Many people want nothing more than to own their own property. It really is a great feeling to get the keys to a place of your own and then stamp your personality all over it, truly making it your own. The main obstacle, though, is the financial outlay that is required to get onto the property ladder. First time buyers have it particularly hard as they have no equity in a property to use as a deposit so need to save to be able to afford the move into property ownership. This is not always that simple though, so in this article we will take a look at some ways to save for a deposit.
- Set up a separate bank account specifically for your savings. If you try to keep your savings in your regular day-to-day account, it can be easy to spend that money. Using an account specifically for savings is a great way of separating your deposit money from your day-to-day money. It can help to make it a savings account which does not allow easy access, this will deter you from temptation. According to Money Supermarket, most first time buyers will need to save for several years to get the deposit so setting up an ISA account or having a fixed bond could be a good option to get better interest rates and make your savings work harder for you.
- Set yourself a monthly savings target to keep yourself disciplined. Put any savings away at the beginning of the month. It is so much harder to put money away at the end of the month as you’ll likely have spent it already. Putting the money away at the start of the month lets you know how much you have left to spend for the month and will allow you to budget.
- Reducing your outgoings is always a good idea. Take a look at all your outgoings from food, to mobile phone packages, subscriptions, gym memberships, utility bills and TV packages. What don’t you need? Do you really need every Sky channel? Do you really go to the gym often enough to warrant the membership fee? What about your phone package? Do you need all that data? What about your food and clothes? Do you need those designer jeans and shoes or can you buy something cheaper? What about supermarket own brand food products? There are big savings to be had. Cut back wherever you can and put the money you save towards your deposit.
- Can you earn some extra money, either by taking on a second job or selling things that you don’t need? We all have unused items at home that could be sold. All profits can go towards the deposit. You’d be amazed how much money is lying around in your garage, loft and wardrobes.
Saving for a deposit can seem like a daunting task and simply by being disciplined and cutting back where you can, will make it a lot easier. Remember that it will take time and you still have to have a decent quality of life. Set achievable goals and targets and stick
