LOCKDOWN THE SPENDING AND UNLOCK HOME OWNERSHIP DREAMS
In theory, saving money for a deposit is simple. You just need to spend less than you earn, and put away any money you don’t spend each month straight into your savings. Easy right? However, in reality, human nature makes this simple act much more complicated, so you need to have a plan in place and a good dollop of motivation in order to save that all-important deposit. The good news is that with Shared Ownership, deposits are much lower, so getting on the property ladder is more achievable than it seems. Here we share some money saving tips to help you increase your savings pot, build healthier spending habits and get into the right mindset to reach your home ownership dreams.
Spending tweaks to profit from
With the nation in lockdown once again, developing healthier spending habits should be much easier. Working from home eliminates travel expenses and going out socialising is off the table, so it’s the perfect time to re-evaluate your monthly budgeting. And if you continue with these small lifestyle tweaks, home ownership ambitions will become more achievable than ever. Shared ownership offers prospective first-time buyers the opportunity to profit from the money they’ve managed to put aside this year and make a solid investment in their future.
Now, if there is something you definitely do need to purchase right now, make sure you take full advantage of all the great offers out there and search for the best deals before putting it in your virtual shopping basket. Better still, leave it in your virtual shopping basket for 24 hours before confirming payment, just to double check that it really is something you can’t live without.
Whether it’s changing habits like being tempted by new clothes, popping to the pub after work or taking more time to plan weekly food shopping, these seemingly small tweaks can make all the difference and could give you the push you need to take the life-changing step onto the property ladder.
Doing the maths
These lifestyle adjustments can potentially have a huge impact on your bank balance. According to research conducted in 20191, when we were all going about our daily lives as normal, the cost of the average night out was £70.56. With restaurants and bars taken off the table right now, it’s a great time to be putting this extra money aside each month.
So, to illustrate this we’ve done some calculations. A studio apartment at Ascot House, which you would need a minimum of £3,813 for, would be the equivalent of 54 nights out. Similarly, a one-bedroom apartment requiring £4,000 would see you staying in for 57 evenings and a two-bedroom apartment would need you to swap 73 evenings out for the sofa, in order to secure the property with £5188 deposit. Whilst we’re all aching for an evening out right now, following a whole year of hugely restricted social lives and countless evenings indoors, the cash you spend on nights out can easily be winging its way to your savings account instead. 2
Making a plan and saving a certain amount of money each month is also key to developing healthy spending and saving habits. There are tons of Apps out there that can assist you here. They automatically take money out each month and place it in a separate savings account. This is where adopting a certain mindset comes in. To avoid dipping into this, you need to tell yourself that this money is literally not yours to spend. It no longer belongs to you!
So, now that you are well on your way to becoming a savvy saver, the rest is down to you. Ditch the treats, spend mindfully and stay strong; your new home is just as near as you make it!
1 - Rekom - Late Night Index/
2 - These figures are subject to availability and prices at the time of sale