How to budget effectively
Today, it is reported that families face higher broadband and TV costs.
So, when it comes to personal budgeting, keeping your finances visible is essential. This is especially important for those that use paperless billing and pay using Direct Debits, costs can become invisible if one does not review regularly.
On an annual basis, set some time aside to review your household budget. This includes income and spending. Look for ways to claim back tax (if you have various medical expenses, have you filed your Med1 form in the last year? Have you ever considered the Rent-a-Room €14,000 tax free option? Have you availed of the Tax Saver option for tax efficient public transport?
When it comes to expenses, when is the last time you reviewed the cost of what you pay for car fuel, or if you use it, home heating oil? if you have a pension from a previous employer, have you considered switching it for lower fees? Do you know what OCF, TER, AER mean? You should, your future financial wellbeing depend on you knowing the basics. Have you done your homework on the real cost of a PCP car finance deal – a car loan might be more cost effective!
You see, if you allow your personal finances to become invisible, you are probably just throwing money away. So, look for more ways to increase your income and reduce costs. Doing this once per year is a small sacrifice that can yield big rewards.
The bottom line is put yourself first, take control, take action and keep more of your money in your pocket!
MoneyWhizz promotes better money habits with a series of on-site FREE talks on Budgeting and Money Management. To learn more or to book a talk, visit our website!