Saving for your first home top-tips
The thought of saving enough for a mortgage deposit may be daunting. How exactly do you get your hands on the money you need? Even if you don't have existing savings or family to help you, there are lots of ways you can start saving.
Five savings strategies for first-time buyers
- Set a savings goal.
- Sign up for a budgeting app.
- Shop around for savings accounts.
- Consider all monthly payments.
- Declutter and sell.
Read on for details.
1. Set a savings goal
This first simple step will really help with motivation. Budget and set a savings goal of realistic monthly savings.
Take into account more expensive times of the year (Christmas and birthdays for example) and adjust targets accordingly. Don't get fed up or throw in the towel, step-by-step you'll make a difference.
2. Sign up for a budgeting app
Keep a track of your spending this way. It's a great way of keeping on top of your income and spending habits.
Every budgeting app is different, so find one that suits you. They'll all help you to manage your money by syncing up with your bank and credit card accounts.
3. Shop around for savings accounts
Save in the right place.
If you’re a first‐time buyer aged between 18 and 39, you're eligible to open up a Lifetime ISA account.
4. Consider all monthly payments
Making small changes to your day‐to‐day outgoings can really add up over time.
For example, spending £3 a day Monday-to-Friday on a shop-bought sandwich amounts to £780 a year. Home-made simple meals or sandwiches can really help boost your savings goals.
It may have been mentioned that going without streaming channels can really help too.
5. Declutter and sell
There's a great deal of satisfaction to be had in a good old declutter.
Sell your old stuff and feel even better because someone else benefits too! Vinted and eBay now offer free shipping for sellers on clothes, which is great for your wallet, and the planet.
And it works both ways. Save more money by buying second-hand as well. Make sure you're buying things you need, rather than want.
