wannabesavvy
Registered User
- Messages
- 20
Hi Guys,
I'm just starting out now and would like to run my current situation re savings by you guys.
I'm kind of unsure about how much I should be saving each month and also what proportion should be in my PRSA and what proportion in a readily available (notice) account.
Also, when people talk about savings do they mean a savings fund that you don't touch unless you need a deposit for a house or are extremely stuck etc? Should you have a sub saving account for smaller things like holidays, car service, shopping spree etc
I know this is my first post here and mods feel free to snip this if it's inappropriate.. I'd like to give my current situation and get your guys opinions on whether it is unbalanced i.e. I need to save more or need to live more.
So, I am 26 years of age. I take home about €2,200 each month, that's after VHI BIK and pension contributions (employer + self). Combined pension contributions each month are €382.50.
My rough budget/expenses are as follows:
Rent - 565
Car Loan - 267
Living - 600
Car Running - 150
That leaves me with €618 remaining. Now, I think €500 would be a reasonable amount to save each month, that's 23% of my take home pay. Now the question is what is that saving for? Thats an annual saving of €6000. I think I should have a large amount of that left after a year logically, I would use part of that money for car tax (710) and a holidays. Part of those expenses would come out of current expenditure.
That leaves the remaining €118. From my rough budget estimates should I be spending that each month or saving it? Note that I am not the type of guy that goes boozing each weekend. I probably do that max twice a month.
A very rough calculation leaves a combined annual saving of €9000. (382.50 + 500) - 1590 (for expenses, car, holiday etc).
That €9000 is approximately 34% of my net income, evenly spread between my PRSA and deposit.
Thanks for reading, what do you guys think?
I'm just starting out now and would like to run my current situation re savings by you guys.
I'm kind of unsure about how much I should be saving each month and also what proportion should be in my PRSA and what proportion in a readily available (notice) account.
Also, when people talk about savings do they mean a savings fund that you don't touch unless you need a deposit for a house or are extremely stuck etc? Should you have a sub saving account for smaller things like holidays, car service, shopping spree etc
I know this is my first post here and mods feel free to snip this if it's inappropriate.. I'd like to give my current situation and get your guys opinions on whether it is unbalanced i.e. I need to save more or need to live more.
So, I am 26 years of age. I take home about €2,200 each month, that's after VHI BIK and pension contributions (employer + self). Combined pension contributions each month are €382.50.
My rough budget/expenses are as follows:
Rent - 565
Car Loan - 267
Living - 600
Car Running - 150
That leaves me with €618 remaining. Now, I think €500 would be a reasonable amount to save each month, that's 23% of my take home pay. Now the question is what is that saving for? Thats an annual saving of €6000. I think I should have a large amount of that left after a year logically, I would use part of that money for car tax (710) and a holidays. Part of those expenses would come out of current expenditure.
That leaves the remaining €118. From my rough budget estimates should I be spending that each month or saving it? Note that I am not the type of guy that goes boozing each weekend. I probably do that max twice a month.
A very rough calculation leaves a combined annual saving of €9000. (382.50 + 500) - 1590 (for expenses, car, holiday etc).
That €9000 is approximately 34% of my net income, evenly spread between my PRSA and deposit.
Thanks for reading, what do you guys think?