How to organise your finances for the New Year, follow a financial checklist in Ireland, and start the year with clarity and confidence.
The New Year is one of the most effective times to reset your personal finances.
After Christmas spending, a full calendar year ahead, and the close of another tax year, it offers a natural opportunity to organise your finances, review what’s working, and make informed decisions for the year ahead.
For individuals and families in Ireland, the past 12 months have brought changes in costs, interest rates, pensions, and investment taxation. Taking time now to review and plan can help you stay in control rather than reacting later under pressure.
Below is a practical, Ireland-specific guide to preparing your finances for the New Year, with a clear checklist and recent changes highlighted at each step.
Step 1: Review the Year Just Gone
Before planning forward, start by reviewing the past year. Look at:
- Your total income (salary, bonuses, self-employed income, rental income).
- Monthly and annual spending patterns.
- Savings and investment contributions.
- Any unexpected costs or financial stress points.
What’s changed in the last 12 months
- Cost-of-living pressures remain elevated, particularly across insurance, utilities, childcare, and groceries.
- Interest rates have stabilised but remain high relative to recent years, affecting both borrowing and savings.
- Many households have seen changes in pay, benefits, or working arrangements that alter affordability.
Why this matters
What worked financially two or three years ago may no longer be appropriate. A clear review gives you a realistic starting point for the year ahead.
Step 2: Create a Clear Personal Budget for the New Year
Organising your finances for the New Year starts with a realistic budget. Your budget should include:
- Net (what is paid into your bank account) monthly income.
- Fixed costs such as mortgage or rent, utilities, insurance, and childcare.
- Variable spending like food, transport, and discretionary expenses.
- Annual or irregular costs broken into monthly amounts.
What’s changed in the last 12 months
- Home, car, and health insurance premiums have increased for many households.
- Mortgage repayments have risen for those on variable rates or coming off fixed terms.
- Childcare costs and subsidies continue to evolve, impacting net household budgets.
Why this matters
Budgets that don’t reflect today’s costs often fail within months. Updating your budget ensures your plan is achievable, not theoretical.
Step 3: Build or Replenish Your Emergency Fund
An emergency fund provides financial breathing room when the unexpected happens. As a general guide, aim for:
- Four to six months of essential expenses. Not your income, what your costs are.
- Easy access with no investment risk.
What’s changed in the last 12 months
- Deposit rates have improved, making it easier to earn a modest return on emergency cash.
- Greater economic uncertainty has highlighted the importance of liquidity, especially for self-employed individuals and business owners.
Why this matters
An emergency fund protects against more than job loss — it also covers rising bills, tax liabilities, and temporary income disruption.
Step 4: Tidy Up Debt and Interest Costs
Debt management is a core part of any financial checklist in Ireland.
Review:
- Mortgage balance, interest rate, and remaining term.
- Credit card and personal loan balances.
- Opportunities for overpayments or refinancing.
What’s changed in the last 12 months
- Mortgage rates remain significantly higher than the ultra-low levels of recent years.
- New lender retention and green mortgage offers are available but often require proactive review.
- High credit card and personal loan APRs continue to erode cash flow.
Why this matters
Reducing high-interest debt delivers a guaranteed return and improves long-term financial resilience.
Step 5: Review Your Pensions and Retirement Planning
The New Year is an ideal time to review pensions.
Consider:
- Whether you are maximising pension tax relief.
- If your pension investments suit your age and risk profile.
- Consolidating old pensions from previous employments.
- If you are an employee without an existing company pension, you will probably be enrolled in My Future Fund (Auto Enrolment).
What’s changed in the last 12 months
- Continued focus on pension adequacy, particularly for the self-employed and company directors.
- Increased awareness of the benefits of pension consolidation.
- If starting My Future Fund 1.5% of your net salary will be contributed to your pension. This will impact the amount of pay you receive into your bank account.
Why this matters
Pensions remain one of the most tax-efficient ways to build long-term wealth in Ireland — but only when reviewed and structured correctly.
If you are earning over €60,000 and can maximise pension tax reliefs you will probably get better value from a private pension product instead of My Future Fund.
Step 6: Check Your Investments and Savings Strategy
Many households hold large cash balances without a clear plan.
Ask:
- What is this money for?
- When will I need access to it?
- Is it invested appropriately for that time horizon?
What’s changed in the last 12 months
- The gross roll-up rate on life assurance investment products reduced from 41% to 38%, improving long-term net outcomes.
- Market volatility reinforced the importance of diversification and long-term thinking.
- Cash returns often remain below inflation after tax.
Why this matters
Small changes in tax treatment and structure can materially improve outcomes over time — but only if your investment strategy matches your goals.
Current Returns Are Estimated At:
- Current cash deposit returns are 2% to 3%
- Low risk fund return 3% to 5%
- Medium risk funds return 6% to 8%
- High risk funds return 9% to 13%
Step 7: Review Protection and Insurance
Protection planning underpins everything else in your financial plan.
Review:
- Life insurance
- Mortgage protection
- Income protection
- Serious illness cover
- Home and car insurance
What’s changed in the last 12 months
- Income protection continues to benefit from income tax relief in Ireland, increasing its value as net pay is squeezed.
- Insurance premiums have risen, prompting many households to reassess cover.
- Greater awareness of income risk for self-employed individuals and business owners.
Why this matters
Protection should evolve as your income, family situation, and financial responsibilities change. If you bought your mortgage protection from your lender you may get better value from other providers.
Step 8: Set Clear Financial Goals for the Year Ahead
Clear goals turn good intentions into action.
Examples include:
- Increasing pension contributions by a set percentage.
- Clearing specific debts by a defined date.
- Building an emergency fund to a target level.
- Setting aside funds for future property or education costs.
What’s changed in the last 12 months
- Higher costs mean goals need to be realistic and prioritised.
- Many households are balancing growth goals with security and flexibility.
- Increased focus on medium-term planning, not just retirement.
Why this matters
Well-defined goals provide structure and direction in a fast-changing financial environment.
Step 9: Get Organised and Review Regularly
Strong systems support long-term success. Practical steps include:
- Automating savings and investments.
- Keeping financial documents securely organised.
- Scheduling regular check-ins on progress.
What’s changed in the last 12 months
- Financial services are increasingly digital, improving access but adding complexity.
- Regulatory and documentation requirements continue to grow.
- Regular reviews are more important than ever as conditions change quickly.
Why this matters
Consistency and organisation turn planning into results.
Book Your Annual Financial Review with Greenway Financial Advisors
The New Year is the ideal time to step back and make sure your finances are aligned with your goals.
At Greenway Financial Advisors, our annual financial reviews are designed to give you clarity and confidence.
We take a holistic view of your income, spending, pensions, investments, and protection — and translate that into clear, practical next steps tailored to your circumstances.
An annual review helps you:
- Understand exactly where you stand today.
- Ensure your pensions and investments remain suitable.
- Identify tax-efficient opportunities specific to Ireland.
- Plan ahead with structure and purpose.
If you’d like to organise your finances for the New Year and start with a clear plan, now is the perfect time to book your annual financial review with Greenway Financial Advisors.
Contact us now to book your annual financial review. Begin the year with clarity and confidence.
