How we saved up a house deposit
Saving money is never easy, especially when paying money out to rent. Me and Tom were really lucky to have had the luxury of living with our parents until we saved a deposit to buy our first home together.
We saved our deposit in Help to buy ISAs where we both saved £200 a month with the view to the government adding a 25% bonus of our final figure at the time of purchase. You can no longer get a Help to buy ISA however the Lifetime ISA is a similar alternative that is still available from most banks. Both of us had a separate savings account that we would put money into at the end of the month if we had any spare cash left over.
Also we found the best ways for us to save were to live below our means. If we received pay rises we would put the extra straight into a savings account and tried not to think of it as our money to spend. Even though we both got paid monthly, we would budget weekly by splitting our monthly money into how many weeks were in that month. We set realistic goals of how much we would like to save in a month and would try to find cheaper ways of living such a taking a pack up instead of buying food out.
We went down to sharing one car to save on doubling up on insurance and running costs. As well as this both of us signed up for a credit card to build up a credit score, but we would only use this to pay for petrol and we ensured it was payed off in full every month.
By looking into the amount of money we would need to save for a deposit, we got a clear idea of how long it would take us depending on how much we saved per month and the type of house we could afford.
If you are currently saving to buy a house, keep going, you will get there. Every month that you save, is a month closer to buying. Good Luck