your medium and long term goals. "

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


----------



## Mommah (13 May 2009)

*Re: What changes could be made?*

I notice you've increased your savings by €1000 since your first post.
And got a job.
Honestly I think you should be giving advice not asking for it.

However the jobs you have are fairly low paying and factory jobs are very insecure.

So as a long term goal I would really consider how you can up-grade your skills to enable you to access higher paying and more secure jobs.
I know unskilled jobs in a hospital start at €26 000 or so and are pretty secure.

You are clearly a bright sensible person and enterprising also...and young...so the world's your oyster really.


----------



## eco (16 Jun 2009)

*Re: What changes could be made?*

Well so much for my job being secure its back to redoing it again...

Age: *24*
Spouse’s/Partner's age: *27*

Annual gross income from employment or profession: *8000 (unemployed)
*Annual gross income of spouse: *19000*

Type of employment: e.g. Civil Servant, self-employed ...*factory worker*

In general are you:
(a) spending more than you earn, or
(b) saving? 

*B*

Rough estimate of value of home
Amount outstanding on your mortgage: 
What interest rate are you paying? 

*We are renting- paying 540 a month*


Other borrowings – car loans/personal loans etc - *0*

Do you pay off your full credit card balance each month? *dont have a credit card*


Savings and investments: *3100 in credit union (250 in seperate acc for xmas) so 3350 in cred union alltogether*

Do you have a pension scheme? *no*

Do you own any investment or other property? *no*

Ages of children: *no kids*

Life insurance: *no but paying 10e a month for pet insurance*


----------



## Bronte (16 Jun 2009)

*Re: What changes could be made?*

I'm sorry to hear you lost your job.  The best advice I can give you is to become better educated so that you can get a well paid job with better prospects.  You do not need financial advice as far as I can see as you have no money problems.


----------



## Mommah (17 Jun 2009)

eco sorry about the job and definitely do a course or something.
If you are unemployed for circa 6 months you are entitled to a back to education allowance to help with living while going to school.

How about an apprenticeship. like electrician?


----------



## so-crates (18 Jun 2009)

Hi eco,

in answer to the only question I can see you have asked "*What changes could be made to financial situation?*" - the only plausible answers are lots, none, some 

But to be serious about it, financial decisions and financial planning should be about how you want to live your life not vice versa. So the first part of financial planning is to look at what you (and your partner) want out of life. Then translate these into financial goals, then look at how to achieve them via planning, budgeting, saving, spending, borrowing, etc.

So to give you an idea you should think about some of the following questions. You don't have to answer them here but they help you with the next step, setting objectives:
1) Do you want to continue working in the sort of job that you are (or rather were) doing?
If not, do you want to engage in further education to change your job prospects?
If yes, what sort of education do you want to do?
2) Do you see yourself always working for someone else or do you envisage yourself running your own business? Is it something you'd ever be interested in or something that you'd see as taking over your life?
3) Do you want children?
4) Do you want to own your own property? Do you want to stay renting? 
5) Do you want to stay in Ireland? Would you like to live abroad for a time?
6) What do you think about for retirement?
7) The above are mostly lifetime things but other things to consider are lifestyle choices like holidays and cars.

Have a think about all of those and any others you can come up with and then use them to define some long, medium and short term objectives
Long-term objectives would be things like 
- buying a house
- building up a retirement fund
- children (esp education!)
- setting up a business
basically anything that would be achieved over several years.

Medium term objectives could be:
- buying a car
- buying a boat! 
- doing a training course or gaining a third level qualification
So anything that reasonably could be achieved in say between one and five years (time is not the only consideration but medium term would probably be at most five years)

Short term objectives could be:
- going on holidays
- planning for Christmas
- a short training course
- a new job
- buying more expensive items like say spectacles if you needed them or paying for unanticipated bills like a doctors bill or a wedding present.
So things that you'd probably achieve in the next year.

Once you have those objectives in mind you can then start thinking about how to acheive them. Your savings are the key to best achieving most objectives. You would probably want to apportion them to different funds: 
That would be you'd have a long terms savings for things like house deposit, children, etc. A part of long term savings might be to look at whether it would be right to set up a pension, on your income it may not be the best use of your savings since you wouldn't benefit so much from the tax relief that pensions attract but it is still worth considering before ruling out.
A medium term fund for say putting towards purchasing a car, etc. This fund could double as your rainy day fund for coping with serious reverses.
A short term fund that you plan to use for some specific things like holidays and presents.

The reason I am suggesting considering them separately is twofold, firstly it would allow you to shop around for the best rate of savings for each type of saving. Basically if you are not planning to take out money out of an account for say six months - you may be able to get a better rate of interest for it. Whereas for your short-term savings you'd be planning to have immediate access to them so restrictions on accessing the funds would not be tenable. You don't have to separate them but it may make it easier to do. I see you have already done that by separating out your Christmas fund - well done!

From what you have posted you are financially stable and cautious, you haven't run up any big debts. Your income isn't large but you are using it wisely. I think for you the best thing to do would be to look at how to enlarge your income by training. That way you will - eventually - have more disposable income. The other thing (though I suspect you already must be doing so!) is to set up a budget, planning yearly, monthly and weekly expenses against your pay frequency and expectation.

Other things to consider would be whether you need insurance of any description? I think on the whole (both in your twenties and capable of working, no kids and no property) you probably don't need to, but it is best to think about it first (like for example the way you have pet insurance).

Best of luck - it is tough being out of work but you seem a very capable person - I am sure you will get another job soon.

S


----------



## eco (24 Nov 2009)

*changes again*

Since we have bought a house ill make the necessary changes

Age: *24*
Spouse’s/Partner's age: *27*

Annual gross income from employment or profession: *8000 (unemployed)*
Annual gross income of spouse: *19000*

Type of employment: e.g. Civil Servant, self-employed ...*factory worker*

In general are you:
(a) spending more than you earn, or
(b) saving? 

*neither... any extra money we just take extra off loans or throw a bit more into morgage account*

Rough estimate of value of home* 60000*
Amount outstanding on your mortgage: *not sure, got a morgage of* *55200 (92% morgage 1st morgage payment in december 2009)*
What interest rate are you paying? *3.69% (fixed)*

*morgage/life insurance/house insurance and morgage protection 307euro a month*


Other borrowings – car loans/personal loans etc - *10000 with credit union for house stuff,paying 50 back a week,  have 3500 in savings against it*

Do you pay off your full credit card balance each month? *dont have a credit card*

Savings and investments: *3500 in cred union (against a loan)*

Do you have a pension scheme? *no*

Do you own any investment or other property? *no*

Ages of children: *no kids*

Life insurance: *28 a month- paid automaticaly with morgage, pet insurance 117 a year*


----------



## Bronte (24 Nov 2009)

*Re: changes again*



eco said:


> *morgage/life insurance/house insurance and morgage protection 307euro a month*
> 
> 
> 
> Life insurance: *28 a month- paid automaticaly with morgage, *


 
Can you break down the figures and clarify what exact insurances you have.

Congratulations on becomming a house owner, you must have bought the cheapest house in Ireland.


----------



## goingforgold (24 Nov 2009)

*Re: changes again*

Where on earth did you get a house for 60K. I know prices have dropped but that's unreal...


----------



## Danniboo7 (24 Nov 2009)

Hmmmmm??? You've gone from unemployed to employed to unemployed again. Increased your savings by a couple of grand. Doubled your pet insurance. Bought a house for 60k?? All sounds a bit mad


----------



## eco (24 Nov 2009)

*Re: changes again*

someone was looking for a quick sale, husband died and too many memorys of him in the house they owned and she wanted out asap

i have life insurance (28 a month)
house insurance (31 a month)
morgage protection (18.64 monthly)


----------



## eco (24 Nov 2009)

Danniboo7 said:


> Hmmmmm??? You've gone from unemployed to employed to unemployed again. Increased your savings by a couple of grand. Doubled your pet insurance. Bought a house for 60k?? All sounds a bit mad


 
i saved every cent of social welfare i got which is how my savings went up so much

where you going with doubled your pet insurance?
that 117 is the pet insurance for the year 
and yes i was lucky enough to get a house for 60 k

anything else?


----------



## Bronte (24 Nov 2009)

*Re: changes again*



eco said:


> i have life insurance (28 a month)
> house insurance (31 a month)
> morgage protection (18.64 monthly)


 
What is the mortgage protection for?  Have you read the small print? Do you need it?

The other two insurances are a must and they sound ok.


----------



## Bronte (24 Nov 2009)

Danniboo7 said:


> Hmmmmm??? You've gone from unemployed to employed to unemployed again. Increased your savings by a couple of grand. Doubled your pet insurance. Bought a house for 60k?? All sounds a bit mad


 
He also had no debts whatsoever before he bought the house and he has savings even though on a relatively low salary.  He also managed to get a bargain and is living within his means.  How refreshing.


----------



## eco (24 Nov 2009)

*Re: changes again*



Bronte said:


> *What is the mortgage protection for?* Have you read the small print? Do you need it?
> 
> The other two insurances are a must and they sound ok.


 
morgage advisior said if partner loses job that the morgage will be covered for a while. we just pretty much did what he said because we 1st time buyers and didnt know the ins and outs of it all


----------



## Bronte (24 Nov 2009)

*Re: changes again*



eco said:


> morgage advisior said if partner loses job that the morgage will be covered for a while. we just pretty much did what he said because we 1st time buyers and didnt know the ins and outs of it all


 
Dreadful advisor.  Is that a bank and was it their own policy or one of their tied products?  At least it's fairly low.  

Have a read of it tonight.  You need to know what's a while?  Are you sure it will pay out?  Also the government will pay your mortgage interest if you both lose your jobs.


----------



## Danniboo7 (24 Nov 2009)

*Re: What changes could be made?*



eco said:


> Life insurance: *no but paying 10e a month for pet insurance*


----------



## Danniboo7 (24 Nov 2009)

*Re: changes again*



eco said:


> Since we have bought a house ill make the necessary changes
> 
> 
> Life insurance: *28 a month- paid automaticaly with morgage, pet insurance 117 a year*


 
Obviously I didn't read these two properly. I was simply making an observation of how quickly you're savings had gone up and you bought a house and you're overall financial situation changed. No need to be defence I was actually intrigued that you managed to save so much.


----------

