Monthly Archives: January 2013

  • How could a budget improve your relationship? How could a budget improve your relationship?

    How could a budget improve your relationship?

How could a budget improve your relationship?

According to an article in the Irish Independent yesterday, over 80% of couples seeking help with their relationship have encountered financial difficulty.  Many of these couples have said that mounting debt is affecting their relationships.  As part of the advice being given, perhaps these couples should be shown how to set up a household budget.

In most Irish households, one person has the responsibility of paying the bills.  To avoid further arguments about money, both parties need to get involved in dealing with the financial side of things.  A budget can bring a couple closer together as they identify and work towards common goals and indeed help the whole family focus on common targets.  A budget can improve the relationship as it will help a couple take control of their money instead of it controlling their relationship.

A budget might reveal areas where one or both of you have been spending too much money and will help you refocus on your most important objectives.  Both of you need to agree that the aim of setting out a budget is to set out a spending plan for the future and although one or both persons might be found “guilty” of overspending, it is time to draw a line in the sand and start afresh.  This budget is going to show you how much the household is in debt, if at all, and by putting a structure on future bill payments, it will help you get out of debt.

So where do you start?  Together, gather all your bill information such as the amount, frequency and due dates of every bill you pay.  Have your recent bank statements to hand. Go to www.billsmanager.com.  Follow the simple, step […]

By |January 29th, 2013|blog|0 Comments
Read More
  • How is your Household Budget spent? How is your Household Budget spent?

    How is your Household Budget spent?

How is your Household Budget spent?

Do you know how your household budget is spent?  People do not have an infinite amount of money, so they have to prioritise how they spend their household budget.   This means every household has to decide what they consider the most important and this is where their money is spent first.  Typically, in a household budget this is the mortgage/rent, light and heat, food and transport.   The household expenditure can be divided into three types, fixed, irregular and discretionary.

Fixed expenses are the bills that have fixed due dates and fixed amount.  Bills such as Mortgage repayments, Rent, loan repayments, car tax, car and house insurance, life assurance and TV Licence are examples of fixed expenses.  These are an easier type of bill to budget for.

Irregular expenses are the bills that have fixed due dates but the amount due will vary each time the bills issue.   Bills such as Electricity, Telephone, Heating, Petrol, car maintenance, grocery shopping. Although more difficult to budget for, these bills should be allocated an estimated amount in the household budget and can be adjusted for as each bill is paid

Discretionary expenditure is what the name suggests, optional or flexible expenditure.  These bills are dependent on the wants or wishes of the household.  These include holidays, entertainment, hobbies and clothing.  These bills should be included in the household budget.  They should be allocated a set amount and this figure should be adhered to.

Ideally all discretionary expenditure should be planned spending as opposed to impulse buying.  Impulse buying is where a person spends money on the spot without prior thought or planning and is dangerous as you could be spending money that should be used to pay an important bill.  Knowing what […]

By |January 28th, 2013|blog|0 Comments
Read More
  • Save Money on your Energy Bills Save Money on your Energy Bills

    Save Money on your Energy Bills

Save Money on your Energy Bills

You can save money on your energy bills by looking at who is giving the best offers and switching to the provider that is offering the cheapest energy.  Save money by checking out the prices being offered by the various providers including the one you are currently with.  Energy providers are in a very competitive world and are constantly changing their offers to entice new customers.  According to an article in the Irish Independent today if you are currently with a provider and have not signed a new contract, it is likely that you have been switched back to their standard rates.

Generally speaking when you sign up to a “deal” or “plan” it is for a specified period of time, perhaps 12 or 18 months.  When this period of time has elapsed, in most cases you revert back on to the standard rate plan being offered at that time.

For instance, take someone who has never switched electricity provider and are still with ESB, now known as Electricity Ireland.  Unless the customer contacted ESB to switch to a cheaper plan at the time they launched as Electricity Ireland, they will have remained on the standard rate.  This switch could have saved them as much as €250 per year.  In order to obtain their cheapest rates you need to contact them they will not call you to switch your account over to the cheaper plans.  So be proactive, start surfing or calling, and save your hard earned money.

Use common sense to save money on your energy bills by making a couple of small changes in your house.  Maintain your heating system/Boiler by getting it serviced annually or at least every 2 years to make it […]

By |January 25th, 2013|blog|0 Comments
Read More
  • Household budget affected in all sections of Irish society Household budget affected in all sections of Irish society

    Household budget affected in all sections of Irish society

Household budget affected in all sections of Irish society

Household budget affected in all sections of Irish society

It is clear from a report issued today by the Irish League of Credit Unions ‘What’s Left’ tracker December 2012 that the Irish family household budget is under pressure across all sections of Irish society.

The result of the report was that as many as 1.59 million adults are left with €50 or less at the end of a month once their essential bills have been paid.  It also indicated that almost half of adults living in Ireland are struggling to pay their household bills on time and more than half believe that they will be hit with even worse financial difficulty this year.   The recent budget  has had a negative effect on 8 out of 10 adults with property tax, changes in the PRSI threshold, increases in motor tax and cuts to child benefit all having an impact.

Families are faced with very difficult challenges in making their household income stretch to pay for essential day to day living.  41% of the people surveyed said they had to sacrifice spending on other household items such as food in order to pay their energy bills as a result of energy costs increasing with 9 in10 people reporting that increases in this area have had an impact.  Not surprisingly, grocery shopping overtook utility bills as the second most expensive essential bill after rent and mortgage, but this is probably due to the increase in food bills over the Christmas period.

If you haven’t already set up a system of tracking your household spending, now is the time to start.  A household budget will help you to keep track of your spending and let you know how much you need […]

By |January 17th, 2013|blog|0 Comments
Read More
  • Gift Vouchers – Easy gift choice but how safe is your money? Gift Vouchers – Easy gift choice but how safe is your money?

    Gift Vouchers – Easy gift choice but how safe is your money?

Gift Vouchers – Easy gift choice but how safe is your money?

Gift vouchers are very popular gifts to give at any time but how safe is your money.   As much as 55% of the gifts received by adults at Christmas time are in the form of a gift voucher.  How many of these are put away in a drawer and forgotten about until after their expiry date.  Is this a waste of your hard earned money?

There is also the possibility of not getting the chance to spend the voucher due to business closures. I read today in the Irish Independent that a grandfather walked out of a HMV store on Henry Street, Dublin yesterday with games to the value of €46.80 without paying for them.  He had purchased a gift voucher for his grandson as a Christmas gift.  The shop assistant refused to accept the gift voucher for the value of €40 towards the payment for the three games.  He decided to walk out of the shop with the goods as he was not prepared to accept their refusal to honour the gift voucher.  He was quoted to have said “We are a nation of sheep, but I was determined to win this”.  He intends to post the voucher and the balance of money to the HMV store so they will have to take it.  This is in the light of HMV going into receivership.

You can minimise the risk of losing your money on gift vouchers by knowing your rights.  Check out the National Consumer Agency website for advice on purchasing gift vouchers.  You should always check the terms and conditions, expiry date etc. and inform the recipient of these terms.  Purchase the type of vouchers that can be used in a number […]

By |January 16th, 2013|blog|0 Comments
Read More
  • How to save money on your Shopping Bill How to save money on your Shopping Bill

    How to save money on your Shopping Bill

How to save money on your Shopping Bill

You can save money on your household shopping bill by making a few changes to how you shop.   Follow the golden rules and you will save money on your weekly grocery shopping bill.

Make a plan and stick to it.  Set the day in the week for your weekly grocery shop.  Begin your list by deciding on lunches and dinners for the week ahead.    Check your fridge and presses to see what you already have and list off the items you need to get.  Then add to the list your breakfasts and whatever toiletries need to be replenished.

Go shopping when you are busy and have very little time.  Try to do your shopping between two appointments.  So when you go to the shop, with your list, you will have no time to peruse the shelves and will avoid temptation.

Never go shopping on a hungry stomach.  You may be listening to your tummy instead of sticking to your list.

Do not be tempted to put anything into the shopping trolley that is not on your list, be strict and you will save money by avoiding impulse buys.

Cash is King.  Do not bring your credit card when doing your weekly shop as this gives you extra spending power to buy “off plan”.  Use Cash or Laser/debit card.  If you are using your hard earned “cash” to pay for your shopping you will think twice before making any impulse buys.  Keep the credit card for those well thought out “planned luxury” purchases.  The Irish are well able to spend on their credit cards as per an article in The Irish Times today.

After Christmas we all feel the pinch of our spending spree on the credit card and that […]

By |January 15th, 2013|blog|0 Comments
Read More
  • How to save money on the cost of running the family car How to save money on the cost of running the family car

    How to save money on the cost of running the family car

How to save money on the cost of running the family car

How to save money on the cost of running the family car

The cost of running a family car is becoming more and more expensive and a larger chunk of the household budget.  Where can you save money when costs are increasing all the time?

Apart from the ever increasing cost of petrol and diesel, there have been increases across every aspect associated with driving a vehicle.  Budget 2013 brought increases in Motor Tax and driving licences also. Female drivers, in particular those under 30 years of age, will be affected by higher insurance premiums with the introduction of the EU ruling last month whereby Insurers can no longer calculate premiums based on gender.

So where can you save money on the cost of running the family car?  Firstly, shop around for your car insurance to ensure you get the cheapest quote.  Avoid paying the insurance premium monthly as paying it annually is often the cheapest option.

You can save money by shopping around for your petrol or diesel.  Use the website www.pumps.ie to check out the prices in your locality or to find the cheapest service stations you can refuel at on your journey.

Get the most of your petrol/diesel by making sure your tyres are properly inflated.  Under-inflated tyres can cause fuel consumption to increase by as much as 4%.  Keep your car well serviced and check the oil level regularly.  Remove unnecessary weight from your car as the heavier the load the more fuel the car consumes.  Only use air conditioning when necessary.  Drive smoothly at reasonable speeds and avoid braking hard.

Consider car sharing for regular journeys such as bringing the children to school or after school activities.  Agree a rota with a friend or […]

By |January 14th, 2013|blog|0 Comments
Read More
  • Irish Households to pay a bill for Domestic Water in 2014 Irish Households to pay a bill for Domestic Water in 2014

    Irish Households to pay a bill for Domestic Water in 2014

Irish Households to pay a bill for Domestic Water in 2014

Irish Households to pay a bill for Domestic Water in 2014

According to the Irish Independent yesterday, the average Irish household will face an extra bill next year for the new water charge of €370 approximately.  Charging this bill in the same year that we will be hit with a full year Property Tax will possibly be the straw that breaks the camels back for most households.

It is expected that a metered system will not be in place until 2016 so we may receive a billed for a flat rate assessed system based on average use.  This means that although we may educate our children – at home and in our schools – to be water aware and about conserving water, there will be no rewards for the householders who are mindful of their water use and do not waste water.  The intention is to give each household an annual allowance of water, free, which apparently will cover basic needs such as sanitation and thereafter any other use will be charged.  The amount of free water we get on each bill will be a decision for the independent regulator, the Commission for Energy Regulation.

In 1994, when water charges were introduced on a flat rate basis, a huge campaign against them resulted in abolition of them 2 years later.  This time round it is unlikely that there will be disconnections for non-payment of your water bill but you may suffer a reduction in water pressure which could mean that your washing machine or dishwasher will be out of action.  You may also have an unpaid bill registered against your property if you decide not to pay.

It is becoming more and more difficult for most Irish […]

By |January 11th, 2013|blog|0 Comments
Read More
  • Save Money by Switching Provider Save Money by Switching Provider

    Save Money by Switching Provider

Save Money by Switching Provider

Save Money by Switching Provider 

Checking around for the best price on anything that you buy might seem like the obvious thing to do to save money.  Apparently only 2 fifths of Irish households have saved money by switching their energy provider according to a recent article in the Irish Independent.

In the current climate, there are very few households that can afford NOT to look at deals to save money.  The comparison website www.Bonkers.ie is a very helpful tool to anyone looking to save money.  It will help you find out which energy provider can offer you the best deal so you can save money on your Gas and Electricity bills.  You could save more than €250 per year if you switch from standard rates to the better discount rates offered.  Bonkers.ie will also compare Television and Broadband providers amongst other services such as services provided by banks etc.

According to a study commissioned by the National Consumer Agency only one third of consumers have switched provider for their banking, insurance or energy.  These numbers are very low considering the pressure all households are under.  It only takes a couple of minutes to key in your details and it could mean substantial saving for you.

Another area where savings can be made is your Mortgage Protection policy.  The premiums have fallen over the last couple of years so now is the time to talk to your broker about getting a new quote and saving yourself more money. Or you can go online to get a quick quote.

We are going to feel the pinch when all the additional charges to each household kick in if you have not already felt them.  There are some bills […]

By |January 10th, 2013|blog|0 Comments
Read More
  • Money management – 13 biggest common money mistakes Money management – 13 biggest common money mistakes

    Money management – 13 biggest common money mistakes

Money management – 13 biggest common money mistakes

Money management – 13 biggest common money mistakes

Forbes has outlined the 13 biggest money mistakes that people commonly make. It is a very interesting read.  Number 1 on the list is not saving enough money for your retirement.  It is never too early to plan for your retirement but in the current climate many people don’t have the money to put aside at the moment.  If you have to put this off for a while, don’t leave it on the long finger.

At number 2 is “not having a game plan for getting out of debt” This is very common and if you don’t have a plan to get yourself out of debt, it is going to be very hard to get out of debt.  Having a game plan is simply sitting down listing all your income, expenditure and debt to see what you can afford.  This will help you with spending decisions as you work your way out of debt.  You are creating a budget. Number 4 on the list is “not having a budget.

Not having a budget unless you have more money than you can spend does not make financial sense.  A budget will show you exactly where you stand with your income and expenditure. You can see if you have any surplus money which you could save for your retirement or other larger expenses. It will also tell you if you are spending too much and need to reduce your spending.

Many people who do not budget can end up living from paycheck to paycheck, which comes in at number 5 on the list.  Without managing your money properly, you can end up living from month to month and loose control of […]

By |January 9th, 2013|blog|0 Comments
Read More