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7 Ways to Save Money for a Deposit


1st Jan 2015 Property

7 Ways to Save Money for a Deposit

If you're looking to buy a property, then the first thing you need to start looking at is saving up a deposit as soon as possible. However, that can sometimes be easier said than done.

To help you out, here are seven ways to save a deposit in as short a time as possible.

Set up a direct debit

When your wages go in at the beginning of every month, have a direct debit going out either on the same day or a day later that goes directly into a high interest savings account. If the money goes out practically before you have had a chance to notice that it is there, within a couple of months you won’t be bothered by not having it each month.

Work out a budget

Saving for a deposit is the very best time for you to start thinking about a budget that you can stick to for the future. Work out exactly what is going in and going out, and prioritise rent, bills and savings before anything else.

Cut down on luxuries

You can easily go without a bottle of wine or a Friday night takeaway each week if you know that in the long run it will be adding up to you owning your own home and having something as tangible as a property in your name. Even if you only save an extra £20 per week, this adds up a huge amount over a year.

Make it hard to access your savings

Choose a savings account where you need to give notice before you are able to access any money from it. If you have to do this then you are less likely to use your savings unless you really need them, as opposed to dipping into them all the time for things that aren’t really necessary.

Move back home

Although it may seem like the worse thing in the world to have to move back in with your parents after a long time living on your own, if you think about it you can save thousands of pounds in just a few months if you don’t have to pay rent to a landlord. This is a great way to fast track your savings so that your deposit is ready much sooner.

Get another job

Again it may seem like a hardship, but will only be for a short time, and if you have a second job you can use all of the money from this job to go towards your deposit, whilst your regular job continues to pay your standard bills and expenses.

Beat bad habits

Smoking, drinking regularly and other bad habits may already be things you are looking to shake off. There is no better reason to get rid of a bad habit than if you will be able to use the money towards something positive like a mortgage instead.

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