How To Save Up To Buy Your Own Home

Buying a home of our own is something that most of us aspire to. I was lucky enough to be able to buy my first home a few months ago, and couldn’t have been more excited. However, I know better than most how hard it can be to save up enough money for a deposit for your dream home. Saving up can be a real struggle, especially if you don’t know how to go about it.

That being said, if you are smart about your spending and have a plan in place for saving money, it is doable. I thought that to make the saving process a little easier for you; I would share a few tips that I swear by.

Saving for a deposit will take a while, but by taking note of the useful tips below, you can make it much easier for yourself.

Set a target

The first thing that you need to do when it comes to saving up to buy your own home is set yourself a target. Think about the mortgage size that you plan on getting, and how large your deposit would need to be for a successful application.

Most mortgages require you to save at least a 10 percent deposit. So, for instance for a £250,000 mortgage, you would need £25,000 for your deposit. It sounds like a huge amount I know, but it is achievable, so don’t stress.

Cut costs

To be able to save your deposit as quickly as possible, you will need to cut your weekly spending. This might be hard at first, but once you get into the habit of living in a budget-friendly way, it will get easier. (Trust me, I know.)

A fantastic way to reduce your spending is by finding ways to lower your monthly bills. Look at each bill and think about how you could reduce them. For instance, you’ll find that by opting to pay via direct debit you can cut the cost of your bills. Or, by swapping your lights for led bulbs and turning down your thermostat, you could reduce the cost of your energy. Making simple changes like these can make saving for a deposit, that little bit easier.

Open a high-interest ISA

Instead of keeping your deposit money in a normal savings account, open a high-interest ISA. By putting your money into an ISA, you’ll find that they grow more quickly, thanks to the amount of interest that you will be getting.

You can opt for an open ISA that can be accessed at any time or a closed one that can only be emptied after a set amount of time. Closed ISAs tend to have better rates of interest, so if you think it will take you more than a few months to save up, opt for one of these.

Be thrifty

Living on a budget isn’t easy, but if you want your own home, it’s worth it. Instead of splashing out on new clothes, fancy meals and whatever new makeup you want, learn to be thrifty in your approach to shopping.

Look for deals and discounts – Wowcher and VoucherCloud are amazing for this. Buy your clothes second-hand from sites like eBay, and from online swap shops. Of course, you can treat yourself now and then, but if you want to save a deposit, you need to be careful of how much you are spending.

When it comes to buying your own home, saving up the deposit is often, the hardest part. It might take time-saving up to buy a house, but trust me, it’s worth the skimping.