# 30yr old wanting to get finances in order to start saving



## mel.b (31 Aug 2009)

Any advice & suggestions would be greatly appreciated.

*Age:* 30
*Spouse’s/Partner's age:* NA

*Monthly income after tax:* €2760


*Type of employment: *Health professional in public system

In general are you:
(a) spending more than you earn, or
(b) saving?
Neither - would be neutral at the moment - obviously would like to save more!

*Rough estimate of value of home: *NA. Renting a room for €270p/m

*Other borrowings – car loans/personal loans etc*
_Personal loan in Australia:$10000 AUD_ (~€5880). Paying $520AUD p/m. 21months left outstanding on loan. Interest rate 14.59%
_Credit card in Australia:_ 6700 AUD outstanding (~€3930) Paying $200p/m. (min. monthly $140) Interest rate is 17.99%
_Personal loan in Ireland:_ €770 remaining. Paying €190 p/m, due to be repaid in Dec of this year. 
_Credit card in Ireland: _€1500. Paying on min. monthly due (around €45)

*Do you pay off your full credit card balance each month?* No
*If not, what is the balance on your credit card? *€5430

*Savings and Investments:*
Nil

*Do you have a pension scheme? *
Yes, one in Australia and one here in Ireland provided by my employer.

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

*Ages of children: *
Nil

*Life insurance:* 
Nil


*What specific question do you have or what issues are of concern to you? *
I really want to start saving to buy a house in the next few years. I'm sick of renting and want my own house that I can decorate and do what I want to it. I'm not sure of my long term plans in terms of either staying in Ireland or moving back to Australia, but for the next 4-5 years I am planning on staying in Ireland. I have recently been made permanant in my job here. Obviously I wouldn't buy in Ireland if I do decide to move back to Australia, but would keep the money in savings so I can buy upon my return Australia. 

I don't go out a lot, smoke or drink or spend money on clothes so my biggest expense other than normal living would be travel. The opportunity to travel is one of the reasons I moved to Ireland and it's not something I want to give up. Therefore I currently have about €400 p/fortnight available to save. I have tried saving this entire amount all at once but inevitably end up using it and don't end up saving everything. I've now realised I'm trying to save too much at once to start with, so I am going to change and start saving €100 a fortnight for the first few months to get used to the habit. 

I am currently transferring €700 p/m home to Australia to pay off the debts there. I would love to get them paid off ASAP, and even though I know it doesn't make sense to have savings while you have debt, I can't bear the thought of going on for much longer without saving a single cent. 

What I am wondering if it is worth my while doing, is once my personal loan here in Ireland is paid off (and i could pay it out early without penalty), is it worth getting a new loan for around €9000 or 10000 and paying this off in 12 months. With the €700p/m + €190pm that I am currently paying in loans anyway I am not having to pay out any extra, yet it gets those debts paid off faster (the personal loan saving almost 12months in interest, I don't want to think how long the credit card would take at the current rate I am paying it) and it also still allows me to save some money. The alternative would be to direct as much of the €400p/m home to Australia to pay the loans off faster but then it doesn't give me anything to save. Then in 12months time I would potentially be able to save €1600 - 1700 a month which would give me a good start to saving for a deposit.

Am I crazy in doing this (taking out the new loan) or does it make sense to you? Any ideas, thoughts & suggestions would be great.

Mel.b


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## WaterSprite (1 Sep 2009)

It makes sense to me to take out a new loan if (i) you can get one and (ii) you can get one at a lower rate than you are currently paying (which has to be possible!) and (iii) you pay the same amount off that loan as you are paying at the moment (i.e. overpay to clear it quick-smart).  Those interest rates are eye-watering!

I'd pay off your loans before saving.  Ask the banks here for a personal loan; you should be able to get one for max 10% p.a.  Then be ruthless in paying it off and you'll see yourself clear to save quicker.  Your loans total about €9.5k - if you pay that off, even at €600 a month, you're looking at about 18 months to be totally clear.  Also try to clear your credit card bill asap as that will be at a similar interest rate to your Aussie loans.

€2760 is a good take-home wage for someone with rent of only 270 per month.  You should have at least €1k a month to put against those loans.  That means, if you can consolidate, you could be rid of them within a year.


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## spursman (1 Sep 2009)

just a quick post to tell you what its possible to do on your wage.

i earn about 2750 a month also, mortgage is 560 per month and i save 1k a month. so its possible, knuckle down and you can do it


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## mel.b (1 Sep 2009)

Thanks for the advice. I thought it made sense to get a new loan but wanted to make sure. Those interest rates are eye-watering but  they are pretty standard for personal loans and credit cards in Australia.

Also Spursman, thanks for your comments. It is good to hear from someone on a similiar wage, paying a mortgage and saving. As you said, it is very possible...I just need to knuckle down and actually do it!

Finally, when I approach the bank about a new personal loan, do I let them know it is to pay off loans in Australia or do I give them another reason

Cheers,
Mel.b


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