Fed up of living at home? Or are you sick of having to check in with nosey landlords? Buying and owning your own home is something that most of us aspire to do at some point. However, to get your foot on the first rung of that property ladder, you’re going to need a house deposit.
Whether you’re utilising a Help to Buy Scheme or you’re simply painstakingly putting away money each month, you’re still going to need thousands of pounds set aside to open up the most basic of housing options. Saving can feel like an uphill struggle, however, there are plenty of ways you can boost your savings and reach your goal faster.
Read on to find out how you can get your house deposit together quickly!
Set up an ISA
An individual savings account is where you can place your savings and grow tax-free interest. Click here to find out more about stocks and shares ISA. You can withdraw your money without worrying about penalties and access your account whenever you need to, and there are no hidden fees or costs, meaning everything you put into your account is truly yours. You can transfer everything in just a few clicks if you have an existing ISA. In the journey towards saving for a house deposit, comparing savings account benefits from various banks can profoundly impact your savings growth. By choosing the right savings account, you can secure higher interest rates, benefiting from compounded growth over time. It’s essential to assess and compare these accounts carefully, ensuring your hard-earned money works as efficiently as possible towards your deposit goal.
Cut back on your spending
It sounds obvious, but you may not be saving as much as you could be simply because your spending habits haven’t changed. If you’re eating out several times a week, shopping online every day, and throwing additional items into your basket at the supermarket, then you’re literally pushing your dream of owning your own home further away. Cut back on your spending habits, and you’ll notice an increase in your savings.
Make a note of where your money is going – you can do this the good old-fashioned way with pen and paper, or there are online alternatives that help you to track your outgoings, like mobile apps. This way, you can review the patterns at the end of the month, and going forward, you know where you need to be more careful with your spending. It’s always good to be aware – you might be surprised at how much you spend on eating out or going to the pub, both of which you can reduce until you have your deposit in place. Every little helps.
Move to a cheaper property
It’s a bold move, but there are huge savings. Could you and your family downsize for a few months to save on rent and utility bills? If you’re living with your parents and pay them some sort of rent each week, discuss reducing the amount you’re paying and offer to do more around the house instead.
Make your savings automatic
The physical act of moving money from one account to another can be all it takes to put off saving anything at all. When you make your savings automatic with a standing order, you don’t have to think about it. It’s all done for you, leaving you to get on with your day and focus on saving more elsewhere! It’s best to set this up just after the time you get paid, so it doesn’t have too much of a negative impact on your main balance figure. If you get a bonus or some unexpected funds, you should immediately add this to your deposit savings pot, instead of blowing it all on something unnecessary. Be sensible, and the dream will become ever more real.
Declutter
Okay, so you might not get huge amounts for those old textbooks and CDs, but every pound counts when you’re saving for a house deposit. Decluttering your home will simplify your personal possessions, making moving easier. Selling your items through social media marketplaces or on eBay will also help you top up your savings account. Win-win!
And finally, know how much you need to save!
By researching house prices in your area, you’ll be able to grasp how much you’re going to need to save and how long you think you may need to save. You can work out how much you need to cut back each month this way and then plan accordingly. Do plenty of research!
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