contents topic sorting out your money step 1 know what you spend keep a spending diary use the...
TRANSCRIPT
Contents
Topic
Sorting out your money
Step 1
Know what you spend
Keep a spending diary
Use the spending calculator
Sorting out your money
Step 2
Know what you have coming in
Do an income and expense check
Sorting out your money
Step 3
Identify your financial goals
Make a money goal plan
Sorting out your money
Step 4
Future planning
Use the 12 month budget planner and expense tracker
Use the Economiser
Sorting out your money
Step 5
Reviewing (on-going)
•Online
•Calculators
•Expense Sheets
•Shopping Checklists
•Economiser
•Budget Planner
Sorting out your money
Money Saving Tips1. Utility bills2. Shop around3. Tax reliefs/Refunds?4. Entitlements?5. Credit card6. Supplement your income7. Unwanted subscriptions8. Insurance policies9. Financial product comparisons
Topic
Saving and investing
Issues to consider:
Review your budget
Pay off loans
Saving and investing
Issues to consider:
Do like for like comparisons of returns
Compare options
Get advice
Saving and investing
Issues to consider:
Understand risk
Consider security
Protect your money
Saving and investing
Short Term
Saving and investing
Medium Term
Saving and investing
Long Term
Saving and investing
Watch out for scams
Topic
Protecting your family & belongings
Bad things happen:
Burglars steal
Accidents happen
People get sick
Protecting your family & belongings
Minimise the impact:
Insurance can cover
Illness, injury or disability
Redundancy
Accident
Death
Damage or loss of goods
Protecting your family & belongings
1. Plan for when things go wrong
2. Shop around for good deals
3. Review your needs and policies
Topic
Borrowing Money
Issues to considerDo you really need it?Can you save up for it?What type of credit suits your needs? What providers / deals are available?How long should you borrow for?Can you afford the repayments?What happens if things go wrong?What’s the impact on your credit rating?
Borrowing Money
Loan €5,000
Term 5 years
APR 9%
Monthly Repayment €102.94
Total Cost of Credit €1,176.49
Comparing Loans with Different Terms
Loan €5,000
Longer Term 10 years
APR 9%
Monthly Repayment €62.39
Total Cost of Credit €2,486.97
€1,310.48 more with longer term
Comparing Loans with Different APRs
Loan €5,000
Term 5 years
APR 9%
Monthly Repayment €102.94
Total Cost of Credit €1,176.49
Loan €5,000
Term 5 years
Higher APR 13%
Monthly Repayment €111.94
Total Cost of Credit €1,716.50
€540.01 more with higher APR
Borrowing Money
Getting a Mortgage First Time
Save
Research
Shop Around
Approval
Borrowing Money
Getting a Mortgage First Time
Terms
Keep all Documentation
Tax Relief
Review
Borrowing money : Reviewing your mortgage
Why?
How?
Borrowing Money
Current Mortgage €250,000
Term 30 years
APR 4.45%
Monthly Repayment €1,246.26
Total Cost of Credit €198,653.01
Increasing Repayments & Reducing the Term of your Mortgage
Current Mortgage €250,000
Shorter Term c. 25 years
APR 4.45%
New Monthly Repayment €1,370.03
Total Cost of Credit €161,010.42
€37,642.59 less with shorter term
Switching Mortgage Lenders for a Lower Interest Rate
Current Mortgage €250,000
Term 30 years
New lower APR 4.05%
New Monthly Repayment €1,190.18
Total Cost of Credit €178,466.29
€20,186.72 less with lower APR
Current Mortgage €250,000
Term 30 years
APR 4.45%
Monthly Repayment €1,246.26
Total Cost of Credit €198,653.01
Topic
Dealing with debt
1. Prioritise your debt
List priority and secondary debt
2. Revise your budget
Budget planner
3. Contact lenders/MABS asap
Keep records of all contact
Renegotiate repayments
Dealing with debt
4. Manage new repayments
Pay the right amount, on time
5. Keep up to date
Review finances as things change
Review your budget regularly
Topic
Planning for later life
Your Pension Contributions
Your Employers Contributions (if they make any)
Government Support (by tax
relief)
Planning for later life
Starting out
Planning for later life
Early-mid career
8-10 years before retirement
At retirement
Planning for your later life
Current income
Salary
Wages
Overtime
Bonus
Retirement Income
State pension
Employer pension
Private pension
Savings
Pensions Board Calculator
Sum up slide