Setting the right Money habits

It is the time of year again, everyone is making new years resolutions to get fit, lose weight, and give up smoking.

2020 was the year we will never forget, it changed lives in so many ways positively and negatively. Some of you could not spend money so helped you to realise how much of your income was being wasted & that could be used more efficiently.

Let us carry that into 2021 and continue to make your money work harder for you and your back pocket.

From a survey that we performed in Dec 2020, I found out that most of you feel that you do not earn enough money to get financial advice. Wrong- anyone that earns an income needs a financial plan.

I also found that a lot of you are scared and think you are going to be judged. Wrong-  there are so many advisors out there to help you put the steps in place to make the most of your money.

 

Let this be the year that you start creating the right money habits and put a plan in place to reach financial goals.

1) It’s really simple and I always say this, to be good with money, everyone needs a Personal Budget. My free Personal Budget template will help to understand where you are overspending and  keep track of spending

2) Taxes– Get to know your taxes and make sure you’re claiming back everything possible.

3) Switch & Save– Switch current account to FREE banking with EBS, Revolut, N26. They even have vaults which you can use to keep aside some money for specific savings goals.

4) If you are in Debt, clear it before everything else – put everything you have, to get rid of it. If you are in deep water – reach out.

By tackling your debt in manageable chunks using my Debt Ladder method will guarantee success.

5) Set up an Emergency funds- a minimum of €1000. To help you get started, try out my 52-weeks Money Savings Challenge to build a nice pot of money to create an emergency fund.  

There are 2 versions, in the beginner’s challenge you can save €1,378 & the advanced challenge helps you save €5,000 so there’s an option to suit your pocket.

6) Protect your income – Your ability to earn an income is your most valuable asset, whether you’re a young graduate, employed by a company or a business owner.

So what would happen if you had an accident, serious illness or a disability that kept you out of work for months or even years? Would your savings be enough to get you by? Could you live just on the Government’s Illness benefits & support, which is approximately only €203 per week?

I believe Income Protection is the one of the most important financial products you should have no matter what your circumstances are. 

7) If you’re Renting- Put a plan in place to get a mortgage and own your own home.

8) If you have a mortgage – Switch to get the best rates in the market.

9) Invest surplus Income – To help you learn more about Investing, go through the AskPaul Investment E-book. Starting from Why should you invest now? & How to decide the right investment strategy, I’ve covered it all. 

10) Start a pension & make sure you understand it.