Well, now that we are well into the first quarter of a new financial year the picture for 2025 is still somewhat uncertain. The Irish economy is forecast to grow, but at more modest levels, a new US President, the war in Ukraine and the economic uncertainty as a result continues and the geopolitical backdrop around the world is all a bit tense at the moment.

So how does all of this translate into your personal finances? We’d like to set out a few thoughts to help you navigate through these uncertain times.

Focus on the long term

It can be so easy to get caught up in the immediate impacts of these issues. However, remember your long-term goals. Are you saving for retirement or maybe for the kids’ education in 10 years’ time? If so, does it really matter if your investment fund has dropped a little in the short term? Staying committed to your long-term plan is most likely the best way to achieving your financial goals, as opposed to making short-term tactical decisions.

Get your money working for you

Interest rates have gone up, but unfortunately hardly at all for savers. Money in the bank is just making you poorer, as it is eaten away by inflation. We also understand that not everyone wants to significantly increase the level of risk taken with their money. Talk to us about other alternatives available – there are some very attractive multi-asset investment options out there, with high levels of capital protection for the more conservative investors.

Don’t make rash decisions

Research* suggests that the pain of losing money impacts people psychologically about twice as much as the pleasure experienced when making money. This is important, as this pain leads people to make ill-considered and often costly financial decisions. Now is not the time to make knee-jerk decisions. None of know what the markets will do tomorrow, next week or throughout 2023. So don’t try and time them by suddenly exiting (or entering) the market. Stick to the plan. 

Keep saving

Particularly with the cost of living challenges that everyone is experiencing today, it can be hard to keep saving. We are also sometimes asked if it makes sense to invest as markets have fallen and remain volatile. Our answer is yes, it does make sense, but in a controlled way and maybe spread over time. Think of markets having fallen as a discount sale – we all like buying things at reduced prices!

Economies and markets are cyclical

Shut out the noise, the good days will return again. Avoid the doomsayers in the media who suggest the world is ending. Instead listen to the people you trust about your finances – we hope that’s us! We’ll keep you on the right path by keeping you focused on what matters – achieving your long-term financial objectives.