Saving for a house deposit is never going to be a simple task, but that doesn’t mean that it has to be the lengthy and painful ordeal that it often seems to be.
Of course, it requires plenty of discipline and restraint, but it’s far from impossible. As long as you make a few necessary lifestyle changes and have the proper help that you need.
The longer it takes you to save for your deposit, the more money you’re going to need. So start now, and read the tips below for a helping hand.
How to save money to buy a house
1. Pay off your debts
If you want to buy a house, then paying off your debts, especially your credit card and loan debts is an essential first step.
Once these debts are eliminated, you will have more money to save each month, and you’ll also increase your borrowing power, as your credit score will likely rise.
Of course, paying off your debts is a huge task itself. And will require you to cut down your monthly expenses, which is another necessary step towards saving.
2. Cut Your Monthly Expenses
If you want to save for a house (or pay off your debts), then you’re going to have to free up a fair amount of money each month for you to use.
This won’t be simple and will require a great deal of restraint, but it can be done. Make a list of all of your outgoings each month, and highlight areas where you think that you could save some cash, such as grocery shopping.
You can also stop spending money on non-essentials, like days out and takeaways.
3. Choose somewhere to save
Once you’ve freed up some cash, you need to figure out where to put it. Rather than keep it in your regular bank account, where you might be tempted to spend it, put it away in a savings account that you can’t open until you hit your goal.
Alternatively, you could use one of the many apps or websites which provide you with a place to save, and also give you advice on how to plan and prepare financially. Just keep your cash away from high-risk vehicles.
4. Consider a side hustle
If you’re still not putting away money as quickly as you want or need to, then it’s time to make some extra income to boost your savings.
Selling some of the things that you no longer want on eBay, Depop, or Facebook is a great way to do this.
If you don’t have anything you want to sell, then there are plenty of other side hustles you could consider. Like renting out a room on Airbnb, tutoring or teaching, and babysitting and pet sitting. You could even write an ebook and sell it on Amazon.
There is nothing easy about trying to save money to buy a house, but that doesn’t mean that it has to be quite so hard. Hopefully, the tips above will make the process a little smoother for you.