Saving up to buy your first home is exciting but, given how much you may need for a deposit, it can also be challenging.
Here are some tips to build your savings quickly.
Look at your spending
Analysing your spending habits can help you manage your money. You’ll be able to see if you’re overpaying for anything, and ways you could potentially cut back on your spending.
Creating a budget can help you set yourself spending limits and determine how much you have spare to save each month. If you’re an HSBC UK customer, you can use tools like the Balance After Bills feature on our mobile banking app. This feature shows you how much you could have left in your account once scheduled Direct Debits and standing orders have been paid.
Open a separate savings account
Opening a savings account specifically for your home deposit can help you keep it separate from your everyday spending account and other savings accounts.
The best type of savings account for you will depend on:
- how much you need to save
- how often you plan on adding money to your savings
- when you need to have the money saved by
See how some of the different types of savings accounts work.
Set yourself a savings goal
Finding out how much could borrow on a mortgage can help give you an indication of the type of property you could afford. It may also help you work out how much you would need to save for a home deposit. You could then use this to help you set a goal to work towards.
Explore: How to set and achieve savings goals
Do some freelance work
If you have a skill to share, why not see if you can increase your income by doing a bit of freelance work? You may need to check this is okay with your current employer and look into paying tax, but it can be a useful way to earn some extra cash.
Reduce the amount of rent you pay
It won't always be possible, but downsizing your property is a quick way to cut the cost of rent and increase how much you can save. You can then put the money you would have spent on rent aside for your deposit. You may also be able to reduce the cost of your energy bills if you’re able to move into a smaller property.
For more ways to save, view our everyday spending hacks.