Protecting your household finances from inflation.

Inflation is the measure of the rising cost of goods and services over a given period of time. But its dramatic arrival globally over the past months means that many people may be caught out by how sharp the rate of inflation is. The massive increase in the cost of electricity, petrol and food poses a financial challenge for everyone.

Inflation hits us all in two ways. First, when the price of goods and services rise. Most people are keenly aware of the rising cost of food, or of the cost of fuel to run our cars. But there is another side to inflation that is equally damaging: over the long-term, it reduces the buying power of our money. Put simply, it means that €10 in 10 years’ time will buy less than it does today. And this has far-reaching consequences, including how much we all will need to plan for when it comes to saving for a child’s education, replacing a car and even planning a retirement.

Taking back control – while there may be limits to what any one person can do to slow or stop inflation nationally, there are steps worth considering limiting its financial impact. For example, it worth considering how much food waste is generated per household in Ireland each year. According to the EPA, it works out at about €700. Surely, this is an area that can be examined more closely. Additionally, how we manage fuel usage can also be examined more closely. This includes fuel to drive our cars and heat our homes. Aviate offers a full range of car finances and home improvement loans for members examining more energy efficient options. You can check out our full range of member loans HERE.

When it comes to the long-term value of money, instead of leaving money on deposit, some investment will be needed to retain buying power. This can be done very tax-efficiently through any of the many pension options available in Ireland (workplace schemes and PRSAs). In the non-pension space, sufficiently diversifying a portfolio means that investment risk is spread.

And finally, keep in mind that here at Aviate Credit Union, we offer members our unique household budgeting opportunity through our Budget & Money Management Scheme.  It is ideal for bill payment and more! This service was first offered by Aviate Credit Union and some of the benefits include:

·         On-time payment of your most important bills. 
·         Ease of household finances. 
·         No late payments
·         We arrange the entire payment process. 

To learn more, talk to a staff member or download a form HERE.