How To Save For Your First House Deposit - 10 Simple Ways
Saving for your first home can feel like you have a mountain to climb, the constant battle between going to the pub with your mates or staying in and watching Netflix, to save those extra pennys with your dream home in mind. Saving for a deposit doesn’t have to be a lengthy ordeal where you lose all sight of your once active social life. Making a few changes can help you save the extra cash you need to get your foot onto the property ladder.
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 pay check 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 sites such as Depop, ebay and Facebook Market Place, selling your old belongings has never been easier. So maybe it’s time for a clear out, if you’ve got old phones you’re hording incase your latest iPhone breaks, take them to your local phone repair shop, who often pay more than the online companies. 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 in your savings account!
4. Shop at Discount Stores
Do you really need those M&S Percy Pigs or that Waitrose fresh bread. With Shops like Aldi and Lidl making a huge head way 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, make sure you account for things such a travel costs, insurances, leisure and social activities for the month. 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 app 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. Make Your Own Coffee
As cliché as it sounds, funding your Costa habit could be stopping you getting your dream home! Spending £3.50 in Costa every weekday accumulates to £17.50 a week, multiply that by 52 weeks in a year and you’ve spent almost £1000 on coffees! Now, is your pumpkin spice really worth that much to you? Buy a jar of Nescafe and take it to work to give you your caffeine fix!
8. Freeze or End Your Unused Gym Membership
We are all guilty of paying for that unused gym membership in the hope we might one day decide its time for a fitness overhaul. Much to our disappointment having a gym membership won’t actually give you that bikini body without using it, but it will however make a substantial dent in your bank account. Call it quits, give it up, we’re not encouraging an unhealthy lifestyle but if you haven’t stepped foot in there in 3 months, you could be saving yourself a good amount of money and if you do decide it’s time to get active, start by going for a run or go to a pay as you go leisure centre.
9 Cut Out The Luxuries
Going on holiday with your friends may seem like the be all and end all, but missing that one weekend in Ibiza could make the difference between moving this year or next! Other luxuries to consider giving a miss could be getting your nails done, buying Fifa ‘19 or ordering a new outfit for one night out. Cutting back all on these little things could save you a pretty penny and get you onto the property ladder!
10. Take on Extra Work
If you work shifts, why not accept that overtime you’ve been turning down for months, working that Saturday or Sunday will stop you from spending and give you a little extra cash for your savings. If overtime isn’t an option, why not find a second earner, from freelancing to babysitting there is plenty you can do to earn extra cash!
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.