5 Tips to Help You with Your Finances in 2021

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13th January 2021


Welcome to the first blog for 2021 from MABS. We hope that you kept safe and healthy over the festive season and Happy New Year.

Typically, we start the new year with good intentions. Committing to new year’s resolutions of things we want to do, new habits we want to make and general hope for the year ahead. This year, however, might be different. We find ourselves in a level 5 lockdown meaning whatever plans you have for the year may already have hit a few snags. But that doesn’t mean that you can't set yourself some manageable goals for year ahead.

We’ve pulled together 5 useful tips to get you started on planning your spending (and saving) for the year ahead.

1. Make a Budget

With the ongoing uncertainty many people are currently managing their households on reduced incomes and wondering what the future holds. Now is the time to take control of what you can.

Start by making a budget, there is a list of resources at the bottom of this blog to help you get started. Take a pen and paper, gather up or open your bank statements online along with any social welfare payment receipts or pay slips. Make a line down the page and on one side, put any income (and dates if you have them). On the other side, write a list of all your bills and spending, add up the columns and take away the outgoings from the income.

Now you have a basic snapshot of the amount of money coming in and money going out. This is a good starting point. From here you can see if it is possible to increase the money coming in, or reduce the money going out. Move onto the next step for more information or use some of the resources at the end of this blog.

2. Maximising your income

Rights and Entitlements

Take a bit of time when looking at your entitlements – you may miss something that you have a right to. For example, are you a Carer for someone? If you are on Carer’s Allowance, you may also be entitled to the Household Benefits package, Carers Support Grant and free travel. This is just one example of how you can begin to explore any additional supports linked to certain social welfare payments. You can find out more on the Citizens Information website here.

Health Expenses

If you’ve never signed up for an account on Revenue, now is the time. You can claim back 20% of medical expenses you’ve had over the past four years. If you have an account already, then the new year is the time to get submitting those receipts.

Stay and Spend Initiative

If you’ve eaten out or stayed in your local or not-so-local hotel within Ireland, you could be entitled to tax relief of up to €125 (on €625 spends, or €250 per couple on €1250 spends). You can upload your receipts to Revenue to claim this back. You can check if your stay/meal was eligible here.

Income Tax Credits - Working from Home

If you've been working from home during 2020, you might be entitled to claim some of the heating, electricity and broadbands costs back if you haven't been paid by your employer for these costs. An employee who works from home can claim tax relief to cover the additional expenses, such as, heating and electricity. Revenue allows an employer to make payments up to €3.20 per day to employees who satisfy the conditions for the relief, without deducting PAYE, PRSI, or USC. Any payment by your employer of more than this figure will be taxable. Find out more here.

Income Tax Credits

If you and your partner are jointly assessed and one of you are not working or have decided to stay at home, you could transfer the credits for 2021, raising your standard cut-off point.

3. Shop around to make your money go further

Compare prices for food, gas, electricity, phone and internet. Contact your provider and ask what they are offering. If you don’t ask, you won’t know. Websites, such as, Bonkers.ie offer cost comparisons which can help you decide.

It’s not just your utility bills you could be saving on – now is the time to pull all your annual statements together and make a reminder of the renewal dates on your calendar, planner or set a reminder on your phone. You will then know when to shop around and save more money.

Here’s a few annual bills that are worth checking if you can save on:

While it’s not a utility bill, it can be a big bill that comes out every month – your mortgage – if you’re not in a fixed-rate term, you could make massive savings both monthly and annually on your mortgage repayments by switching to a lower interest-rate. You may not even need to switch your mortgage to another bank, a call to your bank might be all it needs. Check out Bonkers.ie to compare mortgage rates.

4. Start a Rainy-Day Fund

You’ve likely heard this phrase since you were five years old, but how many of us have the money to buy a new washing machine if it breaks? Many of us would struggle to pay for something like a new washing machine, without using a credit card, savings or asking a friend/family member to tide you over until next month.

So, if you’re able to save during lockdown, even if it’s just the money you would spend on petrol every week, it all adds up: €20 a week is over €1,000 in a year. Having a regular saving habit and watching your money grow is a great incentive not to spend it, unless you absolutely need to. MABS has a guide on saving which you can download here.

Remember that it’s not all about saving, getting yourself a treat now and again will help you avoid what we call “budgeting fatigue”. This is when you’re so focused on budgeting and saving that you become tired and end up spending on something, you’ll later regret.

If you need a few things and you have the money to hand, focus on the things you need rather than just a want. Make sure you are getting value for your money, and not just buying for the sake of it. The money you save on resisting the temptation, or by only buying what you need, can go into your rainy-day fund.

5. Get advice if you’re worried

Help is available. If you would like help with budgeting or some tips on spending, advisers from MABS are available by phone on our National Helpline on 0761 07 2000 from 9am to 8pm Monday to Friday or you can email helpline@mabs.ie, or use our live chat to answer any personal money and debt questions you might have. While we might not be able to meet face-to-face now, but rest assured we have your back. MABS is open and ready to provide the full range of money, debt and budgeting support.

Useful Links

You can contact your local office here, chat through our online chat or call the MABS Helpline on 0761 07 2000, Monday to Friday, from 9am to 8pm or you can check the MABS News Feed for further updates and guidance.

Follow @MABSinfo on Twitter and Facebook and Instagram for further updates.