MORTGAGE REPAYMENTS:
Irish Times HOW WOULD you like to knock as much as 20 per cent off the cost of your mortgage without breaking a sweat? Believe it or not, it can be done – and it is not hard – yet for reasons that are beyond us, virtually no one is doing it.
Irish consumers are conditioned to pay their mortgage on a monthly basis but this can cost a lot of money. If, instead of paying monthly, you pay your mortgage every two weeks then you could easily dramatically cut its cost over the full term.
If someone has a €300,000 mortgage taken out over a 30-year term and they make a monthly repayment, it will cost €1,610.46 every month, based on an average interest rate today.
If they pay fortnightly, it will cost them €805.23 each time.
But when a person pays monthly, the total interest on that loan over the full 30 years is €279,767.35 or €777.13 a month. If, however, that person pays off the mortgage every fortnight then the total interest falls to €226,466.56 or an interest payment every bi-weekly period of €289.60.
The reason the interest falls so substantially is very simple.
Most banks calculate mortgage interest on a daily basis. If you owe €100,000 and pay off €1,000 monthly, a bank will calculate the interest owed on the full amount of €100,000 at the end of that first month. But if you pay off €500 every fortnight, then for the second half of that first month, the amount of interest you pay is less because for two of the four weeks, the capital owed is €99,500.
Spread that over the 30 years and the savings really mount up.
“The mortgage holder could knock almost €54,000 off the cost of their loan,” says Frank Conway, director of moneycoach.ie.
Earnmoneyforme.com
Monday, April 4, 2011
Friday, March 25, 2011
Is your job costing you too much money?
CareerBuilder.co.uk
When you're considering a job offer, you can't help but factor in salary. Money matters unless you've got a sizeable nest egg that lets you spend without care. That is not the case for most workers.
Instead, you have to consider the cost of your rent or mortgage, student loans, monthly bills, food and other expenses. A dream job can quickly lose its glimmer when you realise it doesn't pay nearly enough to survive.
But do you continue to examine your expenses once you've accepted the job? If you're strapped for cash on a regular basis, have you resigned yourself to thinking you need to earn more? Well, until that happens, you might want to examine what your job is costing you, not paying you. Many workers forget the indirect expenses of work, such as wardrobe, transportation and food. If you can cut down or make alternate arrangements, you might be able to boost your bank account even without a pay raise.
Here are six ways your job might be costing you:
1. Clothing and dry cleaning
Whether you wear suits or jeans, clothes cost money and you have to replace your work attire regularly. If you have to wear dress clothes, the up-front cost is already steep, but then you're stuck taking them to the cleaners every week. Or you have to buy enough clothes to go to the cleaners less frequently. Either way, you're stuck shelling out cash.
2. Transportation
To get from your home to your workplace probably costs you money in some form. (If you can walk to work or work from home, you're lucky and saving money.) Public transportation is usually cheaper than driving, but it often takes longer, so it costs you time.
But if you're driving, don't just look at the price of petrol, which definitely puts a dent in your pocket. The back-and-forth of everyday commutes puts more miles on your car, which translates into more maintenance and eventually a need to replace the car sooner than if you worked close to home. And if you have to pay tolls, that's yet another expense to consider.
3. Food
One of the easiest ways to save money during the week is to pack your lunch. Unfortunately, life often interrupts the best laid plans and you end up going out for lunch, which means you spend a few quid here, a few quid there, and by the end of the week you've spent 50 pounds on lunches alone. For many workers, job-related activities take up more than 40 hours each week. From the time you leave in the morning to the time you return home, you might have been gone for 12 hours, and that means you probably don't have time or energy to cook tea. Therefore you'll be picking up food on the way home.
4. Child care
If you have children, you know how expensive it is. The cost of child care depends on many factors, such as the child's age and how long the care is for, but it's never cheap. Several studies have shown that many working parents spend a majority of their paycheques on child care, and sometimes parents who work part-time end up losing money. Unless you have an onsite daycare that saves you money or can arrange a more affordable deal with a friend or relative to care for your child, this expense is one you can't avoid.
5. Housekeeping
OK, housekeeping is considered a luxury by many people, and that's fair. However, if your job takes up so much of your time between hours worked and the commute that you're gone 75 hours each week, you're not left with much free time. Therefore, you might feel inclined to have someone clean your house while you're working so you can enjoy yourself when you get home. A job that takes up less of your time would allow you to do chores without feeling like you're wasting your few hours of freedom.
6. Mobile phone and entertainment
If you have to use your mobile for work, hopefully your company covers the cost. Not all companies do, however, and employees are stuck paying for expensive smart phones out of their own pockets because they're expected to be on call every day. They need to be able to access e-mail and send documents at a moment's notice, and these phones and their service plans are expensive.
Some jobs also involve entertaining clients. Again, many companies provide expense accounts, but not all of them do. If you get stuck taking clients to lunch or drinks on a regular basis, that cost adds up, especially if you're driving them around yourself. Just be certain that you're earning more from their business than you're spending.
When you're considering a job offer, you can't help but factor in salary. Money matters unless you've got a sizeable nest egg that lets you spend without care. That is not the case for most workers.
Instead, you have to consider the cost of your rent or mortgage, student loans, monthly bills, food and other expenses. A dream job can quickly lose its glimmer when you realise it doesn't pay nearly enough to survive.
But do you continue to examine your expenses once you've accepted the job? If you're strapped for cash on a regular basis, have you resigned yourself to thinking you need to earn more? Well, until that happens, you might want to examine what your job is costing you, not paying you. Many workers forget the indirect expenses of work, such as wardrobe, transportation and food. If you can cut down or make alternate arrangements, you might be able to boost your bank account even without a pay raise.
Here are six ways your job might be costing you:
1. Clothing and dry cleaning
Whether you wear suits or jeans, clothes cost money and you have to replace your work attire regularly. If you have to wear dress clothes, the up-front cost is already steep, but then you're stuck taking them to the cleaners every week. Or you have to buy enough clothes to go to the cleaners less frequently. Either way, you're stuck shelling out cash.
2. Transportation
To get from your home to your workplace probably costs you money in some form. (If you can walk to work or work from home, you're lucky and saving money.) Public transportation is usually cheaper than driving, but it often takes longer, so it costs you time.
But if you're driving, don't just look at the price of petrol, which definitely puts a dent in your pocket. The back-and-forth of everyday commutes puts more miles on your car, which translates into more maintenance and eventually a need to replace the car sooner than if you worked close to home. And if you have to pay tolls, that's yet another expense to consider.
3. Food
One of the easiest ways to save money during the week is to pack your lunch. Unfortunately, life often interrupts the best laid plans and you end up going out for lunch, which means you spend a few quid here, a few quid there, and by the end of the week you've spent 50 pounds on lunches alone. For many workers, job-related activities take up more than 40 hours each week. From the time you leave in the morning to the time you return home, you might have been gone for 12 hours, and that means you probably don't have time or energy to cook tea. Therefore you'll be picking up food on the way home.
4. Child care
If you have children, you know how expensive it is. The cost of child care depends on many factors, such as the child's age and how long the care is for, but it's never cheap. Several studies have shown that many working parents spend a majority of their paycheques on child care, and sometimes parents who work part-time end up losing money. Unless you have an onsite daycare that saves you money or can arrange a more affordable deal with a friend or relative to care for your child, this expense is one you can't avoid.
5. Housekeeping
OK, housekeeping is considered a luxury by many people, and that's fair. However, if your job takes up so much of your time between hours worked and the commute that you're gone 75 hours each week, you're not left with much free time. Therefore, you might feel inclined to have someone clean your house while you're working so you can enjoy yourself when you get home. A job that takes up less of your time would allow you to do chores without feeling like you're wasting your few hours of freedom.
6. Mobile phone and entertainment
If you have to use your mobile for work, hopefully your company covers the cost. Not all companies do, however, and employees are stuck paying for expensive smart phones out of their own pockets because they're expected to be on call every day. They need to be able to access e-mail and send documents at a moment's notice, and these phones and their service plans are expensive.
Some jobs also involve entertaining clients. Again, many companies provide expense accounts, but not all of them do. If you get stuck taking clients to lunch or drinks on a regular basis, that cost adds up, especially if you're driving them around yourself. Just be certain that you're earning more from their business than you're spending.
Tuesday, March 15, 2011
Younger people saving less - survey
Only 36 per cent of people aged under 50 save regularly, according to the latest Nationwide UK (Ireland)/ESRI Savings Index.
This compares to 41 per cent of those aged over 50 and a national average of 38 per cent.
The survey indicates that 63 per cent of people in the under 50 age category believe they are saving less than before as against 52 per cent of those aged over 50 years.
While older people are more likely to store away money for a rainy day, they are critical of Government policies, with 64 per cent saying such policies discourage saving compared to 53 per cent of younger people.
“There is a clear pattern of behaviour emerging which shows that people still want to pay off debt or save in preference over spending. However, less and less people are happy with the levels they are currently able to save or think they may be able to save in the future," said Brendan Synnott, managing director of Nationwide UK (Ireland).
"It is also apparent that the over and under 50s are facing different pressures which are affecting their attitude towards saving. The under 50’s group must contend with the expense a younger family brings and larger mortgage debt and as a consequence regular saving, although desirable, is less achievable," he added.
Irish Times
Personally i believe the main reason people are saving less is simple.They have LESS MONEY,its that simple..if you have less money,then saving for a rainy day is not the foremost in your thoughts.I was that person myself not to long ago,i didnt save money,simply because i didnt have any to spare.
I found another way
During these difficult times for so many,saving just isnt a realistic option,that is not unless you can make extra money
This compares to 41 per cent of those aged over 50 and a national average of 38 per cent.
The survey indicates that 63 per cent of people in the under 50 age category believe they are saving less than before as against 52 per cent of those aged over 50 years.
While older people are more likely to store away money for a rainy day, they are critical of Government policies, with 64 per cent saying such policies discourage saving compared to 53 per cent of younger people.
“There is a clear pattern of behaviour emerging which shows that people still want to pay off debt or save in preference over spending. However, less and less people are happy with the levels they are currently able to save or think they may be able to save in the future," said Brendan Synnott, managing director of Nationwide UK (Ireland).
"It is also apparent that the over and under 50s are facing different pressures which are affecting their attitude towards saving. The under 50’s group must contend with the expense a younger family brings and larger mortgage debt and as a consequence regular saving, although desirable, is less achievable," he added.
Irish Times
Personally i believe the main reason people are saving less is simple.They have LESS MONEY,its that simple..if you have less money,then saving for a rainy day is not the foremost in your thoughts.I was that person myself not to long ago,i didnt save money,simply because i didnt have any to spare.
I found another way
During these difficult times for so many,saving just isnt a realistic option,that is not unless you can make extra money
Thursday, March 3, 2011
Unemployment rates drop due to emigration
THE NUMBER of people claiming unemployment benefits has fallen for the second month running.
According to the latest Central Statistics Office data, there were 439,200 people on the seasonally adjusted Live Register in February, down 1,700 on the previous month.
Despite the decline in claimants, the standardised rate of unemployment remained unchanged at 13.5 per cent, just below the high of 13.6 per cent recorded last year.
The relatively small monthly drop in February was comprised of a decrease of 2,000 men and an increase of 300 women, and follows a drop of 5,800 in January.
The number of Irish on the Live Register has increased by almost 9,500 (2.7 per cent) in the year to February, but the number of non-Irish fell by 2,104 (-2.6 per cent).
Ulster Bank economist Simon Barry said while the fall in claimants reflected the impact of outward migratory flows, it was also consistent with the export-led expansion in manufacturing.
Reported by Irish Times
Dont be a statistic of the recession by finding a second income or for alot of people these days,an actual income
Please leave your comments if you or someone you know has been affected by emigration
According to the latest Central Statistics Office data, there were 439,200 people on the seasonally adjusted Live Register in February, down 1,700 on the previous month.
Despite the decline in claimants, the standardised rate of unemployment remained unchanged at 13.5 per cent, just below the high of 13.6 per cent recorded last year.
The relatively small monthly drop in February was comprised of a decrease of 2,000 men and an increase of 300 women, and follows a drop of 5,800 in January.
The number of Irish on the Live Register has increased by almost 9,500 (2.7 per cent) in the year to February, but the number of non-Irish fell by 2,104 (-2.6 per cent).
Ulster Bank economist Simon Barry said while the fall in claimants reflected the impact of outward migratory flows, it was also consistent with the export-led expansion in manufacturing.
Reported by Irish Times
Dont be a statistic of the recession by finding a second income or for alot of people these days,an actual income
Please leave your comments if you or someone you know has been affected by emigration
Wednesday, December 8, 2010
Budget 2011
The Budget 2011 contains a number of reforms which are likely to affect people at all levels of society.
These are just a few of the key proposals unveiled by Finance Minister Brian Lenihan are:
- Social welfare payments are to be cut by 4%.
- A cut of 10 euro a month in child benefit for the first & second child and an additional cut of 10 euro for a third child.
- An increase in the excise duty on petrol by 4 cent and diesel by 2 cent by midnight,although alcohol and cigarettes are untouched until next year.
- A 4% cut in all public sector pensions above 12,000 euro a year.
- A 10% lower starting rate for new employees in the public sector, including judges.
- Reform of state cars with former Taoisigh and Presidents given a pooled system with the number of garda drivers cut.
- Immediate reform of stamp duty to standard 1%
- One of the jets,The Gulf Stream Government jet, which is at the end of its life span, will not be replaced.
You may remember last year Brian Lenihan told us we had turned the corner,well i suppose in a way we did and ran into a brick wall.I wonder what is around the corner we are currently turning??
Everyone is going to have to pay more,unfortunately some are already at breaking point and cant afford these charges.
It is now time to find another way of replacing that lost income
I can show you how to replace your lost income
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