Consumer Corner: Money experts on how to save and protect your finances this autumn

From emergency funds to eco-friendly investments, here's how to protect your money this autumn

Consumer Corner: saving

It’s the time of year when we start packing away the summer clothes, waving the kids back to school and evaluating our lives in general. September is one of the most popular months for gym membership and for people flocking to weight loss groups. It’s one of those times of the year that forces us to change up how we do things but it can also be a time for a fresh look at your finances.

We asked some of the money experts to give us their advice on beating the post summer blues and what is the best approach to taking a look at our finances and seeing how we can change things up a little. It’s all very well to be doing well at the Couch to 5K if you can’t afford the summer holiday next year.

Paul Walsh CEO of Peopl Insurance said that when looking at your finances it should start with making sure you are financially resilient.

“Becoming more financially resilient can make a huge difference to your outlook on life and allow you to lead a more comfortable, enjoyable and fulfilling one. It should help reduce your money woes and worries, which in turn should improve your peace of mind and mitigate stress in your life. It should help you build up the financial reserves that you need to progress in life such as the deposit for your first home or the money to buy your first car.

“Becoming more financially resilient can also help you to build up a financial cushion which you can fall back on if unexpected or emergency expenses arise. All of these things are conducive to a positive mood and attitude and should therefore help you hold onto the holiday feeling for some time.”

A recent survey by Peopl Insurance found that almost half of the Irish public would need to access some form of credit to cover the cost of a sudden but essential €3,000 bill. The survey, which examined the financial resilience of the Irish public, found that almost half of respondents wouldn’t have the cash to hand or available within a month to pay an essential €3,000 bill, with a third needing to borrow.

“There are a number of steps which you can take to become more financially resilient. Getting into good money habits early on can be a big help. Clear your bills in full and on time. Budget well so that you don’t spend more money than you have coming into your household,” said Mr Walsh.

He advises having an emergency fund in the wings is also key.

“The easiest way to build up an emergency fund is to do so through a long-term savings account which you cannot access easily. 

Some financial advisers recommend building up an emergency fund equivalent to about three months of your salary; others advise setting aside a year’s salary.”

Mark Reilly, of Royal London Ireland advises not to ignore your pension pot.

“If you’re feeling downbeat after your holiday, then taking the time to re-evaluate what you have achieved in life, what you would like to achieve, and how you can get yourself into a position to achieve key financial milestones in the future and to make your life more comfortable can help.

“Whether you’re 25 or 45, one of the best and most tax-efficient ways to plan for the future is through a pension. However, it’s important that you’re saving the right amount. Many people are living longer and healthier lives today than has been the case in the past. This means they need to have more of a nest egg in the wings in retirement than previous generations who didn’t enjoy such longevity otherwise they could struggle to make ends meet, or to withstand any unexpected costs or periods of prolonged inflation, as they make their way through retirement.”

Mr Reilly said that the key to building up a suitable pension for retirement is to start saving early and to save enough into it to fund a comfortable lifestyle at retirement. “Take full advantage of anything that will make it easier for you to save up the pension you will need in retirement including the tax relief on pension contributions and any company pension scheme available to you.”

Your grocery shop is another way that you can make some changes and even help the environment too. Michael Kavanagh, CEO of Compliance Ireland said try to buy as many eco-friendly products as possible checking that the packaging is recyclable is key here.

“Investing in ‘green’ or sustainable investments is another way you could do your bit for the environment. There are a number of steps which you can take yourself to boost your chances of investing in genuine green investments or buying eco-friendly products. For example, where a company or fund makes claims they are green, look for the evidence which backs up those claims. I would suggest finding out what the company has done, and plans to do, to support its claims that it is green.”