How to Help Yourself Gather a House Deposit

Each person has his or her own set of financial milestones in mind, marking and measuring what it means to be a winner. For some, it’s finding enough spare cash to travel at will, seeing the world’s sites without feeling financial pressure. For others, driving a prestigious car is a symbol of success, showing off to others the spoils of personal success.

Still another group of Britons is most interested in setting by money for the future, funding a luxurious retirement without financial worries. None of these ambitions is necessarily better than the others; it’s all a matter of personal preferences and ideals. Despite differences between individuals’ financial focus, if there is a single goal shared by many UK families, buying a house may be the most commonly coveted financial ambition.

Not only is owning a house a good investment, most of the time, but it also serves an essential practical purpose. Everyone needs accommodations, so the symbolism of keeping a roof over your loved ones’ heads – of owning it, brings a powerful sense of achievement. Unfortunately, salaries are not rising as fast as the prices of most houses in the UK, leaving some would-be owners out in the cold. If you’d like to step in to the housing market, but don’t yet have the needed deposit in place, consider these straightforward moves for putting by money for a house.

Three Costly Habits

When looking at personal budgets, a few costly entries usually stand out more than others. If you can make strides in these three key areas, you’ll have your house deposit sooner than you think – without feeling drastic changes to your lifestyle.

Nights Out With Friends – People of various ages have unique priorities. For members of the younger Millennial Generation, interacting with friends in social settings provides an important release, drawing young people to pubs and clubs, where it is easy to part ways with your money. If this sounds like your social agenda, cutting back on nights out with friends may be a reasonable way for you to divert funds to your house deposit account.

To make steady progress toward your goal, don’t starve yourself of social outings for the sake of your house buying dream. Instead, scale back one step at a time, limiting yourself to a few affordable outings each month. And make it known to friends your cutting back – you may find a supporting cast willing to share frugal good times at home or free events.

High-Interest Debt – Debt is a natural part of household finance, but repayment costs more than it needs to, when you lean on high interest revolving credit cards. Even if you don’t have the best credit history, there are loan alternatives available, which have lower interest rates than credit cards. If at all possible, dial-back credit card use while you’re saving for a house deposit. And when financing is needed, explore more affordable forms of funding, before pulling out plastic.

Expensive Travel – Londoners are familiar with the high cost of travel within the city. Travelcards are not as affordable in London and other UK cities, when compared to other parts of the world. Residents of similar cities in the US and other countries enjoy greater efficiency when using public transport. But the cost of maintaining a car is even higher, so it’s up to you to weigh the costs and benefits of each form of travel – particularly when you are focused on finding savings for a house deposit.

Holiday travel is another matter altogether. If you’re serious about putting by a deposit, you may have to put some of your travel plans on hold. Booking online and planning your trip well ahead of travel dates can save you money on holiday, but devoting travel funds to your house deposit naturally gets you to your ultimate goal faster.

If buying a house is on your list of financial priorities, you’ll need a deposit to make it happen. Though it can be challenging to find the funds, making a few adjustments to your spending habits creates savings, easily directed to your house buying account. To start building reserves, travel efficiently, reduce social spending, and keep consumer credit costs at a reasonable level.

Paul graduated in 2001 with a degree in Finance. Since then he has gone on to work for several of the UK's most well-known financial institutions.

An avid blogger and a huge football fan, Paul is here to guide you through the ins and outs of personal finance and perhaps save you some money in the process!

Leave a Comment

Your email address will not be published. Required fields are marked *