€40,000 in savings. What moves should I make?

MD2001

32 years old. €40,000 in savings. €65,000 salary. No debt. Minimal outgoings. Living at home. Hate working 9-5. Want to escape the matrix eventually. No idea what to do. What moves would you make if you had €40,000 in Ireland today to set yourself up for the future. Open to business ideas, investments, general advice

lawred2

Invest in your life by getting out from under your parents. First thing I'd be doing anyway

Water John

In business , use your ideas and other peoples money. €40K won't go far in setting up a business but you could set some aside as seed capital. All depends on the skill set you have and willingness to learn.

o1s1n

40k savings and 4X your salary gives you a 300,000 property. Buy your own place, it's time to move out.

Water John

Will buying his own place fullfil the OP? Not what I read, but it's up to them to express an opinion on it as the first priority.

Mr. teddywinkles

Deleted

MD2001

Fair comments re the housing, back story to add would be parents passed away, was minding them for years. In the house now, mortgage free. So there's no issue re lack of freedom etc. More looking for moves to make financially. Buying a place and getting a mortgage wouldn't help escape the rat race either anyways. Although welcome all comments, interested to get all views

MD2001

https://www.boards.ie/discussion/comment/121616067#Comment_121616067

Some savings to have. 120k very low. When was that?

MD2001

https://www.boards.ie/discussion/comment/121616049#Comment_121616049

Thanks John!

lawred2

https://www.boards.ie/discussion/comment/121616071#Comment_121616071

Feel a right arse now. Sorry to hear about your folks

MD2001

https://www.boards.ie/discussion/comment/121616091#Comment_121616091

Haha not at all, it was a fair comment. Id say the same. I should of stated the facts at the start I suppose lol

mrcheez

Done a round the world trip? Always good to get one of those early in life to give you a new perspective.

Or you're also within the age group to get a working visa for Canada etc.

Did a RTW trip at 23 and was best thing I ever did to get a new perspective. Had saved up so it was a 1 year holiday but came back with a clearer head and did well in saving up after.

Mr. teddywinkles

https://www.boards.ie/discussion/comment/121616081#Comment_121616081

I saved through and up to celtic tiger. Got lucky I suppose. Worked ass off 2 thou. Landed cheaper house after the crash. And yea its low. How lads are attaining 300k mortgages on single income.

FernandoTorres

I second the travel recommendation if you enjoy it. I lost my parents in my 20s too and spent years on the merry go round working really hard and not being very happy. A change of surroundings helped me massively but everyone's different. In the short term anyway I'd put it in Trade Republic and start earning 4% interest rather than the pittance you'll get with the Irish banks.

Water John

A sabbatical is a good idea.

jackboy

https://www.boards.ie/discussion/comment/121616071#Comment_121616071

A relation of mine lives in Brazil, does not work. He lives off rent for his Dublin house. Depending on where your property is you may have the chance to retire now and live off the rent.

Donald Trump

It is implied you own the house and are living there on your own?

First thing I'd suggest is taking in a lodger under the rent-a-room scheme. You have some additional wear and tear on the place but you can get up to 14k tax free.

What do you currently do 9 to 5, and what would you like to do if money were no object ?

I'll give you an example, if you were in IT I'd say think about going contracting to various countries and rent your house out, work for 6 months abroad and then tour around the same country for 6 months. It's all about the experiences. Depends what you can do though.

Or let's say you would love to be a wildlife cameraman, use your savings and rent and train up for a few years and get into that. Nothing like doing what you love. Depends what you would want to do of course.

elperello

You don't need to travel around the world to clear your head.

You probably have some hobbies and interests.

Take a few long weekends and do some of the stuff you like doing.

With that much cash and living mortgage free you can afford to indulge yourself.

Maybe you could turn one of your interests into a business but don't get carried away. Hang onto the day job until you're sure.

.

Alkers

Was just about to post about a lodger (or two) as above.

Is there a possibility to get a fully remote job on your current career? With nothing tieing you down and a revenue stream already from renting the house (or rooms in it), you have great potential to travel while earning.

Padre_Pio

Figure out what you want to do in life, then work backwards.

40k is nothing in the grand scheme, barely a years take home wage for yourself.

I'm assuming you've no girlfriend/wife. If you're not looking for one then I'd rent a few rooms in the house to your friends and make extra income. Invest your spare cash in the s&p or some index fund,

I'd set my sights on retiring at late 40s, rent the house and camper van around Asia for a few years. Or get a remote work job and go even earlier. After that, I'd buy a place and live for cheap in Thailand or the like, and do something creative to make an income.

I'd always keep the place in Ireland, just as a fall back should I want to come home.

GBX

Wrong thread.

o1s1n

https://www.boards.ie/discussion/comment/121616071#Comment_121616071

Ah no way, really sorry to hear about your folks.

I'd echo the above re getting in some lodgers if you're living alone. What state is the house itself in? 40K isn't life changing money but it's enough to get some nice bits and pieces done around the house to make it more comfortable.

yourdeadwright

Can you use the 40k as a tool to try and educates yourself more & up skill to go higher up the ladder in your job or in a new job,

For example could the 40k give you room to go and get a master's (if you don't have one)

None of us know your lifestyle or passions so its hard to tell you exactly what to do or what would suit you as a person but basically try & use the 40k as a tool to make yourself more money , $40 k is not a huge sum on its own but it could be what you need to reach the next level of income that makes you wealthy

Best of luck & well done so far ,

Furze99

https://www.boards.ie/discussion/2058331294/40-000-in-savings-what-moves-should-i-make

Business ideas? You've either got to have a skill/ service and/ or products that customers will buy consistently and who will pay promptly.

At the moment you're selling your labour/ skills to an employer who pays regular salary, which is relatively easy and relatively stress free.

Investments? Your money can go up in value and fall in value.

General advice: try and manage your life to be debt free. Some will say it's good to borrow and build up a credit history. But if you don't want or need a credit history, this is meaningless advice and often comes from those making money out of the system. Debt free is more stress free. If you want stress in your life and a bit is no harm, there's better ways!

Alkers

https://www.boards.ie/discussion/comment/121618441#Comment_121618441

There is no need for credit history in Ireland once you are earning

notAMember

Sorry to hear about your loss.

Are you very connected to Ireland, still have ties / other responsibilities? You ask "What moves would you make if you had €40,000 in Ireland today". My move, would be to move out of the country.

Ireland is one of the more difficult places to start a business, if this is what you'd like to do. A lot of red tape and barriers, and a lack of immigration means not a broad pool of supporting talent. In your position, I would try to identify someplace that might appeal to your thinking, and move there.

Banzai600

As OP have said, having 40k is great, but wont get you far these days. id be weary about spending on stuff that will devalue like a car or similar or an expensive one off holiday. Very few things return money these days too around investment, banks are all about making themselves as rich as they can while bleeding you dry and offering sh1tty percentage returns. And ppl are signing their life away on huge finance deals around the old ethos of keeping up with the jones's.

Your parents leaving the house to you is a big plus, you could sell if the time is right - OR move abroad, continue the same job, in a sunnier less stress environment and rent the family home - so you have something to fall back on or sell if you needed money. you could use some of the 40k , not all to get you started in a sunnier climate.

re renting, i know of three ppl, one an accidental landlord and two other ppl who invested from hard earned money, didnt stick it to ppl on rent either, even over last 4 yrs, but all three houses had issues when they got them back, and monies not paid etc, and one set of ppl had issue with Dublin "socialites" making claims about house condition etc, and other stuff, which they were caught out on , scammer fcuks. It seems to be hard to get ppl out, even if theyre destroying your house, and all around it. but there are good ppl out there too.

if you've no ties, id be looking at moving out of here pronto. No need to bang on about politics / cost of living, its gotten ridiculous here, a plastic, greedy and narcissistic society only going one way, more lawless than ever , regardless what the media are instructed to spin off. Ppl are more stressed than ever, set to explode, regardless of what standing they are in society, things are hugely fcuked since covId , mental health is effecting a huge proportion of our society.

Go somewhere like spain or italy, look at the ry@n@ir route map, will give you some ideas. Stay close to a city, within an hours train / bus commute if you need a flight etc. There are sound properties in non tourist locations around both of those countries where you could disappear if you wanted and live a peaceful existence. OR work on a month to month basis, travel around , see a few countries etc. live with little but a bag on your back, it can be done.

I myself would stick up a white board in your kitchen, not a notepad on your phone, something visual you can see daily, to write on, stick up ideas and places and go from there, you may get divine inspiration ?

im only back from being away for a week, im realistic and the more i come back the more i want to leave, but cant due to family stuff going on, no kids etc. Ppl in ireland always say " the grass isnt always greener" etc , but at some point there is better fertile ground to plant your feet on, and id love to go now if i could, but cannot.

dxhound2005

https://www.boards.ie/discussion/2058331294/40-000-in-savings-what-moves-should-i-make

I looked at a tax calculator, PAYE, PRSI and USC which says that you would have take home pay of around €45K a year. You are so well set up with no debt, that you could get by on spending money of €480 a week, €25K a year. And save €20K, which would build up a significant sum in a few years.

The 9 to 5 matrix may be something you hate, but going into the world of business could turn out worse. Investments are down to what level of risk you are prepared to take, and I wouldn't offer any advice. What pension provision have you made?

Furze99

https://www.boards.ie/discussion/comment/121618465#Comment_121618465

Well you'll often hear 'financial gurus' advising people to borrow and build up a positive credit history. So you can borrow more ...

Of course, borrowing can be productive sometimes. But it's not necessary if you can work within your resources.

dublin49

I think when you get a bit of savings the mind turns to maybe using them to escape the monotony of 9 - 5 treadmill early in your career,of course with the OPs age and relatively small savings its a forlorn pipe dream but the thought of it can keep you going through dreary days.I hear other young folk looking for the magic formula but short of writing a popular Xmas song or inventing a killer APP just suck it up the way the rest of us do and you will be old in no time..