It is no secret that it is harder than ever so get on the housing ladder in the UK with the average age of a first time buyer at a staggering 30 years old and even worse at 32 in London.
The amount of people relying on the bank of mum and dad as the only way to come up with the money for a deposit is at an all time high and if it were a bank it would be the ninth biggest lender in the country. There are of course many others whose parents can’t offer that kind of financial help so are finding themselves welcoming their children back into their family homes whilst they try and save.
With that in mind I thought it would be beneficial to give a few tips and strategies on saving to try and to help you getting the keys to your own home seem that little bit more achievable.
- Work out exactly what all of your outgoings are each month i.e rent, phone bill, gym membership etc once you have that and you know what your disposable income work out how much of that you want to save and treat it as a bill, put it into a separate account, try to pretend it isn’t there and certainly don’t let yourself touch it.. not even for that handbag you would really like!
- Make small changes like cutting out extras that you can live without. These might include buying coffees and lunch at work each day, if you are a big party animal or love shopping try and have one less night out a month or only allow yourself to buy a certain amount of clothes each month by setting a budget, the little things all add up!
- If your job is near family try and move back in if this is possible, this will save you a fortune in rent even if you come to agreement and arrange to pay for the family food shop each month for example this will still be way cheaper.
- If you can’t live with family and do find yourself needing to rent then look at compromising on something to make your rent cheaper, examples of this might be the location or number of bedrooms, short term pain but long term gain!
- Shop around and get the best deals for things like your internet, car insurance, gas and electricity. It might seem like a chore or a waste of time but it will be worth it in the end.
- Do your research and look at which ISA’s or help to buy schemes might suit your needs and circumstances best and then sign up. There are a variety to choose from such as the Lifetime ISA, Help to Buy ISA, Help to Buy: Shared Ownership to name a few.
It won’t of course be an overnight fix to saving the money for a deposit but the sooner you start the sooner you will get to being a homeowner – totally worth it!
Header image – photo is not my own and was found on Pinterest
Blog images – photos are not my own and belong to Taylor Wimpey, found via Pinterest