Menu Icon Close Icon

TOP 5 TIPS ON HOW TO SAVE FOR A DEPOSIT

24th April 2019
View all articles

Saving for a house deposit is a dream goal for all of us – however, it’s one of those tasks that is easier said than done.

It’s normal to give in here and there – from treating yourself to a night out, new outfit or a cheeky takeaway – but it all adds up!

Whether it’s getting started or finding the strength to persevere, we have the best five solutions to help you not waiver and stay on target.

 

1.    SET A BUDGET

Although it may seem strict, setting a budget is one of the most effective ways to structure your spending and save money.

By categorising your typical monthly expenditures (such as food, bills and entertainment for example) and working out how much you currently spend, you can then set a realistic target for how much you would like to limit your spending to and what is the maximum you can allocate to save for your deposit. There is an abundance of apps out there to help you track and analyse your current spending, and many mobile banking apps that offer ‘savings pot’ features to help you round-up to the nearest pound of whatever items you purchase each day and place it into your pot.

 

2.    BUY IN BULK

By doing an online food shop weekly or fortnightly, this can help you steer away from feeling the need to nip into the shops every day and buying anything unnecessary because it happens to be on offer on the shelf. There are also loads of discount codes that can be applied if it’s your first shop with your chosen grocer, which will support your saving endeavour further.

 

3.    OPEN A SAVINGS ACCOUNT

Opening a savings account specifically for a house deposit can motivate you to save money. There are various ISAs and savings accounts available that you can open, such as the Help To Buy ISA Scheme which is offered across all banks until November 2019 when sign-ups will come to an end.

 

4.    CUT BACK ON SPENDING

You can save more towards a deposit if you reduce your spending on treats such as entertainment and essentials such as gas and electricity. These can be done by limiting your entertainment from two days a week to one, and by saving your electricity by remembering to turn off all the lights that aren’t needed in your house and doing your washing at 30 degrees.

5.    SELL ANYTHING UNWANTED

One of the oldest tricks in the book is if you have any extra furniture or clothes that you don’t need or wear anymore – sell them! By using websites such as, Gumtree and eBay or by attending good old-fashioned car boot sales, these are all simple yet effective ways to sell items quickly and gain extra cash to put away.

 

By following these top tips, saving for a house deposit will soon be an item you can finally tick off your bucket list.

 

Awards & Recognition