We all know the dilemma; renting is like throwing money down the drain… or into your landlord’s pocket and at an extortionate price. But to own your own property takes a huge investment that most of us just don’t have lying around. It is a common saying now that life is much harder for the younger generations these days, with wages lower, and prices higher it’s a wonder we manage to buy anything of use at all!
It is daunting to think about how you can piece together a deposit for a house, which could be £20,000 or £50,000 depending on where in the country you’re buying. But let’s break it down. It’s doable, you just have to know how.
When you begin to save for your first house, you will be told that you need to save huge sums of money, that it’s going to take you forever, that you’re going to need to overhaul your lifestyle… Actually, that’s not always true. Thanks to homebuilder schemes and government assistance schemes like Help to Buy, the sums you need to save and the amount of time required can be less than you would expect. For example, it could take just 6 to 12 months to save the amount you need for that first deposit if you change your spending habits.
Attitude is all important. You need to fix that budget. Work out how much you need to bring home every month on top of your regular wage to make your saving goals. Then get a side hustle to bring home an extra £200 to £500 per month. From selling old clothes on Ebay to offering your millennial skills as a social media wizard to a local business. The world is your oyster.
The most important aspect of saving is knowing exactly what you’re spending in order to know where to cut down. It’s amazing how things can add up. That £2.50 cup of coffee on the way to work? It might seem like pennies but if you had one every work day for a month, that coffee alone would add up to £50 a month that could be sitting in your ever-growing pile of deposit savings. Get yourself a flask and bring your coffee from home! Start taking packed lunches to work. Get the bus instead of that Uber. And when you were about to spend money, once you stop yourself, put the amount not spent into your savings account. On a Friday night if you are thinking of ordering in a pizza… get one from the supermarket for a tenth of the price and put that £20 you just saved straight into your savings.
You will be well on your way to a house deposit in no time.
Following what you are spending can take up a hell of a lot of brain space. Making spreadsheets, keeping receipts, working out bill outgoings… so let someone do it for you. Youtility will keep all of your accounts in one app. We will make you aware of the bills that you still have to pay from your account, track your spending and let you know if there are better offers out there for your gas and electricity. Free up that brain space and take the thinking out of saving.