How to save for a home in a cost-of-living crisis?

Over recent years, it’s fair to say that saving for your first home has become more difficult than ever. After all, who can save anything worthwhile when they have to deal with the rising cost of living? But while the property ladder may seem out of your grasp, landing your first home is far from impossible. By making some smart lifestyle tweaks, you can get a home you love sooner rather than later:

Tips for saving a house:

• Set a timeline and budget
• Cut out any expensive habits
• Consider a change of circumstances
• Look for cheaper forms of entertainment
• Go cardless
• Sell things you no longer need
• Get a helping hand from the government

Set a timeline and budget

Before you start your saving plans, it’s good to have a timeline and some idea of how much you want to save. Work out an objective of how much you need to save, set a realistic monthly saving goal, and then you can calculate how long this will take. Until you set a timeline for when you want to buy a house, your saving process will feel a lot less structured and disciplined. 

Cut out any expensive habits

Everyone has that one addiction that hurts their bank balance. For some it’s buying clothes, while others are drawn to eating out or takeaways over cooking a meal at home. The sooner you identify where most of your money goes, the sooner you can start doing some effective saving! If you use a savings mobile app, you can keep track of your purchases and get a breakdown of where most of your money goes. Go down this route, and you’ll have no excuse for not breaking out of your bad habits.

Consider a change of circumstances

Many people are drawn to renting as a short-term bridge to the housing ladder. However, this can lead you to spend ‘empty cash’ on a property that you will never own. Depending on your circumstances, you might want to consider moving in with your friends or parents to help bolster your savings. This won’t be for everyone - especially if you value your own space - but it can make a huge difference to the money you save.

Don’t want to move in with your parents, but put off by high rental fees? With Square Roots, you can use the affordable rent scheme to rent a home at 80% of the market rate! If you can’t yet afford to buy a home, this is a great way of saving extra money for the future.

Look for cheaper forms of entertainment 

What’s that old saying? All saving and no play makes Jack a dull boy. In other words - don’t starve yourself completely of the things you love - this will only make you more likely to splurge in the long-run! Instead, try and enjoy your lifestyle at a price that you can afford. London is one of the best places in the world to seek free things to do, and you should also be shopping around for the best deals on groceries, entertainment and look out for reward cards!

Go cardless

When you pay for everything with your credit or debit card, it can sometimes feel like limitless money in the palm of your hand. With cash, you get a much more physical representation of how much money you have, which makes you less likely to blow it all at once! So wherever possible, leave the card at home and bring a responsible amount of cash when you go out.

Sell things you no longer need 

If you’re really struggling to raise some extra cash, it might be time to offload some of your old belongings for a good price. Selling your old things will help you twofold - as well as boosting your bank balance, you’ll also be decluttering your home in the process. Try not to be sentimental - if you haven’t used something in around 6 months, it’s time to get rid!

Get a helping hand from the government

Saving up for your house deposit may feel like drawing blood from a stone, but there is a way to speed up the process. In London, there are plenty of government-backed schemes that were created to make home-buying easier for first time buyers. At Square Roots, we recognise the struggle that many first-time buyers make to get on the housing ladder. That is why we offer Shared Ownership and Affordable Rent on all of our homes, helping you land a home you love at a price you can afford!

Looking to save yourself a lot of time in the saving process? Shared Ownership gives you a shortcut to the housing ladder by letting you buy a share of your property, while paying rent on the remainder. Want to find out more? Find your dream Shared Ownership property today with Square Roots.