Something a little different on the blog today! When I look into my blog and instagram demographics the majority of my followers are between the ages of 25-34; so I felt that this type of subject would be very relevant and of interest to my audience.
As the title suggests, I am beginning the journey into being a homeowner. I know lots of people reading this will already be homeowners, or in the middle of saving; some of you as well won't be fussed about owning a home; its a matter of your situation and desires.
Having worked and lived in London for the beginning of my twenties, this just wasn't a possibility for me before. I was paying £650 a month to rent a tiny box room in a house share and the rest of my earnings were spent on travel, food and the odd night out. I had nothing to save by the end of the month, and actually the last week of the month I found myself going into survival mode; living to my basic needs. No job, for me; was worth this style of living.
I wanted to create a more stable life for myself. This word 'Stable' means something different to everyone, but for me it definitely meant buying my own property; somewhere I can call home forever. Somewhere I own and can make my own.
So yes, after moving back home with the parents and switching up my jobs; I am now in a healthy position to begin working towards that goal and so I thought it would be amazing to share my journey with you guys who also want to buy a property or who are already doing so.
In this first post I am just going to share how I plan on saving! A few ideas I have for organising my finances and also my expectations; but of course I will be giving updates over the year on whether those expectations are realistic and how I am finding the process.
So first, what am I doing to prepare to save?
For me the most important first step to saving is creating separate bank accounts for different uses.
I have four which I will be using. Yes I know four sounds a bit crazy but bare with! I have a Help To Buy ISA, two savings accounts and a current account; and these are going to help me manage my savings.
I think we all know what a Help To Buy ISA is, and it is definitely a great opportunity for any first time buyer. Every month I am putting away £200 into this account; this is done through a direct debit every month. Simple!
My first savings account is going to be my 'Responsible Account' for things that I HAVE to pay; my responsibilities. (Yawn) The costs that fall into this category would be my car expenses, phone bill, gym membership and spotify account etc. I have figured out how much I need for these expenses over the year and will save for this first! I am ensuring that these expenses are put away in this savings account ready for when payment is due. Responsibilities you have already are priority, so before I put anything away for a property I need to make sure these are covered.
My Current Account is going to be the account I use on a daily basis to live from. The money I budget to be left in this account will cover my leisure, you know, the necessary nights out haha, meals, and if I can then travel as well. I will also budget for my blog in this account and use money for clothes, photographers and travel into London etc.
My second savings account will be the 'Property Account'. This is the money that I put away for good to go into my house savings. The money I budget to save will be put into this account with the intentions of it staying there for good!
I don't know if this sounds complicated but it makes total sense to me; and I guess its all about finding what works for you!
The second thing I am implementing is to take action on payday. On payday my £200 will leave to go into my ISA automatically before I get to see it. Great! Then I will transfer money into my Property Account and whatever is left will be for leisure and my blog. Getting organised the day of income will help to manage my finances efficiently throughout the month.
On Pay Day I am also going to get my leisure money out in cash to help me be less spendy; having tangible money is a great way of visually managing your budget; we all know how easy it is to tap your card for that cheeky coffee.
I have realised that a strong motivator for me is having that visual element. I already have a couple of goals pinned up where I can see them every day and it really does work for me. So every month I am going to pin up how much I have in my House Savings as a trophy all most for my hard work; I will also add the figure of how much is left to go; the buzz of seeing my savings go up every month and the amount left to save go down, I hope will be motivating!
I'd Love Your Advice!
Anyways those are the first steps I am using to get saving this year, but I really hope that you guys can give me some tips that you find useful! Let me know things I should prepare for or things you would like me to report in my next post on this topic! When I get into the swing of what amounts work for me to save into each account, I will give you the reality of what I can save every month in comparison to my income.
Thanks for reading!