The real estate market is doing well. Prices keep going up, and sold signs are popping up everywhere like mushrooms. All of this is great news, and we're all going to be very wealthy.
Think about the person who is buying their first home. Getting that first, hard-to-find step on the ladder must seem impossible. The average deposit is now around GBP12,000, up from around GBP4,000 ten years ago. This means that people who want to buy a home have to save for a long time. It's no wonder that the average age of first-time buyers has gone up to 34.
How can you get yourself into "saving mode" in a simple way? Don't be too optimistic, because it will take a long time to get there. Unless you win the lottery, there are no easy ways to do things.
It would be a good idea to do some math. Try to figure out how much of a down payment you can get and how much you could pay each month. This will give you an idea of how much the house you want to buy will cost.
Rather than making big changes to the way you live, it will be easier to make small changes over time. Small changes are easier to stick with over the longer term.
Look at all the money you've spent recently. By keeping track of everything you spend, you might find things you've been wasting money on and find ways to spend a little less each month. Set aside any money you have saved. It will soon add up and help you save more money.
You can save money in many different ways every day. You might be in the habit of getting a coffee at the station cafe on your way to work. But do you really need it? If you're really thirsty and not just doing it out of habit, a small bottle of tap water will do just as well. If drinks aren't provided at work or you need to work away from the office, it's easy and cheap to make a flask of coffee. You could save about GBP60 per month just by doing this, which is a great idea.
In the same way, pre-packaged sandwiches can be very expensive, and that's just one item. If you pack your own sandwiches, even using ready-made fillings from the grocery store, you could save more than GBP80 per month.
What about your automatic payments? Look down the list to see if you really need the little extras you're paying for every month. Stopping these costs is easy—just stop the direct debits, and you probably won't notice anything different except in your bank account.
Keep an eye on the bills you pay every day. Make it a point to turn off lights in rooms that aren't being used. Your electricity bill can go up if you leave appliances on standby, and do you really need the heat to be so hot? If you pay for things like car and home insurance a year in advance, you might get a discount and save money in the long run.
You might owe money on your credit cards. If you move any debts from these cards to one that doesn't charge interest, the money you pay off will go toward your balance instead of just paying interest.
I'm sure there are a lot more ways to save. Consider it. Check online to see what kinds of savings accounts are available. If you open a savings account with a high interest rate or think about a tax-free ISA, you'll be well on your way to long-term saving and buying your first home.
