Talk to anyone these days about buying a home, and they’re sure to mention how expensive it is. For many people struggling to save for a home, tired advice like “stop buying avocados” is simply not a helpful way to deal with a legitimate affordability crisis.
However, there are ways to save smarter, not harder, and not only put a first home within reach, but save for a home faster than you ever thought possible. Recent advances in artificial intelligence are helping to enhance the financial information available to everyday savers, without the high price tag typically associated with financial guidance or advice.
Where to start?
Not everyone is a financial advisor. In fact, 91% of UK adults have never had specialist financial advice*, and may be missing out on ways to make their money work harder for them.
*Source: FCA Financial Life Survey, 2024
Research takes a long time, and there is always a nagging feeling that you made a mistake or missed a great opportunity.
AI can be a great place for transformation, but choosing the right tool for the job is important. Generic forms with big names can be useful, but because the information they provide is not tied to any accounts, it leaves the user needing to go out and choose accounts from different providers and set them up individually, which yawns.
What AI should I use?
AI tools integrated into a financial app are a very smart choice. For example, the savings and investing app Plum has an AI financial guidance feature called Plum plan It’s built into their app and is completely free to use.
Users simply chat with Plum about their financial goals, such as how much they need to buy a home, and it provides various options on how to achieve that.
Taking into account a user’s current savings, their salary, their time frame, and any other relevant information, Plum can create a complete savings plan, entirely for that user’s goals.
Its real power is that it shows users financial products they may have never heard of before and calculates exactly how much they will need to deposit each month to reach their goal.
It includes things like interest, tax-free accounts, or even government bonuses that some products offer (such as a lifetime ISA offer), meaning you can really achieve your goal faster with it.
plus, Plum It has a wide range of financial products, such as cash investment accounts, lifetime IIAs, investment accounts and more, all with competitive interest rates. This means that if a user likes their savings plan, they can set up all accounts in the same app in a few minutes and start saving.
ISA rules apply. Capital is at risk when investing. Make sure a Lifetime ISA is right for you, as withdrawing early could result in a 25% government penalty. Bloom is not a financial advisor or bank. This product provides general guidance only. It is not financial, investment or tax advice and may be inaccurate. Please verify the information before making decisions. Terms and conditions apply.
Put savings on autopilot
Willpower alone is not enough sometimes.
Many savers find it boring, or simply forget about it. Setting up an automatic deposit every payday can take the hassle out of saving, and psychologically, it can be a lot easier for the money to automatically leave before you get used to seeing it there (and accidentally spending it).
Plumwhich is the same app that offers the AI tool mentioned above, also offers a set of autosave tools. It is easy to use as users can set up auto-save tools into appropriate financial products, all from one app.
Some automation features vary by product and subscription, so fees may apply. You should review your automations periodically to make sure they are still appropriate for your circumstances.
Stay on track
Life happens. Emergencies, vacations, or even going out to lunch. Balancing living life and keeping savings on track can be stressful, but it is possible.
Having a goal tracker can help you see the progress you’re making in real time. With the Plum plan, you can track your progress and… Plum It can help you make changes to keep your savings goal on track.
Setting a goal, finding the right products, and staying on track sounds easy, but in reality it can be difficult if you don’t know where to start. But by using the right tools and staying consistent, achieving your financial goal is a real possibility.
Right now, Plum has an exclusive offer for What Mortgage readers to give their home deposit a little boost. New customers who deposit at least £250 into an eligible Plum product within 10 days and maintain net deposits of £250 by day 180 will receive a £25 bonus.
Click here to get started. Terms and conditions apply.
Bloom is not a financial advisor or bank. This product provides general guidance only. It is not financial, investment or tax advice and may be inaccurate. Please verify the information before making decisions. Terms and conditions apply.
