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The Most Common Money Problems You May Want to Solve Straightaway
  • admin
  • November 25, 2022

The Most Common Money Problems You May Want to Solve Straightaway

To tackle money is one of the biggest challenges for many people. Even if the rising cost of living is not a serious threat to people in some parts of countries, a large number of people are struggling to keep their finances in order.

Every year a new blog post is released to reveal tips for cutting back on overspending during the festive season, yet people struggle to make a fresh start in the following year waiting for them.

Overspending, followed by surmounting debt and shrinking savings, are popular reasons why you end up with your back against the wall. This blog discusses some most common money problems along with ways to tackle them.

What should I do to spend less money?

The key to curbing overspending is budgeting, and thankfully there are various apps to help with it. At the outset, you would find it a bit difficult as your brain is not wired to self-control, but once you stick to your plan, you will soon take it in your stride.

  • Establish a three-day rule for frivolous purchases. Have you got something to buy? Take a break of three days to see if you actually need it, or you just want it.
  • Introduce zero-spending days, maybe one or two, when you do not spend money at all except on essential items like food and bills.

How can I settle my debt?

If you have multiple debts like credit card bills, overdrafts, and payday loans in Ireland, it is going to take some time. There are more effective solutions than making minimum payments toward each type of debt. You should instead check what works in your favour currently.

  • Identify the nature of the debt. Overdraft is the most expensive debt, as interest is charged every day. Settle them as soon as possible.
  • Take help if you are unable to clear your debt.
  • Do not borrow more money to fund your needs, as your debt will mount up.
  • Consider a debt consolidation loan.

What do I do to contribute to the pension?

There are several pension schemes in Ireland that your employer may opt for. To be eligible to make a contribution to any of them, you must be earning above and over a fixed sum of money. However, if this facility is not available or you do not earn that much money, you can use a private pension scheme.

It is never too late to start a pension contribution. As your income grows, you can increase your contribution as well. If your employer has put you on a workplace pension scheme, ask them if they can contribute more money if you do more.

How to save money on car expenses?

Owning a car is extremely expensive. You finance it with a personal loan, which means you have already paid more money than the actual value of the car. Further, maintenance and fuel expenses kill your budget, and worse when you are to take out loans like Provident in Ireland to meet car-related expenses.

  • Stop driving your car for shorter distances.
  • Do a routine check-up of your car. It is a must to change the fuel and filter to increase its life span periodically.
  • It is suggested that you use public transport rather than your car for travelling home to the office and vice-versa.

How can I afford energy bills without breaking the bank?

Energy bills are primarily responsible for killing the budget. Although there are some suggestions by experts like ‘turn off the heater in the cold weather,’ you are at risk of falling sick. Here is how you can save on energy bills:

  • Turn off the lights when you leave the room. It can save a lot of money, more than your imagination.
  • Do not leave appliances on a stand-by mode as they can account for 7% of the energy bill.
  • Make sure that your doors and windows are drought-proof. Proper insulation is a must to prevent warm air from escaping. Proper insulation can help you sit in the room after turning off a heater for a while.
  • If you can manage by putting an additional layer, prefer not to turn off the heater.
  • Install an aerator to the faucets to restrict the flow of water.
  • Avoid using a tumble dryer unless there is an emergency. Rather hang them on a cloth line to dry if possible.
  • Do not wring clothes at high speed. Limit it to 30 degrees.

By taking these steps, you will be able to save around €250 to €300 per year.

How should I contribute enough money to my child’s university programme?

Although parents manage to save some of the money to help their children get by for university courses, research has revealed that around 10% of students feel that they get less support from them.

Saving is the only solution to tackle this situation. Try to contribute more. It is better if you start the contribution now. As soon as you become a parent, you should start setting aside money for their university programmes.

What do I do to save on food?

If you are really scared of high food bills, the first thing you should do is not to waste food. According to a survey, households dump more than 70% of food that they can eat the next day. First off, you should cook meals based on consumption.

  • Plan meals ahead, so you buy only what you need to prepare that meal.
  • Stop bulking bread, potatoes, fruits and vegetables because they go off before you consume them.
  • Do not order food in a large quantity from a restaurant.
  • Finish leftovers first before cooking something fresh.

Wrapping up

Money problems seem to be eternal, but you can easily tackle them by taking stock of your finances and cutting back on frivolous purchases.

Set an aim and follow the tips as mentioned earlier. It will take some time, but you will certainly see a positive change in your financial condition.

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