The FBD Blog – investments, insurance, pensions, savings in Ireland

All right. We admit it. Saving doesn’t sound very exciting.  It’s a little like taking your medicine – it doesn’t always taste great but it is good for you.

Well, saving is the same.  It implies sacrifice – and nobody likes to give up any of the lifestyle that they currently enjoy.  But like medicine, it is good for you and it’s a question of priorities.  What matters most?  Maintaining your current expenditure?  Or ensuring that your financial goals in life are achieved.

Rediscover the savings habit…

Do you remember the SSIA?  It created a saving frenzy in Ireland.  Well, even though it may seem like a bygone era –the savings habit instilled by the SSIA is more important today than ever.

Some facts to ‘saver’…

• Over 75% of the adults in Ireland are now saving regularly.
• The average person saved €305 a month in 2009.
• Annual savings out of disposable income are expected to be almost €10 billion higher in 2010 than they were in 2008.
• With interest rates at an all time low – and likely to remain so for at least the coming year – people seeking a reasonable return on savings may need to consider an alternative to the traditional bank account
• The experience of saving profitably in an SSIA has shown us that a 5-year savings period can make a lot of sense.

In fact, most of us realise that many of our financial goals in life – such as planning the holiday of a lifetime, extending and improving our home, putting money aside for University or school fees, or simply giving our children or grandchildren a flying start in life – can only be achieved through building up savings.

Some tips to help you get started

Set yourself a goal – It’s vitally important to know what you’re saving for or the amount you are trying to achieve. It will keep you focused and reward you in the end.

Keep long-term saving separate  – Don’t let your savings plan get confused with ad-hoc expenses that will always arise e.g. car maintenance. Before you set up your savings plan, ensure you have an emergency fund in place so that you are not tempted to ‘dip into’ your long-term savings.

Take responsibility for your own saving – Don’t leave having a ‘nest egg’ in the future to chance. Take control of building up that lump sum yourself, because unless you win the lottery, no one else will do it for you.

Make a habit of it - So often we think we can’t afford to save. But once you’ve started, you’ll soon get used to it and before long you might not even notice that regular saving amount going out each month.

-Brendan Lee