Your financial future isn’t something that materialises out of the blue. It is a detailed, thought-out process that begins with steps taken today.
A stable financial future is a goal that Greenway Financial Advisors can help you achieve. Let’s explore some proven ways to jump-start your financial future.
Setup your budget
Financial success begins with a well-planned budget. Budgeting is the process of creating a plan to manage how you spend your money, ensuring that you have enough for essentials like rent, groceries, and savings.
Without it, you risk overspending on non-essentials and potentially falling into debt.
- Understand Your Income: Calculate your monthly net income after tax and other deductions. This amount forms the basis of your budget.
- Identify Essential Expenses: This includes bills, groceries, transportation, and other recurring expenses.
- Allocate for Savings: Make a habit of ‘paying yourself first.’ Set aside a portion of your income for savings before accounting for other expenses.
- Plan for Non-essentials: What remains after deducting savings and essential expenses can be used for non-essentials like entertainment and luxury items.
- Monitor and Adjust: Review your budget regularly, we would suggest on a monthly basis and adjust it based on changes in income or expenses.
The budgeting process might seem tedious initially, but it becomes easier and more rewarding as you see the results.
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Pay Off High-Interest Debt
Debt can be a significant roadblock when trying to jump-start your financial future. High-interest debt, such as credit card debt, personal loans, and payday loans, can quickly spiral out of control if not managed properly.
To tackle high-interest debt:
- Prioritise Your Debts: List all your debts from the highest interest rate to the lowest. Focus on paying off the highest-interest debt first while making minimum payments on the rest.
- Consider Consolidation: Deb consolidation can be a good strategy if you have multiple debts. This means combining all your debts into one loan with a lower interest rate, making it easier to manage and potentially saving you money in the long run.
- Create a Debt Repayment Plan: This could include setting aside a portion of your income specifically for debt repayment or employing methods such as the ‘snowball method’ or the ‘avalanche method.’
Remember, the aim is to free up more of your income for savings and investment by reducing your debt burden.
Build an Emergency Fund
Here are some steps to build an emergency fund:
- Determine Your Emergency Fund Size: Financial experts often recommend having enough to cover three to six months’ worth of living expenses.
- Start Small: If you’re just starting out, aim for a smaller goal, like €500 or €1000. Then gradually increase your savings until you reach your desired amount.
- Set up Automatic Transfers: Automating your savings can make the process easier. Set up automatic transfers from your checking account to your savings account.
- Keep It Accessible: Your emergency fund should be easily accessible. Consider keeping it in a high-yield savings account offering higher interest rates than a regular one.
Invest in Your Retirement
Retirement may seem a long way off, but the earlier you start preparing, the more comfortable your retirement years will be.
- Understand Your Pension Scheme: If you’re employed, understand your employer’s pension scheme. Ensure you’re contributing enough to get any available employer match—it’s essentially free money.
- Consider a Personal Retirement Savings Account (PRSA): If you’re self-employed or your employer doesn’t offer a pension scheme, consider setting up a PRSA.
- Diversify Your Investments: Don’t put all your eggs in one basket. Diversify your retirement portfolio to spread risk.
- Monitor Your Progress: Regularly review your retirement plan and adjust your contributions or investments as necessary.
Save for Your Children’s Education
- Understand the Costs: Research the potential costs of your child’s future education, including tuition, accommodation, books, and other expenses.
- Set up a Dedicated Savings Account: Consider setting up an account specifically for education savings. This will help keep the money separate from your other savings and expenses.
- Consider Education Bonds or Funds: These are specifically designed for education savings and can offer good returns over the long term.
- Start Early and Save Regularly: The earlier you start, the more time your money has to grow. Even small, regular contributions can add up over time.
Invest in Property
- Own Your Own Home: Get on the property ladder by purchasing a home using a mortgage. Now instead of paying rent, you are paying off a mortgage and in time you will own the property.
- Understand Your Goals: Are you looking for rental income, capital appreciation, or both? Your goals will determine your investment strategy.
- Research the Market: Understand the current market conditions, potential growth areas, and risks involved.
- Consider Your Financing Options: Will you pay cash, get a mortgage, or seek investment partners?
- Work with Professionals: Consider working with a real estate agent, financial advisor, or attorney to help you navigate the process.
Investing in real estate requires patience and diligence, but the rewards can be substantial.
Start a Side Hustle
In this age of the internet, starting a side hustle has become easier than ever. It can be a great way to supplement your income and even turn a hobby or passion into a money-making venture.
- Identify Your Skills or Interests: What are you good at, or what do you enjoy doing in your free time? These can often be turned into profitable ventures.
- Market Research: Is there a demand for the product or service you’re offering? Who are your competitors, and how can you differentiate yourself?
- Create a Business Plan: Even a simple plan can help you stay focused and measure progress.
- Promote Your Side Hustle: Use social media, word of mouth, or other marketing strategies to get the word out.
Remember, every big business started small. Even a small side hustle can grow into a full-time venture over time.
Create Multiple Streams of Income
Having multiple streams of income can provide financial stability and increase your earning potential. This can include your main job, a side hustle, investments, rental income, etc.
- Diversify Your Income: Like diversifying investments, diversifying income can spread risk. If one source of income falls, you have others to fall back on.
- Passive Income: This income requires little to no effort to earn and maintain. It can come from investments, real estate, or businesses.
- Invest in Skills: Investing in new skills or education can open up additional income opportunities.
Remember, the key is to create a balanced and sustainable mix of income streams that align with your skills and lifestyle.
Invest in Mutual Funds
Investing in mutual funds can be a good choice for beginner investors due to their diversification and professional management. However, they come with fees and can have lower returns than individual stock investing.
- Understand the Fund: Know what assets the fund invests in, its investment strategy, past performance, and fees.
- Consider Your Investment Goals: Different funds suit different investment goals, risk tolerances, and investment horizons.
- Diversify Your Investments: Don’t put all your money in one fund. Consider investing in multiple funds to spread the risk.
Invest in Exchange-Traded Funds (ETFs)
ETFs are similar to mutual funds but are traded on stock exchanges like individual stocks. They offer diversification, are more liquid than mutual funds, and usually have lower fees.
Consider the following when investing in ETFs:
- Understand the ETF: Know what assets the ETF tracks, its past performance, and its fees.
- Consider Your Investment Goals: Different ETFs are suited to different investment goals, risk tolerances, and investment horizons.
- Diversify Your Investments: Don’t put all your money in one ETF. Consider investing in multiple ETFs to spread the risk
Get a Financial Advisor
Getting a financial advisor can be a wise decision when trying to jump-start your financial future.
They can provide personalised advice based on your financial situation and goals.
At Greenway Financial Advisors, we have a team of dedicated professionals who can help you make informed financial decisions.
Whether you’re planning for retirement, saving for your children’s education, investing in property, or navigating the world of stocks and bonds, we’re here to guide you every step of the way.
Get Life Insurance
- Understand the Types of Life Insurance: There are different types of life insurance, including term life, whole life, and universal life. Understand which type is best suited to your needs.
- Consider Your Financial Obligations: Your coverage amount should be based on your financial obligations, such as your mortgage, debts, and dependents’ needs.
- Regularly Review Your Policy: Your insurance needs can change over time. Regularly review your policy and update it as necessary.
Protect Your Assets
Asset protection involves strategies to protect your assets from potential lawsuits or creditors. This can include things like insurance, trusts, and business entities.
- Understand Your Risks: Different assets come with different risks. Understand what risks you face and how to mitigate them.
- Get the Right Insurance: Insurance is a key part of asset protection. Make sure you have adequate coverage for your assets.
- Consider Professional Advice: Asset protection can be complex. Consider getting professional advice to ensure your assets are properly protected.
Contact Greenway Financial Advisors to Jump-Start Your Financial Future
If you’ve made it this far and are thinking about ways to jump-start your financial future. And we’re here to help.
Greenway Financial Advisors offers a range of services to help you achieve your financial goals.
Contact us today to start your journey to financial success. Remember, the first step is often the hardest, but with us by your side, you won’t walk alone.
How do I start my financial future?
Create a annual budget based on income coming in and expenses going out.
Make sure you can life within your means. If you can’t you need to reduce your expenses or increase your income.
Set out clear and realistic financial goals
Short-Term Financial Goals
These are objectives you aim to achieve within the next 12 months.
They focus on building strong financial habits and putting key foundations in place. Examples include:
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Reaching a specific savings target
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Setting up a pension or investment plan
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Creating an emergency fund
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Getting your finances organised and on track
Short-term goals help create momentum and confidence, making it easier to progress towards your medium- and long-term financial plans.
Medium-Term Financial Goals
These are objectives you aim to achieve over the next 2 to 5 years.
They often involve meaningful life or career progress and typically require structured planning and regular saving. Examples include:
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Buying a property or carrying out significant home improvements
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Gaining a new qualification to boost your earning potential
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Starting a business or creating an additional income stream
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Putting clear plans in place for your retirement
These goals sit between short-term priorities and long-term ambitions, helping to bridge today’s actions with your future lifestyle.
Long-Term Financial Goals
These are objectives you work towards over 5 years or more.
They focus on long-term security, independence, and the lifestyle you want in the future.
Because of the longer timeframe, they usually involve disciplined investing and regular reviews. Examples include:
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Achieving financial independence
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Building a comfortable retirement income
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Paying off your mortgage
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Funding children’s education
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Growing and preserving wealth for the next generation
Long-term goals guide your overall financial strategy and help ensure today’s decisions support the life you want in the years ahead.
What are the six key areas of personal financial planning?
The six key areas of personal financial planning, in the order they are typically addressed, are:
- Cashflow & Budgeting
Understanding your income and expenses so you can live within your means and save consistently.
- Emergency Fund
Building a financial buffer to cover unexpected costs or temporary loss of income.
- Protection Planning
Putting the right insurance in place (life cover, income protection, serious illness cover) to protect you and your family.
- Home Ownership Planning
Saving for a deposit, securing a mortgage, and planning for the ongoing costs of owning a home.
- Debt Management
Managing and reducing high-interest debt while structuring long-term debt, such as a mortgage, sensibly.
- Investments, Retirement & Estate Planning
Growing wealth through pensions and investments, planning for retirement, and ensuring your assets are passed on according to your wishes.
This sequence reflects how most people progress financially, building stability first, then securing a home, and finally focusing on long-term wealth and legacy.
How do you create financial goals?
Creating financial goals involves identifying what you want to achieve financially, setting specific, measurable, achievable, relevant, and time-bound (SMART) goals, and then creating a plan to reach these goals.
This could include saving a certain amount each month or investing in certain assets.
How can I get better at finances?
To improve your financial wellbeing, start by building a strong understanding of personal finance and turning that knowledge into consistent habits.
This includes educating yourself on key financial concepts, creating and sticking to a realistic budget, and regularly reviewing your financial goals to stay on track.
Seeking guidance from a financial advisor can help you make informed decisions, while financial management tools and apps can make it easier to track spending, savings, and progress over time.
What is the 50-30-20 rule?
The 50/30/20 rule is a simple budgeting framework that helps you manage your money effectively.
It suggests allocating your after-tax income as follows:
50% on needs – essential expenses such as housing, utilities, groceries, transport, and insurance
30% on wants – discretionary spending like dining out, holidays, entertainment, and hobbies
20% on savings and debt repayment – building an emergency fund, contributing to pensions or investments, and paying down debt
This rule provides a clear structure for balancing day-to-day living with saving for the future, while still allowing room to enjoy your lifestyle.
What is the 50-30-20 rule?
Restarting your life financially can feel overwhelming, but it’s absolutely achievable by taking clear, practical steps.
The key is to focus on progress, not perfection, and rebuild your finances in the right order.
1. Get a Clear Picture of Where You Are
Start by listing all sources of income, monthly expenses, savings, debts, and interest rates.
Knowing your exact starting point gives you control and removes uncertainty.
2. Stabilise Your Cashflow
Create a simple, realistic budget so your spending is lower than your income.
Focus on essentials first and cut or pause non-essential expenses while you regain stability.
3. Build a Small Emergency Fund
Aim initially for €1,000–€2,000 to cover unexpected costs. This prevents setbacks from pushing you back into debt.
4. Tackle High-Interest Debt
Prioritise clearing expensive debt such as credit cards or overdrafts. Paying these down quickly frees up cash and reduces financial stress.
5. Put Protection in Place
Make sure you have basic financial protection, such as income protection or life cover, especially if others depend on you. This safeguards the progress you’re making.
6. Start Saving and Investing Again
Once stable, begin saving regularly and consider pensions or long-term investments, even with small amounts. Consistency matters more than size.
7. Set Clear Short, Medium, and Long-Term Goals
Define what you want to achieve over the next year, 2–5 years, and beyond. Goals give your financial plan direction and motivation.
8. Get Professional Advice if Needed
A financial advisor can help you create a personalised plan, avoid costly mistakes, and rebuild confidence faster.
A financial reset isn’t about what happened in the past — it’s about making better decisions from today onwards. Small steps, taken consistently, can completely change your financial future.
