Set a goal for your deposit savings
We see it frequently with the customers we partner with on their mortgage journeys.
Setting a savings goal and writing it down helps you achieve what you want.
Once you have a goal in place, you’ll come up with a plan to reach it. And then take actions to put your plans in place.
Give yourself time, but don’t waste a minute when it comes to saving your deposit.
We often suggest to our customers to use our mortgage calculators
to begin their mortgage journey. Once you know how much of a mortgage you qualify for and what your monthly repayments will be, you’ll also have a clearer idea of how much you should save for a deposit.
Next, open a separate savings account for the money you are putting towards your deposit. Having this dedicated account will reinforce your mindset to keep savings and it’ll keep the money out of temptation’s way to spend it.
Your savings plan in your deposit strategy
Buying yourself a treat here and there is a nice thing to do for yourself. And we’re all about self-care!
At the same time, it is important to be realistic about what you are spending your money on throughout the month.
So, your first step when it comes to creating a savings plan that you can stick to is to track your spending. On everything.
That coffee you buy every morning. Your weekly grocery shop. Gym membership. Your monthly outgoings (e.g. rent, electricity, mobile phone). What you spend on clothes. Takeaways etc.
Whatever you spend money on, no matter how small the sum, you track.
Once you have these figures in front of you, go through them carefully. These numbers have a lot of information to share with you.
You should now be able to see quickly and accurately where you are spending your income every month.
Some of these bills may be non-negotiable, such as your mobile phone contract. However, you will also have a lot of room to reduce some of your spending in some areas and this is where the magic lies.
Set up a date with your money every week. This will help you keep track of where you are spending, where you could be saving and help you reach your deposit goal faster.