8 MONEY SAVING MYTHS YOU SHOULD BE AWARE OF

8 MONEY SAVING MYTHS YOU SHOULD BE AWARE OF

Money Saving
At Juggle, we love finding the small, simple changes that help you better control your spending, grow your savings or simply free up your money for fun stuff. However, there are times when what we believe to be saving us money could actually be costing us in the long run. Here are some notions and pitfalls that you should be aware when it comes to saving your money:

1. SAVING MONEY IN THE BANK WILL EARN YOU MONEY!

There are a few issues to take into account here:
  • Rates on deposit accounts can be as low as 0.01%, and few savings accounts offer rates of more than 4%.
  • You pay 41% tax on any interest that you earn.
  • Inflation – Inflation is basically an indication of how much the price of goods is increasing over time. If your savings are earning less than inflation then you are basically losing money!
So, if for example, you save a lump sum of €5,000 for a year and earn interest at a rate of 0.01%. Your balance at year end before inflation would be around €5,000.50. However, when take tax from that it drops to €5,000.30. Worse still if inflation is say 1%, then your money at year end would buy you goods worth the value of €4950.50, meaning you’ve lost €50! Luckily, today, inflation in Ireland is just below zero, but it is heading for positive territory soon.
So if you have a savings account beware of the rate – also be aware that some savings accounts rates change over time, so you may be earning even less now than when you opened the account. Check your account and switch to make sure you are not losing money.
In Juggle, we do all this work for you! Juggle will
  • Let you see how your savings product is performing compared to all other options available.
  • Notify you of any upcoming events on your savings product. For example if you have a savings account whose rate changes after 1 year, then we will let you know so you can change.
Remember we are 100% independent so we will present every possibly product and all comparisons are done using your data to make sure you are getting the right solution for your circumstances. So sign up today and be kept informed of our release later this summer 

Money Saving
At Juggle, we love finding the small, simple changes that help you better control your spending, grow your savings or simply free up your money for fun stuff. However, there are times when what we believe to be saving us money could actually be costing us in the long run. Here are some notions and pitfalls that you should be aware when it comes to saving your money:

1. SAVING MONEY IN THE BANK WILL EARN YOU MONEY!

There are a few issues to take into account here:
  • Rates on deposit accounts can be as low as 0.01%, and few savings accounts offer rates of more than 4%.
  • You pay 41% tax on any interest that you earn.
  • Inflation – Inflation is basically an indication of how much the price of goods is increasing over time. If your savings are earning less than inflation then you are basically losing money!
So, if for example, you save a lump sum of €5,000 for a year and earn interest at a rate of 0.01%. Your balance at year end before inflation would be around €5,000.50. However, when take tax from that it drops to €5,000.30. Worse still if inflation is say 1%, then your money at year end would buy you goods worth the value of €4950.50, meaning you’ve lost €50! Luckily, today, inflation in Ireland is just below zero, but it is heading for positive territory soon.
So if you have a savings account beware of the rate – also be aware that some savings accounts rates change over time, so you may be earning even less now than when you opened the account. Check your account and switch to make sure you are not losing money.
In Juggle, we do all this work for you! Juggle will
  • Let you see how your savings product is performing compared to all other options available.
  • Notify you of any upcoming events on your savings product. For example if you have a savings account whose rate changes after 1 year, then we will let you know so you can change.
Remember we are 100% independent so we will present every possibly product and all comparisons are done using your data to make sure you are getting the right solution for your circumstances. So sign up today and be kept informed of our release later this summer 

  1. THERE’S PLENTY OF TIME TO START SAVING FOR A PENSION

Sure, but the longer you leave it, the harder it’ll be to reach your goal.  Every 10 years that you delay starting saving means you double the cost of how much you need to put away to get to the same place when you’re 65. Also the State pension looks to be shrinking, as the State will struggle to handle the aging population. At present, there are more than 420,000 Irish people over 65. By 2050, there’ll be almost two million retirees. For a simple calculator to help you see your current retirement fund situation, see here.

  1. FLEXIBLE MORTGAGES CUT THE COST OF BUYING A HOME

Flexible mortgages let you make extra repayments on your mortgage whenever you like (most variable rate mortgages are flexible mortgages). Extra payments can significantly reduce your mortgage debt and save on interest charges. If you make numerous extra payments, you could take years off the total repayment time, saving thousands in interest. It’s a particularly good idea for people with an irregular income. However, if you are not sure that you will be able to make additional payments, then you may simply be paying a higher interest rate for no benefit. Banks now offer lower fixed rates e.g. Ulster Bank recently cut its fixed rate to a full percentage point lower than its variable rate, offering you savings of thousands.

  1. SWITCHING TO A LOWER-RATE MORTGAGE WILL SAVE YOU MONEY

Not exactly a myth, but switching your mortgage provider for a marginally lower rate will not always result in savings. You must consider the costs and charges of switching, such as brokerage and conveyancing fees. Use our mortgage switching calculator to help you find out if switching is your best option to saving money. You should also check the conditions of the switch as some providers are now offering to cover the costs.

  1. EXTENDED WARRANTIES ARE REQUIRED IN CASE SOMETHING GOES WRONG

Businesses offer extended warranties on goods because they know consumers are risk-averse when it comes to money, so they advertise warranties as insurance packages. What they don’t advertise are consumer rights. People hoping for peace of mind buy these warranties (which can cost almost half the retail price of the product) that ‘cover’ buyers for two or three years after purchase, even though under Irish law, consumers have up to six years to seek redress for faulty or defective items (both new and second-hand). EEC Ireland also found that warranties are often unclear, and not a guarantee for redress. You should only buy warranties when you feel they offer you more coverage than your consumer rights.

  1. ELECTRICAL ITEMS THAT ARE SWITCHED OFF DON’T WASTE MONEY OR ENERGY

Appliances still use 20% of the electricity when switched off but left plugged in. Unplug all unused electrical devices. A typical household could save a total of €3.88 per month or €46.56 per year by just plugging out their appliances each night.

  1. TAKING ADVANTAGE OF FREE DELIVERY WILL SAVE YOU MONEY

Ever buy something small off Amazon and then decide to spend more to get the ‘Free Super Saver Delivery?’ Most of the time you end up impulse buying something you don’t want or need. If free shipping is important to you, check out sites like FreeShipping.org to get coupon codes for free shipping that won’t cost you more money.

  1. SPECIAL OFFERS IN SHOPS WILL REDUCE YOUR BILLS

Not all special offers guarantee value for money. Take buying in bulk for example. This includes offers like ‘Buy 1, get 2ndhalf Price.’ Whether or not these save you money depends on usage. If the sale is on perishable goods (which are often sold on special offer when approaching their use-by-date) that really can’t be frozen (Check out our guide on food storage than can help you here), or things that you aren’t likely to use a lot of, you should ask yourself if you are really going to use them in time or not. The obvious exception is non-perishables which you regularly use – these are always a good money-saving bulk-offer purchase, if you have the storage space.
Another way shops encourage you to spend more (while making you think you’re saving money) is by slashing prices. If you are like us, you love a bargain. But whether it’s a new TV or trolley loads of cheap clothes, it’s only a bargain if youreally need it, or if you would have bought it at full price anyway. Buying something because it wears a 50% off sticker, doesn’t save you money unless it is something you really need and will use, otherwise it simply costs you money.

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