Advice for millennials when saving for a deposit
Are you a millennial and struggling to save for a deposit for a home mortgage? The average first-time buyer deposit is 20% of the property value. With inflation causing a 3% increase in interest rates for 2017, it can be difficult to know where you can save your money but now is the best possible time to start saving!
Since 1990 the percentage of 25-to 34-year-olds in London owning a property has dropped from 57 percent to 27, leading to claims that millennials have become “generation no hope”. It’s hard to become a generation of hope when deposit prices can feel unachievable, but with smart saving, you will have a deposit sooner than you think while still being sociable!
Cook your own lunches
Although an easier and quicker option buying and making your own meals will save you thousands of pounds per year. Giving up takeaway meals could save you £2,640 every year on household spending, and preparing lunches at home rather than buying sandwiches or salads will save £2,576 on average. Plus you can eat your favourite yummy food every day, without it being costly.
Make your phone last longer
On average a mobile upgrade will typically cost an additional £154 every year, on top of your monthly phone contact. At the time of your upgrade it probably sounded like a great deal but in the long run, it adds up quite costly. Before deciding on upgrading your phone think about whether you truly need it, saving on this expense will help you achieve your deposit for your mortgage even faster.
Avoid small purchases when you can
Small expenses like your daily £5 coffee, £10 salad at lunch, lottery tickets, online shopping, magazines, and daily snacks are all small purchases that build up throughout the month. Think of it this way a daily £5 coffee adds up to £150 a month, and the average annual lottery habit costs £832 a year, these small purchases can definitely be sacrificed! Instead, why not make your own coffee it’s cheaper and you’re guaranteed for it to taste exactly how you like it.
Have fun in the comfort of your own home
If you’re serious about saving for a deposit for a home then annual expenses of overseas holidays could be reconsidered. Cutting out a yearly foreign city-break could save you another £700 a year, and passing on one night out a week could save you more than £6000 a year. Instead, why not create your own fun at home? Invite your friends and family round comfort of your own home for evenings filled with fun and laughter.
To find out more about our buying, selling, renting and letting processes and how we can guide you through a seamless and stress-free process, contact our expert estate agents in your area today! Call 01489 584298.