With house prices continually on the rise, saving a deposit can represent a serious challenge to most first-time buyers. Rental properties don’t come cheap either, so the combination of high monthly rents and the high cost of living make it very difficult to put aside enough money for a deposit.
Don’t despair if you think that you will never take that all important first step onto the property ladder. There are some things that you can do, and sacrifices that you can make in order to save the money for a deposit faster.
1.Budget, budget and budget some more
You probably already knew this, but having a budget in place, and sticking to it, is the best way to save money. If you want to save a deposit, then you need to budget like never before. Sit down and look at all your incomings and outgoings and write yourself a list. Rental, utilities and of course food are essential things you will still need to spend out on. But if you have any memberships, perhaps the gym that you visit on the odd occasion, then this can go. Redirect the money from any memberships and subscriptions you cancel straight into your deposit account.
2.No more luxuries
If you are determined to save for that deposit, then avoid those “luxuries” that can really add up. Do your own nails, dye your hair yourself rather than visiting the hairdresser and don’t go out to eat. If you think you can’t live without those meals out why not challenge yourself to learn to make your favourite dishes at home – this will cost you a fraction of the price.
Having the independence of your own place is fantastic but if you are in a position to do so, and you have family who are prepared to help you out then stop renting and move in with family. Paying rent to a family member, and a share of the bills, is likely to be much cheaper than renting a property and will make those savings grow very quickly. Think of this as a short-term sacrifice with a fantastic prize at the end of it.
4.Rent somewhere smaller
If you don’t have family who can help, then consider renting a smaller property for a while. It might be a bit of a squash but if it gets you a deposit quicker it will be worth it.
5.Use public transport
If you only use your car for short journeys, then consider if you could live without it and use public transport instead. If you live with a partner and both have a car then get rid of one car. With a little planning it can be possible to manage with just the one car until you have enough for a deposit.
Explain to family and friends that you are saving for a deposit. Every single penny will count, so be honest with family and explain you can’t afford to spend the extra money. Instead of going for an expensive trip out for the day, look for free things you can do in your area and make it a challenge to find new places to visit.
These are just a few