Once upon a time, buying your first home would have been a natural and expected step in life for many people. But now, owning a home feels out of reach to the people who would have been able to do it years ago. Some people may always struggle to own a home, but for others there’s one main obstacle getting in the way. Saving up a deposit to buy your first house or apartment can feel impossible when you’re struggling to put any money aside. But even if you feel you’re already pinching pennies, there are ways you can get that deposit together. It won’t happen overnight, or even in a year or two, but by cutting your expenses and bringing in some extra cash, you can build up that all important deposit.
Start Living to a Budget
When you look at your finances, you probably struggle to see where you can save. Almost everything you earn, if not everything, goes out of your bank account as quickly as it came in. That means that all your spending is necessary, right? In reality, there are probably many places where you can cut back. Sometimes cutting down your expenses might require a few small sacrifices, but if you want to start saving you need to be strict with yourself. Don’t make yourself miserable by limiting all the fun in your life, but learn when to say “I can’t afford it” even if you do technically have the money available. If you struggle to control your spending, put some of your paycheck straight into a savings account.
One of your biggest expenses is no doubt your rent. With so much money already going on your living expenses, it’s very hard to put any aside. But when you’ve spotted a 3 bedroom terraced cottage for sale that you have to have, you need to work at getting it. You might consider changing your living arrangements to save cash. If your current home is too big for your needs, you might be able to sublet a room. This will help you out by covering part of your rent – you could charge up to half of what you pay. However, you might need to ask your landlord’s permission to do this. Another option, if it’s available is to move into a room in a shared house or apartment. You could move in with friends or look for ads for available rooms. Otherwise, moving back home could also be an option.
When you can’t find anywhere else to save, look for ways you can bring in more money. One option is to find a second job, but this isn’t possible for everyone, especially if you already work full-time. You could also start a business on the side, perhaps buying and selling, selling things you make or offering a professional service. An extra income stream will take up more of your time, but time spent earning money could stop you spending too much.
Saving a deposit to buy a house will take you a while but if you stick at it and be firm with your saving and spending, it is achievable