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

greyday

Invest to the limit in a pension and enjoy the compound growth for years to come, you have enough to still enjoy life on your salary.

MD2001

Thanks everyone, may catch up on all the replies later. Appreciate the input. I find these conversations constructive and interesting even if nothing comes out of it. Curious as to what constitutes a large or an average amount of savings for a 30 something year old also. Thought I was doing ok with the 40k but relatively small amount by some of the comments. How does everyone get decent savings with all the tax we pay. Am I doing something wrong? 😂

dxhound2005

Savings is what is left over when you have spent everything you need to spend. What does Minimal outgoings mean?

€65,000 salary. No debt. Minimal outgoings.

Water John

Interesting to work out for yourself just how much savings you could put away each month, considering esp no mortgage. Then add the €14K tax free for the lodger. This annual total, might offer you a different motivation going into work. Could you save €20/30K per year? A few years of that, will put together a serious lump.

mrcheez

https://www.boards.ie/discussion/comment/121620260#Comment_121620260

Means not spending much per month?

Seems pretty clear tbh

dxhound2005

https://www.boards.ie/discussion/comment/121620266#Comment_121620266

That could mean €1,000 or €3,000. They are asking how to achieve more savings on a salary of €65K gross, with no debt of any sort to pay. I gave a suggestion that they could save €20K a year. But they have only managed to achieve €40K at age 32. The answer lies in what Minimal Outgoings means in actual money.

Water John

The question for the OP to consider, is that worth pursuing for them?

MD2001

https://www.boards.ie/discussion/comment/121620310#Comment_121620310

Outgoings generally 1200-1300 a month. Can save in around 2-2.5k a month. Only on that salary a few months now. Prior to that was earning less with a few more outgoings.

Water John

With a small percentage of those savings, you could look into peer to peer financing, if it is something you'd be interested in.

daheff

In your shoes, i'd be putting what I can into the pension to try to get enough to retire early if possible. At your salary level you save 40% on tax. Every 60Eur invested gets you 100Eur -probably the best return you will get anywhere.

Keep about 6 months of expenditure aside in a savings account. That at least gives you some safety net if anything happened with your job.

Padre_Pio

https://www.boards.ie/discussion/comment/121622918#Comment_121622918

There's nothing that beats a pension in Ireland.

dublin49

the only realistic way to beat the system and get out of the 9 to 5 x 40 year matrix is to save like bejaysus for say 5 to 10 years and then relocate to a country with a much lower cost of living where your nest egg stretches to multiples of the Irish annual Budget.I know someone that lived really cheaply on the Albanian coast and it seems there are americans relocating there for same reason.Montenegro or Southern Italy would be other options ,Thailand and Malaysia probably offer even cheaper lifestyles.

FlipFlopAgain

https://www.boards.ie/discussion/comment/121618986#Comment_121618986

The "financial gurus" offering that advice are targeting US residents. It's not relevant for Ireland as we have a different system here.

To the OP, I'd echo what a few previous posters have said. Max out your pension. Those contributions aren't taxed, so it costs you €60 to put €100 in your pension fund. If you leave that job in the future, then you should be able to access the pension funds any time after you turn 50. There are restrictions around this, so worth doing some more research on it.

JCN12

Deleted.

Cyril706

I'd suggest looking into investing a chunk of your savings in something like stocks or property that can grow over time. That could set you up for financial stability and potentially open doors to more freedom from the usual 9-5 routine.

Considering your desire to escape the traditional work grind, exploring entrepreneurship or starting a side hustle could be fulfilling. Personally, I've found that diversifying income streams beyond a regular job can bring both financial independence and more flexibility in how you spend your time.

If you're curious about ways to work smarter and increase your income while working less, I've come across some helpful tips at cashyeah.com/blog/how-to-work-less-and-make-more-money. They offer practical advice that might resonate with your goals of breaking free from the typical career path and finding greater fulfillment in your work-life balance.

Geuze

https://www.boards.ie/discussion/comment/121620331#Comment_121620331

Saving 2,000 - 2,500 pm from 65k is great, well done.

CKError

If I were in your shoes, I’d invest some of that €40,000 in a mix of index funds and ETFs for steady growth. I’d also think about property, maybe buy a rental property if the market’s right. I started a side business on the side that’s been pretty rewarding, so maybe explore something you’re passionate about. And definitely chat with a financial advisor to map out a solid plan for the future.