Is is possible to rent AND save?

dropstar

Hi there

I'm a 26 year old guy, holding down a secure job at the moment. I live at home and pay 450 P/M in rent to my mam. I'm considering moving out and renting, but I'd also like to save if possible, for a mortgage deposit in the future. My net monthly salary is about €2100 and I was looking at apartments which rent for about 800 per month. Saying all that, I'd like to maybe save 400 per month (4,800 per year) .

There is a possibility of a raise this year, although I haven't gotten one (or a review) since I started my job two years ago, and I'm informed both online and offline that I should be expecting a lot more money given the sector I work in (software development) and my experience. So I'm hopeful that I can save more as my salary increases.

Is this reasonable, in your opinion?

Thanks

Paulw

If you're good with your money, of course it's possible to save. Many people do it. I did it.

It's all down to how you live your life and how you spend your money.

who_ru

a good way to do this is to set up a direct debit every month, say 400 euro, into a high interest account that doesn't allow you access it so easily.

Mr. Loverman

You should be able to save about 800 per month.

2100 - 800 - 800 = 500 left to live on.

Maybe you'll need more than that if you love going out boozing, but absolutely saving 400 per month should be easy.

who_ru

500 euro per month to live on? add up transport costs, energy costs, food and 500 euro per month is very little indeed to live on.

Mr. Loverman

who_ru wrote: »

500 euro per month to live on? add up transport costs, energy costs, food and 500 euro per month is very little indeed to live on.

I live on 500 per month.

It's very easy.

Just eat well and don't waste money in the pub.

Gerry Asstrix

From my experience its impossible or will take a very very long time to save for anything of expensive value and in regards a buying a property with economy way it is you'll never know for sure if you can ever afford a house nor get approved for mortgage in the future

I dont drink, smoke and shop in Lidl and have never been able to save a penny renting, even when my partner was working

Mr. Loverman

Gerry Asstrix wrote: »

From my experience its impossible or will take a very very long time to save for anything of expensive value and in regards a buying a property with economy way it is you'll never know for sure if you can ever afford a house nor get approved for mortgage in the future

I dont drink, smoke and shop in Lidl and have never been able to save a penny renting, even when my partner was working

You probably need a better job so!

I rent and save quite a lot of money every month.

Gerry Asstrix

Mr. Loverman wrote: »

You probably need a better job so!

I rent and save quite a lot of money every month.

Im unemployed now, so any money I saved was pointless as its all gone now.

What are you a banker? developer?

Mr. Loverman

Gerry Asstrix wrote: »

Im unemployed now, so any money I saved was pointless as its all gone now.

What are you a banker? developer?

IT guy.

ztoical

who_ru wrote: »

500 euro per month to live on? add up transport costs, energy costs, food and 500 euro per month is very little indeed to live on.

If the OP is single then 500 is very easy to live off, I've lived off a hell of a lot less. I rent and save each month no problem.

bladebrew

im also 26 and paying a similar amount in rent, i dont manage to save much a month at all, although i drink and smoke and have a car, those 3 things together can cost hundreds a month,
if the op dosent smoke or drink and walks everywhere he could definelty save €400 a month, or more i would think,
it really depends on lifestyle,

who_ru

what about insurances - do you pay them? i do. car insurance, private health, contents insurance etc. i prefer to have these. i am not in a position to walk to work or get a bus. it's on the outskirts of the city.

Kimia

I'd be really interested to hear how people live on 500 a month - Mr Loverman could you give a breakdown? I'm genuinely curious - do you not go out with your friends for a drink now and then? Is it literally just food and transport you spend your money on?

Tech3

I think the main issue here is the actualy renting cost, 800 euro is normal in Dublin but outside of it can be incredibly cheaper. Also if the OP is paying directly 800 and not sharing with another person then saving becomes inceasingly impossible. And yes it's all about lifestyle choice.

How much are you saving by renting at home for 450 a month?

ztoical

Kimia wrote: »

I'd be really interested to hear how people live on 500 a month - Mr Loverman could you give a breakdown? I'm genuinely curious - do you not go out with your friends for a drink now and then? Is it literally just food and transport you spend your money on?

I've lived on 500 a month and have a fine social life. Food costs are low as I make a giant pot of yummy soup on a sunday evening [I'm veggie so the soup was just packed with every veg you can think of, purchased locally and costing no more then 5 to 7 euro total for the whole pot depending on what vegg I got that week. I'd get around 10 bowls from one pot and made for a fine meal in the evening. Monday to friday it was great as I'd be too wrecked after work to cook so just heat up big bowl of soup. Weekends might splurg and make something like veggie lasagna [would get two days from that] or the odd take away. Breakfast is cereal, lunch sandwich and fruit or wrap or salad so if I spent more the 50 quid a week on food I'd be shocked. I'm not a massive drinker and have nights out were I don't drink but that's a personal choice not a I don't have the money. I eat out maybe once or twice a month depending on if I've friends visiting or what not. Utilities are affordable as there's just me in the house and I don't waste light and power....I don't use the washing machine/dryer in the flat as I can go to the laundromat up the road and do my weekly wash and dry for 4 quid. Alot of the things people seem to spend money on I'm not into, I don't wear makeup and am not into clothes - I do go to the cinema but you can get a cineworld card to cut down on that cost, I buy dvds but shop around and spend usually 3 to 5 quid on a dvd. My bills comes to around 150 for the month, my house hold bills [food and other items like cleaning products] I'll be generous and say 200 that leaves 150 for being social which seems plenty to me but then I work alot of hours so maybe I'm just not going out as often as some, once a week I go out with friends, go dancing etc [will meet up with people after work during the week at their house/my house or somewhere for a cup of tea but I don't count that as 'going out'] so I don't get how a single person couldn't live on 500 a month.

If your drinking alot several times a week, eating out several times a week, buying lunch at work and wasting food by not planning meals in advance then yes you won't live on 500 a month [I'm taking about single people here, kids are a different kettle of fish]. Was out with friends last night and brought this question up to them and all said they have or do currently live on 500 a month or less and find it no issue.

who_ru

Tech3 wrote: »

I think the main issue here is the actualy renting cost, 800 euro is normal in Dublin but outside of it can be incredibly cheaper. Also if the OP is paying directly 800 and not sharing with another person then saving becomes inceasingly impossible. And yes it's all about lifestyle choice.

How much are you saving by renting at home for 450 a month?

800pm rent in dublin is only 'normal' because the market is tilted in favour of high rents and very few are securing mortgages. if you look at rent supplements a single person in dublin can get 529 euro pm, so that in itself sets a floor on rents. in order to secure private rental accommodation without rent allowance people are expected to pay well above this rate.

http://www.welfare.ie/EN/Schemes/SupplementaryWelfareAllowance/Pages/RentSupplement.aspx

to the OP i would tough it out for a while longer @ home.

Mr. Loverman

Kimia wrote: »

I'd be really interested to hear how people live on 500 a month - Mr Loverman could you give a breakdown? I'm genuinely curious - do you not go out with your friends for a drink now and then? Is it literally just food and transport you spend your money on?

I use food properly (e.g. if I buy a chicken it will be used for a couple of meals... pies, soups, etc.).

I socialise at parties, e.g. invite friends around for food and wine. I don't spend money in pubs because it is an utter rip off, e.g. €3 for a soft drink. What the hell.

It is easy to live on €125 per week. You just have to cut out wastage.

D1stant

Mr. Loverman wrote: »

It is easy to live on €125 per week. You just have to cut out wastage.

Wastage=life?

I'm really not a consumer, but I cant figure a good quality of life on that money in any Irish city

catbear

I think rent supplements in Dublin and elsewhere will be reduced over time thus bringing down all rents.

To the OP, wait until college breaks up for the summer at least, you'll get a better deal then than now when owners need to get anyone in to pay for their investment. Don't believe the hyped up asking prices, they're trying to get as much out of the renter so you should try to get as much out of them too. Haggle and practice walking away with a smile.

Mr. Loverman

D1stant wrote: »

Wastage=life?

No, things which are a rip off, e.g. lattes in cafes, pints in pubs, etc.

It all depends how much money you want to save.

Using the Mr. Loverman System™ you can save about 60% of your monthly wage.

ztoical

D1stant wrote: »

Wastage=life?

I'm really not a consumer, but I cant figure a good quality of life on that money in any Irish city

It depends on what you mean by life...life for everyone is different. If life for you means eating out and drinking most nights in a pub then yeah thats costly but that's your choice. I've lived in large cities and small towns and my quality of life and spending wasn't effected and I think I have a great life.

My interest is art so my social life centers around that. I'm part of several artists groups that meet monthly so pretty much everyweek I've something to go to - last week was my women in comics group, this week is a comics social group meet up, there's weekly life drawing sessions and a monthly location drawing meet up at weekends. All these things are free and I've made great friends via them. There's also plenty of gallery and exhibitions to go see and if you go opening night there's free booze and food and sometimes live music as well. There's also book clubs, critique groups to talk about my own work etc etc Pretty much all the cities in Ireland have sketch groups that meet regularly - there's several run via this boards, there's a monthly comic jam in Dublin and sketch clubs in Dublin, Cork and Galway. I run a comic event every year in Dublin that takes alot of my time to put together so I'm never short of things to do.

Now I can see people saying 'ah but I'm not into comics/illustration'...well replace that with what you are into. When I lived in Kilkenny we use to go to the pub after work every day and it got really boring and expensive so some the guys put together a five a side football sessions, the few of us left not into football found out about an archery club, 4 euro for 3 hours of smashin arrows into a target we imagned several different peoples faces on and we'd arrive into the pub late in the evening and have one drink rather then several. Just look at boards, there is a forum for nearly every interest you can imagine and most have meet ups that cost nothing to go along to and if they don't then why not put something together? Get a book club or a film club together, have a cards night with friends, join a running group, join a hill walking group, list goes on and on.

shoegirl

Mr. Loverman wrote: »

It is easy to live on €125 per week. You just have to cut out wastage.

I don't know what Ireland you live in, but in the Ireland I live in a tank of petrol costs 57 euros, public transport for work is 50 euros a week. I don't see how anybody could live on 500 a month unless they were living close enough to work to walk or cycle.

I did once live on 75 a week but it was only because I had no tv, cycled to work, had a free lunch at work and shopped in the English market in Cork for half nothing and my electricity was free.

That said, I live at home, in a boxroom in my parents, and I find I can easily save 500 a month at worst, and up to 1000 a month, but largely because I've a good income.

ztoical

shoegirl wrote: »

I don't know what Ireland you live in, but in the Ireland I live in a tank of petrol costs 57 euros, public transport for work is 50 euros a week. I don't see how anybody could live on 500 a month unless they were living close enough to work to walk or cycle.

Where are you travling from/to that's costing 50 euro a week for public transport?

johndaman66

Everybodies circumstances differ so just because one can live off €500 per month doesn't mean the next can. I can live of €500 or less per month myself but thats just me. I dont smoke and am a very light drinker so that helps. Thats not to be mean about it, just personal choice as I just dont have a major taste for it. If I was to be going on benders I'd nearly pick up a box of 20 bottles for €20 or less in Dunnes or Tesco, drink at home with friends and then hit the pubs after as its nice to get out too. Its just that its hard to justify paying about €4 a pop or maybe more in a pub for the same bottle. I appreciate they need to charge a premium but that much of a premium?

My rent is also very reasonable @ €175 per month including bills and I live near work so am lucky in that aspect too. I could see how fuel costs are crippling people who need to commute to work long distances....not always an apparent way around that one but car pooling is an idea at times.

You need to be saavy in the supermarkets also. I do find it hard to justify going into one shop and just filling a trolley on a weekly basis. Competitor may very well have same product on special offer at half price of buy one get one free etc. Obviously more time consuming but if you make a trip to a few shops you could potentially save a fortune. Also keep an eye out for stuff knocked down in price as its approcahing its use by date. Sometimes shops practically give this stuff away. Chuck it on for your dinner soon after and your away in a hack!

This idea of buying lattes, roll for lunch and bottle of soft drink along with a bar of chocolate for 95 cent from Spar or Centra on a daily basis is bloody costly and adds up. I appreciate its convenient but you pay a hefty price for the convenience. A hell of a lot cheaper to make your own lunch night before and pick up a multi pack in Dunnes/ Tesco/ Lidl etc if you have a sweet tooth.

Unfortunately there are costs not so easy to get around. Motor insurance for younger people, in particular males can be crippling. If you take medication its not always cheap, no way around that one either. But there are costs as afore mentioned that can be cut and sometimes you need to think outside the box a wee bit.

By the way OP without knowing your full circumstances I think your mother charging you €450 per month rent is a bit OTT on the face of it

OneArt

What? 50 a week for public transport on work? Unless you live a grillion miles from you workplace maybe.

Just do a flat-share. I'd kill to be on two grand a month. I get probably about 180 a week, my rent is 266 a month and I still eat a lot (I think I'm getting fat actually...) and go drinking regularly. When I was working more than just weekends as I am now I was getting 300 a week and saving at least 500 a month. So if you get a place with cheap rent you should be fine.

the_syco

johndaman66 wrote: »

My rent is also very reasonable @ €175 per month including bills and I live near work so am lucky in that aspect too.

Um. €175 per month? Holy crap that's low.

johndaman66 wrote: »

Competitor may very well have same product on special offer at half price of buy one get one free etc.

A freezer is your best friend. Buy 2-for-1, stuff near best-by date, etc, and throw it into the freezer. Take it out when you need it, cook it, and eat it.

OneArt wrote: »

What? 50 a week for public transport on work? Unless you live a grillion miles from you workplace maybe.

Sounds like a weekly bus & rail ticket. Been there, done that.

=-=

It depends on how much money you want to spend on rent, and if you like sharing the place with other people?

johndaman66

the_syco wrote: »

Um. €175 per month? Holy crap that's low.

I certainly wont get much lower than that alright. Granted my bedroom is only a small box room but for the length of time I'm in it other than sleeping its adequate enough too.

the_syco wrote: »

A freezer is your best friend. Buy 2-for-1, stuff near best-by date, etc, and throw it into the freezer. Take it out when you need it, cook it, and eat it.

Call me old fashioned but I'll need to disagree with you on that one. Im far from a fussy person but just wouldn't be keen on freezing chilled meat all the same. Maybe its even a mind thing with me but its just something I'd never do myself

Tech3

the_syco wrote: »

Um. €175 per month? Holy crap that's low.

I had shared accomadation for around that price before with en-suite but eventually I wanted my own place so it's well over double that now but I get a much better standard of living for that price. It's all down to lifestyle choice really I guess.

CiaranC

Irish people seem to have a weird sense of the value of money. Having travelled for the last few years, Ive learned to live cheaply, but with a decent standard, and be able to save a few quid for my next trip.

If you pull in say a bit over 2 grand, there should be no hassle saving a good wedge of it.

400 for rent
150 for electric/interweb/tv
100 for food
50 for sundries

800 saved, maybe a grand if youre lucky

Leaves 500 left for spending.

If you cant do that as a childless person/couple, you are doing it wrong.

RedXIV

Heh heh,

Can't wait for some of ye to have kids

I'm just about living month to month and I pull in around 1750 a month with 2 kids and one on the way

But jesus I've never been happier