Updated Financial Tips:
1. Manage your debt levels – pay off expensive debt first. A good example is Credit Card debt.
2. Make sure your family is protected in the event of premature death or illness. Even if your budget is tight ‘half a solution is better than no solution’. Life Cover can be arranged to suit any budget.
3. Reprice reprice reprice – Shop around for all your financial products. Unfortunately a lot of people buy their Mortgage Protection and similar policies without checking do they have the cheapest premium in the marketplace. If you are in good health, ring an independent advisor for a quick quote just to give you peace of mind that you are not paying too much. It is a good idea to review your cover every year to make sure it’s still suitable.
4. Pensions –There are many ways to plan for when you stop working but bear in mind that the state pension is €230 per week which may not be enough to sustain your lifestyle. Take control of your ‘retirement planning’. Burying your head in the sand is not the answer. Talk to a good advisor and ask them to go through some options in plain English.
5. Keep a money diary for a month. It seems like a pain but it will help you understand what you spend your cash on; it is startling to realise how much we spend on coffee’s, lunches etc..
6. Amalgamate all your old pensions; the amount you could be paying on charges or poor fund performance can have a big impact even on the smallest of funds. If you have an old fund from a previous employment and are over 50, you may be able to access part or all of your fund tax free
7. Review your pensions purely in terms of charges and fund choice, you might not want to contribute at the moment but at least you know what you have is working for you. A 1% reduction in charges or in increased fund growth can mean an even bigger fund at retirement. Talk to an Independent advisor for more information.
8. Save regularly; the local credit union is a great way to build up a cash reserve.
9. Health Insurance – need I say more? With increased rates it is time to forget loyalty and look at alternative providers.
10. Income Protection cover – don’t rely on the state if you are self employed or a Proprietary company director, you will not qualify for the state illness benefit, which is €188 per week. Buy your own cover and write it off against either personal tax or corporation tax. If you don’t have Income Protection cover, your savings won’t last long if it has to sustain your weekly food shopping, bills and other lifestyle costs.
11. The Government is discussing reducing tax relief for private individuals saving for their pension to standard rate tax, at the moment if you pay tax at 41%, you get 41cent in every euro back when you save into your pension. Take advantage of this relief before it is too late. You have until the 31st October 2011 to make a pension contribution against 2010’s income tax you paid.
12. Shop around for all your car related expenses; petrol/diesel, servicing costs, insurance and tyres. Loyalty may be costing you money.
13. Insulate your home as much as you can afford to; this will save your heating bills in the winter. With the rising price of Gas or Heating Oil, the savings could be thousands over your life time. Enquire about grants available.
