How did you save for you first home?

SamanthaKing

Hey everyone,

I am in my early twenties, renting and working in Bath. My paycheck just about covers rent/bills/food but there isn't anything left over.

I am just wondering how and when you all got on the property ladder? I think other people's experiences/tips might just help me in the process! :beer:

jbondo

Hey Samantha,

I'm the same age as you & currently going through my first house purchase at the moment.

I would advise starting with a Help to Buy ISA. In the first month you can put in upto £1200 & each month after that a maximum of £200. When you come to complete, the government will give you 25% of what you have (there are minimum amounts you need).

It's taken me & my partner a few years of saving to get a deposit of £20k (with 5k HTB bonus between us).

Even if you can't save the maximum each month, even if you put something in the ISA, it's a start!

Probably best to take a look at the HTB ISA guide on this site for some more info

mdori003

Cut out the avocadoes and coffee and you should have a deposit for anywhere in London...just thought I'd say that before someone actually suggests it!

I am lucky in that I live in Northern Ireland where prices aren't too bad so my advice may not be all that helpful. Saying that, for any deposit you need to either increase earning potential or reduce outgoings and realistically in a lot of places have a 2 person income. There are lots of great guides on the site about how to budget and invest in ISAs as someone has said. Once you write out where you are spending money on you have to make decisions (do I need latest iPhone or would a Motorola sim only do, could I have less takeaway/meals out, holidays etc - not saying one is right and one is wrong but it helps prioritise your spending towards a goal). It is harder today than it has been in the past but is achievable for most people although of course some people do live frugally but just don't earn enough for where they live.
Does your career have room for promotion, or do you need to invest in yourself short term for long term gains in a different career?

You are also in your early 20s so plenty of time to enjoy life as well! But good that you are thinking about it, good luck.

Instability

As above, help to buy ISA/LISA is a good start and will give you 25% extra when your time does come - the earlier to start the better as it's limited with what you can put in.

Could you not rent anywhere cheaper if you have nothing left over each month? It'll obviously be difficult to build up savings if you're spending everything you earn on the basics required to live; so something will need to change (reduce spending or increased wages).

I'm 26 and in the process of buying my first home, only been working for 20 months because of a long Uni degree, but it means I am paid well and I live in the North so rent etc. doesn't cost silly amounts, meaning I could save money quickly.

need_an_answer

I'm not sure whether this is the type of inspiration you are looking for but there is a board on the forum called "how much have you saved"


https://forums.moneysavingexpert.com/forumdisplay.php?f=53
within that board people set up threads to discuss their monthly savings/successes and not so successful months and motivate others as needed.

Within that board I found this thread that has been started by a forum member who coincidently also lives in the west country and is saving for her own home.
She's been running her thread now just over a year and its well worth a read to see how much she is managing to put aside with her goal in mind

https://forums.moneysavingexpert.com/discussion/5850035/saving-for-my-first-bricks-and-mortar

Sometimes writing down and documenting your journey whether that be on a forum where all can see or privately can help motivate you to achieve something

Start with a small amount each month and lock it way in a savings account.

There are also boards that will help with budgeting,meal planning and general money saving which you might also find useful if you are struggling to save anything at the end of each month.

What I would say is don't expect to save £100's initially but every little bit does add up over time.Wanting to do it is a good motivator but you may need to cut out some things in order to achieve it...again start small..one less night out and saving what you would have spent,one less coffee,homemade lunches and it all starts to add up in your account

Takmon

SamanthaKing wrote: »

Hey everyone,

I am in my early twenties, renting and working in Bath. My paycheck just about covers rent/bills/food but there isn't anything left over.

I am just wondering how and when you all got on the property ladder? I think other people's experiences/tips might just help me in the process! :beer:

Realistically your paycheck will not equal the exact amount needed to cover your rent/bills and food. So there is likely to be something left over.

So first i would recommended you set out a budget which lists every penny you spend on each category and then see what you can cut down to start building up some savings.

csgohan4

You don't have to buy immediately , Bought in the mid 30's and focused on career before hand to get to this point.

Davesnave

SamanthaKing wrote: »

Hey everyone,
I am in my early twenties, renting and working in Bath. My paycheck just about covers rent/bills/food but there isn't anything left over.

Oddly enough, I was in my 20s and renting in Bath while saving for my deposit. I managed to get two cheap rentals, both very basic, and I couldn't afford to furnish or heat either of them and save. Life was a whole heap of no fun, but I knew it was temporary.

Like the poster above, I focused this dull time on building a career and received two promotions in two years, which helped significantly. By the time I was 27, I was ready to buy, but then I faced another dilemma: modernised house in a less salubrious area (Twerton!) or a smaller unmodernised house on the borders of Audley Park. Hmmm..."worst house on best road?"

Audley Park won, but that meant basic living again with no proper kitchen, no heating system and wiring that scared me every time I boiled a kettle. The previous occupant had been 82 and doolally.

Long story short, I learned DIY, rewired the house, put in a second-hand kitchen and installed heating. Then, having finally made the place habitable, I married, so the joint income helped further and we even had a borderline respectable car!

The moral is simple: live like a monk for a few years, work like a slave and don't be scared to learn new skills or get your hands dirty. Above all, don't try to buy in Bath if you want an easy ride; there are plenty other nice places to live where houses don't cost the earth!

Dizzy_Ditzy

need_an_answer wrote: »

I'm not sure whether this is the type of inspiration you are looking for but there is a board on the forum called "how much have you saved"


https://forums.moneysavingexpert.com/forumdisplay.php?f=53
within that board people set up threads to discuss their monthly savings/successes and not so successful months and motivate others as needed.

Within that board I found this thread that has been started by a forum member who coincidently also lives in the west country and is saving for her own home.
She's been running her thread now just over a year and its well worth a read to see how much she is managing to put aside with her goal in mind

https://forums.moneysavingexpert.com/discussion/5850035/saving-for-my-first-bricks-and-mortar

Sometimes writing down and documenting your journey whether that be on a forum where all can see or privately can help motivate you to achieve something

Start with a small amount each month and lock it way in a savings account.

There are also boards that will help with budgeting,meal planning and general money saving which you might also find useful if you are struggling to save anything at the end of each month.

What I would say is don't expect to save £100's initially but every little bit does add up over time.Wanting to do it is a good motivator but you may need to cut out some things in order to achieve it...again start small..one less night out and saving what you would have spent,one less coffee,homemade lunches and it all starts to add up in your account

Thank you :D

OP if you want to do this, you can find a way. A year ago I'd never have thought that I'd have as much put away as I have. It hasn't all been easy but it's worth it.

I make my own lunches for work. I don't buy coffee out and rarely buy anything that I don't need if I haven't put as much away as I possibly can that month. I kind of have a minimum that I want to put away each month and then what's left is mine to buy what I want.

The further you get into saving,mthe more ways you find to become "inventive" to save a few £'s. For example, I use the cashback sites much more often for stuff I know I'll have to get. My insurances are coming up in the next couple of months so I'll get cashback off those. My bank does a cashback thing for different shops so I tailor my shopping around those - I pay most of my hiusehold bills monthly in cash so if there is a shop on my banks list that does pay point, then I'll pay the bills in that shop by card and generally get between 5-10% cashback from the bank.

I only buy clothes when I really need to. I colour my hair myself and have even started trimming it myself :rotfl: no :eek: moments yet :rotfl: just the hair thing saves me £60 every couple of months

Be realistic about your expectations. You want to buy in Bath. That ain't cheap! Is buying slightly on the outskirts an option for you?

Every month, without fail, I write out a list of that months outgoings. I then work out a rough budget for each week and take it from there.

Edit - I've also been saving all my £2 coins and putting them in the bank when I've got a reasonable amount - that's been about £160 in the last year

If you want it badly enough, you can and will do it. Please feel free to pop in on my thread anytime

Finchy2018

Inheritance sadly. But prior to events surrounding this we had moved onto a narrowboat which halved the rent we paid and provided an asset to eventually sell as our deposit.

diggingdude

I just worked and saved. Didn't have much fun on the way and hate my job but its paying off now as I'm getting it ready to move in this weekend