How To Save Up For Your First House

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How To Save Up For Your First House

Saving up for your first house is not easy, especially if you have never saved for anything before. Many people live paycheck to paycheck and so don’t have a lot of money to spare for a deposit for a mortgage. This is why we have put together some money saving tips to help you to buy your first house. If you are interested in this, you should keep reading this article to find out more.

Set A Budget

Setting a budget and sticking to it is a lot easier said than done but if you want to be able to save up for your first house then you are going to need to try. Think about everything that you are spending each month and try to come up with a budget. Your budget should include things such as food, rent, bills and other things that you need to pay for. You can give yourself a little extra to pay for socialising or whatever you spend your money on but make sure to keep this low. Once you have set your budget, you can give it a go and adjust it if you think that it is not possible.

Set Up A Savings Account

When you have all of your money in one account, it can be difficult to keep track of what you are saving. This is why you should think about opening a savings account that you can use to put the money that you save each month into. This way, you can see a clear figure of how much you have to spend for the rest of the month and you’ll be able to keep it separate. You would be surprised at how much difference a savings account can make to your finances.

Try Temporary Work

If you want some extra cash to help to go towards that deposit, you’ll need to think about taking on some extra hours at work or applying for a second job. If you can’t commit to two jobs, then you should think about trying some temporary work. These sorts of jobs only last for as long as you can commit to and you’ll be able to make some extra cash in no time. Find temporary work fast with Staff Heroes if you are interested in this.

Set Up A Help To Buy

If you have never heard of a Help To Buy savings account, then you’ll be glad to know that this government scheme can help you to save for your deposit. With one of these savings accounts, you’ll put a bit of money in each month and when you are finished saving for your deposit, the government will add 25% on top of what you have saved. This is a really good scheme and if you are planning on saving for a house you should make sure to get a Help To Buy ISA before you miss out on your great bonus.

Downsize

Are you currently renting and throwing money down the drain? It might be time to downsize and find somewhere with cheaper rent. If you can spend less on your rent each month, you’ll find that you can save some money that can go towards your mortgage. If downsizing isn’t an option, you could consider renting out your spare room or using a site like Airbnb to find short-term guests. Think carefully about how much you are spending on rent each month and you’ll be able to save a lot more.

Ask Your Parents

Our final tip for those who are trying to save up for their first house is to ask your parents for help. Although you might not want to borrow or take any money from your parents, you might find that they are willing to help you out in the short term. You can make an arrangement to pay back the money that they lend you over time, without any interest added on. This way, you’ll be able to save up a lot quicker and get on that property ladder before you know it.

Final Verdict

If you are planning on buying your first house, you might want to think about it carefully and take on board the advice that we have given you in this article. Do your research and find out more about savings accounts and the Help To Buy government scheme. If you do, you’ll be able to save a lot more money in the long run, especially with that extra help from the government. You should also make sure that you set yourself a monthly budget and that you stick to it. It can be easy to go over budget, so this is something which you are going to need to be strict about.

 

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