Buying your first home is an exciting prospect and feels very different from renting. When a place is your own, you don't have the concern of your landlord issuing notice for you to move out. You can also decorate it how you want, buy furniture to suit your tastes, and have people over when you like and for as long as you like.
To fund the purchase, you will probably need a mortgage, and most, if not, all lenders will require a certain percentage of the purchase price by way of a deposit. It's typically around 10% but can vary from lender to lender so, if you aren’t sure how much you may need to save, it's a good idea to speak to a mortgage consultant who will be able to give you a rough idea.
Saving isn’t always easy, but if you put your mind to it, there is no reason you can’t reach your goal and get one step closer to your dream of owning your own home. Here are 5 ways to save money for your deposit.
Move back in with your parents
While the idea of moving back in with your parents may fill you with dread, you need to consider how much money you could save during that time. Renting property is not cheap, as you probably know, and although you may need to contribute to your parent's bills, etc., it's unlikely to be anywhere near as much as you are currently paying.
If your parent's home isn't an option and you currently rent a property on your own, why not consider a flatshare or ask a friend if you can use their spare bedroom? Again, not ideal, but living in limbo for a little while will be worth it once you get the keys to your new home.
Buy in bulk
If you spend a fair bit on groceries each month, it may be a good idea to start bulk buying the products you use the most.
The more you buy, the cheaper things become, so whether you want to buy a lorry full of crisps, a six-month supply of shampoo, or a bucket load of Tic Tacs in bulk, it's likely you will save money. Just make sure you figure out where you are going to store it all!
Cut down on social events
If you spend most weekends out with friends clubbing or doing other activities, it's a good idea to work out how much it’s costing you. You might be surprised at how quickly it adds up, so if you feel you are spending too much, keep it to a minimum and think of cheaper alternatives.
For example, if you usually go to your local bar, discuss whether you could meet at someone's house instead. If going out for dinner is a regular occurrence, make a nice meal at home instead. Think outside the box a little, and you will reap the rewards financially.
Reduce household bills
Household bills can make a big dent in your bank balance each month, but if you put your mind to it, they can be reduced.
If you currently spend much of your time wearing a t-shirt and shorts with the heating on full, reduce the temperature of your thermostat and put on some extra clothes instead. Energy prices are at a peak at the moment, so using less fuel could have a huge impact on your outgoings.
Cancel any subscriptions you have that are not essential such as TV packages and magazine subscriptions, and you could save a fortune. When it comes to grocery shopping, plan what you are going to eat using grocery shopping data and you should be able to reduce your grocery bills and the amount of food that goes to waste.
Sell things you no longer want or use
Whether it's thousands of DVDs or a closet full of designer clothing - if you have things lying around that you don't use anymore and know you won't use in the future, sell them. There are loads of ways to sell unwanted things online, as well as locally, so you shouldn't have any trouble finding buyers.
It will also come in handy when you start packing to move into your new home, as all that you will have to worry about are the belongings that remain. It might also save you money when it is time to move as many removal firms will charge you based on how much stuff you have, so less is more definitely more in this instance.
