Saving for a mortgage deposit can be hard work, and it’s not something you want to take too long to do. So, how can you speed things up?
There are basically two ways you can boost how much money you have available to save – bring more in, or pay less out. Let’s take a look at some options.
1. Earn more money
You could look for a better-paid job, or take a second job. Alternatively, you could leverage your knowledge and skills to work as a freelance in your spare time, or make things to sell, perhaps via an auction site or online shop.
Whatever you do, check your contract of employment to make sure you aren’t jeopardising your primary source of income.
2. Cancel things you don’t use
Check your outgoings and cancel everything that you don’t use – like that gym membership that seemed like such a great idea after Christmas. If you aren’t getting full value from subscription services, like cable or satellite TV, for example, cut back or cancel.
3. Look for cheaper – or free – alternatives
Your biggest expense is likely to be your rent, so check out cheaper properties, but do factor in the cost of moving to make sure you make a genuine saving.
Price comparison websites will help you keep on top of the best deals for insurance, phone contracts and fuel, for example, so check and switch if you can get a cheaper deal.
Try the budget version of groceries such as canned and bottled goods and stick with the cheaper version if you like the taste. Instead of buying lunch every day when you are at work, try taking a packed lunch from home.
And, instead of that gym membership, try jogging or exercising in the park or at home. Get your friends to join in so you can keep each other motivated.
4. Sell your surplus
We’ve all got tech we don’t use, books we’ve read, clothes we don’t wear and goodness knows what else. Have a good old declutter and sell what you can – as a bonus, it’s less to move when you do get your own home.
5. Ask for money
Let people know you’re saving for a deposit and ask them to consider cash presents for Christmas and birthdays. And don’t forget the bank of mum and dad – they might just be prepared to help out.
6. Club together
Consider buying a place with a friend. You can pool your resources and get the total needed for a deposit faster. Get any agreement in writing, and make sure you have first dibs if they decide to sell their share.
7. Get the best return on your savings
Make the savings you have work as hard as possible for you by getting the best possible rate of interest on them. Take a bit of time to check out the best deals and the best type of account for you.