Carol Brick, managing director of HerMoney, shares some advice for mindful budgeting and savvy spending to help lengthen the lifespan of your paycheque.
Without a doubt, managing your paycheque wisely can help you build financial security while still enjoying life. With rising living costs in Ireland, it is now more important than ever to make sure your money is working effectively for you. By budgeting mindfully, reducing unnecessary expenses and making smart financial decisions, you can stretch your monthly income further, helping you to successfully achieve long-term financial stability.
Here are some practical tips to help you maximise your paycheque and avoid financial stress.
Create a smart budget that works for you
Having a clear budget in place is the foundation of good money management. Rather than just tracking your spending, a well-balanced budget based on the following structure should greatly benefit your financial wellbeing:
50% on essentials – rent or mortgage payments, groceries, utilities, and transport.
30% on lifestyle expenses – dining out, entertainment, and hobbies.
20% on savings and debt repayment – emergency funds, pension contributions, and investments.
Using budgeting apps can also help you track your spending and identify areas where you can make further spending cutbacks.
Automate your savings
One of the best ways to ensure you save consistently from your paycheque is by setting up an automated transfer to a savings account on the day you are paid, rather than saving whatever is left at the end of the month. Pay yourself first by allocating a portion of your salary to savings immediately.
Consider opening a high-interest savings account where your money can grow while remaining accessible. You will be able to check the various rates available from all Irish financial institutions by referring to the Competition and Consumer Protection Commission.
Reduce unnecessary expenses
It is so easy to lose money on subscriptions, impulse purchases, and excessive dining out. Conduct a personal audit, review your bank statements in detail and cancel any subscriptions you no longer use. Switch to meal planning instead of frequent takeaways, and shop at budget-friendly supermarkets to cut grocery costs.
Even small adjustments such as making coffee or your lunch at home instead of buying it daily can lead to significant savings over time.
Be strategic with debt repayment
If you have high-interest debt such as credit cards or personal loans, try to focus on paying them off as quickly as possible. Prioritise debt with the highest interest rates first to reduce long-term costs. For example, transferring credit card debt to a 0% balance transfer card can help you pay it off faster without accumulating more interest.
Switch utility providers to save on bills
Regularly reviewing your electricity, gas, phone, and broadband providers can lead to significant savings. Websites like Bonkers.ie and Switcher.ie allow you to compare deals and switch to lower-cost options easily. Many providers, including SSE Airtricity offer discounts for new customers. If you find a better deal, ask your current provider if they’ll match it before switching.
Take advantage of tax reliefs
Many people in Ireland overpay taxes simply because they don’t claim available tax reliefs. Check if you qualify for any of the following:
Rent tax credit – up to €1,000 per year for private renters.
Medical expenses relief – 20% tax relief on doctor visits, prescriptions, and treatments.
Flat-rate expenses – available for specific professions to cover work-related costs.
Visit Revenue.ie to review tax credits and submit claims through your MyAccount portal.
Contribute to a pension early
Starting a pension early can make a massive difference to your retirement. Employer pension schemes are particularly valuable because many employers match employee contributions, doubling your savings. For self-employed individuals or those looking for additional pension options, there are many flexible pension plans available on the Irish market and they all come with extremely generous tax benefits.
Invest for long-term growth
If you’re only keeping savings in a low-interest account, you might be losing money to inflation. Investing in stocks, ETFs, or managed funds can help grow your wealth over time. If you’re unsure about where to begin, consulting a financial advisor can help you choose investments suited to your goals and risk tolerance.
Build an emergency fund
Life is unpredictable, and having an emergency fund can prevent you from relying on credit cards or loans in a crisis. Aim to save at least three to six months’ worth of living expenses in an easy-access account. If your monthly expenses are €2,000, an emergency fund of €6,000 to €10,000 will provide financial security in case of unexpected job loss, medical bills, or urgent home repairs.
Increase your earnings where possible
If you’ve already optimised your spending and savings, consider ways to boost your income. This could include:
Negotiating a pay raise – Use salary benchmarking tools like Glassdoor.ie to research industry salaries and present your case.
Starting a side hustle – Freelancing, tutoring, or selling handmade products can create additional income streams.
Upskilling – Taking professional courses in high-demand fields can lead to better job opportunities and higher pay.
Investing in your career and skills can be just as important as managing your paycheque wisely.
Making the most of your paycheque isn’t just about cutting costs—it’s about optimising your finances to build wealth over time. By budgeting smartly, taking advantage of tax reliefs, reducing unnecessary expenses, and investing in the future, you can achieve financial stability while still enjoying life.
For expert financial advice on managing your salary, planning for retirement, or investing wisely, contact HerMoney where our team can help you develop a customised financial strategy that ensures your pay cheque works harder for you.
Carol Brick BA QFA PIB is the managing director of Contracting PLUS Financial and HerMoney Ltd. A UCD Economics graduate and Qualified Financial Advisor (QFA), she began her career in Financial Services over 25 years ago, and for the past 18 years, Carol’s primary focus has been on the provision of advanced financial planning advice and solutions to a wide array of clients.
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