7 Mortgage deposit saving tips to motivate you
- By: Ashley Saunders
- January 2018
We all lose focus from time to time, especially when trying to save a mortgage deposit. However, with the right motivation and some mortgage deposit saving tips, getting back on track and staying there is simple.
One of the most common issues when trying to save a deposit is not setting a monthly goal and tracking it. Do you remember the story of the hare and the tortoise? The tortoise eventually wins as he is slow and steady.
The same principle applies to saving a mortgage deposit, you need to do something small every day toward your goal. Before you know it, you’ll reach your goal and be able to start viewing homes!
To get the most from this article, don’t just read it. Commit to trying at least one of these mortgage deposit saving tips! If you do, then you’ll find that you can hit your savings target and buy a home sooner!
#1 Do you need it?
In the last decade, we’ve become enticed by the idea of buy now, pay later, so much that we rarely stop to ask if we really need something. We often pull out the credit card without thinking twice!
The first of our mortgage deposit saving tips is: Do you need it?
If you can wait another week to have it, then you probably don’t need it. You don’t need if you have something similar already. Of course, if you can trade what you have for what you want, then do it.
However, still dreaming about it in a month’s time, then it’s likely you do need or want it. In that case, save for it. You’ll enjoy it far more if you’ve had to work hard for it!
Always consider your options before handing over your cards and make sure you check the price on a few websites first. You’ll want to ensure you get the best price and using cash not debt.
#2 Always price check
Unless your buying something unique, it’s likely you can buy it cheaper. So you’ll want to research any purchase online or try haggling in store.
Also, search for discount codes or ask the shop for some money off. It often pays to be a little cheeky!
Make sure you shop around for the best deal for loans and credit cards as well as your savings. Switching can save or make you a lot of money, so it’s worth taking the time to research.
If you’re really committed to making every pound go further, then buy cheaper brands on your next shop. As our mum would say, take care of the pennies and the pounds take care of themselves!
One of the best mortgage deposit saving tips we can offer is think up five things you can change today that will add money to your saving account and increase your deposit.
#3 Half-priced dining
Dining out is an expensive hobby, even going for drinks on a Friday can quickly add up over a month. Before you know it, your savings account is nearly empty and your back at square one.
Don’t worry, we’re not suggested you become hermits and stop having a social life. However, you should try be smart with your money and keep your goals in mind when you spend anything. At the end of the month, what you save to add to your savings.
Some groceries shops give you points for every pound you spend. They’ll happily mail you some coupons each month for you to spend in their stores.
What you might be able to do is convert these points to vouchers, which you can spend at many restaurant chains. Of course, it’s tempting to spend the monthly vouchers but hang on and treat yourself to a free meal or two.
There are many websites which either offer money off or buy one get one free vouchers to popular restaurants. So it pays to research.
We all hate spam emails and dislike companies emailing us weekly. However, many restaurant chains include vouchers on their weekly emails. It could be something simple as free desserts or drinks, but that could save you quite a bit on your bill.
Again be smart with eating out and try to get others to pay for your meals!
#4 Shop big, save bigger
If you’ve ever shopped at big chain stores, it’s likely the receipt is hiding a way for you to save money. You might find a discount voucher or a coupon. However, we’re talking about something far bigger and better.
Look at the bottom of any receipt. You might see a price comparison and an amount you’ve saved. Big stores do this all the time as it’s a fantastic way to incentive you to return.
Rather than taking this money and spending on more shopping, add it to your mortgage deposit saving fund. It might be a pound or two but do the maths. Over a year, this could be hundreds of pounds.
As we’re only focusing on one shop, imagine how much you could save if you applied this trick to every receipt?! You might be able to add thousands to your savings account.
That way, shopping really does pay! Who knew our mortgage deposit saving tips would involve retail therapy!
#5 Share to save
The next of our mortgage deposit saving tips is to share the cost with family or friends.
Planning to go on holiday? Can you rent a villa and invite the family. You’ll be able to share the cost and spread the work. Plus, if you’re flexible on timing, you might be able to buy a discounted last-minute package.
Need a new car? Can you convince a friend to upgrade their car and sell you the old one?
Can you buy in bulk as a family and split the cost? This might be trickier to figure out ways to share the costs but that shouldn’t stop you from trying.
#6 Swap items to save cash
Can you trade an item you have but don’t need, for something you do?
Popular with the parents back in the day, this is a fantastic way to save money. It doesn’t matter if it’s clothes, DVDs, or even cars! Don’t need it, swap it for something you do.
The best way to make this work is to hold a swap party or BBQ. Invite as many friends and family as you can. Encourage everyone to bring something to eat/drink and 5 items.
As the host, try to present the items attractively. Create a relaxing space with jazz music, mirrors and chairs. The more it feels like your shopping in a boutique, the more likely that even the uglier items find a good home.
Everyone can take home up to five items. If anything is left either save it for next time or take it to a charity shop.
Make sure you put the money you’ve saved into your deposit fund. Don’t undo your hard work with a shopping spree!
#7 Don’t compete
As our best deposit saving tips, you should repeat this daily! Stop competing.
Having a better standard of living in the future will need taking some pain now. The best way to never have to pay rent again is to stop competing and put any extra money in to an ISA saving account to grow faster.
Yes, a newer car would be great. So would a fancy holiday or long weekend away. Not to mention new clothes or shoes.
However, pain is a good motivator. If you really want to buy a house, you’ll stop trying to compete with your neighbours or friends and start add money to your savings accounts.
Always remember, quality of life is more important than the standard of life.
Keep going with our mortgage deposit saving tips!
These fantastic mortgage deposit saving tips will help you to stay focused and keep saving towards your goal of buying a home. Remember to keep on keeping. A little saved every day will be more than the odd large bank transfer.
Any idea you can add to the mix each week or month will help you improve your chances and should help you to hit your goal quicker. Just remember to be consistent as that the real secret to help you toward your goal of moving home.
Slow down and imagine your building a snowball. It takes a while to get going but when it does, it picks up snow from all of over the place. Whatever you do, the best of our mortgage deposit saving tips is to start today!