ALTHOUGH THERE’S TALK of interest rates and inflation finally settling down in 2024, some mortgage rates are still likely to rise further and lower inflation just means less price hikes, not prices actually coming down.
This means that many households will still be under financial pressure and in need of ways to make their money go further. That’s why we have worked with NGO’s across the country to identify four practical ways that hard pressed households could save in 2024.
We undertook some research into changing behaviours in the cost of living crisis recently and found that over 33% of people had increased their income by working longer hours, changing jobs or requesting higher pay.
Almost 21% of people they surveyed said they had worked longer hours in the last six months. Granted, not all jobs pay more if you work more and working longer might not be sustainable long term, but you may also be in a stronger position than you think to move jobs or get a rise.
The average annual tax refund weighs in at over €1,800 according to Taxback.com, with tax credits for home care and tax relief for medical plus flat rate work expenses still being left unclaimed by many.
New rent and mortgage tax relief measures are likely to make this refund number even higher in 2024.
Don’t forget, whether you are working or not, there is always an opportunity to claim all the benefits you are entitled to. You can check out what you are entitled to through citizens’ information and then make sure you claim for it. Many, especially older people, have missed out for years on getting the carer allowances, heating help and assistance grants they are owed.
According to our research, almost 20% of us are buying for less by switching providers and 30% have found ways to buy less by simply cutting back since the cost of living crisis began.
Our figures show that buying for less, by switching mortgage, your TV provider and where you buy your groceries saves the average household €4,429 a year.
With an average saving of €3,276 a year, the biggest single thing households can do to save is switch your mortgage, but there are a number of areas to potentially save on household expenses.
Our figures also show that by buying less, by ditching credit cards, reducing things like takeaways, cigarettes and alcohol and conserving energy the average Irish household will save €6,683 a year.
For example, turning down the thermostat by 1 degree can save €260 per year according to research conducted by Utilita, the UK energy provider.
The sample savings above are based on savings calculated for the average Irish household, no household is average however and therefore those average savings may not be available to everyone.
If you want to take a look at what your own household could potentially save by buying for less or buying less you can check out our inflation savings buster tool.
Lastly, if you are struggling to make ends meet, you aren’t alone. More than half of all Irish adults say financial concerns are a threat to their mental health. If you are struggling or just need some free independent advice, you should check out the state’s Money Advice & Budgeting Service (MABS) for further help.
Mark Coan is a financial expert and founder of online finance guide moneysherpa.ie, which is an independent personal finance website.
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