Q. We just about managed to balance our books last year but yet again have failed to actually retain any savings. Is there any magic formula for savings we should have or percentage of our annual incomes. We both clear € 2,900 net a month and have two children under 5 years of age. Love the column. Marie – Santry Co Dublin
A. Thanks Marie – first of all well done on “balancing the books”. You have two young children who will only become more expensive so budgeting and saving are an essential part of your annual consideration. 3rd level per child from start to finish is going to cost you € 42,000 alone ! Ideally you should have between 3 and 6 months net annual income in a Rainy Day Fund (RDF) for emergencies, sudden loss of income or that MUST HAVE investment opportunity. So c. € 15,000 to € 30,000 in a fully accessible on demand deposit account. So if we said save 20% of your net income EVERY month, how would you be fixed ? That would total c. € 14K saved after a year. That’s a tall order though – € 580 each per month into a Regular Saver account ( best 12 month rate is Bank of Ireland at 2%) Even if you managed € 500 each per month – that would net you € 12,000 in time for next Christmas ! Email me for an easy to use, simple to understand budget planner spread sheet ( all the categories and tots itself up ) but SO necessary to find out how much it costs to live every month – with the surplus you cann now plan. Best of luck for 2025.