Renting is a huge expense for a lot of people, and trying to save enough money for a deposit on top of that is incredibly difficult. We can’t reduce your rent, but what we can do is offer some advice and ideas for how you can maximise your savings without necessarily cutting out all of the enjoyable things in life.
Reduce your outgoings
We can sense the eye-rolls already, but don’t worry - we’re not going to suggest that you stop going anywhere and doing anything enjoyable. There are ways to reduce your outgoings while still doing all the things you love. Switching energy and insurance providers is a really easy way to save money without really even trying. Take a look through all of your bills and contracts and make sure you’re not paying anymore than you absolutely have to. Keep an eye out for good deals, and always take the time to compare providers.
Consider moving or downsizing
It could be that moving to a smaller, cheaper place could make a significant difference to your monthly expenses, or even - dare we say it - moving back in with your parents for a while? There are probably options that aren’t that desirable right now but could help you massively in the long run. These things are always worth costing out though. There’s no point moving somewhere that’s £50 cheaper a month but twice as far from your workplace. Weigh up all the options and see what works best.
Think like your parents
Do you remember when your parents used to nag at you to turn the lights off in your bedroom when you weren’t in there, or stop letting the tap run for so long? Well…turns out they had good reason for doing that. They were thinking of saving money on their bills! So think like your parents! Be mindful of how much electricity you’re using willy-nilly. Turn off lights and electrics when you’re not using them. Try not to stand in the shower for 20 minutes contemplating your life. These things probably seem so insignificant, but they will add up over a period of time and make a difference.
Make your money work
Having money in savings, no matter how much, is amazing! You’ve worked hard for that money, but is that money working hard for you? Make sure you are getting the best interest rates on your savings accounts, shop around like you would for anything else so that you can get the most out of your money. Look into government-backed schemes, such as Lifetime ISA’s or the Help-to-Buy scheme, that reward you for saving or help you with a deposit. There is help out there!
Increase your income
Sometimes there are only so many expenses you can cut down on before you need to start increasing what’s coming in. What if you’ve saved as hard as you can, but you’re still not quite there? It might be time to increase your income. This could be by asking for a pay rise, finding a better paid job, or even finding a second source of income - whatever suits you best. If you’re willing to sacrifice your free time for a while, pick up a second job on the weekends. If you’d rather not, then maybe looking for something that pays better is the way forward. Some of these options could also be really beneficial for you in the long-run.
If your dream is to own your own home but you feel that you’re ‘stuck’ renting, we know your struggle. We hope that some of these tips can help you, but if you would like any further advice, please get in touch!