Having your own home is a wonderful thing. Without a landlord watching over your shoulder, you don’t have to worry about asking for permission whenever you want to make a change to your property. What’s more, a mortgage means that you’re making an investment in real-estate, rather than just sending money to someone else every month.
The only trouble is, you’ll need to find the extra cash to put aside and save for a deposit before you’ll be able to get the house of your dreams. Since deposits can set you back thousands of pounds, the quicker you start saving, the better your chances of success will be. Here are some tips to help you save up for your deposit fast!
1. Stop Renting
Although you might enjoy the freedom that comes with renting your own apartment or house, it might be a good idea to go back to your parents for a little while. Renting your own place means that you won’t have a lot of money left over to save for a deposit. If you can survive without having your own space for a while, returning home will leave you with a lot more cash to put aside each month – even if you pay a small amount of keep to your mother and father.
When arranging to move back home for a small time, make sure that you put a plan in place. Talk to your parents about how long you plan on staying with them, what you’ll pay in rent, and what you can do to help them out around the house. This will ensure that everyone’s happy.
2. Make More Money
As many people trying to save extra cash fast will know, one paycheck sometimes isn’t enough to give you all the cash you need. Fortunately, finding a side gig in the age of the internet is easier than ever. In a world where everyone is connected, you can make some extra cash in a range of fantastic ways. For instance, you might be able to get a job with a ride-sharing company like Uber and take people where they need to go for a few hours a week.
If you’d prefer to do your extra work from home, you could consider looking into freelancer options and making cash as a graphic designer, writer or virtual assistant. Even a little extra work each week can quickly add up.
3. Budget Carefully
When you’re saving up for something as substantial as a mortgage deposit, it’s important to know where all of your money is going each month. Think about what you earn each month, and how much you spend. It might help to download a budgeting app that can help you or write as much as you can down about your ingoing and outgoing expenses on a piece of paper.
If you can’t find many luxuries that you can cut back on, don’t worry. Sometimes, the best way to reduce your monthly expenses is to simply cut back on the costs of things like gas and electricity or insurance, by switching to a different provider.
4. Compare Your Options
Whether you’re looking for the loan that’s going to make up your future mortgage, or you’re getting a loan that has nothing to do with the house of your dreams, it’s important to make sure that you don’t set yourself up for unnecessary monthly expenses. Comparing your options carefully when taking out loans will ensure that you’re getting the best deal on your interests rates.
The less you need to pay on interest for everything from your personal and car loans, to your credit cards, the more you’ll have to put away each month for your deposit.
5. Make Your Savings Work Harder
Finally, make sure that you’re getting the most out of the money that you do save by getting a helping hand from your savings account. If you want to set aside a small amount of money from your wages each month, ask your bank to pull money into a separate account whenever you’re paid. If you’re saving for your first house, there are also government schemes that you might be able to get involved with to help you save extra cash in the long term.
For instance, the UK now offers a help-to-buy ISA which allows you to get a percentage of the money you save towards your new house back from the government when you get your first mortgage. Speak to an expert about your options.