We have seen so many news articles about the current Pandemic that the whole world is facing, which has effected everyone due to Covid-19. So what can we do in order to protect ourselves if you are feeling worried about our personal finances.
Now is a great time to sit down and get organised with your personal finances and re evaluate your financial & lifestyle goals. This is a good time to keep a certain amount in cash and build up your emergency fund just in case you may need it due to an unexpected event. Try find ways to save yourself money if possible by shopping around online, this can be for household utility bills, insurance, loans or credit cards. Head over to to checkout RSVP article on where I shared tips to help save money during lockdown.
They are saying Millennial's are now the worst off after the last recession compared to baby boomers, and gen z, and now with the Covid -19 pandemic we will have faced two recessions after coming out of college.
Some experts say that we may experience inflation on certain staple goods in the coming months, we have already seen the shortages of essential items in our local grocery stores such as eggs, the supply and demand means we may see an increase in prices, that has already happened for the price of eggs in United States according this article in The Wall Street journal -"Wholesale egg prices have more than tripled as consumers’ coronavirus-driven buying clears supermarket shelves, piling up costs for grocers as they struggle to keep the staple in stock and affordable."
However on another positive note here in Ireland new figures from the Central Bank of Ireland shows that deposits rose by €3 billion in April, the largest increase seen since the financial regulator began collating data in 2003 and the biggest increase in household savings recorded, as consumers stop spending during the Covid-19 lockdown. With restrictions being lifted from this Monday, people are advised to try and support local business within their County where possible.
Also this weekend as the Government gathered to discuss hot topics and a coalition, Fianna Fail have put forward a proposal that first time buyers could access their pension fund in order to fund their house deposit. A lot of people would find this some positive news, as we know it hasn't been easy to save for a house deposit over the last couple of years with the high cost of living and rental accommodation prices in Dublin especially at record highs. "Owning a home is wealth. It means you don't have to pay rent when you retire, and therefore don't need as big as a pension - senior Fine Gael member who also supports this proposal"
I have wanted the government to introduce something like this for a long time now to help Millennial first time buyers, In the UK last year you could avail of an investment scheme tax free called an ISA (Investment Savings Account) where you save a monthly amount for a number of years and at the end you can use that money for your house deposit and get a government bonus top up of 25% up to a limit. "If you are saving to buy your first home, ISA and the UK Government will boost your savings by 25%. So, for every £200 you save, receive a government bonus of £50. The maximum government bonus you can receive is £3,000." www.helptobuy.gov.uk. I believe something similar to this was introduced a number of years ago in Ireland. The UK government have now introduced a LISA( Lifetime Investment Savings Account) which may be considered better as you can use "the Help to Buy ISA to buy a home and it also gives you the choice to save as cash or invest in stocks and shares, while Help to Buy ISAs only allow you to save as cash. Investing in the stock market gives you the chance to make more money than cash alone. ISAs are a great way for UK residents to save or invest up to £20,000 tax-efficiently each year." - www.wealthify.com
I think this first time buyer incentive is definitely welcomed and may make it possible for many Millennial's to purchase a house a lot sooner than they thought. I would advise people to consider all options as it means your retirement savings over the last couple of years that you have built up will take a big hit if you decide to take money out for a house deposit and a mortgage is a big financial decision for anyone, but I know for a lot of people they may not feel they have another option, and would be glad to see this introduced.