You should start saving a deposit for your new home as soon as possible and safe gradually and steadily. Remember every penny counts so resist temptation and take these few simple steps to increasing your bank balance and building your deposit more quickly.
1. Open a bank account dedicated to saving for your deposit. This can be a notice account, giving you slightly higher interest and make sure you do not have a debit card or credit card linked to the account. By keeping your deposit savings in a separate account to your current account, you will be less likely to withdraw the money and use it for other purposes.
2. Set up a direct debit so that as soon as your monthly pay check goes into your normal checking account, a small amount is paid automatically into your deposit savings account. This does not have to be a lot as every little helps, even just £5 a month will start to add up over time.
3. Leave your credit card at home when you go out shopping or for a meal. This way you will not be tempted to spend more than you can afford and be left paying off interest on your credit card each month from money you could be using towards your deposit.
4. Look out for bargains when shopping. Choose two for one options, buy whatever is on special offer and plan ahead for the week’s meals so you are not having to spend fuel on additional trips to the supermarket for one or two items. Collect vouchers that are available on certain items and use store loyalty systems to save a little extra and put the small amount of savings into your deposit account.
5. Invest in a Slow Cooker. They cost only a few pounds and are far more economical to use than an oven, they are easy and simple and as food is cooked over a longer period you can then buy cheaper cuts of meat and make savings this way.
6. Cut down on those little extra treats. If you smoke and usually go through 5 packets of cigarettes a week (or around 20 a month) try and cut it down to 4 packets a week. Not only will your health benefit but the extra few pounds you save can go towards your deposit. If you normally treat yourself and the family to a take out every week, change this to once a fortnight and put the savings into your deposit account.
7. Turn your heating down a degree and wear an extra jumper. Electric is expensive and if you can just save a few pounds a month on your bill, you can build your deposit more quickly.
8. Walk instead of taking the car where-ever possible and save money on fuel.
9. Look out for free events and special deals for days and evenings out. If you usually go to the cinema on a Friday, check the schedule as you might find you can get half price tickets on say a Wednesday evening. Find out if there are any other local free events you could attend for an interesting time out, instead of spending money.
10. Finally go through all those drawers and wardrobes, all those boxes of clutter lying around and list items on bay or do a car boot sale to raise some cash and tidy up your home. Place any money you make into your deposit savings account.
By making just a few small changes to your routine and how you live your life you will soon be able to save a deposit for your new home. As the old saying goes – look after the pennies and the pounds will take care of themselves.
© Rachel Gawith is a freelance writer and marketer, specialising in real estate topics and writing for www.whathouse.co.uk property portal as part of their marketing team.