Savings & Investments

5 Ways to Help Save You Money

Nick Charalambous22nd Jun 2018 • 6 min read

Negotiate your home & car insurance bills.

Many people including myself have WAY too much insurance! I pay €15 a month for insurance on my iPhone in the event that it breaks or is lost or stolen. Recently, I was barely able to see my phone through all the cracks and instead of using my insurance and sending my phone away to be fixed for free, I decided to bring it to the nearest phone repair shop and ended up paying €50! Why did I do this? Well, because I didn’t really have the time or patience to wait around for my phone to be ready. Realistically I could save up to €180 a year if I didn’t have phone insurance, but the question is do I really want to risk it?

By shopping around, and re-evaluating the different types of insurances you have, you may be surprised at the amount of money you could potentially save. It may also be worthwhile to simply call your insurance companies and ask for a discount. However, I would personally suggest arranging to speak to a financial advisor for a free financial review in order to gain an understanding of how to manage your personal finances.

Eat out less & have fun for FREE.

Eating out and trying new restaurants is really fun and enjoyable but unfortunately, it can be extremely costly. If you were to sit down and add up all the money you spent on eating out every month you’d be shocked at the figure! Eating out less could save you at least €100 if not more every month! For example, that extra €100 at the end of each month could be used to start a Zurich Easy Access Savings Plan which would help couples and young families get on the property ladder sooner rather than later. You can also save more money by taking part in activities that are fun and free. Physical activity doesn’t cost a dime, especially when doing so outdoors. Running, walking, going on hikes, swimming etc. are all fun, free and healthy ways to spend an afternoon. Visiting local tourist attractions such as browsing around the English Market, ringing the Shandon Bells or taking a trip to Fitzgerald’s Park. The moral of the story is you can have just as much fun for free!

If you smoke, then stop.

Are you worried and stressed about how you’re going to meet educational costs for your children in the future? It is currently estimated that a child’s education costs €10,000 per year! If you are a smoker you should really think twice about purchasing your next packet of cigarettes. In a recent article written by the Irish Independent, a businessman from Belfast explained how he saved €15,000 over three and a half years after he quit smoking. Smoking is an extremely expensive and detrimental habit to one’s health. The average packet of cigarettes now costs €12. A person who is a heavy smoker and smokes one packet every day would end up spending around €4032 every year! Stop smoking now and save for your children’s education. At the end of the day whats more important? You can check out our savings calculator to figure out how money you should be saving to prepare for a very expensive few years ahead.

Write a blog.

Blog writing and blogging has taken the world by storm and many people have now turned to read blogs rather than books or articles. Although, blog writing isn’t a way to cut expenses it can be a way to help save you more money. If you’re the type of person that enjoys writing and is able to produce some good quality reading material, well then blog writing may be the perfect hobby for you! If you become a popular blog writer who gains an audience it can be a very handy way to make a little extra money every month. If you are interested in starting a blog, there are plenty of tutorials online to help you prepare

Other ways to save money

Bring your lunch to work.
Make meals in bulk.
Take public transport or walk or ride your bike.
Drink tap water rather than buying bottled water.
If you’re a student, use your student ID everywhere.
Don’t pay ATM fees.
Use cold water when washing your laundry when you can.
Go to the library for free books, movies, and more.
Rent out spare rooms in your home to students such as foreign exchange students,
Always have a list before you go to the supermarket to avoid impulse buying.
Keep your car well maintained and ensure everything works properly. This can prevent expensive surprises in the future.
Reduce your utility bills by trying to find ways to use less water, less electricity, and more.

Nick Charalambous

22nd Jun 2018

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Savings & Investments

Maximise your savings and make your money work harder for you

In Ireland, it has been revealed there is over €100 billion sitting in deposits across Ireland earning less than one percent – even when there is a wide range of saving and investment options available. It’s no secret that it can be challenging to decide where to put your hard-earned money to avoid it being eroded by inflation and sometimes you just don’t know who to go to or where to start.

To ensure your money is working at its fullest potential, check out these four essential savings strategies:

1. Segregate Your Savings by Time

Categorise your savings into short-term (next five years), medium-term (five years to retirement), and long-term (retirement and beyond) “pots.” This structure allows you to align your financial strategy with your timeline and risk comfort level.

For example, short-term savings should be in secure, low-risk deposit accounts.
Medium-term savings can include options like ETFs or diversified investment accounts with potential returns over 5% annually but may come with moderate risk.
Long-term savings, such as pensions, not only offer higher growth potential but also significant tax advantages.

2. Shop Around for the Best Rates

Once your savings are categorised, finding the best rate for each time period is crucial. While traditional Irish banks like AIB and Bank of Ireland offer low deposit rates, foreign online banks like Raisin, Trade Republic, and Bunq can provide more competitive interest rates of over 2% annually (before tax). Revolut’s entry into the Irish market has opened eyes to these options, demonstrating that better rates are achievable. For monthly savings, AIB and Bank of Ireland do offer rates as high as 3% (as of November 2024), but understanding the terms is essential to maintain those benefits over time.

3. Understand Fees, Charges, and Taxes

Hidden fees and tax implications can eat into your savings. For instance, while Revolut and N26 accounts may have additional fees, Trade Republic and Lightyear typically do not. When investing for the medium term (five years or more), fees set by brokers can vary widely. High management charges or contribution fees can erode your potential returns, so it’s important to choose wisely and compare offerings. Additionally, some accounts are taxed differently, so knowing the details is key to optimising your returns.

4. Seek Impartial Financial Advice

While it’s tempting to rely solely on personal research, getting impartial financial advice ensures a well-rounded perspective. Tied agents, such as those from AIB or Bank of Ireland who represent Irish Life or New Ireland Assurance, respectively, may only offer limited product choices. Independent financial advisors, on the other hand, can present a wider range of investment and savings products, ensuring you find the best fit for your goals. Consulting an independent advisor provides valuable insight into diverse options, helping you make informed decisions tailored to your financial needs.

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How to Save Money: 5 Tips to Maximise Your Savings

In today’s uncertain economy, getting the most out of your money is crucial. One of the easiest ways to improve your financial well-being is to ensure the interest on your savings outpaces the inflation rate. However, many of us need help figuring out where to begin – how much should we save and where should we put our money?

5 Tips to Maximise Your Savings

1. Get the Best Return on Savings

Look beyond Irish banks for better returns on your savings. Traditional options like the Credit Union, Post Office, or Irish banks are no longer the only choices. International institutions such as Revolut, Trade Republic, Raisin, and N26 offer competitive interest rates. Diversifying your savings across these alternatives can yield better returns and is a crucial strategy for maximising your savings potential.

2. Start Saving Early

Saving early is crucial to harness the benefits of compounding. Compounding means earning interest on your interest, accelerating wealth growth over time. The earlier you start, the more time your money has to grow, leading to significantly larger returns. Even small, regular contributions can grow substantially, providing a strong financial cushion for the future. Start early to maximise your investments and ensure a secure, prosperous financial future.

3. Save First, Spend Later

Warren Buffett advises saving before spending, meaning you should prioritise setting aside money before non-essential purchases. This approach builds a financial cushion, allowing you to invest in long-term opportunities without worrying about debt. Being smart with your money and planning ensures financial stability and reduces stress. Save a portion of your income first, then enjoy spending what’s left, knowing you’ve secured your future.

4. Ensure the return you are getting on your savings is higher than the rate of inflation

Basically, you want to ensure that the interest or returns you’re getting on your savings are higher than the inflation rate. If inflation erodes your money faster than it grows, you lose value. Aim for savings or investments that outpace inflation so your money retains its value over time and you don’t lose out.

5. Consider your financial goals: short, medium and long term

Setting short, medium, or long-term financial goals is essential to choosing the right place to save money. For short-term goals, an instant access savings account works well. For longer-term savings, consider options from insurance companies like Zurich or Aviva, which often offer better interest rates. Matching your financial goals with the appropriate institutions will help maximise your returns.

If you are seeking more advice on maximising your savings, book a financial review with Alpha Wealth today. Let our experts help you make the best choices for your financial goals.

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Best Savings Rates For Your Money

In managing our money, it is important to consider all options for your savings.

While we often stick to banks in our own country, there are opportunities to earn more interest on our money by looking at foreign banks. This blog will show you how to explore international banking, find better savings rates, and make the most of your money.

Understanding Different Savings Rates:

Just like prices for things like coffee can vary between countries, so can the best savings rates for your money. For example, saving money in Portugal, Italy, or Sweden might earn you more than saving in Ireland. As a smaller market with less banks, Ireland doesn’t have to be as competitive.

Using Online Platforms for Better Rates:

For Example Raisin Bank is a German cloud bank that provides banking as a service to fintech companies. It offers savings rates to individuals across variety of Banks across Europe under a variety of variable and fixed term accounts. It makes it easier to compare rates and move your money to international accounts. European banks can provide services here in Ireland, and if Irish households want to avail of those services and put their deposits in these foreign banks, that’s the way the single market functions. Trade Republic, another Berlin-based digital investment platform, provides instant access to your money and as of February 2024, provides a gross interest rate of 4% available for Irish Savers up to €50,000 under the EU Government Guarantee Scheme so check these out to get the best savings rates for your money.

Seeing the Benefits:

Let’s say you have €30,000 saved up for a house deposit. If you keep it in a typical Irish bank account, you will earn very little interest each year. But if you explore options abroad, you could earn a lot more, especially with Trade Republic (4%) or Raisin (3.65%) offering higher rates. The best available rates from retail banks in Ireland are currently around 2% for lump sums and 3% for online monthly savings and are only for a year with AIB and Bank of Ireland being the best of them. All are subject to Dirt tax at 33%.

Dealing with Taxes:

When you earn interest from savings accounts in other countries, you might have to pay tax on it. It’s important to understand these rules and make sure you follow them. Whilst Raisin.ie and Trade Republic are subject to DIRT Tax, currently 33% on the interest, some institutions may be liable for Exit Tax @41%.

Best Savings Options for Irish Savers:

By looking beyond your local bank, you can take control of your savings and potentially earn more and get the best savings rates for your money. Irish banks might not always offer the best rates, so it’s worth considering other options. If the Irish banks continue to keep almost all the interest they are getting on Irish saver’s money to themselves then the answer is clear. Irish savers need to switch to better rates elsewhere.

It is always recommended to get impartial advice from a qualified financial advisor to help you understand the best options on where to save your money to achieve your financial goals. For more information on where to save your money, watch this short video and contact us .