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Bunnyish

Taking the next big step - ideas greatly needed!!

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Hi there

 

Bit of a general post but im really running out of ideas!!!

 

Me and my bf have been together now for nearly 3 years, we have decided that we would love to buy a house together...but.... slight problem of the hefty deposit we will need. He is a policeman and im a teacher, we earn good money but there never seems to be enough to live on aswel as saving for our own place.

 

I have got a ton of items on ebay, not worht anything really only the odd 99p's here and there, i work full time so cannot really take another job..

 

Has anyone got any really good saving tips or ideas how we could make a bita money to help towards our deposit and savings???

 

Any ideas would be really appreciated

 

:pray:

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Its worth looking in to 'vendor gifted deposits' which is a great little system, basically the vendor drops the price of the house and the reduction becomes your deposit or part of it

 

It needs a mortgage company to support it and careful explaination to a nice vendor but we did this and ended up on the housing ladder a few years earlier than we would have otherwise done :D

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My tip for saving:

 

1. Write down everything you spend - you'll get some shocks when you add it up at the end of the month :wink:

 

2. Set yourself a weekly budget for food etc, and have that in CASH, then leave all your cards locked away at home. Once you've spent your weeks money thats it.

 

3. Set up a standing order to leave your current account into an instant access savings account on pay day. If something happens and you need to access it you can. Then the day before pay day transfer any money you have left into it.

 

4. Be realistic but also challenging. You'd be surprised how quickly you can adapt to a lower income.

 

5. Have a goal date in mind, and put pictures of houses on your fridge (or somewhere else prominent to keep you focussed)

 

Its not easy to do, but it is achievable if you set your mind to it. I used to be a Financial Adviser and these tips used to help customers of mine :) In addition, I have followed them myself, I had rather hefty debts when I got divorced from my first husband, and this helped me pay them off in 2 years instead of 8. Also, my now husband had some nasty credit card debts when we got together, and using this approach he had them all paid off in a year. :D

 

Good luck :P

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Hi Bunny

 

I would recommend you go over to MoneySavingExpert.Com and take a look, especially at the Forums as thy are full of ideas and inspirations. Here's a link to the Forum home page, http://forums.moneysavingexpert.com/

 

If you already have credit card debts, then I'd start with the "debt free wannabee" board. It's insprational to see what sort of debts people started with, how much they cleared, and how they did it.

 

If you're looking at how to spend less generally, then the OldStyle board is a good place to go http://forums.moneysavingexpert.com/forumdisplay.html?f=33 and they also have a "Daily" thread which is (usually) very friendly. (I don't mean the Daily Fly Lady thread, that's also very friendly but is about ways of making housework easier).

 

The other boards are specific to particular types of moneysaving, so there may be something to suit you there as well.

 

Good luck!

By the way, how fab that you have female ginger cat, quite rare you know! "Thomasina" is a great name, you didn't by any chance get it from Alice's Diary did you?

 

Hazel

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I totally agree with Space Chick's advice to write everyting you spend down, knowing where it all goes is the best way to figure out how to hang onto it instead!

There are typically loads of bits of expenditure that you can avoid or reduce. For example:

If you're renting now, then can you move somewhere cheaper, both lower rental and lower bills will matter, so could you live somewhere smaller?

How do you get to work? Is it feasible to go a cheaper way - cycle or something?

What about lunch?

And what do you buy in your weekly shop: is it cheaper to bulk-buy? Change brands? Stop buying something altogether?

Utility bills: what can you cut out or limit? Can you do without tumble-drying?

You will get there, it's a question of sticking with it.

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As above, also consider where you have to live. My OH is in the Met so we had to be quite close to a train station (Which he qualifies for the free travel on). We wanted Chelmsford but could only afford 30mins+ away from the station so We got a house 20 mins further along the train line (away from expensive London) in Colchester with only a 10min walk to station. Houses are much cheaper the further out you go.

 

Could you do some private tutoring in the school holidays?

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thanks for all the advice have been noting down what i spend etc...

 

we both still live at home with our parents so no worries really about paying out rent, as for getting to work is a 15mile round trip, i have a very eco freindly and very effient car so petrol is costing me like £30 every 3/4 weeks which works out cheaper than getting buses (i live london borough), we dont have any debt or credit cards, i only really pay out £30 a month for my phone, £60 for the gym, my teaching fees £33 yearly, cat insurance £6, tax and insurance paid on the car for the year already, i take own packed lunch into work etc trying to cut costs, im not a big spender clothes wise i stick to my favourite primark so not like blowing the bank on clothes etc...

 

we are both only just 25 (24th nov and 24th jan), but there never seems to be any money left at the end of the month!! he was very silly and at 17 before we got together we took a £20,000 loan out to buy a stupid sports car and curretnly chucks £500 a month at the loan which luckily ends this march... as soon as we are free of that only debt then thats an extra 500 a month

 

how the hell can i raise atleast £10,000 to put towards any kind of deposit lol

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thanks for all the advice have been noting down what i spend etc...

 

we both still live at home with our parents so no worries really about paying out rent, as for getting to work is a 15mile round trip, i have a very eco freindly and very effient car so petrol is costing me like £30 every 3/4 weeks which works out cheaper than getting buses (i live london borough), we dont have any debt or credit cards, i only really pay out £30 a month for my phone, £60 for the gym, my teaching fees £33 yearly, cat insurance £6, tax and insurance paid on the car for the year already, i take own packed lunch into work etc trying to cut costs, im not a big spender clothes wise i stick to my favourite primark so not like blowing the bank on clothes etc...

 

we are both only just 25 (24th nov and 24th jan), but there never seems to be any money left at the end of the month!! he was very silly and at 17 before we got together we took a £20,000 loan out to buy a stupid sports car and curretnly chucks £500 a month at the loan which luckily ends this march... as soon as we are free of that only debt then thats an extra 500 a month

 

how the hell can i raise atleast £10,000 to put towards any kind of deposit lol

 

 

 

If you are a teacher (so can only guess, but earning a reasonable amount), you imply you don't pay rent or any other house hold bills, have no dependants, and the only cost you have is running a very cheap car, phone and gym - you should be able to save loads! (If I have this wrong - apologies!)

 

You need to write down every penny you spend - not just the big stuff. You won't find £10k overnight, but I'd be surprised if between you you couldn't do it in under 12 months - especially with the extra £500 from the loan to stop paying - thats £6k already!

 

If you can't work this out now, then you will struggle when you do have a mortgage and all the other household bills.

 

Re-examine every penny you spend - you will be amazed how much is frittered away on absolute nothing - a chocolate bar, a magazine, a night out or whatever it is. It is scary when you start really assessing it!

 

But good luck! It is worth some pain for the long term gain - many of us have been there!! :D

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I agree: £10k seems like an unsurmoiuntable mountain of money to find, but you can and will do it if you want to enough to do without some things.

And genuinely, it's incredible how much "little treats" come to.

The other thing, and this sounds harsh, is that with no dependents and a stable job, no rent to pay, etc, you probably have more disposable income now than you will in say 10 years time.

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Hi! myself and my OH bought our house when we were 24 and on low paid jobs! we were lucky in the fact that we got a 100% mortgage but now we are at the end of the rate we are stuck!! Anyway, when we were living at home we never had any money left at the end of the month but we bought the house on the same money and paid out at least 1200 each month on mortgage and bills etc!! i think we were then only bringing home about 27k between us! i dont know how we managed it at all but we did!! Somehow you just find the money from somewhere!!

 

the easiest way as said above is to decide how much you need to put away to get your 10k in the timescale you want, then the left over take out in cash and spend it. Its surprising how you dont spend money as easily when you have to hand over the money!! start in March when the loan is gone, thas £500 you dont have now so that £500 can go straight into a savings account, try and top this up with an extra £250 each a month and in 10 months you will have your 10k!! dont forget about possible stamp duty and sols fees etc as well though so it might be worth saving more than the 10k to cover everything.....

 

Dont feel lke you have to rush into things! i wish we had stayed at home longer and saved more, then we wouldnt be in the position we are now! we bought in a cheaper location just to buy our 'own' house and due to a mixture of reasons, hate it here. we are now selling the house, will just about get back what we paid for it, and are moving back with family for a year to save a deposit!! back to square one!!

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If you are a teacher (so can only guess, but earning a reasonable amount), you imply you don't pay rent or any other house hold bills, have no dependants, and the only cost you have is running a very cheap car, phone and gym - you should be able to save loads! (If I have this wrong - apologies!)

 

You need to write down every penny you spend - not just the big stuff. You won't find £10k overnight, but I'd be surprised if between you you couldn't do it in under 12 months - especially with the extra £500 from the loan to stop paying - thats £6k already!

 

If you can't work this out now, then you will struggle when you do have a mortgage and all the other household bills.

 

Re-examine every penny you spend - you will be amazed how much is frittered away on absolute nothing - a chocolate bar, a magazine, a night out or whatever it is. It is scary when you start really assessing it!

 

But good luck! It is worth some pain for the long term gain - many of us have been there!! :D

 

I agree with C&T, if you are both earning what I think you are (£18 - £20k pa) then you should actually both be in a position to save over £10K per year, especially living with parents. I run my home and a car on just over £6k a year at present, although I no longer have a mortgage (thanks to extreme saving habit :wink: ) and will tighten that if I need to save extra for something.

 

I also think you are rather optimistic in thinking that £10k will be enough. You should have a lot more than that saved in order to actually set up home, it can be a big expense. You also have to think about repairs and improvements etc.

 

Maybe you could do a bit of investigating regarding council tax and average water bills and energy bills in the type of property you want in the area you would like to be, just to get an idea of household costs?

 

You have been given lots of very good advice on here already.

 

Good luck!

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Good advice so far. Maybe you should work out how much the mortgae repayment and running costs of your new home are likely to be and start bunging that into a savings account. You are going to need to get used to much bigger outgoings than you are used to - and I think you will find that your savings will quickly add up if you do that. Good luck!

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Good advice so far. Maybe you should work out how much the mortgae repayment and running costs of your new home are likely to be and start bunging that into a savings account. You are going to need to get used to much bigger outgoings than you are used to - and I think you will find that your savings will quickly add up if you do that. Good luck!

 

I think that's a brilliant idea! Now, why didn't I think of that..... :think:

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