A house deposit is one of the biggest savings you'll ever contribute towards. It can often feel aggressive and never ending, but once saved, you can officially begin looking for your dream home! We've seen thousands of people saving for a deposit, and often find that simple changes prevail over drastic life changes. We have pulled together a list of tips and tricks to help you save for your new home.
1. Look Into A Help To Buy ISAThese brand new ISAs allow first time buyers to save serious interest when saving for their first home. There are a number of stipulations and requirements to meet, but essentially for every £200 you save, the government will contribute a bonus of £50 (up to a total bonus of £3,000) check out the gov.uk factsheetfor more information. They are without doubt the most intelligent decision any first time buyer should make.
2. Pack Your LunchThe average person spends in excess of £30 a week on lunch. That amounts to around £120 a month and a whopping £1,320 throughout one working year! Make the change, and pack a lunch! There are lots of ideas on the Internet to inspire an interesting desk lunch - try a mason jar salad!
3. Assess Your Transport NeedsFor those whose car is a mere vessel to get you from A to B, a fuel efficient car could save you money in the run up to home ownership. Perhaps try "carpooling" with your colleagues to save money, be friendly and help the environment. Taxis are often an unnecessary expense. Swap for public transport - or even walking - if possible. If you use public transport, consider whether every journey is necessary. Could you walk it instead? Keep the pounds in the bank and off your hips!
4. Stop Buying BeforehandThat coffee machine may have looked awesome in your head, but the reality is you have to unplug the toaster every time you want to use it, and there isn't really enough space for it. Live in the home before making such purchases: Concentrating on actually securing the home is more important.
5. Review SubscriptionsDo you need to subscribe to the sports and movies packages? Do you even know everything you're subscribed for? Look through your bank statements, and carefully decide what you can do without.
6. Voucher CodesVoucher codes will save you money on everything from steaks to straighteners, toilet roll to teeth whitening. Groupon, Living Social and Voucher cloud are all good places to start, with Wahanda regularly offering discounts on beauty treatments to its subscribers.
7. Plan "Saving Blasts"Work out once a quarter, or twice a year, where you save the majority of your monthly salary, leaving just enough money for bare essentials. This should significantly top up your savings pot. Remember to only take this step if and when it is a comfortable time to do so.
8. Clear OutThere's never been a better time to have a clear out! Not only will it mean you have less to move when the time comes, but you can also make money for that all important deposit. Try eBay or even a boot sale!
9. Create A PlanSpreadsheets are your best friend. Work out how much money you need each month for rent, bills, food etc. and section off a chunk to be saved for your deposit. It may help to set up a standing order to transfer money directly to your savings account.
This may seem like a backwards move, but with the average monthly rent in the UK creeping up to £800 (£1,200 in central London) a large chunk of your wages is spoken for before you get to a deposit. Now could be the time to move back into your teenage bedroom temporarily, and watch that deposit fund thrive!