When you have big dreams of owning your own home, it’s easy to get carried away by the thought of the number of bedrooms you want, the colour schemes, the flooring and how much sun the garden will get at certain times of the day. Yet, like most budding homeowners there's one thing standing in your way – the deposit.
The idea of paying a mortgage payment each month is probably easy in comparison to the current cost of your rent. However, it’s because of the huge outgoings associated with renting that saving for a house deposit takes so long. It can be disheartening, and it probably feels like you’ll never get there, but with a little savvy saving and prudent spending, you will.
Get closer to your house deposit with these simple tips.
Make a little extra money
Simply put, if you want to put more into your house deposit fund, then you’re going to need to earn a little more. Trading and investing in cryptocurrencies is a popular way of making your investments work hard for you – you can find out more about bitcoin training here, at Iconomi.
You can also earn a little extra by selling unwanted items online. The sale of unwanted clothes, shoes, accessories, even furniture, books and old mobile phones can certainly help increase your deposit fund.
Reduce your rent
As mentioned above, paying rent every month makes it extremely difficult to save for a deposit. So, the best option is to consider ways you can reduce your monthly rent, you have a few options here:
- Move to a smaller property: If possible, consider moving to a more modest property with a significantly lower monthly rent. Remember – it’s not forever!
- Move back in with family: This won’t work for everyone, but if the possibility of moving back in with your parents for a few months is a viable one, you could make considerable contributions to your savings during that time.
- Move-in with friends: Help someone else out at the same time! If you're sharing rent with a friend then you can also save quicker.
- Get a lodger: Living on your own with a spare room? Consider taking in a lodger to help subsidise the rent. Of course, check with your landlord first before you advertise.
Boss your monthly budget
Hopefully, you're putting away as much as you can each month. But, could you be putting away even more? The best way to check is to go over your monthly budget and reduce it as much as possible. Gather up all your monthly spends including your food spends, bills, childcare costs, insurance policies, monthly subscriptions etc and consider what you could remove from your budget or consider finding a cheaper alternative instead. Anything you save can go straight into your deposit fund.
Cut out those expensive habits
It’s true what they say, it’s the little things that often make the biggest difference. So, cutting out those little spends will make some big savings.
- Cut out your morning shop-bought coffee and brew at home instead
- Use a refillable water bottle
- Cancel that gym membership
- No more takeaways!