Should I be able to save more than 2k a month

letsgo2018

Im incredibly bad with money even though I earn 50k after tax a year . I drink way too much which is being kicked in the bud

My monthly fixed costs are

Rent 560
Phone 20
Esb 230 ( I paying this much because I hadn't been paying for a while)
Car including tax insurance petrol 200
Gym 20
Internet 45
Course 350. This cost is ending soon . It's almost paid
Lotto 48

Fol20

letsgo2018 wrote: »

Im incredibly bad with money even though I earn 50k after tax a year . I drink way too much which is being kicked in the bud

My monthly fixed costs are

Rent 560
Phone 20
Esb 230 ( I paying this much because I hadn't been paying for a while)
Car including tax insurance petrol 200
Gym 20
Internet 45
Course 350. This cost is ending soon . It's almost paid
Lotto 48

Why is the lotto a fixed cost. Spending close to 600 a year is an easy win. Stop getting the lotto and your not investing in it, your gambling and loosing overall.

We dont know your net income so its very hard to say. You also dont menion how much you spend on groceries and anything else you spend your money on.

advertsfox

Firstly, you can certainly do it and you don't have too many outgoings (esp. with your course ending soon) with a great salary if that is after tax.

After all outgoings, you'll be left with €173.42 a week for everything else (this ups to €260.92 a week after your course ends). I would most certainly cut that lottery cost (near €600 a year) and try and add more to the budget for food / unplanned purchases or payments.

I'm assuming you want to save for a mortgage here so that's another reason to get rid of the lottery.

NuttyMcNutty

I can hold onto it for ye so ye don't spend it as I'm great with money, not! Anyway not saying you shouldn't give up drinking but defo don't give up socializing, more money doesn't = more happy.;)

Heres Johnny

OK so you've 4166 per month after tax coming in and those outgoings are 1500 approx.

This leaves you 2500 a month although you may have underestimated your car costs, 200 all in sounds low for tax, insurance, running costs, repairs (repayments if you have any)

Course is finishing but you'll probably spend 350 a month on things you've forgotten to list, food being one

So you have that 2500 buffer still.

You need money for clothing, going out even though you've said you're knocking the drinking on the head at least cut back on it.

There's a concept called paying yourself first, this involves setting up a standing order into savings account or pension or whatever and then working away with what you have left. Simple concept, set up the transfer to save on the day after payday every month and you can't spend what you don't have ATM access to.

Start there, maybe 1000 a month and see how you get on then. If you survive the first couple of months saving 1000, increase the amount of you're comfortable.

tvjunki

There are a lot of little things that you can save on.
You need to find out where your money is going so total on your phone or spreadsheet. Maybe extreme but once you get a handle on where your money is going you will be able to work on it.

1)How much do you spend on food?
Do you take food for work and your course?It is easy to spend 10euros on take outs or lunches.
Also cut take away coffee. If you are in an office have a coffee there. I find it fascinating people getting a coffee on the way to work and can spend 3/4euros a drink. Even 5 coffees at 4euros is 20 a week. 80 euros a month! So 1040 euros per year.
Buy food once a week and top up with a few things say milk bread. If you shop daily you will definately spend more. Go to the likes of Aldi and do a big shop. If not close the down shift on brands in store. Eye level is the premium section in a shop.
Leave snacks /fruit in work so you will not be tempted to spend a fortune. Bring lunch to work.
2)Banking charges for contactless. Check what fees you are charged. Try not to do contactless as you have no way of keeping track of what you spend. Some banks charge to use the service.Take out say 100euros and use that during the week.
3) get receipts for everything and sit down once a week and see where your money goes.
4) car costs are low. You would have to pay for car wash, tyres not etc. I doubt that is included in you 200.
5) you have not put in for medical or doctor fees.
You can save more than 2k a month. I think there is a savings ssia that some banks do to help you save for a mortgage. I think Bank of Ireland does this. Worth ringing your bank.
6) lotto is high. Reduce the level until you get the money you need.

Alkers

letsgo2018 wrote:

Rent 560 Phone 20 Esb 230 ( I paying this much because I hadn't been paying for a while) Car including tax insurance petrol 200 Gym 20 Internet 45 Course 350. This cost is ending soon . It's almost paid Lotto 48

You need to do up a proper budget, not just for a month. Things like holidays which you won't cover from a single paycheck

letsgo2018

Fol20 wrote: »

Why is the lotto a fixed cost. Spending close to 600 a year is an easy win. Stop getting the lotto and your not investing in it, your gambling and loosing overall.

We dont know your net income so its very hard to say. You also dont menion how much you spend on groceries and anything else you spend your money on.

I told you I earn 50k after tax. That's my net income

letsgo2018

Yea I did a massive 25 day trip of Vietnam and Thailand recently which wasn't factored. I'm lucky to make the fantastic money I do but it just goes through my fingers . On average it's about 4k a month but last month it was 5k and this month it will be 4.5k . Some months will be 3.5k but it's never less than that. The reason I didn't factor in holidays is because I want to knuckle down and save as much as possible in the next 6 to 9 months so i won't be going on one for a while. 2k a month would be ambitious and a good goal to get to . Just wondering if it should be more

tvjunki

letsgo2018 wrote: »

Yea I did a massive 25 day trip of Vietnam and Thailand recently which wasn't factored. I'm lucky to make the fantastic money I do but it just goes through my fingers . On average it's about 4k a month but last month it was 5k and this month it will be 4.5k . Some months will be 3.5k but it's never less than that. The reason I didn't factor in holidays is because I want to knuckle down and save as much as possible in the next 6 to 9 months so i won't be going on one for a while. 2k a month would be ambitious and a good goal to get to . Just wondering if it should be more

Based on new information have you paid this off? Do you credit cards to pay or loans to pay? Clear them first.
My few tips can still apply even on your net wages.
While you were away you may have rental costs even when you were not staying there. This is an odd month for you as expenses have to be picked up from your trip away. 2k definately would be easy if not more.
Average what you got last year minus your holiday unless you have already paid for it.
Make a budget, rent, electricity, bins, tv, phone, car, food, entertainment, parking costs,car costs, clothes presents, Christmas. Cut down on purchases on clothes, food, takeout and use what you have for a while. Get your yearly bills and average over 12months and then you will see what money you will have left.

As you say some months you take home 3.5k and other 5k. You cannot reply on the 5k or 5.5k

TheChizler

tvjunki wrote: »

2)Banking charges for contactless. Check what fees you are charged. Try not to do contactless as you have no way of keeping track of what you spend. Some banks charge to use the service.

What banks charge more for contactless than regular debit card transactions? Quite a lot of banks charge 10/20c for regular debit but 1c/nothing for contactless. This advice would cost the OP money IMO.

There might be a small delay with some merchants proceeding contactless transactions but it's rare enough IME, and the few that do will always appear in the statement eventually so it's wrong to say you can't keep track.

OP the best thing I did to help saving was transfer set savings to a separate account after getting paid, transfer a set amount for bills (set up level pay billing if you can), rent, and groceries to a joint account, and finally a set amount to N26 for my discretionary spending. If theres anything left in that account by next payday I transfer the remainder to savings with a specific goal in mind. My original account has a built up buffer for emergencies, and it just works out that any excess there pays for Christmas, birthdays, and holidays. Makes everything predictable and enforces discipline.

I also have a credit card that I use as another buffer for work expenses, holidays, and odd-ball things if the joint or discretionary account is running low a few days before payday. It always gets paid before interest is charged (up to two months interest free) but well worth the €30 stamp duty as it levels out the rest of the accounts so they're totally predictable.

letsgo2018

The holiday is all paid for and done and dusted . It's in the past. I have 1000 euro to go on a long term boi loan . This is embarrassing but I also have 565 left on a provident loan which I've agreed to have paid off by July. Regarding my car I have factored in repairs. But my petrol costs are very low. 50 euro a month

letsgo2018

No credit card debt . I refuse to own one

TheChizler

letsgo2018 wrote: »

I have 1000 euro to go on a long term boi loan . This is embarrassing but I also have 565 left on a provident loan which I've agreed to have paid off by July.

You're probably best off paying these off next paycheck rather than saving.

tvjunki

letsgo2018 wrote: »

The holiday is all paid for and done and dusted . It's in the past. I have 1000 euro to go on a long term boi loan . This is embarrassing but I also have 565 left on a provident loan which I've agreed to have paid off by July. Regarding my car I have factored in repairs. But my petrol costs are very low. 50 euro a month

Definitely pay these off before saving. It is no good good saving if you get 0.02% while your loan is 23% or provident 200% plus. Don't use provident again. They will keep asking you to borrow money in the future so block the number on your phone.

The Chizler,

When you use contactless it is hard to figure out what money you have in your bank account without clicking into online banking.

Look at it this way. A bank withdrawal is 20cent for up to 1300 euros.

You could easily use contactless 20 times( 1ct x 20) and you would only be able to take out say up to 30 euros (20x30euros)which up to 600euros.
There is a saving but you have to be good.

The websites helping those with debts suggest going cash only. That way the cards cannot be used.

I know it is small but it all adds up while you are trying to save.
I was in a shop when the girl in front of me contactless for a bottle of water! Got chatting and she said she never has cash and her bank charges last quarter was 60euros! I made her think.

Spanish Eyes

Just on the bank charges, given the OP's net salary, there are banks out there that do not charge provided you keep a certain balance, or have a throughput each month of a certain amount.

I haven't paid bank charges in years, unless I'm in a place abroad where the foreign bank charges for ATM withdrawals, but I take that hit now and then.

I agree with a PP who said "pay yourself first". Figure out what your outgoings are each month, put that aside, pay yourself for your own enjoyment, food going out etc. but be a bit frugal there bit by bit. Then salt away a comfortable amount in savings that you cannot withdraw without 30 days notice or something, and increase it every three months, even by 50 euro.

It is all down to being organised and disciplined. But you have to have a life too. But maybe not a totally extravagant one that stops you reaching your savings goal!

Track your spending. You have a great net income. Make it work for you!

Best of luck.

Inspector Coptoor

I don’t pay bank charges on current account as there’s over €2500 a month going into the account.

Was annoyed with KBC Yday as they charged me 2% of a fairly big payment on my credit card as it was in sterling and called it a non euro transaction fee.

Very annoying.

I’d agree with other posters and say to pay yourself first.
On the first of the month, as soon as salary has hit my current account, money goes into my three different savings accounts and another few quid into prize bonds.

It’s non-negotiable

Gooser14

What would you call it? Surely since it was a sterling payment it is a non Euro transaction.

Get a Revolut account and avoid such charges.

cmac2009

Gooser14 wrote: »

What would you call it? Surely since it was a sterling payment it is a non Euro transaction.

Get a Revolut account and avoid such charges.

I'm presuming it's and additional 2% fee on top of the diabolical fx rate the bank had already applied to the transaction. Been a while since I had a credit card, but previously it was just the FX conversion where they made their profit.

Inspector Coptoor

Gooser14 wrote: »

What would you call it? Surely since it was a sterling payment it is a non Euro transaction.

Get a Revolut account and avoid such charges.

I have a Revolut card.

It wasn’t accepted at the time of booking.

I know sterling is a forgein currency.

I just wasn’t happy paying €19 of a fee on a transaction that cost them nothing.

TheChizler

tvjunki wrote: »

When you use contactless it is hard to figure out what money you have in your bank account without clicking into online banking.

No more so than any other card transaction?

Look at it this way. A bank withdrawal is 20cent for up to 1300 euros.

You could easily use contactless 20 times( 1ct x 20) and you would only be able to take out say up to 30 euros (20x30euros)which up to 600euros.
There is a saving but you have to be good.

You're comparing a transaction with you can do with chip and pin to one you can't do with contactless, that doesn't make sense. You're not comparing like with like.

Besides, you can easily get around that limit with Apple/Google Pay and the contactless method wins hands down.

Not that saving the odd 20c will make much difference to the OP! There are lower hanging fruit to tackle first.

mycro2013

It can be done, short term. Long term is some what more difficult. The first thing is to set up an another account with a separate bank. And trial saving each month in increments until you reach 2000 or at a figure which is comfortable.

No point in over saving and before the next pay check realising you don't have any free cash to cover unplanned expenses.

Does the company you work for offer a savings scheme allowing the savings to be deducted at source.

cmac2009

cmac2009 wrote: »

I'm presuming it's and additional 2% fee on top of the diabolical fx rate the bank had already applied to the transaction. Been a while since I had a credit card, but previously it was just the FX conversion where they made their profit.

The fx rate on the card is set by visa or MasterCard not the bank. The conversion fee is added by the bank.

iamtony

Op, I was in a similar situation to yourself up until about a year ago.
No matter how much I earned id spend it. I quit smoking, great an extra 70 a week! Didnt see it, money just got spent on useless crap elsewhere.
Me and the missus were spending €200 a week on booze and fast food. Gave up drinking and only order once a week. Great and extra 170 a week! Didn't see it, just got spent elsewhere.
Started bring lunch to work and a flask, same story.

Then I started actively managing my money and educating myself on the subject and now I save about €500 a week.
Get some good books on personal finance and start listening to podcasts on the subject. I listen to a guy called Dave Ramsey and he has books also, he runs a program called financial peace university and it consists of a baby step program which will genuinely change your life and make you happier and improve your relationship if you have one. Look him up.
The first baby step is to sava €1000. Step 2 is to pay off all your debt except mortgage. Then save 3-6 months salary And on it goes. It annoys me personal finance isn't thought in school.
Personally I opened a saving account and I put half of everything I earn into straight into it. It's very easy to set up with AIB and I'm sure all the banks are the same. I did it on my phone. If you keep all your money in your current account it's too easy to just spend it.
Anyway happy budgeting and good luck. And don't beat yourself up most people are the same, 70% of people live pay cheque to pay cheque.

The J Stands for Jay

tvjunki wrote: »

Definitely pay these off before saving. It is no good good saving if you get 0.02% while your loan is 23% or provident 200% plus. Don't use provident again. They will keep asking you to borrow money in the future so block the number on your phone.

The Chizler,

When you use contactless it is hard to figure out what money you have in your bank account without clicking into online banking.

Look at it this way. A bank withdrawal is 20cent for up to 1300 euros.

You could easily use contactless 20 times( 1ct x 20) and you would only be able to take out say up to 30 euros (20x30euros)which up to 600euros.
There is a saving but you have to be good.

The websites helping those with debts suggest going cash only. That way the cards cannot be used.

I know it is small but it all adds up while you are trying to save.
I was in a shop when the girl in front of me contactless for a bottle of water! Got chatting and she said she never has cash and her bank charges last quarter was 60euros! I made her think.

Use contactless rather than taking big chunks of cash out. If you have the cash, you'll spend it all, and never make any savings. You've already mentally spent the cash, so you'll just spend it on crap. When you use contactless, you'll be able to see the funds leave your account immediately (unless you're with BoI according to threads on here) and see your balance, rather than having to either keep a record or count all your remaining cash. You'll easily be able to see where your spending is being done by looking at your account instead of having to get receipts for every little purchase.

At the end of the week/month, you'll be able to transfer whatevers left in your account into savings. If you'd been messing around with a wad of cash, there's no way you'd bother visiting a bank branch to deposit the small denomination notes and shrapnel you'd be left with.

Contactless should be free, whereas you'll be paying stamp duty plus a charge to withdraw the cash. It won't make too much difference, bit I'd rather have that fiver myself in April than give it to Leo and the lads.

letsgo2018

If the parents gave me a 10% deposit of 20k for a house would the banks be reluctant to give me a mortgage because of my savings history?