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5 Tips for Getting Started With Your Mortgage Savings Plan

getting-to-grips-with-your-budget

20 Oct 2018

Posted in:  First Time Buyer and Mortgages

When you first entertain the idea of buying a home, everything can seem out of reach. Saving the initial 10% deposit is likely your first challenge. And boy, does it seem like a heck of a lot of money. It’s never going to be great craic but, like all saving, the earlier you put a plan in place, the better. So whether you’ll realistically reach your goal in 12 months or three years, you’ll never regret starting to save now. Here’s how to get the ball rolling…

Get to Grips with Your Budget

Ah yes, the good old-fashioned budget. Maybe you’re the type of person who already knows exactly what you spend each month – good for you. If you’re more of a spontaneous spender, this is a very important step. Crack open an Excel spreadsheet, and list off all your expenses. You need to know what’s currently going out of your account versus what you have coming in. Be brutally honest – remember this is for your eyes only. Look for areas where you can cut back. We’re not going to tell you to stop getting that morning coffee or cancel your gym membership; everyone is different. But you should decide where you can sensibly make changes that suits your lifestyle. Remember, all those small things add up.

Set Up a Savings Account

If you haven’t already got one, now is the time to do it. There are lots of different AIB saving account options to choose from. To avoid the temptation of dipping into your savings, consider an online notice deposit account. This type of account requires seven days notice to access your funds, making you less likely to make withdrawals. There’s no minimum opening balance required and it’s all online, so you can watch those savings accumulate every time you log into your account. Set up another instantly accessible savings account for your emergency fund too, just in case an unexpected bill pops up.

There are lots of other expenses that you will have to consider when saving for a deposit, things like Solicitor fees, Surveyor fees and Valuation fees. Our home buying calculator will help you add up all you need to save for your new home including those additional costs. It’ll also help you estimate how much you need to save each month to get to your target.

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Assign Your Money the Day You Get Paid

We all love payday, but seeing that lump sum hit your account can make it very tempting to splash out. As soon as you get paid, use our mobile app to whisk a chunk of it over to your savings account, so you’re not tempted to spend it.

Reframe Your Saving

You’ve decided to go after a goal, and that’s a pretty great thing to do. Yes, you’re making sacrifices, but can you reframe them to give the whole savings experience a positive spin? If anything, it’ll help you stick to your plan. So, bringing your own lunch could be an excuse to start eating healthier, going out less means you can pick up a hobby or work on a personal project. Instead of meeting a friend for dinner, get active together with a walk or run.

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Shop Around

We’ve all seen the figure of how much you can save by switching providers for things like your internet and electricity. Yes, it’s a pain, but if you set aside a switching day, you can get them all changed in one fell swoop. You’ll likely be on hold for a few hours, but getting it all done at once is better than attacking one call every lunch break.

Reward Yourself

Build in a buffer for fun. You can eat beans on toast for dinner every night. Set aside some money each month to treat yourself with. Take advantage of coupon sites and deals where you can, and don’t forget to sign up for AIB Everyday Rewards to get cashback from lots of stores when you shop.  

See How Much You Could Borrow

Use our mortgage calculator to see how much you could borrow and get started on your mortgage journey today.

 

Allied Irish Banks, p.l.c. is an authorised agent and servicer of AIB Mortgage Bank in relation to the origination and servicing of mortgage loans and mortgages. Allied Irish Banks, p.l.c. and AIB Mortgage Bank are regulated by the Central Bank of Ireland. Copyright Allied Irish Banks, p.l.c. 1995.

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