Saving for your first home is difficult enough - throw a cost of living crisis in the mix, and it’s bound to conjure up some anxious feelings. But while the dream of owning your first home might seem more distant than ever, it's not time to give up just yet. There are plenty of little adjustments and lifestyle tweaks that you can make to make your dream home into a reality.

Here are 7 money saving tips to help you store up enough money for your home deposit:

1. Pay off your debts

Buying a home with debt is kind of like carrying water in a sieve - it doesn’t make much sense. As well as dealing with a bad credit score, you’ll have to deal with the mountainous task of paying your mortgage repayment at the same time as you pay off your debts. Instead, before you put pen to paper on your new property, prioritize paying off any outstanding loans you have.

2. Make a savings goal

If you don’t have a savings goal, you might struggle to save more than a few pennies month by month. Create a savings target, and you can keep yourself in line and make sure you stick to your budget. There are plenty of money saving apps to support you as you venture into the world of money saving - you’ll be keeping a keen eye on how much you spend in no time. It might be difficult to start with, but you’ll soon discover that the feeling of saving money is truly rewarding.

3. Identify bad spending habits

Take a close look at your finances, and you might identify some troubling trends that you need to stamp out. From buying expensive work lunches to excessive shopping sprees, there are loads of things that could be a drain on your bank account. Working out where the majority of your money goes is a key step to saving cash in the long run.

Paying off your debts and cutting bad spending habits are great ways to begin saving for a home deposit

4. Sell things you really don’t need

One of the best ways to save for a house is to start selling things that you no longer need. Throw a yard sale, be clinical, and get rid of anything that you haven’t used for 6 months. Who knows, you might discover that something you barely use has a huge resale value - whether it’s a disused record player or an old TV.

5. Live with your parents (if you can bear it) 

Many aspiring home buyers find that their dream of home ownership is made more difficult by the high cost of rent. If you have the luxury of doing so, you might want to consider extending your stay at your parents' home. Sure, you’ll have to sacrifice a bit of your independence and maybe even pay a bit of rent, but you’ll also save a ton of money in the process (and maybe even snag a few free home-cooked meals!)

6. Buy a new build 

Okay, so new build homes come with higher initial price tags. However, you’ll find that the investment of a new build will save you a lot of money in the long run; with the bonus of having environmental benefits too. Built according to the latest sustainability standards, you’ll get to enjoy a home with energy-efficient materials, keeping your home insulated without running up your energy bills. You’ll also save money on repairs and fixes, as your home will come with brand-new fixtures and appliances.

7. Opt for Shared Ownership

If you are a first-time buyer struggling to scrape together the funds for a house deposit, you’re in luck - there are a few different affordable home ownership schemes to help you onto the housing ladder. Giving you the option to pay for a share of your home, while paying rent on the remainder, Shared Ownership can help you buy your first home without the need for you to save up a huge deposit.

Looking for an affordable route to the housing ladder?

Peabody has a range of modern Shared Ownership homes for you to start your home-owning journey! Check out our property search to find your dream home.

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