TIPS for ‘Minding your Money’
10 December 2009
In these times of recession everyone needs to hold their purse strings just a little tighter, yet we cannot stop living and doing things we enjoy, therefore Macra na Feirme the rural youth organisation has teamed up with Bank of Ireland to offer some tips to help young people look after their hard earned Euros and make them stretch a little further.
Managing your money -often easier to do this monthly rather than weekly, regardless of when you are paid.
Firstly, calculate your income - your own, your partner/spouse plus any extras e.g., Mortgage interest relief, Child benefit, overtime.
Secondly, calculate your spending – two broad categories – Essentials eg household bills, Mortgage payment, Rent, plus Leisure – day-today expenses, entertainment, clothes.
Now, identify any areas you might need to make changes. Your Budget will give you a quick insight into your finances. A few tips to help you manage:
• Keep a diary of what you spend, you will quickly spot what are essentials and what you can do without
• Use 365 phone and online services to keep an eye on your finances, day or night, at home or abroad. Also allows you pay bills, pay credit card, transfer money and many other services.
• Shop around for bargains, many ‘2 for the price of 1’ offers around.
• Pay Bills by direct debit so you will never miss a payment and incur unnecessary costs.
• Make a plan and be definite about what you need.
• Prioritise your necessities and keep track of your un-essentials – buying lunches, take away coffees.
Debts and how to deal with them – Debts can creep up on you, but if you keep an eye on your
finances you may be able to prevent it. If you find yourself in debt, a few tips to help you start to clear it:
• Don’t ignore it – debts do not go away on their own
• Look at making some cutbacks – you may be surprised how much you spend on ‘luxuries’
• Do a thorough analysis of your day-to-day spending
• Talk to your Banker early – the sooner you do this the sooner you will be able to get help. They will work with you to try to find the best solution
Borrow sensibly – A loan or overdraft can help smooth out the gaps between what you earn and what you spend. An overdraft can provide flexibility with day-to-day spending form month to month while a loan can be used to buy larger purchases e.g. a car.
Some tips for you:
• No matter what you borrow for, choose an amount and term which you can comfortable afford.
• Select an interest rate that suits your circumstances – a fixed rate to ensure you pay the same amount each month for the term of the loan, a variable rate may go up and down but gives you more flexibility.eg, you can pay lump sums to clear the loan early
• An overdraft facility will have an agreed limit, stay within this limit to avoid extra charges.
• Design your payment schedule to suit you, and when you are paid.
A credit card can offer a convenient and flexible way to buy things without carrying cash. A few tips to help you manage your credit card:
• Set up a Banking 365 online account and keep a close eye on your card usage.
• You usually have 56 days interest free credit so be sure to pay your balance before interest is due.
• Set up a direct debit for your minimum payment and avoid fees and penalties.
• Know you limit and keep within it.
• Credit card debt is expensive so if you feel you are unable to clear it, talk to your banker and they will work with you to find a solution
Planning for the future - there are plenty reasons to save, but often we find other ways to spend.
A few tips to help you get started:
• Investments – savings for a rainy day – check how much you can afford to save and talk to your banker to find out which option suits you best e.g., short-term or long-term and which interest rate applies
• Insurance – just in case – many different options available to help you steer clear of unexpected difficulties e.g. life cover, critical illness cover, mortgage protection cover.
• Pension – planning for your retirement – A pension is a tax effective means of saving for your retirement to enable you to continue to enjoy life when you no longer work.
Finally for a great social life, with competitions, nights out, training, trip and great craic join your local Macra na Feirme at €40 per year for Membership it will be the wisest decision you make.
On behalf of Bank of Ireland, ’I would like to confirm we are here to work with you and support you in finding the best route forward. We want to keep in touch and provide you with all the assistance and guidance that you require. Our doors are open, do call in.’
