Saving for your house deposit is one of the biggest financial projects you’ll undertake and while it might seem like a never-ending task, it’s really not. However, you have to start somewhere and you have to keep going if you’re to reach your target – usually around £15,000 to £20,000. Here’s some tips to help you on your way.
Saving up money means you have to first work out how much you can save without having a huge impact on your daily life and happiness. Visit this websiteand use the budget calculator to determine your incomings and outgoings. You’ll also spot some areas where you can make some savings – look at your utility bills first, as you can often get a new deal or switch, then look at your little luxuries. You don’t have to eliminate them all, just buy fewer nail varnishesor holiday in the UK one year.
Seriously; it will reduce your grocery spending. Meat is very expensive, with an average-sized free-range chicken costing around £10! You could go completely meat-free or just have three veggie days each week. A kilo of lentils costs way less than a kilo of lamb; they’re also better for your heart!
Ask for extra hours if you can – weekend shifts, early starts, holiday cover – or get a second job for a couple of evenings a week. Local pubs are always looking for reliable staff and the good thing about working in a pub is that you can do a bit of socialising andget paid for it. If these ideas don’t appeal to you, then there’s always leafleting, cleaning or using your professional skills on a freelance basis.
If you’re a bit of a takeaway fiend or you like to lunch, then try to halve the frequency of your treats. There’s nothing worse than an excessively frugal lifestyle, so do indulge yourself now and then; you should simply aim to do it every other week instead of every week. Another good trick is to eat out of your cupboard and freezer for the occasional week. If you can avoid a full grocery shop once in a while, you’ll be able to save the money instead.
There are several schemes availableto people trying to buy a property, especially first-timers. A shared ownership property usually requires a much smaller deposit than a property on the open market and you could own from 25% to 75% of the place to start with. The Equity Loan scheme involves the government lending you 20% of the cost of your new-build first home so you only need to raise a 5% cash deposit and then take a 75% mortgage. Not everyone is eligible for these schemes and they’re aimed mainly at first-time buyers, but if you’re working to save a deposit, you probably are a first-timer, so why not take advantage of the offers?
I legit needed this post – I’m trying to buy my own place in 3-4 years! Just starting to buckle down and save money as well. T_T it’s impossible to own in your 20s, here in Toronto!