An Cosantóir

www.military.ie THE DEFENCE FORCES MAGAZINE | 25 HOW CAN YOU IMPROVE YOUR FINANCIAL WELLBEING? Áine Carroll, Director of Communications and Policy, in the Competition and Consumer Protection Commission (CCPC), addresses another aspect of personal well-being which is often overlooked, 'financial well-being'. We talk a lot about the importance of looking after our physical and mental well-being. What is less talked about is how to improve your financial well- being. Regardless of your income, everyone has to make decisions on a daily basis on how to manage their money. It is easy to fall into a rut of living for pay-day or sometimes using your credit card to bridge the gap in between. The decisions we make are influenced by our financial capability and the impact of those decisions is seen in our financial well-being. Last year, we commissioned Ireland's first report on financial well-being and the results were very interesting. We found that the vast majority of people are doing fine and meeting their cur- rent financial commitments. However, we found that just over half (52%) of people we surveyed have little resilience against financial shocks such as; sickness, redundancies, retirement or unexpected financial costs. Financial well-being is not about being rich, rather it is about controlling your day to day spending so that you have savings to put aside. Life is inherently unpredictable and so it is important to plan for those rainy days as well as your retirement days. What can you do to improve your financial well-being? Financial well-being is influenced by a combination of the money you have, how you use and manage that money and your inclina- tion to save. Improving your financial well-being doesn't have to mean drastic steps and limiting yourself to a stringent budget. You need to be able to live so you have to be realistic and you will be surprised how a few small changes can make all the difference. 1. Clear your debts The first step we suggest is getting on top of any outstanding debt that you have. Interest rates on credit cards and personal loans are considerably higher than the interest you will earn on savings. Ide- ally if you have outstanding debts, you should focus your efforts on paying down those first. This may mean using a little or all of your savings. But the short term pain will pay off and before you know it you will be back to saving. If you haven't already, set up a monthly standing order or direct debit for the same date that you get paid. Along with helping you avoid late payments, which can affect your credit rating, this will allow you to budget how much you have to spend for the rest of the month. Avoid if you can paying the minimum payment. 2. Get the best rate Make sure you are getting the best rates for mortgages, savings, credit cards and current accounts. This might sound like a lot of work, but our financial comparison tools on www.ccpc.ie do the homework for you. There are savings to be made by shopping around for financial products. 3. Become an active saver Taking a little time to look at how you spend your money and where you can possibly make changes will help you work out how much you can afford to put away on a weekly or monthly basis. Once you know where you are you can work out where you want to go and set your financial goals. Having reviewed your finances you may be surprised at how much extra money you have left over. Choosing to put your money into a savings account is a good way to set aside money but make sure to find out about the terms and conditions you are signing up to. There is a regular savings com- parison tool on our website that shows you the various savings ac- counts available and the interest rates on offer. Finally, building up your savings, is important, but keep an eye that you are not paying into a savings account whilst using your credit card. More information on financial wellbeing and the tools available can be found at www.ccpc.ie. Áine Carroll, CCPC's Director of Communications and Policy CCPC's Financial Capability and Well-being in Ireland in 2018

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