Hugh Lambert No Comments

I read an article during the week in the Irish Times and it was forecasting inflation to increase 8.5%, which means the cost of living will increase by 8.5%, on top of that was a pretty high cost to start with.

I want to write today about how we can be as smart and efficient with our money as possible.

There’s a number of different ways that you could do that.

The first is tax relief on various financial products.

And the next is cash flow modeling, which is similar to budgeting.

And the last then is simple as shopping around to get better value on your health insurance and utilities.

So I’ll start with the first one, which is getting tax relief on financial products. If you’re someone who has taken on life cover on a personal basis for dependents or our families, and you’re paying €100 a month, there is a policy available which is pension term insurance.

It sounds like a pension, but it’s actually life over and you can avail of tax relief on the premiums. So if you’re paying €100 for life cover on this product and you’re paying the higher rate of income, you can claim 40% after tax back (€40). So instead of paying €100 you actually pay €60

Similarly, similar for illness covering you Income Protection.

So if you pay €100 a month and you’re paying the higher rate of income tax, you claim the 40%, which is €40 back.

Those two options are also available for company directors to pay from the company account and corporation tax is also available on monthly premiums.

So just a couple of smaller items to help be a bit more efficient and maybe save some money on financial products.

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