More than 101 Tips to Save a Deposit for a House

Last updated: August 2009

Whether its making money or saving money, these tips will get you on the road to saving a deposit for your first house.

1. Get a job - most people earn most of their money from working. If you don't have a job, I honestly do not know why you are reading this article.
2. Get another job - if your main job is 9am to 5pm, consider getting a Saturday job. Consider getting an extra job even if it only earns £20 a week. In that case, after 10 weeks you will have contributed £200 to your deposit.
3. Get a promotion or move job. Are you happy at work? Raise your aspirations rather than settle with what you have. It can mean more money and a refreshing change.
4. Start a business - Not content with another boss? Then working for yourself could be the right option for you.
5. Plan a budget - set a limit for spending on food, having fun each week etc.
6. Set yourself targets. How much of your deposit will be raised next month? In 6 months? Next year?
7. Change your bank if they are charging you to access your own money.
8. Get an ISA. This allows you to save money (tax-free) while earning a high amount of interest. Your money will be working for you. You can now put up to £3,600 per year in a Cash ISA and the same amount into a Stocks and Shares ISA.
9. Put left over money in a savings account. If you still have money to spare, put it into a savings account. Anything is better than having lots of money doing nothing in a low interest current account.
10. Sell on eBay. Many people have things of value lying around that they never use. If you don't need it or like it, or use it, sell it.
11. Buy on eBay. Saving money when you buy is just as good as making money. There are loads of great deals to be had on auction websites - especially if you search locally for goods that are pick-up only.
12. Get stuff from Freecycle. Some people give stuff away that they no longer need.
13. Save on petrol. If you drive a car, you can save petrol by accelerating smoothly and avoiding sudden braking. You can also save petrol by coasting to a stop as you approach traffic lights. Oh, and stick to the speed limit.
14. You can save even more petrol by walking! If the local shops are only down the road, don't use a car. If the shops are a mile away, use a bicycle instead.
15. Car Share - going past a colleague's house on your way to work? Pick them up and ask for petrol money - £5 per week.
16. Get a smaller car. If you are someone that spends most of their time driving around on their own, or with one other person, you do not need a big car. Bigger cars use more petrol, they are more difficult to park and they usually have bigger engines, which means that tax and insurance is more.
17. Wash your car by hand, don't use a car wash.
18. Stay healthy - eat the right foods and get exercise. Being ill can be expensive… consider prescription charges, days off work etc.
19. Take care of your teeth. Dental treatment can be expensive.
20. Check if you are paying the right amount of tax - Many people overpay tax. This usually occurs when you leave a job and are out of work for a period.
21. Claim benefits. Make sure you claim child benefit, or working tax credit, if you are entitled to it.
22. Find out where your money is going. By using our budget calculator, you can see that your subscription to the Widgets World Weekly magazine is costing you £10 per month even though it goes straight in the bin because you never have the time to read it.
23. Become a mystery shopper - you don't need any training, just sign up to a website like Retail Eyes and start taking on assignments. £10 + a free meal anyone?
24. Complete online surveys. Survey websites like Valued Opinions give you between 50p and £5 for completing an online survey.
25. Refer someone to something. Okay, a bit vague but most companies nowadays have a referral program where they will give you money if you send them extra business.
26. Get a credit card that gives you cash back every time you use it.
27. Don't pay interest on credit cards - pay it off in full every month.
28. If you have to pay interest, make sure you are paying the lowest rate. If not, switch to a different card. But remember, you only need one card.
29. Ask your credit card provider to set a low limit. This not only helps you to control your spending but it also reduces the amount of trouble you will get in to if your identity or card is stolen.
30. Spend cash, not credit. That way you can see the money you are giving away!
31. Get loyalty cards like the Tesco clubcard. As long as you don't mind your shopping habits being monitored you can earn cash back and get money-off coupons.
32. Pay off any loans as quickly as you can. The longer you have a loan, the more interest you pay on it.
33. Shop around for everything. There are many comparison websites, especially for insurance. Just be careful because some of them are not completely honest and accurate.
34. Loyalty doesn't save money. So shop around every year for better car insurance deals.
35. Avoid branded food and drinks. When was the last time you tried a supermarket own brand? They can be much cheaper than branded products and they are often just as nutritional.
36. Grow your own herbs.
37. Eat in, not out. You pay double for eating the same thing at a restaurant.
38. Cut back on alcohol - drink something non-alcoholic and you will save money and your health. Alcoholic drinks are taxed heavily.
39. Don't smoke. For the same reasons as above, only more!
40. Drink water - extremely cheap when from the tap!
41. Email people instead of sending text messages - emails are free and can be as long as you like so why pay 10p per text message when you can only send a few words.
42. Alternatively, use an instant messaging program to chat to people over the Internet. Or you can get an Internet phone that uses VOIP (Voice Over IP).
43. Avoid branded clothes and accessories - is that designer handbag really worth £500 when you can get one that looks the same for £10?
44. Take a shopping list with you when you go shopping then stick to it. Clever advertising can sell you things that you did not originally intend to buy.
45. Beg for money. Not on the street (although if you can be a busker, you might consider it) but from your family. They might be willing to give you money, or at least lend you money without charging interest.
46. DIY - Do it yourself. If something is broken, try fixing it before buying a replacement or paying someone else to fix it for you.
47. Win the lottery. Actually, the probability of winning is so low that you might as well be throwing your money away. So unless you are a very lucky person, give it up - it's a form of gambling.
48. Change your search area. Search for a property elsewhere because prices may be cheaper. This means that your deposit does not need to be as much.
49. Shop around for a mortgage lender. There might be a deal that means you do not need a huge deposit. If you are a key worker, some mortgage lenders have special rates.
50. If possible, use public transport or park and ride, which save you the cost of parking in built-up areas.
51. Find out if you can get any grants from your local authority (generally applies to key workers).
52. Buy in bulk. Most cereals keep for a long time and they cost less per 100g if you buy the largest packet. Buying in bulk also saves you extra unnecessary shopping trips.
53. If you have a partner, get each other's hair instead of going to the hair dresser.
54. Turn off any appliances on standby.
55. Turn off every part of your computer when it is not in use.
56. Use energy efficient light bulbs.
57. Only boil the amount of water that you need.
58. Take short showers instead of a bath.
59. Install a water meter.
60. Take a plumbing course and fix your own water works.
61. Generate your own electricity. After a while, it should pay for itself.
62. Don't use the full load programme on your washing machine unless you are washing a full load.
63. Hang your washing up to dry instead of using a tumble dryer.
64. Only use your dish washer when it is full.
65. Do not leave the tap running while cleaning your teeth.
66. Insulating your loft can save you over £200 per year.
67. Turn down your thermostat and wear jumpers in the Winter.
68. Turn off your heating when you leave for work and the house is empty - you should be able to set this up automatically.
69. Close curtains to keep the heat in as it gets dark.
70. Fix leaking taps.
71. Turn off lights when they are not being used.
72. Borrow books from a library instead of buying them.
73. Shop in sales to find a bargain.
74. If you go to the cinema, don't buy popcorn.
75. Negotiate. There are many situations where you can haggle down the price of something, especially abroad, or in a family-run shop.
76. Be persistent. How much do you want a house? If you want it that much then change your lifestyle. If you don't want it that much, you will have to wait a bit longer to save what you need.
77. Send an e-card instead of a real card.
78. Give someone a gift of your time, instead of an object.
79. Give up your gym membership. Exercise outdoors or where you currently live.
80. Get money-wise. Sign up to a website that offers free, independent financial advice such as Motley Fool, or Money Facts.
81. Stay with your partner. They are a source of money! If you are married, do not get divorced as this is expensive.
82. Take lunch to work.
83. Live with a friend so that your expenses are halved.
84. Watch Freeview instead of paying a satellite TV subscription.
85. Be a part-time student. If you can overcome the initial costs of fees with a bursary or scholarship, then students can enjoy a range of discounts everywhere they go.
86. Ditch unnecessary insurance i.e. life insurance or annual travel insurance.
87. Say no to kids that want everything.
88. Pay annually instead of monthly. Most insurance companies and subscription services charge more if you choose to pay monthly.
89. Cook your own food using a recipe book instead of buying ready meals.
90. Vegetarian food is generally cheaper than food that contains meat.
91. Don't get extended warranties unless you are buying something that's expensive and likely to go wrong.
92. Don't get conned. Businesses are out to make money so check your receipts and bank statements carefully. They may be charging you for something without you knowing.
93. If someone asks, what do you want for your birthday? Or what do you want for Christmas? Say gift vouchers.
94. Buy wine by the bottle and not by the glass. It is better value and you can share.
95. Don't shop if you are hungry, thirsty, tired or stressed.
96. If you buy a new computer. You can download Open Office, which is like Microsoft Office, but it's free.
97. Many online shops have discount codes that can be found on The Internet if you search for them. You can find anything from free delivery to 10% off.
98. Hire out an expensive bit of kit. This is assuming that you own an expensive bit of kit in the first place.
99. Clean your own windows.
100. Download individual music tracks instead of buying albums.
101. Subscribe to our newsletter to get our complete first time buyers guide and the latest housing market updates.
102. Join Quidco - I have earned £££'s cashback on everything from car insurance to clothing just by visiting the Quidco website before buying online from a business that I would have bought from anyway. If you ever shop online, it pays to join Quidco.

Article by Tim Ballard.
April 2008 - last updated August 2009

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User Comments

Tim from Suffolk said...

Go on, be the first to add a comment!

Sunday, April 23th 2008 08:01 PM

juliawaq from united kingdom said...

hi i am julia... i like this deposit tips... i require some money for buying home...acne treatment i read these tips ... its amazing............

Tuesday, February 23rd 2010 11:09 AM

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