Get a deposit five years faster than the average renter!
According to a Scottish Widows study, it now takes the average private renter 15 years to save up enough money to put down a deposit for a first home.
The average first-time buyer will need to stump up £30,943 in the form of a deposit, but with private renting costs rising each year, many are finding it increasingly difficult to set aside the amount needed to get that all-important foot on the property ladder.
However, all hope is not lost! With a little bit of forward planning, and by making a few small lifestyle changes, we at VouchedFor believe it is possible to drastically reduce the amount of time required to build up a deposit.
In fact, by committing yourself to some minor sacrifices, and by remaining vigilant throughout, we are confident you can build up the necessary deposit in just TEN years. Plus, you’ll probably get a little bit healthier in the process.
Sounds too good to be true? Take a look at the maths.
Average housing deposit: £30,943
Average time to save: 15 years
Average savings per year: £2,062
Average savings per month: £171
But, as we want to get that down to 10 years, the figures look like this.
Average housing deposit: £30,943
Time to save: 10 years
Required savings per year: £3,094
Required savings per month: £257
So, by saving an extra £86 each month, that dream first home could be yours in just a decade, and you’ll be able to smugly host a housewarming party five years before any of your friends.
But where, you may ask, does that additional money come from? It’s actually much simpler than you may think.
We Brits spend a staggering £6.3bn each year on takeaway coffee. Coffee drinkers spend, on average, £393 each year on all manner of decadently-named hot beverages; that’s around £32.75 a month. The average takeaway coffee costs around £2.50, which means we drink approximately 13 cups of caffeinated deliciousness each month. However, by cutting out just four of those drinks, you will end up saving yourself £10 a month. That becomes £120 over a year, and £1,200 over ten. That’s a latte money!
Research carried out by Macmillan Cancer Support has concluded that the average Brit spends approximately £787 each year on alcohol, or around £65.50 per month. Let’s say a pint of beer costs £3.10 – that’s roughly 21 pints a month, or just over 5 a week. By cutting down to 3 pints a week – or 12 over the course of a month – you’ll save yourself a tasty £28. That’s £336 each year. Cheers!
The average Brit spends a staggering £110 each month on takeaways. That’s around 12 a month, at an average cost of £9.10 per meal, which means the average adult is frittering away money on THREE takeaways each week. We Brits love it when food is delivered to the door, but by indulging just two times a week instead of three, you’ll save an average of £36 each month, which equates to an appetising £400 a year.
A lottery ticket costs £2. If you buy one ticket on Wednesday and another on Saturday then you’re spending £4 a week. Doesn’t sound like much, does it? However, by refusing to buy those lottery tickets, and giving up on the dream of becoming an instant millionaire, you’ll save around £16 every four weeks. That’s an annual saving of £192!
Add those savings together and you’ll be putting away a further £90 each month, which is £4 above our target! That’s a bonus £480 over ten years, which equates to another two months’ worth of savings. So, in actual fact, you can probably get your deposit saved up in 9 years and 10 months!
However, if you're looking to build up your deposit fund but need some additional help with finding the money, speaking to an independent financial adviser could help. To find a trusted adviser in your area, search the VouchedFor.co.uk website.