How To Start Saving A House Deposit

May 2018
start house deposit

Saving for a house deposit doesn’t have to be difficult. Nor should you have to deprive yourself of morning coffee or avocados!

 

The hardest part as always is getting started. Here’s a foolproof way to kick start saving for a house deposit.

 

 

Set realistic goals

In order to achieve anything in life, you first need to set goals. For each goal, you should plan how you will achieve it.

 

As we don’t learn how to set and achieve goals as kids, we lack the focus to set and work toward a goal as an adult.

 

While your goals should be SMART, here’s an even better way to set and achieve goals.

 

 

The power of 1

One is a powerful number. One is the start. If you focus on one thing long enough you’re more likely to succeed than fail.

 

So think about having one goal.

 

Need to save a £20,000 house deposit? You have your goal. Having a long list of goals that never get completed is easy. Instead, focus on one!

 

 

house deposit saving plan

 

 

Have a plan

So now that you have your goal, it’s time to work backwards. If you’re trying to save what seems like a large amount for your house deposit, then by breaking it down will make it seem more achievable.

 

Our goal of £20k can be broken down into 10 smaller milestones.

 

Having to earn or save £2,000 instantly feels more achievable than our first goal. It’s just we need to do it 10 times.

 

Yes, that’s a little bit of a shock but still, focus on the smaller amount. So how can we come up with £2,000?

 

Available Time

To reach our first milestone, we must use our time better. You’re probably short on time as it is, but don’t fear. If you can find an hour or two a night, and a few hours over the weekend, that’s fine.

 

An hour a day devoted to the task is way better than a scattered approach. Don’t leave it until the weekends, as you’ll find a reason to put it off.

 

Yes, it’s the hair and tortoise approach! So first calculate what time you can easily give each day.

 

Method

Now that you have an idea of the time you have, let’s think about how to achieve each milestone.

 

eBay

Firstly, eBay. It’s the lowest hanging fruit. eBay believes we all have about £2,000 of unwanted stuff in our home. We could easily convert these items into cash.

 

A few top tips if you haven’t used eBay. Remember to calculate all of the costs before listing anything. Typically these costs are eBay fees, Paypal fees and Postage.

 

Also, look at what others are charging. If you have an item that’s desirable, it may shock you to find it’s selling for a lot more than it’s really worth!

 

Finally, if it doesn’t sell the first time, relist until it does. As long as you’ve priced the item fairly, someone will buy it – eventually.

 

Swap it

If you love clothes and have lots of them, then arrange a swap night with friends. Ask everyone who attends to bring some old clothes and something to eat or drink.

 

Lay out all of the items and let everyone choose a few items. While this idea doesn’t bring in any money, it does save some cash, which could be put toward your house deposit.

 

Dine out for half price

If you like to eat out then look online for vouchers or start shopping at Tesco as you can redeem point as meal vouchers at major restaurant chains.

 

You could also look out for new restaurants in your area, who might be doing a free or pay what you think opening night.

 

Other

Of course, there are hundreds of ways to make or save money including our 7 inventive deposit saving tips. The real secret, however, is to start with what you have.

 

Messy house? Lose the clutter with eBay!

 

Good at crafts? Get selling on Etsy.

 

Enjoy DIY? Then make some fliers and go door to door.

 

 

Measure progress

 

 

Measure your progress

Another reason most fail to set and achieve goals is they forget to measure progress! It’s a stupid mistake we’ve all made, but it’s a simple one to correct.

 

If you’re trying to earn £2,000 over the next 6 months, then you need to bank £333 in profit each month. This works out to around £84 per week.

 

So it’s worth measuring each week how you’ve done in comparison to where you should be. Again if you take a small step each day, you’ll soon find that you’ve nearly completed the goal.

 

 

Keep on keeping on

It’s easy to see saving for a house deposit as a never-ending journey. However, remember the hair and tortoise.

 

It’s better to take little steps often and track your progress than aim for massive jumps. As you keep on, you’ll see that your money compound, which in turn help you to achieve your goal faster.

 

 

Budget a monthly treat

It would suck if you got this far and our advice was if you fail, try again! While you should do that, you should also be kind to yourself along the journey.

 

Plan a token monthly treat like a night at the cinema or a spa day.

 

Plan a reward for each milestone and try to relish your success along the way.

 

 

Start saving your house deposit today

The best way to save for a house deposit is to focus on 1 goal. Get started today. Keep going and make sure you reward yourself after small achievements.