December 7, 2016
How to save a deposit for your first home
The bottom line of
raising a deposit is that you need to save money! Here are some top tips to
help start you on your campaign to turn your pennies into pounds:
realistic monthly saving plan, you can rest assured you have started the wheels
in motion – there is a lot to be said for initiating the ‘saving’! A deposit
can seem like a daunting figure, so taking it month by month will take some of
the pressure off. Even if you aren’t sure how much you will ultimately need,
you can always begin saving.
plenty of free online budget templates you can download which will help you to assess
your finances. As well as fixed monthly costs, such as bills, you would be
surprised how much you spend on seemingly small items. Start this process by
reviewing your previous months spend to avoid forgetting or being too
overestimating the amount you can set aside each month. Settle on a minimum
figure and, if you have an extra good month, you can always transfer some extra
pounds into your savings account. Trying to save too much is likely to put you
off and leave you feeling disappointed.
choose an account, do some research as interest rates can vary. Since saving
for a deposit is a long-term goal, it may be that an account which gives you
better interest rates, but does not allow you instant access is more
appropriate. Take your time working this out as it’s important to make your
money work hard for you! Remember that a savings account is not for life:
periodically assess whether moving your savings could be more beneficial.
chore of transferring out of your life and transfer the money automatically
with a standing order or direct debit. This stop you from thinking, hesitating
or reallocating those funds.
family and friends will understand your goal – so ask them for support. Find
cheaper midweek deals to meet with friends and swap dinners out for a nice meal
Saving can be a
struggle; often, the first few months are your best as you are focused and
dedicated. Since this is a long-term plan, you may need to find ways to
reinvigorate your savings at varying points, but also remember there are times
to give yourself a break as long as you continue to save your minimum amount.