Kelvin Elliot, Property Expert at Property Sale Watchdog, has revealed seven ways to help you save more money to reach your house-buying goals.
1: Don’t miss out
The amount of interest you earn on savings is important and can make a real difference when increasing the value of your pot. Make sure you store money in high-interest accounts, Cash ISA’s, Lifetime ISA’s (LISA) and Fixed-Rate Bonds. Seek financial advice if needed – it pays to actively seek the best accounts for your saving strategy.
2: Savings plan
Saving a set amount each month can help you steadily reach your goal. There are also other strategies, such as the 52-Week Money Challenge, where you double the amount each week throughout the year. This makes it more achievable in the early days and adds an element of fun to your savings. To save £3k in one year, you start the first week saving £5, £10 in week 2, £15 in week 3 and so on. Adjust your amount for week 1 to decrease or increase the amount you will save in 1 year.
3: Beg organised
You may think you are on top of your budgeting and savings; however, if you take the time to sit down and document all your expenditures and income, as well as identify how much you need to save, it can help to highlight any major areas for change. It may demonstrate that you need to increase your income by a larger percentage than you anticipated or that you are spending too much money on one particular thing each month. You may be surprised by your findings and laying them out before you can help you get on top of your financial situation and be in a better position to save more money.
4: Be frugal
This doesn’t just mean that you need to buy all your clothes from charity shops and only use discount codes for purchases; it is more a frame of mind to aim to live within your means. Work out your essential expenditure and try to live comfortably without unnecessary extravagance. You can still treat yourself to nice things occasionally, and no one is saying you can’t splurge every now and again, but aim to keep your living costs to a minimum. If renting, you could opt for a smaller place or maybe you don’t need a garden. Look at locations slightly farther away from the high-priced postcodes. Consider sharing a car with your partner if you don’t need to both use one daily. Look at ways you can adjust your running costs to reduce your monthly outgoings.
5: Automated savings
There are smart savings apps that use AI to help you effortlessly save more money. These apps can help you save automatically by moving any unused money from your current account into a savings account at the end of each month, suggesting investment options and rounding up transactions to put the ‘change’ into savings. Read up on apps such as Plum, Monzo, Chip and Moneybox.
6: Side hustle
If, after outgoings, your income isn’t leaving enough for you to save a significant amount each month, you may need to look at generating a second revenue stream. You could take on another job or start a small business. Look to sell items on marketplaces like Vinted or eBay, or make your own products to list on Etsy or sell at local events. Bear in mind that you may have to declare this additional income in a self-assessment tax return.
7: Smaller Deposit Options
If the amount you need to save is too far out of reach, it may be worth applying for schemes such as shared ownership, the government’s Mortgage Guarantee Scheme (open for new applicants until June ’25) or the First Homes scheme. These options all provide scenarios where you can buy a house with a smaller deposit or a reduced overall value of the home. Although there will be specific terms and caveats when selling the property, it may mean you are able to purchase your first home sooner.
Kelvin Elliot, Property Expert at Property Sale Watchdog.
“Saving a large pot of money isn’t easy and requires restraint, but if you set your sights on the end goal and implement multiple strategies, you will reach your target more quickly, and the reward will be turning the key in the door of your very own home.”