Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
I AM OFTEN asked a financial question that starts with the line: “As a rule of thumb what should I…” And I think the reason people start off with this statement is because they either want a shortcut to the answer they are looking for, or they want to know what others are doing.
For financial advice, giving rules of thumb, in my opinion is not the best way to operate as they are very basic and no two people are the same, so what is right for me may not be for you. Of course, they can serve a purpose and can give you a good steer but they should not be relied upon for making important financial decisions. So be warned!
Rule of thumb number 1: How much of my income should go towards my monthly mortgage or rent repayment?
My rule of thumb is the rule of 25/36.
Your mortgage repayment including insurances, should not exceed 25% of your gross monthly income or if you have other debts then when they are combined along with your mortgage repayment, should not exceed 36% of your gross monthly income.
Rule of thumb number 2: How much of an emergency fund should I have?
My rule of thumb here will vary depending on whether you are single or married, and I will tell you what I think they should be shortly, but the amount you should have in place is a multiple of your 7 biggest monthly expenses, saved in an account that can be called upon if you are made redundant or cannot work due to an accident or illness. So you should have;
Rule of thumb number 3: How much money should I be saving each month for my retirement?
This is very important to know because I read recently that a survey was conducted where 70% of the respondents who contribute to a pension, relied on guesswork as to what their income will be when they retire. They contribute each month but have no idea whether it is enough or not!
The amount you should be saving will be dependent on a number of factors but if you want a rule of thumb try saving about half of your age as a percentage of your income. So, if you are 25 save 12.5% of your salary or if you don’t start until you are 30, save 15% of your income.
Rule of thumb number 4: How much insurance should I have?
The level of life cover you need is calculated by allowing your family to continue their current lifestyle in the event of your death, and working out exactly how much they need will depend on the number of dependents you have, their ages, your net monthly income, value of your debt outstanding, family expenses, death in service benefit etc.
Rule of thumb is 10 times your annual salary if you are in your 30s with young children. If you’re in your 40s when children might be a little older, makes it 7 times your annual salary, and, finally, 5 times your annual salary if in your 50s.
Rule of thumb number 5: How much should I borrow to buy a car?
I like the 20-4-10 rule of thumb which is 20% deposit, a loan that doesn’t last longer than 4 years and a monthly repayment that is not greater than 10% of your monthly income.
Rule of thumb number 6: How long will it take before my savings will double?
Apply the rule of 72 to this one. If you divide the interest rate you are receiving on your savings/investment into 72, then this will give you the number of years it will take for your money to double in value.
For example if your interest rate is 6%, then it will take you 12 years before your money will double in value (72/6 = 12)
Rule of thumb number 7: How long will it take before my money is halved in value?
This is obviously the reverse of doubling your money and has got to do with the effect inflation has on your savings, something I wrote about last year, where I stressed how important it was that you take notice of it and the impact it has on your savings.
Rule 70 will tell you exactly how long it will take before your money will be halved in value. You just need to divide 70 by the rate of inflation to find out. So, if inflation was 4% for example, it would take just over 17 years before your tenner is worth a fiver (70/5 = 17.5)
Rule of thumb number 8: How much of my pension contribution each month should be invested in shares?
The universal rule of thumb here is that the amount you should invest in shares as part of your pension portfolio should be equal to 100 minus your current age. So, if you are 40 years old, the % of your pension fund invested in shares should be 60%.
Liam Croke, the founder of MyMoney (www.my-money.ie), an online portal to help employees access financial information and tools to manage their finances. He is a qualified financial advisor (QFA) with over 24 years in the financial services sector. He advises organisations and people on personal finance issues of the day. He has written 5 books in the area of personal finance and has written articles for most newspapers in Ireland over the past 10 years.
To embed this post, copy the code below on your site
So if they cancel the Leaving Cert, how would the CAO be decided?
What would students do about college courses?
@Diarmuid Murray: it’s very clear in the article what Fine Failures have proposed as an alternative. Oh wait, no they haven’t.
@Diarmuid Murray: A predictive grading system.Any students who feel it will be unfairly applied would have the option to sit it.
@John Jones: It would seem to me that they don’t want to say the alternative they are asking for publically in case it changes what students are doing study wise, which would make sense
I’m sure he has something in mind, it was mentioned vaguely in some of the other newspapers
@WESTY: I’ve a daughter sitting the leaving cert how can fair predictive grading be done .
Assessments are different in every school teachers opinions can certainly be miles apart I cannot see how any predictive grading can be fair and I cant see teachers wanting to be the catalyst for anyone’s future .
Why cant this years school year not be extended for everyone let everyone go back in September and finish at xmas this would include primary schools let everyone start their new year in January .
@WESTY: Great. Can’t wait. Iv a few scores to settle
@Diarmuid Murray: predictive grades
@Michael Mcloughlin: I can understand your point as I’m currently sitting the lc as a repeat.However in my opinion I think the bias which may occur from predicting is outweighed by a greater divide.Some schools are receiving full online support from teachers with adequate tech and don’t have to worry about elderly relatives who live with them.I think it is fairer to asses us students on the work which has been previously carried out prior to it becoming such uneven playing field.My school I’m getting an email a week no classes and virtually no support.I do think an appropriate appeal process could mitigate issues based on evidence and not just someone who thinks they pull out 625 from a few weeks of cramming.
@WESTY: I feel for everyone sitting the leaving it’s a nightmare and theres no quick fix .
I seen it first hand in my old job the massive difference in assements when it came to promotions it was frightening .
If you are only receiving 1 email a week from you school that’s a disgrace and your teachers should be ashamed of themselves and that’s a good enough reason why I wouldn’t trust predictive grading .
You should be onto your principal first thing Tuesday morning that’s not good enough .
Good luck with your exams and be prepared for them to take place dont be reading the bullshite that political partys are coming out with most of it is for their own gain and not the students .
@Michael Mcloughlin: Not sure predictive testing would be fair, I did a lot better in the leaving cert than my teachers predicted. my physics teacher said i had no hope of passing honours physics and got a B
And what do ye suggest?! Easy to make a call like that with no solution.
FF say a lot & do nothing.
Run the leaving cert as planned. Exams to be marked taking into consideration the disruption students have faced.
@kMc: given the marking system is all on a bell curve, if everybody has those considerations applied to their exam paper, then over all it doesn’t really mean $hit when it comes to concessions and state meeting students half way.
@The Guy is Here: exactly. I’m amazed at how many people don’t know this. At the end of the day, as far as college is concerned, it is a race, a competition, and if everyone has the same handicap going in, then the race remains fair. They have a date. It’s the 29th July.
@David Clements: no. Some students who do a practical exam have a huge advantage cos they get 100% for that
It’s totally possible to proceed with the leaving cert.
Simply hire more supervisors and use spaces in secondary schools, primary schools and even town halls to hold the exams.
This ensures social distancing can take pla e and then collages can resume next year, even if it’s Oct, Nov or December.
If the leaving cert is cancelled outright it’ll have an insanely big knock on effect on colleges and universities.
I thought this was a given, you can hardly have thousands of kids across the country meeting up in groups. Missing a term and a half of school which is probably the most important for the majority of students. Give a cert of completion (level 5) and do college entry exams later in the year or even online.
The idea that the leaving cert is something sacred is a joke, people need to get over the fact that they had to do it 15 years ago and stop feeling some sort of need to insure that they go ahead for the sake of tradition.
@An Muid Éire: I don’t think people are ready for a progressive conversation like this.
@An Muid Éire: imagine the stress of college entry exams! But I agree there may need to be an alternative along these lines.
@An Muid Éire: I asked my 6th Years yesterday during whether or not they wanted the exams cancelled/predictive grades/alternative etc. All but one from a group of 15 said they want the exams to go ahead, saying they’ve come this far. Some students enjoy school, engage with and excel at the learning process, are proud of their work and their ability to showcase their knowledge. They want a natural and honest end to this long process of secondary education that they’ve invested themselves in. There’s a narrative circling that suggests kids hate the LC. Many don’t. Similar to the narrative that our education system is broken yet we are touted as one of the most educated workforces in the world. It’s not just a “joke” to many, though I’m unsure of your own experiences with education.
@hispolsoc:
We’re “one of the most educated” due to the number of bachelors and rate of school completion. That says nothing about the actual quality.
Most erasmus students I spoke to said they were surprised how easy college was in Ireland, and how they were studying stuff they’d already done in secondary school.
Usual populist shite. No plan. Cancel it and what? Eh I’ve talked to some universities. You’ve done nothing so. LC needs to go ahead. In August or September and sort college intake for next year. Plenty space in school to spread students out. Just pay more supervisors
@Eoin Scanlon: couldn’t of said it better myself! Close down the whole school to every other year apart from leaving certs and place a certain amount of students in different class rooms around the school? Surely to god they have enough space through the class rooms along with PE halls to accommodate all the students and any of supervisors that were asked to cover the JC now ask them to help out with the LC….complete cop out by F.F
What about those that have no wifi no access to a computer or have been childminding for their siblings ?? What about those who havent the curriculum or projects finished ?? Running the exams is not fair on those people.
When exams are being marked they take into consideration any circumstances which impact the performance of the students taking them.
The year the English paper was given out in error and the exam paper had to be changed they were marked with that in consideration.
I’m sure the majority of students want to sit the papers to get the points so they can still proceed to college or whatever path they chose.
@Sarah: look at any poll they don’t
@Johnny O’Hooligan: asking students if they want exams is like asking turkeys if they want Christmas…
Give them proper thought out choices and their implications and you might find them opting for the delayed exams
What about the students with underlying conditions? How safe is it going to be for them? Also you have students who will be going home to family members who have been cocooning for months. It’s very scary! I just want the Government to tell us how our kids are going to be kept safe.
Leaving cert in August. Corrected by end of September and could be quicker. Start college in November and cut college year 1 summer leave in half. Not ideal but its more than FF have suggested.
If there was ever an argument highlighting the need to reform the Leaving Certificate with continuous assessment and project work.
This great memory test puts two years from a students life on the line for two weeks of gruelling exam work.
Ahh give everyone A1′s sure it’s only a bit of craic. We’ll need loads of doctors in the future
Ridiculous option from Fianna Fail with no alternative, unsettling the unfortunate students even more. Another sign that the party is going nowhere, serious need for a new leader.
How will social distancing work for students who need a scribe for their exams? The scribe needs to sit next to the student.
I’m at a loss to know why third level institutions aren’t more proactive in this process because appallingly enough the LC is really in situ for those planning to go to 3rd level and does not hold as much weight for those not planning to go to 3rd level. Apprenticeships accept Jc level for admittance so surely 3rd level institutions could come up with some form of matric examination for those wishing to participate in courses. If they pass they are accepted on their chosen course and if they aren’t doing well then it’ll be apparent at the end of year exams where their situation could be reviewed…….. maybe it’s too simplistic… I don’t know but it’s way past time that something is done to alleviate this dreadful stress and anxiety for students their families and their dedicated teachers.
So Ff want to remove uncertainty. How? By adding more uncertainty.
@Badger the witness: What bothers me is the suggestion that the written exams for college entrance be replaced by interviews. If the interviewers prefer a familiar accent, or dislike an unfamiliar one, that would introduce bias that wouldn’t be in a written exam.
Not so hard to cancel the LC and probably the right thing to do. Fair enough, it does provide points for college courses but students have already indicated what courses they want and feel.able for through the CAO form. So those who want medicine/law/arts have already indicated that through the form. So… assign a college course at random based on the top 3-5 choices from the CAO. Put an appeals process in place. Done.
They really don’t help themselves do they, even when there are open goals they screw up!
@ThatLJD: That’s why I never let a lady on top ..
No more pencils
No more books
No more teacher’s dirty looks
Out for summer
Out till fall
We might not go back at all
School’s out forever
School’s out for summer
School’s out with fever
School’s out completely
That FF Byrne clown is just trying to get airtime. If he was in Government he would do exactly the same.
Let the Minister sort this one out. I say to Fianna Fáil , time to ditch the Greens, just say NO,just as they said to SF . The vast Majority of FF paid up members do not want the Greens anywhere near the Cabinet Table. Out, Out, Out.
They need to really keep into account the college accomodation factor. It’s already an expensive obstacle and expanding places on a once off basis could do irreperable damage to rent prices especially in Dublin. Many students are without their Summer jobs to save up for next year not to mind the fear of rent hikes. A statement like this by FF needs a lot more consideration rather than offering solutions by switching problems.
Look at the jealousy starting over the exam , the teachers know fine well what there students are capable of . If it doesn’t suit anyone have there exam later on in the year .
Let the students go to college in September and stop this nonsense. The leaving cert is in need of an overhaul as in continuous assessment and stop this memory exam .
In most colleges in other country’s there’s an entrance exam to see are u suitable for the course which is badly needed here . The amount of drop outs after year1 in college here because they don’t like there course .
There is time to get students to college if something is done now waiting for results in early September , trying to get accommodation and all the rest sorted just ridiculous .
@kevinhassett: There used to be a University Entrance Exam. It was called the Matriculation Exam (the ‘matric’) but the universities scrapped it and piggy-backed on the LC.
College can start late, and probably will since so many courses need labs or clinical practice.
have your say