Investing to Beat Inflation Ireland: Your Complete Guide

You know that feeling when you take out a tenner, and it just doesn’t stretch as far as it used to? Like it barely covers a takeaway coffee and a scone these days? That’s inflation quietly doing its thing — nibbling away at your money’s value while it sits politely in the bank.

In Ireland, we’ve felt the sting of rising prices in everything from pints to electricity bills, and while inflation is easing a little (hovering around 2% in March 2025), the effects still linger. So, how does inflation mess with our savings so wantonly — and why investing, especially for those of us in Ireland, might just be your financial umbrella for the rainy days ahead?

Understanding Inflation's Impact on Irish Savings

Let’s say you tucked away €10,000 under your mattress — or, more likely, in your bank account — and didn’t touch it for a year. With inflation at 2%, that same €10,000 would quietly lose about €200 in value. You wouldn’t see it vanish — it’s still sitting there — but you’d feel it when you go to spend it and it just doesn’t buy what it used to. This is a key concern for anyone with savings in Ireland.

And here’s the kicker: most Irish savings accounts offer teeny-tiny interest rates, like 0.01%. That’s basically a polite thank-you note from your bank for parking your money there, while inflation is running rings around it.

You can read more about Inflation in Ireland here.

I remember chatting with a friend who proudly told me they had €15,000 saved. Amazing, right? But when we did the maths, we realised that after a few years of inflation doing its thing and with such low interest, their hard-earned savings were shrinking in real terms. “It’s like my money’s going backwards,” they said. And they weren’t wrong. This is a common sentiment among savers in Ireland.

The inflation rate in Ireland increased to 2.20%. In the long term, Ireland's Inflation Rate is 1.5%, according to our econometric models.

The Cost of Inaction: Why Not Investing Hurts Irish Savers

If you’re thinking, sure look, at least I’m not losing money like in the stock market, I hear you. But here’s the thing: not investing comes with its own risks, especially in Ireland's economic climate.

Take a read of this article about the current outlook for inflation and interest rates.

Savings Erosion and Lost Dreams

That dream of upgrading your home, sending the kids to college, or enjoying a laid-back retirement becomes harder to reach if your money is constantly being chipped away by inflation. For many Irish families, these are major financial goals.

Missing Out on Irish Growth Opportunities

Imagine someone in 2021 who took the leap and invested in the Irish stock market — they could’ve seen a return of over 28%! That’s the kind of growth that helps your money outrun inflation, not just keep pace. And while past performance isn't indicative of future results, it highlights the potential benefits of investing in Ireland.

Investing in Ireland: A Beginner's Roadmap

Now I’m not saying you need to become the next Warren Buffett. But dipping your toe into investing — even with modest monthly amounts — can help your money grow rather than quietly shrink. This is particularly relevant for those seeking financial security in Ireland.

Better Returns Are Possible

Over time, investments like diversified ETFs or a long-term buy-and-hold with stocks tend to outpace inflation. Make it easier to get started by teaching yourself the skill of investing. I started with €50 a month.

Tax Incentives for Irish Investors

And if you’re someone who likes a good deal (who doesn’t?), certain investment options like State Savings are DIRT-free. That means more of your money gets to stay yours. These tax perks are a significant advantage for investors in Ireland.

Sustainable Investing Is a Thing Now

If a better world is what you are looking for it is possible now to align your investments with your values. ESG funds — that’s Environmental, Social, and Governance-focused funds — are becoming popular here in Ireland. So, you can do good while doing well financially.

Getting Started: It’s Easier Than You Think

I know the idea of investing can feel intimidating. But it doesn’t have to be, especially with the growing number of resources available in Ireland.

Start Small

Even €50 a month into a managed fund adds up. It’s like planting a seed now and watching it grow over time — without needing to be glued to the stock market. Once you learn the skill of investing for yourself you have that skill forever.

Don’t Put All Your Eggs in One Basket

Diversify. That just means spreading your money across different areas — stocks, bonds, property, and so on. It lowers your risk and gives your money more room to grow. This is a fundamental principle of investing applicable to everyone in Ireland.

Keep a Safety Cushion

Before diving into investing, make sure you’ve got a rainy day fund — three to six months of expenses is a good shout. This is crucial for financial stability in Ireland's economy.

The Central Bank has published it's first Quarterly Bulletin for 2025, and you can read it here.

Get Curious

Educate yourself. Whether it’s reading a book, listening to a podcast, joining a newsletter, or reading posts like this — learning gives you confidence. If you haven’t already, you can get the Yes, you can Invest eBook for Free to start you on your journey.

The Irish Are Warming Up to Investing

It’s not just you thinking about this stuff. The Bank of Ireland’s Savings and Investment Index* says six in ten of us feel we should be investing more. And with inflation easing a bit, investor confidence is starting to return. This trend reflects a growing awareness of the importance of investing in Ireland.

It’s like we’re all slowly waking up to the fact that our savings need more than just a comfy bank account — they need a strategy.

*See the Bank of Ireland's Savings & Investment Index here

Final Thoughts: Time to Take Back Control

Inflation isn’t going anywhere. But that doesn’t mean you have to let it nibble away at your future. With a bit of planning and a willingness to try something new, you can protect your money — and maybe even grow it into something you’re proud of. This is the key to achieving long-term financial security in Ireland. 

So, whether you’re saving for a house, your child’s future, or simply a life where you don’t have to worry about bills, investing can help you get there. 

One step at a time.

No need to go all in overnight. Just start where you are, with what you have — and let your money do more than sit still.

And as always, if you’ve any questions, send me a message. I’m here to help you make your money work smarter, not harder.

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Kel Galavan

Kel Galavan is a leading Irish money coach and author of Mindful Money: More Money, More Freedom, More Happiness, with 20 years of investing experience. Having personally navigated her way from 6-figures of debt to a 7-figure net worth, she came to public attention after completing the No Spend Year™. Kel's mission is to instil confidence and control around money. Kel is dedicated to empowering others to take control of their financial futures.

Kel created the first and only in Ireland flagship course, Rise Money™ Become a Confident Investor", specifically designed for Irish people who want to break that glass money ceiling and finally get ahead. She demystifies investing, cuts through financial jargon, and provides a practical, step-by-step roadmap to investing success in Ireland.

Disclaimer: The information on this blog is for general knowledge and discussion only, and does not constitute financial advice. You should seek independent professional advice before making any investment decisions. Investing carries risk. We are not responsible for the accuracy of this information and are not liable for any losses incurred. Links to third-party sites/products are not endorsements.