Noor77's personal budgeting thread

Re: Change in Circumstances - new budget needed!

Noor77 said:
...lodger leaving after 3 years. I don't intend to get anyone else in. Hopefully anyway.
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Seems gone.... so good work there at least. Wish all landlords were as soft hearted as you had been, it'd save most of us a fortune!

If you do want genuine help from some of the excellent sources here on AAM I'd arm them with as much data as you can. All loans, rates, debts, savings, etc. would be needed for them to make meaninful suggestions. (as always, its no substitute for professional advice, but it can be a good starting point to get you thinking)

As CM points out, your finances seem to be quite healthy with more than enough "living" expences available each week. There seems no reason for you to suffer from any financial problems.... as long as you stick by the putting your CreditCard away.
 
Re: Change in Circumstances - new budget needed!

ClubMan said:
What are your outstanding CC debts and interest rate applicable?
Do you have other debts or savings/investments?
What other information (if any) is missing from your budget outline above?
You haven't explained why €341 "spare" p.w. (or €280 after deduction of €60 savings towards €6K in two years) is "not much".
If your lodger is not paying his/her way have you decided to get rid of them (I haven't read the other thread)?
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No visa debt. No other debts, apart from mortgage. No loans or overdrafts etc...
The "€341" a week has to cover groceries, public transport, "social expenditure" etc....

Lodger going at the end of the month.
 
Re: Change in Circumstances - new budget needed!

Satanta said:
as always, its no substitute for professional advice, but it can be a good starting point to get you thinking
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I totally agree.
 
Re: Change in Circumstances - new budget needed!

Noor, has much else changed since last year apart from the lodger moving out? Not to get back in to the mammoth thread that was about budgeting etc. which you posted last year, but roughly how much (based on the last 6 weeks say) have you spent each week on groceries, transport and social spending? Have you calmed down on the birthday present spending?! Are you still doing your course?
 
Re: Change in Circumstances - new budget needed!

The "€341" a week has to cover groceries, public transport, "social expenditure" etc....
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Many, many families with children have to pay rent, food, heat, and everything else out of less than that Noor, it is a decent amount of money.

If you're serious about budgeting and/or saving for home improvements, you could make some major cutbacks while still having a decent standard of living.

As far as I can see, there is only one fixed element without any flexibility at all there, and that's transport (assuming you don't count taxis as being public transport!).

How much do you spend on groceries? Can't/shouldn't be all that much for someone living on her own - again, assuming you don't consider bottles of wine to be groceries!

How much do you spend on socialising/entertainment? I know many people who think nothing of burning through at least €100 on a pretty average night out - do you spend this sort of money? I have friends who go to the cinema every single week - guts of €20 just for tickets, excluding food and drinks before/during/after - they can easily spend €30 a head (usually they view going to the cinema as 'saving money' that they would otherwise drink!!).

If you really tried, you could easily save at least €100 per week - if not a good deal more.
 
Re: Change in Circumstances - new budget needed!

Well, seems to only be a few areas to look at....

Income: €630 - Healthy, are you maximising tax benefits etc to make the most of the pay? Mortgage relief, flat rate expences, pension contributions.... etc. The key posts in Taxation is as good a place to start as any.

Mortgage: €850 per month - Are you getting the best deal possible? Look into the possible benefits of switching mortgage and the associated costs... you may already have a very good deal, but never hurts to check. Again, the key posts in the mortgage section should help bounce some ideas around.


Gas & ESB: €150 per month, combined
SSIA: €254 - Very little you can do to reduce either of these

To make meaningful impacts you'd need to change your level of income (seek a raise, additional income, rethink the renting of the house [this time at a price your happy with and covers all associated costs and compensates you fairly for having to share your house]) or your level of expences.....
I still think €341 is more than enough to provide for travel, food and leisure combined with the €60+ you hope to save..... but until recently I was still a student so maybe thats the difference :p

Have you taken into account the maturing of your SSIA providing you additional savings to be made toward the €6000.....
Your in the habit of saving the SSIA ammount, so you can easily continue to feed this ammount into a savings account. This, combined with the additional savings you may be able to start now, should help you reach your target.
 
Re: Change in Circumstances - new budget needed!

Satanta said:
Mortgage: €850 per month - Are you getting the best deal possible? Look into the possible benefits of switching mortgage and the associated costs... you may already have a very good deal, but never hurts to check. Again, the key posts in the mortgage section should help bounce some ideas around.
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Also - are you claiming/obtaining the maximum owner occupier mortgage interest tax relief possible? Are you on the best deal for home insurance and mortgage protection life assurance and not taking out other unnecessary insurances (e.g. mortgage repayment protection)?
Gas & ESB: €150 per month, combined
SSIA: €254 - Very little you can do to reduce either of these
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There may be scope for reducing the Gas/ESB charges depending on use patterns, energy efficiency of the house etc. If the hot water tank and/or attic are not insulated then doing so now would recoup the cost very quickly and save money going forward.
 
Re: Change in Circumstances - new budget needed!

I spend about €140 a week on groceries and the rest of the "€341" on transport and socialising.

The only thing that has changed in the last year is that my net weekly income has gone from €500 to €630. So really, you would imagine that I should be able to save the difference of €130, as it was money I did not have before. But I seem to spend what I have. I think money burns a hole in my pocket
 
Re: Change in Circumstances - new budget needed!

Hi Norr77,

Sounds like you need to start writing everything down so you can see where that extra money is going. Youd be surprised on the things youll find you can cut back on (ie coffees or magazines etc)

good luck
 
Re: Change in Circumstances - new budget needed!

How much per week on necessary transport - ie getting to and from work?
How much per week on your course (or are you including this elsewhere?)
Are you on any medication that the costs have to come out of the 341?
Do you have a mobile phone - again, does this come out of the 341?
Is the 140 per week on groceries just for you, or is it for 2 people? Does it include wine, presents, cards, knick knacks for the house etc.? 140 would seem a lot to me for just food.
I have approx 230 per week to spend after the essentials, and it usually works out ok, unless I have to go to the doctor or something goes unexpectedly wrong with the car.
If you say money burns a hole in your pocket, why not set up a direct debit to take 100 e a week out of your account on pay day and put it in to an account which you don't have easy access to?
 
Re: Change in Circumstances - new budget needed!

Not to get back in to the mammoth thread that was about budgeting etc. which you posted last year
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Which is exactly what is happening. Read back over that extremely long thread for detailed budgeting advice (and actually use it this time!).

Money does not 'burn a hole in your pocket' Noor, you spend the bloody stuff.

Do you honestly spend €140 p/w on groceries? You must do all your shopping in M&S or Donnybrook Fair!

You spend €200 per week on travel and socialising. So you spend about €20 per week on travel and €180 on socialising.

Ever think of staying in the odd weekend? You cannot save without making some sacrifices.

Really, you should be able to get back to the lifestyle you had before your pay increase - that would save you €130 p/w straight away. You'd have your €6,000 saved in less than a year.
 
Re: Change in Circumstances - new budget needed!

Hey Norr77,
Spending usual does expand to take up all the available funds, your far from alone on that count. If you didn't have your current SSIA savings that too would easily become part of the monthly spend.

Could be worth doing a very detailed budget for a couple of weeks to give yourself a better idea where its slipping away too. Could some money be saved purchasing long term travel tickets (your company may provide this from payroll allowing additional savings - many have incorporated things like this as part of EMS's and ISO14001)?
A huge saving can be made on adjusting leisure spending.... you can have as good a night out (or in) on €30 as you would spending €80+, just takes a more disciplined approach.

Its not easy to make huge changes in one drastic step, but if slowly over time you adjust your spending to provide a little more funds towards saving it'll become second nature.
Using high interest accounts (such as Rabo) which don't have clauses for removal of funds to set aside savings as soon as your pay check arrives and remove the temptation to spend can be very helpful. You then still have access to the money should you NEED it.

The most basic point here is that you should do what suits your lifestyle and your needs. Its very easy for people to say spend less, save more etc. but its your choice to put your hand in your wallet and part with money. By doing out the detailed budget over a few weeks you'll be able to see exactly what you have coming in and going out. You'll also be able to put a figure on what you can possibly save.....
Thinking about making that figure smaller each time you make an impulse buy may help you reduce the needless outgoings. Everytime you reduce the saving, your a step away from reaching that €6000 goal.
 
Re: Change in Circumstances - new budget needed!

Thanks a million for all your advice Satanta. You are extremely helpful and informative :)

I will let you know how I get on next month!
 
Re: Change in Circumstances - new budget needed!

casiopea said:
Hi Norr77,

Sounds like you need to start writing everything down so you can see where that extra money is going. Youd be surprised on the things youll find you can cut back on (ie coffees or magazines etc)

good luck
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Yes - good advice - but I think that this was suggested to Noor77 last year in the aforementioned epic thread (which I can't seem to find now) so I can only assume that she never acted on the advice. If I recall correctly several people independently pointed to the usual recommendations and resources for budgeting, money management etc. so it's a little like deja vu here as far as I can see.
 
ClubMan said:
Thanks - I've merged the two into one since they are basically on the same issue.
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I stand chastised Clubman.

Yes, I am very stupid with money.
You can delete the thread if you would like.

I won't bother the forum any more!
 
Re: That's where it goes

"If one only wished to be happy, this could be easily accomplished; but we wish to be happier than other people, and this is always difficult, for we believe others to be happier than they are."

MONTESQUIEU
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Nice!
 
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