One of the simplest and most effective things people can do to budget in 2024 is understanding their mortgage, according to financial planner Paul Merriman. 

Newstalk is teaming up with Laya Healthcare to explore wellbeing in the workplace, and one of the key trends that their recent survey found was that the cost of living is among the top stressors for employees. 

Mr Merriman told The Anton Savage Show there are plenty of ways people can stay on top of their budgets. 

“The main thing is to have a financial plan or even a budget to make sure you know what’s coming into the household and what’s going out and where it’s going,” he said. 

“Make sure you keep an eye on those costs and reduce it where you can – your gas, your ESB, your broadband, the likes of your phone bill.” 

Mr Merriman did say, however, these smaller budgetary matters don’t compare to mortgage issues. 

"It's hard to get someone to reduce you gas bill by €5 but there’s an extra €500 coming your way in mortgage payments,” he said.

Mortgage rates

While those with a tracker mortgage might benefit from European Central Bank rates falling and their mortgages reducing, others might not be so lucky. 

“You need to know what’s what,” he said. 

“It’s about having a look about what’s going in and out and understanding your mortgage. 

“The amount of people who come to us how don’t know what their mortgage is, don’t know what their rate is don't know what’s outstanding.” 

Mr Merriman suggested people “shop around” for the best interest rate on your mortgage, which could “hundreds” of euros every month. 

“You need to know what’s happening – you work hard to get money in the bank,” he said. 

“People get this idea when they’re budgeting or speaking to someone like me that I’m going to put them on a ‘money diet’. 

“You’re still going to spend 90% of your income... it’s the money you’re actually spending on a daily basis, the cost of putting a roof over your head. 

“They’re the most important things to keep an eye on, because you change them and that can really add that extra 40 or 200 a month.” 

Money stress

Mr Merriman also advised people don’t get stressed too much over money. 

“It’s easy to live in a ball of stress [but] money is supposed to enhance your life,” he said. 

“It’s not supposed to freak you out or stress you out.” 

You can find out more about budgeting at the Laya Healthcare Wellbeing Index. 

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