# Saving for college/tightening the purse strings



## Danielle24 (7 Apr 2011)

Hey guys,

I know i've started a few threads here, but the advice I get is always useful. Just looking for advice on my current financial status and any improvements I can make. A few things have changed for me aswell so would be no harm to make a few changes. I started a thread about travelling a while back but i'm putting this on the backburner for now. I will also have some shares maturing in the next few months so advice on what to with them would be lovely. Thanks

Wages - €2115 pm

*Bills:*

Rent - €400 pm ( I am looking to move closer to work though to save on petrol/rent causes)

AIB - €4118.68 - €134pm

Credit Union - €1938.63 - €200pm (€500 in savings)

R&S - €1720 - €50pm

Overdraft - €650 - Have to start clearing this

CAR - €2055 - €180 pm

*Savings:*

Shares - Due to mature January all going according to plan should get about 5/6k back

*Expenses:*

ESB - Average €50 pm

Bins - €23.50 pm

Internet - €30 pm 

Petrol - Average €50/€60 per week

Food - €30/€40 per week (more if I eat out/get takeaways, cutting down on this) 

Parking - €4 per week

Car Insurance - Paid until July

Tax - €80 every 3 months

Dental Insurance - €10 pm

Any advice greatly appreciated


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## fizzelina (7 Apr 2011)

Danielle24 said:


> Hey guys,
> 
> I know i've started a few threads here, but the advice I get is always useful.
> Any advice greatly appreciated


 
The advice is useful.......and greatly appreciated??? Seriously Danielle have you re-read your other threads and posts you made on them because I read them all at the time and so I can honestly say I have no desire to post advice here and I will follow this thread with interest to see if it ends up the same as the others.


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## Danielle24 (7 Apr 2011)

Please don't post then.


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## Protocol (7 Apr 2011)

Danielle24 said:


> Wages - €2115 pm   *GROSS or NET??*
> 
> 
> *Bills:*
> ...


 
....


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## InfoSeeker (7 Apr 2011)

Bins - €23.50 pm

This is crazy, crazy. Can you give more details?

I am confused by your response Protocal as why do you see this as being crazy, crazy?

I pay 330 euros per year for private bin collection [domestic & recycling] & can claim std relief [well this will be the last year for this] so net cost is 264 which is €22 pm

Am I crazy, crazy as well?


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## glasto (7 Apr 2011)

My bins are €25pm (gross of tax relief) so I must be crazy, crazy too. 

My advice is pay off your loans, starting with the one with the highest interest rate. Keep a spending diary, you look to have a good bit of money unbudgeted so throw that at the loans. Once they are clear you can save the amount you were paying towards the loans.


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## Danielle24 (7 Apr 2011)

Rent - €400 pm ( I am looking to move closer to work though to save on petrol/rent causes)

AIB - €4118.68 - €134pm

Credit Union - €1938.63 - €200pm (€500 in savings)

R&S - €1720 - €50pm

Overdraft - €650 - Have to start clearing this

CAR - €2055 - €180 pm


*So you have 5 loans / debts??? What does R & S mean? Do you know the interest rates on the loans?*

*PS How can anybody have 5 loans?? I am amazed.*

_R & S is an insurance company it's to do with an accident there's no interest._

_AIB - Cleared my credit cards/Overdraft/Paid for Wedding abroad._

_Credit Union - College fees_

_Car - Self explanatory_

_Overdraft - Student overdraft. No interest._

*Savings:*

Shares - Due to mature January all going according to plan should get about 5/6k back

*Expenses:*

ESB - Average €50 pm

*I pay 35-45 pm for a 4-bed detached house - yours seems a bit high??*

I have not gas/oil etc this is for everything.

Bins - €23.50 pm

*This is crazy, crazy. Can you give more details?*

_It works out at €75 for 6 months but because I houseshare and they come and go a good bit I've just started paying it monthly so I don't stung paying for 6 months and a new tenant doesn't have to pay anything._

I forgot to mention my college fees for next year are €3,000 and I claim taxback for them at 20% or €600. Starting saving for these next year.


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## Danielle24 (7 Apr 2011)

glasto said:


> My bins are €25pm (gross of tax relief) so I must be crazy, crazy too.
> 
> My advice is pay off your loans, starting with the one with the highest interest rate. Keep a spending diary, you look to have a good bit of money unbudgeted so throw that at the loans. Once they are clear you can save the amount you were paying towards the loans.


 

Thanks Glasto.

On paper it looks like I have a good bit over/unbudgeted but I always end up broke coming near the end of the month.


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## Mongola (7 Apr 2011)

Hi, well, the first thing is that I am glad to hear that you have put your travelling plans on the backburner for now. I think they should stay there for another while until you get all that sorted out. 

I think this was suggested to you on the other thread but have you started to do a spending diary? It would give you an idea of where every penny is going and from there you can see where you overspend. 

Could you take up a second job for a few months? in the evenings? week ends? The idea may not excite you but it will allow to have a little more money to pay off some of your debt, also you would have less time to spend it!

From your thread, there is one thing that came across. You seem to be relying on those shares due to mature next year. Next year...? that is a long time away and you should not rely on them. When the time comes and IF that is the amount you get, it should be a bonus and no be already accounted for so I would forget about that for now...

I did post a reply on your last thread and I do hope that alongside all the advice you got (from some quite angry people, and I could completely understand where they were coming from!!!) you did get something out of it.


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## Danielle24 (7 Apr 2011)

Mongola said:


> Hi, well, the first thing is that I am glad to hear that you have put your travelling plans on the backburner for now. I think they should stay there for another while until you get all that sorted out.
> 
> I think this was suggested to you on the other thread but have you started to do a spending diary? It would give you an idea of where every penny is going and from there you can see where you overspend.
> 
> ...


 
 Hey I finish college in May and I have started looking for something part time

If people have a criticism to make i'm perfectly open to listening to it, but there's no need to be rude and offensive.


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## truthseeker (7 Apr 2011)

Danielle24 said:


> If people have a criticism to make i'm perfectly open to listening to it, but there's no need to be rude and offensive.


 

What!? How was Mongolas comment that you highlighted either rude or offensive?


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## Danielle24 (7 Apr 2011)

truthseeker said:


> What!? How was Mongolas comment that you highlighted either rude or offensive?


 

It wasn't they said how they understood peoples anger in previous posts and I stated that I was willing to listen to peoples criticisms, but that there is no need for people to be rude or offensive.


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## orka (7 Apr 2011)

Danielle24 said:


> ...A few things have changed for me aswell so would be no harm to make a few changes. ...


What has changed? There doesn't seem to be much change in your income and expenses compared with last time.





Danielle24 said:


> I will also have some shares maturing in the next few months so advice on what to with them would be lovely.


Sell them, pay any CGT due and use the remainder to pay off as much of your remaining debt as possible.


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## Protocol (7 Apr 2011)

Perhaps I was too brusque.  Sorry.

It's just that I pay maybe 10 per month for the large 240L wheelie bin to be lifted once per month (two people).


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## Danielle24 (7 Apr 2011)

Protocol said:


> Perhaps I was too brusque. Sorry.
> 
> It's just that I pay maybe 10 per month for the large 240L wheelie bin to be lifted once per month (two people).


 

Mine are collected once a week i'd say that's the difference.


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## Danielle24 (7 Apr 2011)

orka said:


> What has changed? There doesn't seem to be much change in your income and expenses compared with last time.Sell them, pay any CGT due and use the remainder to pay off as much of your remaining debt as possible.


 

I've to save for college. My housemate has moved out I might be moving myself.


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## glasto (7 Apr 2011)

How long have you got to save for college? Will you be working while at college and do you have to save up for living expenses or just fees?


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## Danielle24 (7 Apr 2011)

glasto said:


> How long have you got to save for college? Will you be working while at college and do you have to save up for living expenses or just fees?


 

Working full time i'd have to pay part of the fees by September but they give you until around January to pay the remainder, just fees.


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## glasto (7 Apr 2011)

Danielle24 said:


> Working full time i'd have to pay part of the fees by September but they give you until around January to pay the remainder, just fees.



Ok, so say you have to pay half in Sept, you have five months to get €1500 saved, so you need to be budgeting at least €300 a month. Actually more as you have to pay the remaining €1500 in three months, so really you need to be saving closer to €400pm. That's pretty tight given your other debts, as you haven't included lots of stuff in your budgeting. Although depending on how safe your shares are you could use them to pay off the second tranche of fees.


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## Danielle24 (7 Apr 2011)

glasto said:


> Ok, so say you have to pay half in Sept, you have five months to get €1500 saved, so you need to be budgeting at least €300 a month. Actually more as you have to pay the remaining €1500 in three months, so really you need to be saving closer to €400pm. That's pretty tight given your other debts, as you haven't included lots of stuff in your budgeting. Although depending on how safe your shares are you could use them to pay off the second tranche of fees.


 

My shares have been at over 3 times the price I paid for over 2 years. I'm guaranteed to get the money I invested back, €1,800. After I pay the first half of my fees I can claim €300 back in tax and the same amount by the second half, they offer discounts for people who pay in advance and the full amount so might see about doing that.


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## Mucker Man (7 Apr 2011)

Remember you will have CGT liability for profit made on you Shares of 25%, if the profit is over €1270 (I think)


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## Danielle24 (7 Apr 2011)

Mucker Man said:


> Remember you will have CGT liability for profit made on you Shares of 25%, if the profit is over €1270 (I think)


 

Thanks Mucker Man I was wondering how much the CGT was.


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## so-crates (8 Apr 2011)

Danielle24 said:


> Wages - €2115 pm
> 
> *Bills:*
> 
> ...


 
Hi Danielle there seems to be a great gaping hole in your pocket as I am not reconciling how you are €665 in the red on your current account (your overdraft) with your outgoings and your income. My calculations are as follows 
Notes
- I have taken the largest figure if you gave more than one
- For the expenses given weekly I have calculated a monthly expenditure using 52x/12)
- I have rounded up to the next whole Euro in each case.

Income per month:
€2115


Outgoings per month:
Rent: €400
AIB Loan: €134
CU Loan: €200
R&S Loan: €50
Car Loan: €180
ESB: €50
Bins: €24
Internet: €30
Petrol: €260
Food: €174
Parking: €18
Tax: €27
Dental Insurance: €10

Giving you a grand total of €1557 pm

So I guess Protocol's question needs to be answered. Is your income of €2115pm before or after tax?

If it is before tax then you need to look at how you view your money - you are not counting income tax and PRSI as valid expenses.
If it is after tax (which is what I am assuming!) then there is a sizeable chunk of money there unaccounted for. If you have been constantly dipping into your overdraft to the tune of €665 then it is more than €1200!

I think you need to start monitoring your spend - clearly you are spending money unawares (also probably check all your pockets and purses for gaping holes in the bottom - money well spent on replacing those  ). Until you get a full idea of what it is you are spending you really cannot know how to proceed. Start there.

Also I noted that you have 



Danielle24 said:


> Car Insurance - Paid until July


July is not all that far away - you should be averaging out the cost of insurance over the year rather than waiting for it to jump out at you.


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## Danielle24 (8 Apr 2011)

so-crates said:


> Hi Danielle there seems to be a great gaping hole in your pocket as I am not reconciling how you are €665 in the red on your current account (your overdraft) with your outgoings and your income. My calculations are as follows
> Notes
> - I have taken the largest figure if you gave more than one
> - For the expenses given weekly I have calculated a monthly expenditure using 52x/12)
> ...


 

It's a different current account with the OD. I pay my car insurance monthly it's just finished now unitl July. It was €52 per month, so will be less in July.

I didn't see Protocols question? My income is after tax and i've just got a small payrise


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## so-crates (11 Apr 2011)

Danielle24 said:


> It's a different current account with the OD.


So in essence this is an account that is always overdrawn to the tune of €665? That is a very expensive small loan you have there.



Danielle24 said:


> I pay my car insurance monthly it's just finished now unitl July. It was €52 per month, so will be less in July.


It is immaterial whether it is finished until July - if you have to pay it over the year you should include it in your expenses. It all adds up.



Danielle24 said:


> I didn't see Protocols question? My income is after tax and i've just got a small payrise


 
Well if your income is after tax then that means that you ought to have €558 left over each month!! So in two months you should have cleared your overdraft. You are spending money somewhere and not recording or reporting it here. Where is the hole in your budget?


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## Danielle24 (11 Apr 2011)

so-crates said:


> So in essence this is an account that is always overdrawn to the tune of €665? That is a very expensive small loan you have there.
> 
> 
> It is immaterial whether it is finished until July - if you have to pay it over the year you should include it in your expenses. It all adds up.
> ...


 

There's no interest on the OD as it's a student account. Yeah I was only thinking about that the other day €558 is a lot of money to be blowing each month, I think i'm gonna withdraw my wages at the start of the month and seperate each expense into envelopes, lazer card is a killer.


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## fraggle (11 Apr 2011)

Hi Danielle,

Working with cash is an excellent idea. Best of luck.


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## Danielle24 (11 Apr 2011)

*


fraggle said:



			Hi Danielle,
		
Click to expand...

*


fraggle said:


> *Working with cash is an excellent idea. Best of luck.*





D'ye think?


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## so-crates (11 Apr 2011)

People have an innate bias when it comes to cash. You are simply more conscious of the expenditure as it is physically in front of you - it is more immediate, tangible and palpable. Using debit and worst of all credit cards hides your expenditure from you. Both allow you to spend without seeing actual cash being handed over but a credit card allows you to spend next month's money without seeing it being handed over. Also, people are more inclined to spend if the cash is in smaller denominations - no-one likes to break a fifty but they don't bat an eyelid with five tenners.

Got to play the psychology of money with yourself.

It is good that the overdraft is interest-free - but it is unlikely to always be interest-free and I assume like all overdrafts you have to have it cleared. Best off not using the facility if you can at all avoid it - by the sounds of your budget that should be possible.


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## fraggle (11 Apr 2011)

Danielle24 said:


> D'ye think?



I'm not sure what you are saying?

I was being serious. The best thing anybody with budgeting problems can do is to switch back to using cash for everything.


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## Danielle24 (12 Apr 2011)

fraggle said:


> I'm not sure what you are saying?
> 
> I was being serious. The best thing anybody with budgeting problems can do is to switch back to using cash for everything.


 

I know you were, just not used to hearing the words, excellent idea and money in the same sentence when It comes to my financial ideas


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## Danielle24 (12 Apr 2011)

so-crates said:


> People have an innate bias when it comes to cash. You are simply more conscious of the expenditure as it is physically in front of you - it is more immediate, tangible and palpable. Using debit and worst of all credit cards hides your expenditure from you. Both allow you to spend without seeing actual cash being handed over but a credit card allows you to spend next month's money without seeing it being handed over. Also, people are more inclined to spend if the cash is in smaller denominations - no-one likes to break a fifty but they don't bat an eyelid with five tenners.
> 
> Got to play the psychology of money with yourself.
> 
> It is good that the overdraft is interest-free - but it is unlikely to always be interest-free and I assume like all overdrafts you have to have it cleared. Best off not using the facility if you can at all avoid it - by the sounds of your budget that should be possible.


 

Cool thanks for that. I don't use it I just haven't got my act together to pay it off.


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