Have you struggled saving for a house deposit in the UK? You may have heard about the helping hand that first time home buyers are getting in the UK from the government, with the Help to Buy scheme and Help to Buy ISA.
Unfortunately in the US, we don’t have anything similar. And, saving for a house deposit can be extremely difficult for people looking to buy their first homes. Here are some tips for saving for a house deposit.
Tips for Saving for a House Deposit On A Budget
If you’re struggling with saving for a house deposit which can be such a daunting sum, here are some tips on saving for a house deposit and get your savings back on track.
Open a Separate Bank Account
Open a separate bank account for your savings. While this seems obvious, many people let their savings add up in the bank account their salaries are paid into, meaning that once your savings start to build up, it’s easy to accidentally dip into them.
Having your savings in a separate bank account also means you can choose the account that offers the highest interest rate to maximize your money.
Bank Any Surprise Cash
If you receive a sum of money you hadn’t planned for a tax return, a bonus at work or even money from friends or family, then bank all of it. No matter how large or small, putting these unplanned funds into your savings account rather than treating yourself.
It means you’ve effectively become one step closer to reaching your target sum without sacrificing anything. The more often you do this, the faster you’ll have your house deposit – simple, but effective.
Move Somewhere Cheaper
If you’re currently renting, it’s worth considering moving somewhere cheaper if possible. When your lease is over, temporarily moving into a smaller, cheaper rented home can leave you with a larger chunk of money left over to save each month.
It’s a temporary compromise that could help you save for your house deposit much, much more quickly.
Earning Extra Money
Of course, one way to save more money is to earn more money. Whilst your downtime is valuable and you need free time to wind down from your nine to five, taking on a couple of hours of extra work at the weekend is a good way to get ahead with your savings.
It could be something as simple as cleaning a neighbor’s house on a Saturday morning, or working a four hour shift at your local store. It doesn’t have to eat up all your free time, but it’s a great way to get some extra dollars coming in each month with minimum effort.
Have you ever struggled saving for a house deposit while on a budget? What did you do to overcome it? Do you have any tips for saving for a house deposit?