savings - how much

Saw a financial advisor (Alvin ???) on TV before and he used recommend that everybody aim to have three months salary saved just in case they should lose their job.
 
ft5j60j said:
sorry whats capital appreciation?
Click to expand...

It's the return on your investment. For pure savings it's just the interest paid. For shares or property it's the increase in value.

Judging from the posts demoivre dug up you've kept it in savings and have been earning at a fair pace.
 
Now i understand :) get just interst from savings no property yet! save at a fast pace!
 
Building a house for cash no mortgage :)

or just take out a loan rather than a mortgage ...

and then start again
 
ft5j60j said:
Building a house for cash no mortgage :)

or just take out a loan rather than a mortgage ...

and then start again
Click to expand...

Are you having us on? You'd take out a (presumably unsecured) personal loan to pay for a house?

That's a rather conservative approach to risk. :)

Better to take out a manageable mortgage and then make loads of extra repayments to reduce the principal and minimise the interest bill. Then sit back with the reasonable expectation over several years of some worthwhile "capital appreciation" on the total value of the house.
 
As above - if you mean an unsecured loan then that makes no sense compared to a mortgage secured on the property and most likely at a much lower rate of interest. Apart from the relative interest costs, why would you not exploit the fact that you can "leverage" here by securing a mortgage on the property?
 
"Multiply your age times your income, and divide by 10. That should equal your net worth -- all you own minus all you owe."

Based on the above I should be worth 196,000, based on the same, I'm actualy worth 169,000 not doing to bad for a 28yr old :)

I hope to do the same as you ft5j60j, just I'll get a mortgage if needs be not a personal loan.
 
ein said:
Based on the above I should be worth 196,000, based on the same, I'm actualy worth 169,000 not doing to bad for a 28yr old :)
Click to expand...

The whole point of this particular formula is that it's age independent. You're close, but below the expected value. :(
 
I reckon my self and EIn have good savings for out ages?

Ein do you own a car/ house rent?
 
At 26 I was out of college a few years and was on the equivalent of €27k unadjusted for inflation (I've got a photocopy of the P60) and had about €10k saved up. Which I then spent most of on a car. Pay has increased a lot since then :D and I got some sense so I'm well ahead of the formula now.
 
You must log in or register to reply here.
Back
Top