Saving for your house deposit requires discipline and determination. And if you want to save for your house deposit fast then you’re going to need both those things plus added willpower and a huge amount of commitment for good measure.
House prices are incredibly overwhelming and if you’re part of “generation rent” and a large chunk of your monthly income goes towards your rented accommodation then it can feel as though you have a mountain to climb. But you shouldn’t lose hope, as once you start to see your savings grow, you’ll be amazed at how your attitude towards saving and reaching this seemingly impossible goal will change.
Here we’ll explore how to save for your first home FAST with these easy house deposit tips.
Get your savings in order
Having somewhere to place your savings is essential. Separating your financial goals from your everyday accounts will remove any temptation to spend your savings and make your progress much easier to follow. Lifetime ISAs from Wealthify provide the perfect savings pot for those looking to deposit a maximum of £20,000 each year towards their first house deposit.
You can save tax-free and your money won’t be locked away, you can withdraw it without penalties when you need to. Making your money work for you means you’ll reach that goal much quicker than you thought! For more information, click the link.
Never wait until the end of the month to put your house savings aside. You’re only prolonging the process and undermining your efforts. Scrimping and saving throughout the month and then putting whatever is left into your savings account won’t work. Instead, make adding to your savings pot the first thing you do when your salary comes in.
If you automate these savings and have them transferred automatically from one account to another, you don’t even have to worry about it. Again, this approach removes the temptation to spend!
Consider your car situation
Do you currently have two cars? Or just the one? Whatever your vehicular situation, changing the way you travel could make a huge impact on your house deposit savings. Can you downgrade to one car and sell the other? Not only can the money from the sale go into your savings, but you’ll also save a bundle on insurance, repairs, servicing and fuel costs. If you need the car you have, then consider downgrading to a cheaper, cost-effective runaround.
Sell everything you can
You probably have big plans for your new home. But do those plans involve all the junk and clutter you have right now? Whether it’s old pieces of furniture, toys, clothes, gadgets or junk, consider selling what you can online and pocketing the savings. Remember, every sale gets you a dollar closer to your goal.
And finally, ask for more money
When was the last time you got a pay rise? If possible, consider asking your employer for an increase in your salary. If you work in sales or you receive quarterly bonuses, continue to live off your basic salary and place your commissions and bonuses into your savings account instead. You’ll be amazed at the boost in your house deposit savings.