# advice re maximising returns



## amtc (29 Nov 2007)

Most of the threads I have seen are about people calling in MABS etc. Am well aware that I am lucky so would appreciate any advice. 

I am 34 - single female
Have house 4 years - outstanding mortgage 231k
Salary 90k
After tax 5200 (as PRSI threshold passed - in Jan pay drops 4800)
Mortgage 2000
Car 450
Savings 400 (BOI SSIA bonus account + An Post Instalment Savings)

I have a good social life (not manic but a few drinks and a taxi home 3 times a week) but never seem to have money left at the end of the month - house insurance this month of 900 euro wiped me out. Have about 20k in tied-up savings and no cc balances (although have three with limits of 50k) but just want to know is there anything I could be doing a bit smarter. Paying into defined benefit pension.

I know I earn good money so I don't want any replies which state how lucky I am, or how I am not in financial trouble. I worked very hard to get a very good job, studied hard, and I put in the hours. I just want to maximise my benefits. 

The reason for me asking now is that I am waiting on the results of some medical tests, and although I have medical cover my work recognition of same is poor and I want to see what my options are in case it all gets nasty.


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## Sherman (29 Nov 2007)

Firstly, why is your house insurance costing you €900 per year? This seems way excessive - you should be insuring your house on the _reinstatement cost_, and not the market value.

Do you take many holidays, mini-breaks etc?  This could be eating up a large amount of your take-home pay.  What about clothes?  I assume as a professional you have to invest quite a bit in your appearance - do you splash out on expensive clothes/have a large wardrobe?

What about your three nights out per week - you could easily be spending €150 per night out, or circa €500 per week just on entertainment. 

I think you need to track your spending, even over just a week, to get some idea of where your money is going - you don't really seem to know where it goes every month.  Only when you have a handle on where your money goes can you get an idea of where it should be going/where you would like it to go.


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## pinkyBear (29 Nov 2007)

Hi AMtc,
If I were you, I would check out ensure.ie for home insurance - I got ours for 300 pa.
I can understand your social life - would you think of doing some more home entertainment rather than heading out in to town - have friends over...
One of the things I did this year was to try and pay all my car insurance and pet insurance - blah blah annually rather than having 5 million DD's come out every month as these readdy do mount up..

BTW - you shouldn't feel guilty about having a good salary - enjoy it - what responsibilities do you have - other than yourself none....


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## ClubMan (29 Nov 2007)

Sherman said:


> Firstly, why is your house insurance costing you €900 per year? This seems way excessive - you should be insuring your house on the _reinstatement cost_, and not the market value.


*[broken link removed]*



amtc said:


> After tax 5200 (as PRSI threshold passed - in Jan pay drops 4800)


Rumour has it that _Budget 2008 _next week could abolish the employee _PRSI _threshold of €48,800 (?) meaning that you will be paying full _PRSI _on all income!  



amtc said:


> Have house 4 years - outstanding mortgage 231k
> Mortgage 2000


What is your original mortgage amount, term and current rate? €2K p.m. a month seems high for the figures posted even if they are not complete.



amtc said:


> Salary 90k
> After tax 5200 (as PRSI threshold passed - in Jan pay drops 4800)
> Mortgage 2000
> Car 450
> ...


So you have €5,200 coming in and c. €2,850 going out (€3,750 this month due to €900 insurance). That means that you are blowing the remaining €2,350 on other expenditure. As mentioned above you need to find out where specifically.


> Paying into defined benefit pension.


 Is the €5,200 p.m. after this deduction?


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## amtc (30 Nov 2007)

thanks for the replies. 

I should explain that the house insurance is actually part of a management fee so that's why the figure seems so high.

Yes, you're probably right re clothes, but having used chain store suits a a trainee, I do think it is one of the things that one should invest in (dry clean a penneys suit vs a good suit and you'll see the difference). I don't go mad either - a few suits twice a year in Arnotts! Entertainment in home not popular as am only one of my mates living northside. 

The reason why I was asking was a comment by a colleague who maintains a family on the same salary who maintains I should be on a goldmine; I really don't feel I over extend myself (ok I am not making sandwiches and bringing them to work but I am not having three course lunches/dinners and taxiing home every night), so I wondered was I missing anything that I could be doing for the future - avcs etc. Mind you the first political party to give tax relief on highlights will get my vote!

The thought of (uncovered) medical expenses has really scared me, and the fact I don't have a huge stash of (available) rainy day money. Am only child with elderly parents so don't have that to fall back on (not that I would), so thought would ask of the expert advisors here. Sorry to be so defensive about earnings etc but was just going on the treatment of previous posters.


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## extopia (30 Nov 2007)

amtc said:


> Entertainment in home not popular as am only one of my mates living northside.



Interesting response. And a cop out. Surely your southside mates can afford a taxi if you can?

Three nights out a week? Maybe you could survive on fewer?



> Mind you the first political party to give tax relief on highlights will get my vote!



I know you meant this as a joke, but you haven't told us how much you spend on said highlights. Presumably you feel it's worth it.

90k. Single. Your colleagues are right - don't be afraid to ask them how they manage to put by more than you do, if they're earning the same.

Track your spending for a couple of months and post more details. You seem to have minimal debts, but your meagre savings suggest you could be doing better for the future, especially if you're worried about medical expenses (something everyone should have a few bob put by for).


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## minion (30 Nov 2007)

The very same discussion is going on here

http://www.askaboutmoney.com/showthread.php?t=65538


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## GeneralZod (1 Dec 2007)

Your mortgage payment is high suggesting you're on a 20 year term which is good. Get it repaid as quickly as you can.

Your lifestyle spending is enormous. There's massive scope for savings there. If you disagree post a list and I'll save you a grand a month at least


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## ramble (1 Dec 2007)

Paying a little bit more attention to where your money is going would make a  huge difference.  Try the trial of Budget software at www.snowmintcs.com.  It is a clever little program that puts your salary into envelopes for different types of expenditure, so you can see where you are continuously.  It's also attractive and easy to use and so encourages you to log your spending.  I have used it for a couple of months (had to buy the program 25 euro) and it makes keeping track  much easier.  Our household also has a good amount of money coming in every month but I found it very hard to keep track of where it was going, it seemed one day there would be thousands in the account and the next day nothing.  I never got into debt but just felt the money was being frittered away. This software has really helped on that front - current account has stayed in the black since I got it despite a few bits of unexpected expenditure.

 Also a standing order into a savings account is a great way of getting money out of where you can spend it easily, Halifax do a good regular saver, as to many of the other high street banks. Make sure its a bank that doesn't have a branch easily accessible to you so you can only get the money out if you really need it.


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## ClubMan (2 Dec 2007)

I had inadvertently unapproved a post of mine earlier in the thread and have reapproved it now just in case the original poster missed it and it proves useful.


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## romualdas (8 Dec 2007)

1) Can you find a way to *double your earnings?
*2) Can you find a way to *pay-off your mortgage in full* over next year or two?

Just think about it now...


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