Beating the Rising Cost of Living: Strategies to Navigate Inflation and Protect Your Finances

The cost of living has been on the rise, affecting consumers worldwide, including Ireland. Factors such as the COVID-19 pandemic, Brexit, and supply chain disruptions have contributed to the inflationary pressure, resulting in higher prices for essential and non-essential goods and services. In this article, we will explore the impact of inflation on personal finances and provide practical tips to help you manage the increased cost of living.

Understanding Inflation 

Inflation is the term used to describe the rise in prices over time, which diminishes the value of money. This means that you can purchase fewer goods and services for the same amount of money than before. With inflation reaching 9.5% in Ireland as of October 2022, it is crucial to be aware of its implications on your finances.

Strategies to Manage the Increased Cost of Living

Make a budget: Creating a monthly budget allows you to track your expenses and identify areas where you can reduce costs. The 50/30/20 rule is a helpful budgeting guideline that suggests allocating 50% of your income to essential items, 30% to wants, and …

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The Shifting Landscape of Ireland’s Mortgage Market: Examining the Impact of Bank Exits

The recent developments in Ireland’s mortgage market has triggered significant changes. A large contribution to these changes is the exit of two major banks, KBC and Ulster, from Ireland. This has left a significant impact on the mortgage industry, affecting both consumers and the market. In this article, we will explore the positive and negative effects resulting from the shrinking mortgage market and assess the potential opportunities that businesses have during these changes. 

Decreased Competition

A significant concern regarding the departure of the two banks is the decrease in competition within Ireland’s mortgage market. Reduced competition can have many unintended consequences that may be hard to recognize. One concern for the decreased competition is the fact that it may suppress innovation among industry players. Without the presence of competitive pressure it often leads to businesses not producing critically thought about products and services for their customers. In addition, without adequate competition companies could get too comfortable and this could be seen through companies offering higher interest rates and services that prioritize the company’s interests of customer satisfaction.

The Possibility of …

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Four Alternatives for Policy Responses to Increased Mortgage Rates, According to David Willetts:

Introduction:

The recent findings by the Resolution Foundation have shed light on the significant impact of rising mortgage rates in Ireland. With projections indicating further increases in the coming years, it is crucial to explore policy options that can alleviate the burden faced by homeowners. In this article, we will delve into the implications of these findings and examine four potential policy responses to address the challenges presented by higher mortgage rates.

 

Creating a New Spending Program:

One approach is to consider the implementation of a new spending program aimed at assisting individuals facing higher mortgage payments. However, it is essential to evaluate the effectiveness of such a measure, considering the income levels of the affected population. Moreover, it is important to recognize that the increase in mortgage rates is a deliberate policy response to combat inflation, and protecting individuals from the impact of this policy may not fully address the underlying issue.

Exercising Lender Discretion:

Lenders can play a role in alleviating the burden of higher mortgage rates by exercising discretion in their lending practices. One practical measure …

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Understanding the Impact: How Interest Rate Hikes Affect Irish Mortgages

In this blog, we journey through the intricate world of interest rates and their profound influence on our mortgages. With recent rumblings of potential interest rate hikes, it’s essential to understand how these changes can impact our financial lives. We’ll explore the key aspects of interest rate hikes, their implications for Irish mortgages, and provide real-life examples to help you grasp their significance. So, let’s dive in and gain a deeper understanding of this critical subject.

 

The Basics: Interest Rates and Mortgages

Before we delve into the impact of interest rate hikes, let’s refresh our understanding of the fundamentals. Interest rates are the cost of borrowing money, and they directly affect the amount you pay on your mortgage. When interest rates rise, the cost of borrowing increases, leading to adjustments in mortgage payments. Conversely, when rates decrease, mortgage payments may become more affordable.

The Ripple Effect: Monthly Mortgage Payments

Interest rate hikes have a direct impact on your monthly mortgage payments. As rates rise, your mortgage interest charges also increase, resulting in higher monthly payments. For example, let’s consider …

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Comparing the 2008 Financial Crisis to Recent Interest Rate Hikes in Ireland

In this blog, we look at insightful parallels between the infamous 2008 financial crisis and the recent interest rate hikes in Ireland. While each event has its unique characteristics, examining their similarities can provide valuable lessons for navigating the current financial landscape. We’ll explore the key resemblances between these two periods, highlighting real-life examples to deepen our understanding. So, let’s dive in and uncover the lessons history has to offer.

 

The Domino Effect: Fragile Housing Markets

Both the 2008 financial crisis and recent interest rate hikes have exposed the vulnerability of housing markets. In 2008, a burst in the housing bubble triggered a wave of foreclosures and plummeting property values. Similarly, interest rate hikes can impact affordability, leading to a potential slowdown in demand and a correction in housing prices. These dynamics remind us of the importance of balanced and sustainable growth in the housing sector.

Financial Strain: Increasing Debt Burden

During the 2008 crisis, many homeowners found themselves burdened with high levels of debt. Adjustable-rate mortgages with low …

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Best Places to live in Ireland outside of Dublin

Many people dream of living in Ireland: with its gorgeous countryside views and culture-rich cities, there’s not much to dislike. The biggest and most famous city in the country is the capital city of Dublin, famous for its pubs, diverse community, and unique culture. However, Dublin is also by far the most expensive place to live in Ireland. If you’re looking to move to the Emerald Isle and would like to save some money while doing so, here are some great areas outside of the capital to consider.

Galway

Located on the River Corrib next to the Atlantic Ocean, anyone who visits Galway will fall in love with it. Considered the cultural center of Ireland, this coastal town has a lot to offer at a fraction of the price of living in Dublin. Rental prices are 50-80 percent cheaper than in Dublin, and Galway still has a lot to offer culturally, with festivals throughout the year and many culinary options. In fact, Galway is so culturally rich that it was named the European capital of culture in …

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5 tips to improve your credit rating

Your credit rating is crucial when applying for a mortgage or any type of loan. The better your credit rating, the higher the chance you will qualify for a good rate from your lender. Having an average or below average rating can greatly reduce your choice of lender and have an adverse affect on your rate. Here are some tips to make sure your credit rating is as high as possible.

1. Use Credit cards wisely

Using credit cards responsibly on a regular basis is key to boosting your score. Banks may ask you for 12 months of credit card statements, and being behind on your credit payments will decrease your chances of getting a loan. Instead, use your credit card for small amounts, and keep up with your monthly repayments. This shows that you can reliably pay back the money you borrow.

2. Don’t miss loan repayments

Making all your payments on time is the factor that impacts your credit score the most. When you pay your credit cards or other loans on time, it goes on your file …

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Irish Households’ savings at record levels

Irish households saved more than 4 times the average amount during the first quarter of 2021, according to a recent study by the Central Statistics Office (CSO). The CSO reports that Irish households saved more than €10 billion during the first three months of 2021.

This massive increase in savings was undoubtedly related to Covid-19 and it’s corresponding economic restrictions. Due to businesses being closed because of lockdowns, government unemployment benefits, or some combination of the two, incomes either held steady or increased, while spending was dramatically decreased. The CSO also reported that uncertainty about the pandemic and how long the lockdowns would last may have forced many Irish citizens to build up an increased amount of precautionary savings, in case money became tight in the future.

When looking at the numbers, it is no surprise that savings grew dramatically when compared to the first quarter of 2020. Compared to the first three months of last year, Government subsidies increased by €1.1 billion, and social protection payments rose by an even larger margin of €2.7 billion.

While the Pandemic Unemployment …

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Lockdowns cause surge on home improvement spending in Ireland

The coronavirus pandemic created many unforseen circumstances in people’s daily lives. Perhaps the biggest among these was the effects of the lockdown. People had to stay in their homes for much longer than they normally would, and many people were stuck working at home. It is no surprise, then, that a record number of home improvement projects have been carried out over the last year and a half.

Research by Aviva Insurance Ireland shows that 1.5 million homeowners have carried out work on their homes over the past year, with the total cost of these projects coming in at more than €11 billion. In addition to these numbers, another 861,000 people have plans to undertake home improvement projects, the survey says. The survey captured almost every type of home improvement imaginable, from minor fixes like painting a room or replacing windows, to large projects like building extensions onto homes or adding a home office, the latter of which was definitely popular as the country and the world transitioned to a remote work environment.

Aviva Insurance added that this surge in …

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COVID-19’s biggest effect on the Irish financial world

There is no doubt that the covid-19 pandemic has changed the financial landscape as we know it.

The pandemic has increased online shopping by great amounts, has changed the way individuals invest in the stock market, and has lead to many central banks around the world printing large sums of money in order to pay unemployment benefits and provide essential aid to businesses both small and large. Investors have began to hedge against growing inflation of currencies around the world by investing in Bitcoin and other cryptocurrencies, sending them to sky-high prices.

But perhaps covid-19’s biggest – and surely its most noticeable –  effect has been a massive increase in contactless payments. Use of cash was already on the decline, but business closures and other covid restrictions, as well as new development in the fintech sector, have seen card and mobile payments soar to record highs.

Contactless payments such as Apple Pay and Google Pay, as well as the new chip and tap-to-pay features included on most debit cards, are fast, easy and sanitary. And let’s face it, it’s much more …

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