Shopping around and keeping an eye on finances can save you thousands

POOR financial management and paying too much for basic services are costing consumers thousands of euro every year, say the authors of a new book.

The Taxation Advice Bureau (TAB), a leading Dublin tax consultancy, said sticking to a budget and shopping around for the best deals were critical in managing money and getting good value. TAB launched its new book, the TAB Guide on Money, Pensions and Tax earlier this week.

Sandra Gannon, TAB managing director and co-author of the book, said customer inertia was a problem and many people failed to take time to search for better value credit cards, personal loans and mortgages.

“By switching to a new mortgage, you could save up to €10,000 on a €150,000 mortgage. Your credit card could be earning you loyalty points and getting a reduced interest rate on your current debt,” said Ms Gannon.

TAB’s book aims to help readers prepare budgets to control spending, by listing all sources of income as well as items that make up essential and optional spending. Ms Gannon said everyone could benefit from a thorough annual review of their finances.

She added that shopping around for value was useful for significant items like food and insurance, but even greater savings could be had by controlling discretionary spending on less essential items.

Ms Gannon said the best way to control individual finances was to have a firm understanding of personal income and a clear picture of how much tax needed to be paid, before determining how much was available for spending.

The book is updated every year and was co-authored by tax specialist Neil Brooks. The guide contains a section on tax, which includes details of the tax changes announced in last month’s budget.

Speaking at the book’s launch, Minister for Finance Charlie McCreevy said the book would provide valuable advice for members of the public.