Methods to start growing money 101

Everybody wants their money to increase. But let’s think about the most fundamental question – what’s it to be rich in Ireland? Before we get to the ‘how to’, do you drive a BMW or have luxury cruises and eat at the high-end restaurants? Well, this is only the icing on the cake. It’s enough money to be truly prosperous, to assure a financial future. How can we become rich if we cut to the chase? Have you ever wondered what is common to the rich? It’s their approach to money and, of course, a little luck. Wealthy individuals invest in the long-term and are not dismissed by transitory upheavals and falling. 

The first best way to grow money is avoiding debt. Debt is like marsh for many individuals and therefore, it should be avoided because it gets them stuck as they get deeper. Build a habit that you won’t accept extra debt no matter what. Probably the most significant impediment to being affluent for most of us. When you want to invest, prioritize two things; pay off your …

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Why are Mortgage Interest Rates so High in Ireland?

Recent reports from the Central Bank of Ireland indicate that mortgage holders in Ireland are still paying much higher interest rates as compared to most of their  neighbors in Europe. Therefore, why are people in Ireland paying high mortgage rates and is there a way to reduce it? Currently the  interest rate for a first-time buyer is at 2.79 percent, which means that it is now the highest in all of the 19 countries in Europe together with Greece. Despite the fact that the interest rates have dropped by 0.11 percent as compared to last year, they are still way more than what is being charged in other places in Europe where the average rate is as little as 1.31 percent. 

In a report by the Banking and Payment Federation of Ireland (BPFI), the mortgage for a first-time-buyer in Ireland is approximately €225,000. Basically, this means that someone who borrows this amount with the hopes of repaying it in 30 years ends up paying an extra of €167 per month and over €2,000 annually as compared to other countries …

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Dublin, Ireland the next tech city?

Cities are formed by their socioeconomic environments, and therefore, external developments of all sizes heavily impact them. The urban effects of deindustrialization and global economic restructuring are well documented.  From the Industrial Revolution to the 21st Century, urban transitions mirror societal changes. This is seen in North American and European cities, and in less-developed nations where massive industrialization is currently taking place. Dublin is symbolic of urban economic reform since it has seen substantial changes in recent years making it the next tech city.

Ireland was one of Europe’s wealthiest nations from the mid-1990s until 2007, when the global financial crisis struck, with the country’s GDP almost twice the European standards. The economic expansion was fueled by the convergence of several intrinsic and extrinsic factors. Also, a sequence of pro-growth government legislative proposals, such as the provision of efficient monetary rewards to attract more foreign investment, particularly from North American sophisticated production company and service companies, and, for the first time in Irish history, massive net immigration was witnessed. The most remarkable effects have been felt in the Greater Dublin …

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Want to switch mortgages in Ireland?

By switching your mortgage, you can save a lot of money. Mortgage is most likely to be the biggest household expense for many years, so this bill is one that most people do not want to overpay on. Therefore, just like any other bill, you should always opt to switch your mortgage every few years so that you can be sure that you are not overpaying.

Without a doubt, you could save a lot by switching mortgages. If you have a mortgage with a balance of €250,000 and are currently paying 4.5 percent standard variable rate, and have a minimum of 20 percent equity in your home, you could save approximately €300 each month by switching to the most affordable on the market. This translates to a lot of savings. Despite the fact that there are certain upfront costs linked to switching providers, banks can offer cashback to the individuals who switch. 

Every financial institution has its unique set of criteria for allowing its customers to switch their mortgage. In the event that your financial situation has changed negatively since …

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What will the Local Property Tax changes mean for you?

On 2 June 2021, Finance Minister Paschal Donohoe confirmed the details of the Local Property Tax (LPT) changes. Once the changes go into effect on 1 November, the government estimates that just over a third (36 percent) of property owners will see an increase on their bill, just over half (53 percent) will see no change at all, and 11 percent will see their tax payments reduced.

First off, what is the Local Property Tax? The Local Property Tax was introduced in 2013, and it is an annual charge on all residential properties in the State. Basically, if you own a residential property, you will have to pay this tax. The charges are currently based on self-assessed valuations carried out in 2013. The amount you pay is based on the valuation of your property, and there are 20 different LPT bands, with the lowest two having fixed rate charges of €90 and €225. The problem with these valuations is that property prices have surged since 2013, while the valuations of property for LPT purposes have not changed since 1 May 2013. …

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4 Easy Ways to Improve your Financial Literacy

Financial literacy is one of the most important and underrated skills that anyone can have. Understanding basic financial concepts such as mortgages, inflation, and interest rates is critical for financial success. Once you unlock this knowledge, you will be better equipped to effectively manage, save, and invest money for you and your family. This knowledge, combined with other good financial habits, is the key to financial well being and freedom later on in life. While everyone has varying degrees of financial literacy, there is an overwhelming amount of resources available to expand your knowledge on financial topics.

 

Read Personal Finance Books

If you enjoy reading, there is no shortage of finance books that cover a broad variety of topics, from eliminating debt to saving for retirement. One book recommended by Forbes magazine that covers the latter is Rewirement: Rewiring The Way You Think About Retirement!, by Jaime Hopkins. This book tackles common misconceptions and bad habits that prevent people from having flexible and successful retirement plans. For a variety of books on many topics, check out Insider’s …

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Has Covid-19 Permanently Changed the Work Landscape?

The government says so. In a time where so many people in Ireland and across the globe have switched to remote working due to the global COVID-19 pandemic, employers and employees alike have been forced to adapt. With more than a year of remote working under their belts, people have been able to observe the many benefits and drawbacks that come with remote working.

 

Now, the Government’s National Remote Work Strategy aims to encourage remote working after the pandemic. The government says its main objective is to “ensure remote work is a permanent feature in the Irish workplace” in the future.  In this strategy, the government breaks down what it believes to be the benefits and challenges that come with working remotely during a pandemic. There are several benefits, including improving work/life balance, more time spent with children and family, and reducing the amount of time spent commuting. However, there are several challenges, particularly when it comes to mental health of employees. In a virtual workspace,  employees  often experience feelings of isolation, loneliness, and stress. Another benefit is the …

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Irish Economy Poised for Huge Rebound as Restrictions are Lifted

Consumer and Business sentiment is growing in Ireland following the loosening of covid restrictions. 

 

For May 2021, the Bank of Ireland Economic Pulse, a metric that combines the result of the Business and Consumer pulses, came in at 89.5. This is 4.1 points higher than last month, and 45.6 higher than a year ago. This is the fourth straight month that the Economic Pulse has increased, and it comes after a series of covid-19 related restrictions were loosened or lifted. In May, restrictions on social interactions were lifted, and several sectors emerged, at least partially, from lockdown. These sectors include the remainder of construction, personal services, and non-essential retail (by appointment only), with many other sectors getting ready to re-open. 

 

This rising sentiment, combined with the expectation that lockdown measures will be loosened further in the coming months, has brought the Economic Pulse Index back above its pre-pandemic levels for the first time. This has led Bank of Ireland to revise its GDP forecast to 5.8%, up from its earlier estimate of 5%.  

 

The Housing market …

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All island rail proposal for Ireland

On April 7, 2021, Ireland’s Transport Minister Eamon Ryan came forward with Northern Ireland’s Minister of Infrastructure, Nichola Mallon, to announce an upcoming review of a proposed “all-island rail network.” This review will entail looking into various ways can improve connectivity between major cities and support regional development; additionally, the feasibility of the use of high-speed rail will be considered. The aim of these improvements is to boost sustainability and bolster economic growth across the entire island. Rail freight is also hoped to see better results.

Successful implementation of this proposal could have other benefits as well, such as reducing emissions from automobiles and mitigating regional economic imbalances on the island. Further, the project could lead to the creation of new jobs, both during and after its duration.

The next step for ministers is to find experts to conduct the review.

Though this proposal came jointly from Ministers of both the Republic and Northern Ireland, of particular focus is the northwestern region of the island. It is thought that this area has generally fallen behind in railway connections compared to …

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Ireland’s exit from lockdown

The National Public Health Emergency Team is expected to come forward later this week with their recommendations to the government of Ireland on developing a reopening strategy. Though a speedy return to normalcy seems unlikely, this might be an important first step in getting the country back on track.

The pandemic and lockdowns combined have had devastating effects on the Irish economy, resulting in substantial job losses and a spike in unemployment. Pauses to required monthly repayments on loans and mortgages were instated by banks to help borrowers. The country was sent into a recession, which was officially announced in September. Recovery would be long and arduous no matter what, but the inefficiencies of the government’s policies aimed at preventing the spread are likely exacerbating the issue.

For one, Ireland’s lockdowns have been described as some of the strictest in the world, perhaps even a bit excessive. Until 12 April, a Level-5 lockdown had been in effect for more than a hundred days. This entailed restricting citizens’ movements to just five kilometers from their homes, in-person schooling, and more. For …

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