“I earn good money but never seems to have enough. Do you have any tops to help me get my spending in order?”

Thanks for your question. The obvious answer is to get advice from a Financial Broker but in the meantime, here are a few suggestions of things to avoid.

1) Spend now, pay later

Don’t throw your money away when you’re young, assuming you’ll be richer when you’re older. People in their 40s and 50s actually have the most financial problems. Enjoy your financial freedom when you are young, but don’t squander it.

2) Fail to save

Too many people claim they can’t afford to save while blowing their cash on gadgets they don’t need, clothes they never wear, digital TV channels they can’t find and nights out they regret in the morning. Set up a savings direct debit, so you don’t notice the money leave your account. Then have fun with what’s left.

3) Only pay the minimum on your credit card

Say you owe €5,000 on a credit card at an APR of 18.9%. If you only make the minimum repayment every month, you could take an incredible 50 years and nine months to clear that debt and pay €12,182 in total interest.

4) Fall for get-rich-quick schemes

If you think you can get rich by day trading shares, replying to letters from Nigerian princes or sending cash to claim the jackpot in a Spanish lottery you never entered, you will always be poor.

5) Drive like a boy racer

The more you rev, the more petrol you burn. Driving at 70 mph uses 30% more fuel than 60 mph. A speeding conviction adds to the typical premium, being caught using a hand-held device can add more.

6) Get addicted

Addiction comes in many forms, all expensive. A 20-a-day smoking habit can cost over €5,500 a year. A morning latte and muffin could eat up over €2,500. Serious addictions such as gambling will leave you broke.

7) Lie to yourself

Please don’t kid yourself that you don’t need a pension because you plan to work till you downsize to a cheaper property / scoop a massive inheritance / live fast, die young / win the Lotto. Everyone needs a pension and plan for retirement

8) Impulse buy

The odd impulse buy is fine, but don’t turn it into a lifestyle. Wait at least 24-48hrs and if you still want it then, please have at it.

9) Be loyal

Loyalty is an admirable trait… in a dog. But it’s daft to be loyal to your bank, insurer, or utility company. Loyal customers get worse savings, mortgage, and credit card rates, and pay more for their insurance and energy. Stay loyal, and you’ll be treated like a dog.

10) Hoard your old stuff

Don’t let your belongings gather dust, turn them into cash. Web sites like Donedeal.ie or Adverts.ie make it quite easy to cash in on unwanted items

11) Trust Sales People

Everybody knows you shouldn’t trust a sales person, but we still do. The result: unsuitable pensions, endowments, payment protection insurance and plenty more. Your life savings are on the line. Be wary. 

12) Rely on somebody else

Love is a wonderful thing, but so is self-reliance. Too many people rely on their partner for a pension, only to end up divorced and broke for example. 

This article aims to give information, not advice. Always do your own research and/or seek out advice from a Financial Broker before acting on anything contained in this article.

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