Kel Galavan believes we’re in a cost-of-living “reality” and it’s no longer appropriate to use the term “crisis”.
“Crisis would kind of imply that it’s acute and it might go away. This is chronic. This has been going on for a long, long time. So I believe, unfortunately, that this is our life ... and with everything that’s going on, it may not get better anytime soon.”
Whatever your preferred vernacular to describe the latest global economic shock, you might say this isn’t Galavan’s first rodeo.
Having emerged from the 2008 financial crash with a six-figure debt to repay (negative equity, how are ya?) and pivoting careers to become an independent financial educator, she’s now a passionate advocate for learning to invest.
“I myself would strongly believe that most people are very capable of learning this skill ... You’ll never regret educating yourself around money.”
This is why we’ve invited her on this week’s Better with Money podcast to unpack the savings and investment scheme being trumpeted by the Minister for Finance.
Simon Harris has offered several soundbites in recent weeks about his plans to unveil a simple way for our “squeezed middle” to grow the money they might have “in the post office or the credit union”.
“We want to make investing simpler, clearer and more accessible for ordinary people, and help their hard-earned money work harder for them over time,” Harris told an investor forum hosted by the Central Bank of Ireland three weeks ago.
But details remain scant, probably because the Minister himself hasn’t nailed them down yet either.
What we do know so far is that the proposal will not be a top-up model à la Charlie McCreevy’s SSIA scheme of the Celtic Tiger era.
Rather, it will follow the Swedish or UK model, which involves a tax-free threshold and a flat-rate tax structure, and won’t attract Capital Gains Tax.
But Galavan argues that’s like a waiter telling you the pasta of the day doesn’t come with marshmallows.
“I wouldn’t expect that to be a thing [in such a scheme].”
While Galavan still has “so many questions” about the proposal, she is nevertheless in favour of anything that gives people hope of growing their money over time.
The good news? You don’t need to wait until October to take action.
Galavan outlines the basic steps to start investing money today, instead of waiting until 2027 for the Government’s proposed scheme.
You can listen on the player above or search for Better with Money wherever you get your podcasts.
This episode is for information purposes only and does not constitute financial advice.
- Presented by Aideen Finnegan
