Saving For a Deposit: Tips That Actually Work
Even with schemes like stamp duty breaks and Help to Buy, many people are still finding it hard to save enough money to put down for a deposit for a home. If you rent and have very little leftover to save at the end of the month, then you will find it nearly impossible to be able to save enough, anytime soon, at least! Not only that, but having a good deposit is going to help to make the mortgage repayments each month much more manageable, but it can make saving even harder as it will take longer.
If you want to get onto the property ladder, and do so sooner rather than later, then what can you do to help yourself? With a little know-how and some lifestyle changes, you could soon be browsing a site like for-sale.com to find the home of your dreams. Here are some of the things that you could think about.
Set up a standing order
When it comes to money, out of sight and out of mind is definitely something that makes a difference. It is a good idea to not just rely on your intentions to save money each month, as things could come up and then the savings will get forgotten about. So as soon as you are paid, have a standing order set up so the money automatically goes to a different account. You can’t miss what you didn’t even really have, so have it in a savings account or an ISA, where it can gather interest and do much more for you.
Curb your spending
If you are someone who shops a lot online, orders takeaways instead of cooking or likes to eat out in restaurants each week, then the cost of those things will really add up? Do you really need something like Amazon Prime, for example, making buying things simpler and quicker, making you spend more? This article could be worth a read if you’re unsure: businessinsider.com/amazon-prime. Think about the frivolous spending that you have that isn’t actually needed. When you reduce your spend, you will be able to save much more each month. Even saving an extra £150 a month will be £1800 over the course of a year, and that is without adding in other savings of yours. Think about the purchases that you make and press pause on those things that really aren’t needed.
Write your goals down
If you have the goal of saving a certain amount by this time next year, then you need to break down the target that you have and plan how it will be done. For example, if you want to save £5000 in a year, then you need to divide up how much will need to be saved each month. If you feel like you never get anywhere with savings before, then have you written them down? Write it down, and stick it on the fridge, reminding you what you are aiming for. Putting money aside and making it a challenge can actually be quite thrilling and it will definitely all be worth it in the end.