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Financial Management: Budgeting, Saving, Investing, Borrowing, Insurance, and Planning for the Future

Learn how to sort out your money by making a budget, pacing your spending, identifying potential savings, and measuring your progress. Discover tips for saving money and find out how to protect your family and belongings with insurance. Explore borrowing options and learn about planning for later life. This comprehensive guide will help you take control of your finances.

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Financial Management: Budgeting, Saving, Investing, Borrowing, Insurance, and Planning for the Future

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  1. Contents Sorting out your money Borrowing money Saving and Investing Dealing with debt Insurance Planning for later life

  2. Topic Sorting out your money

  3. Sorting out your money – Why make a budget? Pace your spending Writing it down makes it real Plan ahead Identify potential savings Measure your progress

  4. Sorting out your money – 5-steps to success! Step 1 Spending diary Step 2 Income & expense check Step 3 Money goals

  5. Sorting out your money – 5-steps to success! Step 4 Plan ahead & make a budget Step 5 Keep your finances under review

  6. Sorting out your money – Money Saving Tips Ask for discounts • Shop around for: • Insurance • Credit cards • Bank accounts • Utilities • Groceries • Petrol Unused Subscriptions • Helpful online tools: • www.consumerhelp.ie • Financial Product Comparisons Tax reliefs/ refunds/ entitlements

  7. Topic Saving and Investing

  8. Saving and Investing • Review your budget • Pay off loans • Do like for like comparisons • Compare options

  9. Saving and Investing • Understand risk • Consider security • Protect your money • Get advice • (Section 31 Register Investment Product intermediaries www.centralbank.ie)

  10. Saving and Investing Watch out for scams ‘Phishing’ for your bank details Fake Lotteries “You’ve won!!!” Premium rate calls / texts Computer repairs/anti-virus software

  11. Topic Insurance

  12. Insurance – Protecting your family & belongings Minimise the impact: Damage to house/goods (house insurance – building / contents ) Motor Illness, injury or disability Accident Death (life assurance)

  13. Insurance – Protecting your family & belongings • Plan for when things go wrong • Shop around for good deals • Insure for the correct amount • Review your needs and policies

  14. Topic Borrowing money

  15. Borrowing Money - Questions to ask yourself • Could you save up for it? • What type of credit suits your needs? • What providers are available? • How long should you borrow for? • Can you afford the repayments? • What’s the impact on your credit rating if you miss a payment? (www.icb.ie)

  16. Borrowing Money - Comparing Loans Loan €5,000 Term 3 years APR 12.7% Monthly Repayment €166.11 Total Cost of Credit €979.92 Loan €5,000 Longer Term 5 years APR 12.7% Monthly Repayment €111.26 Total Cost of Credit €1,675.71 €695.79 more with longer term Loan €5,000 Term 3 years Higher APR 14.9% Monthly Repayment €170.82 Total Cost of Credit €1,149.34 €169.42 more with higher APR Loan €5,000 Longer Term 5 years Higher APR 14.9% Monthly Repayment €116.26 Total Cost of Credit €1,975.79 €995.87 more with longer term and higher APR

  17. Borrowing Money - Getting a Mortgage First Time • Save • Shop Around • Approval • Keep all Documentation

  18. Borrowing Money - Reviewing your mortgage Increasing Repayments & Reducing the Term of your Mortgage Current Mortgage €250,000 Shorter Term c. 25 years APR 4.45% New Monthly Repayment €1,370.03 Total Cost of Credit €161,010.42 €37,642.59 less with shorter term Current Mortgage €250,000 Term 30 years APR 4.45% Monthly Repayment €1,246.26 Total Cost of Credit €198,653.01 Lower Interest Rate Current Mortgage €250,000 Term 30 years New lower APR 4.05% New Monthly Repayment €1,190.18 Total Cost of Credit €178,466.29 €20,186.72 less with lower APR Current Mortgage €250,000 Term 30 years APR 4.45% Monthly Repayment €1,246.26 Total Cost of Credit €198,653.01

  19. Topic Dealing with debt

  20. Dealing with debt- Reviewing your mortgage

  21. Dealing with debt • Prioritise your debt List priority and secondary debt • Revise your budget Budget planner • Contact lenders/MABS asap Keep records of all contact Renegotiate repayments

  22. Dealing with debt • Manage new repayments • Pay the right amount, on time • Keep up to date • Review finances as things change

  23. Topic Planning for later life

  24. Planning for later life – Mind the Gap! Current income Salary Wages Overtime Bonus Retirement Income State pension Employer pension Private pension Savings Pensions Authority Calculator

  25. Planning for later life – Career stages Starting out 10 years before retirement At retirement

  26. Planning for later life For more information: • Contact your HR department • Check out www.consumerhelp.ie and www.pensionsauthority.ie • CCPC Consumer Helpline 1890 432 432 • Get advice if you need it

  27. To Sum Up Sorting out your money Borrowing money Saving and Investing Dealing with debt Insurance Planning for later life

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