A New Year, a Fresh Start! Time to plan for 2021.

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2021 Financial Plan

2020 put everyone through their paces creating some unforeseen challenges.  Working from home and homeschooling became the new norm for some of us.   Many people finally tackled some home projects and sorting out those things they had put on the long finger – painting and decorating, decluttering your home and taking on new garden projects.

We know that it is impossible to predict the future, but we can plan for it. Every good plan must start with the end in mind.  Rather than saying “I must save €XX or put away €YY” it is better to work backwards and visualise your particular objectives that you wish to achieve.

What is the goal of money management?

  • Retire early?
  • Saving for a specific event?
  • Setting up a ‘Rainy Day’ fund?
  • Give your kids a head-start for 3rd Level Education?
  • Buying a home or renovations to your existing home?

It makes sense to split your savings into 3 brackets;

  1. The short term
  2. Medium horizon
  3. The long term

The long term is sometimes hard to think about.  It helps if you can visualise where you want to be in 5, 10 or 15 years time and break those down into short, medium and long-term goals.

Short-term goals are easier and here are 7 solid tips to help you start off!

  1. Replenish or start your emergency fund of up to six months’ salary through saving 10% of your net salary.
  2. Switch mortgage provider – only 20% of us ever do this!
  3. Have a 2nd bank account and give it a pet name – a fund account for discretionary spending with a cap on the amount that you put in.
  4. Attack your direct debits/standing orders – TV, Broadband, Mobile Phone, Electricity, Gas, House & Car insurance to name a few. Are you getting the most bang for your Euro?  Don’t be afraid to switch providers.
  5. Ditch your credit card and use a Charge Card or Pre-paid Card.
  6. Claim all your tax back from medical relief, e-working credits, pensions etc.  This can be done online on the Revenue website on myAccount.
  7. Shop smart – plan your groceries ahead of shopping and stick to your list. Use vouchers and discounts.

Talk to us today to plan your future.