Money. Money. Money.
Money makes the world go round.
All everyone talks about is money.
I really don't like money, I think it makes people selfish and as a general rule - the more you earn, the tighter you get! Obviously there are exceptions to this.
With the start of a new year, I bet lots of people have "stop spending so much money" or "add to my savings" as a new years resolution, so I thought I'd share my budgeting. Who knows, it might help someone out and get them on the housing ladder!
I've never wanted to rent - I've always seen it as wasted money. I knew from a young age that I wanted my own house with a mortgage, so I worked towards that.
At 21 when I bought my flat, I had saved over £20000. I did have a cracking 3 month travelling trip around the USA, where I spent around £7000, so I didn't have all of it left for a deposit, but I put most of it down on the flat.
My top tips for saving money:
- Don't buy it. Do you REALLY need it? Is it REALLY that pretty? Are you REALLY going to use it every day? If you just want it, then put it back. If you still want it a week later then go back and buy it, but chances are that you'll have forgotten about it!
- Live at home for as long as you can, if you can. I was so lucky, my parents only charged me around £100 rent a month, which is a total bargain! If you're lucky enough to be in a similar position then do it.
- Put a set amount in to your savings on pay day. Set up a standing order from your current account in to a separate savings account for a set amount each month. Make it affordable, but regularly review it, can you up it by just £10? Do it. It's amazing how quickly you'll get used to that money not being there, and it's also amazing how quickly it'll grow in the savings account.
- Set yourself a budget for spending each month. I don't mean on the leccy and water, but on your own personal spending; handbags, eating out, social trips. Stick to your budget. I've actually got two 'current accounts' so I have my 'spending' in one and the other one is where my bills and mortgage etc comes from. I will only take my 'spending' card out with me.
- DON'T DO CREDIT. The credit card. Used in the right way, it can be such a blessing. But use and abuse and you'll be paying it off for years. It's amazing how much that £50 meal will cost in 2 years when it's finally paid off. I have a credit card, but I pay it off in full every month. I've never been charged interest and I only ever use it for protection (ie booking flights or a holiday). If you have an unexpected expense that your savings can't handle then get a 0% credit card and chip away at it as quickly as you can.
There's a fantastic account from the government for first time buyers at the moment, check out Money Saving Expert for the most up to date rates and deals. If you are eligible for it, then do it!
It can be really tough saving, and lots of people look at it as a headache or bore - but just keep the end result in mind. Maybe you're saving for a house, a new car or a wedding. Keep that in mind when you're counting the pennies!
As for me, I'm saving hard to chip away at my mortgage, gradually making overpayments and getting my amount down. We'd like to buy our dream house in a couple of years time, so I'm also building up some savings so that we have enough to cover our moving fees for that.
Good luck!
Ems xx
Money makes the world go round.
All everyone talks about is money.
I really don't like money, I think it makes people selfish and as a general rule - the more you earn, the tighter you get! Obviously there are exceptions to this.
With the start of a new year, I bet lots of people have "stop spending so much money" or "add to my savings" as a new years resolution, so I thought I'd share my budgeting. Who knows, it might help someone out and get them on the housing ladder!
I've never wanted to rent - I've always seen it as wasted money. I knew from a young age that I wanted my own house with a mortgage, so I worked towards that.
At 21 when I bought my flat, I had saved over £20000. I did have a cracking 3 month travelling trip around the USA, where I spent around £7000, so I didn't have all of it left for a deposit, but I put most of it down on the flat.
My top tips for saving money:
- Don't buy it. Do you REALLY need it? Is it REALLY that pretty? Are you REALLY going to use it every day? If you just want it, then put it back. If you still want it a week later then go back and buy it, but chances are that you'll have forgotten about it!
- Live at home for as long as you can, if you can. I was so lucky, my parents only charged me around £100 rent a month, which is a total bargain! If you're lucky enough to be in a similar position then do it.
- Put a set amount in to your savings on pay day. Set up a standing order from your current account in to a separate savings account for a set amount each month. Make it affordable, but regularly review it, can you up it by just £10? Do it. It's amazing how quickly you'll get used to that money not being there, and it's also amazing how quickly it'll grow in the savings account.
- Set yourself a budget for spending each month. I don't mean on the leccy and water, but on your own personal spending; handbags, eating out, social trips. Stick to your budget. I've actually got two 'current accounts' so I have my 'spending' in one and the other one is where my bills and mortgage etc comes from. I will only take my 'spending' card out with me.
- DON'T DO CREDIT. The credit card. Used in the right way, it can be such a blessing. But use and abuse and you'll be paying it off for years. It's amazing how much that £50 meal will cost in 2 years when it's finally paid off. I have a credit card, but I pay it off in full every month. I've never been charged interest and I only ever use it for protection (ie booking flights or a holiday). If you have an unexpected expense that your savings can't handle then get a 0% credit card and chip away at it as quickly as you can.
There's a fantastic account from the government for first time buyers at the moment, check out Money Saving Expert for the most up to date rates and deals. If you are eligible for it, then do it!
It can be really tough saving, and lots of people look at it as a headache or bore - but just keep the end result in mind. Maybe you're saving for a house, a new car or a wedding. Keep that in mind when you're counting the pennies!
As for me, I'm saving hard to chip away at my mortgage, gradually making overpayments and getting my amount down. We'd like to buy our dream house in a couple of years time, so I'm also building up some savings so that we have enough to cover our moving fees for that.
Good luck!
Ems xx
3 comments:
As a first time buyer this is a really useful post and nice to know that I'm not alone when it comes to having to be strict when sticking to a budget, especially when saving for a house.
On average how much would you say is a realistic figure to save to furnish a two bedroom house?
Hey Charlene :)
When I bought my flat, I had zero money to spend on furnishings really. I lived with lots of 'hand me downs' until I could afford to replace them. I'd try to work out your essentials that you need (washing machine, fridge, TV, sofa, bedroom furniture, kitchen stuff) and then look at the cost of those items and work out what you can afford to buy now, new, and which bits you could deal with being second hand for a while. Gumtree and eBay are a godsend when furnishing for the first time, you can pick up so much stuff for next to nothing and sometimes it just needs a bit of imagination to give it a new lease of life.
I'd say that the kitchen stuff is best to buy new (although saying that, I still have a set of saucepans that were a hand me down, 6 years on!) as it's really nice to have your own fresh stuff for there. Maybe have one expensive item for the lounge, like a sofa, and source the rest from second hand sites. It also gives you something to look forward to and you can upgrade / replace items as you decorate the rooms.
I'd say that you'll need at least £1000 for essential items, more if you want a sofa, cos they're pricey! Hope that helps :) and share some pics once you have your home! xx
This is really helpful,thanks Emma.
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