How to beat cost of living crisis & save
10 ways to overcome financial stress
IRELAND remains a nation of savers – despite the biting pressures of the ongoing cost of living crisis, according to a new survey.
How to save and manage spiralling costs at the same time is a tricky financial task, but personal finance experts say it can be done.
Some claim that cutting back on non-essential comforts such as takeaways, cigarettes and alcohol could knock over €6,000 off the average household bill.
Another €4,429 a year could be saved by switching mortgage or TV provider and shopping around for the cheapest groceries, according to the personal finance experts.
One of those is moneysherpa. ie founder Mark Coan, who has devised 10 tips to beat the stress.
He said: “Financial stress is a significant burden for many Irish individuals.
“Recent research indicates that it’s the primary source of anxiety for the majority.
“However, there’s a silver lining amidst these worries: the power to take control of your finances and build a secure future.
“Recent research conducted by neobank bunq in February 2024 reveals that nearly 60% of Irish consumers are consistently saving money and almost 70% maintain a spending budget.
BOOST
The first money-saving tip from moneysherpa.ie is to build an emergency fund.
A spokesperson said: “One way to take back control is by building up an emergency fund to smooth out any nasty surprises.
“Aim to save at least six months’ worth of expenses, reducing reliance on high interest borrowing in times of need.
“The average Irish household income is around €55,000, so in that case you would be looking for €27,500 saved ideally.
“Secondly, maximize your income by considering avenues to boost your earnings.
“Recent moneysherpa saving research into changing behaviours found that over 33%of people had increased their income through negotiating a higher salary, taking on additional hours, or exploring new job opportunities.
“Thirdly, harness the power of budgeting.”
Some 54% of Irish people cite longterm financial goals as one of their top priorities for managing their money, according to bunq’s research.
“The fourth tip is to make the most of what you save.
“For example, if you do manage to build up an emergency fund you should make sure you make the most of it by getting an instant savings account with a high rate of interest.
“The fifth tip is to optimise your tax benefits. Don’t overlook potential tax savings and credits that could bolster your financial position. Take advantage of available tax reliefs, credits, and allowances, ensuring you’re claiming all entitlements to minimise your tax bill and maximise your savings potential. “The sixth tip is shop smart. This means embracing the power of savvy shopping by seeking out deals, comparing prices, and switching providers to secure the best value for your money.
“Small changes in purchasing habits can yield substantial savings over time, contributing to financial goals.
“The seventh tip is practise conscious consumption. In other words, evaluate your spending habits and identify areas where you can cut back without sacrificing essential comforts.
“By distinguishing between needs and wants, you can prioritise spending on necessities while curbing unnecessary expenses.
“The eighth tip is educate yourself on debt management.
Equip yourself with the knowledge to navigate the complexities of borrowing responsibly.
“The ninth tip is engage in interactive learning. Make financial education enjoyable by incorporating games, activities, and interactive resources into your learning journey. “Whether it’s playing financial-themed games or exploring educational apps, find engaging ways to enhance your financial literacy.
“The tenth tip is invest in your future. This final tip means explore opportunities to grow your wealth and secure your financial future through prudent investment decisions.
“Remember, the key to financial success lies in adopting practical strategies that align with your unique circumstances and aspirations.
“With determination, discipline, and the right mindset, you can overcome financial challenges and pave the way for a brighter tomorrow.”