Twelve tips to save for a house
The cost of a house deposit is increasing by the day due to soaring house prices. On top of that the cost of living crisis, impacts of a global pandemic, saving for a mortgage deposit is not easy. In this article, we explore some of the tips & tricks in which you can save money for your house deposit as fast as possible.
Here are twelve tips to help you:
1) Be disciplined and live within your means
This includes creating and following a budget and routinely saving, you can get help to do that here. A simple concept is don’t spend more than your bring in.
2) Save on your utility bills
Cut the cable TV and save on bills – sign up for a cheaper internet service, explore multiple suppliers for each utility and ask if any have deals for you.
3) Make sure you have a good credit score
It is essential that you have a good credit score to get a home loan. You should know your credit score before you apply for the mortgage, if you don’t you should explore this. The higher your credit score, the better the interest rate you will receive on your loan. Your interest rate is directly related to the risk that the lender thinks you will default and not make payments on time.
4) Save on transport costs by walking or cycling wherever possible
Most years the cost of getting the train or a bus has gone up, so if you can walk or cycle instead you will save a lot this way. Not only will you be saving money you’ll also be helping the environment and get a bonus health benefit.
5) Cancel subscriptions you don’t use and any unused memberships
Exclusive subscriptions and memberships are great for giving you a ton of content that you may not have had the time to explore. But, if you don’t use them, they’re just wasting your money. The truth is, if you don’t use an exclusive subscription or membership, it’s not worth keeping – it’s just a waste of money. So cancel those subscriptions that you don’t use and any other unused memberships like gym memberships as well!
Finally check with each of the suppliers that there aren’t any conditions that have to be satisfied before you terminate..
6) Sell your old clothes, books, and gadgets online
You may have noticed the emergence of the online ‘buy and sell’ marketplaces. This is a perfect and convenient way to make money from your unwanted possessions. This can be done on sites such as Ebay and Facebook marketplace.
7) Use credit cards with no interest
Reducing your interest payments will give you more money to put towards a home loan. So looking for Credit cards that offer a 0% interest charge will help if you have outstanding debt. If you have some debt on a card that attracts an interest rate you might want to consolidate debts onto a 0% card.
8) Cook your own food and avoid eating out
This includes making your own coffee and tea at home – this will save you money on going out for coffee every day. Sign up for an account with a grocery store like Tesco and use their loyalty scheme (Clubcard) to save money and earn coupons on groceries.
9) Avoid using the phone when it’s not necessary
Unless you have a super deal with all inclusive minutes, texts and data then the more you use your phone the more costly it will be. Without a deal in place extensive periods on the phone can be very expensive. So either spend less time on the phone or negotiate a better deal package. Another tip is to maybe get a sim only deal as these are generally cheaper than getting the latest handset deal.
10) Use a timer on your TV, computer, and games console
This is to help you avoid screen time creep. Unplug appliances from the power source when not in use to save on your electricity bill.
11) Consider getting a part time or second job
This could be anything from working at the local supermarket, part time cleaner or doing some babysitting on weekends. You can also look for freelance work on sites like Upwork or Freelancer which may lead to full time work with a company.
12) Consider an online business/side hustle
Alternatively you could look for a passive income stream such as a blog and build an audience on it – this is a great way to make some extra money as you can write about something you are passionate about and get paid for endorsing products or displaying ads.
We hope you find these twelve tips to save for a house useful!