When it comes to buying your first house, you might think it’s daunting to have to save up the amount of money for a deposit that you need to save. It makes it worse when you realise you have to consider things like stamp duty and legal fees for being able to buy a new house. Saving all of your income is not always going to be feasible, but you do need to know how to save the right amount of money over an expected length of time so that you can buy your home.
When you are looking for a house, you might consider looking for a bad credit mortgage broker if you have had adverse credit in the past. You will still be able to get onto the property ladder even with adverse credit, you just have to ensure that you look for the right expert to help. If you are just starting to save, or you already have some cash in the bank, we have got some top house saving tips to help you to get yourself in the right financial position to buy your first home.
- Build your budget. To be able to save the right amount of money for a deposit, you need to know what your budget is in the first place. If the house you want to buy requires a 20% deposit, figure out how much that would be and set yourself a savings goal. You can then work your savings into your budget as a bill every week, or every month depending how you get paid, so that you can categorise it effectively and make sure that you are staying on top of your savings. After you categorise your expenses, look at all the areas in which you could cut back and set a realistic budget for each category and stick to it. It’s not going to be the easiest thing to do, but when your house is your end goal it’s easy to focus.
- Downsize. To make your savings goals easier to reach, look for cheap housing. You could do this by downsizing. If you reduce expenses and live below your means while you’re saving, you can then save for a cheaper deposit and practice minimalism along the way. If you only spend on what you need to spend, you’re going to make sure you free up some of your income for use with your house savings.
- Cut out the bad habits. If you love a nightly bottle of wine, or a daily packet of cigarettes, it’s time to cut those things down for your health and for your budget. Reducing or entirely cutting out any of those bad habits can really help you to put away hundreds of pounds per year. If you impulse buy, stop taking your wallet shopping with you and only bring cash for what you need.
- Ask for a raise at work. It’s not the easiest conversation to have with your boss, but if you’ve been in your position for quite some time, you might find it easier to ask for a raise and insure that you are getting paid what you’re worth. Not only will this boost your budget, it will be so self satisfaction in your job.