A good income can make money easier. It does not automatically make you financially secure.
You can earn well and still feel anxious when an unexpected bill arrives. You can have a pension without knowing what is in it. You can pay every bill while wondering whether your future is receiving any attention.
Financial resilience is the room your finances give you when something changes.
1. Do you know where your money goes each month?
You do not need to account for every coffee. Know what comes in, what is already committed and what remains for the rest of life. Review three months rather than relying on an ideal month.
2. Could you absorb an unexpected cost without borrowing?
A small, accessible buffer is useful long before it reaches the often-quoted target of several months' expenses.
3. Do you know what your debts cost?
The balance is only part of the story. Check interest rates, fees, minimum repayments and the date each debt will end.
4. Do you understand your payslip?
Find gross pay, Income Tax, USC, PRSI, pension deductions, employer contributions if shown, benefits and net pay. Revenue's myAccount lets PAYE taxpayers view pay and tax details reported by an employer.
5. Do you know what is happening with your pension?
Check what you contribute, what the employer contributes, where the money is invested, the charges and what old workplace pensions you still hold.
6. Could your finances cope if income stopped?
Look at savings, employer sick pay, redundancy exposure, workplace protection and State supports. Do not assume a benefit exists because it is common in your industry.
7. Do you understand saving and investing?
Short-term and emergency money needs access and stability. Longer-term money may have time to accept investment risk. Understand charges, tax, diversification and timeframe before choosing a product.
8. Do you know where reliable information lives?
Use Revenue for Irish tax, the Pensions Authority for pension information, the CCPC for consumer and product education, and the Central Bank registers to check authorisation.
The goal is not to know everything. It is to know enough to ask better questions.
Sources and further reading
This website edition was rewritten and updated from an earlier article by Karena Duane. View the original on LinkedIn ↗