But having a place to call your own can be seriously worth all your hard work. If owning a home is one of your life goals, these money-saving tips could help you meet your saving goals sooner.
1. Switch to a Zero Deposit™ Guarantee
If you’re renting, you might have £1,000+ currently tied up in a security deposit. Our deposit replacement option costs just one week’s rent plus a set-up fee, then just £17.50 per year. It means you could have that £1,000+ back in your personal savings account, rather than it being in a tenancy deposit scheme. That’s a massive upfront injection towards your house deposit goal. In fact, around 20% of our tenants go on to buy their own home next*.
You can find out more about how our guarantee protects you and your landlord here.
2. Cancel or downgrade service plans
Do you need the biggest internet, TV or phone package out there? Do you need peak-time gym membership or could you go out of hours? Scaling back on luxuries like these could save you a noticeable chunk of money each month. That doesn’t mean no fun. Switching to a Netflix, NowTV or Disney+ subscription instead could be a more affordable compromise.
3. Cut back on eating out and takeaways
How often do you go out for food or order in? Try cutting that down by half, or even cut it out altogether apart from for special occasions. It’s easy to spend around £20 per person each time you go out or order, and those £20 notes soon turn into hundreds. Lots of supermarkets now do their own takeaway and restaurant dupes for a fraction of the price, so try exploring their ranges for great alternatives to your favourite Friday-night treat.
4. Sell unwanted items
Instead of donating or recycling old furniture, books, clothes and DVDs, sell them instead. Even if each piece only goes for a few pounds, it all adds up. Try GumTree, eBay, Facebook Marketplace or book a spot at your local car boot.
5. Pay upfront for insurance, car tax and annual subscriptions
If you usually spread the cost of things like car insurance, contents insurance, gym memberships and car tax, try and pay them in full instead. Paying annually instead of monthly means a chunk of money gone up front, but it could save you hundreds across everything.
6. Move back in with your parents
We know, we know. It may feel like taking a step back, but if your family can afford to help you by having you back home for a while, your savings might leap forward a whole lot sooner than they would have done. It’s a big ask for you and your family, but there’s a reason there’s a current ‘boomerang’ trend of adults living with their parents into their 30s.
7. Pay off debt with your savings
The interest on any debt you have is likely more than the interest on your savings. Clear credit cards, store cards, loans and finance agreements with interest as early as possible. Prioritise paying off the debt with higher interest first. For example: clear the 10% loan before the 3% credit card.
8. Ask for a payrise
If you’ve been at your job a while, are close to a promotion or taking on more responsibilities – it might be time to talk to your boss about a raise. Not quite at that stage yet? Ask for a review with your manager. Tell them your goals and see if you can agree on a development plan towards a higher salary.
9. Set up automatic saving
There are a lot of savings apps out there these days. Brands like Chip or Plum automatically link to your bank account and calculate how much you can afford to save without feeling it each month. Some bank accounts like Monzo automatically round up your transactions and put the change in a digital ‘jar’.
10. Set up a direct debit to yourself on payday
Schedule an automatic direct debit to your savings account on payday every month. If the money comes out the same day it goes in, you’re less likely to miss the money.
Ready to start saving? At Zero Deposit, we can set you up with your secure deposit replacement in just four days. Get started here.
*Internal data, July 2021