The Essential Guide to Financial Planning in 2024: Insights from an Irish Qualified Financial Advisor
Financial Planning

The Essential Guide to Financial Planning in 2024: Insights from an Irish Qualified Financial Advisor

Nick Charalambous
Nick Charalambous18th Jan 2024 • 7 min read

As we embrace 2024, many of us are returning to normality, making it a perfect time to reassess our financial landscape and financial planning. Whether you’re planning for a holiday, looking at changing your car or planning a home renovation, these aspirations all boil down to one critical element: money. Without a strategic financial plan, these dreams could lead to financial mishaps. As an impartial financial advisor in Ireland, I’m here to guide you through the process of creating a robust financial plan.

The Power of a Financial Planning

The journey to financial success is a roadmap with key milestones- it’s a roadmap to financial independence. The main thing is to start planning for what it is that you want to achieve financially. It is vital to set out clear financial goals, create a budget and then prioritise them to ensure that you can achieve those goals. The aim is to achieve something called Financial Independence.

Here are three steps to a building a solid financial plan:

  • 1. Set clear financial goals – success begins with knowing what you want to achieve.
  • 2. Create a Budget, a budget is your financial roadmap. Check out Alpha Wealth’s complementary financial budgeter here
  • 3. Prioritise Financial Independence – take advantage of compound growth and interest relief

The most important thing is to get financial advice to start with from a qualified financial advisor. There are a lot of advantages of getting independent advice and guidance particularly from a brokerage where you know you’re not tied to any particular insurance provider.

Understanding Financial Planning

A financial plan helps you navigate your financial journey, ensuring you achieve the goals set out at the beginning. These can change as someone goes through different stages in life (having children, changing jobs) but it is always important to review your financial plan on a yearly basis.

Getting Started

Financial decisions shouldn’t be made in isolation. Every major financial decision, from choosing a mortgage to picking an insurance policy, should align with your overall financial plan.

As we step into 2024, many of us might find ourselves grappling with the aftermath of holiday spending, particularly on credit cards. As an impartial financial advisor in Ireland, I am here to guide you through a strategic approach to not only tackle this debt but also to optimize your overall financial health for the year ahead.

Setting Financial Objectives

Envision your life in the next 5, 10, or 20 years. What does your work, living situation, leisure time, family and most importantly financial status look like? Once you have this vision, you can start translating it into financial goals.

Your financial objectives will vary based on your age, circumstances, and desires. They can be categorized into short, medium, and long-term goals. For instance, a 29-year-old teacher might aim to clear credit card debt in the short term, purchase a home in the medium term, and enhance their pension for early retirement in the long term.

Creating a Financial Checklist

Your financial objectives might include:

  • Paying off debts.
  • Building short term savings.
  • Saving for significant purchases (a mortgage)
  • Maximise a pension plan.
  • Planning for educational fees.
  • Growing personal investments
  • Preparing for financial independence

Five Key Financial Planning Tips

  1. Manage Personal Debt: Prioritise repaying high-interest, short-term loans to minimize the drain on your income. Try the “snowball” method, which entails paying off the card with the smallest balance first and working upwards. Whatever way you go, the sooner you eat into that balance, the less you will pay in interest — and credit card interest is punishingly high, with some interest rates in the twenties.
  2. Get Your Money Working For You: Put your cash to work. While banks have generally dragged their heels in passing on interest rate rises to deposit holders, cash savers should not accept near-zero rates in this climate. You can get around 4% per cent for lump sums with the banks, or close to 3% per cent for monthly savings.
  3. Invest in a Pension Plan: A robust pension plan is so important for reaching financial independence. With generous tax relief of 40%, a pension plan can secure your financial future. Pension funds are typically invested in a variety of assets. Over time, these investments can benefit from tax free and compound growth, meaning that the returns themselves generate further returns. This can significantly increase the value of your pension fund.
  4. Tax Saving Strategies: Ensure you are looking for smart ways to invest your savings and reduce your tax bill. The Employment Investment Incentive Scheme is a tax relief initiative designed to encourage investments in qualifying Irish companies. It’s a chance for investors to support growing businesses while benefiting from significant tax relief.
  5. Financial Goals: Clear financial goals provide a roadmap for your financial journey. They help you focus on what’s important, guiding your spending and saving decisions towards achieving specific outcomes. Set financial goals that are achievable and align with your personality and lifestyle. Drastic changes are often unsustainable. This will all help towards achieving Financial Independence.

Conclusion

Financial planning in 2024 is not just about managing your current finances; it’s about paving the way for a secure and fulfilling future. Whether it’s paying off debt, saving for a family holiday, or planning for early retirement, a well-thought-out financial plan is your blueprint to success. As a qualified financial advisor in Ireland, I encourage you to start this journey today. Remember, foundations laid today will support the dreams of tomorrow. Let’s work together to make your financial dreams a reality.

You can contact alpha via info@alphawealth.ie or book a personal finance review through the Alpha Wealth website

Nick Charalambous

Nick Charalambous

18th Jan 2024

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8 Simple Expert Tips to Make 2025 Your Best Year Yet

The start of a new year is the perfect opportunity to take control of your finances and build better money habits—but it can be hard to know where to start.

Financial success isn’t about being perfect—it’s about progress. Small, consistent efforts can create a strong foundation for long-term stability. Whether your goals are to save for a home, reduce debt, or feel more in control of your money, 2025 is your chance to start fresh. By reviewing your finances, setting realistic goals, and using tools like tax credits and savings plans, you’ll be well on your way to making 2025 your most financially secure year yet.

1. Review Your Finances Regularly

Think of your financial plan as a guide to staying in control of your money. Start by tracking all your income and expenses for one month—groceries, transport, bills, and even forgotten subscriptions. Once you know where your money is going, you’ll see opportunities to cut back, like eating out less or cancelling unused services.

To make this process easier, use Alpha Wealth’s handy Budget Calculator to get a clear picture of your financial situation.

2. Reduce Debt Strategically

Overspending during Christmas is common, especially on credit cards with high-interest rates. Prioritise paying off this debt as quickly as possible before you start saving. Reducing debt gives you more financial freedom and lowers the stress of repayment in 2025.

Pro Tip: Start by tackling the highest-interest debts first—these are costing you the most.

3. Segregate Your Savings

Divide your savings into three pots to keep your financial goals clear:

  • Short-term (less than 3 years): For immediate goals like buying a car or holiday expenses.
  • Medium-term (3-10 years): For goals like education or major life milestones.
  • Long-term (retirement): Invest in tax-efficient options like pensions to maximise growth.

By separating your funds, you can use the right financial tools for each timeline, ensuring your money works harder for you.

4. Maximise Your Savings Returns

Don’t let your money sit in low-interest accounts. For short-term savings, consider online banks like Raisin or Bunq, which often offer rates above 2%. Lock in fixed-term deposit rates now before they drop further in 2025.

Also, take a moment to review your mortgage rate. You might be able to switch to a lower rate and save significantly on your monthly repayments.

5. Boost Pension Contributions

It’s never too early or too late to focus on your pension. Small contributions now can grow significantly over time thanks to compound interest.

Take advantage of the tax relief on contributions—up to 40%. If your employer offers a matching scheme, join it to benefit from essentially free money. Boosting your pension now can make a big difference in your retirement years.

6. Practice the Rule of 72

Impulse purchases can derail your budget. Use the “Rule of 72”: wait 72 hours before making any non-essential purchase. This cooling-off period is particularly useful during January sales, helping you avoid unnecessary expenses while still enjoying genuine bargains.

7. Claim Your Tax Credits

The start of the year is the perfect time to review your tax credits and allowances. Many people are eligible to reclaim up to four years’ worth of missed credits, such as:

  • Remote Working Relief
  • Rent Tax Credit (€1,500 per individual)

Log in to Revenue’s myAccount or Revenue Online Service (ROS) to update your details and ensure you’re not leaving money on the table.

8. Plan Ahead for Big Expenses

Instead of scrambling for cash when big expenses arise, start saving early. Open a dedicated savings account in January for your 2025 goals, whether it’s a holiday, Christmas, or a major purchase.

For example, saving €167 per month will leave you with €2,000 by summer.

Let Us Help You

Ready to take the first step? Talk to us to learn more about how we can help you achieve your financial goals for 2025 and beyond!

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What Budget 2025 means for you

As the dust settles on Budget 2025, many are wondering how the announced measures will impact their daily lives. With a headline figure of €6.9 billion in new spending, the coalition government is taking steps to address a range of societal needs. Here’s a breakdown of the key takeaways from the budget and how they might affect you.

1. Social Welfare Increases

Those receiving social protection will benefit from a €12 weekly increase in payments. Additionally, double payments in both October and December will provide extra help just when it’s needed most. Families with newborns can look forward to a special €420 ‘baby boost’ payment, while maternity, paternity, and parental benefits will rise by €15 a week. These changes offer real financial support for households facing the rising cost of living.

2. Tax Cuts and Reliefs

Taxpayers will feel some relief with the changes introduced in Budget 2025. The entry point for the higher 40% tax rate is moving up to €44,000, so more of your income will be taxed at the lower 20% rate. This will leave middle-income earners with an extra €100 per month. Combined with a 1% cut in the USC, these changes are designed to ease financial pressures and boost your take-home pay.

3. Housing and Renters

First-time buyers will be pleased to know that the Help-to-Buy scheme has been extended until 2029. This allows you to continue receiving up to €30,000 to help with buying your first home. For current homeowners, mortgage interest relief has been extended for another year, a lifeline for those feeling the pressure from rising interest rates. If you’re renting, there’s some welcome news. The renter’s tax credit will increase to €1,000 next year, offering significant relief for tenants battling high rents. Even better, you can backdate this for 2024, so if you’re a jointly-assessed couple, you could claim up to €2,000. That’s a big boost for your bank balance.

4. Students

Good news for third-level students and their families: college fees are being reduced by €1,000, bringing the annual cost down to €2,000. This will provide much-needed financial relief for those navigating the costs of higher education. Postgraduate students will also benefit, with the fee contribution grant increasing from €4,000 to €5,000. This change is a positive step toward making education more accessible and affordable.

5. Health and Wellbeing

Healthcare spending is a significant component of Budget 2025, with additional funds allocated to the Health Service Executive (HSE) to tackle waiting lists and expand services. There will also be further investment in mental health services, an area that has seen growing demand post-pandemic.

6. Vapers and Smokers

If you smoke or vape, you’ll see price hikes on these products. Cigarettes will increase by €1 per pack, bringing the most popular brand to €18.05. Vapers will also feel the pinch, with the price of a typical vape rising to €9.23 next year. These changes aim to promote health, but they will hit younger consumers’ pockets the hardest.

Conclusion

Budget 2025 introduces a range of financial supports designed to relieve the pressure on households as they navigate the cost of living challenges. While Budget 2025 brings positive changes that will help ease financial pressures, it’s important to take control of your finances and make the most of these opportunities. Consider speaking with an impartial financial advisor to get your money working harder.

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6 Expert Tips for Parents to Secure Their Child’s Financial Future

In light of back-to-school financial stress, here are six ways to help you better manage family finances and give your child the best financial start possible.

As a parent, securing your child’s future is always a top priority. However, with back-to-school season approaching and its associated costs, family finances are more pressing than ever. A new report* reveals that over one in four parents take on debt to cover these expenses. So, how can you manage family finances to give your child a strong start in life?

While saving the monthly €140 children’s allowance in a bank account is common practice, here Nick explores six more strategic options to help you better manage family finances and give your child the best financial start possible.

6 Tips to Manage Family Finances

1. Explore Alternative Savings Options

Instead of traditional low-interest bank accounts, consider savings plans from insurance companies with higher potential returns through diversified investments. With current inflation at 2.5%, seeking better returns is crucial to ensure better returns on your money.

2. Harness the Power of Compound Interest

Starting a savings plan early allows your money to grow exponentially. Compound interest is earned on both the initial amount and the accumulated interest. For example, saving €140 a month from birth can grow significantly over 18 years, with a 4% annual growth yielding €44,807.67 compared to €36,692.14 at a 2% growth rate.

3. Secure Funds for Education Early

Early savings prepare you for future financial demands and relieve the burden of education costs. A dedicated savings plan supports your child’s ambitions and causes you less financial stress by avoiding high-interest loans.

4. Utilise Tax-Free Contributions

Take advantage of the Small Gift Exemption, allowing parents and grandparents to gift up to €3,000 annually tax-free. This is a popular way to fund future college fees or house deposits.

5. Plan for Medium to Long-Term Goals

Savings plans are ideal for goals over five years, benefiting from compound interest. Understand plan terms to ensure 100% allocation of your money and avoid fees. Flexibility allows fund access without penalties, but remember it’s a medium—to long-term investment.

6. Consult a Financial Advisor for Tailored Investments

Speak to an impartial financial advisor about equity-based investments suited to your risk appetite. Investment options on a risk scale from one to five allow you to adjust over the years for growth within your risk profile. 

Book a financial review with Alpha Wealth for trusted financial advice on tax savings, pensions, investments, and more.

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