How to Save for a Housing Deposit
Reduce On Luxuries
Reducing the amount you spend each month on luxuries is one of the main ways of saving up more money in your account. You don’t necessarily need to cut out all luxuries, but the more costs that you can cut down on each month, the faster you will be able to afford your housing deposit.
Reducing luxury expenditure could be anything from eating at home more to rethinking the next holiday abroad. Check your monthly expenditure and see where you are spending money that maybe you could be saving on, such as items that aren’t important to your wellbeing.
Depending on how determined you are at saving up for a deposit, you may need to make more short-term sacrifices. However, just think about the long-term gains that you will benefit from.
Choose a Savings Account
An ideal option would be to open a savings account for a housing deposit. Opening a savings account will stop you from dipping your hands into your savings and it can also help you earn interest on the amount saved. Different banks may offer varying rates of interest for your savings so it’s a good idea to have a look around and see which one offers an option that suits your needs.
You may also wish to consider saving into a lifetime ISA account as this can help beat inflation. With traditional savings accounts, you may have to pay tax on the interest from your savings. By depositing your money into an ISA, your savings will remain tax-free.
Gain more on what you spend!
Loyalty cards and cashback credit cards are great ways to save a bit of money here and there. Whilst you may only be saving smaller amounts of money, these do add up in the long-term. By using these cashback cards, you will be able to maximise the benefits of all of your daily expenses.
Earning points on your loyalty card can also help you save extra money. With the points you earn from your purchases, you may be able to redeem discounts on future purchases or even redeem products with it.
You may even wish to consider downloading a saving/budgeting app. There are a variety of apps that can help you funnel your spare money and build up your savings for a deposit. Some apps can even use algorithms to analyse how you spend your money. You can then decide on how to save and what to cut back each month.
Staying on top of your existing monthly costs can be a challenge at times and it’s important to save where you can as these are recurring costs. Make sure to compare your energy bills and broadband packages each year (or when your deal is expiring) in order to find cheaper tariffs. Make sure to check your monthly subscription services as well. If you find that you are not using
As soon as you know exactly the amount you need to buy your dream home, it's time to plan to help you accomplish this. You may wish to use a savings calculator to work out where you can reduce expenditure and how much you should be putting aside each month.
Staying on top of your monthly costs may be a hassle but it can help you save you a large amount of money and being more organized with what comes out of your bank account.
Contact Hadleigh Estate Agents for Properties To Buy & Rent
If you’re looking for a property to buy or rent in Birmingham, then please get in touch with our property experts. With over 20 years of experience, we are a market leader in the Harborne and Edgbaston area. Our friendly, experienced, and qualified team of estate and letting agents like to take the time to understand your needs to find out exactly what you’re looking for in a purchase or sale.
Get in touch with us on 0121 427 1213 or you can send us an email here.