Saving for a Deposit

15 Dec

Saving for a deposit

Saving for a Deposit

You’re doing it – you’re moving out!  You’ve found some good flatmates, you know what to ask when you’re looking at properties, but there’s one last obstacle to overcome – your deposit.

Paying a deposit on your new flat is likely to be the priciest aspect of moving.  As we’ve covered in previous blogs, you pay a deposit so the landlord has some form of guarantee should any costs arise during your tenancy.  Here are our tips for helping you save up for that initial lump sum.

Start Now

There’s an old Chinese proverb that says “The best time to plant a tree was 20 years ago. The second best time is now.”  Yes, the best time to start saving would have been long enough ago to have finished by now, but you have to start sometime!  Taking the first step and putting a little money aside is a big psychological barrier to cross, so be proud of yourself when you do it!  This brings us to our next point…

Prioritising

It’s not your fault that high street coffee shops make their seasonal drinks so delicious.  You’re only human!  While a gingerbread latte might be the best thing in the world while you’re drinking it, they do come at a price (and we don’t just mean the calories).  If you’re serious about saving up for a deposit, you’ll need to prioritise your day to day spending.  If a festive drink is approximately £3.75 and you treat yourself to them twice a week, that’s £30 a month – or £360 a year!  That’s a substantial portion of a deposit just in coffee money.

Visualisation

Saving up money can be quite an abstract process – having a way of visualising your progress will help you stay motivated.  You could either use an app like Money Box or Toshl, or even just keep a note of the money you put away on a poster.  That way when the coffee is calling out to you, like a siren to shipwreck, you can remind yourself why you’re doing without.

Don’t Spend It!

This might seem obvious, but make sure you keep your savings somewhere you can’t easily spend them.  If you keep them in your current account, they might get eaten up by direct debits or casual spending.  Keep your savings in a separate account or an ISA to make sure they stay safe.

If you’re disciplined and determined, and you’re willing to make a few sacrifices, in no time at all you’ll have the money you need to pay your first deposit!