Let’s face it. This isn’t the easiest time to save money. With soaring rent prices, crazy taxes (even with the reliefs provided in the 2022 Budget) and retail markups, those few extra coins are hard to come by. But fear not! There are a few tips and tricks for saving money that you can use to prep yourself for 2022.
Being mindful of your finances and learning how to save money is a great way to prevent impulse buying. If you are trying to save money, here are tips that will help you out if you live by them! I’ve used these tips myself, and they made a massive difference to my bank account.
Here are a few money-saving tips for 2022:
1. Leverage all the tax reliefs you’re owed
There are several tax reliefs that Irish citizens and residents are entitled to. You can leverage these reliefs to grow your savings. Some of the significant tax credits and reliefs you can claim include:
- Medical expenses
- Persons with disabilities
- Marriage
- Separation and divorce
- Death
- Single Person Child Carer Credit (SPCC)
- Third-level fees
- Bike to Work Scheme
The government also introduced tax reliefs for expenses such as internet, heat, and electricity incurred by employees working from home.
To claim these reliefs and credits, you should file your taxes correctly and apply for a refund. It’s advisable to consult a professional accountant to help file your tax returns, so you don’t miss anything.
2. Switch your mortgage
This is an area that offers an excellent opportunity to save money. Unfortunately, many people don’t know about it. The benefits of switching your mortgage include lower rates from many lenders and even cashback from some. If the current rate for your mortgage is over 3.5%, then you could benefit from switching your mortgage.
The more considerable the mortgage, the more significant your savings will be if you make a switch. For example, you can save over €12,000 in more than three years from switching to a €300,000 mortgage. This includes cashback offers.
According to the Central Bank, there were 728,000 mortgages in Ireland as of March 2021. 182,000 of them were eligible for mortgage switching. Yet only four percent (7,000) switched their mortgages.
3. Switch your energy supplier
You can easily save about €600 per year by just changing your gas and electricity supplier. It’s the same electricity and gas regardless of who you’re buying it from. So why pay more for it? It doesn’t get more straightforward than this. Always go for the best price! New suppliers are also entering the market and offering enticing deals.
4. Tone down your non-essential spending
Cut down your spending on non-essential items. The best way to do this is by spending cash so you can feel the pinch of spending on things you don’t need. According to research, you’re likely to spend more when you purchase using a credit card than cash. You can go up to thousands of euros if you can curb your urge to splurge.
If you make online purchases, don’t sign up for marketing emails that will entice you with “offers.”
5. Pay your debts
Debt isn’t necessarily a bad thing. But when they become a black hole for your savings, then you need to deal with them. Besides student and mortgage loans, which are usually low interest, debts can sink you and should be avoided whenever you can. Please start with the most expensive debt (credit and debit card debts) and pay them down. You can even use the interests saved on one debt to pay off another.
Bonus: If you are a drinker or a smoker, you know that alcohol and cigarettes have always been targeted to increase taxation to raise revenue. They are therefore becoming increasingly expensive. Cutting down on the two can help you save around €4,000 per year.
These money-saving tips can help you to get started on building your savings account and being more financially stable. They are minor changes you can easily make in your life, but the impact is huge. If you need help making big saving decisions such as investing in stocks and pension funds, we’d be glad to help.
Get in touch with Coffey and Co. today.