How to get the most out of your savings

In today’s uncertain economy, getting the most out of your savings is crucial. One of the easiest ways to improve your financial wellbeing is to ensure the interest on your savings outpaces the inflation rate.

However, many of us need help figuring out where to begin - how much should we save? Where should we put our money? and how can you make your savings work harder for you?

Here Nick Charalambous, Managing Director of Alpha Wealth, shares his guide to achieving the best possible returns on your savings by selecting the right institutions and exploring alternative savings options with competitive advantages.

Get the Best Return on Savings

Look beyond Irish banks for better returns on your savings. Traditional options like the Credit Union, Post Office, or Irish banks are no longer the only choices.

International institutions such as Revolut, Trade Republic, Raisin, and N26 offer competitive interest rates. Diversifying your savings across these alternatives can yield better returns and is a crucial strategy for maximising your savings potential.

Start Saving Early

Saving early is crucial to harness the benefits of compounding. Compounding means earning interest on your interest, accelerating wealth growth over time. The earlier you start, the more time your money has to grow, leading to significantly larger returns.

Even small, regular contributions can grow substantially, providing a strong financial cushion for the future. Start early to maximise your investments and ensure a secure, prosperous financial future.

Save First, Spend Later

Warren Buffett advises saving before spending, meaning you should prioritise setting aside money before non-essential purchases. This approach builds a financial cushion, allowing you to invest in long-term opportunities without worrying about debt.

Being smart with your money and planning ensures financial stability and reduces stress. Save a portion of your income first, then enjoy spending what’s left, knowing you’ve secured your future.

Ensure the Return is Higher than Rate of Inflation

Basically, you want to ensure that the interest or returns you’re getting on your savings are higher than the inflation rate. If inflation erodes your money faster than it grows, you lose value.

Aim for savings or investments that outpace inflation so your money retains its value over time and you don’t lose out.

Consider your savings goals: short, medium and long term Setting short, medium, or long-term financial goals is essential to choosing the right place to save money. For short-term goals, an instant access savings account works well.

For longer-term savings, consider options from insurance companies like Zurich or Aviva, which often offer better interest rates. Matching your savings goals with the appropriate institutions will help maximise your returns.

Book a financial review with Alpha Wealth at www.alphawealth.ie for trusted financial advice on tax savings, pensions, investments, and more.

About Alpha Wealth

Alpha Wealth is an impartial financial advisory company that aims to simplify finance for individuals, families, and companies.

Alpha Wealth provides pension, savings, and protection advice and empowers people to achieve financial freedom through personalised financial solutions.

Headquartered in Little Island, Cork, with offices in Cork and Dublin, Alpha Wealth is supported by a team of more than 10 qualified financial advisors with over 20 years of valuable experience in financial advice.

All Alpha Wealth Financial Advisors hold QFA qualifications and operate on a non-commission basis.

Regulated by the Central Bank of Ireland, Alpha Wealth manages a robust portfolio of assets exceeding €200 million.

ABOUT THE AUTHOR

Nick Charalambous is the Managing Director of Alpha Wealth. With a Cypriot background and having been raised and educated in London, Nick has worked in investment and private banking for some of the biggest banks in the world. With over 25 years of financial services experience in Cork, primarily as a financial advisor with AIB and Ulster Bank, Nick has built up an extensive knowledge of the financial services environment, which he shares with his clients in many areas of personal finance.