I moved out in April (just renting with my best friend) but my plan is to have my deposit for a house saved by April 2017. I’m aiming for a minimum of £12,000 before i start to look for the right place, and hopefully i’ll be nearer £15,000 when it comes to actually putting down my deposit. I live in Newcastle, so house prices are pretty affordable. (i guess some of you who live in London may be thinking my deposit aim is pretty low …) but obviously your deposit will vary on where you live.
I’m at the half way mark (and resisting the temptation for a Chanel bag or last minute Maldives trip like a good girl) so i’m well on track for my target next April.
Saving is really darn difficult though. Not just because you have to stop shopping so much, but because life often gets in the way. I’ll be getting a nice sum saved up, and i’ll have a huge vets bill to pay suddenly, or someone will smash my car window (yep, that happened last week…) or my phone will break … you get the picture. Thankfully i’ve found a few ways to help me save for a mortgage, as well as keep enough in my bank account for those days when everything goes wrong.
Help To Buy ISA
From the 1st April 2016 i set up a help to buy ISA. It was super simple, and the payments come out as a direct debit (if you wish) each month. You can put in a maximum of £1200 before your first payment, and then £200 per month max there after. I’m currently using mine to the max, and i just consider my £200 per month as an extra ‘bill’. For every £200 in your ISA, the government will contribute £50. So once you reach the max limit of £12,000 they will add another £3,000. The money can be used on a mortgage for a property up to £250,000 or £450,000 in London. To save £10,000 (if you put in the initial amount of £1200) it would take you 3.6 years if you’re putting in £200 per month. It may seem like a long time, but it truly is worth it, especially as your £10,000 will be turned into £12,500! Go get one set up ladies & gents!
Make Savings A Priority
You can’t just not pay your rent, so keep that mind set with your savings. Assess your earnings, outgoings, money for rainy days and decide a sensible amount you can save. I would personally set yourself a monthly savings goal you KNOW you can consistently achieve. If some months you have extra, perfect! Add that to your savings, too! But don’t beat yourself up if you’re not overachieving your target each month. Savings soon add up – I promise!
A Savings Account
Although i have an ISA, I also have a separate savings account with my bank. As the limit on my ISA is £200 per month and i want to save more than that, it was the sensible option. I have it set up on my mobile banking, and transfer my savings each month. Easy peasy.
Reduce The Treats
Darn i love a coffee & buying lunch out! But it all adds up. Say you spend £3 a day on coffee (or snacks) 5 days a week, that’s £2160 in 3 years! CRAZY!!! i’m not saying you shouldn’t treat yourself, and i’m not saying i don’t either. But look at all the little costs you regularly spend, and cut them down as much as you can. Over time you’ll massively appreciate the savings.
Reduce Your Outgoings
I guarantee if you look at your bank statement there’s a few things that you probably don’t need to be spending on. Whether that’s an old magazine membership you forgot about, maybe even a gym membership you’ve never used? Or perhaps your phone bill is crazy high? Look at things you can cut down and watch your disposable income (aka savings) go up & up! Even reducing your outgoings by £20 a month is £700 over 3 years! A massive help in my opinion!
Don’t Stress Yourself Out
Although ‘saving’ is important, and will help you have a stable future, there honestly is so much more to life that panicking about money. So don’t stress yourself out about it. Even if you can only save a £20 – £50 a month, every little helps! And if you’d rather spend your savings on travel & experiences – frikin’ go for it gal (or guy)! But for those of you who are wanting to take the next step with saving your deposit, i really hope my tips have helped. xox