Are you interested in saving €30,000 in just 4 years to reach your short-term financial goals? In this blog post, we will break down what you need to save more money for your personal finances, benefit from compounding interests and how to avail of the Tax Relief Scheme through the Employment Investment Incentive Scheme in Ireland. Read more great financial advice and tips from our Financial Advisor Nick Charalambous.
What is needed to save €30,000 in four years?
To get started you should create a budget have a savings account roadmap in place. In this case, a financial plan. We recommend using a Zurich savings plan to save monthly towards achieving your long-term financial goals. Assuming an interest rate of 3.54%, saving €500 per month for just over four years would give you a return of €30,000.
How do I find the money to do this?
We highly recommend that you use our Budget Calculator to help set your financial goals. This will enable you to track your in-goings and outgoings effectively and will determine what savings capability you have each month.
Alpha Wealth’s budget calculator will enable you to see and understand your spending habits. This free tool is critical to helping you achieve your financial goals, gives you full control over your money and can help you pay off debt faster.
Benefit from compounding interest
Compounding interest is when you earn interest on both the money you’ve saved and the interest you earn. Benefiting from compound interest means that each time you earn interest on your savings you are growing your savings faster and accumulating interest year after year. Albert Einstein described this as the most powerful force in the universe, and we absolutely agree.
How can Alpha Wealth Financial Planners help find funds to save?
Reducing costs should be your main priority. We have already eluded to our budget calculator above and this tool can help us significantly reduce your costs. By examining all your outgoings and bills, we might be able to get you cheaper premiums on your mortgage, mortgage protection, house insurance, health insurance etc. In addition, we can help you with financial goal-setting and retirement planning.
Not only do we want to make your money work harder for you, but we also want to ensure you are not overpaying on any policies and get the best premium available. Thousands are overpaying for health insurance, make sure you are not one of them.
Tax Relief Scheme (EIIS)
You can also achieve this through the Employment Investment Incentive Scheme. This is a tax relief scheme that reduces your tax by 35%. If you invest €10,000, you get €3,500 back the following year from the Irish Government plus €10,000 of your investment back and an additional €2,000 (20% profit after four years). Therefore, €6,000 net investment equals €12,000.
For more information on EIIS or any of the above please email nick@alphawealth.ie. Or to keep up to keep on our latest financial advice and news, check out our recent blog posts below.
