How our brains destroy our finances and how to avoid it

Typically, we want to focus on the good habits we do and improve further on them. Of course, these are good things to know about like managing your money, budgeting, and so much more. Although we try our best to stay on track, the reality is it will not always finish the pathway. Our brains have developed to have a certain way of perceiving and understanding things. Our brains have default habits and modes it follows which can get in the way of even the most knowledge and objective people’s finance. It tends to steer away from logic and make us choose worse options even though we hold the information to do better. With the right precautions, we can teach you how to outsmart your brain. 

Hyperbolic discounting.

To start, hyperbolic discounting is when there is a temporary discount for our preferred immediate over future rewards. We value something more that happens now rather than waiting for it in the future. Credit cards are one of the prime suspects of this action. We purchase an item we might not be …

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Dublin Rent prices on office apartments have fallen since the beginning of the pandemic

In the past year, we’ve seen the Dublin office market prices in rent fall to the lowest they’ve been since 2016. The COVID pandemic has caused the economy to slow to a standstill, and with that, the majority of such companies are postponing their long term executive decisions due to the uncertainty the pandemic has brought about. Office rents have fallen from the high of €65 per square foot down to €59 near the end of 2020.

Even so, there have been signs of economic recovery near the end of the last quarter of 2020. This is expected to grow and continue as the vaccinations for the virus begin to become publicly accessible to the general public. The vacancy rate in the Dublin offices ended at around 9.5% due to reduced demand and office hours during the pandemic. This grey space comes into the market and accounts for nearly 25% of the available office space in the capital. These spaces are continuing to compete with traditional landlords as they offer more flexible terms of lend to their customers. There have …

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Is Dublin the newest popular city for firms to move to?

From recent research by British Newspaper, The Observer, it has been stated that Dublin is the most popular destination for financial companies moving businesses out of London in the past year. Many of these companies specialize in financial services and it has been found that a total of 34 companies have found to have jobs shifting into the capital city. In 2016, the EU passed a referendum which has caused firms located previously in the city to start leasing space in other cities such as Amsterdam, Paris, Luxembourg, and Dublin. This is to ensure that they are still able to keep maintaining business with their EU clients.

Credit Unions are also planning on launching a new credit card within the next month. The Irish League of Credit Unions has been testing this new card in Ballinasloe in preparation for launching the card with another 14 credit unions across Ireland within the first half of 2021. This card removes the credit union member’s dependency on cash and will give them another option in payments or doing their banking services with …

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Ways to build a healthy relationship with saving money

When it comes down to money there are many belief systems out there. From one side, there are people who absolutely refuse to save money even if they have room in their income to do so. While on the other side, there are absolutely obsessed with saving money. They insist there to be no indulgences, coupon clipping every day, no mistakes, and sadly no joy. In the perfect world, we fall in the middle practising both sides so we can balance and enjoy our daily lives while seriously saving for things to come.  Here you will learn how to master balancing the interests of present you and future you.

Most importantly and fundamentally, you need to believe both saving and spending are important. Without seeing the value in both it is very hard to find your perfect balance. For example, if you believe saving is the adult thing to do, chances are you will not put much effort to save money or even start saving money. Same for spending, if you believe spending money on anything is a sin, you …

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The interest rate will kill you.

No, not physically but they will hurt your financial goals if you do not completely understand them. When you are starting out on your financial journey you are not trained to look at interest rates. Most of us are just happy we got fifty euros in our pocket when we first start earning money. We know money comes in and goes out. Once we start going to university or getting a credit card that’s when interest rates start coming into play.

Although 2.5% on the paper might look like a small number on the paper, do not be fooled. Interest rates can be one of the biggest deciding factors in your financial life. The difference between a good and a bad interest rate to a car, credit card, mortgage, and so much more can literally be the difference between tens of thousands of euros! It might not seem to be a lot, in the beginning, take caution to your calculations. Even a cellular phone bill can hit you with a damaging interest rate which if you’re straight out of secondary …

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Daily Habits that separate you from the most successful individuals

No matter what financial place you are, our goal is to improve your understanding of money. You do not need to be wealthy to do the same things but understanding how money impacts our lives is important to avoid a financial crisis. Wealth is not just money that you have but how you think and feel.  It is not just about perception but there are many practices they have adapted to sustain their wealth. Do not feel discouraged, even those on a serious budget can follow these habits.

 

 Do not wait for permission. 

They feel deserved to go for the things they want. They do not wait for someone to agree with their idea and give them the green light. You can follow this even without having money. This applies to many aspects of our life. Instead of waiting for your boss or managers to give you a raise or a promotion, taking the initiative by demonstrating you have the responsibility to do so and take on the tasks that are for the position. Without taking the initiative, people …

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How will the rising of State Pension Liabilities affect you?

Recently, state pension liabilities have been on the rise at around 10% annually, according to a recent studying involving Ireland’s pensions, it claims that pension schemes across Ireland have over €600 billion worth of liabilities. The study analyzes are many Irish households were privately owned by employers and the government, finding that the State pension accounts for almost 60% of all liabilities. Within that, the public sector pensions account for nearly a quarter while the private sector pensions are around 16%.

Overall, the pension liabilities within Ireland has increased by 7%, however, there are still differences in the positions of such schemes. The liabilities of private sector schemes has increased at just over 1%, while the public sector schemes have almost increased by 10% for state pension liabilities. One of the biggest issues is the sustainability of the current State pension scheme and whether the age requirement on the scheme will rise to 67 as previously planned, and then to 68 in 2028.

The study in 2018 shows that Ireland’s total pension liability at that time was equal to 186% …

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Many Misconceptions about the current ranking of the Irish economy in comparison to other EU countries

A reading using these statistics is not fully accurate simply due to the fact that the statistical distortion created by multinational companies in Ireland sway these numbers. This includes the large activity of transferring the depreciation of intellectual property. AAlso the large number of leasing companies that have moved their headquarters to Ireland in the recent years. The latest GDP statists that have been published internationally show that Ireland’s per capita GDP comes in 5th place out of the 182 countries, and Ireland is first in all of Europe. While these large profits are within the Ireland borders, the majority of these profits are being funnelled by foreign multinational companies that in turn use their profits elsewhere.

In fact, using these skewed statistics like GDP can mislead data in other matters, such as debt, inequality, and worker laws. The GNI statistics is an alternative measure to the GDP, however, it is also affected by the large number of multinational companies located in Ireland and is not a clear representation of the average Irish citizen’s financial situation.

When we look at …

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How to be an ethical investor

First, it is so hard now even before the pandemic to avoid the issues of human rights violation, climate change, corporate abuse, and much more. Sometimes even donating to organizations it is hard to feel those impacts. It causes us to feel crushed by all the problems happening around us and ignore them altogether. But have you taken a deeper look into your investment portfolio? You might ask yourself, is my money-making things better or worse? How can I only donate, but help myself and others in a sustainable way?

Of course, our intentions for investing are obviously to grow our money’s worth for the long or the short term, but on the flip side, the cost of the profits for the company might be quite damaging to not only us but to others. Although you are using your money for good intentions does the thing you are investing in believe in the same morals and principles as you are? Do you continue to take part in this system pretending nothing is happening or is there a better way to …

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What does Ireland truly stand economically compared to other European powers? (pt. 3)

Another form of measurement used when accessing the healthiness and prosperity of a country is the state of its citizens. In this case, a national indicator of household welfare is known as “actual individual consumption” or AIC. This measurement is also a part of the GDP, where it takes into account the consumption of households on services such as healthcare, education, and housing. What AIC does not take into account is the collective government spending such as defence, policing, debt services etc…

Internationally, AIC includes about 2/3 of all GDP. AIC seems to be the best fit measurement of current living standards of households, which can also e adjusted for price differentials across different countries. Ireland currently ranks less high on this measure than compared to others. Ireland’s AIC rank in the European Union has jumped around quite a bit. At 11th place in the 1990’s up to 6th in 20078. But then afterwards it fell to 14th place in 2009 and returned up to 12th place by 2019. Using this measurement, Ireland actually falls behind all six of the …

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