How to Save For Your First House Deposit in 2021

The pandemic really did put the brakes on so many plans, but with pubs shut and holidays cancelled, there has never been a better time to start saving for your first house deposit! If the lockdown has made you realise you need your own space, then make the best out of a bad situation and get saving! We’ve put together our top tips for saving for a house deposit in 2021!

Manning Stainton

1. Open a Savings Account

First things first, saving without a savings account could be a struggle. You no longer have to go to a physical bank to open a separate savings account, opening a savings account has never been easier. Most banks now offer this feature online and make it easier to transfer money in and out (hopefully more in than out). Make sure you search around for the best interest rates and some banks might even reward you for switching to them.

2. Take it Straight Out Of Your Pay

To avoid accidental spending, budget an amount to save every month and when the paycheck hits your bank, pay the amount in a separate savings account. With that out of the way, you can budget for the rest of the month with your remaining wage.

3. Sell Things You No Longer Need

With online sites such as Depop, eBay and Facebook Market Place, selling your old belongings has never been easier. With not much to do on a weekend, there has never been a better time for a clear-out! If you’ve got old phones you’re hoarding in case your latest iPhone breaks, send them away to sites like Mazuma which can offer you money in return! There is nothing more satisfying than clearing out your wardrobe especially when you make money from some of last year’s trends. Sites like Depop are an easy and economical way of getting rid of clothes you no longer wear. Remember once the money comes in, put it straight into your savings account!

4. Shop at Discount Stores

When you’re making your essential shopping trips think, do you really need those M&S Percy Pigs or that Waitrose fresh bread? With Shops like Aldi and Lidl making huge headway in the world of supermarkets, there is no better time to make the switch to one of the discount stores. Often voted as winners in many of the food and drink categories, it confirms the fact you don’t have to pay a lot for good quality. You’ll be surprised how much you’ll save every week! Don’t believe us? Make a comparison list!

5. Make A Budget Tracker

Tracking your budget will allow you to keep on top of all your spending. At the beginning of the month, account for predicted monthly spending including rent, bills insurance payments etc. If you prefer to go old school a simple pen and paper will do, or if you’re feeling a little more modern day, there are plenty of apps available that keep track of budgets, even some that link to accounts such as Monzo to automatically deduct any spending!

6. Round Up Apps

Is there anything you can’t get an app for? One of the latest trends is rounding up apps and features. Modern Banks such as Revolut are including round-up features in their banking systems. The round-up feature means when you buy a coffee for £2.75, your card automatically rounds it up to £3 and puts the 25p in your ‘Revolut Vault’ or savings. Then at the end of the month, you are left with a nice amount of money you didn’t know you had and wouldn’t have noticed leaving.

7. Freeze Unused Accounts

Did you sign up to Disney+ in the first lockdown to watch all your old animated favourites? If you've exhausted all the classics, then maybe it's time to cancel the membership! Although nobody can deny we’re watching a lot more TV than usual right now, if you have accounts for multiple streaming sites these can easily rack up! If there are any you’re not watching, it's time to cut them loose and save the extra money!

Hold Off On The Online Shopping

With practically nothing to do right now, online shopping provides that little bit of fulfillment we crave, but next time you go to click 'order' on a new top, some more makeup or a new gadget, think, do you really need them? Is it something you will be bored of in 2 weeks? That money could all go towards getting your dream first home! If it helps, unsubscribe to store emails and you won’t be tempted by devilish discounts!

10. Take on Extra Work

With many people working from home currently, we’ve saved extra time on our commute. If you have skills that other people could benefit from remotely, why not use this extra time to try out freelancing? Or if you’ve had a business idea in your mind for a while, now is the time to try it out! But don’t go spending thousands setting it up, be mindful it can take a while to make a profit and you don’t want this to hinder rather than help your savings cause.Making these simple changes might not seem like the path to making millions, but every small saving step adds up and puts you in a better position for when your dream house comes on the market.If you're looking to find your first property, contact your local branch today who can help you with your search.