25 yr old with about 30k in savings and on a salary of 70k looking to make my next steps

[kuivivy]

@timmay_95 It also means OP would have to put up a 20% deposit on a future home, as they wouldn't be as first time buyer anymore.

 

[horizons]

@kuivivy For second time buyers you only need 10% deposit. This changed in January 2023.

 

[kuivivy]

@horizons Ah I wasn't aware of that! Thanks for the correction.

 

[chellebelle75]

@besjoux The sub flowchart is exactly what you're looking for.

https://www.reddit.com/r/irishpersonalfinance/comments/w15j0e

 

[besjoux]

@chellebelle75 Thank you! I’ve used the flowchart and it’s been helpful in creating a structure for me. I still am open to other ideas, and want to see once I outline where I’m at financially and my potential plans what people think of it

 

[jenniwrenn]

@besjoux Your 24k savings is basically your emergency fund more or less - if/when you lose a job or something happens you can fall back to it.

Given your rent is only 600 it's maybe a bit fat, at 100k/year and with average 2k/pm rent, it'll be about right.

If I were you, knowing what I know, I'd keep between 3 months income and 6 months expenses in Trade Republic at 4% as an emergency fund, let's call that 15k.

As for remaining 9k, I'd leave max 5k on the local boi, aib, Revolut, N26, Bunq account wherever you pay your rent, electricity bills, credit cards, for daily use.

As for remaining 4k, I'd call this your "deposit and moving expenses money", I'd open Trading 212 and would pick one or two of LSE:JAM/LSECT/LSE:ATT to invest 4k over the course of next couple of weeks/months. I'd avoid DEGIRO (they're OK, just not very good) and ETFs because taxes are higher and filling out form 11 while on PAYE is "not fun". Form 12 + CG1 is simpler and you even get a small tax free allowance. Then over the course of next 5 years, I'd DCA some amount into there every month. You can figure out how long/how much it'll take for a 10% deposit (or 5% if you're both working and saving).

In parallel, assuming no other savings goals for future large expenditures, I'd max out the pension AVCs into a PRSA, assuming your employer doesn't give you a match, if they do, take the match and PRSA the rest. If they offer a match, take that first before deposit.

Make sure you have access to your old employer pension scheme/account, make sure it's invested into something sensible, be very careful about rolling that up into your current employer pension scheme it can't be undone and there might be better options (transfer to PRSA?)

 

[nina143]

@besjoux Would definitely agree with maximising the pension.

However, if you think you will settle in Dublin long term, I think an apartment that you move into is a great option. Based on your savings / salary, you could afford one for approx 300k. Gets you on the ladder, could rent out a room tax free up to 14k. That 600e rent may not stay the same forever unless it's your parents place.

 

[aggeliki96]

@besjoux How long are you qualified ? That’s a really nice salary for a recently qualified chartered accountant congrats. Do you mind me asking what industry your in and is this Dublin based

 

[yuliette]

@besjoux

1. Read the pinned post.
2. Financially, the only way buying the apartment is in anyway worth it is if you get a 2, or ideally 3, bed, live in it and rent out the other rooms. You'll get €14k tax free under rent a room relief. You will also lose any 1st time buyer privileges such as 10% deposit, HTB etc. You also won't be able to buy a rental property with less than a 30% cash deposit.
3. Any non secured investment should be an absolute minimum of 5 years. If you're planning on buying a house in the next 5, stay away from etfs etc.

 

[shuffle]

@yuliette 1st time buyer privileges are mostly nonsense and apply only to new builds which are ridiculously overpriced. Second time buyers only need 10% too.

 

[besjoux]

@yuliette I spoke with a mortgage broker who told me they’d feel confident j could get a 10% deposit even if there is intention of renting.

But I see your point on ETFs 100%, I didn’t consider that before but they’re a long run investment where I’d need the money eventually for a deposit

 

[dinu]

@yuliette 10% deposit doesn’t apply to only FTB anymore.

 

[christopher627]

@besjoux What undustry you in mate?

Finding it hard to belive a 25yo is on that kind of money and has no one else to ask about money other then reddit.

 

[stefan612]

@christopher627 i was earning the same in entry level tech sales until 23yo. it’s a rare salary for the age, but very common in a handful of industries like tech sales even at entry level. not particularly difficult to get into either.

 

[lisa1971]

@stefan612 Sales is a hard job haha.

 

[stefan612]

@lisa1971 it can be, depending on your company and territory. having your priorities straight is #1

 

[shuffle]

@christopher627 It’s a pretty achievable salary for a good software dev with 3-4 YOE.

 

[yuliette]

@christopher627 Hes also "done a lot of research on this sub" and didn't manage to find the pinned post

 

[dinu]

@yuliette Haha fuck me the saltiness just because OP makes decent money at a young age.

 

[inkedtexaslady]

@christopher627 I'm 27 on same salary. It's possible in the right industry