Please note, this is a collaborative post.
If you have been reading my blog for a while you will know that I miraculously got on the property ladder last year. Whilst it was a great deal of paperwork, a lot of late nights and a little stress along the way, I am proud to say I became a homeowner in my 20s. Although I may have wanderlust in my veins and I may not be here forever, having an asset is seen as positive in this day and age. It is an entirely different world to when my parents (and grandparents) purchase homes and this calculator shows how much their property has increased in value over the same period. Let’s hope the same happens to me as outgoings are only going to increase and hopefully the value of property will to. Either way, its interesting to see the two generations side by side and it shows times really have changed.
However, everyone’s financial situation is different, from your salary to your outgoing costs, to dependents, it can seem overwhelming. But the brilliant thing is there is always a way. So whether you’re saving for a holiday next year, for a rainy day or a mortgage, what ever it may be, here are a few things that have and are still helping me on the journey of saving.
You’re obviously saving for something (a home in this case), and you know when you need that money by if you have a date in mind of when you’d like to move out (or in). So it’s important to be very strict with yourself and your partner if its going to be joint. Know exactly how much you are putting aside each month, and stick with it, believe it or not that’s the hard part. Anyone can say they would like to put aside £500 a month but many of us will fail to do so.
This is one I am still yet to master, but I cannot emphasise the importance of it. Every month you should know what I like to call ‘hard-out-goings’ are. These include, your phone bill, travel expenditure, rent, grocery allowances and any other bills that are direct debited that are deemed essential. If you have direct debits in there that do not have a true benefit, such as your monthly direct debit with Graze, or GQ then you may want to review your subscriptions. It’s a challenge but with planning, you are able to organise the remainder of your money after the hard-out-goings and savings to accommodate for a little bit of fun.
With planning comes budgeting. So you’ve put aside your savings, and you’ve calculated what your hard-out-goings are and you’re left with x amount to spend until next pay-day. You’ll quickly find that having planned and budgeted you’ll either keep yourself out of debt or work yourself out debt if you’re currently in debt.
When it’s all said and done it’s important to also prioritise, some things may not really be essential. You’ve got to know for yourself what’s important and what isn’t. A little rejigging here and there never harmed any one, so let’s focus on what’s important, and but some other things on a back burner if it doesn’t quite fit the bill of being important.
And above all, there will be a little sacrifice. It may hurt at first but it will feel good when you’ve moved in to your new flat or house, been able not to feel the wetness of a rainy day (unless your roof has caved in).
Please note, this is a collaborative post. This post is entirely for information purposes only.