As we head into a new year, many people in Ireland are setting goals—financial goals often topping the list.
Whether you’re trying to save for a home, reduce debt, invest wisely, or plan for retirement, having a financial planning framework tailored for Ireland is essential.
This blog post outlines a simple, practical approach to creating your personal finance plan, with strategies that can help you build a yearly financial plan that actually works—no jargon, no fluff.
Why You Need a Financial Planning Framework in Ireland
A financial planning framework is more than just a spreadsheet or budget. It’s a structured approach to understanding your income, expenses, debts, and assets—and using that information to make informed, confident decisions.
Here in Ireland, our financial landscape includes unique elements such as the PAYE tax system, PRSI and USC, government pension supports, state reliefs for savings and investments, and evolving property and mortgage markets.
So it’s vital that any personal finance plan is Irish-specific, not imported from abroad.
Step 1: Assess Your Current Financial Position
Start by understanding exactly where you stand.
Key components to review:
- Income: Wages, self-employment income, rental income, social welfare, dividends.
- Expenses: Fixed (rent/mortgage, utilities), variable (groceries, entertainment), and irregular (insurance, annual bills)
- Debts: Credit cards, loans, car finance, mortgages
- Assets: Property, pensions, savings, investments
A good tool here is a Net Worth Statement—total assets minus total liabilities.
You should also have a clear picture of your monthly cash flow: what’s left over after your essential and discretionary spending.
Step 2: Define Your Financial Goals
Your goals are the foundation of your personal finance plan. Typical goals might include:
- Creating a 3-month emergency fund
- Paying off a credit card or personal loan
- Starting or topping up a pension
- Saving for a house deposit
- Investing €200/month for your child’s education
Goals should be SMART:
- Specific
- Measurable
- Achievable
- Relevant
- Time-bound
Example: “Save €6,000 in 2025 for a wedding in 2026” is better than “Save for the wedding.”
Step 3: Budgeting with Purpose
Budgeting doesn’t mean cutting out coffee and fun—it means allocating your money with intention.
The 50/30/20 Rule (with an Irish twist)
- 50% Needs: Rent/mortgage, groceries, transport, bills
- 30% Wants: Travel, eating out, entertainment
- 20% Financial goals: Savings, investments, debt repayments
But in Ireland, some costs (like childcare or health insurance) might push the “Needs” category higher. That’s okay—adjust based on your life stage and location.
Use budgeting apps like YNAB, Revolut, or the CCPC Budgeting Tool to keep track.
Step 4: Build Your Emergency Fund
If you’re starting from scratch, this is a top priority. An emergency fund should ideally cover 3–6 months of essential expenses.
In Ireland, this means having cash on hand for:
- Unexpected job loss
- Car repairs
- Health emergencies not fully covered by insurance
- Home appliance breakdowns
Start with €500, then aim for €1,000. From there, build up gradually. Keep it in an accessible savings account, preferably with an interest rate that beats inflation (not easy—so shop around).
Step 5: Manage and Reduce Debt
Debt is one of the biggest drags on any financial plan. In Ireland, personal loans, car finance, and credit card debt often carry interest rates of 8%–20%+.
Action plan: List all debts, their balances, interest rates, and minimum repayments. Choose a strategy:
- Avalanche (pay off highest interest first—saves most money)
- Snowball (pay off smallest first—boosts motivation)
- Consolidate debt if it lowers your overall cost and doesn’t extend your term unnecessarily
Avoid payday loans or buy-now-pay-later schemes unless they’re absolutely necessary and you’ve read the terms.
Step 6: Retirement Planning
Too many people in Ireland are under-saving for retirement. Whether you’re self-employed or PAYE, now’s the time to review your pension strategy.
If you’re employed:
- Join your company’s pension scheme—especially if there’s an employer match
- Use AVCs (Additional Voluntary Contributions) if you can afford to boost your fund
- You can claim tax relief up to 40% on contributions depending on your age and income.
- If above isn’t available make sure you are enrolled in the MyFutureFund pension run by the Irish government
If you’re self-employed:
- Set up a Personal Retirement Savings Account (PRSA)
- You can claim tax relief up to 40% on contributions depending on your age and income.
Aim: Save 15–20% of your income annually towards retirement, if possible.
Step 7: Invest Smartly
Once you’ve got savings, pensions, and debt under control, you can explore investing.
Irish residents can invest in:
- Unit-linked funds via life companies (e.g. Zurich, Aviva, Irish Life, Royal London, New Ireland, Standard Life)
- Exchange Traded Funds (ETFs) (via or stock brokers or apps)
- State Savings (An Post bonds and savings certificates)
Remember:
- Investments are for the long term—5+ years minimum
- Your risk tolerance and goals matter more than short-term market noise
- Fund performance and charges vary—compare using tools like funds.irishtimes.com
Step 8: Protect Yourself and Your Family
Protection is often overlooked in personal finance plans, but it’s critical. Essential cover types in Ireland:
- Life Insurance: Protects your family if you die
- Income Protection: Pays out if you can’t work due to illness/injury
- Specified Illness Cover: Pays a lump sum on diagnosis of serious illness
- Mortgage Protection: Required for mortgage holders
Many providers offer bundle policies and discounts—get advice from a QFA (Qualified Financial Advisor) to ensure you’re not under- or over-insured
Step 9: Plan for Major Life Events
Every yearly financial plan should allow for:
- Holidays
- Car replacement
- Education costs
- Weddings or family events
- Tax bills or Revenue balancing statements (especially for self-employed or those with multiple income sources)
Break down large expenses into monthly savings goals and consider using a sinking fund strategy.
Step 10: Review, Adjust, and Celebrate Progress
A financial planning framework Ireland residents can stick to must include regular reviews:
- Schedule a quarterly money date with yourself or your partner
- Review income, spending, and progress towards goals
- Rebalance investments annually
- Update your will and life cover as life changes
Remember to celebrate wins—big or small. Paid off a credit card? Saved your first €1,000? That’s progress.
Final Thoughts
Creating a yearly financial plan doesn’t need to be complicated. What matters is that it’s realistic, personal, and reviewed often.
By using this simple financial planning framework, you’re giving yourself the best chance of success—whether your goal is financial security, freedom, or simply a stress-free life.
If you’d like help building a personal finance plan tailored to your situation, speak with a QFA or book a planning session. The earlier you start, the better off you’ll be.
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.
