Moving away from home and into your own place is a big step in your life, and at first you’re just proud to be out on your own. But eventually renting somewhere doesn’t feel like enough and you want to have a home that really belongs to you. It’s not easy to buy a house anymore, however, especially for first-time buyers. Getting on the property ladder can be difficult, and one of the biggest hurdles is saving up a deposit. In some cities, the cost of living is so expensive that after you’ve spent your money on rent, bills and food you don’t have anything left to save. Or if you do, it would take you a decade or more just to save enough for a deposit on a house. If you’re desperate to own your home, see if you can do any of these things to start saving for a deposit.
Draw Up a Budget and Cut Back
The first thing you should do to help you save is take a long look at your finances. Keep track of everything you spend for a couple of months and then sit down to see where you could cut back. Are there luxuries you could go without or replace with cheaper alternatives? Check to see if you could be saving money on regular expenses, such as household bills and car insurance. You could save a lot by switching provider for a lot of services, from your phone to your electricity. When you’re cutting back, be hard on yourself but not too hard – don’t create a miserable life just to save money. There might also be ways you can save money that could require a little spending first. Perhaps you can move house, to somewhere cheaper, or make some home improvements to be more economical.
Create Extra Income
Sometimes if your income isn’t enough to help with buying a new home you need to find some extra cash. There are lots of ways you can make a little extra cash on the side without giving up your whole life to a second job. You might not always make a lot of money, but every little bit helps towards monthly savings for your deposit. The possibilities for making money are endless. If you’re creative, make and sell something. If you’re a child care professional, do some babysitting on the side. You can make a little bit of extra cash with just a few hours a week.
Set Up a Savings Account
To make sure you’re actually saving your money, look for the best savings account you can find. It’s a good idea to set up a regular payment and configure it into your budget. That way, every month you know how much money is going into your account, instead of a vague amount left at the end of the month. Try to find an account with a good interest rate and choose one with limits of withdrawing money if you think you’ll be tempted to spend it. Make sure you know how much you’re allowed to save for tax purposes.