Finding a deposit is one of the biggest financial challenges anybody can face. It’s not easy – you could be looking at trying to find anything between 10% and 20% of the property value and in some parts of the country that can be a hugely significant amount of money. Even if you have access to the bank of mum and dad, most people still need to find extra money of their own to add into the pot.
Saving for your first house, so that you can build up enough capital to get on the property ladder will depend on a lot of factors. There’s your income for a start and how much you spend in outgoings. Here are just a few tips to help your savings go further:
It’s easy to think that saving for your first house is a simple matter of cutting back on a few things and putting the money away. The first task at hand is to look at your incomes and outgoings in your Budget Planner account and see how they stack up. You need to be realistic here – how much do you need and how long is it going to take you to save for the deposit?
Get a Help to Buy ISA
There’s the chance to make more savings if you take out a Help to Buy ISA which is aimed at first time buyers. The good news with this is the Government will add money in for you. For every £200 deposited, you’ll get £50, up to savings of £12,000. If you go for the full amount that means you get an extra £3,000 for free. If there are two of you saving for a property, then you get twice the benefits. Add in tax free interest and you can’t afford to miss out on this great opportunity for making big savings.
Where Can You Make Savings?
Of course, cash is going to be the issue. If you look at your lifestyle, there will no doubt be plenty of places where you can save money here and there. It all adds up and you’ll be surprised where you can find economies that boost your bank balance and get you closer to your goal. These can include:
- Changing utility and other suppliers to get a cheaper deal.
- Shopping frugally rather than wasting money on unimportant treats.
- Using your car less for shopping or going to work.
Of course, how far you want to go will depend on your personality and how committed you are but certainly don’t underestimate the savings you can make.
Where Can You Get More Money?
Another option in saving for your first house, certainly, is to earn more money if you can. (Not easy we know). That could mean looking for a promotion at work or changing to a job that pays a better wage. If this isn’t possible, you can also look at taking on extra work – there are plenty of opportunities nowadays to earn money online if you have the right skill set. PeoplePerHour is a great site for picking up extra work. Jobs come in a variety of sizes from small one-off jobs to large ongoing contracts.
Finally, all through your savings plan is the common thread of trying to resist temptation. All those savings can become a big attraction especially as the amount rises. That’s why putting the money away in something like a Help to Buy ISA or other savings plan is usually the best option. Another good option is to use our online budgeting tool to help you keep track of all your finances and show where you are and how far you have to go.