Heading into our 40's Zero Savings

ClubMan said:
Maybe it's not the central issue here, but the mortgage figures seem very confusing, and possibly incorrect to me (as they seem to be to @LS400?).

You borrowed €405k at the start of 2008 on what seems to be a 38 year term and the balance has only dropped to €335k after 15 years? Seems strange to me. I would've expected the capital balance to be lower assuming rates of < 5% to date?
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Please see attached drawn down in 2008 and topped up then also to finish the build so €308k plus €100k have listed out exact statement switched and combined both in Jan 2021 and added €20k for some home improvements.
 
gnf_ireland said:
@Jollyman
You have said that short term cashflow is the main issue, esp after Santa and your wife on maternity leave.
As suggested by others, the first two things you should do is pay off the car loan and credit card from the 35k savings - both are likely to be high interest and by doing this you remove the interest payments. Think of it as a 2-5 year interest free loan if you want, and pay it back in once your wife is back working

Secondly, work out what your after tax income should be (no shortage of online calculators) - and check if you are jointly assessed [this may be useful for you if you wife has not been earning]. Also keep a tight track of what you spend money on for the next 2 months, and you will be amazed where some of it goes. Only then will you really put a proper budget in place - and try and stick to it

But as others said, you are not in a bad place, just cashflow is tight, and you have liquidity in the 35k that you need to use to aid better financial decisions. Ignore the other conversation on the other thread - this supersedes it !
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Is it ok to post tax credits cert here for comment or review?
 
It looks like your chipping approx 10k on main loan and only 2k per year on the €100k top up, that’s crazy on your income, also, what’s with 2019 missing?
 
LS400 said:
It looks like your chipping approx 10k on main loan and only 2k per year on the €100k top up, that’s crazy on your income, also, what’s with 2019 missing?
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Paying as per the advised charges have never overpayed
 
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Jollyman said:
Yes we are see attached
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You can reallocate the tax bands so you have 49k for 2023, so more of your income will be at lower rate, it'll help the cashflow, but not make any net difference to the year if your wife earns over 31k. You can do it online, and your employer will receive updated details for next payroll.

What was your wife's income in 2022? You might be due a decent tax refund.
 
RedOnion said:
You can reallocate the tax bands so you have 49k for 2023, so more of your income will be at lower rate, it'll help the cashflow, but not make any net difference to the year if your wife earns over 31k. You can do it online, and your employer will receive updated details for next payroll.

What was your wife's income in 2022? You might be due a decent tax refund.
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Her income gross for 2022 she only worked until start of march so approx €10k
 
RedOnion said:
Her maternity benefit was also taxable, but you're due a chunky enough refund based on the way credits / bands were split.
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And that credit will be decided by us completing tax returns I assume and these should be done when? Thanks so much for the help and advice
 
Between 2013 and 2022 the ECB rate was low, 1% or less.

Yet your mortgage rate was 3.7% to 4.58%.

That seems like a relatively high mortgage rate?

That seems to be part of the reason the capital balance is not reducing?
 
Protocol said:
Between 2013 and 2022 the ECB rate was low, 1% or less.

Yet your mortgage rate was 3.7% to 4.58%.

That seems like a relatively high mortgage rate?

That seems to be part of the reason the capital balance is not reducing?
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Yes we were young and naive mortgage with EBS Didn’t know what a tracker was and from memory was never presented as an option.
 
Have you looked at the National Childcare Scheme if children are in a registered provider? Might make a saving there.

500 on children's activities - i presume swimming lessons, a good investment. I find there is pressure to have children signed up to everything and it's expensive in terms of time aswell as money. Worth thinking about.

Children go through clothes and toys. Lots of people clearing out things and would be happy to give them to you. I gave car seats and a cot to a colleague lately and he gave me a voucher for a sports shop for my crew. We both saved.
 
RentingD said:
Have you looked at the National Childcare Scheme if children are in a registered provider? Might make a saving there.

500 on children's activities - i presume swimming lessons, a good investment. I find there is pressure to have children signed up to everything and it's expensive in terms of time aswell as money. Worth thinking about.

Children go through clothes and toys. Lots of people clearing out things and would be happy to give them to you. I gave car seats and a cot to a colleague lately and he gave me a voucher for a sports shop for my crew. We both saved.
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Yes have looked at that, our provider is not registered but the savings are not enough to entice us to move away from a resource the kids love and is convenient and flexible for us.

Activities swimming lessons x 2 gymnastics x2 Irish dance x 1 taekwando x 1 zumba and zumbini x 1 each soccer x 2 GAA Yearly membership.

We have toys coming out our ears and kids want for nothing only grandkids on both sides of family so overly splashed out on but we are trying with years to discourage toys for birthdays and Christmas etc. another point we have two birthdays the first two weeks of Jan which compound the toys issue. We have gotten yearly membership to fota and to a local pet farm this year instead from family which makes more sense and presents of clothes so making progress.
 
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