Saving more money is a top priority for many people this year.
LARGE numbers of people have resolved to get their personal finances in order for the coming year.
Putting aside money in savings was cited by 44pc of people in a survey conducted by Taxback.com. A further 20pc said they would budget properly in 2021. The findings come at a time when savings in banks and credit unions are at record highs. This has prompted fears that the Government may have to incentivise people to get them to spend some of the money they have set aside.
Central Bank figures show the total in deposit account held by households hit an all-time high of €136bn in October. This was up by €24bn since the pandemic hit. Business development director at Taxback.com Barry Cahill said that if people save even more in the coming months the Government may have to incentivise people to part with their cash in 2022.
“While many households have faced a real possibility that Covid-19 and the resulting economic havoc might leave them unable to pay their mortgages or deal with other major expenses, the amount that people have saved has boomed.”
He said the Government and many economists were hoping that this trend would reverse, and that people would start spending some of this record level of savings. But the Taxback.com survey shows that saving even more appears to be the primary goal for 2022 for a large number of those surveyed.
“Excessive saving over the long-term can work contrary to supporting economic growth and can even threaten it, so the Government might have to come up with some novel ways to entice people to keep their money in circulation rather than sitting in bank accounts – which at the moment are offering nothing by way of return.”
The survey found that a split between those who say their spending has improved since the pandemic began and those who say it has deteriorated. Three out of 10 said they had improved their financial behaviour, with the same number saying the opposite. The Taxback.com survey revealed that just 11pc of people plan to be more proactive in terms of looking for better deals on insurance and in getting their tax back.
Mr Cahill said many people are unaware of the significant price differences on various products, or about tax relief or other benefits that they are entitled to avail of. He said this is why it is up to the experts to highlight the many ways which people can cut their costs and save money without having to sacrifice.
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This content is taken from a previous article published by independent.ie on 04-01-22,written by