HOME TIPS
Save! Save! Save! Saving for your first home deposit can seem like an overwhelming and daunting task, especially in today's current climate. The cost-of-living crisis has not made it easy for those trying to save, with food and energy costs that have been on the rise the past few years it has seemed almost impossible to save. FTB has some helpful tips for you to consider to start filling up your money pot!
1p Saving Challenge This savings
challenge is lling up our fyp on TikTok and you can even buy the planners on TikTok shop to help you le your pennies! The idea is straightforward, you start by saving 1p on day one, 2p on day two, 3p on day three and so on throughout the year. On day 365 you would be saving £3.65 and by then you would have saved £667.95. If you were then able to save more than that each day, then think
30
50
20
Record your expenses Noting down what you spend or need to spend is always going to help with budgeting and saving for a house deposit. There are great apps out there that can help you allocate a budget to different areas of your spending. Online banks such as Monzo or Revolut also help you see clearly, with summaries of where you are spending more, such as food or travel, so that you can cut down where needed.
50% 30% 20% Rule The 50/30/20 rule is a guideline for
how much that could be by the end of the year. A simple concept to change your savings habit!
managing your personal nances. It suggests allocating your salary into three main categories: 50% for needs: So, half your monthly income goes on things that you cannot live without such as rent and bills, food and transport. 30% for wants: This 30% should be allocated to things you desire but don't need, including entertainment, hobbies and saving for holidays. 20% for saving: This 20% is put aside for savings. Dividing your monthly income like this can help you manage what portions of your money you should spend and what you should be saving.
Meal prep This is a simple method to save on spending on food. Plan your meals for the week, write down what you need to get and be strict with yourself. Making lunches at home and taking these to work along with snacks you have added into your food budget for the week will help you avoid the temptation to spend in the local Starbucks at lunch.
Make savings automatic Set up your 20% savings so that when your salary hits your bank account, that 20% can bounce right back out again. By making your saving automatic it eliminates the temptation to spend funds before you have saved anything. Additionally, automatic savings often accompany incentives like higher interest rates or reduced fees, so it's important to check this out and compare where to save your money.
Understand your financial goals You need to get in the saving mindset. To better understand how to save and budget you need to understand your short and long-term goals. Making these clear is important. Write your goals down, especially if you are visual. You also need to ask questions − are you in a relationship and saving for your deposit together? Are you both on the same page? Have this discussion with your partner and agree on what you are saving and where it's going.
Be positive and live life. With clear goals you will get there. Don't compare yourself to others, you are on your own journey!
First Time Buyer February/March 2024 95
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