A new online tool developed by Thomas Sanderson (opens in new tab) can help you save for a house deposit by pointing out just how much money you are spending on unnecessary (if pleasurable) things like takeaway meals and alcoholic drinks. The tool will tell you how long it will currently take you to save for that deposit, and then it will also tell you how long it would take if you were to change your habits.
Saving up for a deposit is the most difficult part of getting on the property ladder for many, with the time it takes to save up for a typical 20 per cent deposit averaging eight to 10 years. The financial challenge can seem insurmountable, so much so that scrimping and saving doesn't seem worth it given the large sum required. And yet, according to the 'Ditch the Rich' tool, users who currently save £200 a month but buy five coffees, four alcoholic drinks and one takeaway a week, don’t smoke and spend £50 a week on leisure and entertainment could reduce their time spent saving for a £20,000 deposit from eight years and four months to just two years and 10 months.
Richard Petrie, marketing director for Thomas Sanderson says, 'Saving for anything can be a hard task, and in this current climate it may feel like you’ll be saving forever to make up your deposit. With this tool you can easily see what you can cut back on in order to save more efficiently, and how much faster you can reach your target by making these cuts.'
We'll probably keep our trip to the cinema and weekly takeaway, thanks, but the five-a-week coffees and alcoholic drinks are definitely something to reconsider.