You may have found a home. You may have a perfect credit rating. You may be able to afford the mortgage and bills every month. But unless you find several thousand pounds towards a deposit, that starter home will remain a distant dream. Before throwing yourself at the buying process take this quiz by the moneyadviceservice.co.uk and follow the advice in this article on how to cut costs to take a step closer to owning your first home. You can also use a mortgage calculator to help you work out how much you can afford
Selling unwanted items to make money
Take a look through your wardrobe, your cupboards, your CD and DVD collection, and anything else that might have value. Car boot sales, online auction sites and other places might gain you an extra couple of hundred pounds a month. Can you downgrade your car – do you even need one, or will public transport or a bike prove cheaper?
Cutting out debt and reducing loans
The sooner you can get rid of loans and credit card debts, which suck additional money out of your account through interest, the better. It will also improve your credit rating when you apply for a mortgage.
Taking on an evening or weekend job
Taking on extra shifts or a Saturday/evening job will not only put extra money your way, it will also reduce your socialising – and therefore spending. Saying no to going out will mean you can move into a home of your own sooner.
Saving tips around the home
Consider asking your landlord to install pre-pay meters for water, gas and/or electricity, which show exactly what you are spending. There are many other little ways of cutting down on costs around the home, including these suggestions by the Energy Saving Trust. Do you really need to go on that holiday, and are there cheaper options worth pursuing?
If you sit down and brutally analyse your outgoings for the month, you will spot habits and treats which can be reduced or ruled out.
Newspapers, lottery tickets, chocolate bars bought on a whim….time to say no. And those don’t include other bigger spends, such as petrol, gym membership, sports tickets, and more.
Living with parents/borrowing from parents
The number of young adults living with their parents has increased by a quarter since 1996.
Swallowing your pride and staying with the folks for a little longer may sound like a nightmare, but this is the top way of saving money, as this article in Cosmopolitan revealed. Explain to them that you are saving for a house and perhaps put together a savings plan, so they can see you mean it. If they charge you towards the upkeep you’ll also learn how to budget. Failing this, why not try and borrow the money for a deposit from them? Again, pay it back on time and fairly, and remember you’ll be paying it alongside a mortgage.
These are just a few tips for saving money every month – show discipline and these measures will translate into keys to a home sooner than you think.
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