Borrow or use savings?

[Dunnesbest]

Struggling day to day but I do have savings, around €20000. I have an expensive orthodontist bill costing €450 per month. Obviously the ideal would be to use savings. BUT, I have a dd starting college next year, and I have no way of knowing where she will go. If its local it should be fine, but if she travels Ill be paying her rent, bills etc. We are in rural Ireland, no real student loan culture here. What to do? I find I'm dipping into savings more and more. Im good with day to day spending but eg we have had weddings, nights out, big birthdays recently which I've not been able to budget for as the money is just not there.

Hello! I’m also In Ireland. Do you work? Can you increase income in any way?

Hi, yes I do work. I could ask for extra hours which I am considering but my job is highly stressful so I really don't want to! Extra hours would mean a contract change which I'd be stuck with until retirement, whereas I'll be mortgage free in 3 years so I just need to get through these few years.

I'd say dipping into your savings is necessary here @Dunnesbest

Are you dipping into savings every month? I would dip in for this as it’s important. Do you think your DD will be entitled to any Susie grant next year at all?

No susi grant unfortunately, maybe enough to pay small amount of fees but that would be it.

It would be madness to borrow when this is an ongoing issue of not enough money, because all borrowing does it give you another monthly payment to make.

If it was a one off thing like an unexpected bill, house/car repair, then I’d say have a look at what the interest rate would be on a loan/credit card and if it’s higher than the rate you currently get on savings then just use savings.

But as this is not a one off bad month and an ongoing issue I don’t see that borrowing will do anything other than make the following months worse because it’s another payment for you to make.

If you are willIng to post your income vs outgoings maybe we can help you with forming a budget which allows you to save more going forward?

Also, as far as I know the SUSI GRANT income level has been increased 110,000 household income so by next year she may well be entitled to something for sure