There are a lot of big events that we save up for. Weddings, babies, buying a first car. These are all things we work toward to be able to tick off for the achievements we have made in life. One of the biggest achievements for most people is buying their first home. Saving up for that is generally something that ends up a stressful experience for some, especially those on a low income or those who have young families.
For some people, saving to buy a property is more of an investment in their future than just somewhere they can live. Choosing investment properties could be to build a portfolio for your future, or to buy-to-let and build an empire for your retirement and to have something to pass to the children. Saving up for that deposit, though, can take some time and if you are already living a frugal life on a shoestring budget, you’ve a lot of planning ahead of you. So, check out our list below and see how you can save smartly for your deposit:
- Your Chosen Area. Before you can even begin to set yourself a deposit goal, you need to decide which area you hope to buy in. Doing this will determine what you can actually afford to buy. Once you have a good idea of the costs of property in your chosen area, you’ll be able to come up with a figure to save toward. It’s not just the deposit you will have to think about. There’s solicitor’s fees, survey fees and stamp duty.
- Your Budget. If you’re already living on a shoestring budget, you may not be able to find where you can make further cuts. So, instead of cutting your existing budget, work out if you can add to it. Taking on extra work, getting a second job or working toward the same job with better money in another company are all ways you can add an income. This way, any extra money you come into can go straight into the savings pot.
- Your Savings. When you’re actually putting the money away, no matter how much, avoid a cash piggy bank at home and get some advice on savings accounts. The best, high interest account you can find should be the place you put your money. You need that money to grow as much as possible and you won’t earn interest by stashing money under the mattress at home.
- Your Patience. One of the cleverest ways to save money is to be patient about it! A house isn’t a small purchase, which means you need to look at your life and adjust your expectations. You can only go at the pace you can go at, and unless you can get a second job, you can’t eat dust on toast for weeks on end. Be realistic about your savings and purchasing goals and remember that unless you’re pulling in a huge salary, buying a house could take some time.