Tips to help against rising consumer inflation in 2023

The Central Bank in their latest Quarterly bulletin (March 2023) has predicted inflation rates to be 8.1% in 2022, 5% in 2023 and 3.2% in 2024. This means that the money that we earn now is buying less and less, but the rise is beginning to ease.

In order to be on top of your finances you have to be very mindful of every expense and make the money that you are earning work harder for you.

You have got to look at all your expenses - amount of interest on debt you are paying, the amount you are spending on everyday items and of course getting the best return on your savings.

Here we look at these 4 areas or steps that you should follow.

STEP 1: Cost of serving your debt.

It is vital to get an understanding of all your debt and what interest rates and charges you are paying. Take a look at each of your debts.

Mortgage: Can you switch your mortgage to a new provider or a better rate with your current provider: See what is available here on the CPCC comparison site

Car Loan: Are you on a PPC and is the term nearly up, you may be better to pay off the balloon/final payment with Synergy credit union Car Loan or if you have Loan with bank you might be able to switch to Synergy Credit Union using our low interest rate switching loan: See our Loan Calculator here:

If you are going electric or hybrid, check out our Green Car Loan here for a lower intertest rate.  

Credit and Store Cards: If you have a large balance on these you are not using them right, you should be clearing the balance each month and not get sucked into building up debt by using easy credit. If you have a balance left on your Credit Card - clear it with our Switch and Save Loan - and then cut up your cards or one idea that we saw is wrap it in clingfilm and put in a sandwich bag with water and freeze it. When that impulse to purchase online arrives again , by the time you thaw it out the impulsive feeling may have passed.

Personal loans: Do you have a personal loan or loans. Check what interest rate you are paying and if it is a variable loan. The Competition and Consumer Protection Commission website allows you to compare personal loan interest rates. See here: 

Remember you can switch any of your loans to Synergy Credit Union at a low interest rate using our Switch and Save Loan. You can combine all your loans into one and have one loan and repayment to manage each month. This may free up money for other rising expenses. See our Switch and Save Loan here:

STEP 2: Everyday Expenses

This is one area where you can adjust and make savings. Write all your expenditure down and be honest about it.

Compare it against your income and bank statements to ensure you are not missing anything. Break yearly expenses such as car insurance into 12 monthly repayments for this exercise.

Then create a household budget. This one from the CPCC will help give you a starting point. See the Budget planner here:

Stick to this budget and be ruthless and you will be amazed at the difference in your savings without unduly affecting your lifestyle.

Many of us wonder what happened our money at the end of the month, write it down when you spend, and you will know, and knowledge is power. Soon you will be a savvy spender and not just flittering it. This may mean making coffee at home and not grabbing a €3 americano.

Budgeting Tips:

• Make sure to track everything.
• Write down your debt details: the amount, interest rates and time left on repayments.
• Reduce your food bill by knowing what you have at home before you shop and make a list. Plan a weekly menu ahead of your big shop and buy only what you need.
• Shop around for utility providers, big savings to be made here. Use a comparison website such as bonkers : See here 
• Check all monthly subscriptions, do you use them or even need them.
• Unsubscribe from store promotional emails - less temptation to buy stuff you don’t need. You might want it but do you need it!!
• Set yourself monthly saving goals. Plan for you and your family’s future - why not get a FREE FINANCIAL REVIEW with Synergy Credit Union. See here!

STEP 3 : Rope in the whole household

Work as a household unit to bring your finances under your control. Write down and share your financial goals with your partner and discuss areas where you can save, Create the budget together, get buy in and stick to it.

STEP 4: The Emergency Fund

This is what stops you getting into debt unexpectedly. Have a fund where a small amount goes each month in the event of an appliance breaking down, an unexpected car expense, a medical bill or an invitation to a wedding or event that was not planned. This will help you avoid borrowing money or using your credit card or overdraft to pay for unexpected expenses. Make this emergency fund a part of your budget.

Don’t be overwhelmed by starting a budget and planning for a better financial future. Start slow and look for advice.

Synergy Credit Union have teamed up with Irish Life Financial Services, and we are now in a position to refer you for a FREE Financial Review.