Published: 16/10/2019HOW TO SAVE A DEPOSIT FIRST-TIME BUYERS
Here are some top tips to help start you on your campaign to turn your pennies into pounds and secure a deposit for your first home:
Even if you aren’t sure how much you will ultimately need, it’s never too early to start saving.
A deposit can seem daunting, but break it down into a monthly plan.
Review your finances. Start the saving process by reviewing your previous month's expenditure. This will highlight some of the surprising things you spend your money on.
Using your analysis from last month, create a budget. As well as fixed monthly costs, such as bills, you’re likely to have been surprised by how much you spend on small items.
Be realistic and don’t overestimate the amount you can set aside each month. An ambitious figure you can’t meet may leave you feeling disappointed. Settle on a figure and, if you have a good month, you can always save a little more.
The right savings account can make all the difference. Research interest rates available. Saving for a deposit is a long-term goal, so good interest rates and an account which doesn’t allow you instant access will protect your savings.
Remember that a savings account is not for life: periodically assess whether moving your savings could be more beneficial to you.
Create a Standing Order or Direct Debit to transfer your money straight into your savings account. This will stop you from thinking, hesitating or reallocating those funds – however unintentional.
Get your family and friends on side and ask them for support. Actively seek cheaper midweek deals to meet with friends and swap dinners out for a meal in.
The first few months are your best because you’re focused and dedicated. After a couple of months, and then periodically, reassess your savings and the plan.
So long as you’re meeting your minimum savings amount, you could allocate a month to give yourself a break, your birthday month, for example.
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