Personal finances, ways to save money

Owlet

Hi. We've been hit with some unexpected bills (entirely self inflicted and won't happen again) and at the same time our energy bills and childcare costs have gone up.

I've been looking at ways to save/make money and wondering if anyone else has any tips.

So far I've gone through all our direct debits and subscriptions e.g. music streaming, amazon prime and axed almost all, stopped getting take aways, stopped my take away coffee habit, cancelled the cleaning lady we had once or twice a month, started producing a meal plan each week and shopping mainly in Aldi, decided no new clothes until the situation improves, started selling unwanted/no longer needed stuff e.g. old baby buggy on Adverts, we're in touch with a broker about changing mortgages to get a better rate, switched energy providers. We do use our dryer quite a lot so I think one obvious thing to do is become much more disciplined about hanging clothes out though with two small children the washing seems endless and in winter it seems to take an age to dry. We also use GoMo for our phones which is pretty cheap.

One other idea I had was to take in a lodger as we are very fortunate to have a spare room, and I understand this could be tax free under rent a room, though my husband is less keen given we have young kids. We could make about €120 per week for this which would be a huge help.

We could also cut down on extra curricular activities for the kids as these add up, but I'd rather cut my own expenses first.

We cycle most places including work and school and Montessori so fuel costs are minimal (in fact I'd happily sell the car altogether but husband would rather avoid this). I help care for relatives in England so I do need to fly back fairly regularly but always spend ages scouring for the best price.

We both work in professional jobs. Mine has fairly average pay but it is incredibly flexible and family friendly which counts for a lot as we have no family living nearby (hence high childcare costs). I work 80% of full time and look after the children in the other 20%. My husband's pay is better but there's no scope to do overtime or anything like that. Maybe we could look for new jobs with more money, or perhaps I could do some babysitting on weekends, though I'm not sure who needs a babysitter with an 8pm curfew!

Does anyone else have suggestions for ways to improve your personal finances? Are we missing a trick somewhere? Thank you!

SCOOP 64

I haven't anything to add but must say fair play too you, looks like you have done you homework.

Purple Mountain

Wow. You really have done your research. I think you would get similar advice from a professional!

I will add one thing, you touched on it above.

Most towns/villages have self service laundry drums now.

In the winter when it's hard to get clothes dry, I load up a bulk of wet clothes and take them to the dryer part. It's a huge drum and you only pay €2 for each 15 minutes drying.

Bring a book and sit in your car or better still, put it on for 30 minutes and go for a walk for that time.

Curious_Case

You seem to have all the boxes ticked

Using Aldi/Lidl and GoMo or similar is key

Change cars if you're paying high motor tax ?

Atlantic Dawn

Have you got health insurance, worth reviewing that each year, may be able to get cheaper plan or perhaps choose one that covers more day to day expenses?

Owlet

Health insurance is a good one. Hadn't really thought about that. Will certainly add it as something to review, thanks.

You have covered a lot, it's a matter of giving it time.

One other area would be to review your tax credits to be sure you are using them all and efficiently.

May not work to save as such,but credit union loans were orgainally designed for such situations as this

It can help spread the cost of the unexpected bills over a longer period to ease pressure,i remember people getting loans to buy likes of a cooker etc

Arealred

Well done, you are looking at the right areas. What interest rate are you paying on your mortgage. May be worth considering switching?

billyhead

https://www.boards.ie/discussion/comment/118485847#Comment_118485847

Or better yet. Get rid.

Owlet

Thanks @Arealred yeah we're in touch with a broker as we are coming to the end of a fixed rate so hopefully can get a good deal. @billyhead Yeah I actually would love to get rid of the car and replace with two decent electric bikes and if there was a car share scheme near us I could maybe persuade my husband but alas we are not quite at that stage yet. I'll keep working on him though!

ted1

with regards energy bills. Go on to an equaliser plan so you pay the same among each month. In summer you’ll build up a balance so you avoid big bills. Have you replaced all bulbs with LED?

what type heating controls have you ?

https://www.boards.ie/discussion/comment/118486249#Comment_118486249

electric bikes & scooters are not currently legal on public roads. So not a good idea.

L1011

https://www.boards.ie/discussion/comment/118486135#Comment_118486135

These days, CU loans are expensive and you will probably get cheaper from a bank.

Not mentioned yet - but if you are holding a credit card balance - stop. This is the dearest money you will ever have. Get a personal loan from anywhere to clear it and it'll be half the cost or less. If your credit history is good, you may get a transfer deal but these are rare and easy to become reliant on

I'm not saying to get rid of credit cards - I use mine for all day to day spending, but I can and do clear my limit from a months income so never pay interest; and get Aer Lingus points from it - but be super aware of how you use them.

Padre_Pio

https://www.boards.ie/discussion/comment/118486258#Comment_118486258

Electric bikes are very legal.

Looks like Electric scooters may be treated like bikes soon, but it's a legally grey area.

ted1

https://www.boards.ie/discussion/comment/118486258#Comment_118486258

fake news. Electric bikes are legal and have been for a long time.

https://www.boards.ie/discussion/comment/118486292#Comment_118486292

You are wrong.

ebikes are MPVs and therefore you must have valid insurance, tax & a licence. None of which are obtainable therefore you cannot use them on public roads, same as scooters.

https://www.boards.ie/discussion/comment/118486346#Comment_118486346

Another one who’s dead wrong.

What is the law on eBikes, Pedelecs or battery powered scooters?

Regardless of the type of bike, its speed or whether it requires a push start, the rules are as follows:

• If it can be powered by mechanical or electrical power alone (i.e., it can continue without you pedalling or scooting it) then it is considered to be a ‘mechanically propelled vehicle’ (MPV).
• Under road traffic law if an MPV is used in a public place it is subject to all of the regulatory controls that apply to other vehicles i.e., it must be roadworthy, registered, taxed and insured.
• The driver of the vehicle must hold the appropriate driving licence and is obliged to wear a crash helmet.

L1011

https://www.boards.ie/discussion/comment/118486363#Comment_118486363

You're the one aggressively ranting when you're being "dead wrong"

250w pedal-assist electric bikes with a speed cutoff are absolutely legal and considered bikes, not MPVs. No licence, no insurance, no nothing. You need to be pedaling for the power assistance to be legit, but that is what they all do unless illegally chipped.

https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX%3A32002L0024

https://www.boards.ie/discussion/comment/118486406#Comment_118486406

Irish law says they’re not legal. Try arguing with a garda about it using EU law, I’m sure they’ll definitely not seize your bike then.

as a garda told me when I argued a similar situation with EU law, “I get my laws from the Irish Statue Book”.

Sunrise_Sunset

How long are you expecting to have to make cuts; a few weeks or a few months? It sounds like you are going all in, so I'm presuming you need to make quite big savings.

Meal planning, and shopping in places like Aldi/Lidl. Try to only go to the supermarket once per week too. When you run out of something, it's gone til the next shop. Keep a budget, either written or on a spreadsheet. Analyse your spending each month, after a couple of months you will see any patterns of overspending in certain areas. Only shop in sales for clothes, the kids clothes in particular. Plan the seasons ahead. Buy next winter's clothes in the sales now in whatever sizes they will be in a year (If you are really tight right now this might not work, more of a long term plan). Alcohol is pricey now, could be one to cut. Set up sinking funds for any necessary upcoming spending, set your budget for each category and do not go over. Would you be able to arrange a short term mortgage break and just pay interest only for 3 - 6 months? You may have to wait a certain period of time afterwards before switching mortgages so just keep that in mind. Do not be tempted by wasting money on the lotto. Sounds like you have 1 day of parental leave pw, would it help to increase your hours to 100% or would that cancel out with creche fees?

L1011

https://www.boards.ie/discussion/comment/118486409#Comment_118486409

That European law IS Irish law and has been for 20 years

The Gardai are interested in escooters, eskateboards and electric motorbikes that are not legislated for.. Electric pedal assist bikes are legal, have been for two decades, and they do not ever care about them.

You can just admit you didn't understand the law here, or you can continue to rant with no basis and look like ever more of a fool

ted1

https://www.boards.ie/discussion/comment/118486363#Comment_118486363

That is not describing an electric bike.

under the road traffic act. A electric bike needs to match 3 criteria

1. no throttle, so the motor only works when the pedals are being turned
2. the motor must assist only up to 25 km/h
3. The output of the motor must be no more than 250w

what the piece you posted tenanted to point 1. That is if it can be powered by the motor alone I.e operate without the user pedalling. Then it’s an MPV. If it’s an MPV, the following 2 points apply

so in summary electric bikes are legal

BabysCoffee

You mentioned not buying new clothes until the situation improves however if you do need new clothes you could probably try buy secondhand in charity shops at a lower cost than brand new

shesty

I have a dryer, 3 kids here.Two clothes horses on the go.It's not that big a deal tbh, I just move the clothes horses outside if the weather is in any way good, easy to bring them back in if the weather changes.Dryer is only for sheets and towels here really.

Extra curriculars for two small kids...do you mind me asking what these are??If the kids are that small, the extra curriculars should be very minimal....My elder two are 5 and 7 and it is only in the last year to two years that they are really doing extra curricular stuff and benefitting from it, my three year old does nothing.

As regards the rest, I would agree with one weekly shop, freeze any leftovers you can, definitely check health insurance and do an equaliser payment for your energy bills.

lau1247

Check if you have claimed all the government reliefs etc that would be applicable for you, then process form 12, you might get some refunds.

bb1234567

You say you like cycling, could look into doing a few hours of deliveroo each week seeing as the hours are completely flexible? I do 3-4 or so hours at the weekend on my bike and I treat it as my exercise for the weekend, whilst making 40-50 quid or so for the weekend. Over the course of a month it's a good supplement to my day job. I take it easy and don't over burden myself. Works for me, something to consider potentially, I know it's not for everyone of course.

Alkers

You need to make a budget before you can truly understand where your money is going, the impact of changes such as you've proposed and how long you need to keep them up for. Put money towards saving / paying off bills or whatever you situation as soon as you're paid as opposed to leaving it for the end of the month

PocFada

Review and switch electricity, broadband, phone providers....big savings to be had

Citrus_8

Well done. Just a suggestion: even in Aldi is easy to overspend. Always make a grocery list before leaving home. Plan, what can be made for the following days out of what's in the fridge, freezer and cupboards, buy only what's necessary to avoid waste. Brings meals to work for lunch, if working in office.

As someone suggested, make an Excel spreadsheet and track you household income and spendings. After a few months you will be able to easily see where most expenses go and justify if can be saved even more money.

maestroamado

I cannot offer advise as this is a difficult one... you likely have big mortgage as two professionals should be able to live comfortable i would have thought...

good luck...

Tell me how

Batch cooking and freezing the meals will both help with cutting down food waste and will also positively impact energy bill if doing it right although the over all savings cash wise might not be huge.

Do you have an idea of how long it is likely to take to repay the bills you owe or are you just looking at a long term plan to save money? Would you have the option of renting a car quickly and at short notice should you need it? If so, and if doing it anything less than once a week, the cost might still be cheaper than owning a car, so is worth exploring again.

Personally, I'd be reluctant to take in lodgers in a house with young children but obviously many guest houses do this.

One or both of you probably could pick up weekend work outside your profession if you were flexible at working at things like stock taking or other type of gig economy type jobs.

One final thing, it sounds like you're doing everything, you mentioned cutting out activities for the kids and yourselves first but keep in mind you have a life to live as well. Lots of people have to deal with debt for a period and its not necessarily a bad thing once it is manageable. It isn't worth burning yourselves out or forgoing anything that might be fun or entertaining for an excessive amount of time, but that's just a personal opinion.

notAMember

You’ve started from the bottom up, stripping out the small unnecessary spends.

Do the reverse also, work on optimising the big spends. Figuring them out can take some legwork but well worth it.

Mortgage / house is likely to be one. You’ve said you are on a fixed rate, and rely on a broker, which sounds like an opportunity. Doing the mortgage yourself Vs the broker will most likely save you sone money. do you know your LTV ratio, the current value of your house vs how much you owe on it? This can make a huge difference to the rate. Look this up and consider paying a valued to revalue. Give them a good hint on what you need the value to be if it bumps your rate down. Know your BER also, there are discounts for green mortgages with a good BER.

Tax. what aren’t you claiming ? Most people pay too much tax. Log into the revenue site and check your credits are right , the site is great these days. You can add your medical receipts, bills for working from home, all sorts.

transport. Include everything. Servicing, repairs, insurance, fuel, tax, tyres , tolls. Would changing a car for electric secondhand suit you once you run the numbers? It made a massive difference for us. Could you drop a car entirely and one of you change to bike or motorcycle.

Extracurricular for kids is also one you can optimise , depending on what it is. There are a lot of those sold to parents that the kids don’t really need or benefit from, they are more like entertainment.

Shopping. Aldi and Lidl can be a false economy if you are drawn to the middle aisle of doom. :) Tesco delivery based on a list (with no top up shops) forces discipline if you over-shop or are influenced by marketing. It’s a timesaver too, shopping in person eats hours. time is something you can use to earn money.

Childcare. Could you change this to a different model. You say you have room for a lodger, how about an au pair? It is not necessarily much cheaper but could give you the breathing room to focus on improving your career (as you said it’s lower paid due to flexibility) . More of a long term improvement. And it’s loads of fun actually, we met some lifelong friends in our lovely au pairs.

holidays, look into home exchanging. When we became a family this worked well for us. Hotels, package deals etc are very expensive with kids. Exchanging can be mutually beneficial for families and a great adventure if you do some research. Accommodation is covered obviously, sometimes you can swap cars too, and Ireland is a very popular spot.

Clothes. Learn how to repair and alter clothes can be really useful and cost saving with kids. The amount of torn pants is nuts. Letting something in or out, adjusting length can give good lifespan to clothes as they get older and wear things out faster than they grow out of them. Build a clothes network with your local community if you can. I get most of my kids clothes from a neighbour with older children. In turn, I pass them on again to one with younger kids.

What else can you squeeze out of work, benefit-wise? Your health insurance is most likely covered, and you’ll be paying BIK on it. Get everything you can from it. Some of the plans have all sorts of things people never claim. Dental, health checks. some plans cover gym membership or classes or swimming lessons for kids. Massage, fitness trackers, chiropodist , all sorts of things. Know these health plans inside out. Get all your health in good nick in general, it helps with energy for everything else.

See if there is anything else at work you can claim. Bike to work scheme, subsidies for working from home, discount cards, can work pay for your phones or internet if you apply. Look up every possible benefit.

Education and getting you and/or husband a pay bump or bonus. You sound like you have time in the evenings, can you do any online course (paid by work) that would improve your job, get you a promotion, or get you a better paid job? Can your husband look at what else he needs to do to get more pay at work.

Out of hours additional work. Small bits of extra work come along that you can get involved in if you apply. Census enumeration, vote counting. A few hours standing on someones market stall (keep that cash based) .

Avoid multi level marketing schemes and pyramid schemes, those are scams.

Bartering or skill swapping can be useful depending on your skills, when you have a house to maintain. Minding someone else’s kids in exchange for them repairing your roof. Swapping plants for baking. Sewing for carpentry. Painting for power washing. This is a good one for the kids extra curricular too. Trade music lessons for tennis lessons or language lessons if you or husband can teach anything.

Last one, have fun with nature. There are things you can do that are educational, entertainment, healthy and cost saving. bring the kids blackberry picking, make the jam together. Irish fisheries have managed lakes where you can hire a boat for the day and keep your catch. For 30 euro we caught about 40 trout for the freezer, and had a great day out doing it.

Build your village. For loads of these, being involved with your community makes a big difference. Volunteer for the parents group or tidy towns or coaching at the local club. Getting to know people, talking, building that community is so important with family. You will learn to trust your neighbours , build a network you can lean on, and that helps endlessly with some of the things in life that get very expensive without a community.

Hope these were helpful!

mmrs

Some great advice on here so far.

I found that tracking what I actually spend each month on bills on a google spreadsheet really helped me see where my money was going. I estimate how much I expect those bills to be each month for the year ahead. I split it in to regular bills (gas, electricity, mortgage, TV etc.) and annual once offs (Motor Tax, Insurance, TV License). I personally don't track my food spend as it's was too time consuming for me but I have a good rough idea of it.

An overview like this can be an eye opener.

I also note in a calendar when contracts end and I will shop around for a better deal. You can save some real money here, I found particularly with broadband & TV there's money to be saved. Even calling your current provider can provide deals.

I try to avoid having Amazon Prime as it's just to easy to buy the little things you probably didn't need. I'll usually get it in for a month before Christmas.

If you have Revolut you might consider setting up Vaults to save for things like Christmas/Birthdays/Holidays. I've started that this year and it seems handy.

Really enjoy coffee so we got a decent home machine a few years back, that has paid for itself many times over. Now the occasional coffee from a coffee shop is a nice treat.

Sounds like you've done a good job so far. All I'd add is to cut yourself some slack too, better to implement the new savings in a gradual consistent manner than go all out and find it all too much of a change. Best of luck.

mmrs

https://www.boards.ie/discussion/comment/118486363#Comment_118486363

Just to add to this. Electric bikes are clearly legal, the state provides a scheme called Bike to Work which has an increased level of a tax refund for Electric Bikes specifically!

screamer

You should check if you working more part time and less childcare will save you anything. Use a payroll calculator like Deloitte to play around with the income to check. I find childcare is the most expensive, it’s twice the mortgage every month.

other than that, make a budget and pay in cash. When we were struggling back in the recession, I used to have a budget for food/ fuel/ discretionary spend and every month I got paid I’d withdraw that amount and split it into weekly envelopes. Amazing how disciplined you become when you see the money dwindling, and know it has to last the week. Yes, it’s hard but it works for that short time when you’re broke.

Sunrise_Sunset

Another thing I would add, but it's for when you do finally get all of these bills paid, is to build up an emergency fund. Most financial advisors would recommend 3-6 months worth of a bare bones budget. This would really help you in the future for any emergency bills or loss of income you may suffer.

Purple Mountain

You can get a balancing statement for the last 4 years which could result in a refund from revenue.

Note, sometimes you might have a repayment to make.

cfingers

https://www.boards.ie/discussion/comment/118486363#Comment_118486363

The first bullet point is what makes electric bikes legal. They can't be powered by electrical power alone. The motor on a legal electric bike (one that you willl buy in a bike shop) does not operate unless you a pedaling. You will see bikes in Dublin that have been altered to move without pedaling. These are illegal, but these are not the what OP was talking about.

Thoie

Have you submitted a Med1 for the last 4 years of medical expenses? You can get tax back on any GP visits, consultants that you've paid for. If you have the receipts you can do it online.

A quick google shows that my terminology is outdated (it's no longer called Med1), but the 20% relief is still available:

https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/health-and-age/health-expenses/how-do-you-claim-health-expenses.aspx

https://www.citizensinformation.ie/en/money_and_tax/tax/income_tax_credits_and_reliefs/taxation_and_medical_expenses.html

Purple Mountain

https://www.jobalert.ie/job/census-enumerators-central-statistics-office

Mystery Egg

I was in the same situation and got a second job in a restaurant two evenings a week. I get 100 euro for the two shifts, plus some tips, plus a meal each shift. This works out at approx 300/350 a month after tax and I use the two free meals as our weekly takeaway. It's tiring but I actually enjoy it and plan to quit when my debt is done.

ztoical

I think several people have asked OP how long do you plan on the deep cuts for? Certainly its worth keeping some as habit as its amazing how we spend money without needing to but if the outstanding debt will be paid in just a few months I'd throw everything at it and get rid as there's nothing worse then having a debt over your head. If its going to take much longer then I'd be careful about cutting back on everything as you'll soon ware yourself down and can lead to stress and rows.

Tork

https://www.boards.ie/discussion/comment/118503600#Comment_118503600

Agreed. You've well and truly cut everything to the bone and I hope you get out of this financial bind soon. I think if I was in your shoes I'd be looking for a second job as well. It might not be a viable option but from a psychological point of view, bringing in extra cash is nicer than hacking and slashing. Shops, restaurants and takeaways are looking for staff all over the place so it's a good time to be job hunting.

Ave Sodalis

Just to add, perhaps look at asking your employer for shop local vouchers as part of your wages. They can give up to €500 in vouchers tax free. They can't be used in Lidl/Aldi, and what they can be spent on depends on the town. However, my town includes oil companies, tyre companies, pharmacies, butchers and the local discount store.

Liberty_Bear

Ive noticed CU loans mentioned.

OP Talk to MABS about your situation , they have some great pragmatic advice.

I used the CU before to clear credit cards and an over draft and restructured my debts. Then used the balance of my CU shares to clear it about four years ago so now debt free. It is slightly less expensive than banks interest loan wise I think or believe but have a look. Made sense for me to just have one payment a fortnight going out

Charles Babbage

There may be merit in alternating your weekly shop between Aldi and someone else. They all have particular items that are good value or on sale, including Dunnes if you use the vouchers.

Hia.ie for the medical insurance.

You need to plan out your entire month on what your going to spend and stick with it, down to the last euro.

I find Revolut extremely handy on transferring money for the week. If I go over board and find myself broke at the weekend its noodles for breakfast lunch and dinner or might allocate myself an extra fiver to buy some mince and nothing more to make spaghetti bol.

Its the only way you will learn to stick to budget.

PaoloGotti

I have done this since I started working full time at 21 yrs of age:

Excel spreadsheet with approx 10 category columns: Rent, Savings, Groceries, Dining out, Misc etc

Row for every pay day (fortnightly for me).

Bottom row has a fancy index formula to give percentage of total spend each category is.

I have literally logged every cent I have spent in this spreadsheet in the past 15 years.

Take up this data logging approach and you will never seek financial advice again.