How to Save for a Deposit

If you need a deposit, whether for a mortgage or a rental property, you will need to save up money. This can usually be a considerable chunk of money and you will need to save for a while. A mortgage will usually require a much bigger amount, but the principles of saving will be the same for both.

Set a Goal

To start with you should set a savings goal. You should know how much money you will need to save up and so this will be a good start. You will also need to think about when you want to have the money available. Then you can calculate how much you will need to save up each month. Make a note of this and you will then be on your way.

Calculate What You Can Afford to Save

Your next step is to calculate how much you can afford to save. This is slightly trickier as you will need to look at your household accounts and see how much money you normally earn and how much you normally pay out and work out what the difference is to see how much you will normally have left to save. Of course, not all months are ‘typical’ and some may be more expensive than others. This could be due to things like birthdays and Christmas, car services and MOT, water bills and insurances or things like this. Try to think about whether the month you looked at to calculate how much you normally had left was typical or not.

Knowing what you can afford to save in advance can help with budgeting.

Make a Plan to Fill the Gap

It is very possible that you will not have enough money every month to be able to afford to save the amount that you want. So you may need to rely on guaranteed payday loans. You may also find you can save more some months and less others which could be useful for you. However, if you feel that you will be short most of the time, then you will need to work out what you are going to do about it.

Really you will have a choice of either finding a way to earn more or to spend less. The options are very different and one might be much easier for some people than others so it is worth thinking about this. Although some people may feel that they are equally difficult or easy for them and decide to try both. Of course, trying both could also mean that you will free up even more money and it could mean that you will be able to save up more quickly.

If you need some ideas, then you might be able to earn more if you have a job already by doing more hours, asking for a pay rise or looking for a promotion. You may even need to look for a new job to get more money. It might be that you will need to do an additional job. This could be something inside or outside of the home as there are online jobs that you could consider as well as more traditional things.

Spending less can be achieved by comparing prices and making sure that you are not paying more than necessary for anything that you are buying. You may also find that you might be able to cut back on the amount of things that you are buying. This can be tricky but if you can cut out some treats then you will be able to save up more money. Perhaps limit your luxury spending so that you can save more. It is worth making sure that you remember why you are doing this and that it will be worth it in the end.

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