3 Money Saving Tips and Tricks

As we enter the summer months, the evenings are long and holidays are close at hand it is often hard to pay any attention to your finances. And rightly so, I am a big believer in taking time to recharge if at all possible.

So, with one eye on summer holidays I decided to highlight just 3 simple money saving tips that all of us can utilise that we often overlook.

1. Tax

So, for anyone who pays tax there are some tax savings tips which we can use to reduce or save tax. We can also claim tax back for the last 4 years, so if any off the below relates to you then you can claim back to 2013 and get a refund from the revenue for all the years since.

a. Did you get married? – If you did get married then you can mix and match your tax credits and high rate tax cut off points, so if either you or your spouse is earning less than €32,800 and the other is earning more than €32,800 then you can adjust your credits and/or bands and reduce your tax bill.
b. Medical and Dental Expenses can still be used to reduce your tax bill. You get 20% of the value of your expenses refunded to you if you submit a medical expense’s return to the revenue.
c. EIIS Investments – These are investments that qualify for 40% tax relief over 4 years. Rental Income and ARF Income can used here too making this type of investment very attractive for anyone with rental/pension income. Tax relief is claimed at 30% in year 1 and 10% in year 4. So, an investment of €20k for example only costs an investor €12k once the tax relief is factored in.

2. Insurances Costs

The costs associated with your mortgage protection and your life insurance policies should be reviewed, and we are happy to help in this regard as we have access to all the providers costing in Ireland.

The insider knowledge here is that these providers want more business. To attract more business, they try to either improve their product or reduce their price. For example, Zurich, Royal London and Aviva are offering discounts on their protection products and these discounts are deducted from the cheapest premium available on the market.

If you took out your mortgage protection, life insurance or serious Illness cover with your bank its very likely we could save you money every month going forward.

3. Pensions

Pensions, yes you have heard me bang this drum before, but they do make a whole lot of sense and they do save you a whole of money!

Pensions still allow for generous tax relief at your highest rate of tax so either 20% or 40%. Over a career not only will a pension save you a small fortune in tax that you otherwise would have had to paid to the revenue but it saves it for a time when you will need it most, when you stop earning an income!

Pension can be paid monthly or indeed can be paid as a lump sum and against last year’s tax bill so there are no excuses, pensions just make sense.

If you need help with any of the above please feel free to get in touch. As always, we will be happy to help if we can.

You’ll get me on nick.lawlor@newbeginning.ie or call Kathy on 01 531 0571.

Chat soon,
Nick

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