Saving for your first home can seem really daunting, and it can be challenging to know where to start. Here are some top tips on how to get started:
Review your current spending
The best place to start when you begin saving for anything is always to review your current spending habits. Taking a look over how you are spending your money every month should give you a good indication of where you can make some savings.
Try categorising your spending for the last six months; are you spending a considerable amount on socialising or online purchases? Are these areas that you can cut back or sacrifice in order to save more towards a deposit?
Be sure to also review any standing orders that you have set up, we have all been guilty of paying for a gym membership or additional phone storage that we don’t actually need or use.
Set yourself clear targets
Now that you have reviewed your spending, it is time to determine how much it is that you need to save. Speaking to a mortgage advisor is a good way to establish this. Once you have a rough savings figure in mind, set yourself some clear savings goals.
Make sure that they are realistic and in line with your monthly take-home income. When creating your goals, take into account factors that may influence your saving ability such as birthdays or Christmas.
When you have decided how much you intend to save every month, do some research into lifetime ISAs and other savings accounts to discover how you can benefit from the most interest.
Look into help to buy schemes
Another way you can save is by looking into new homes that are available to purchase. New builds often benefit from various first-time buyer schemes which can include equity loans or a reduction in the deposit required. It is worth looking into this whilst you are saving as it may impact your savings goal.
Consider a side hustle
No matter how good you are at saving, an additional income stream is always going to be beneficial when saving for your first home. Setting up a side hustle could be an effective way to boost your savings more quickly. There are plenty of side hustles out there but be sure to properly research any legalities involved in undertaking this on top of your full-time job.
