With the rising price of houses in Northern Ireland1, saving to buy a home might feel overwhelming. Luckily, there are some small changes you can make to help bulk up your savings while you hunt for your new abode.
Let Technology Do the Work
New financial services, like Revolut, have options to automatically help you save. You can set a monthly budget which will automatically convert to a daily limit, and the app will send you notifications about how much you have left to spend. Plus, you can look at the categories you’re spending the most money in to help see if there’s any way to cut out any unnecessary excess. There’s also an option to round up your purchases to the nearest pound, with the extra change going into savings. Alternatively, you can set a certain amount to go into your savings each month on a particular date, such as after your paycheck has been deposited.
There are also services online that help you shop smarter and cheaper, like Honey. With a simple Chrome extension, your browser will alert you if the site you are shopping on has any current coupon codes. Plus, with some purchases, you can earn points towards gift cards.
Take a Look at Regular Spends
What’s your vice? A daily coffee? Lunch out on weekdays? A monthly subscription? Take a look at ways that you can reduce, eliminate, or replace these habits, which can add up quickly. To help give yourself a little motivation, calculate how much you’re spending each month to give yourself an idea of the savings you can achieve. For example, if you spend £2.95 on coffee each weekday, you could spend over £750 over the whole year! Then, look at alternative options, such as making your coffee at home and bringing it to work, or packing a lunch.
Keep an eye out for any big sales in your local shops and stock up on cheap items while they’re available at a good price. If you’re able to buy perishable food at a more affordable price, cook meals in bulk and freeze them so that they last. This will help save time in the future as well when you don’t have as much time after work and might typically eat out as a quick and easy option. Check for online forums or groups, which can be useful as there are forums of people posting freebies, sales, and deals.
Do a Spring Clean – Any Time of the Year
Marie Kondo might be popular for her methods to simplify and organise your belongings, but a good deep clean is also a great opportunity to make a little extra money. Look for items that you’re no longer using and are ready to part with, and post them up on a re-sale site such as Free Ads for a chance to add a little more to your savings. As an added bonus, you’ll clear out items that are gathering dust, which means less to move when you have enough money to buy your home.
Safeguard Against Accidents
You may be well on your way to reaching your savings goal. But one unexpected event has the potential to take a huge chunk out of those savings. Make sure to protect the items in your home with contents insurance. You’ll have peace of mind knowing that you’ll be covered in an unlikely event.
Changing a few parts of your daily routine can help you add to your savings and stick to your budget when saving a new home.
This guidance is for general information purposes only. Allianz is not affiliated with any of the above mentioned brands.
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Allianz p.l.c. is authorised by the Central Bank of Ireland.