Blackrock1
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Youd wonder what the point of having all the money was
Youd wonder what the point of having all the money wasPersonal Balance Sheet is the measure of your wealth. There was a book " Habits of a Millionaire ", probably wrong title, but the Author studied people who were by there balance sheets wealthy.
But on visiting them he found that they employed "thrift " to everything but also knew the difference of value and cost and they had low/no debt
Most were still cutting " coupons " from the local newspaper or other publications, obviously a US study.
Book was "Millionaires Mind"
Well in our case "it's there "mostly our children's education. While our income covered those outlays our quite saving, pensions etc have opened our eyes recently and our children are on their path.Youd wonder what the point of having all the money was
Slightly off topic but I hear constantly on AAM about education funds for kids . I don’t get it . Fees are circa 3k a year .18 year olds and over should be working part time to fund their social life’s . Vast majority of students are within traveling distance of a university. Why on earth are folks savings crazy amounts for the kids to go to college ?Well in our case "it's there "mostly our children's education. While our income covered those outlays our quite saving, pensions etc have opened our eyes recently and our children are on their path.
Money is only a medium of exchange and some hoard it some spend it and very few fully understand it.
I guess it’s fine if you are like us. UCD is two miles from our door. Kids went to private schools with big fees. So, them going to College actually means we are saving money.Slightly off topic but I hear constantly on AAM about education funds for kids . I don’t get it . Fees are circa 3k a year .18 year olds and over should be working part time to fund their social life’s . Vast majority of students are within traveling distance of a university. Why on earth are folks savings crazy amounts for the kids to go to college ?
Very commendable no doubt . Should be better long term student loans to facilitate such scenarios . If someone is re mortgage a house to fund college SUSI is obviously not an option for themI guess it’s fine if you are like us. UCD is two miles from our door. Kids went to private schools with big fees. So, them going to College actually means we are saving money.
It’s a different story if you are from Donegal, Kerry or Mayo and your kids want to do the same course. Accommodation costs are a killer. In my job I sign off on remortgaging applications for folk (in their 50s) from these counties who are borrowing to put their kids through Third Level. A hard ask and fair play to them.
you could buy an income producing asset with the proceeds or invest it in the stock market , it would not be that difficult to put the money to work and derive an income from a sum like thatWould it? For someone under 55, a €2m sale of land would equate to circa €1.5m-€1.7m after CGT. If average life expectancy at age 52 is say 87, they have 35 years left and their main asset and source of income is gone. €42k-€48k p/a ain't exactly the equivalent of large salary especially when inflation is counted.
Agreed but Mammy did all that part time work, lived in damp flats , got out with a PhD....and decided not to let her/our children suffer the same.Slightly off topic but I hear constantly on AAM about education funds for kids . I don’t get it . Fees are circa 3k a year .18 year olds and over should be working part time to fund their social life’s . Vast majority of students are within traveling distance of a university. Why on earth are folks savings crazy amounts for the kids to go to college ?
Why? Apparently its €3k a year in college without Grant's. Who needs to remortgage a home to facilitate a 3rd level education in Ireland?Very commendable no doubt . Should be better long term student loans to facilitate such scenarios . If someone is re mortgage a house to fund college SUSI is obviously not an option for them
So, why are they sending their children to 3rd level?I guess it’s fine if you are like us. UCD is two miles from our door. Kids went to private schools with big fees. So, them going to College actually means we are saving money.
It’s a different story if you are from Donegal, Kerry or Mayo and your kids want to do the same course. Accommodation costs are a killer. In my job I sign off on remortgaging applications for folk (in their 50s) from these counties who are borrowing to put their kids through Third Level. A hard ask and fair play to them
Google is your friend Paul.Why? Apparently its €3k a year in college without Grant's. Who needs to remortgage a home to facilitate a 3rd level education in Ireland?
In the US its different but this is Ireland.
What's SUSI?
But country people are quids in on much cheaper outlay on mortgages compared to Dubliners. But they don't put away the difference in their lesser mortgage payments to soften the blow of putting their kids through college "up above" in Dublin. So I dont have much sympathy for country folk when they moan about outlay for their kids for Dublin accom etc. Its tough but so it is for a Dub paying a Dublin property morgage for 20-25 years.My friend has four children.
He tells me about the college costs.
During the highest cost year, three of four were in college at same time, all in Dublin I think.
That year cost him 41-42k.
9k in fees plus 3x Dublin accomm bills.
No he's not. The rules are different for farmers.Farmer sells land for a few million. He's a multi millionaire.
But he's not rich?
" lifestyle creep "To go back to the original point; I think a lot of people are guilty of lifestyle creep. If you can possibly afford it you should get it.
That coupled with very effective marketing and well trained sales people; you may end up buying the Audi when the Skoda did everything it could do, and met all of your needs. Then if we can afford the nice Audi why not get the Mercedes? May as well get the 19 inch tyres and leather seats etc.
Then the method of payment is swiping a card or doing an online transfer. If you have to go to the ATM or bank and physically saw the €100,000 you had to hand over for the fancy car, I think most people would pause and have a reality check.
But to each their own....
Some people like fancy clothes. Some people shop in Michael Guineys. Some have several expensive watches, some have a swatch, some use Nivea, some use Clinique.
I have to earn around €166 to pay for something that costs €100. I would not buy a €166,000 depreciating asset that is guaranteed to be worth nothing in time (classic cars excepted here)....
Not always the same earning power in the country in the first place so no excess to put away. I worked in lending not in major cities or big town, mainly small town and rural customers. Anyway when sent on training courses to Dublin it always fascinated me the salaries that were pre populated on sample income certs for mortgages. I remember in particular a salary of 70k (many years ago) that training companies either in house or external thought was 'average' on a mortgage application! In my day to day experience I would seldom have seen that figure as a joint income not to mind sole income especially from employees.But country people are quids in on much cheaper outlay on mortgages compared to Dubliners. But they don't put away the difference in their lesser mortgage payments to soften the blow of putting their kids through college "up above" in Dublin. So I dont have much sympathy for country folk when they moan about outlay for their kids for Dublin accom etc. Its tough but so it is for a Dub paying a Dublin property morgage for 20-25 years.
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