Home Property How to Save for a Deposit

How to Save for a Deposit

by James McGregor

You will need a deposit, whether you want to rent a home or buy one. If you are buying then you will need significantly more money, but in both cases, you could find that you will need to save up. This is not always easy but there are some things that you can try which may help you out. 

Earn More Money

Earning more money may feel like an impossible suggestion. Many people will be working as many hours as they can manage and there may be no pay rises, bonuses, overtime or promotion opportunities. If there are, then it is well worth considering whether you can pursue them, but there are other things that you can try as well, which could add to your savings and will help you save up towards that deposit. 

  • Sell things you do not need – most of us have things lying around that we do not use anymore and we might be able to sell them. Even if we can just make a little money, it will give us something to help out towards our deposit. It will also mean that we have less things to have to pack up and take with us when we move! There are lots of places to sell these things, such as car boot sales, social media market places, online auctions etc.
  • Monetise your Hobby – most of us have a hobby, but it could be possible that we can make some money from it. Whether it is selling art and craft items that we make, teaching people about what we do or something else, there could be a way to make some money and it is worth thinking about. It might be a case of making money form affiliate links on advertising on a website, blog, videos etc. There are lots of ways to make some money. 
  • Ask for Money Gifts – if people ask you what you would like as a gift, when it is your birthday, then consider asking them for money. Some people would rather give gifts, but money can be a great way to have a bit extra towards that deposit and some people will be more than happy to help you out like that. Even little bits here and there can all add up.
  • Get a second job – if you have lots of free time, then it could be worth getting a second job to help bring in some extra money. You might be able to do something at weekends or during evenings that will help you to be able to save up more money. It could just be a few hours, but it will all help. 
  • Start a business – sometimes starting a business can help you to make extra money. You will need to think it through and be careful, as it is possible that a business could actually cost a lot of money to set up and be a risk. However, there are some things that you can do, which will not have a big start up cost and you will find that it will help you to make some extra money. 

Spend Less Money

Spending less money might seem pretty tricky but there might be some things that you can try which will help you, even if you are already trying to be as frugal as possible. 

  • Compare prices on everything you buy – we might be used to comparing prices in supermarkets between brand names and own brands, but we can extend this to everything we buy. So, whenever you are buying things, whether it is a mobile phone contract or a packet of sweets, it is worth checking prices. You may find that you only save a small amount on each item, but these will add up and could make a considerable difference. 
  • Change brands and retailers – Many of us are loyal to certain shops and brands when we purchase things. This is understandable and you may have tried others but not liked them so much. It is a good idea though, to have another think about whether it will be worth changing. This is because you could find that you will end up saving a significant amount of money. You may find that you are not so keen on them but by swapping and saving money, you could find that you will get the amount that you need for your deposit saved up more quickly. If you think you already shop in the cheapest place, then compare prices as you may find that there are cheaper places that you do not know about or places you assumed were dear er than where you are shopping but are actually cheaper.
  • Ask yourself if you really need it – it can be a good idea to ask yourself whether you really need the item that you are buying, every time that you shop. This will enable you to cut back on how many items you buy. It could feel like you are depriving yourself, but it is good to remember why you are doing this and that you are working towards that goal of getting a deposit and being able to move to the home that you want. 

All of these things, both earning more and spending less, will take effort. However, each one of them will help you to get more money towards your deposit. It can be wise, to set up a savings account to put that extra money in. Any extra earnings and savings you make, pop them in the account and this will build up towards the deposit. If you just keep it together with your other money, you may be tempted to spend it, but putting it in a separate place will remind you that you are saving up and that you should be leaving that money alone. Obviously, it will there if you have an emergency and need money, but it should be left alone if possible so that you can use it for the deposit, once you have enough. Seeing the money increase, will also help to motivate you.

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