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How to save for a deposit for your first home

How to save for a deposit for your first home

Raising money for a deposit is all about saving. Here are a few tips we’ve picked up over the years to help you get started.

1.Make a plan. For first time buyers, a deposit can seem like a daunting amount of money. Understanding that saving is a long-term undertaking and requires thought and planning will make a huge difference.  Look at past months’ spending and your normal monthly outgoings so you fully understand your financial footprint.

 

2.Find a free online budget template to help you assess your finances. As well as fixed monthly costs, such as bills, you will be surprised how much you spend on seemingly small items. Having a document you can refer to and cross-check is vital.

 

3.Avoid overestimating the amount you can set aside each month. Trying to save too much is likely to put you off and leave you feeling disappointed.

 

4.Find the right savings account by researching interest rates. Although interest rates are low at the moment, shopping around is still a great way of maximising your savings.

 

5.Set up a standing order from your main account to a dedicated savings account.

 

6.Talk to your family and friends about your goals. Small changes, such as opting for nights in rather than dinners out and searching for offers and deals, will significantly reduce your monthly outgoings. Having your friends and family on the same page will make this infinitely easier.

Saving is not easy; it requires a conscious, focused effort and often a complete change in habits. Focus on the long-term, if you find yourself losing enthusiasm, find ways of refreshing your approach. Most importantly, make sure to remind yourself of the reason you are saving, don’t forget it should be an enjoyable experience that is allowing you to progress on your property journey.