So many of us dream of owning a property but saving that 20% down payment can be a real road block for so many of us – especially when you’re paying a monthly rent which effectively pays for someone else’s mortgage and invests in their future, not yours.
Saving for a down payment requires planning, focus and sacrifice but only in the short term, here a few unconventional creative ways you can help boost the deposits going into your saving account.
Sell your stuff
Do you have a wardrobe full of clothes you never wear, a designer handbag or a pair of designer shoes that are no longer your style? List those items for sale and have a proper clear out – not only will it reduce the amount of items you need to pack and move (which will be a blessing) but you can put the profits towards your down payment!
Save what you can on rent
Move now, but not into your permanent home; find a temporary home with a lower rental value. High monthly rents are usually where 50% of your monthly salary is going. Find cheaper accommodation and auto-transfer the difference into your savings so the money never hits your account. You’ll see no difference in your living cost and you can save the difference – win win.
Create a budget
This may seem obvious but create and stick to a budget. It’s easier said than done, every pound should be accounted for because you then know where your money is going and you can save the maximum amount each month. You may find excel dated or complicated, consider downloading a trusted app to help get your finances in check.
Side hustle
Side hustles are more popular then ever and some can produce a passive income. The easiest and quickest way to pick up a side hustle is to assess your skills and talent; perhaps you could pick up freelance work in the evenings or pick up weekend job over the summer. Just remember that every penny you make is to be deposited into your savings, as it’s an income that you don’t reply on.
Skip a social event or trip
If you’re looking to make a healthy contribution to you’re savings take time and assess your social events, as these are often the largest outgoings – rent aside. Smaller day to day changes can be made which have a large impact, try brewing your morning coffee rather than picking something up on the way to work. Reducing dinners out and weekend brunches will also make a contribution. But if you really want to make a drastic change consider skipping a trip or wedding this maybe tough but both come with extensive expenses such as travel, gifts and clothing. Whilst this may not be fun, it’s a small sacrifice to make if it can get you on the property ladder in a year or two..
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