So, it’s officially 2024 and you’ve decided that this is the year you’re going to begin your homeownership journey. It may be tempting to hop straight on to Zoopla and start browsing homes, but unfortunately you’ve got a little way to go before that step, first you’ll need to save for your mortgage deposit.
In this blog, we’re uncovering the most practical and effective ways to save money in 2024 – NOT including sacrificing your social life or keeping your wallet under lock and key.
Set Financial Goals
Your first port of call is to set your financial goals. You’ll need to fully understand your budget in order know what exactly you’re aiming towards and how you’ll save for your mortgage deposit.
- Understand your budget: Begin by evaluating your monthly income and spending. Differentiate between essential spending, like bills and food shops, and non-essential spending. This will help you allocate funds wisely whilst creating your budget.
- Create a savings timeline: A well planned timeline will keep you on track and motivated during your savings journey. Make sure you set achievable goals and stick to them!
- Potential costs and expenses: It’s important to be aware of costs that might creep up on you. Make sure you have an emergency pot with enough money to tie you over should you have any surprise expenses, like car trouble (or a last minute birthday present for your Mum).
It’s one thing to understand your budget, now it’s time to implement those saving strategies.
- Cut down on unnecessary expenses: Identify non-essentials, like unused subscriptions or impulse buys, and wave goodbye. Redirect those funds into your first home fund. It’s about creating space for what really matters.
- Utilise budgeting apps for tracking: Budgeting apps such as Snoop and Emma will help you to stay on tracks and enable you too see all of your spending and upcoming payments in one place. Some will highlight wasteful subscriptions, and some give you ways to save based on where you spend.
It’ll be tricky to save for your mortgage deposit if you’re still splashing your cash willy-nilly. Here are a couple ways you can rein it in.
- Make informed purchasing decisions: It’s time to adjust your mindset to make every penny count. Instead of impulse buys, try digging into reviews, comparing prices, and snagging deals.
- Explore affordable alternatives: Craving your morning latte fix from Gail’s or a fancy dinner out? Explore affordable alternatives! Opt for homemade coffee or a cosy night in with friends. Small changes add up, leaving more cash for your first home fund.
Income Boosting Strategies
As well as saving, it’s worth thinking about ways that you can boost your income to reach your mortgage deposit.
- Exploring additional income streams: Consider exploring side hustles. Whether it’s freelancing, tutoring, or turning a hobby into cash, these additional income streams can fast-track your journey to homeownership.
Remember, saving for your mortgage deposit isn’t about skipping the fun stuff – it’s about making savvy choices that align with your goals. From budgeting to exploring side gigs, every step counts toward your dream home. So, sip your homemade coffee and know that each penny saved gets you closer to that front door key. Here’s to getting one step closer to saying “home sweet home”!