Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

How much savings to keep left over

Options
  • 31-07-2011 4:06pm
    #1
    w@ll3gurl
    Registered Users Posts: 151 ✭✭


    First up, stupid question alert - Im trying to work out a budget in terms of what mortgage to look for (have approval already for an amount way higher than I need) versus how much of my savings to use.
    I know nobody can answer this for me really, but does anyone out there have any feelings on how much you would keep 'left over' after your deposit and expenses and all. Ok this is a question going nowhere I can feel it - I know I have to decide myself, but I'm all kind of ...."argghghg I dunno" when i ask myself. :rolleyes:

    I think what I am really asking is, am I better to put as much as i possibly can in of my own cash, to get the smallest mortgage possible? Which is already going to be pretty small anyway.


Comments

  • Options
    #2
    Aprilmay
    Registered Users Posts: 282 ✭✭Aprilmay


    w@ll3gurl wrote: »
    First up, stupid question alert - Im trying to work out a budget in terms of what mortgage to look for (have approval already for an amount way higher than I need) versus how much of my savings to use.
    I know nobody can answer this for me really, but does anyone out there have any feelings on how much you would keep 'left over' after your deposit and expenses and all. Ok this is a question going nowhere I can feel it - I know I have to decide myself, but I'm all kind of ...."argghghg I dunno" when i ask myself. :rolleyes:

    I think what I am really asking is, am I better to put as much as i possibly can in of my own cash, to get the smallest mortgage possible? Which is already going to be pretty small anyway.
    This definitely you don't want to be be borrowing more than you need to seriously it will cost you more in the long run.


  • Options
    #3
    not even wrong
    Registered Users Posts: 480 ✭✭not even wrong


    This will depend on your own personal situation. Work in the civil service? You don't need to reserve so much. Work as a contractor in the construction industry? Save a lot.


  • Options
    #4
    martingriff
    Registered Users Posts: 10,913 ✭✭✭✭martingriff


    not even wrong wrote: »
    This will depend on your own personal situation. Work in the civil service? You don't need to reserve so much. Work as a contractor in the construction industry? Save a lot.

    Thats a very sweeping statement you say there. Not ever civil servant is paid a lot have you ever seen the pay scale. If not you should look at them. Yes we have a permanent job so we sld be be able to pay repayments (depending on when you bought a house and for how much.

    If someone in the construction industry has been saving if they have been in it since 04 then you more than lighly have a bit saved up


  • Options
    #5
    martingriff
    Registered Users Posts: 10,913 ✭✭✭✭martingriff


    here is the pay scale for the public service

    http://www.publicjobs.ie/publicjobs/en/civilservice/salary-scaling.do


  • Options
    #6
    f9710145
    Registered Users Posts: 52 ✭✭f9710145


    I think the point being made is civil service = guaranteed income, construction = good chance of having to live off savings at some point


  • Advertisement
  • Options
    #7
    martingriff
    Registered Users Posts: 10,913 ✭✭✭✭martingriff


    f9710145 wrote: »
    I think the point being made is civil service = guaranteed income, construction = good chance of having to live off savings at some point


    That was the poiint I was trying to make. It did not seem that way by the way his point was written

    But in reply to the thread try and get as small of a morgage as possible but make sure you have enough savings "for a rainy day"


  • Options
    #8
    JuliusCaesar
    Registered Users Posts: 4,882 ✭✭✭JuliusCaesar


    It's hard to say. The idea is to borrow as little as possible, while still having money for emergencies. (Some people say you need to have 2 mortgage installments available, at least.) So - only you can decide. I'd always hold some back, and save like crazy for boilers blowing up, roof falling off, zombie attack, whatever - despite being entirely debt-averse.

    Even a civil servant is due for net salary decreases with extra taxes coming in, never mind the new household/water charges. You might always contract a dread disease and be off work for a year.

    Income protection is a REALLY expensive insurance, so maybe savings is the way to go.


  • Options
    #9
    Electric Sheep
    Registered Users Posts: 2,106 ✭✭✭Electric Sheep


    In the USA they advise that the bare minimum "Emergency Fund" savings to have in a liquid savings account is enough to cover three months expenses. I wouldn't be comfortable with less than 6 months expenses - once you own a house there are always unexpected maintenance expenses.


  • Options
    #10
    dory
    Moderators, Recreation & Hobbies Moderators Posts: 4,495 Mod ✭✭✭✭dory


    I would say 6 months of expenses. The way this country is if you lose your job it could take at least that to get another one. It would also cover wage cut/extra taxes.


  • Options
    #11
    Monty Burnz
    Closed Accounts Posts: 12,455 ✭✭✭✭Monty Burnz


    You'll never earn as much interest on your savings as you will be charged interest on your mortgage. So don't bank the whole lot of it either!


  • Advertisement
  • Options
    #12
    martingriff
    Registered Users Posts: 10,913 ✭✭✭✭martingriff


    What you could do is if you can is get a saving account with a good intrest rate for a few years and save into that so in a few years you put a lump sum into the morgage whatever it is to reduce the time


  • Options
    #13
    w@ll3gurl
    Registered Users Posts: 151 ✭✭w@ll3gurl


    Thanks all for your comments. Its true its a very individual and situation dependent thing - but your replies have really helped in "getting my thinking cap" on and giving me a starting point of issues to consider.
    Thanks again! :)


  • Options
    #14
    lightpipe
    Registered Users Posts: 32 ✭lightpipe


    Bought a place last year, my thinking was to put a fairly minimal deposit down & keep as much cash as i could. Reason being if it all goes t*ts up & i have to walk away then all i lose is the deposit.


  • Options
    #15
    donalg1
    Closed Accounts Posts: 3,513 ✭✭✭donalg1


    I think a small a mortgage as possible is best, as the smaller it is the smaller the repayments are, so if you could get a 70% mortgage you could save the difference that you would be paying if you were to take out 90% of the purchase price. I know technically you are still missing the same from your wages each month by doing this but at least your savings are building up again for the rainy day. I would defo try keep at least a month or two's mortgage repayment and not use all your savings taking it out. Plus there are the other expenses like a survey or legal fees, plus your bin charges, maybe the boiler serviced, oil for the winter if ofch, so get as little a mortgage as possible without leaving yourself broke and without something aside for any unforeseens.


  • Options
    #16
    quozl
    Registered Users Posts: 3,308 ✭✭✭quozl


    lightpipe wrote: »
    Bought a place last year, my thinking was to put a fairly minimal deposit down & keep as much cash as i could. Reason being if it all goes t*ts up & i have to walk away then all i lose is the deposit.


    By walk away do you mean leave the country and never plan on coming back?

    Otherwise you're going to be on hook for the full amount anyway...


Advertisement