How to save for a deposit

We’ve all heard how tough it can be for first time buyers to get onto the property ladder.

But it is possible, as long as you plan your resources effectively. Here’s a few ideas to get you saving money for that all-important deposit.

Reduce your bills

Review what subscriptions you have, whether it’s music, magazines, the gym, or TV – and see what you have to have and what you can live without. See what bills you can reduce – there are great comparison websites around that can help – you could look into cheaper mobile and energy bills, broadband packages, car and contents insurance, amongst other things. Draw up a list of all the bills you pay and see where you can cut money. Remember that a little here and there can really add up over 12 months.

Spend less

You’re probably not aware how much money you waste, and you could try some alternatives instead. Swap your £4 latte for a flask of homemade coffee, have picnics instead of going out for lunch, go for a run outside rather than at the gym,  have a Netflix night instead of going to the cinema – and work out over 12 months how much you could save by substituting – you could set yourself a target and see if you can reach it, or even exceed it.

Review your current living arrangements

Depending on your current situation, see if you can save money by moving back home, renting a spare room out (depending on your tenancy agreement), or moving into a flat share. 

Earn extra money

Maybe you could take on some extra work, turn a creative hobby into a second income, or sell clothes or items you no longer need. Set up a separate account for any extra income you make so it doesn’t get swallowed up on everyday items.

If you’d like any advice on what the local property market is doing, call smarthomes on 0121 744 4144 (option 2).

Check out our property for sale in Solihull and the local area here:
https://www.smart-homes.co.uk/search-properties/for-sale-solihull

Article sources:
https://www.which.co.uk/money/mortgages-and-property/mortgages/mortgages-and-deposits-the-basics/how-to-save-for-a-mortgage-deposit-a66db7g436qg
https://www.zoopla.co.uk/discover/first-time-buyers/how-to-save-for-a-deposit/