Teagasc advice: Test your farm’s financial fitness

Most of us struggle with managing money.

Farm families have the added challenge of balancing the needs of the farm household with the financial requirements of the farm.

Defining long-term goals for both the farm and the household can enable farm families to plan to have the funds in place to achieve these goals.

Your financial needs will vary, depending on your stage of life.

Sending children to college is expensive; can your business cope with providing for the additional expenditure? Family living expenses are often much higher than people realise; do you know what it costs to run your household?

There are many benefits to actively managing your finances.

* You will know where your money is going and whether you are spending more than you can afford.

* It will give you peace of mind and a sense of control.

* It will help you save money to achieve your future goals.

* It can help you to avoid debt problems and prepare for emergencies.

The following checklist provides a guide to your financial fitness, answer yes or no.

1. Do you read your bank statement on a monthly basis?

2. Do you know how many days you were in overdraft in 2014?

3. Do you have a farm office or dedicated office space?

4. Do you monitor your spend on household and farm utilities (ESB/phone/gas)?

5. Do you clear the credit card bill monthly?

6. If you are planning major investment, have you a business plan?

7. Have you a plan for your children’s education?

8. Are you using the skills of family members to help manage your finances?

9. Are you availing of all the supports that are available (Farm Assist/ Family Income Support/energy saving schemes/carer’s allowance, etc.)?

10. Are you able to retain your Single/Basic Payment to contribute to household income?

11. Have you considered leasing the farm, to avail of tax-free rental income?

12. Do you discuss your farm accounts with a professional?

If you answer no to any question on the checklist, you could improve your finances.

Find out how to get financially fit at one of five regional events, where Teagasc teams up with financial and support agencies to highlight the range of services and financial tools that can help you to plan, budget and take better control of your finances.

Attending one of these events could be a first step to improving your situation.

* Monday, March 23 at the Talbot Hotel, Carlow, 1pm.

* Tuesday, March 24, Radisson Blu Hotel, Little Island, Cork, 1pm.

* Wednesday, March 25, Tullamore Court Hotel, Tullamore, Co Offaly, 1pm.

* Thursday, March 26, Breaffy House Hotel, Castlebar, Co Mayo, 7:30pm.

* Friday, March 27, Anner Hotel Thurles, Co Tipperary, 1pm.

See the www.farmfinancialfitness.ie  website for more details.