Times have changed and so have the banks. This was almost expected because people were allowed to borrow far too much money and it was inevitable the bubble would finally burst. Try walking into a bank now as a young person looking for a mortgage and it’s a lot harder than it would have been ten years ago. If you’re one of these young people I know you don’t like hearing about it because there is nothing you can do now, so what should be your plan of action?
People don’t care enough about saving money for a rainy day. Everyone is told that something bad might happen or that you will need a big chunk of money fast, but nobody cares. Then you walk into your bank and they ask for a large deposit and suddenly your jaw drops and hits the desk. This is how they do things now and you better get used to it. Let’s look at some of the best ways you can save up for that house deposit so you’re not renting for the rest of your life.
Move back home
This might be a real kick in the teeth for you, but why don’t you think about moving back in with your mom and dad until you get enough money together? When you are staying there you will have a good chance to save a decent amount of money and it wouldn’t be too long until you officially had your own place. If you have a girlfriend or boyfriend it might be possible to move into their parents’ house instead. You just need anything to stop you paying out most of your wages in rent.
You can learn to be a wizard in the kitchen and it will allow you to save lots of money on grocery bills. If you plan your meals carefully you will save a lot of money and you might be quite shocked by how much you spent on food in the past. This obviously means you will need to cook your lunch every day, so you don’t get anything from the shops. Curries, stews, and pasta dishes are all meals you can make huge pots of for cheap and you can freeze the rest for later if you don’t finish it.
Sell your car
Would you rather have a home to call your own, or would you rather have a car that will eventually get old and be worth little money? If you would prefer your own home then think about getting rid of your car because at the end of the day you have a nice pair of legs. You can walk to the bus stop and travel to work by public transport like so many other people. There is no shame in that, but if you can’t bring yourself to do it then at least downgrade your car to a banger.
Give up holidays
When a holiday comes around everyone is desperate to go and do something that involves spending money. That could be abroad, across the other side of the country, or even in-state and it doesn’t make a difference which one applies to you. Money will still be spent and it might add up to thousands of dollars. For the next few years you should accept the fact that the only enjoyment you’re going to get will be lying on a chair in the back garden.
Carry less money with you
Have you ever tried to buy something but couldn’t because you didn’t have your wallet with you? This should be the way you try and do things from now on because you can’t spend money if you don’t have it. All of those little things you buy during the day don’t seem like they cost much, but when you add them all up at the end of the month it comes to hundreds of dollars. If you are worried about what will happen in an emergency then take a credit card, but only use it for an emergency.
This guest post is contributed by Hugh Tyzack. He is a financial consultant and gives sound money saving advice on his blogs. He can help with income drawdown.