Hey all, first time poster. This is a repost of something I put up on boards.ie but I'm trying to do as much research as possible so I hope reposting this here is ok.
I've been doing a bit of basic research on what I'm about to post so forgive me if Im missing some blindingly obvious points. And I apologise in advance for the length of this post.
I'm a final year college student and will be starting work with a major Audit firm next October so I figured it was about time to do some financial planning. My 3 main concerns right now are 1) getting a nice car (as a college completition present to myself!), 2) building up a deposit for a house and 3) making sure I've budgeted well enough to do both of the above and still have a decent enough standard of living.
I expect to be earning c 1,800 net (after tax and some money to my 'rents) per month in my first year, excluding bonuses. I'm not sure of the wage progression but by the time I've fully qualified (3.5 years after I start), I would hope to be looking at earning 40-45k pa, all the following numbers are based off year 1 earnings tho.
So firstly, I plan on spending about 25k on a car (approx 24k loan). A bit over the top I know, but that's the plan. I've checked around online with various banks and the best rates seem to be from BOI, Halifax and PTSB. Each working out to 471 per month over 5 years. Cost of credit's around 4.5k, BUT I'd rather do it over 5 years as it would allow me to build up a bigger house deposit fund by the time I finish my training contract.
I'd plan on saving roughly 700 per month going straight into a savings fund. Using PTSB's online calculator I'd have roughly 31k over 3.5 years doing this. Any bonuses I receive during my training contract would be split 50/50 going towards nice things and savings. In addition I'm expecting around 15k from an investment made on my behalf by my dad to mature around that date too. So the total house deposit fund would probably end up in the 45k range.
Now, that leaves about 660 left over per month. 160ish per week. Which is wayyyy more than I need. I'll be living at home the whole time and I'll already have given my 'rents some cash so that's basically all mine. The plan there would be to not go to wild and just spend what I need and let the rest build up to cover and unforeseen expenses I may incur.
So to summarise.... 25k car over 5 years, 31k saving for a house deposit after 3.5 years. Would that sounds like a wise way to plan or should I be looking at something completely different?
And one last question, since I'll be looking at a mortgage in 4-5 years, should I be applying for the car loan to the bank I foresee myself taking a mortgage with to build up a good credit rating with them?
Many thanks to anyone who's made it this far!!!
I've been doing a bit of basic research on what I'm about to post so forgive me if Im missing some blindingly obvious points. And I apologise in advance for the length of this post.
I'm a final year college student and will be starting work with a major Audit firm next October so I figured it was about time to do some financial planning. My 3 main concerns right now are 1) getting a nice car (as a college completition present to myself!), 2) building up a deposit for a house and 3) making sure I've budgeted well enough to do both of the above and still have a decent enough standard of living.
I expect to be earning c 1,800 net (after tax and some money to my 'rents) per month in my first year, excluding bonuses. I'm not sure of the wage progression but by the time I've fully qualified (3.5 years after I start), I would hope to be looking at earning 40-45k pa, all the following numbers are based off year 1 earnings tho.
So firstly, I plan on spending about 25k on a car (approx 24k loan). A bit over the top I know, but that's the plan. I've checked around online with various banks and the best rates seem to be from BOI, Halifax and PTSB. Each working out to 471 per month over 5 years. Cost of credit's around 4.5k, BUT I'd rather do it over 5 years as it would allow me to build up a bigger house deposit fund by the time I finish my training contract.
I'd plan on saving roughly 700 per month going straight into a savings fund. Using PTSB's online calculator I'd have roughly 31k over 3.5 years doing this. Any bonuses I receive during my training contract would be split 50/50 going towards nice things and savings. In addition I'm expecting around 15k from an investment made on my behalf by my dad to mature around that date too. So the total house deposit fund would probably end up in the 45k range.
Now, that leaves about 660 left over per month. 160ish per week. Which is wayyyy more than I need. I'll be living at home the whole time and I'll already have given my 'rents some cash so that's basically all mine. The plan there would be to not go to wild and just spend what I need and let the rest build up to cover and unforeseen expenses I may incur.
So to summarise.... 25k car over 5 years, 31k saving for a house deposit after 3.5 years. Would that sounds like a wise way to plan or should I be looking at something completely different?
And one last question, since I'll be looking at a mortgage in 4-5 years, should I be applying for the car loan to the bank I foresee myself taking a mortgage with to build up a good credit rating with them?
Many thanks to anyone who's made it this far!!!