chroniclinghome Collaborative post
It can be a real struggle to save money to put a deposit down on your very first. It can take years of saving to come up with enough for a deposit for a home and there are no shortcuts but here are some tips to help get your savings journey get off to a great start.
- Set up a standing order. Rather than relying on your own good intentions to save money each month, set up a standing order at your bank to ensure money is put into an account every month without you even having to think about it. Perfect if you constantly make excuses about saving!
2. Try to cut back on buying frivolous things. Do you really need that Netflix subscription? What about the number of meals you eat out each month – could they be cut back? Once you take control of your finances by sitting down and looking at your bank statements, you will see how much money you spend on purchases that you don’t even get much enjoyment from.
3. Find a new savings account. If you’ve had the same savings account for several years, you may find that you’re not getting as much interest on your savings as you would in a different account. It’s worth shopping around to see what accounts are available.
4. Set goals for your savings. To save a large amount of money, it helps to break it down into more manageable amounts. This will help keep you motivated as the savings are realistic and tangible. These small goals will add up to something much more substantial as the years go on!
5. Sell your unwanted items. Your rubbish maybe someone else’s treasure, so it is worth setting aside some time to sort out your current home and to sell any unwanted items. Start off with one room at a time. When you’re done, add the money that you get from selling the items to your savings account.
6. Save money by buying in bulk. Consider buying certain items in bulk. If you have storage space, you can save a lot of money. This is often more eco-friendly too!
7. Lower your expectations. Perhaps you can begin home ownership with a smaller property, rather than your dream home. Once you are on the property ladder, it’s often so much easier to save for a larger property-plus you’re already approved for a mortgage.
8. Figure out your mortgage payments ahead of time It’s all very well thinking of saving for a deposit but are you actually able to make the payments when you get a mortgage? Using a mortgage calculator can give you an estimate on how much you will pay each month depending on your deposit and interest rate so it’s great for figuring out exactly how much deposit to put down and how different interest rates will impact your payments.
9. Stick to a budget. When you plan your expenses for the month, you’ll know how much you are able to save. It will show how much money you need to pay those bills, plus how much disposable income you have. You can set your disposable money aside for the deposit.
10. Consider a lodger. Do you have a spare room in your property? If you do, then you could ask your landlord if they would allow you to rent this room to a new tenant. This will help subsidize the cost of your own rent and allow you to save money.
Using these tips will help you to save money for a house deposit. It may take you months or even many years but saving towards a house deposit is a great way to get yourself on the rungs of the housing ladder.
