It is hard to believe that it’s nearly Christmas again. The last year seems to have gone by so quickly. It’s a good opportunity to take a look at what you are doing in terms of financial planning – because no doubt 2025 will go by just as fast, and before you know it we will be here at Christmas 2025 and no further on.
What changes are you going to make for 2025? There are so many small changes that you can make which will make a significant difference to your financial wellbeing. We have listed a few below and even if you implement a few of them, you will be better off.
- Energy: Switch your electricity/gas bill – so easy to do and you can save a lot of money. Go to one of the switcher sites like bonkers.ie and it does it all for you. With prices dropping there are better deals.
- Subscriptions: Review the subscriptions you are paying for. Do you really need 4x Netflix logins, Disney+, Amazon Prime, Audible, Kindle Unlimited, NowTV and Sky? When did you last use them? €10 per month doesn’t sound like much but that’s €120 per year. If you haven’t tried to cancel your Sky subscription lately you could be seriously overpaying for it, just call them and they will give you a better deal. Download your bank transactions for two months and isolate all the subscriptions you are paying for to decide if you really need them. Otherwise you are just throwing away money.
- Phone: Same for your mobile phone bill or broadband – loads of people are overpaying for plans they don’t need. Look at 48.ie or www.gomo.ie – cheap monthly SIM only plans; you could save €30+ per month if you already have a handset and an out of contract plan.
- Gym memberships: Don’t sign up unless you are definitely going to use it. There are lots of pay as you go options, and walking and running only cost a pair of shoes.
- Pension: Prop up your pension! It is really important to have a good pension plan in place and to be saving towards it regularly. If you are paying tax at 40% you can save €40 tax on every €100 you put in to your pension. Have a plan for when you want to retire and how much you will need to live on, go and see your financial broker and find out how much you need to fund – it may be less than you think.
- Protection: Please also review your life assurance and income protection – it is upsetting how many people with dependents don’t have adequate cover considering how inexpensive it can be (less than the aforementioned TV subscription). It is very straightforward to get a policy set up with your financial broker.
- Mortgage: Switch your mortgage – if you are in the fortunate position to own your home, with mortgage rates dropping it is well worth checking if there are savings to be made. You might think 0.5% of a rate difference isn’t a lot – but it makes a massive difference to the amount you will pay back in the end. Also if you can afford it, a lump sum repayment will seriously reduce your total interest bill. If you want a simple spreadsheet to illustrate this, email blewis@lewisco.ie and I’ll send it to you – I was amazed at the difference it made.
- Car finance: Is Santa bringing you a new car in 2025? Look out for 0% finance deals from the garages. Buy second hand/ex demo to reduce the impact of new car depreciation. Buy an electric car through your company – BIK tax free if it originally cost less than €50,000.
- Voucher: Pay yourself a voucher of up to €1,000 if you are an employer – do it before the year end. You’ve earned it!
- Save: Set yourself a savings target of at least €200 per month if you can afford it – set it to go out by standing order just after your salary lands. By the end of the year you’ll have nearly €2,500 accumulated.
- Eat: If you are in the office, try to spend less on your office lunches and takeaway coffees which can add up to a lot of money – €10 per day 4 days/week is €1,800 per working year (after tax money).
So set a target over Christmas to implement at least a few of the above, your wallet will thank you. Wishing you a very happy Christmas and best wishes for 2025.
Ben Lewis, Lewis & Co Chartered Accountants, www.lewisco.ie 01-2110000
