What most people don’t do to cut costs and save for a deposit.
The housing market today is a challenging one. Despite interest rates being relatively low, average house prices are high when compared to average incomes. The disparity makes it difficult for would-be homeowners to save for a deposit. Difficult but not impossible, especially if you manage your money wisely and cut non-essential costs. But, where do you start? Start by doing what most people don’t do.
Most people don’t do budget planning.
Many budget planners are available online that you can use to record everything that comes in and goes out of your account. This helps you see where your money is going as the spending is divided up into sections. A budget planner helps make clear the costs that must be met and where savings can be made.
Most people don’t shop around.
Research has shown that most people don’t make the effort to shop around. This is perhaps because it can be time-consuming and the process of switching from one provider to another can be a hassle. However, the time you invest can pay dividends by saving you substantial amounts of money that you can put to better use elsewhere.
Money can be saved by switching:
- energy suppliers
- phone suppliers
- comparing what other utility companies have to offer
Shopping around has benefits when looking to save on car, house and contents insurance etc. Asking for a better deal from your current service provider if you are a loyal customer can also help you make savings.
Shopping around can have significant compensations when looking for your first mortgage or a remortgage deal. Most people stick with what they know, which means they could miss out on deals that suit them better and save them substantial amounts of money. Most people don’t know where to start looking at the mortgage market is awash with choices.
To solve that problem, speak to one of our experts here at Deal Direct on 0800 048 8828.
Most people don’t stick to their shopping list.
Again, research has shown that it’s better to take a list when you go to the supermarket as it helps you to buy only what you need. Even with a list though, some people can be swayed by the lure of offers. Beware as they are not always what they seem. As supermarkets carry unit prices now, always look at these to check the real value of the deal.
Most people don’t take the time to understand the true value of a deal.
Depending on what you’re buying, the item may be subject to an introductory offer. A magazine subscription, for example, may cost 99p for the first edition and £4.95 thereafter or, at the other end of the purchasing scale, mortgage rates could be less than average for the first 2 years and then revert to the lender’s SVR.
Working out your overall costs is essential to understanding whether a deal is worth having or not. It can also put an end to impulse buys and cluttering up your home with unwanted, unused or wasted items.
Investing time and effort and asking for help from experts and/or a professionally accredited organisation is doing what most people don’t do.
Consulting with us here at Deal Direct can help you along your way to saving your deposit to own your first home. It could also help to cut costs and make the most of your money with the home you already have.