Saving for your first home may be one of the most challenging things you can do as a young adult. Extortionate rent prices, the rising cost of living and life’s little emergencies can all get in the way of building up enough money for a mortgage deposit. You may be dreaming of a classy new build house or a more reserved traditional property, but not gathering enough for a deposit can be a major barrier. Whether you’re saving by yourself or with a partner, what are some handy pointers to help you reach your savings target more quickly?
Get serious with budgeting
If you want to save as effectively as possible, you need to ensure that your budgeting game is on point. Create monthly budgets that break down your income, expenditure and highlight your disposable income – so you understand how much you can realistically commit to savings. Outlining your income and outgoings will also help to identify areas where money is being wasted or spent unnecessarily. Knowing where your money is going can help to ease your nerves about finances and ensure that you don’t lose track of your saving goals.
Reduce your major bills
With a clear budget, you will be able to work out how much saving you can afford per month. If you’re left with little disposable or saveable income after your outgoings, then you should probably look to reduce your major expenses such as rent, utilities, transport or luxury bills. You may have to consider sacrificing a spacious flat for a few months or years while you save for a house, or you may need to find another way to get to work. Additional luxury spending such as premium gym memberships or expensive monthly or annual subscriptions can chew up a significant amount of your income which could be saved instead.
Focus on your daily and weekly expenses
The pennies do well and truly add up. If you’re serious about finding more money to save, then focus on cutting your daily and weekly costs. These are easier to cut than major bills with minimal effort and some bright thinking. Common examples are weekly shops, nights out and lunches at work. You’ll be surprised how much you can save from your minor spending if you do some planning.
Find ways to boost your income
If you’re struggling to save even with the above methods, then you may want to consider boosting your income to give yourself more to work with. There are many simple ways to freelance your time or services for a fee now online. Alternatively, you could find unwanted or unused possessions that you can sell on sites like eBay or Gumtree. If you’re struggling to save for a house deposit, don’t panic. Remember that there is always a solution to help boost your saving efforts. Put some thought into your financial situation and lifestyle, and you should quickly identify areas where you can save more e
