Managing Your Money
Individuals and families are feeling the impact of national austerity measures and as a result the amount of income left after paying for essential items is decreasing.
This year is yet another year that is delivering families and individuals some tough financial challenges. There are of course other factors that can contribute to financial difficulties such as illness, relationship breakdown an unexpected expense such as a fire, death, robbery etc.
However, this financial year need not mean unnecessary stress and debt. What ever your circumstances are we hope that by encouraging you to look at your finances honestly it will help you highlight where your money is going and start you on the first steps of budgeting and managing your money more effectively.
We need to change our view of and relationship with money. Budgeting is the key. While most of us find budgeting boring it is absolutely essential - a budget is a plan of money you expect to receive and how you expect to spend it.
A budget is important because it will show you:
- How much money is coming into your household.
- How much money is going out.
- How much you can afford to offer to those you owe money to.
- How you can best plan your spending in the future.
The Erris Credit Union Limited Top Golden Tips for Managing Your Money in are;
Keep track of your spending. Keep your receipts or take note of what you spend your money on. It will help you understand where your money is going and it might just be an eye opener.
Estimate your income and expenditure for a set period and budget accordingly. But be realistic and don’t underestimate!
Get into the habit of saving. Try to save at least 5% of your regular income for emergencies.
Shop around and get the best deals and look at cost comparison websites.
There are times in our lives when we run short of funds. If you have to take out a loan, be sure you only borrow what you can comfortably afford to repay. You should match the repayment term to the purpose of the loan i.e. don’t make the mistake of paying off Christmas over a number of years. Best advice is to stay away from credit cards and not to use MoneyLenders.
You can download a budgeting guide to print off and use – please see below!
Modern living involves the payment of all kinds of regular bills, such as mortgages, electricity, road tax etc. Using the credit union Budget Account service, provided normally at a charge, members can release themselves from the burden of having to remember to pay these bills, and also save themselves the time and inconvenience involved in making each individual payment. Some credit unions also have a facility whereby they can pay the local County Council and any number of banks on a monthly basis for a fixed amount.
How does it work?
You decide which regular bills you want to include in the budget plan. Next, you estimate how much each bill will be over the twelve-month period, and total all of them up. Members should be well advised to over-budget a little in case of emergencies and increases in the cost of some of these bills. Divide the total amount by 50 if paying weekly or by 11.5 if paying monthly. Direct Debits are also available for paying bills including E.S.B and Eircom.
The Quick Pay facility can save members queuing time. It can be used for making loan repayments or lodgements to savings. Lodgements to loans or savings can also be made by standing order from the bank, deduction from wages (where employers agree) or by posting a cheque or postal order to your local credit union.
Employers can now quickly and efficiently forward their employees’ salaries to their local Credit Union. The employee can then allocate their salary to various different accounts if they wish.