Conor Moen | Park Worth Financial Ltd.

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Budgeting & Saving Hints & Tips

//Budgeting & Saving Hints & Tips

Budgeting & Saving Hints & Tips

Setting significant financial priorities and goals is important, but we also know that life never quite happens in a straight line. Everyone’s path, from childhood to retirement, is interrupted with speed-bumps, switchbacks and a few cul-de-sacs, so it is a good idea every so often to review your finances to make sure that your money is working for you. Here are some tips to give your finances a clean sweep.

  • 1. Manage Your Credit Card

  • Set up a direct debit; you can choose what percentage you want to pay and thus avoid any unnecessary interest and charges by always paying on time.
  • Plan your spend; Make a list and decide what you will use your credit card for, to avoid impulse spending.
  • Check your statement; either over the phone or on-line, reviewing your account regularly will keep you in control of your spending and avoid accidentally going over your credit limit.
  • 2. Get Protected: Life Insurance is not a Luxury

  • If you have dependents, a life insurance plan is not a luxury, it’s a fundamental need. It helps maintain a family’s regular standard of living if something happened to the main breadwinner.
  • 3. Plan a Household Budget

  • A family budget can help you control your household spending so that you can effectively use your money  to help pay your bills and cover the basics on an on-going basis.
  • 4. Start an Emergency Fund

  • Always have some money put by for unexpected events – we never know what’s around the corner. A rule of thumb is to have at least 3 months’ salary saved for emergencies.
  • 5. Shop Around for the Best Rates & Prices

  • Use online tools like www.bonkers.ie  and www.consumerhelp.ie that helps you compare your spending against what other people are spending in areas such as mobile phones, broadband, groceries and energy.
  • 6. Get Your Tax Back

  • Although some tax reliefs and credits have been abolished in the recent Budgets, you can still claim tax back on many items, for example:
    • Medical fees
    • Renting your home (Rent Tax Credits may apply for individuals who pay for private rented accommodation)
    • Renting a room in your home to a private tenant (Rent a Room relief). The income received from renting a room in your home may be exempt from tax. There is an exemption limit, which if exceeded means the entire amount will be subject to tax.
  • 7. Plan for Your Retirement

  • In the future, the state pension won’t start until age 68, so having your own pension plan is vital.
  • When reviewing your financial plan, take a look at what you need to provide a decent standard of living when you hit retirement age.
  • 8. Become a Super Saver

  • Try and get in the habit of putting away as much as you can. So instead of opening just one savings account, you could open a number of regular savers, each designed to help pay for things like holidays, new car, third level education costs and home improvements.
  • 9. Be Smart with Your Investments

  • Consider an investment that suits your needs by doing a risk profile test to identify what type of investment is right for you. Generally, best advice is to spread your money across different types of investments and assets.
  • 10. Give Your Finances a Regular Checkup

  • It’s really important to regularly review your finances with your Financial Adviser, this way you’ll find it easier to keep on top of things. A Financial Review can provide you with the information, education and advice to help you map and fuel the journey. It can help you to:
    • Become a lifelong saver and investor.
    • Protect your life, income, health and valuables from unexpected events.
    • Make the right investment decisions or tackle long-term retirement planning.
By | 2019-05-03T10:10:48+00:00 March 15th, 2019|Financial Advice|Comments Off on Budgeting & Saving Hints & Tips